The Root of the Problem is in the System 
Editorial, Cover 
The State Drug Administration should continue to investigate corrupt officials, but more must be done to treat the underlying systemic problems that allow bribery to flourish. Officials with too much power and who operate outside of public view will continue to fall victim to the same temptations that plagued Zheng Xiaoyu, the former head of China's State Food and Drug Administration. He was executed on July 10 after being found guilty for accepting bribes in exchange for pharmaceutical licenses. 

Full article: [Chinese] 

A Risk-taking China Tries Private Equity 
Cover 
Local PE firms are swooping in on deals as they forego the cautious deliberation observed by foreign firms when evaluating local investment targets. Though there are both big winners and losers in the lightning PE game, both Western and Eastern strategies have pros and cons in China: Successful Western firms are making reliable windfalls with their thorough, metered approach, while Chinese firms enjoy valuable cultural sensitivity and ground-level knowledge that open up exclusive, and lucrative, opportunities. 

Article: [Chinese]

Germany Fears “China-Threat” 
Cover 
A letter from Josef Ackermann, chairman of Deutsche Bank, has spurred discussion of the so-called “China Threat” among German lawmakers. The bank warns that the Chinese Foreign Exchange Investment Company, the new body for managing China’s foreign reserve surplus, will become the biggest state-owned equity company in 2015. The German government has begun debating with commercial associations on whether to prevent the investment body from investing in Germany’s lifeline industries. 

Full article: [Chinese]

Foreign Funds Focus on Inflation, FEIC
News, page 2 
The world’s top hedge funds are taking a hard look at both China’s inflation and its new Foreign Exchange Investment Company (see above). Regarding the latter, the funds are specifically interested in the tight-lipped new company's framework, capital, and investment goals.  

Full article: [Chinese]