THE RICHEST VILLAGE IN CHINA?

Long before it morphed into a city of 10m and became China's largest municipal exporter, Shenzhen – as the cliché has it – was a "sleepy fishing village" on Hong Kong's northern border.

In 1980 Shenzhen comprised two towns – the largest of which had a population of 20,000 people – and 15 former communes. The "village" so many people remember is Fishermen's Village, or Yumin Cun, a small rural hamlet situated on the banks of the Shenzhen river just a few hundred yards west of the Lo Wu border station.

Like Shenzhen, Yumin Cun has changed beyond recognition.

From a collection of huts it has gone upscale. Yumin Cun is now a gated community in downtown Shenzhen, occupying some of the most expensive land in China. Its transformation captures in microcosm Shenzhen's own shift from agricultural backwater to industrial powerhouse whose emergence made possible Hong Kong's reinvention from a manufacturing hub to global financial services centre.

Initially, the village's proximity to Hong Kong was a liability. In the 1950s a one-metre high fence was constructed, separating villagers from the river they fished to supplement meagre agricultural incomes.

As the Cultural Revolution's lunatic excesses fuelled a new wave of emigration to Hong Kong, the fence was fortified. "They made it two metres high," says Huang Xingyan, who grew up in the village. "I remember watching thousands of people running across the border." Among them were residents of Yumin Cun. Mr Huang estimates that half of all villagers aged 40 or above now live in Hong Kong.

The villagers' luck changed on August 26 1980, when the central government formally designated Shenzhen one of four new special economic zones. Their village was in the right place at the right time, occupying a prime piece of land around which downtown Shenzhen would develop.

They also benefited from a distinction between rural land, which is owned collectively by villagers, and state-owned urban land.

When seven Hong Kong factories opened in the village in 1979, their rents flowed back to the residents of Yumin Cun. By 1981 it was reckoned to be China's richest village – a distinction that led to a visit from Deng Xiaoping, the architect of China's reform and opening, in 1984.

That occasion is memorialised in a series of bronze panels depicting different stages of the village's development over the past 50 years.

In the early years of the 21st century, the people of Yumin Cun discovered a more lucrative sideline – high-end property development. Single-family homes were torn down and replaced with apartment blocks.

Like Hong Kong tycoons who occupy penthouses at the top of their developments, village families live in upper floor units and rent out lower ones. Even simple dormitory buildings, used by the villagers as temporary accommodation during construction of their new homes, have been let to poor migrants who have flocked to Shenzhen.

In total, 191 villagers collect rents from 3,800 outsiders who have taken up residence. Each village family can collect as much as Rmb25,000 ($3,245) a month from their communally-owned property company, Shenzhen Yu Feng Property Management.

In addition, about 100 villagers own shares in the community's main holding company, Shenzhen Yu Feng Industrial Development Co, which manages factories in neighbouring Dongguan. According to Mr Huang, deputy general manager of Yu Feng Industrial, the company had revenues of Rmb7m last year and paid a dividend of Rmb1.5m.

ShangHai by Day

China Takes Credit for Sudan Allowing UN Peacekeepers

China's special representative on Darfur says the Chinese government's dialogue with Sudan was key to Khartoum agreeing to allow United Nations peacekeepers into the conflict-ridden Darfur region. As Daniel Schearf reports from Beijing, China has become more active in trying to resolve the Darfur conflict after facing criticism for putting economic concerns above human rights.

Liu Guijin

China's special envoy on Darfur Liu Guijin said Thursday that Sudan's agreement last month to allow U.N. peacekeepers into Darfur "could not be separated" from the Chinese government's efforts on the issue.

"From the highest leader in China to relevant foreign ministry officials, we have always used our method of using our words and made use of every opportunity and channel in every aspect of work, especially with the Sudanese government," said Liu.

Khartoum for months dragged its feet on a U.N. plan to allow thousands of peacekeepers into Darfur to relieve overwhelmed African Union forces. Last month it finally signed approval for a hybrid force of AU and U.N. troops.

Liu visited Sudan and other African nations last month. He says the deployment will begin, at the earliest, at the end of this year, pending Khartoum's agreement on a date.

China has resisted sanctions against the African nation despite accusations Khartoum has supported militias responsible for mass killings and rape in Darfur that Washington has called "genocide."

President Bush has taken a "wait and see" attitude to Sudan's agreement to the U.N. deployment.

Liu says western nations should stop doubting Sudan's intentions and be more welcoming of the steps forward.

He compares Khartoum to a naughty child who needs to be rewarded for good behavior.

"It's just like a child. If you judge him to be a bad child, when he does something good you should give him a little encouragement and say some nice things," said Liu.

Human rights organizations say China, which buys two-thirds of Sudan's oil exports and sells arms to Khartoum, is more interested in money than in human rights, an accusation Beijing denies.

Liu says China was doing its best to ensure weapons sold to Khartoum did not end up in the wrong hands.

He says attempts to politicize Beijing's hosting of the 2008 Olympics by linking it to the Darfur situation could only be due to ignorance of China's efforts to resolve the conflict or from people maintaining a "Cold War" ideology.

More than 200,000 people have been killed and two million made homeless since 2003 when rebels and government forces began fighting in Darfur.

Hong Kong Celebrates 10th Anniversary of Return to China

Chinese leader Hu Jintao, center, sings with other performers during the variety show in Hong Kong, 30 Jun 2007

Chinese President Hu Jintao is leading celebrations in Hong Kong to mark the 10th anniversary of its reunification with China. The Chinese leader says democracy is growing in the territory but did not specify when the city would have universal suffrage. VOA's Heda Bayron reports from Hong Kong.

The territory kicked off July 1 with a flag-raising ceremony at the site of the historic change of sovereignty 10 years ago.

Hong Kong is celebrating with colorful parades, variety shows, and fireworks.

But alongside the grand government-organized celebrations, tens of thousands of Hong Kong residents are expected to march for democracy Sunday. As in the last four years, the protesters demand the right to directly elect their leaders.

In his speech Sunday morning, Chinese President Hu Jintao says democracy in Hong Kong is growing in an orderly way.

But he did not mention any timetable for universal suffrage.

Mr. Hu says the central government will remain committed to the principle of "one country, two systems" and a high degree of autonomy for Hong Kong.

The "one country, two systems" arrangement lets Hong Kong keep its capitalist economy and Western-style courts and civil liberties. China's ruling Communist Party has say over the city's political structure.

The city's top leader, the chief executive, is selected by about 800 voters approved by Beijing, and half the city's legislature is directly elected by the public.

A new Hong Kong cabinet was also sworn in Sunday.

Hong Kong Chief Executive Donald Tsang says his government will be "more open" and more democratic". Tsang, who originally took office two years ago after his predecessor resigned, promised to introduce proposals on a democracy roadmap during his term.

He also promised to do more to address concerns of a growing income gap, worsening pollution and heritage preservation.

Until the handover to China in 1997, Britain ruled Hong Kong for 156 years.