Economy

Seats for Chinese Space Travelers

Thanks to the agreement reached last December 27 between Chinese travel agency Dexo Travel and the space tourism firm Space Expedition Corporation （SXC）， Chinese travelers will have the added holiday option of a space tour as early as 2015.

Under the SXC program， the Lynx Mark II spacecraft produced by the U.S. aerospace company XCOR takes travelers 103 km into outer space. The spaceship has room for the pilot astronaut and one tourist only. The trip lasts about one hour.

The first 100 passengers， including a quota of six for Chinese travelers， on the Lynx Mark II will enjoy the privilege of being picked up by private plane， for an inclusive price of US$220，000 （about RMB 1.335 million）. The price for those that follow is US$100，000 （about RMB 607，000） with no limit on the number of travelers. Seven Chinese travelers have already expressed interest in the space trip， according to Dexo Travel CEO Zhang Yong.

RMB 28 Trillion

An evaluation by the Chinese Academy of Social Sciences on Chinas national balance sheet puts the countrys central and local government debts close to RMB 28 trillion by the end of 2012， accounting for 53 percent of Chinas GDP that year. Of this， RMB 19.94 trillion was owed by local governments. The think-tank says these high figures should alert policymakers， for it exposes the housing credit， local debts and bad bank loans to short-term risk， and Chinas overseas assets， corporate debts and social-security arrears to medium- and long-term peril.

RMB Sets 41 Records in 2013

Last December 31 marked the 41st time in 2013 that the RMB strengthened to a new record high， having reached 6.1024 per U.S. dollar， the strongest level since July 2005， when the country launched reforms of its exchange rate mechanism. In 2013 the RMB central parity rate against the greenback set 41 new records， gaining 1，984 basis points， so tripling the 2012 level of appreciation.

More， albeit slight， appreciation of the RMB is expected in 2014. This will have adverse impact on the exports of Chinas low value-added industries， according to Dr. Zhu Mingfang， a researcher with the Finance Research Institute at the Development Research Center of the State Council. However， appreciation in the medium- and longterm will boost Chinas economic restructuring.“The pressure exerted by a stronger RMB will push low value-added industries to increase productivity and adjust their product structure，” Dr. Zhu said.

Telecom and Military Sectors Open to Private Capital

The Ministry of Industry and Information Technology （MIIT） will encourage and guide the flow of private capital into Chinas telecom industry and military research， manufacturing and maintenance sectors in 2014.

According to MIIT Minister Miao Wei， the ministry will deepen reforms in key industries in 2014， including pilot programs to open such telecom service markets as the resale of mobile services and access networks， and improvements to the market-based price mechanism. It will also accelerate the transformation of military enterprises into joint-stock companies and the reform of military research institutes. The market entry and exit system of military products will be improved， and the two-way conversion of military and civil technologies promoted.

The MIIT will work with other government departments to revoke unjust regulations related to non-public economies， encourage private enterprises to participate in the reform of state-owned enterprises， and encourage the development of non-public-capital-controlled mixed ownership enterprises. The authorities will moreover push forward reforms in such fields as state-owned enterprises， taxation， finance， technology and pricing of resource products.

Rural Residents Reap Higher Non-Farming Income

Chinese farmers income achieved relatively rapid growth during 2013 for the 10th consecutive year. Rural per capita net incomes increased an estimated RMB 1，000 over 2012， and 2013 marked the first time wages exceeded revenues from agricultural operations among rural households. This signifies a major change in Chinas rural income structure.

The development of produce stemming from local characteristics and advantages and the progress of agricultural industrialization have resulted in higher incomes from farming. Growth of the secondary and tertiary industries in rural areas has also significantly contributed to farmers earnings. In 2013， profits from sizable farm produce processing enterprises surpassed RMB 1.2 trillion – an increase of 16 percent over 2012. There was also a 10-percent increase in agricultural tourism， with 900 million person-time visitors. Township enterprises， meanwhile， created more than two million jobs.