According to the China Daily and a survey by The [China?] Consumers' Association (CCA), <a href="http://www1.chinadaily.com.cn/en/doc/2004-02/02/content_302372.htm">Farmers spend more on education</a>:

<quote>
  Wang Zailan, in her 40s, is an illiterate housewife in Lianfeng, Shizhu County
  in Southwest China's Chongqing Province. 

  A black and white TV set is the only household electrical appliances her
  family owns. Her elder son is now at university and the youngest has just
  graduated from junior middle school. 

  To ensure the children's education, the family has accumulated a debt of
  10,000 yuan (US$1,200). </quote>

So the question becomes, who does she owe the debt to?  Will she be able to pay it back?  How many farmers have accumulated such a large debt?  At what rate will they default?  Should the government be subsidizing this type of expenses?

--In other news, the Tehran Times reports that US government officials applied pressure to Chinese oil companies not to pursue oil exploration in Iran.  <a href="http://www.tehrantimes.com/Description.asp?Da=2/1/04&Cat=9&Num=020">No Change in Iran's Oil Field Bidding: Chinese Oil Giant</a>:

<quote>The United States believes that the oil deals would thwart its attempts to quash Iran's suspected nuclear weapons program through economic sanctions.

"The U.S. embassy in China has contacted Sinopec about our plans in Iran, but we have told them that we will continue with all of our efforts there," the Dow Jones News Agency has reported, citing an unnamed Sinopec official.</quote>