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All posts by TGS - 139. page

Coal Will Remain the Main Source of Energy through 2050

According to Study Times, coal will continue to be the main source of energy through the year 2050, although the percentage of coal in China’s energy supplies may drop from 75% to 60%. “The basic reality of China’s energy is a ‘lack of oil, not enough gas, and a lot of coal,’ with uneven distribution of resources and economic development in the eastern and western regions.” Renewable energy such as wind power, solar power and biomass will hardly account for any meaningful percentage in the overall energy balance. The State should exercise caution with nuclear energy development, warns Study Times.

Source: Study Times, May 4, 2009
http://www.studytimes.com.cn/WebPage/ny1.aspx?act=0&id=2617&bid=4

Briefings | | |   Economy/Resources

Study Times: New Strategy: Media to Go Global

The Party’s publication Study Times summarizes highlights of the recent guidelines that China’s General Administration of Press and Publications in China issued on April 6, 2009, to "further facilitate deepening reform of the press and publishing system." One, separate for-profit media companies from public interest media groups; two, encourage initial public offerings by media companies; three, acknowledge private publishing companies; and four, encourage media companies to go global.

Source: Study Times, April 27, 2009
http://www.studytimes.com.cn/WebPage/ny1.aspx?act=0&id=2602&bid=6

Briefings | | |   Government/Politics

Study Times: Land Rights to Keep Farmers Out of Cities

Study Times reported on April 27, 2009, that allowing farmers to keep some land would help prevent farmers from migrating to major cities, a situation that could result in social unrest. According to Study Times, the International fianancial crisis is harming Chinese agriculture in four areas. It is pushing down agricultural product prices; there are fewer jobs for migrant workers; agricultural exports are decllining; and the tough times make it difficult to develop small town businesses and processing shops for agricultural products. The article concludes, “Allowing farmers to retain some land rights and to migrate between urban and rural areas would help prevent a concentration of farmers without land in major cities, which would result in serious social problems.”

Source: Study Times, April 27, 2009
http://www.studytimes.com.cn/WebPage/ny1.aspx?act=0&id=2597&bid=1

Briefings | | |   Social Stability

Sharp Increase in Profits of State-Owned Enterprises Challenged

Economists are concerned that the growth may not be sustainable, according to a panel discussion during a State TV program. Large State-owned enterprises saw a sharp increase in profits, according to Li Rongrong, Director of State-owned Assets Supervision and Administration Commission of the State council on April 19, 2009. In response, economists at the panel indicated that such growth was primarily fueled by preferential treatment and State monoply, thus its sustainability questionable. Others found it worrisome that 4,200 small to mid companies have been declining in contrast to the thriving large State-owned enterprises.

Source: China Central TV, April 24, 2009
http://news.cctv.com/china/20090424/101947.shtml

Briefings | | |   Economy/Resources

Chinese Agriculture Hit Hard by International Financial Crisis

The State Council met on April 22, 2009 to discuss stimulus measures to stabilize the Chinese agricultural sector amid the international financial crisis, reported Xinhua. Premier Wen Jiabao presided over the Council’s executive meeting. The meeting reached a consensus that the international financial crisis is deepening and its negative impact on the Chinese agricultural sector is emerging. With global commodity demand shrinking and prices falling, the downturn of agricultural exports coupled with slack domestic growth has pushed down agricultural prices and production efficiency in China, making it increasingly difficult to maintain a stable agriculture sector and to increase farmers’ income.

Source: Ministry of Agriculture, April 23, 2009
http://agri.gov.cn/jjps/t20090423_1260834.htm

Briefings | | |   Economy/Resources

Public Calling for Resignation of Party Officials Over Abuse of Power

Netizens in China voiced strong support for victims of abuse of power, calling for the resignations of top Chinese leaders over incidents of police brutality, reported Trend, a Hong Kong magazine. On March 8, 2009, a 19 year-old student died during police interrogation in Shanxi Province. Within three days of the incident, online postings calling for the resignations of Zhou Yongkang and Meng Jianzhu reached 70,000 at websites, including official websites such as Xinhuanet.com and people.com.cn.

Zhou currently serves as the 9th ranked member of the Communist Party Politburo Standing Committee and is the the head of the Party’s Central Political and Legislative Committee, an organ directing central government legal policy and the legislative agenda. Meng Jianzhu is the Minister of the Public Security.

Source: Trend, April 2009 Issue
http://www.chengmingmag.com/t284/select/284sel01.html

Briefings | | |   Social Stability

China’s Steel Industry Set For Tough Times

Xinhua reported that China’s steel exports were a mere 1.91 million metric tons in January, a drop of 54.6% from a year earlier. Exports in February went down further to 1.56 million metric tons. China Iron and Steel Association warns that China may soon import more steel than export. Slack domestic demand, reduced international orders, trade barriers in the West and competition from other countries are said to have contributed to the downturn.

On April 8, 2009, seven US steel companies and trade unions filed an anti-dumping petition against Chinese steel products with the US government. On the same day, the European Commission announced its decision to impose anti-dumping duties ranging from 15.6% to 24.2% on Chinese seamless steel pipe.

Source: Xinhua, April 14, 2009
http://news.xinhuanet.com/herald/2009-04/14/content_11183107.htm

Briefings | | |   Economy/Resources

China to Loan $1bn in Exchange for Ecuador Oil

The state-owned China Development Bank will loan $1 billion to Ecuador to finance energy and infrastruture in exchange for Ecuadoran oil, reports Caijing, a top financial magazine in China. According to the agreement, the loan will be used mostly to help to finance oil, natural gas and potential hydropower projects that could boost energy production. Ecuador will provide mid to long term oil shipments as payment for the loan.

China has spent billions of dollars on energy and mining projects across Latin America in recent years in a bid to gain control over the oil, metals and other natural resources needed to fuel its economy.

Source: Caijing, April 7, 2009
http://www.caijing.com.cn/2009-04-07/110134040.html

Briefings | | |   Geo-Strategic Trend