FOCUS

May 12， 2013

Local people in Yingxiu Town gather at the cemetery to mourn family members and friends killed in the Wenchuan earthquake fi ve years ago.

May 12， 2013

A birthday party for 105 children born in 2008 held in Shifang City， among the worst hit places in the quake， is one of several activities to commemorate the fi fth anniversary of the Wenchuan earthquake.

Voices

“In order to further reform and structural adjustment， we must sacrifi ce short-term economic growth. Although the global economic slowdown has affected China， generally speaking， the Chinese economy is in sound shape. The governments target for 2013 GDP growth is 7.5 percent， and we registered 7.7 percent in the fi rst quarter. Things are going as expected.”

Zhou Xiaochuan， governor of the Peoples Bank of China， made the remarks during a speech on trends in the Chinese economy at an IMF meeting held in Washington D.C. Zhou said the Chinese government would continue to be a sound manager of the countrys macroeconomic fundamentals， and stimulate growth while stabilizing prices. Meanwhile， he called upon countries to ratify the Funds 2010 quota and governance structure reforms without delay， and hoped to see the completion of the 15th General Review of Quotas by January 2014 in order to enhance the voice and representation of emerging markets and developing countries in the international body.

“In recent years， as Chinas rapid economic development and rising international status have coincided with the on-going European debt crisis， European countries， including France， have increasingly relied on China for support in pursuing their geopolitical and economic interests. However， they have also shown ambivalence towards the Asian powers rise， as is refl ected in the number of confl icting policies they have rolled out with regards to China，”

said Wang Yi， director of the Global Governance Research Center at the China Institute of International Studies and former political counselor with the Chinese embassy in France. This year marks the 10th anniversary of the China-EU comprehensive strategic partnership. Next year will mark the 50th anniversary of diplomatic relations between China and France and the 10th anniversary of the establishment of the comprehensive strategic partnership between the two countries. Wang Yi argues that China and Europe， as two important global players， can and should be a critical force for positive change. High-level talks and various multi-level exchanges between governments and the two peoples should help personalize relations and foster the continued development of the China-EU and Sino-French strategic partnerships.

On Chinese Media

Xinmin Weekly

Issue No. 16， 2013， published on April 24， 2013

From Wenchuan to Yaan， Are We Progressing？

No matter today or 2，000 years ago， tragedies have always spurred people and the countries they live in to not only survive， but also to better themselves. In the China of the present， Sichuan Province has seen more tragedies than most.

In 2008， the May 12 earthquakes resulted in more than 80，000 fatalities or missing people. Though it only took two years to repair the physical damage from the disaster， the trauma experienced by those who have survived cannot be healed so easily.

Five years passed. On April 20， 2013， along the same Longmanshan fault zone and only 85 km from Wenchuan， another earthquake of 7.0 magnitude occurred.

Fortunately， this time the damage was not as great as that of 2008. The earthquake measured lower on the Richter scale， and there were fewer casualties. But since both earthquakes occurred in Sichuan Province， they have been constantly compared. By all accounts， the people and the government have grown better equipped to， and more experienced in， dealing with large-scale natural disasters.

When the Wenchuan earthquake struck in May 2008， Sichuan Province held its first press conference on the topic a full 26 hours after the event. This time in Yaan， the first press conference was convened after a mere three and half hours. In Yaan， the rubble and rocks blocking rescue paths were cleared in only eight hours in order to maximize the chances of survival of those trapped below. In Wenchuan， the same process took three days and seven hours. With ample preparation， rescue and medical capabilities have been strengthened across the province， and the focus has been on earthquakespecific scenarios.

There remain areas for improvement. Building codes need to be continually strengthened， and ordinary structures in the Sichuan countryside should be built to withstand the most powerful shocks. Relief effort volunteers are undoubtedly passionate， but they must be given training before heading out into the field. And charities should face stricter oversight to stamp out corruption.

Outlook Weekly

Issue No. 16， published on April 22， 2013

Change to Fiscal Transfer System Imminent

According to a document on restructuring released by the State Council through its General Office， the central government will abolish and merge a slew of “special transfer payments” and relegate a number of such payments to local governments.

This reform， scheduled for completion by the end of this June， is expected to bring down the worryingly large percentage of “special transfer payments” in total fiscal transfers.

Transfer payments are the means to reallocate state funds from higher levels of government to lower ones. They are divided into general and special transfer payments. The former constitutes part of regional budgets， and its spending is at local governments discretion. The latter is funding from the central government for specific policy goals and assignments. Special transfer payments must go to designated programs.

The recent shift is designed to inhibit rent seeking behavior by some government agencies， bridle corruption， and give governments at the county and township levels greater flexibility in their finances.

Economy & Nation Weekly

Issue No. 9， published on April 29， 2013

Chinas Financial System Faces Potential Risks

“Chinas economy is facing growing risks and its development model is undergoing profound change. The combination is unprecedented in the past three decades，” said Cao Yuanzheng， chief economist at the Bank of China.

Statistics show that the total value of exports for the first quarter of 2013 was US $508.9 billion， up18.4 percent over the same period last year. Moreover， outstanding loans of all financial institutions by the end of March totaled RMB 65.76 trillion. Newly created loans reached RMB 2.76 trillion in the first quarter， a year-on-year increase of RMB 294.9 billion.

Although both exports and loans are picking up greatly， the national economy as a whole has seen no obvious rebound. Chinese residents are enjoying increasing incomes， but consumption growth is slowing.

The money supply is increasing and access to credit is easing. But enterprises are still finding it difficult to obtain adequate financing. Such a situation will trigger systematic risks in the whole financial system. Reforms to Chinas financial system must be immediate and far-reaching.

CBN Weekly

Issue No. 13， published on April 15， 2013

Apples Dilemma

Apple Inc. Chief Executive Tim Cook apologized to Chinese consumers and promised to improve its consumer practices after more than two weeks of condemnation in the Chinese staterun media of Apples after-sales service. However， Professor Nathan Washburn of the Thunderbird School of Global Management， now teaching at Peking University， believes that Apple is not out of the woods yet in China.

Before Apples woes， leading global technology companies such as Google， Amazon and Microsoft all encountered problems in the lucrative Chinese market that couldnt be solved with innovation and business wisdom alone.

No multinational willingly abandons a crucial market like China. Profits drive such large companies to adapt and adjust to domestic conditions. In this regard， Mr. Cooks apology was a wise move. He reaffirmed Apples commitment to Chinese customers and revealed the value his company places on them.

Doing business in China has its own intricacies， something Sergey Brin， co-founder of Google， once called “market values.” Whatever you call it， multinationals today are experiencing something of a “coming-of-age ceremony” in China.

China Newsweek

Issue No. 14， published on April 22， 2013

Once Upon a Time Rock NRoll Was Here

Twenty years ago rock n roll soared from the underground to the mainstream with meteoric velocity in China. But the rise didnt last long. The domestic political， economic and cultural environment didnt offer the soil for the growth of this genre of music， the hallmarks of which are anti-establishment passion and strong individualism. Rock n roll bands soon fell out of favor with domestic audiences.

Most Chinese turned their back on loud， strident music， perhaps because the contemporary daily lives of many urban Chinese and the daily hustle and bustle in Chinas cities are harsh in themselves. For many， the remedy lay in softer and warmer melodies.

But rock nroll refuses to be forgotten entirely. The vitality and expressiveness of the genre appeals to something atavistic in our hearts. Perhaps thats why the presence of some 1980s and 90s rock stars on the TV program I Sing has drawn such wide attention. The stars symbolize both a piece of Chinese history and the disconnect many youth once felt as society changed around them. Today， as mainstream Chinese culture fractures into many counterstreams and room for the individual grows， rock nroll may be on the verge of a comeback.

Exchanges

Xi Jinping Meets with Visiting French President Hollande

On April 25， Chinese president Xi Jinping met his French counterpart Francois Hollande in Beijing. They discussed bilateral ties， conducted friendly， deep and candid exchanges on major international and regional issues of common concern and achieved important agreements. Both parties decided to push forward the China-France comprehensive and strategic partnership based on mutual respect and mutually beneficial cooperation. The two presidents exchanged views on the cooperation between China and France， and decided to meet annually， strengthen strategic dialogue and establish a high-level economic and financial dialogue mechanism. The two countries are to strengthen bilateral cooperation in such fields as nuclear energy and aviation， and improve coordination on issues concerning the G20， climate change， and food and energy safety. They agreed to promote the relationship between China and Europe in the spirit of mutual benefit. After the talks， Xi and Hollande witnessed the signing of over a dozen agreement documents on technological innovation， the environment， sustainable urban development， culture， tourism， nuclear energy， electricity， aviation， finance and insurance， food and food safety.

Xi Jinping Meets with Prachanda， Chairman of the Unified Communist Party of Nepal （Maoist）

On April 18， Chinese President Xi Jinping met with Puspa Kamal Dahal Prachanda， chairman of the Unified Communist Party of Nepal （Maoist） and former Prime Minister of Nepal， in Beijing. Xi said China attached great importance to bilateral ties with Nepal and was willing to work together with the country to cement neighborly friendship and boost reciprocal cooperation in order to further advance the two sides comprehensive cooperative partnership. Prachanda thanked China for its developmental assistance to Nepal. He said he looked forward to more financial and technical support from China as well as more practical cooperation between the two sides in infrastructure， water conservancy projects and tourism. He hoped the Nepal-China friendship would continue to be strengthened. At a dinner reception held by the Embassy of Nepal later that day， Prachanda gave a speech saying that Nepal hopes to speed up its economic development through cooperation with countries like China after the political situation in the country becomes stable.

China and Australia Strengthen Agricultural Cooperation

On April 22， Chinese Agricultural Minister Han Changfu and Australian Minister of Agriculture， Fisheries and Forestry Joe Ludwig cochaired the 11th China-Australia Joint Agricultural Commission， held in Sydney. Both parties reviewed the exchange and cooperation between the two countries， and defined prioritized areas and activities in future agricultural cooperation. Han highlighted that China and Australia had complementary strengths in agriculture. A broadened cooperation mechanism was in line with the fundamental interests of both countries. He put forward four suggestions to improve the cooperation， including boosting the role of the current mechanism and innovating models for cooperation， and enhancing communication and collaboration between the two sides in international food and agriculture affairs. Minister Ludwig agreed with Hans proposals， and extended an invitation to Chinese businesses seeking investment and development opportunities in Australian agriculture. He noted that Australia was keen to strengthen communication and coordination with China in agricultural trade， food and agriculture affairs and other multilateral issues. At the end of the meeting， the two sides signed the Revised Memorandum of Understanding on Agricultural Cooperation Activities under the China-Australia Agricultural Cooperation Agreement.

57.5 Years Old

Ten of Chinas 32 provinces， autonomous regions and municipalities directly under the central government elected new governors， mayors or new Party secretaries earlier this year following the power transition at the top level of Chinese politics. The 62 local Party and government leaders now average 57.5 years old， with three aged 45 to 50， nine 51 to 55， 37 in the 56-60 group and 13 aged between 61 and 65. About 70 percent majored in social sciences， and 55 have masters or higher degrees. Among the ranks are just two women – Liu Hui， 53， chairperson of Ningxia Hui Autonomous Region， and Sun Chunlan， 63， Party secretary of Tianjin.

6.99 Million

Chinas institutions of higher learning will churn out a total 6.99 million graduates this year， 190，000 more than the class of 2012， hitting a historical record. These young people with diplomas who are about to enter the labor market will find their job prospects extraordinarily grim this year amid a slowing domestic economy and the global economic slump. The Chinese government has geared down its 2013 GDP growth prospect to 7.5 percent. The gap between what employers need and what applicants expect also plays a role in fresh graduates job-hunting woes.

Society

Youngest City Open to Tourism

Sansha， a prefecture-level city in the South China Sea founded in June 2012， began to receive tourists last May. Visitors can take a cruise to Yongxing Island， headquarters of the city. But they cannot spend the night on land.

About 300 km southeast of Hainan Island， Yongxing has a land area of 2.1 square kilometers and a population under 1，000， mostly fishermen. Among other infrastructures， a small airport， a pier and a weather station have been built on the island. Sansha governs two million square kilometers of the South China Sea， of which land area is merely 13 square kilometers， the smallest among all Chinese cities. Its economy mainly depends on tourism and oil and gas exploration.

Migrant Worker City Conundrum

A survey by a team with the Ministry of Human Resources and Social Security found that 62 percent of migrant workers want to stay in their host cities for as long as possible， and 31 percent wish to live there for the rest of their lives.

The highest appeal of cities is the multitude of jobs and higher incomes， according to 55.7 percent of the respondents. Better schooling for their children and better opportunities to improve professional skills follow down the line.

There are however several factors that hinder migrant workers city dream – as many as 65.29 percent of respondents

cited the staggeringly high housing prices. Not owning a home is listed by 55.12 percent of migrant workers as the top inconvenience or deterrence for their work and life in cities. They also balk at higher living costs， the anguish of being separated from their families and the guilt of not being able to take care of aging parents.

Top Legislature Adopts Tourism Law

The Standing Committee of the 12th National Peoples Congress on April 25 approved a law on tourism that will go into effect on October 1. It is the first law to be approved by the new tenure of Chinas top legislature.

The countrys tourism sector has undergone dramatic changes over the past decades. The long-awaited statute is designed to regulate this market， safeguard touristsrights and interests， ensure the reasonable use of resources， and foster sustainable and healthy growth of the industry.

According to the law， tourism sites developed using public resources should“strictly control rises in entrance fees or other additional charges.” Public hearings will have to be held on any planned rise in prices to prove they are a necessary and reasonable move. It also stipulates that tourism sites must issue early warnings to the public if the number of visitors is expected to reach maximum capacity. Local governments at or above county level will be required to assign or set up special organizations for receiving complaints regarding tourism. Furthermore， the law includes a provision whereby Chinese tourists traveling abroad have the right to ask for help and protection from local offices of Chinese institutions should they meet difficulties.

Internet Music Flourishes

A report by the Ministry of Culture reveals that there were 575 Internet music companies in China at the end of 2012， registering a 27.2 percent growth from the previous year.

The volume of the online music market totaled RMB 4.54 billion， including RMB 1.82 billion in revenues of online music service providers， which swung up by 379 percent year-on-year. The market for wireless music also reported strong gains – rising by 13.3 percent year-on-year to hit RMB 2.72 billion. The customers of online and wireless music stood at 430 million and 750 million respectively， both on a sanguine growth track.

Activity

NCPAs Commissioned Opera Xi Shi

Date： June 20-23

Place： National Center for the Performing Arts

Price： VIP/RMB 680/600/550/380/280/100

Xi Shi is the first commissioned opera by the National Center for the Performing Arts. The premiere in October 2009 won high praise from critics. The namesake protagonist Xi Shi， a beautiful maiden who lived in the fifth century BC， is a household name in China. Her tragic tale may be 2，500 years old， but this is the first time it has been presented through the medium of Western-style opera. The familiar plot and classic Chinese musical pieces should guarantee the opera is a favorite with domestic audiences. A number of world-class artists contributed to the production， including Chinese composer Lei Lei， playright Zou Jingzhi and director Cao Qijing.

Sarah Brightman Dreamchaser World Tour

Date： June 16

Place： Guangzhou Gymnasium （New）

Price： RMB1，680/1，280/880/680/480

Sarah Brightman is touring the world in 2013， and is scheduled to perform in China in June. This is Brightmans third visit to China.

The singer shows no signs of slowing down. Recently， she booked a seat on the Soyuz Spacecraft to head to the International Space Station in 2015. As a precursor to that trip， her 2013 world tour， though terrestrial， is hence themed on outer space. Set designs will follow the cosmological theme.

Expect to hear songs from her new album Dreamchaser， though shell be sure to perform some old favorites， especially those in line with the theme. Space has obviously been a long-time preoccupation of the artist， as evidenced by songs such as Venus and Mars.

economy

Payment Industry Booms

As the popularity of mobile Internet in China continues to grow， traditional Internet businesses are adapting to the new medium. And as mobile devices are increasingly used in online browsing for consumer products， mobile payment methods have become a fast-developing market.

Electronic payment services are common nowadays in China， not just in the countrys big cities， but in the countryside as well. Competition is heating up in the sector as a slew of local service providers enter the market to compete against big global players.

The payment industry has become one of the most innovative business fi elds in China， and growth doesnt look to be slowing down any time soon. According to statistics， the number of online shoppers on mobile phones in China increased by 136.5 percent in 2012 to reach 55.5 million people.

China Ranks First in Shopping Center Construction

Research from CBRE， the worlds largest commercial real estate services fi rm， reports that 32 million square meters of shopping center space are currently under construction worldwide. Year-on-year growth in construction hit 15 percent， a record high. Emerging markets are the driving force in this construction boom. China accounts for more than half the area currently under construction， with 16.8 million square meters. Seven cities in China are among the top 10 cities worldwide for shopping center construction. Chengdu is currently developing 2.9 million square meters， while Tianjin records 2.1 million. Following up are Shenyang， Chongqing， Wuhan， Guangzhou and Hangzhou， all of which plan to deliver over one million square meters of shopping center fl oor place in the next three years.

Sci-Tech

Chinese Scientists Contribute to Search for Dark Matter

Chinese scientists have made a signifi cant contribution to the search for dark matter as part of the international Alpha Magnetic Spectrometer （AMS） team. The Alpha Magnetic Spectrometer is a particle physics experiment module mounted on the International Space Station. It is designed to search for various types of unusual matter.

The core component of the AMS is a huge， Chinese-made permanent magnet， said Chen Hesheng， a primary member of the AMS team and former director of the Institute of High Energy Physics at the Chinese Academy of Sciences （CAS）. The magnet， jointly constructed by the CAS Institute of Electrical Engineering， the CAS Institute of High Energy Physics and the China Academy of Launch Vehicle Technology， is used to distinguish particles carrying positive charge from those carrying negative charge. According to Chen， putting an enormous magnet into space was the biggest challenge for the AMS project. “Chinese scientists chose a new type material with extremely high magnetism， namely Neodymium Iron Boron， and innovated the magnetic circuit design to extend its service life to 18-20 years，” Chen said.

The magnet passed rigorous testing by NASA and shortly after became the fi rst largesize magnet sent into space.

Meanwhile， the electromagnetic calorimeter of the prober was co-designed by Chinese， Italian and French scientists. Data analysis techniques created by Chinese scientists also played an important role in the AMS experiment. They contributed to charge measurement， particle identifi cation and energy measurement.

American Financial Tycoon Establishes Scholarships in China

Stephen Schwarzman， founder of private equity giant Blackstone， set up a US $300 million scholarship through Tsinghua University in order to attract students from U.S.， China， Europe and other regions to pursue masters degree studies at the prestigious Chinese university. The scheme is touted to be the “Rhodes Scholarship of Asia.”

Schwarzman says the purpose of the project is to “promote mutual respect between China and the Western world through fostering future leaders.” The scheme will be offi cially launched in 2016. Schwarzman personally donated US $100 million to the fund while sponsors have offered US $100 million. The remaining US$100 million will be raised by the end of this year.

Advisors to the project include former British Prime Minister Tony Blair， former French President Nicolas Sarkozy， former U.S. Secretary of State Henry Kissinger， and Nobel Laureate Chen-Ning Franklin Yang.

Business Tax Cuts

The State Council， Chinas cabinet， decided to further expand pilot schemes to replace the business tax with a valueadded tax （VAT）. From August 1， 2013， the scheme will be broadened nationwide in the transportation industry and segments of the modern service industry. At a later date it will also be rolled out in the railway transportation and post and telecommunications industries.

Zhu Baoliang， director of the forecasting department at the State Information Center （SIC） and its chief economist， says China is in an important period of acceleration in the transformation of its development model. In readjusting the structure of the countrys economy， the development of tertiary industries， and especially the modern service industry， should be prioritized as the key to sustained growth.

Replacing the business tax with a VAT promises to eliminate double taxation， reduce the tax burden on businesses and allow them more space for growth. It is estimated that enterprises will save around RMB 120 billion in taxes thanks to the scheme in 2013.

Qinghai Builds Worlds Largest Single Thin-fi lm Solar Power Station

A 50 megawatt thin-fi lm solar power station has been completed by Hanergy Holding Group in Hainan Prefecture of Qinghai Province. It is the worlds largest ground power station using thin-fi lm photovoltaic cells. The thin-fi lm solar technology in China has thus entered the era of large-scale applications. According to Li Hejun， chairman and CEO of Hanergy， thin-fi lm technology is at the forefront of the photovoltaic industry. The thinfi lm photovoltaic module has a low temperature coeffi cient and gives better performance under low light level. With other advantages such as low energy consumption， lack of emissions and fl exibility， it is designed for distributed solar power generation. Moreover， an innovative model whereby pasture is cultivated within the station has been introduced. Since most photovoltaic plants in China are built in the Gobi desert， implementation of the technology will not only produce clean energy， but also play a role in wind mitigation and sand fi xation.

Chinas First Self-developed Biofuel Flight

China Eastern Airlines on April 24 successfully conducted the nations fi rst test fl ight powered by domestically developed biofuel made mainly from palm oil and recycled cooking oil. The jet， which used biofuel produced by Sinopec and China National Aviation Fuel Group Corporation， fl ew for 85 minutes after taking off from Shanghai Hongqiao International Airport. The success made China the fourth country after the United States， France and Finland to produce biofuel independently. After passing certain reviews and obtaining a certifi cate of airworthiness， the fuel will be put into use commercially. The biofuel will reduce carbon emissions by as much as 92 percent compared with traditional jet fuels such as aviation kerosene. In addition， existing jet engine technology would require no modifi cation in order to burn this fuel.

Cool Gadgets

Gas-insulation Jacket

Planning a trip to Siberia next winter？ Or just sick of having to pile on the layers in December？ Perhaps its not top of our to-do lists as summer heats up， but in the long term its worth investing in the Klymit Ulaar Jacket. This piece of wearable technology is insulated using argon gas. The argon layer acts as a buffer between your body heat and the cold. As the weather gets warmer， you can just let a little bit of gas out via the side nozzle.

Handy Food Dispenser

We cram things into every nook and cranny in our kitchens. But when it comes to being useful for storage， wall space is often overlooked. Enter these food dispensers， which fit snugly above your kitchen workspace -- handy when you need them， out of the way when you dont. They fit dry foods， which are sealed airtight for long-lasting freshness. One ounce of food is released with every twist of the cap.

Personalized Cutting Boards

If you want to give your special someone a present from the heart， its got to be original. Now， take a look at these custom wooden cutting boards. They are“engraveable.” You can have anything you like carved into its surface， or just stick with some of the designs offered. The cutting boards are available in maple， white oak， beech and walnut. They also make great presents for divorcees – carve an ex-lovers name on the board， and take out that anger passive aggressively.