No. 345, Dec. 10(3)

Fuel Shortages Stem from Crude Oil Supply Monopoly
Nation, page 9
Chinese oil refineries have long complained about monopolies in the country’s crude oil supply, which they view as the source of the fuel shortages that have ripped through the market in rececnt months. Refineries depend on oil giants like Sinopec both for raw material supplies and as channels for sales of their processed oil products. However, resentment against Sinopec for charging high supply prices and sales service charges, has led some refineries to adopt uncooperative attitudes by under-delivering products. In response, Sinochem has cut and limited supply to refineries under a strict “crude oil quota plan”. Recently, however, Sinopec has relaxed the restrictions and delivered 500,000 tons of extra supply to refineries in Shandong to ease acute fuel shortage in the province.
Full English translation forthcoming
Original article: [Chinese]

Shenzhen’s Chaotic Public Transport Reform
Nation, page 11
A public transportation reform in Shenzhen meant to cut costs has actually increased bus fares. Besides public outcry over the fare bump, some transport workers staged a walk-out on December 3^rd for some hours over what they called a confusing fare structure based on travel distance. Workers claimed they were under stress to work out the various mathematical formulas for the right fares and in constant fear of having to foot the price of miscalculations.
Original article: [Chinese]

Beijing Emphasizes the Third Industry
Nation, page 12
The Beijing local government has recently named Zhongguancun district as the leading base for creative, digital entertainment and new media industries in an effort to encourage foreign investment, which has deserted the capital in recent years. Statistics reveal that the ratio of foreign investment for manufacturing projects has dropped against the service sector. Market watchers believe that Beijing is re-orientating itself in three manners: transforming from a production base to a service center, phasing out low-end productios while retaining high-end manufacturing, and developing headquarters and managerial centers.
Original article: [Chinese]