Highlights from the Economic Observer, issue no. 345, December 10th 2007
Appeals from Wall Street
Cover story
Wall Street has presented a white paper urging for more open and transparent Chinese financial markets ahead of the third Sino-American Strategic Economic Dialogue (SED III) in mid December. The alliance's unanimous demands include the abolishment of constrains imposed on equity in financial services companies, transparency in financial regulations and procedures, and a more open QFII and QDII market. Some market watchers and academics in China, however, retain that a fast-paced opening-up of the Chinese financial market could expose the country to greater risks.
Original article: [Chinese]
A True Sense of Public Participation
Cover, Editorial
Soliciting public opinion and feedback is only the first step towards promoting public participation in a country’s policy making. Recent developments in Xiamen involving public disapproval of a chemical engineering project are heartening, and should be looked to as a model. But we argue that more is needed in China for such phenomena to be truly meaningful. Empowering public-elected representatives to relate the demands and wishes of the people through legislative mechanism should be the way forward. This could bring the current trend of gathering responses through hotlines, emails and public seminars to the next level.
Full English translation forthcoming
Original article: [Chinese]
Queues of Hopefuls at Beijing’s “Dream Factory”
Cover-- human interest
Martial art experts, waiters, technicians, and construction laborers are among those gathered at the entrance of Beijing’s film sets day after day in hopes of gaining a role as an extra in commercials, television dramas, and films. Those of the beipiao (northern drifts) community come in search of fame and wealth; and while some become success stories, most end up waiting for years only to get meager payment for insignificant roles.
Full English translation forthcoming
Original article: [Chinese]
Set the Tone for Macro-Economic Measures
News, page 3
The just-concluded Central Economic Work Conference held in Beijing has set the tone for next year’s macro-economic controls and objectives. The government will implement firmer fiscal policy and tighten monetary control to tackle an overheating economy and curb inflation. The conference also proposed drin up excess liquidity through stringent control of credit and increasing flexibility in the yuan's exchange rate.
Original article: [Chinese]
Enhanced Transparency in Budget Planning
News, page 4
The Chinese State Treasury has increased the number of Central agencies requiring earlier submission of next year’s budget proposal for higher scrutiny from 40 to 50. It also called for the National Congress' Standing Committee to start screening and rectifying problematic budget proposals by early January 2008, ahead of past years’ deadline. The move is aimed at improving management and inspection workflow, and enhancing transparency.
Original article: [Chinese]
Fuel Shortages Stem from Crude Oil Supply Monopoly
Nation, page 9
Chinese oil refineries have long complained about monopolies in the country’s crude oil supply, which they view as the source of the fuel shortages that have ripped through the market in rececnt months. Refineries depend on oil giants like Sinopec both for raw material supplies and as channels for sales of their processed oil products. However, resentment against Sinopec for charging high supply prices and sales service charges, has led some refineries to adopt uncooperative attitudes by under-delivering products. In response, Sinochem has cut and limited supply to refineries under a strict “crude oil quota plan”. Recently, however, Sinopec has relaxed the restrictions and delivered 500,000 tons of extra supply to refineries in Shandong to ease acute fuel shortage in the province.
Full English translation forthcoming
Original article: [Chinese]
Shenzhen’s Chaotic Public Transport Reform
Nation, page 11
A public transportation reform in Shenzhen meant to cut costs has actually increased bus fares. Besides public outcry over the fare bump, some transport workers staged a walk-out on December 3rd for some hours over what they called a confusing fare structure based on travel distance. Workers claimed they were under stress to work out the various mathematical formulas for the right fares and in constant fear of having to foot the price of miscalculations.
Original article: [Chinese]
Beijing Emphasizes the Third Industry
Nation, page 12
The Beijing local government has recently named Zhongguancun district as the leading base for creative, digital entertainment and new media industries in an effort to encourage foreign investment, which has deserted the capital in recent years. Statistics reveal that the ratio of foreign investment for manufacturing projects has dropped against the service sector. Market watchers believe that Beijing is re-orientating itself in three manners: transforming from a production base to a service center, phasing out low-end productios while retaining high-end manufacturing, and developing headquarters and managerial centers.
Original article: [Chinese]
New Secretaries for Chongqing and Guangdong
Nation, page 11&13
The newly appointed secretary for the Chongqing Municipal Committee, Bo Xilai, is expected to internationalize the city through increased trade. Bo, who is also China’s Commerce Minister, made a pledge to promote clean governance and economic prosperity in the city when he accepted the post. Meanwhile, public feedback via the internet showed that the top priorities Chongqing residents expect from the new secretary are: economic development, harsh punitive actions against corrupt officials, and emphasis on education. Bo’s predecessor, Wang Yang, has been appointed as secretary in Guangdong province.
Full English translation forthcoming
Original article: [Chinese]
True Reform Lies in Breaking Monopolies
Comments, page 15
A new phase of economic reform should focus on removing monopolies in resources and management, argue EO commentators Li Jiping and Kuang Gongping. Only when the two forms of monopolies are removed would a truly market economy populated by law-abiding enterprises emerge.
Original article: [Chinese]
Creative China in London
From Lifestyle, page 41
A new exhibit at the Victoria and Albert Museum this Spring, entitled, China Design Now, will explore the panaply of design trends in China that have blossomed over the past several years. The organizers say the heart of the exhibit lies in the dreams and inner world of Chinese.
