Highlights from the EO print edition, No. 574, Jun 18, 2012

Real Estate Restrictions at Crossroads
News, page 2
~ The Hunan, Tianjin and Shaanxi provincial Development and Reform Commissions revealed to the EO that they had received a document that expressed the thinking of the central government in relation to existing real-estate restrictions. The document included three suggestions from the National Development and Reform Commission (NDRC); discount interest rates, lower deposits and tax reduction. These were presented as suggestions from the NDRC and local authorities were given room to implement them in accordance with their own situation.
~ The direction to offer discount interest rates on loans has already been preempted by the central bank's announcement of a lowering of interest rates on June 7. The other two points (lowering the minimum down payment required when purchasing a property and reducing the taxes associated with property sales) are yet to receive any clear response from either the China Banking Regulatory Commission or China's Tax Adminstration.
~ According to various real estate agents, at the start of June, housing supply in China began to tighten. One agent explained how "Some potential sellers decided to hold on to their property, on expectations that perhaps the government would relax real-estate restrictions by either lowering interest rates or through tax policy, which would like drive prices up."
~ An tax official in Beijing said, this year it won’t launch such policy [real estate tax cutting], at least there won’t be any such moves before the 18th National Congress of the Communist Party. A tax official in Nanjing also said it was almost impossible that property taxes would either be reduced or removed.
Original article: [Chinese]

China To Commit 60 Billion Yuan to Tackling Soil Pollution
News, page 3
~ During the current five-year-plan, which runs through 2015, the central government plans to spend 59.5 billion yuan to treat pollution caused by heavy metals and a further 40 billion will be invested to prevent such pollution. The Ministry of Environmental Protection will publish its policies on soil pollution in the second half of 2012.
~ Industrial accidents are common and reports have said that a fifth of the country’s agricultural land is polluted.
~ China currently has no laws covering the prevention or treatment of land pollution, and there are no national standards for monitoring, investigating and rectifying soil pollution.
~ Aside from the environment ministry’s measures, the Ministry of Finance and the National Development and Reform Commission (NDRC) will also provide subsidies and allowances for farmers and urban institutions to treat pollutants.
Original article: [Chinese]
 
China's Crowded Ports
News, page 7
~ Commodities are piling up at Chinese ports, the situation has already become the norm in many of the country's northern ports. The situation is particularly severe in relation to the amount of coal and iron ore being stored at the ports.
~ The latest data revealed that 9.31 million tons of coal was being stored at Qinhuangdao port (秦皇岛港) on June 13.
~ A shipping expert named Chen Yi (陈弋) explained that recent rains has led to lower levels of thermal power generation, which had in turn reduced the demand for coal.
~ Wang Zhe (王喆), an analyst, believes that the pile-up of commodities at Chinese ports is related to the macroeconomic environment. On the one hand, the demand is not strong; on the other hand the supply has also increased. It has to do with both aspects.
~ Liu Jinhe (刘金贺), a macroeconomic researcher, believes that the current situation and the reduction in power consumption is a reflection of the downturn in manufacturing. Liu also said that there is a certain amount of overcapacity in the economy.
Original article: [Chinese]

Lessons in How to Lobby the NDRC
Nation, Page 9
~ Following the State Council’s publication of a series of policies aimed at propping up GDP growth, local governments are rushing to the capital to seek approval for investment in their pet projects.
~ One man working for the investment department of a local branch of the National Development and Reform Commission told the EO how he had got central government approval for his projects.
~ As well as lavishing local specialties on the Beijing officials and giving them gold souvenirs worth around 2,000 yuan, the man needed to maintain relations with central officials stationed in his hometown.
~ If these "successful men" are willing to say "Hello!" on his behalf to the NDRC officials in Beijing, then the man can get the approval of his project fast-tracked.
~ This man, whose real name wasn’t given in the EO report, isn’t the only person trying to win favors from the NDRC in Beijing. It is days since there was a space at the elite dining room in Xiangeqing, a famous restaurant beside the commission’s head office.
~ So far, 1,263 projects have reportedly been approved by the NDRC, and more than 100 of them, mostly involving clean energy, were approved on a single day in May.
~ The NDRC said in March that central government investments would total 402.6 billion yuan this year, up 20 billion yuan from 2011.
Original article: [Chinese]