NOTE: This is part of a continuing online novel. Here is the Table of Contents.

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Jiang Zemin may have been the first Chinese Emperor in all history to voluntarily relinquish power, with good health still intact.

The Emperors had ruled for life. The Nationalists had been overthrown. Both the Great Leader (Mao Zedong) and the Dear Leader (Deng Hsiao Peng) had hung on until death like Popes, with intrigue swirling around them, rising like a tide to swallow them.

Jiang, on the other hand, had served only until age 78, and had then voluntarily passed power on to his protege, Hu Jintao, now “just” 62. This made Jiang an elder statesman, with no formal title, no formal responsibilities. Yet he felt he had so much left to give.

Hu Jintao was genuinely happy to have him around. He liked Jinag. His own path to power had been paved with his willingness to defer to Jiang. But now, he saw with amazement, Jiang genuinely deferred to him. The protege had become the master, as promised. It was a gift beyond price.

Now, as the economic crisis with America entered its third week, he was most greatful for Jiang's company, and advice. The two man sat in identical stuffed chairs, sipping tea poured from the table between them, nibbling rice crackers, neither saying a word. Take the peace and space you need to make the right choice. This had been one of Jiang's lessons.

Such peace was hard to come by. The job of managing China's incredible growth was hard enough. But this crisis, forced on Hu by American
intransigence...

The revaluation had made some Chinese rich, those who still held Yuan, while imporerishing neighbors who had taken the government's offer to buy dollars. It was a hard lesson, believe in Beijing, but a necessary one. But the lesson had also made life very difficult for maufacturers, who found themselves facing a virtual trade embargo with many of their best customers, and higher prices when they exported most everywhere else as well.

Still, the Yuan remained close to stable against most major currencies. The nation's cash horde kept the dollar at barely 4 Yuan, against over 8 before flotation. The world's speculators were now gradually unwinding positions at that level, taking profits, waiting for the next move.

What was the next move?

"A crisis cannot last forever," said Jiang quietly, as if in answer to his protege's thoughts. "The pressure is either released or the bar snaps. Even a release leaves the bar changed forever, but a break can leave it useless.”

"How do we relieve it?” asked Hu. “Ambassador Randt has been called back for consultations. Our back channel entreaties have been ignored."

Silence returned to the room. In a capital filled with construction, silence was the great luxury afforded great power.

Finally, Jiang smiled broadly like a cheshire cat. "When the window is barred the gate may be open."

Hu smiled back, amused at the way Jiang was speaking. "What are you thinking, Wise Master?"

"What would our adversary do if he wanted to have his message heard?" Jiang sipped his tea thoughtfully. "He might hold a news conference."

"Wha?"

"Not a big news conference, mind you. A small one, for the Western press. Televised, so there is no advantage to anyone. A room not much bigger than this, with cameras and chairs and a small dais. An announcement, maybe 10 questions in all, pre-selected questioners. Put on the invitation, in English, that this is a peace offering. Schedule it for, maybe, 7 AM, prime time in the U.S. East Coast.

“Then talk of peace.”

"If the American President doesn't want to listen, can't he just deny carriage?" Hu asked.

"It doesn't work that way there. News organizations are autonomous, even those most friendly to the government. They call it checks and balances."

"Perhaps we might call it check and mate," said Hu Jintao." It is always a great pleasure to sip tea with you, Wise Leader. But I have much work to do."

"That is sad," said Jiang Zemin. "Perhaps in a few years you may choose your own protege, and we might both have strangth and time to spend more time together. I am interested in this game golf. It would be nice to have someone to play it with."

Hu, who was not unfamiliar with this new Chinese fad, tried his own joke. “Crouching Tiger in the Woods?” he asked. And laughed as he left.

And so the news conference was duly scheduled. Hu and some aides spent most of the afternoon drafting an opening statement. Invitations were sent on a Sunday morning to 10 news organizations – CNN, the four U.S. networks, the BBC, Xinhua, Fuji and TV from Japan, and Korea’s TRE.

The invitations were hand-delivered to each network. One reporter and one cameraman would be admitted only. They would be picked up by government limos outside their offices, and those who weren’t ready on time would not be admitted.

The invitation was designed to be inscrutable, understated and thus guaranteed to attract maximum attention. Those with the largest voice need speak in the smallest whisper. Within hours of the invitations’ arrival they were all over the news, pundits speculating wildly as to what the Chinese government wanted to say. And, since European and other Asian networks had also been invited, there would be hope for the Americans to even think of stopping the broadcast. A White House report dismissed the whole thing as a stunt.

But it was no stunt. At the appointed hour, in a relatively small room with drawn curtains, 20 men and women of the international press were ready. The room had two entrances, and had been set up length-wise, so that the reporters came in the back and the participants the front. A plain but attractive plaque had been placed behind a rostrum, red bordered in yellow. On it, in English, were the words “Forbidden City” and below it “China.” These words were repeated lower on the plaque, very small, in Chinese. Around the plaque were red curtains. It felt, to the American reporters, like an inverted version of the White House media center.

It was supposed to.

There was a one-step riser with a podium, and to the journalists’ right a second podium. There was room behind the podium on the top step for a few people to stand. Right at 7 the door opened, and President Hu stepped to the main podium, unfolding a piece of paper from his pocket. The Xinhua reporter stood up as he came in, followed by the other Asians. The Americans grudgingly followed their lead. This too felt like an American President’s entrance.

A male interpreter, holding a paper much like Hu’s, stood at the lower podium and spoke each paragraph after Hu.

“The goals of China are peace and stability,” began Hu, his eyes alternating between the paper and the cameras.

“We wish good relations with all people.”

“China now recognizes its leading role in the community of nations. We have joined the World Trade Organization and submitted to its directives. We have entered the world’s financial system by allowing the Renminbi to float in value against other currencies.”

“It has been our hope to create an orderly market in Renminbi, and against most major currencies this has proven to be the case. The U.S. dollar has been the exception. Market forces have pushed the value of the Renminbi against the dollar to a very high level. This makes our exports to the United States more expensive.

“China regrets this.

“But the solution to this problem lies in America.

“America is currently borrowing more money than it can afford. It should move toward a budget surplus in order to stabilize the value of its currency. This is the medicine America has encouraged others to take for many decades. It is now necessary for America to take this medicine as well. But China is now asking America to take this medicine. This is the message of the market.

“As to rumors that the Chinese government has manipulated the market to force the value of the American dollar down against the Renminbi, let me state that this is not the case. Many of our citizens have been very anxious to hold dollars. They have traded many Renminbi for dollars in an orderly way. As a result, the amount of American currency held by the Bank of China is today higher than it was on the day flotation began. We have sold dollars in the world market only to stabilize our own holdings.

“Let me repeat. The government of China desires peaceful relations with all countries, including the United States. We will, of course, engage in trade with the world so as to benefit our people, and we expect our trading partners to do the same.”

Hu looked up from his paper, and spoke for the first time in English. “I will now take some questions. Mr. Mike Chinoy?”

Veteran CNN China hand Mike Chinoy, who had covered the Massacre at Tienanmien Square in 1989, and had flown up here overnight from his current base of Hong Kong now stood up. “Mr. President, what do you say to people in America who feel all these moves were timed to hurt America, and who may not believe the kind words you have just given us?”

Hu stood thoughtfully for a moment, then turned to the interpreter and spoke very slowly, so his English would be clear.

“We do have differences with the American government,” the interpreter repeated. “We do not recognize America’s illegal occupation of Iraq. We wish it to end. We do not recognize its interests in our island province, Formosa.

“But all questions of foreign policy are negotiable. We have acted here in a businesslike way, as we believe America would. As a result of our actions America’s trade deficit with China may actually decline. Whether it does is up to American businesses. They are free to trade at current prices or seek other sources.

“What we offer is a level playing field. America is a great power. China is a great power. Our economy is not yet as large as that of America, but we expect it will be by the end of this decade. Our space program is not yet as great as that of America, but we expect by the end of your 2005 that it will be.”

Hu continued. As he did the expression on the interpreter’s face changed, to something approaching amazement. But his calm recitation continued.

“America emerged as a world power just a century ago. Its economy then was not as large as those of its European rivals. At that time your President Theodore Roosevelt offered to negotiate peace between two Pacific powers, Russia and Japan, who were then at war. His success was greatly appreciated by both sides.

“We now offer those same services to the American President, and to representatives of Islam. I stand prepared, as your Theodore Roosevelt did, to mediate and work to end what you call your War on Terror. I invite your President Bush to come here, to Beijing, for talks, just as President Roosevelt invited Japanese and Russian emissaries to join him on Long Island a century ago.

“China believes in peace. China believes in trade. China is ready to prove itself to the world.”

There was no second question to the Chinese President . Hu simply nodded, put his papers in a jacket pocket and left as he had come in. The interpreter bowed as he did so. Then Jen Renquin, who had been standing behind Hu, stepped forward and pointed toward the representative of Xinhua.

As he expected, the lights from the American cameras turned off. Only those from Europe and Asia stayed on. Jen ignored them, inclining his head toward his questioner, and answering his question in formal Mandarin Chinese.