Shift in Macroeconomic Focus
Cover, lead story
~ Although realising the goal of 8% GDP growth has been difficult, China now faces an even tougher challenge - ensuring GDP growth without further harming its increasingly fragile natural environment.
~ The Ministry of Environmental Protection's recent move to suspend construction of the Jinsha River hydroelectric dam, is a clear sign that the government is paying more attention to environmental protection.
~ Aside from a greater concern with environmental sustainability, the new macroeconomic focus is also aimed at reducing excess capacity and upgrading industrial technology in China.
Original Article: [Chinese]

Yang Rong: I Want to Come Home
Cover, second lead
~ Yang Rong is a former chairman of the board at Brilliance Auto Group who fled to the US to avoid a lawsuit brought by the Liaoning provincial government in 2002.
~ He has revealed to EO plans to set up two new auto companies simultaneously in US and China.
~ He told the EO that during the first phase of his project, he plans to invest between 40 and 45 billion yuan in China to build a production base capable of manufacturing three million auto engines and one million automobiles. The first car would be expected to come on to the market in 2012.
~ He also revealed that his working teams were already involved in discussions with at least five local governments in relation to where the project would be located.
Original Article: [Chinese]

Fiscal Revenue Up on Back of Soaring Non-tax Receipts
News, page 3
~ In May, China's registered the first positive year-on-year growth in fiscal revenue this year.
~ The growth is revenue was largely a result of a surge in non-tax revenue.
~ According to China's Ministry of Finance, the national fiscal revenues in May were up 4.8% on last year. Of that figure, non-tax revenues in May rose 130%, while tax revenues dropped 3.1%.
Original Article: [Chinese]

Fuel Price Reform Hits Jobs
News, Page 4
~ The recent reform of the tax and pricing mechanisms that apply to fuel and other petroleum products has not only affected government and oil companies' ability to collect revenue, it's also put the future of 200,000 highway toll collectors around China in jeopardy.
~ With only 12,500 road toll collectors being allowed to transfer to work in civil service, the other 180,000 employees face an uncertain future according to the Ministry of Human Resource and Social Security.
Original Article: [Chinese]

China to Fight WTO Case brought by EU and America
News, page 4
~ On June 23, the European Union and the US both requested World Trade Organization (WTO) action over Chinese export restrictions on raw materials used by the steel, aluminium and chemical industries.
And China, familiar with WTO rules and rich in multi-lateral negotiation experience, is ready to fight back.
~ According to Mei Xinyu, an associate research fellow with the Ministry of Commerce, the US and EU have little chance of forcing any concessions.
~ The Ministry of Commerce has claimed that the restrictions on certain product exports are meant to protect the environment and the country's natural resources and argues that the policy complies with WTO regulations.
Original Article: [Chinese]

China Fine-tunes Monetary Policy
News, page 5
~ With the amount of new loans issued each month exceeding forecasts, market expectations of the total amount of loans expected to be issued this year, continue to rise.
~ In response, China's banking watchdog has begun to fine-tune monetary policy.
~ On June 24, China's Banking Regulatory Commission (CBRC) issued a directive to strengthen supervision of bank lending.
~ According to the directive, banks are restricted from issuing large amounts of additional loans at the end of each month.
~ To stop banks from over-lending, CBRC has also required them to strengthen credit management and ensure that credit is directed into the real economy instead of flowing into stock market.
~ According to announcements from China's central bank, it will continue to adhere to a relatively loose monetary policy over the next six months, but would pay greater attention to make sure new loans were being issued rationally.
Original Article: [Chinese]

Personal Finance Facing Stricter Regulation
Market, page 20
~ The China Banking Regulatory Commission is planning to introduce stricter rules in relation to regulating personal finance.
~ They are contemplating restricting access to risky financial products like investments in private equities, funds and the stock market.
~ Furthermore, all commercial banks will be required to take measures to lower the rate of risk of their personal finance products.
Original Article: [Chinese]