Economy/Resources - 164. page

People’s Daily recently published an article stating that the average height of Chinese males between 7 and 17 years of age is 2.54 cm (1 inch) shorter than males in Japan and Korea. It also reported that the physical condition of Chinese youths has worsened steadily over the past 25 years. Wu Zhenxian, deputy to the People’s Congress and a teacher from Beijing who holds the distinguished teacher’s title raised the concern. According to Wu, based on the results of a physical examination of students from Beijing High School in 2012, the physical condition of the youths in strength, speed, and endurance has declined while near-sightedness and obesity rates have increased. Results showed that only 10 percent of the students passed the test. In the meantime, schools are concerned about the potential liability caused by injury due to physical activities. Wu is calling for safety regulations to be established to protect both students and schools from liabilities due to such injuries. Wu also mentioned that Beijing is facing a severe shortage of teaching resources where elementary schools face a 47 percent shortage and the shortage in middle schools is at 68 percent. She is asking colleges to train more teachers and the Ministry of Education to loosen up restrictions on the quota for teachers from outside of Beijing to join the teaching workforce in Beijing.

Source: People’s Daily, March 7, 2014
http://world.people.com.cn/n/2014/0307/c1002-24555332.html

According to People’s Daily, the recent talks that both Xi Jinping and Li Keqiang gave indicate that the central administration still places the reform of SOEs (State Owned Enterprises) as its top priority in the overall progress of reform. As can be seen in the Report on the Work of the Government given by Li Keqiang, the words “reform of SOEs” were mentioned 77 times. In his speech, Xi Jinping stressed that the SOEs shall continue to improve and reform can occur more quickly. The article said that the central administration will introduce a measure called the “diversified ownership concept." The non-SOEs can invest in SOE projects in areas such as finance, oil, electrics, railroads, telecommunications, energy development and public services. In the meantime, non-SOEs will be issued a permit to operate in certain SOE fields. The article said that, currently, the State-owned Assets Supervision and Administration Commission of the State Council, local governments, and SOEs are working closely to develop a plan.

Source: People’s Daily, March 9, 2014
http://finance.people.com.cn/n/2014/0309/c1004-24579745.html

According to Xinhua, in February, Beijing’s new home sales were particularly disappointing. As of February 23, new home sales were 1,545 units, a 61.5 percent drop compared to same period last year. The monthly sales were even below normal weekly sales. Existing home sales were equally disappointing. As of February 25, there were 4, 224 existing home sales, a 45 percent decline compared to the same period last year. The fourth week in September last year saw 4,201 home sales, three times the monthly sales of February 2014. In November and December 2013, the weekly sales were above 1,500. 

On March 3, 2014, Qiushi, a journal of the Central Committee of the Chinese Communist Party, published an article titled, “China’s Manufacturing Industry Faces Ten Dilemmas.” A description of the ten dilemmas follows:

1. A lack of the capacity to innovate: China lacks self-owned independent intellectual property products.
2. Low value-added products: China is the equivalent of a world plant; however, it makes only minimal profits because foreign multinational companies, which have Research and Development (R & D) and management advantages, take away most of the profits.
3. Severe overcapacity: China currently has a total of 24 sectors, but 21 out of these 24 sectors already have overcapacity problems.
4. High-end talent shortage: China lacks Research and Development talent.
5. Corporate tax burden is too heavy: Chinese enterprises have to pay a tax of over 30 percent. Then there is the cost of corruption, plus additional fees. Thus China’s actual corporate tax burden is among the highest of all countries in the world.
6. Increasing costs: Salaries and wages keep increasing.
7. A shortfall in funding: The problem of financing directly restricts the survival and development of small and medium enterprises.
8. Strained resources and the environment: Pollution
9. Deterioration of the domestic environment: These include debt problems, a widening gap between the rich and the poor, economic depression, and the abnormal development of real estate.
10. Trade barriers: Increasing trade conflicts with other countries

Source: Qiushi, March 3, 2014
http://www.qstheory.cn/zs/rdht/201403/t20140303_326550.htm

A China Youth Daily team that monitors online public opinions issued a report on February 27. The report, based on a calculation of the amount of keyword-tagged information that has appeared at various online platforms since March 2013, came up with the top ten hot topics of public opinion, namely: environmental protection, anti-corruption, social security, food and drug safety, the stability of (housing) prices, Internet regulation, reform of the household registration system, judicial reform, health care reform, and social mores.

The issue of "environmental protection" rose to the top of the list, with three times more online discussions than the No.2 issue of anti-corruption. Of the 68 million online discussions, more than 70 percent (70.8 percent) of the netizens focused on PM2.5, a measure of particles less than 2.5 micrometers in diameter found in the air, which are believed to pose the greatest health risk. With over 48 million discussions on the matter it had more than a one third (35.6 percent) jump over last year. China Youth Daily received responses to over 1,000 questionnaires on how to deal with the air pollution. Approximately one third (29.3 percent) of the respondents called on the Government to strengthen its regulatory responsibility.

The topic of "anti-corruption" and "social security" ranked No. 2 and No. 3. on the list. The amount of total online discussion was about 22 million each, with a difference of only 3 percent. These two issues have made the list three years in a row, but the change this year is that "anti-corruption" jumped to No.2.

Source: China Youth Daily, February 27, 2014
http://zqb.cyol.com/html/2014-02/27/nw.D110000zgqnb_20140227_1-03.htm

The Yahao Real Estate Selling and Consulting Solution Agency recently released statistics on the Beijing housing market. According to those statistics, in January 2014, there were a total of 6,908 transactions in the Beijing real estate market. These properties covered 744,200 square meters. In terms of the number of transactions and the total square meters of the properties involved in the transactions, the figures represented a 40 to 50 percent drop compared to December 2013 and to the same period in January 2013. 

On February 24, 2014, Study Times, the publication of the Party School of the Central Committee of the CCP, published an article titled “RMB Internationalization Leads Chinese Economic Breakthrough.” The article reported that the People’s Bank has signed a currency swap agreement with the European Central Bank and the Bank of England, two of the three “World Central Banks.” According to the article, a currency swap with major world powers is a convenient way to realize the internationalization of the RMB. China’s economy has reached a critical juncture. It is time to take the initiative to move forward on the road of RMB internationalization. However, a currency war may be bloody and violent. 

Source: Study Times, February 24, 2014
http://www.studytimes.com.cn/shtml/xxsb/20140224/3929.shtml