Trials in Chinese monk self-immolation death - The Associated Press

Tibet monk given 11 yrs in colleague's immolation(AP) – 11 hours ago 

BEIJING (AP) — A Chinese court has sentenced a Tibetan monk to 11 years in jail after ruling he hid another monk who set himself on fire, denying him emergency treatment.

The official Xinhua News Agency said Monday that the court in Sichuan province's Aba prefecture imposed the sentence on Drongdru after a one-day trial.

It convicted Drongdru, a monk in the Kirti monastery, on charges of intentional homicide for hiding another monk, Rigzin Phuntsog, for 11 hours after he set himself on fire. He later died in a hospital.

The March 16 death of 16-year-old Phuntsog was seen as a protest against China's heavy-handed controls on Tibetan Buddhism and provoked a standoff between security forces and monks.

Copyright © 2011 The Associated Press. All rights reserved.

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Asian Shares End Mostly Up; China Stocks Fall On Tightening Concerns - Wall Street Journal

By Sarah Turner and V. Phani Kumar

Most Asian stock markets rose Monday for a positive start to the week as Friday's Wall Street advance after Federal Reserve Chairman Ben Bernanke's speech encouraged buyers.

Chinese stocks were sold down, however, as concerns about monetary tightening returned. Reports said the People's Bank of China has announced new measures that would in effect increase the amount banks must set aside as reserves.

South Korea's Kospi soared 2.8% to 1,829.50, Australia's S&P/ASX 200 index climbed 1.5% to 4,263.3, and Taiwan's Taiex advanced 1.8% to 7,578.01.

Japan's Nikkei Stock Average finished the day 0.6% higher at 8,851.35, while Hong Kong's Hang Seng Index rose 1.4% to 19,865.11 and India's Sensex rose 3.6% to 16416.33.

But the Shanghai Composite Index declined 1.4% to 2,576.41, following media reports that China has asked banks to include their margin deposits in the reserves required at the central bank. The move will drain liquidity from the financial system.

"We believe small banks that rely more on margin deposits for deposit growth would be more negatively impacted," said analysts with Barclays Capital.

Margin deposits are funds that banks require companies to keep to back bank acceptances, letters of credit and letters of guarantee, the analysts said. The analysts estimate that the Chinese central bank's reported move will reduce system liquidity by about 900 billion yuan ($141 billion).

The tightening measure equals about 2.3 times the size of the central bank's typical half-percentage-point rise in the reserve-requirement ratio, they said.

In Shanghai trading Monday, China Merchants Bank Co. dropped 2.9% and China Citic Bank Corp. lost 3.7%. Industrial & Commercial Bank of China Ltd. gave up 1.9%.

In Hong Kong, China Merchants Bank fell 0.3% and Citic gave up 2.7%, but ICBC jumped 3.3%, extending last week's strong gains after posting solid first-half results.

Citigroup strategist Shen Minggao said the Chinese tightening move likely marked "the last leg of tightening," adding that rate rises will be suspended, while investment growth will be sustained at a slower rate.

Meanwhile, strong gains for Chinese energy stocks supported the broader market in Hong Kong, after refining giant China Petroleum & Chemical Corp., or Sinopec, posted first-half results that beat estimates.

Sinopec shares jumped 6.7%, while fellow energy-sector firms PetroChina Co. and Cnooc Ltd. added 2.9% and 3.5%, respectively.

Shares in most other regional markets also climbed after U.S. stocks ended higher on Friday. Those gains came after Bernanke, in a much-anticipated speech, refrained from stating that the central bank would immediately introduce new measures to support the U.S. economy, saying instead that options would be discussed at its next meeting in September.

Chip-equipment stocks were strong on hopes that dynamic random-access memory, or DRAM, prices may be approaching a bottom.

Elpida Memory Inc. rose 3.2% in Tokyo, while Hynix Semiconductor Inc. jumped 8.4% and Samsung Electronics Co. climbed 1% in Seoul.

Stock gains in Tokyo were muted even as Finance Minister Yoshihiko Noda was elected in presidential elections in the ruling Democratic Party of Japan, paving the way for him to become Japan's next prime minister.

"Even with a new prime minister, concerns remain that the political situation will remain unstable under a split Diet," Nomura senior policy analyst Kenichi Kawasaki wrote in a report. "We will be focusing on the lineup of the new cabinet and party officials as a first indication of Noda's ability to rebuild the cooperative relationship among party factions and rapidly address the backlog of economic policy issues."

In Seoul, Hyundai Motor Co. rose 1.3% and Kia Motors Corp. added 1.9%.

Those gains came as their Japanese rivals underperformed the broader market, with Toyota Motor Corp. dropping 1.9% and Honda Motor Co. fell 1.2%.

A Nikkei report Monday flagged the possibility of shortages of passenger-vehicle tires and parts as the firms aim to ramp up production in the October-March half of the current fiscal year.

Tire maker Bridgestone Corp. told car firms that domestic orders would likely exceed output capacity, according to Nikkei. Bridgestone shares fell 1%.

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Chinese General's Spy Talk Leaked Onto YouTube - ABC News

Footage of a Chinese general discussing sensitive spying cases has been leaked onto Google Inc.'s video sharing site YouTube, in what appears to be an embarrassing failure of secrecy for the usually tightlipped military.

It wasn't clear when or where Maj. Gen. Jin Yinan made the comments and China's Defense Ministry did not immediately respond Monday to faxed questions about the video. Calls to the National Defense University where Jin is a lecturer rang unanswered.

While some of the cases had been announced before, few details had been released, while others involving the military had been entirely secret.

Among those Jin discussed was that of former Ambassador to South Korea Li Bin, who was sentenced to seven years for corruption. Jin said Li had actually been discovered passing secrets to South Korea that compromised China's position in North Korean nuclear disarmament talks, but the allegations were too embarrassing to make public and graft charges were brought instead.

"In all the world, what nation's ambassador serves as another country's spy?" Jin said.

Similar treatment was handed out to the former head of China's nuclear power program, Kang Rixin, who was sentenced to life in prison last November on charges of corruption. Jin said Kang had in fact peddled secrets about China's civilian nuclear program to a foreign nation that he did not identify, but that was considered too sensitive to bring up in court.

Kang, a member of the ruling Communist Party's powerful Central Committee as well as its disciplinary arm, was one of the highest-ranking officials ever to be involved in spying, Jin said. His arrest dealt a major shock to the party leadership, Jin said.

"The party center was extremely nervous. They ordered top-to-bottom inspections and spared no individual," he said.

Jin also talked about Tong Daning, an official from China's social security fund, who was executed in 2006 after being convicted on charges of spying for rival Taiwan. Jin said Tong had passed information to the island's leaders about China's currency regime, allowing them to avoid massive losses due to exchange rate changes.

Among the cases involving military personnel, Jin said that of Col. Xu Junping, who defected to the United States in 2000, did not involve the loss of any technical secrets.

Instead, Xu relayed to the Americans his knowledge of the military leaderships' personalities, attitudes and habits gleaned from many years accompanying the top brass on trips abroad, Jin said.

The video was also posted on Chinese websites, and while it was removed from most locations, screen shots, audio files and transcripts of Jin's comments could still be found on sites such as Sina Weibo's popular microblogging service.

Jin's presentation, complete with explanatory slides, was typical of how such cases are discussed at private sessions as a warning to Communist Party cadres not to be lured into espionage or corruption. The leaked video appeared to have been from an official recording rather than filmed by a member of the audience.

Authorities heavily police the Chinese Internet but can only remove objectionable content after it is posted and have no control over what appears elsewhere.

While Chinese are enthusiastic users of social media, YouTube and Facebook are blocked inside China and their Chinese equivalents are required to inspect all content and remove politically sensitive material before being ordered to do so.

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China Holds Card in Bolstering Global Economy - New York Times

SINGAPORE — Figuring out what the Chinese central bank is doing can be as perplexing as parsing a statement by Alan Greenspan, the notoriously opaque former U.S. Federal Reserve chairman.

Now that the U.S. central bank has made it clear that any further economic assistance will have to wait until September — if it comes at all — the world relies even more on China, with the second-largest economy after that of the United States, to do what it can to support global growth.

Letting the renminbi rise more rapidly is arguably the most potent option available. It would send an immediate signal that Beijing is confident about China’s economic strength despite growing global gloom and that it is committed to a longer term goal of curbing its reliance on exports. A stronger renminbi would make Chinese exports more expensive in overseas markets.

“On any objective gauge, the Chinese currency should be higher today than it is,” Glenn Stevens, the Reserve Bank of Australia’s governor, said Friday.

“I think it would be beneficial to the global economy and beneficial to the Chinese people for there to be more flexibility in that price,” he added. “There is no shortage of people telling Chinese authorities that.”

Indeed, this has been a recurring theme with China for the better part of a decade. Many economists argue that the less pressure the world places on Beijing, the more likely it is that Chinese policy makers will loosen their grip on the renminbi.

In the past three weeks, China has come tantalizingly close to signaling some sort of a policy shift. The central bank, the People’s Bank of China, has fixed the renminbi midpoint at a series of record highs, and it did so yet again Monday.

Articles and editorials in government-controlled newspapers have argued that the time is right for faster appreciation.

But just when investors and economists smelled a change, the People’s Bank of China stepped back and let the renminbi drift sideways for a week. Several analysts at Chinese government research institutions said in interviews that expectations of a big move were misplaced.

Liang Youcai, senior economist at the State Information Center, said a sharp rise in the renminbi could backfire by attracting more investment money into China, worsening the inflation pressures that the People’s Bank of China wants to counter.

Still, the renminbi has risen about 0.8 percent against the dollar so far this month. That may sound modest, but considering that it rose just 2.3 percent over the first seven months of the year, it shows that Beijing has stepped up the pace, even though concerns about growth have intensified.

Back in 2008, China responded to the global financial crisis by halting the renminbi appreciation. It did not reverse course until June 2010 — a full year after the U.S. economy officially exited the recession.

“This time, Chinese policy makers appear to be still in observation mode,” said Grace Ng, an economist with JPMorgan Chase in Hong Kong.

Beijing is well known for its caution. Even when state-linked newspapers were talking up the chances of a swifter renminbi rise, some government officials stressed that now would be a dangerous time to allow that because growth is slowing in China’s two biggest export markets, the United States and Europe.

The mixed messages may reflect disagreement among Chinese officials about the ideal policy path — another possible sign that indicates that Beijing is likely to proceed slowly.

The People’s Bank of China itself has said repeatedly that inflation remains its top concern, suggesting that it is inclined to keep tightening monetary policy despite concerns that the global economic malaise could deepen China’s slowdown.

Actions speak louder than words, especially when the words are inconsistent. A closer examination of the renminbi’s recent moves suggests Beijing is allowing a bit more flexibility.

Tellingly, China has let the renminbi rise against the currencies of several of its major trading partners, not just the U.S. dollar. On a trade-weighted basis, the renminbi is at a three-month high.

In September 2010, the last time investors got their hopes up for a speedier renminbi rise, Beijing did allow the currency to increase more rapidly against the dollar, but the currency also moved in the opposite direction on a trade-weighted basis.

Jim Walker, founder of Asianomics, a research company in Hong Kong, is not holding his breath for decisive action this time around either. “We’ve been waiting for two years for a significant move in the renminbi, and we haven’t got one,” he said.

For China’s Asian neighbors, a stronger renminbi would provide a bit of cover to let their own currencies rise more quickly without jeopardizing exports. That can be a useful tool for containing stubbornly high inflation.

Singapore and Indonesia have been among the most aggressive in using currency appreciation to combat price pressures. Both have shown success, although Singapore’s inflation picked up more than economists had expected in July.

The biggest benefit of a faster-rising renminbi for the world may be psychological. China’s endorsement of a faster rise might quell concerns that the economy is faltering as global growth slows.

Letting the currency do some of the work in fighting inflation would also give the Chinese central bank wiggle room to hold off on additional interest rate increases, which would put an unwelcome drag on economic growth.

But Mr. Walker said China cannot hope to contain price pressures when interest rates are below the inflation rate, even if it lets the currency rise faster.

“Frittering around with the renminbi is fine,” he said. “It will marginally tighten monetary policy. But until you send the right signal about the cost of capital, problems will remain.”

Emily Kaiser is a Reuters correspondent.

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Mona Charen: Biden woeful in speech on China's population-control program - The Tennessean

This was not a gaffe. This was a disgrace. In a speech at Sichuan University, Vice President Joe Biden said ?Your policy has been one which I fully understand ? I?m not second-guessing ? of one child per family ...? But, he continued, this policy is creating demographic difficulties, such that ?one wage earner will be taking care of four retired people. Not sustainable.?

Following criticism, Biden?s spokeswoman, Kendra Barkoff, insisted that Biden, along with the entire Obama administration, finds the Chinese government?s population control regime ?repugnant.? But she seemed confused as to what the fuss was about. ?He also pointed out, in China, that the policy is, as a practical matter, unsustainable. He was arguing against the one-child policy to a Chinese audience.?

Well, yes, but in the most abstract and anodyne way. Saying, ?I fully understand ? I?m not second-guessing? is practically an endorsement ? and certainly much milder language than the administration has aimed at Republican budget proposals. Biden didn?t condemn the immorality or brutality of a system of forced sterilization and forced abortion ? he merely noted that the demographic consequences of thus drastically limiting the population would lead to problems for China?s version of Social Security. It?s as if, speaking in Damascus, he had told a Syrian audience that the government's handling of protesters would lead to a decline in tourism.

Can the vice president really be ignorant of what goes on in China? Has he forgotten that even Secretary of State Hillary Clinton, when she was first lady, condemned the policy proclaimed at a 1995 Beijing conference? Did he miss all of the State Department country reports detailing the harsh interrogation of Chinese women, the tracking of their menstrual cycles by government officials and the steep fines for having ?unauthorized? children? Is he really unaware that when women go into hiding to conceal their pregnancies, other family members are often beaten and tortured until they turn themselves in and submit to abortion and sterilization?

Vice President Biden was on the Foreign Relations Committee for many years. Did he miss all of the hearings on this subject? The reports by Amnesty International? Did he miss The Washington Post story about the imprisonment of blind human rights activist Chen Guangcheng, who served more than four years in ghastly conditions for protesting the brutality of the one-child policy? The Post story mentioned 10,000 forced sterilizations performed in Puning City. Chen revealed that in Linyi County, Shandong Province, alone, there were 130,000 forced abortions in 2005. Is the vice president truly unaware that children born in defiance of the one-child policy are not permitted to enroll in school or see a doctor?

But many, many Chinese babies don?t even get that far. They are ripped from their struggling mothers? wombs by government goons. The London Sunday Times reported, for example, the trauma of Zhang Linla, the mother of a 4-year-old daughter who became pregnant again without permission.

?Six days before the due date, 10 strong strangers came to my house, forced me into a truck then took me to a family planning clinic, where the doctor gave me an injection (of a drug to induce labor). The child began struggling in my womb and one of these scum even kicked me in the abdomen. Then the baby came out and they threw it into a rubbish bin. I could even see it was still moving.?

The Chinese communist government, which has killed more people than any regime in the history of the world (65 million, according to the Black Book of Communism), regards human beings as widgets to be manipulated or destroyed in the service of the state. Yes, they?ve developed an expanding economy by adopting free-market practices. But the regime remains one of the most vicious on the planet. It is deeply shameful that the vice president needed to be reminded of that.

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Albanian Minerals :China's industrial profit increase of 28.3 percent - Wall Street Journal

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'Jurassic Mother' Replaces 'Dawn Mother' as Mankind's Oldest Relative - International Business Times

Scientists have discovered the oldest mammalian ancestor in northeast China, according to a paper published in the latest issue of the journal Nature.

Named, Juramaia sinensis, or the "Jurassic mother from China", the fossil of the small shrew-like animal was unearthed in China's northeast Liaoning Province, which has produced many amazing fossils in recent years.

Zhe-XI-Luo, a paleontologist at the Carnegie Museum of Natural History in Pittsburgh and his colleagues discovered the 160-million-year-old- fossil. Until this amazing find, the oldest ancestor to today's mammals was the "dawn mother" Eomaia- a 125-million year-old rat found in China.

'Jurassic Mother' Replaces 'Dawn Mother' as Mankind’s Oldest Relative. Credit: Mark A. Klinger, Carnegie Museum of Natural History

"Because it lived 160 million years ago, and nobody was there to sign the birth certificate of its descendants, Juramaia could be our great grandmother 160 million years removed or it could also be our great grand aunt that represents a relative on the side lines," lead author Zhe-Xi Luo told Discovery News.

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The 160-million-year-old specimen has features that enabled scientists to place it among eutherians, or what is more commonly referred to as placental mammals. The creature was identified as a placental-eutherian, which is distinguished for having a placenta when pregnant (similar to humans and other modern mammals). This is in contrast to marsupials like kangaroos, which adopt a different reproductive strategy.

The new found fossil is well preserved with all its teeth intact. The skull is incomplete, but there are impressions of residual soft tissues, such as hair. It also retains its forepaw bones.

The teeth found on the fossil lead researchers to identify it as belonging to the eutherian lineage. The discovery pushes back the date when placental mammals and marsupial mammals took up their separate lines.

The Liaoning specimen is especially significant, because it means the fossil record now sits more comfortably with what genetic studies have been suggesting about the timing of the emergence of the different mammalian lineages, reports BBC.

Luo suspects the animal ate insects and was small and skinny and generally more active at night.

"This new specimen is a real jewel among the spectacular treasure chest of the Chinese fossil record," said Gregory Wilson, an assistant professor at the University of Washington's Biology Department.

 "The exquisitely preserved anatomical details leave little doubt that we're looking at the earliest eutherian yet known," he continued, explaining that it was "not quite a placental yet but on the line to placentals," he told Discovery News.

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Chinese Li, German Muller to challenge Samuels in women's discus throw - Xinhua

DAEGU, South Korea, Aug. 28 (Xinhua) -- Australia's Dani Samuels is set to face challenges in her bid for a second consecutive world title as Chinese veteran Li Yanfeng and Germany's Nadine Muller both showed good form in the qualifying round of the women's discus throw at the World Championships.

Samuels produced one of the shock results of the last World Championships as the 21-year-old Australian improved her personal best by 2.5 meters to snatch the gold with 65.44 meters against a field which included Cuba's Olympic silver medallist Yarelis Barrios and Romania's 37-year-old three-times world medallist Nicoleta Grasu, respectively silver and bronze medallists.

Two years on, Samuels is preparing to defend her title having had a relatively moderate time in competition this season. By way of an indication, the Australian is only sixth in the Diamond League's Race for her event, in which Muller leads by just one point from Barrios.

The 25-year-old German also finished the qualification on top with 65.54m, 10 centimeters farer than Samuels's winning result in Berlin, followed by Li with 64.44m.

However, it is Li that leads the world lists with her effort of 67.98m achieved in Schonebeck on June 5. The mark also made her the leading competitor here in the entry list while Muller is the second with 67.78m.

The 32-year-old, who won the Asian Games title last year with a season's best of 66.18m, has demonstrated both her ability and her competitiveness and will be a strong contender of the world title while the defending champion seems to be much weeker in both season best (62.33m) and her qualifying mark (60.05m).

The last Diamond League women's discus event, at Monaco on July 22, saw Muller lay down a marker of her ambition as she won with 65.90m, close to her season's best of 66.05m, pushing Barrios, who managed a season best of 65.44m, into second place, with Stephanie Brown Trafton taking third place on 62.07m.

Barrios was qualified for the final on Sunday night on the third with 63.80m, followed by Zaneta Glanc from Poland.

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China Times: How can the judicial system be trusted? - Focus Taiwan News Channel

Former President Chen Shui-bian and his wife Wu Shu-jen were surprisingly found not guilty of corruption Friday after a three-judge panel reversed a previous ruling. The panel said the amount of money spent by Chen using a special state fund reserved for the president's discretionary use was higher than the sum he allegedly embezzled.

In its not-guilty ruling, the panel did not clarify whether the "state fund" was the same as the "president's special fund for discretionary use," and did not bother to describe the difference between the two.

The court ruling reversal is extremely surprising, but an even more pressing issue is whether the much-talked-about judicial reforms are true or not?

Prominent as they are, the ex-first family's corruption and money laundering cases have so far danced to the typical tunes of Taiwan's legal tradition -- felony in first trial, light crime in second trial, retrial, and in the end innocent.

The not-guilty ruling handed down by the high court panel was a reversal of a previous ruling handed down by the same court. By reversing the ruling, doesn't the panel need to explain to the country why and where the previous high court judges were wrong in their decision?

With constant flip-flopping on many prominent cases, why should the people trust the judicial system any more?

Why don't presidential candidates renew their attention to so-called "judicial reform" by debating the issue at a time when the dignity and credibility of judicial decisions are vanishing like dirt? (Editorial abstract -- Aug. 28, 2011) (By Deborah Kuo) enditem/ls

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Bus-truck collision in China kills 17, injures 17 - Sacramento Bee

BEIJING -- A Chinese news agency says a collision between a bus loaded with migrant workers and a truck has killed 17 people.

Xinhua News Agency says 17 other people were injured in the crash early Sunday near Zhangjiakou, a city northwest of Beijing.

Xinhua says the bus carrying 34 migrant workers rear-ended a semi-trailer that was parked at the roadside.

Serious traffic accidents are common in China due to lax driving habits, overloaded vehicles and bad road conditions.

What You Should Know About Comments on Sacbee.com

Sacbee.com is happy to provide a forum for reader interaction, discussion, feedback and reaction to our stories. However, we reserve the right to delete inappropriate comments or ban users who can't play nice. (See our full terms of service here.)

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You should also know that The Sacramento Bee does not screen comments before they are posted. You are more likely to see inappropriate comments before our staff does, so we ask that you click the flag icon to submit those comments for moderator review. You also may notify us via email at feedback@sacbee.com. Note the headline on which the comment is made and tell us the profile name of the user who made the comment. Remember, comment moderation is subjective. You may find some material objectionable that we won't and vice versa.

If you submit a comment, the user name of your account will appear along with it. Users cannot remove their own comments once they have submitted them.

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China Blog Site Shuts Accounts Over 'Rumors' - ABC News

China's most popular microblogging site is cracking down on what it says is the spread of false rumors after the ruling Communist Party told Internet companies to tighten control over information online.

The move by Sina Corp. reflects the pressure on China's Internet companies, most of which are privately owned, to take initiative to help Beijing enforce censorship or risk losing the right to operate profitable businesses in a fast-growing market.

Sina's Weibo service has sent notices to its 200 million users denying two reports posted on the site, including one about the killing of a 19-year-old woman. It said the accounts of users who originated the reports were temporarily closed.

The move comes amid the ruling party's most sweeping crackdown on dissent in years as it tries to prevent the rise of Middle East-style protests.

The party secretary for Beijing, Liu Qi, visited Sina's headquarters last Monday and said Internet companies should block the spread of false and harmful information, according to a party newspaper. Liu gave no details of what the party wanted, but Sina issued a statement Thursday saying it would "put more effort into attacking all kinds of rumors."

Beijing encourages Internet use for education and business but worries about its potential to spread criticism of communist rule. Authorities tightened controls after social networking and other websites played a key role in protests that brought down governments in Egypt and Tunisia.

Weibo users reacted with dismay to Sina's move.

"The constitution stipulates freedom of speech, but there is no freedom of speech in reality," said one posting on the site. "Please refute this rumor."

Sina's announcement gave no indication it was following government orders but many user comments said it reacted to Liu's visit.

Others questioned whether the ruling party would use the policy to suppress the spread of true information that might embarrass officials.

"Do not ban the truth through 'refuting rumors,'" said one.

Web bulletin boards and Sina's microblogging site are especially sensitive because they give China's general public a rare opportunity to express opinions to a wide audience in a society where the party controls all media.

Communist leaders have allowed such services as they try to strike a balance between controlling information and developing an Internet industry they hope will help drive China's modernization. Private sector Internet services are required to monitor content on their own and quickly remove any that violates censorship rules.

Sina CEO Charles Chao told Forbes magazine in March that Weibo had at least 100 employees monitoring content 24 hours a day.

In its announcements Friday, Sina denied a report on Weibo that a suspect in the slaying of a 19-year-old woman was freed in the central city of Wuhan because of his politically influential father. It cited police as saying the suspect was still in detention.

Sina said the account of the user who spread the report was suspended for one month.

The company also denied a report that the Chinese Red Cross was improperly charging hospital patients for blood. It said the Red Cross had no role in managing blood donations, only in assisting health authorities with publicity.

Sina said it has created a separate channel dubbed "Weibo Refutes Rumors" to spread denials of false information. It announced an email address for users to send reports of possible falsehoods.

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Disney Inks Deal with Greenbox, Chinese eCommerce Is Taking Off - TechCrunch

Sarah Lacy currently works at TechCrunch as a senior editor. She is also an award winning journalist and author of two critically acclaimed books, “Once You’re Lucky, Twice You’re Good: The Rebirth of Silicon Valley and the Rise of Web 2.0” (Gotham Books, May 2008) and “Brilliant, Crazy, Cocky: How the Top 1% of Entrepreneurs Profit from Global Chaos... ? Learn More

A lot of Americans desperately want to believe that China is full of poor people who can’t innovate, and the only goods they make are cheap, toxic rip-offs our Western brands. They want to believe the only reason the Chinese economy is surging is because the West wants cheap goods and China knows how to make them that way.

These people will hate this post because it’s about a company called Greenbox that flies in the face of those preconceived notions.

Greenbox makes high-end, super-styled kids clothes in and for the Chinese market. It caught the eye of Disney, which reached out to the company to ask if it wanted to manufacture some of their lines. “No thanks,” the company replied. “We’re not interested in just being an OEM.”

Wait, isn’t this China we’re talking about? It’s a country of OEMs.

The mouse house came back with a sweeter offer that’s being announced at a ceremony in China tonight: It has licensed the rights for the princess collection, Mickey Mouse and Minnie Mouse and Winnie the Pooh to Greenbox. The company will design a high-end online collection to be sold online in China, as part of a broad plan to help build hype for the upcoming themepark in Shanghai.

Greenbox was founded more than ten years ago by a designer named Fangfang Wu who started to make clothes for her kids because she was so unhappy with the cheap, boring ones being sold in the country at the time. She obsessed over fabrics, fashion and design and a hobby quickly turned into a business, as she opened a chain of stores, and later closed those stores to sell on Taobao for better margins.

She was one of the top grossing sellers on Taobao as her designs struck a chord as with other young, working women in China who wanted to flaunt their increasingly hip and unique tastes. (I mean, look at that outfit above. It’s like a little Chinese Natalie Wood playing Red Riding Hood. How is that not adorable?) In 2010, DCM’s China office sought her out, investing just over $10 million to help scale the business.

Today Greenbox is bringing in about $50 million in annual revenues on decent margins. She charges between $30-$40 for items— not absurd, but certainly on the higher end for kids’ clothes. “It’s a classic case for venture capital: High gross margins, but takes money to build it to scale,” says Hurst Lin of DCM.

Note I didn’t describe Greenbox as the fill-in-the-blank of China. In fact, I’m hard-pressed to come up with an ecommerce model she’s ripping off from the US. Kids clothes hasn’t been a natural vertical for etailers here, save being an offshoot of a site like Amazon.

The reason Greenbox has worked so well for China is cultural. Because there are so many only children, there are at least six people wanting to lavish them with cute things: The parents, and two sets of grandparents. This was the same insight Tencent tapped into to monetize its virtual goods early on.

So, Greenbox: Not a copy cat, and not the invisible cheap assembly partner for the West either. Welcome to the next stage of Chinese entrepreneurship.

Greenbox is part of a crop of booming ecommerce companies in China. For years, the market has been held back due to the typical challenges of shipping, infrastructure and payment platforms. Jack Ma, of Alibaba, has long said ecommerce would be bigger in China than here, and that’s not just because there are more people. In the US, he calls ecommerce “dessert,” but in China there are so many people underserved by brick-and-mortar retail that ecommerce will be the “main course.”

DCM and other firms have been aggressive backing many new ecommerce players, and they aren’t as simple as just being the Amazon of China. (Although, to be fair, DCM backed one of those too.) Many of these companies, like Greenbox, show a sophistication in appealing to what the Chinese market wants, not simply what’s worked elsewhere.

A surprising vertical Lin seized upon that has never proved lucrative in the US is wine. As incomes soar, many Chinese are developing a taste for Western wine, but have trouble finding interesting vintages and even navigating the language barriers, he says. His bet, YesMyWine, isn’t just an ecommerce play, it’s a content and media play.

He was delighted the PR contact on the call brought up another hot DCM ecommerce company: La Miu, which makes sexy lingerie. I could hear him squirming as he tried to explain– delicately– why Victoria’s Secret failed miserably in China, while more recently La Miu has succeeded.

Victoria’s Secret tried to market to women in their 30s who wanted to be comfortable not sexy. It was a bit too early in China’s consumer revolution and husbands weren’t demanding sexier underwear so ever-practical Chinese women just didn’t see the appeal.

Victoria’s Secret made another mistake that Lin tries to explain as tactfully as possible: Asian women have… different bodies….than Western women.

But La Miu has taken a totally different tact: Marketing underwear designed for the Asian body type to teens. “Born in the late 1990s they are much more a global consumer, they are open-minded and more rebellious,” Lin says. “It’s been a huge success.”

As I’ve written before, China’s ability to be the assembly line to the world wasn’t where its role in the global economy ended; it was where it began. An ability to make products cheaper than anywhere else gave way to an ability to make high end products more nimbly than anywhere else. And increasingly, entrepreneurs like Wu are adding design and brand on top of that to create products the broader world will want.

The first generation of Chinese entrepreneurs was about picking the low-hanging fruit in a massive country just opening up to capitalism. Now the real fun is starting.

(Shameless plug: Join TechCrunch at Disrupt Beijing in October to learn more.)

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