No. 325, July 23(2)

China's Foreign Exchange Investment Company Sets Initial Course 

A report prepared by the China International Capital Corporation and one other body outlining the orgnizational framework for the FEIC has been submitted to the group charged with its establishment. Sources say it suggests financial portfolio investments as the FEIC's main investment direction, and that most investments will be managed by instutional investors selected by FEIC.

Original article: [Chinese] 

Why Does Economic Growth Keep Beating Expectations? 

Fan Wenzhong, deputy director of the research division in the China Banking Regulatory Commission, discusses why the economy is growing at such a high rate. He says that growth is still primarily investment and export driven, but that China's economy should not be simply evaluated as "overheating" because increases in income, improvements in transportation, and rising profits are all positive. The long-term problem lies in growth carried by high polluting industries that consume the most energy. 

Original article: [Chinese]

Watch Out! Economic Adjustments Will be Even More Severe 

In the next half of this year the government will use an array of monetary, fiscal, and administrative policy to control the economic growth, with monetary policy taking center stage. 

Original article: [Chinese]

OECD Report Received by Environmental Watchdog 

On July 17 the OECD presented Beijing with its "China's Environmental Assessment" report. China's State Environmental Protection Administration (SEPA) announced that they would recommend the report to the State Council, and for the first time, directly addressed their contention with the World Bank's recent report, "Cost of Pollution in China". SEPA had previously asked for the deletion of sections in the World Bank report that cited yearly deaths associated with air pollution, calling the data unscientific. 

Original article: [Chinese]