Highlights from the EO print edition, issue no. 351, Jan 21st 2008

Government to Foot Mounting Debts of Universities
Cover Strory
The mounting debts of Chinese higher learning institutions have indirectly been transferred to tax payers as the government steps up budget allocations and subsidies to resolve the matter. As of end of last year, higher learning institutions nationwide had accumulated some 500 billion yuan of loans and interest payments. The loans were taken for expansion projects such as building new campuses and purchasing new facilities that fell outside of government’s yearly budget.
Original article: [Chinese]

Temporary Resident... Forever
Cover, human interest
To many Chinese living in Beijing, no matter how long they have been or how rich they have become from the fruits of their hard work, they remain "aliens" in their own country. These non-native Beijingers need to routinely renew their permits and their right to live here. Even if they live in properties they own, they still need approval letters from residence committees to certify they are “temporary residents” in their own homes.
Original article: [Chinese]

Against Price Controls to Curb Inflation
Cover, Editorial
Our editorial argues against a recent government directive to "freeze" consumer prices to curb inflation. Price stabilization is more than just controlling or setting fixed prices, such intervention on the contrary disturbs market equilibrium. In fact, inflation is a consequence of currency-related problems, which need to be addressed with interest and exchange rate adjustments. In addition, the government can consider providing subsidies to lower income groups to help them better withstand inflation.
Original article: [Chinese]

The "Exclusion" of the Trade Surplus
News, page 4
Despite a mounting trade surplus of some 262 billion dollars, the Chinese government seems to have remained curiously silent on the issue during a major meeting held on Jan 17th. The National Trade and Commerce Committee Meeting, which is held at the beginning of every year to set the course and policies in trade for the rest of the year, has instead focused on risk assessment in anticipation of a declining global economy.
Original article: [Chinese]

Employment Agencies Appeal to National Congress
Nation, page 9
Employment agencies warn that at least 15 million people would lose their jobs and more difficult for fresh graduates to find them in the first place now that the new Labor Contract Law is in effect. The new law limits job placement through the agencies to contracts with a maximum duration of six months, after which, the employers should consider offering full-time staff status to placement candidates. The agencies argue such ruling will kill of the job market that is dependent on fixed terms (between two to three years) and project-based job placements.
Original article: [Chinese]

Communications Bank to Come Out in Force in 2008
Money and Investment, page 17
On January 16th, the Bank of Communications announced its investment of 380 million yuan into the Changshu Rural Commercial Bank, making it the top shareholder at ten percent stake. At almost the same time, it bought a 33 percent stake in China Fortune Securities. Industry insiders say that these two acquisitions are just the beginning of several that the Bank of Communications will see through this year, which is trying to build up a more integrate operational platform.
Original article: [Chinese]

Chinese Made Cars Making Grand Entrance into US Market
Automobile, page 33
Chinese car makers – such as Geely Holding Group, BYD Auto and Chang Feng Motor – have a big presence at the recently concluded 2008 North America Auto Show in Detroit, stirring concerns among local industry players who are already struggling with competition from Japanese cars.
Original article: [Chinese]

Contemporary Chinese Arts Fetching Sky High Prices
Lifestyle, page 51
Last year was an outstanding year for the Chinese contemporary art scene if judged by revenues--many pieces fetched sky-high prices at international auctions. The emerging trend of art collectingg by Chinese is partly fueled by the burgeoning nouveau riche class and market speculation, causing a bubbling art scene not unlike the property and stock market in China.
Original article: [Chinese]

Thirty Years of Reform: Reflections and Hopes
From Observer, page 41
Five essays cover the past three decades of reform, touching on sustainable growth, rule of law, the Chinese constitution, democratic reforms, privatization, and dualism in Chinese society (二元体制).
Original article: [Chinese]