Economy/Resources - 188. page

On May 17, the State Audit Office published the results of an audit conducted from May to September 2012 on 1,139 energy projects. The projects, launched in 2010 and 2011, had the purpose of reducing energy consumption. The audit results showed that, out of the 1,139 projects, 44 projects, involving expenditures of 1.587 billion yuan (US$258 million), did not reach their goal of reducing energy consumption. The study also found that 270 million yuan (US$44 million) of project funding had been mishandled.

Source: Xinhua, May 17, 2013
http://news.xinhuanet.com/politics/2013-05/17/c_115811024.htm

According to Shanghai Securities News, from 2008 to 2012, State-owned Enterprises (SOEs) that are directly under the central authorities paid the central government dividends totaling 358.9 billion yuan. Of the dividends paid, 330.9 billion yuan were remitted back to these SOEs. During the same period, those large SOEs that are publicly listed and under the control of State-owned Assets Supervision and Administration Commission of the State Council received government subsidies in the amount of 173.6 billion yuan. That amount was equal to more than double the total profits of those small to medium high tech companies listed in the second market.

For the past several years, the ratio of debt to total assets showed that creditors financed 80 percent of the assets of the top five power companies. In 2012, part of the dividends that the five companies paid was returned to the companies’ capital accounts.

Source: Shanghai Securities News reprinted by Xinhua, May 13, 2013
http://www.js.xinhuanet.com/2013-05/13/c_115739881.htm

China’s Ministry of Environmental Protection (MEP) has given the go-ahead for the construction of what will become the country’s tallest hydroelectric dam despite acknowledging that it will have an impact on plants and rare fish. The move met with criticism from experts due to the potential damage to the environment.

The Shuangjiangkou hydro-power dam will be on the Dadu River in southwestern Sichuan Province. It will be 314 meters (1,030 feet) high. A subsidiary of the State power firm, China Guodian Corporation, will build it over a 10 year period. The cost has been estimated to be 24.68 billion yuan ($4.02 billion) in investment.

The MEP said an environmental impact assessment had acknowledged that the project would have a negative impact on rare fish and flora and affect protected local nature reserves. The project still requires the formal approval of the State Council.

Experts argued that the dam would alter the patterns of discharge and the degradation of pollutants and be followed by changes in water quality. The construction may generate geological instability, there may be a major safety threat during the construction, and it may bring disastrous consequences in the operation phase. Considering the ethnic composition of the local minority population, their cultural practices, and their living habits, their cultural heritage would be lost and resettlement would be very difficult. Further, due to the changes in the aquatic ecological environment, local rare fish would not survive.

Source: Polaris Hydroelectric, May 13, 2013
http://news.bjx.com.cn/html/20130513/433976.shtml

According to the National Bureau of Statistics, for the month of March 2013, 68 out of the 70 cities across the country saw housing prices rise higher than the previous month. A report, released by the Chinese Academy of Social Sciences (CASS), pointed to the observation that overall prices of real estate rebounded after the State Council’s February measures to curb housing prices. The report warned of the fact that supply and demand in the housing market are out of balance and that prices face the danger of getting completely out of control.

The industry generally believes that, by adopting means under a planned economy to handle commercial residential real estates driven by market forces, the government has moved on the wrong direction in its current real estate market regulation policy.

In analyzing the causes of the current round of price increases, Bowen Xi, a manager at a real estate company, mentioned three main factors. The first is the fiscal pressure of local governments. At present, only Beijing city has implemented the 20 percent transaction tax; other cities are looking for ways to circumvent it. Second, on a long-term basis, what determines the housing price is supply and demand. There are still large numbers of people who do not have a house. Due to urbanization, for a long period of time, many people have been moving into cities. Third, China’s prices are also affected by the monetary policy of the Western countries. Quantitative easing of western currencies will result in an issuance of more RMB to the market, causing an increase in the price of assets.

Source: People’s Daily, May 7, 2013
http://house.people.com.cn/n/2013/0507/c164220-21385112.html

The China Center for International Economic Exchanges, headed by former Chinese Vice Premier Zeng Peiyan, issued a report on the transformation of China’s industrial structure. The report concluded that China faces four challenges to upgrading its industrial structure: the lack of key technology, the pressure from international competition, the pressure on employment, and structural and institutional obstacles.

As China has grown to be the world’s manufacturing powerhouse, it has had to rely on imports for many of its key technologies, large complete groupings of equipment, core components, and important basic elements.

Internationally, the United States, Japan, France, and other countries have proposed and implemented a "remanufacturing” strategy. Developing countries such as China, India, Brazil, and South Africa have, one by one, entered into accelerated industrialization, causing sharp price hikes in energy and other resources. All of this has gradually diminished China’s competitiveness.

How to upgrade the industrial structure without losing jobs is a challenge. Expanding the service industry is necessary to resolve this problem.

Finally, China must deepen reform to provide structural and institutional assurance to the upgrading of its industrial structure.
 
Source: People’s Daily, May 6, 2013
http://scitech.people.com.cn/n/2013/0506/c1007-21372018.html