Highlights from the print edition, issue no. 411 March 23 2009

Little Wiggle Room for China's Reserves
Cover story
A key report by a Ministry-backed research institute has been circulated to policymakers, suggesting that China has little room for flexibility with its foreign exchange reserves. And, in the event of hot money pouring out of China and a devaluation of the yuan, the reserves' liquidity could get even tenser. Such a liquidity crisis in the reserves could lead to the underselling of long-term US bonds, and the suffering of significant losses. Of the over US 1.9 trillion dollars in reserves, the report said that only 300 to 500 billion dollars in the reserves were liquid, and it advocated they be used to support Chinese firms "heading abroad". It refuted the idea that the reserves should be used on a mass scale--either to scoop up ailing foreign firms or to be given back to Chinese--saying that to do so would jeopardize the reserve's liquidity.
Original article: [Chinese]

Cautious Officials Ready to Loosen More Stimulus Funds
News, page 3
An official from the National Reform and Development Commission told the EO that more economic stimulus policies have been prepared, but that policymakers were in no hurry to use them, and would first wait to see first quarter data for 2009. The source confirmed that many macro-economic policymakers still held the stance that China had yet to touch bottom. Despite good signs in January and February in response to other stimulus measures, the source said there were troubling signs elsewhere, such as in the steel and real estate industries.
Original article: [Chinese]

China's SARS Hero Back From Top Two Political Sessions
Nation, page 9
Zhong Nanshan, president of the Guangzhou Respiratory Disease Institute and star delegate to the National People's Congress, returned from the top two political sessions concluded on March 13th to a mountain of work. As an early hero in China's combat with SARS, Zhong was not only a delegate, but also a professor, hospital president, and most importantly, an uncompromising doctor, whose schedule was heavily backed up after the Beijing sessions.
Original article: [Chinese]

The "Commander of Migrant Workers" Even More Hectic
Nation, page 10
As the president of Quanshun Human Resource Corporation in Shenzhen, Zhang Quanshou created a series of "Quanshou models" for transfer of rural labor force, and crowned himself the "commander of migrant workers". However, the financial tsunami submerged his labor force plans of 2008. Despite plummeting demand for his workers, the lack of technical personnel appeared to be the most serious problem for Zhang, who believed the economy could be revived by May.
Original article: [Chinese]

The Vendor in Chongqing
Nation, page 13
Before 2006, street hawkers were a common sight in Chongqing city. Decked out with shoulder poles, bamboo crates loaded with wares, they clacked drums and peddled shoe pads, socks, nail-clippers, ear picks and other goods. But the municipal government decided such business was hurting the city's image and banned them. Unfazed, many vendors played a game of cat and mouse with law enforcement in order to keep selling. In light of this, since late 2006 the government began to gradually legalize and regulate the trade. Since the financial crisis set in last October, more and more jobless migrant workers and recently unemployed have turned to making a living by peddling the streets of Chongqing.
Original article: [Chinese]