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Some time ago I visited Isetan, an upscale department store in Shanghai, and saw small boards near the doors of many garment shops. The black-and-white boards gave the brand names and places where the garments were made. Basic though the information may seem, it could go a long way in helping China’s consumers and its fashion industry both.

It’s an open secret among industry insiders that less than 20 percent of the foreign-sounding brands sold in many department stores are really foreign. Broadly speaking, stores in China have four types of “foreign” brand garments: authentic foreign brands, foreign brands licensed to Chinese firms, brands registered by Chinese firms abroad but operating solely in China, and thoroughbred Chinese brands that sound foreign.

Though this applies to all segments of garments, men’s wear is the best example of the rules of the retail market game. That’s because men’s wear is more about quality, and less about design (which varies little), and it’s difficult to sell them at a higher price without giving them Western names, Italian- and French-sounding ones being the most popular.

The garments industry’s value chain has extended. Zhejiang and Jiangsu provinces, for example, have seen the mushrooming of agencies and consultancies specializing in so-called brand operation. This specialization is nothing but getting overseas registration for Chinese firms that design, make and sell their products exclusively in China. And since there is no systematic flow of information, consumers literally pay a much higher price for what they buy - especially because they take them to be high-end products.

The problem is not plaguing the garments industry alone. The bedding and furniture sectors, just to name two others, also suffer from it because of customers’ brand fetish. Chinese are attracted to foreign-sounding brands because generally, they think foreign-branded clothes and other products are more stylish, of higher quality and, more importantly, represent higher status.

Many studies show consumers in fast developing economies will be drawn to foreign products in the initial stages of development. Since China is slowly entering its next stage of development, we have begun seeing some domestic fashion brands proudly assert their Chinese roots. Such products cater to more culture-conscious consumers. Foreign goods and brands, however, are still mesmerizing for most Chinese.

That is not to say businessmen and traders have the right to disrespect the sanctity of a brand. It would violate consumers’ rights, especially their right to know about and choose from the available products, and hurt the relationship between sellers and buyers.

Many established Western fashion brands have outsourced production in China, demonstrating the high quality of Chinese manufacturers. China’s designing industry may still be behind the West, but it has improved by leaps and bounds in recent years. Quite a few Chinese fashion designers, in fact, have won international acclaim, with some even sharing a slice of the market.

Ironically, the fact that domestic brands with foreign-sounding names sell more could mean designing is a much smaller problem for Chinese clothes’ brands. Instead, what has been lacking is brand power and confidence. The paradox is that the more the Chinese brands promote themselves as foreign ones, the more they would be pushing the country’s fashion industry backward.

Consumers are maturing, and in all likelihood domestic brands pretending to be foreign have to reposition themselves and overhaul their marketing strategy. That would make the investments already done on these heads a waste. Even their “brand power” will suffer.

The malpractices in the garment industry could be a mirror of the outdated business view: Sell in whatever way you can because that’s what counts the most. Such a strategy will usually lead companies to a dead end. The country’s legal environment has improved greatly and will continue to get better. The Internet will empower consumers further, shedding light on darker corners. New generations of consumers will be more literate, worldly and fashion savvy.

So in order not to be left behind by the shifting sands of the garments and fashion industry, pretentious brands should start correcting their ways by acknowledging the origin of their products, and creating a solid and sustainable stage for operations.

The earliest color photographers ventured far and wide.
When French brothers Auguste and Louis Lumière, already famous for France’s first motion-picture camera, unveiled their “autochrome” in 1907 Paris, they believed it was their most exciting invention to date. Yet, could they have imagined that their creation, the first portable camera to produce true-color photographs, would inspire a massive 22-year, privately funded project to promote world peace?

That’s exactly what it did. Hopelessly naïve? Batty? Maybe today, but in fin de siècle Paris, where anti-Semitism in the wake of the Dreyfus Affair festered, there was a palpable urgency in some progressive circles to squash ethnic hatred and intolerance. Jewish banker and philanthropist Albert Kahn was one of these progressive intellectuals, and, as David Okuefuna documents in The Dawn of the Color Photograph: Albert Kahn’s Archives of the Planet, he would use the Lumières’ new invention not only in an attempt to smooth over ethnic tensions in France, but to promote worldwide pacifism. If people from one culture could see how other cultures lived, he figured, they would gain a greater understanding and tolerance.

Alas, neither Kahn nor the color photograph could put an end to the evils of the world. (Indeed, his photographers would capture some horrific events: the first and second Balkan wars, the brutality of French colonialist forces in Vietnam and Cambodia and, of course, World War I in France and Germany.) But Kahn’s massive undertaking, called “Archives of the Planet,” did produce the most important–and eerily beautiful–collection of early color photographs in the world: 72,000 autochromes, as well as 4,000 black-and-white photos and 120 hours of documentary film.

Kahn was born in 1860 in a town called Marmoutier in Alsace in eastern France–an area occupied by Prussia when Kahn was 11. Fleeing his newly German home at the age of 16, Kahn arrived in Paris, where he would become a banker and amass a large fortune, which he used for philanthropic purposes.

He set up a successful scholarship program that awarded grants to young academics to study in other countries, and when he heard of the autochrome, he saw a more far-reaching means of promoting peaceful international relations. The idea for “Archives of the Planet” likely grew from a trip he took with his chauffeur and traveling companion Alfred Dutertre through the U.S., Canada, Japan and China in 1908. Kahn brought his first autochrome camera, and had Dutertre photograph the sights and people in these foreign lands. When they arrived home in France, Kahn recruited professional photographers, supplied them with trunks of autochromes and film cans, and sent them off to photograph the world.

The photographs, hundreds of which are compiled in the new book, are breathtaking. The autochrome achieved its color through a single glass plate smeared with millions of grains of potato starch, which were dyed red, green or violet and thus acted as tiny color filters. When the plate was exposed, light entering though the lens passed through the grains on to a layer of photographic emulsion; the result was a full-color image. Some of the colors appear muted–the autochrome is not fond of yellow, for instance–but the reds–in an Irish country girl’s crimson coat, say, or a ruby pool of blood on the floor of a dark town hall in Germany — are so vibrant they practically pop.

The potato starch gives the photographs a grainy, almost pixilated, quality, creating a romantic, old-world feel: fitting since many capture cultures on the brink of extinction through globalization or colonialism–something Kahn was quite concerned about. Part of his intention, writes Okuefuna, was “to record the vital, distinctive aspects of the world’s vulnerable cultures.” Swedish women in their bright red and royal purple embroidered outfits posing in front of a pine forest; exiles from Salonika, Greece, seeking a place of refuge in the desert and wearing flowing dhoti pants with red sashes tied at the waist; a Mongolian princess, her black pigtailed braids adorned in ribbons and jewels; a Vietnamese woman in a pink silk robe lounging in an opium dream.

Though Okuefuna, who executive-produced the companion BBC documentary, maintains in his introduction that The Dawn of the Color Photograph is primarily a picture book, in typical British fashion he sells himself and this extraordinary volume short. Each photograph is accompanied by observant notes putting the image in cultural and historical context, each section–divided by region–is bolstered with histories, journal entries and a secondary travel narrative: Dutertre getting his camera equipment confiscated in China, or Japanese shopkeepers insisting the dirty American tourists–Dutertre and his ilk–cover their shoes in “over-slippers” before entering their pristine stores.

The project began to lose speed with the 1929 stock market crash on Wall Street, which reverberated throughout the Western world and took away Kahn’s fortune. Somehow, he continued funding photographic missions into the ’30s, though his photographers, save for one trip in 1930 to West Africa, would never travel beyond the Mediterranean again.

Kahn, ironically, would end his life while again under German rule, in occupied Paris during World War II. He escaped the fate of more than 75,000 French Jews who died in Nazi death camps, and he passed away in his sleep in November of 1940. “At 80,” writes Okuefuna, “the avowed pacifist had found peace at last.” More important, he left behind countless beautiful images of now-lost worlds to enthrall us and remind us where we came from.

Thinking of lingerie and intimate apparel may evoke images of bras that hardly keep ladies covered and barely-there underwear.

Donning modern-day lingerie means putting everything on display and showing off a woman’s shape in its most flattering way.

In ancient China, though, a curvy figure was considered a temptation and a sin, so women were left with few choices of outer clothes and were strictly governed by status. The underwear then became a unique channel for women to let out their romantic passion and over thousands of years, Chinese women developed various styles of underwear with amazing craftsmanship and ingenious designs.

To illustrate the use of old-time Chinese lingerie in today’s world, a fashion design competition calling for inspiration from ancient Chinese lingerie elements was held by the China Fashion Association and Ordifen International Group.

Chinese water paintings, minority embroidery, Chinese red phoenix and cloud patterns, ceramics and Hanfu (the traditional dress of the Han Chinese) inspired ideas from about 800 designers from China, the UK and Japan.

Xie Lili, a young student from Guangxi, was the panel’s unanimous choice for the gold prize with her original work Han Dynasty Beauty Feiyan. It celebrated the craftsmanship of the past alongside the natural form of the female and a perfect combination of blue gauze and flouncing with exquisite Miao handmade embroideries.

There were two runners-up. Fan Yuling adapted Hanfu elements like diagonal body-wrapping robes, diagonally crossing collars and hanging audit sleeves. Li Yingying’s work related to ancient Chinese “Dudou” styles and highlighted the unique dancing phoenix patterns in ancient China.

Third place went to Taiwan designer Cai Peiying, who was inspired by the antique jade suit sewn with gold thread, which represented the highest level of craftsmanship in the Han Dynasty.

Other bronze prizewinners were Zhang Shengying, for her ancient, full-body garment design; and Hu Renjie, who blended classic Chinaware patterns into modern lingerie.

Major League Baseball commissioner Bud Selig warned team general managers about the financial crisis as they formally began their annual meeting on Tuesday.

Some club executives say teams have delayed setting budgets for payroll because they want to determine whether the economic downturn will change revenue projections.

Selig spoke to the GMs by video conference for eight or nine minutes, according to Jimmie Lee Solomon, executive vice president of MLB operations in the commissioner’s office. Solomon said Selig began the session by discussing the state of MLB.

“He also talked about our economy and how troubling it’s been, and how we have to operate in a fashion that’s cognizant of that economy,” Solomon said. “Basically it was short and to the point.”

Solomon said the GMs also received an umpire report. After instant replay for certain home run calls began on August 28, seven calls were reviewed by umpires and two were overturned. While it was available, instant replay was not needed for any playoff games.

Unlike last year, the GMs did not all state their offseason goals. The idea, sed, the parents, too.”

GMs also heard a presentation on relations with Nippon Professional Baseball. Japanese clubs are unhappy 22-year-old pitcher Junichi Tazawa wants to bypass professional clubs in his own country and sign with a major league team.

“We’re sitting down with the various commissioner’s offices from the various countries and talking with them about our protocol agreements, but nothing definitive,” Solomon said.

Wearing a white tuxedo with an oversize head to match, he is down on bended knee in front of his girlfriend at the table next to the window. While this certainly isn’t an everyday scene, it just seemed to fit here among the grandeur at Yu Zhen Xuan restaurant in the Grand Hyatt.

One of the five star Shanghai Grand Hyatt’s dining concepts inside the 88 floor Jin Mao tower, Canton occupies the whole 55th floor, with dining areas and private rooms circling the building’s central elevators. Diners can enjoy upscale Cantonese cuisine in a sleek main dining room, accented by decorative room separators and dark stone flooring. The outlying dining area creates a cozier ambiance by employing a pastel palette with full carpeting and plump cushioned seats. Like the Hyatt’s other restaurants, the view is one of the best in the city, even on rainy days.

The menu never ventures into any pan-Chinese fare, staying Cantonese in nature and regularly displays the kitchen’s skill with exceptionally executed dishes.

Starters range from the familiar to the deliciously inventive. Chashao roast pork is moist and lightly sweet, truly a classic when done right. The skin on the roasted goose is perfectly crisp and the meat deeper in flavor than duck. A vegetarian “abalone” is slices of pressed tofu in the shape and texture of the eponymous shellfish and tastes amazingly like the braised version of the cherished mollusk.

Consommés are a true test of a cook’s skill (and patience) and Canton’s cooks are very able indeed. The cuttlefish egg and ginseng consomméis an oceanic revelation: with thin strips of starch coated shrimp sprinkled in, it tasted like a pure expression of the sea’s bounty- truly a soup to be savored.

Seafood delights continued with sautéed shrimp with crab roe laying on a bed of broccoli, both the roe and shrimp wonderfully light in flavor and tender in texture. Boneless filets of cod are coated in an airy, crispy batter and just barely coated in a sauce that is perfectly balanced in sweet and sour, with a healthy kick of heat from dots of chili pepper.

But seafood is not the only star on the menu. Cubes of beef tenderloin strike a balance of chew and tenderness and are quickly sautéed in a spicy XO sauce. House made noodles are thin golden colored strands with wonderfully responsive elasticity and are housed in a bowl of yet another great consomme.

Beverage options are broad, with a fairly expensive wine list (it is the Grand Hyatt after all), alongside a selection of vintages of Chinese rice wines. Tea is especially well done; each choice has a detailed explanation and is served in clear glass cups so as to observe tea leaves unfurl. I was pleased to see the Tieguanyin (Iron Goddess of Mercy) tea I ordered dropped on top of the hot water, allowing for the delicate leaves to release their initial aromas without harsh agitation from pouring, a custom tea aficionado swear by.

Desserts such as classic dotted hearts (egg custard in pastry shells) are also all made on premises, and even options that seem deceivingly simple arrive with a flourish. A seasonal fruit platter included a selection of crisp jujubes and dragonfruit, and came artfully arranged upon a bowl of dry ice that released a cloud like mist. A classic and elegant way to end the meal.

Canton truly aims to make all customers feel well taken care of, from businessmen to the casual hotel customer, for their dim sum or a la carte. The manager was always available for answering questions about presentation and technique, and service was very accommodating, switching dwindling courses onto smaller plates and replacing cutlery as the meal went on. With an elegant atmosphere, a high standard of Cantonese cuisine, and a top-of-the-world view, it wasn’t hard to see why Mr. Hello Kitty chose this restaurant to pop the question.

And as for his proposal- she said yes.

Foreign sales of Chinese textiles and garments grew at a single-digit pace in the first seven months, compared with the year-on-year growth rate of 24.4 percent for the same period last year, the General Administration of Customs said here on Tuesday.

Mounting production costs and weak demand abroad combined to account for the slowdown, industry observers said.

Between January and July, China exported 100.36 billion U.S. dollars worth of textiles and garments, up 7.67 percent, but well down from the 24.4 percent growth rate for the same period last year.

The total included 62.49 billion U.S. dollars worth of garments and accessories, up 3.4 percent, and 16.55 billion dollars worth of shoes, an increase of 14.2 percent. The growth rates were 19.6 percentage points and 4.3 percentages points lower, respectively, than the year-earlier level.

China recently increased the tax rebate to 13 percent for textile and clothing exports to bail out its more than 60,000 struggling smaller textile enterprises.

Zhang Bin, a Guojin Securities analyst, said the effects of the new tax rebate policy would likely take hold in October. It was expected to help reduce costs and increase the profit margins of textile and clothing exporters.

There was a time when Chinese boys wanted to be one of only three things when they grew up: a doctor, a lawyer or Yao Ming. Not any more.

“I want to be a car dealer,” says Xia Bohan, a Shanghai elementary school student who celebrated his eighth birthday on Saturday with several friends, a grey plastic “Batcycle” and more than 100 toy cars.

“I want to go to the Shanghai motor show to look inside the concept cars and see the new models you can’t see on the street. But my dad won’t take me.” When Bohan was 3 years old, his teachers used to call him “the car doctor”.

As precocious as he doubtless is, Bohan’s love affair with cars reflects a growing trend among Chinese consumers. After joining the World Trade Organization (WTO) in 2001, China has seen a phenomenal growth in its automotive industry.

As the country’s economy boomed so did its vast consumer base. It now enjoys more disposable income than ever before and a fast-changing lifestyle. There has also been rapid development in road infrastructure, with 2,000 km of new highways built every year.

And for many, a shiny set of four wheels is a sign of prestige. “Cars have become the ultimate status symbol here,” says Xia Bing, the boy’s father, who spent several years living in Tokyo. “It’s not like in Japan, where everyone has a car so no one cares about it.”

The car boom is putting pressure on China’s local environment, not to mention challenges for the authorities.

The Chinese government is currently attempting to pioneer the widespread use of eco-friendly electric cars amid fast-rising levels of pollution in cities like Beijing, Guangzhou and Shanghai.

At this month’s Shanghai Auto Show, the industry’s answer to the Opening Ceremony of the Olympics, foreign brands, such as Mini, Volkswagen, Porsche and Honda drew huge crowds. Fewer were drawn to their Chinese counterparts, Great Wall, Geely and Zhongxing.

“We still need time to catch up,” said a nervous Great Wall salesman, dwarfed by statuesque models wearing ball gowns and stick-on smiles.

Xia Bohan, 8, with his toy cars. The Shanghai kid says he wants to be a car dealer when he grows up. Zhou Wei

Chinese brands accounted for 30 percent of vehicle sales in China in the first quarter of 2009, according to the China Association of Automobile Manufacturing. Geely and local rival Chery saw their sales rise by an almost identical margin over the same period.

Although the rate of growth in China has slowed overall, it still overtook the US as the world’s biggest motor vehicle market for the third straight month, posting record local sales figures.

In contrast, key US players like General Motors are facing the very real threat of bankruptcy. Chrysler this week saved itself from collapsing by mapping out a restructuring plan.

Things may well get worse for the industry superpowers as local brands figure out how to become more competitive. “I’ll only ever buy Chinese and I’ll tell my kids to do the same,” says 73-year-old Yan Dunsong.

Among the Auto Show crowd, Chinese students pose for photographs in front of the jerseys of NBA stars Alan Iverson and Pau Gasol at the Toyota stand.

“We’re all Rockets fans,” says Xu Chongyao from Hubei province. “We always see the name (of NBA sponsor) Toyota when we watch games, so we like it more. Some of Toyota’s cars are really perfect.”

The 22-year-old car design student plans to have his own set of wheels within five years.

Buyers here still favor compacts and sub-compacts but times are changing, according to one auto industry expert.

“The Chinese are starting to get crazy about huge sedans,” says Japanese car tool-maker Tatsuya Kudou. “They’re completely different from Indians, who like small compacts, and Japanese, who are tightening their belts (because of the recession) and becoming more environmentally aware.”

Wang Ye, 33, is saving hard for a sports utility vehicle (SUV). “It’s just so cool and it’s suitable for the family,” he says. “More of my friends are buying their first cars these days and a lot of them are going for VW Golfs, because the accessories are cheap.”

China’s car buyers are split between those keen to show off their new wealth and those who don’t want to lose sight of traditional values.

“Why do people have to have a car nowadays?” asks 38-year-old schoolteacher Zhou Hongjuan. Like many Chinese, she rides an electric bicycle to work. “It’s not economical to own one in Shanghai, and I can grab a cab when it rains without having to pay exorbitant parking fees.”

As if rising parking fees in big cities were not bad enough, Shanghai locals also have to fork out around 28,000 yuan for a registration plate.

Yet older people, while bemoaning the threat to Mother Nature, acknowledge that it is futile to swim against a tide of SUVs, Mini Coopers and Volkswagens.

All three types of vehicles were hugely popular at the 2009 Auto Show, which dominated headlines nationwide as World Earth Day limped by last Wednesday almost unnoticed by the Auto Show visitors.

Some 125 years after Karl Benz made the world’s first car sale in Germany, China has jumped on the gas-guzzling bandwagon and now has its pedal fully to the metal.

Less than a decade since Chinese buyers began shelling out in earnest, auto sales in the country registered year-on-year growth of almost 4 percent in March.

Even in the global recession, local analysts say 2009 should see a sales growth of 8 percent in China, as against a 10 percent dip worldwide.

“The (Chinese car) market is now in the middle of the mature stage,” says Shanghai-based Lexus dealer King Wong. “People are very aware of all the brands and what they represent. There’s no ignorance any more.

“There are far more brands here now than there are in the US or Europe, so we can expect a huge boom soon.”

But is China developed enough to handle the automobile? Middle-aged men, still only rookie drivers, routinely tear around blind corners at breakneck speed, after-service is poor and roads in the south are full of ways to destroy new wheel axles.

“My friend drove from Shanghai to Chengdu. No problem. Then he headed for Tibet and, one hour later, he changed his mind and drove back to Shanghai. He said the roads were so potholed he was scared his new prize would get destroyed,” says Xia senior.

“Bohan likes expensive cars too much,” adds the 40-year-old engineer, who drives an environmentally friendly Honda Fit. “He always tells me my car isn’t good enough.

“I really don’t want to take him to the car show.”

Vistors to the spring flower exhibition at the Shanghai Botanic Garden have selected the varieties they most want to appear at the 2010 World Expo.

More than 1,000 species have been on display at the exhibition, making it a difficult task for the 45,800-odd visitors.

But they have come up three winners — white and red daisies, marigolds and obsession red eye primed — the garden said Friday.

The three accumulated more than 10,000 votes, while 20 other species of flowers also polled very well.

“The selected flowers attracted visitors with their bright colors and beautiful shapes,” said Zhao Yingying, an official with the garden.

Meanwhile, flower experts from the exhibition have recommended to the expo what they believe are the 50 species most suitable for display at the big event.

The flowers were selected according to their quality, ornamental effects and seasonal adaption. The species include violets, petunias and climbing snapdragons, said the garden.

“The expo’s organizing committee will take visitors’ and experts’ suggestions into consideration, choosing the most suitable and beautiful flowers for the event,” said Zhao.

The exhibition opened on Apr. 6 and will close on Sunday.

It had been expected to round up last Monday, but organizers decided to prolong it as the flowers are still blooming so well.

Up until last Monday, about 600,000 visitors had been to the garden’s flower show.

The ticket price for the exhibition is 15 yuan (2 U.S. dollars).

A comprehensive exhibition on China’s Kangxi Emperor of the Qing Dynasty kicked off on Thursday evening at Singapore’s Asian Civilizations Museum.

The exhibition, the Kangxi Emperor: Treasures From the Forbidden City, features rare treasures including a dragon robe once worn by Kangxi himself and the very same armour that accompanied him in battles. It is the first time that these priceless treasures are being shown in Southeast Asia.

“This exhibition presents a wonderful opportunity for us to learn more about the history of China through the story of one of China’s most accomplished and well-known rulers, the Kangxi emperor,” said Lui Tuck Yew, Singapore’s Senior Minister of State for Education, and Information, Communications and the Arts, at the opening ceremony of the exhibition.

He added that the exhibition will find resonance with both Singaporeans and tourists alike who share a natural affinity with, or who would like to find out more about, the Chinese culture and its history.

Chinese Ambassador to Singapore Zhang Xiaokang also attended the opening ceremony of the exhibition.

The exhibition will run till June 14 and is expected to attract over 80,000 visitors.

Carrying shoulder poles, gunnysacks and bamboo baskets, thousands of Vietnamese merchants stand in long lines every morning, anxiously awaiting customs clearance into southwest China’s Yunnan Province.

As soon as the border gate opens at eight o’clock, they begin running as fast as they can towards China’s customs building. Behind the pedestrians are hundreds more merchants with rattling bicycles, tricycles and long flat-bed carts.

They come to Hekou county to buy and sell everything from fruit to clothing. The race across the border can take up to an hour every morning.

“Too many people come to China to make money. You cannot lag far behind others, or you will have to wait in long queues in the customs building,” said 23-year-old Vietnamese vendor Bui Van Son in fluent Chinese.

“Here I can earn money easily, almost the same amount as that of white-collars in Vietnam in a good month,” Bui said. He has been selling ornaments and trinkets in Hekou, which is opposite to Vietnam’s Lao Cai City, for three years.

Bustling trade can be seen in almost every border gate and border city between China and Vietnam.

At different border markets, shops with bilingual signboards are packed with an array of Chinese antiques, Vietnamese jade ware and even French perfume. Mandarin, different Chinese provincial dialects and Vietnamese blend into harmony.

Here, any mention of warfare between the two Asian neighbors three decades ago is carefully avoided.

“We are not concerned about politics, but business only. Friendly exchanges are the most important thing,” said a Chinese woman surnamed Lu. She lives in the border city of Donging, in southern Guangxi Zhuang Autonomous Region, but she sells garments in a rented Vietnamese shop in Mong Cai City.

Such avoidance is also prevalent in border troops.

“We greet each other when we come across while patrolling along the borderline — saying hello in simple English, Chinese, Vietnamese or barely a gesture,” said Bai Jianming, a Chinese military in Yunnan.

“Now and then, we smoke or have a chat together,” Bai said.

The two sides will hold scheduled and sometimes even unscheduled talks during which disputes between armies and civilians are coped with. The informal process eliminates military confrontation.

“We will discuss issues relating to the illegal cross-border activities such as lumbering, hunting and farming,” said Liu Jianbao, a military officer with the Yunnan border troops. “We will also invite each other to come over to the other’s land for celebrations during holidays.”

“The dialogue mechanism helps ease tension and boost mutual trust. Behind the mechanism is nothing but the good relations between China and Vietnam,” he added.

Since the two countries normalized ties in the 1990s, leaders have maintained frequent contact and cooperation.

In 1999, Communist Party leaders of the two countries issued a joint statement, setting forth the principle of building long-term, stable, future-oriented, good-neighborly and all-around cooperative bilateral relations.

In April 2003, Vietnamese Communist Party General-Secretary Nong Duc Manh paid a working visit to China. Hu Jintao, general secretary of the Central Committee of the Communist Party of China, and Chinese Premier Wen Jiabao held talks with Manh separately. The leaders pledged that the two countries and their peoples would be good neighbors, good friends, good comrades and good companions for ever.

For example, on the first day of this year, the two countries began regular train service between Nanning, capital of Guangxi region, and Hanoi.

China and Vietnam finished the demarcation of land borders at the end of last year and are going to celebrate the event next week.

Regarding the South China Sea, the two countries agreed to safeguard its stability, and not to take any action that would complicate or escalate disputes, according to joint statement issued in Beijing in October last year when Vietnamese Prime Minister Nguyen Tan Dung visited China.

The two sides also agreed to collaborate on oceanic research, environmental protection, meteorological and hydrological forecast, oil exploration, and information exchanges by the two armed forces.

Improved political relations brought about good businesses. China is now Vietnam’s biggest trading partner.

According to China’s Commerce Ministry, two-way trade amounted to 19.46 billion U.S. dollars, indicating a growth of 28.8 percent year on year. The two countries vowed to raise trade to 25 billion dollars by 2010.

Two places helping to reach that goal are Dongxing and Mong Cai. The two cities are separated by the Beilun River which is a shared tariff-free area for goods under 3,000 tonnes.

The policy boosts business enthusiasm of frontier inhabitants, said Zhang Shaoming, a military officer garrisoned here, pointing to hundreds of trading cargo ships on the river.

“The thoughts of the common people are very simple. They only believe in real benefits. What they treasure most is nothing but peace,” he said.