Focus

August 10， 2013

An estimated 10，000 people participated in the five-kilometer Color Run at the Beijing International Garden Expo park in Beijing. The occasion marked the first time China has hosted the event.

“Today Chinas finance sector is in a similar situation to that of Japan in the late 1980s， when bank credit grew rapidly and real estate prices ballooned. In real economy， demographic changes and the end of the export-driven growth era are the main contributors to a structural slowdown，” said Zhu Haibin， chief China economist at JP Morgan Chase & Co.

Mr. Zhu said that if restructuring doesnt succeed， China will develop the “Japan syndrome，” symptoms of which include a prolonged credit crunch and economic stagnation. Zhu also pointed out key differences between the situation in China now and that of Japan in the 1980s， and suggested China recalibrate its economic structure through technical innovation-based industrial upgrading and more regionally balanced growth.

“No delegate at this meeting believes the Chinese economy is on its way to a hard landing. Such a view， trumpeted by some domestic economists， is self-belittling，” Chinese Finance Minister Lou Jiwei said during the G20 Finance Ministers and Central Bank GovernorsMeeting， held in Moscow last July.

Minister Lou stressed that although Chinas GDP growth has slowed， its new employment has been stronger than in 2012， and the service industry has enjoyed brisk development and greater investment. These are good signs for the Chinese economy. In response to certain countries expectations that faster Chinese growth is needed to buoy global economic recovery， Lou remarked， “Everyone has to do his own homework.”

On Chinese media

China Economic Weekly

Issue No. 27， published on July 15， 2013

Henry Kissinger on China Again

On June 26， former U.S. secretary of state Henry Kissinger visited the Temple of Heaven with his daughter-in-law and grandson. It was his 15th visit to the temple out of 80 or more trips to Beijing.

The last time was in 2008 on the day of the opening of the Beijing Olympics. During that tour， Mr. Kissinger said more than once how fond he was of the place. He wrote in the guestbook that a country with a great past will surely have a bright future.

Forty-two years have passed since July 9， 1971 when Mr. Kissinger reopened the door between China and the U.S. during his secret trip to China. The 90-year-old still travels often between China and the U.S. and feels at home in the country that was once a beautiful but mysterious place to him.

“China is the country with which I deal most consistently and most deeply， so China has become a very important part of my life， and my Chinese friends mean a great deal to me，” said Mr. Kissinger.

In 2011， then 88-year-old Kissinger published his book On China， in which he expresses his approval of the Chinese characteristics. This year， this venerable statesman， who knows four generations of Chinese leaders， visited China again and shared his views on Sino-American relations： “I have always believed that a new type of interpower relationship between China and the U.S. should be established. Although it is difficult， the leaders of both countries should shoulder the responsibility to achieve it.”

Comparing the Chinese dream and the American dream， Mr. Kissinger said that the Americans pursue improvement in standards of living and believe tomorrow will be better. However， the Chinese people have suffered great pain and difficulties in the past 150 to 200 years； therefore， it is important to foster the concept of the Chinese dream. Both the American dream and the Chinese dream share the same vision： a more peaceful， prosperous and cooperative world.

Economy & Nation Weekly

Issue No. 15， published on July 22， 2013

Establishing Private Banks

The Guiding Opinions of the General Office of the State Council on Financial Support to Economic Restructuring， Transformation and Upgrading released in early July is making the dream of establishing private banks come true.

The central government has emphasized this year that efforts should be made to let financial institutions support the development of real economy， promote stable growth， adjust the structure and boost reform in order to fulfill this years major tasks of economic and social development. However， the monopoly in the current Chinese financial system is hindering credit-starved real economies from getting loans. Big loans are circulated within the financial system for shadow-banking products that pursue high leverage ratios and risks. Loans are also poured into sectors of low-efficiency and overcapacity， and government projects.

The trial of establishing private banks with private capital is a bold move to break the monopoly and restraints of the financial circle. The era of large scale， private capital in the financial sector is upon us.

Caijing

Issue No. 20， published on July 15， 2013

Rebuild Teleservice

The internet， one of the greatest inventions ever， is gradually changing every industry. It has exerted huge influence on the financial sector， and it can be said that the retail industry is on the verge of collapse under the impact of e-commerce. Today， even the traditional telecommunications sector is also feeling the pressure of competition.

The challengers to traditional Chinese teleservice providers are not their overseas counterparts， but domestic internet companies such as Tencent and Alibaba. Those companies do not operate a telecommunications network， but enjoy much higher profits compared with traditional telecommunications operators.

Internet companies are gradually marginalizing telecommunications operators. Although the latter have responded to the challenge， they have achieved few gains. The reason behind this is probably more about their internal systems than technology.

The only way to save the telecommunications operators is to rebuild teleservice. After the government makes a decision to stop protecting monopolies， the mobile virtual network operator will surely be able to share the market with traditional telecommunications operators.

SWeekly

Issue No. 27， published on July 22， 2013

Avoid Being “Leftover”in the Job Market

There is a popular nickname on the internet for college undergraduates who have not found jobs -- the “leftover.” Students understand that if they cannot rely on their parents connections to get a job， it will be extremely difficult for them to stand out among nearly 7 million competitors on the job market. They need not only knowledge， but also craft and courage.

Some college undergraduates blaze a trail -- they dont follow the beaten path to employment in enterprises， but seek other opportunities by relying on their wits. Some sell hand-made shoes on Taobao； others make leather products， and still others run tailoring businesses. They build up their trades by relying on new technology， and embody the entrepreneurship of the new era.

Outlook Weekly

Issue No. 28， published on July 25， 2013

Policy in Xinjiang

The recent terrorist attacks in Xinjiang have once again raised the question of how to enforce policy in Xinjiang.

In the years following the Urumqi July 5 Incident in 2009， Xinjiangs economy developed in leaps and bounds. However， separatist forces inside and outside China have increased their activities， so the problem affecting the social stability of Xinjiang has not yet been solved.

Since the spring of 2013， a spate of terrorist attacks has hit the region. Although the attacks were plotted and carried out by a handful of criminals， they have greatly affected the lives， assets and safety of people in Xinjiang.

These terrorists， acting against humanity and society， are a common enemy of the world. The Chinese government insists on cracking down on terrorism， while at the same time adopting more effective and forceful measures to cement the foundation of economic development， adjust the relation between resources and benefits and alleviate conflicts among different social groups.

The stable development of Xinjiang benefits not only the Xinjiang people， but also the people around the nation.

Exchanges

V ice President Li Yuanchao Meets with K im J ong-un

On July 25， Vice President Li Yuanchao visited North Korea to attend the 60th anniversary of the Korean War armistice， and met with Kim Jong-un， first chairman of the National Defense Commission of the DPRK. Li first conveyed a message from President Xi Jinping to Kim. Li said the aim of commemorating the 60th anniversary of the Korean War armistice was to pay tribute to the sons and daughters of China and North Korea who fell safeguarding their home countries. Looking back at history， the peace we are enjoying today was hard won and should be cherished. He said that as a close neighbor， China insists on denuclearization and safeguarding peace and stability on the peninsula， and adheres to resolving related issues through dialogue. Kim said the Workers Party of Korea and the people of the DPRK would never forget martyrs sacrifices during the war. The DPRK is committed to developing economy and improving peoples livelihood， which demands a stable external environment. The DPRK supports Chinas efforts to restart the six-party talks， and is willing to make efforts with all parties to safeguard peace and stability on the peninsula.

Chinese Auditor General Liu J iayi Awarded by the UN

On July 24， Chinese Auditor General Liu Jiayi was awarded a United Nations Peace Prize in recognition of his leadership of the UN audit team and his contribution to world peace through audit work for UN peacekeeping operations. Established in 1946， the United Nations Board of Auditors comprises the heads of the Supreme Audit Institutions from three member states and is responsible for external audit supervision of United Nations agencies， programs and funds. China was elected a member of the Board in 2007. Since 2008， to fulfill UN audit functions， China has been responsible for auditing UN peacekeeping operations， including 19 agencies and projects， and their branches around the world. The Chinese National Audit Office selected and trained over 200 outstanding officers for the UN auditing actions. As of July 2013， the auditing team had carried out six audits of UN peacekeeping operations， which were praised by the UN Assembly， member countries， the Peacekeeping Operations Headquarters and the missions.

HK Dragon Boat Festival“Eye-painting” Ceremony in Times Square

On July 25， the New York Hong Kong Dragon Boat Festival organizers held an“eye-painting” ceremony in Times Square， to promote the festival， held in Queens from August 10 to 11. The ceremony is a traditional warmup for the festival， but this was the first time it was held in Times Square. New York City Comptroller John Liu and Anita Chan， director of the Hong Kong Economic and Trade Office， New York， used red paint to color the pupils of dragons eyes. Liu said the dragon boat festival is a great cultural tradition， while Times Square represents cultural diversity， so the combination of the two is symbolic. The New York Hong Kong Dragon Boat Festival is one of the biggest summer water sports held in New York. This year 2，500 participants in 180 teams from the U.S. and Canada， including teams from many U.S. companies and governmental organizations， participated. Those attending experienced Chinese-style shows， calligraphy， painting， papercutting and cuisine.

10 Million Households

A meeting of the State Council adopted a decision to renovate houses for 10 million households in rundown areas across China over the next five years. Of the total， 3.04 million households are scheduled to be serviced within the year. The program was initiated in parts of China including Liaoning Province in 2004， and was extended nationwide in 2008. By the end of 2012， it had significantly improved the living conditions of 10 million households.

7.25 Million Jobs

In the first half of this year urban China saw a 7.25 million net gain in employment， 310，000 more than the figure for the same period in 2012. Despite pressure from slowing economic growth， the employment situation has remained stable this year. The anomaly was attributed to strong growth in the tertiary industries， whose share in the Chinese GDP rose to 45.3 percent by the end of June， up 1.6 percent over the same period of 2012， a big increase compared to recent years. Added value in the service sector grew by 8.3 percent， 0.7 percent higher than the secondary industries.

RMB 22.87 Billion

Sinopec plans to launch 803 environmental protection projects from 2013 to 2015 with a total investment of RMB 22.87 billion， the largest by any Chinese company. The projects will focus on emission reduction， facility renovation to improve waste treatment standards， testing and control of volatile organic compounds， odor mitigation， and prevention and control of environmental risks.

7.2 Million Tons

A forecast by SCI99.com estimates Chinas corn import this year will top 7.2 million tons， of which 80 percent will be genetically modified （GM）. According to Xu Xiaomiao， a SCI99 analyst， the majority of Chinas corn imports come from the U.S.， of which 95 percent is genetically modified. However， 90 percent or more of genetically modified corn imports are used in livestock feed， and little makes it to the retail market.

2013 Sino-Russian J uvenile Games Open

On July 11， the 2013 Sino-Russian Juvenile Games opened at Shanghai Nanyang Model Middle School. The sixday games are the only sports activity of the “national year” held respectively in China and Russia. Players， aged from 15 to 18 years， competed in 11 events such as basketball， table tennis， swimming and gymnastics. Russia sent a delegation of 147 people. Participants also had the opportunity to take part in cultural activities， such as Chinese painting， painting facial masks， Chinese calligraphy， and Chinese knot weaving during the games. The games are held in China and Russia in turn. The last four games were held respectively in Tianjin， Moscow， Beijing and Penza. On the same day， the 13th session of the Sports Sub-committee of the China-Russia Cooperation Committee on Education， Culture， Health and Sports was held in Shanghai. Feng Jianzhong， deputy director of the General Administration of Sports， and Russian Deputy Minister of Sports Pavel Kolobkov co-chaired the meeting. Both parties exchanged views on a range of issues such as the current situation and prospects of Chinese and Russian sports， enhancing cooperation in sports science and research， and boosting practical cooperation on the Sochi Winter Olympics and the Sixth Sino-Russian Juvenile Games.

Earliest Chinese Writing Found

New archaeological findings suggest that primitive inscriptions in China could date back about 5，000 years –1，400 years earlier than the writings found on oracle bones. These inscriptions were found on 240-odd artifacts unearthed from the Neolithic Zhuangqiaofen site in Pinghu， Zhejiang Province. Archaeologists are divided on whether the engravings are words or something simpler， but all agree that the discovery will shed light on the origins of Chinese language and culture. Most Chinese archeologists and experts on ancient writing believe the inscriptions do not evidence a developed writing system. However， leading archaeologist Xu Xinmin asserts that there is evidence of words on two stone axes. One has six word-like signs in a line resembling a short sentence. “They differ from the symbols we have seen before on artifacts，” Xu explained. “The specific shapes， and the fact that they appear in a sentence-like pattern， indicate that they form an expression of some meaning.”For now， Chinese scholars are calling the markings primitive writing， a vague term that classifies the find somewhere between symbols and words.

Asia Lags in Innovation

According to a recent study by Cornell University， French business school INSEAD and the World Intellectual Property Organization， no Asian countries were among the top five most innovative economies in the world. The Global Innovation Index （GII） 2013 showed Southeast Asia trailing Europe and North America in a comprehensive report covering 142 economies. The study examined 84 factors including university performance， infrastructure， institutions and venture capital. Compared to North America and Europe， Asian economies averaged weaker institutions， human capital and research. Hong Kong ranked the top Asian economy in the study at 7th， with Singapore at 8th， down from 3rd in 2012. The Global Innovation Index， now in its sixth edition， recognizes the key role of innovation as a driver of economic growth and prosperity and acknowledges the need for a broad horizontal innovative vision which is applicable to both developed and emerging economies.

Schooling for All Disabled Children

According to data from the Ministry of Education， China had 1，853 schools for special education in 2012， serving 378，800 students and employing 43，700 teachers. About 72.1 percent of children with disabilities are receiving compulsory education， up nearly 10 percent from 2008. China will soon kick off a program to ensure compulsory education for all disabled children， primarily targeting 80，000 who have registered with local educational authorities. In 2008， China launched its largest plan ever to build special education schools. Over the following four years RMB 5.4 billion was allocated to build and expand 1，182 such schools in central and western China. Meanwhile， central budget subsidies for special education have increased every year， from RMB 15 million in 2008 to RMB 50 million in 2012. The funds are earmarked for improving teaching conditions for disabled children in central and western provinces.

Cities Besieged by Garbage

Peoples Daily recently reported that Beijing alone produces 18，400 tons of waste daily， and that the annual total has been increasing at eight percent over recent years. The daily figure sits at 20，000 tons in Shanghai and 18，000 tons in Guangzhou. According to the Ministry of Housing and Urban-Rural Development， a third of Chinese cities are besieged by saturated landfills and massive trash heaps. The problem is largely attributed to insufficient waste disposal capacity. In Beijing， for instance， the designed capacity is 10，300 tons per day， leaving a gap of 8，000 tons. A study by the China Association of Environmental Protection Industry found that in 2011， 91.1 percent of urban waste from Chinas 657 cities was treated， 21.1 percent of which ended up in open field or landfills. The total urban waste for the year was 164 million tons， meaning nearly 50 million tons of trash was not treated.

NCPA Production Un Ballo in Maschera

Date： September 5 – 8， 2013

Place： National Center for Performance Art Price： VIP/ RMB 680/600/550/380/280/100

Un Ballo in Maschera， or A Masked Ball， is a three-act opera by Italian composer Giuseppe Verdi. It is one of his three masterpieces， together with the Force of Destiny and Don Carlos. Verdi wrote A Masked Ball at the peak of his genius. Containing many classical arias， it elevates romantic opera to an artistic culmination. The opera achieves true excellence by virtue of its dramatic content and musical virtuosity. The NCPA invited internationally celebrated director Hugo De Ana and his world-class team to produce the opera. De Ana has cooperated with the world famous La Scala， Rossini Opera House and Verona Opera House in productions that have won him international acclaim.

Saxophone Concert 2013– The Kenny G China Tour

Date： September 20， 2013

Place： Shanghai Oriental Art Center

Price： VIP/

RMB 1080/880/680/480/280/180/80

Born in 1956 in Seattle， Kenny G is one the most popular contemporary jazz musicians today， having sold more than 75 million albums， singles and music videos. His best-selling single Songbird， released in 1987， elevated the saxophone from a supporting instrument to a solo best seller. Pop music fans are now sold on Kenny Gs highkey saxophone strains that evoke romantic sadness and joy. Superstars like the late Frank Sinatra， Barbra Streisand and Celine Dion have all commissioned him to write songs featuring saxophone solos. Kenny Gs many awards include a Grammy and an American Music Award. September marks his return visit to Shanghai after five years. He insisted on a small venue for better interaction with the audience.

Economy

Foreign Investment Capital Focused on Real Estate， Distribution Service Industry in First Half of 2013

On July 25， Vice Director of the Foreign Investment Department of the Ministry of Commerce Cao Hongying remarked at a press conference for the 17th China International Fair for Investment and Trade that in the first half of this year， China had put to use US $61.984 billion of foreign capital， a year-on-year increase of 4.9 percent. Foreign investment inflows have risen steadily.

There were major investments from the EU， the US and Japan. Though fewer new companies were registered， total inflows rose.

According to statistics， Chinas eastern regions attracted the most foreign investment， accounting for 82.56 percent of the national total. Foreign investment in the central and western regions of the country has dramatically increased， registering a rise of 32.54 percent. Meanwhile， foreign investment has focused on real estate and the distribution service industry.

The Chinese government has emphasized improving the countrys investment environment， and hopes to see companies moving inland – rather than overseas – as they expand their business.

London-based Liquor Giant Diageo Purchases Chinas Swellfun

Diageo， Britains largest liquor company， has revealed that Chinas Ministry of Commerce has approved its intended acquisition of a 47 percent stake in Swellfun Co.， Ltd.， owned by Quanxing Group of Chengdu， Sichuan Province. The deal is worth GBP 233 million. Diageo will become the single larg- est shareholder in the Chinese baijiu （liquor） brand Shui Jing Fang.

Chinas high-end liquor market has grown to be one of the largest – and fastest growing– alcoholic beverage markets in the world. Diageos sales in China are bested by Pernod Ricard and Hennessy. Analysts say the companys acquisition of Swellfun is aimed at winning the Chinese market and breaking through a bottleneck in its development.

Chinese Amphibian Aircraft Makes Maiden Flight

The first China-made amphibian aircraft， Haiou 300， completed its maiden flight in Jingmen City， central Chinas Hubei Province， on July 17.

The amphibian aircraft， developed by China Special Vehicle Research Institute， is Chinas first， with independent intellectual property rights.

At 8.9 meters long and 12.46 meters wide， the aircraft can achieve a cruising speed of 231 kilometers per hour and take off and land on both water and land.

With a maximum take-off weight of 1，680 kg and passenger capacity of four to six， the aircraft can be used for business flights， tourism， coastal patrols， search and rescue， environmental monitoring， and forestry conservation.

The airplane had its first test flight in August 2010 and was part of Airshow China in Zhuhai in November 2010.

Sino-U.S. Scientists Sequence Mongolian Genome

Scientists from China and the U.S. have finished sequencing the genome of the Mongol population living in Qinghai Province. The sequencing and drafting of the genome was published on July 18 in the science journal PLoS Genetics.

Researchers from the Medical College of Qinghai University and the University of Utah spent four years sequencing the genome. They studied 42 Mongolian adults living at an altitude of 3，000 meters and above and compared them with 300 people from nine different populations elsewhere in Asia and Europe.

More than 300 genes， or two percent of the genome， varied greatly from those of other populations. This will help the Mongolian population weather the regions harsh plateau environment， said Gerili， director of the Research Center for High Altitude Medicine at Qinghai University.

The findings will aid in understanding the human bodys low-oxygen response system and help researchers find new ways to prevent and treat high-altitude sickness and other illnesses that occur in low-oxygen environments， Gerili said.

More Flexibility in Lending Interest Rates

Chinas central bank announced on July 20 long-awaited reforms to liberate the countrys interest rate regime by removing all controls on lending interest rates in a move to reduce financing costs of companies and stimulate the slowing economy.

The Peoples Bank of China （PBC） said in a statement on July 20 it would scrap the floor limit for the interest rate that banks charge customers on loans. That on the lending interest rate was previously set at 70 percent of the benchmark rate. Financial institutions are now free to set lending interest rates according to market demand and supply. Controls on the rate of discounted bills and the ceiling for rural bank lending are also to be eliminated. Controls on interest rates for personal housing loans will not be lifted for the time being.

Considering the cost of capital and other factors， there is little room to maneuver downwards for lending interest rates. In the long term， big banks have the scale to attract customers with lower interest rates， while small and mediumsized financial institutions need to innovate their micro and small business-oriented services.

Agreement between China and the EU on Price of Photovoltaic Products

EU Trade Commissioner Karel De Gucht announced that after weeks of tough negotiations， the EU has achieved a satisfactory price agreement on imports of Chinas photovoltaic products.

A joint declaration on a pricing agreement has been signed by the China Chamber of Commerce for Import & Export of Machinery& Electronic Products （CCCME）， the Chinese Renewable Energy Society （CRES）， the Chamber of New Energy Commerce of China（CNECC）， the Chinese Renewable Energy Industries Association （CREIA） and the China Photovoltaic Industry Alliance （CPIA）. Ninetyfive Chinese enterprises participated in negotiations and the final result has been agreed upon by most of the companies. Under the agreement， China is to continue its exports to the European Union and should maintain a reasonable market share. A final pricing schedule for exports is yet to be released. Market research is still being conducted on export quotas for domestic companies.

Sacsaoul Forest Designated National Nature Reserve

A sacsaoul forest on the QinghaiTibet Plateau has been designated a national nature reserve. “The 370，000-hectare forest plays a primary role in stabilizing the ecosystem of the desert in Qinghai Provinces Qaidam Basin，”said Zheng Ze， the forestry and animal protection chief in Haixi Mongol and Tibetan Autonomous Prefecture， Qinghai. Studies show the sacsaoul efficiently slows wind， blocking sand and improving moisture. Qaidam Basin， covering an area of 258，000 square kilometers， contains rich reserves of oil， natural gas and metals.

China Furthers Uranium Mine Drilling Depth

Chinas largest atomic energy developer said on July 17 that it has achieved a record drilling depth of 2，818.88 meters in uranium mining， greatly advancing the countrys uranium prospecting capability.

China National Nuclear Corp. （CNNC） announced the technological breakthrough in uranium resource-rich Fuzhou City in eastern Chinas Jiangxi Province. Chinas uranium prospecting has typically been carried out at depths less than 500 meters. The previous record drilling depth was 1，200 meters.

The new drilling technology will boost Chinas domestic uranium supplies and ensure the key energy source for developing nuclear power generation.

The company has independently developed drilling equipment and hyperspectral identification technology to facilitate uranium exploration.

The firm independently designed Chinas first nuclear power plant – Qinshan Nuclear Power Plant – which has operated safely for 22 years since it went into production in 1991.

Cool Gadgets

Chameleon Bandage

Unless youre an American rapper named“Nelly，” you probably dont like everyone to see the bandage youve just applied to your cut， nick or other wounds. Inspired by everyones favorite clade of lizards， the Chameleon Bandage changes color when applied to match your skin tone. Its neat trick to hide your cut and avoid the “Oh， what happened？” conversation.

Levitating Wireless Computer Mouse

Russian designer Vadim Kibardin put his genius to solving a problem that bothers many modern office workers. Sitting at a computer day-in day-out isnt good for your wrists， and can lead to early onset carpal tunnel syndrome. Kibardins solution is novel： he developed the “BAT，” a levitating wireless computer mouse. It comprises a floating navigator and a magnetic base ring. The mouse elevates the hand to an ergonomic position， thus eliminating numbness， tingling and muscle damage in the fingers. Back this up with an ergonomic keyboard and youre home free.

The Man Ring

Jewelry doesnt have to be pretty. It can also be useful. The Man Ring is made of aircraft-grade titanium， and contains five tools. It has a working bottle opener， a straight blade perfect for tape and wire cutting， a serrated blade for tougher things like nylon strapping， and even a miniature saw. Oh， and a comb to straighten up after all that man work.