On February 13, Finance (jingrongjie) magazine published an article on the need to accelerate China’s “innovation driven” strategic transformation. The article stated that China’s economic growth can no longer be sustained by going along with the use of cheap labor and the damage to the environment and resources. Only innovation can accelerate the transformation and the upgrading of China’s economy.
Economy/Resources - 150. page
China’s Food Security Problem
The Sun, a Hong Kong newspaper, published a commentary stating that food security has become a real threat to China. If the Sino-U.S. relationship went south, the U.S. could use the food weapon and "win over China without a war."
"At the recent meeting of the Central Financial and Economic Affairs Leading Group, Xi Jinping put food security in a prominent position. It was prior to energy security, which indicated that China’s food problem is more severe than what the outside world thought."
"The North China Plain is the main production area for wheat, but the production of wheat has been decreasing year by year due to the contamination of underground water. Hunan Province is a main production area for rice, but its rice has become carcinogenic due to heavy metal pollution."
An earlier China Review News article on China’s food problem mentioned four challenges for China’s agriculture industry:
1. High Prices: The prices of major agricultural products in China exceed their international prices.
2. Increasing Costs: The costs of agricultural products keep increasing.
3. "The Yellow Line" for Subsidies: China’s commitment to the WTO means the country can no longer increase its subsidies to the agriculture industry.
4. "Red Light" on the ecological environment: In its agricultural decisions, China has to pay more attention to the ecological environment.
Sources:
1. The Sun Online, February 17, 2015
http://the-sun.on.cc/cnt/china_world/20150217/00674_001.html
2. China Review News, January 27, 2015
http://hk.crntt.com/doc/1035/9/3/0/103593027.html?coluid=151&kindid=11511&docid=103593027&mdate=0127102620
Xinhua: China’s Luxury Market Is Cooling Down
Xinhua: HSBC January Chinese Manufacturing PMI Read Low
Xi Jinping: If a Great Famine Occurs, Money Will Be Useless.
On February 1, 2015, China Gate published two articles on the No. 1 Official Document of 2015, which the Chinese Communist Party (CCP) Central Committee had released. The first article included the original content of the document with the title, “The Release of the CCP Central Committee No.1 Official Document of 2015; One Picture (the Table of Contents) Tells You All.” The second article was an analytical article about the message included in the No. 1 Document. It had the title “Zhongnanhai (the headquarters of the CCP) Is Hiding a Big Problem behind the CCP No.1 Document.” The No.1 Document focused on China’s agriculture issues. Some Chinese scholars told the media that, “Something must be wrong with China’s grain reserves. The CCP Central Committee just does not want to admit it openly. They are hiding the problem.” Actually, Xi Jinping openly expressed his worries about food safety on multiple occasions back in 2013: “If a Great Famine Occurs, Money Will Be Useless.”
Rice, wheat, and corn have been China’s staple food. This year, potatoes will be included as the fourth-largest staple food in China. According to a Chinese scholar, either industry has used up China’s surface water or it is severely polluted. Groundwater is also very limited now. Potato’s production is relatively high and can sustain drought. Using potatoes as a staple food will help to alleviate the food crisis." The article concluded, “Almost all of the downfalls of the dynasties in China’s history started with a Great Famine.”
Source: China Gate, February 1, 2015
http://www.wenxuecity.com/news/2015/02/01/3998139.html
http://www.wenxuecity.com/news/2015/02/01/3996483.html
NBD: State Council Pushes Industrial Exports
Shanghai Gave up Its Official GDP Goal
Five Economic Challenges that China Faces
Daily Economic News predicted five macro-economic challenges in 2015; these will come primarily from external pressure and from internal economic drivers losing steam.