All posts by RWZ - 291. page

Hong Kong based newspaper, Wen Wei Po, strongly supportive of the Chinese Communist government, published an article on May 15 to discuss the future direction of the Chinese economy. The article suggested that although tertiary industries such as the techology and services industries are important; it is very hard for them to compete against the West. Agriculture and basic industries still provide the primary support to Chinese economy. A future strategy emphasized in the article was to keep developing the economy’s export orientation which is believed to have been a successful approach thus far. The article also stated that the Chinese financial industry needs significant improvement, yet it should not follow the example of the West, offering too many complicated “gambling” financial tools which form what the article called the “Casino Economy”.

Source: Wen Wei Po, May 15, 2009.
http://paper.wenweipo.com/2009/05/15/PL0905150001.htm 

Famous scholar, Chi Fulin, who acts as an important advisor in Chinese reform and development research, believed that the Third Central Committee Plenary Session of the Seventeenth CCP National Assembly sent three important signals.

The first was rural reform, which he claimed was the central point connecting the rest of the reform strategy; the second was to stabilize the macroeconomic environment, which heavily relies on expanding rural markets;the third defined the focal point of rural reform – the increasingly larger gap between cities and rural areas, which was believed to be a primary reason for social conflicts.

Source: Xinhua News, October 28, 2008.
http://news.xinhuanet.com/politics/2008-10/28/content_10265488_1.htm

The Global Times, under Chinese state-owned People’s Daily, published a report on various views about the strategy to get out of the “US Dollar trap”. All the scholars quoted in the report agreed that in the long run, China should reduce the amount of its assets valued in US Dollars. However, most of them agreed that it’s not wise to do so in the short term. Exit strategies discussed in the report included: increasing the use of RMB as a settlement currency, increasing stockpiling physical strategic resources and taking advantage of existing large US Dollar assets to gain more share in the current world financial system.

Source: Global Times, May 8, 2009.
http://finance.huanqiu.com/roll/2009-05/455186.html

The International Herald Leader, under Xinhua News, reported that a large number of Chinese exporting companies are dealing with more and more refused shipments. With the international financial crisis, various excuses are being used by foreign importers to reject shipped goods. Credit risks are significantly increasing. For example, in the first 2 months of 2009, Chinese private exporters alone lost $100 million due to refused shipments – an increase of 87.5% compared to last year.

 Source: International Herald Leader, May 8, 2009.
 http://news.xinhuanet.com/herald/2009-05/08/content_11334225.htm