Economy/Resources - 197. page

On December 9, 2012, China Review News published an article analyzing why the development of the wind power and photovoltaic industry sectors in China are slowing down.

According to the article, the government’s “one size fits all” policy is one of the most direct causes of the excessive and blind development of these two sectors. Any enterprise that invests in these two sectors can obtain very generous government funding support and policy support. Attracted by such direct benefits, investors have completely ignored the risks and any possible vicious competition.

Source: China Review News, December 9, 2012
http://www.zhgpl.com/doc/1023/3/5/6/102335616.html?coluid=53&kindid=0&docid=102335616&mdate=1209081902

According to statistics reported by the National Bureau of Statistics of China, the November CPI was up 2 percent when compared to the same period last year. The CPI grew 2.1 percent among urban residents and 1.9 percent in the countryside. The report said that the price of food went up 3 percent while the price of non-food items went up 1.6 percent. The price for consumables was up by 1.9 percent and the service sector was up 2.3 percent.

Compared to October, the November CPI was 0.1 percent higher. The CPI in urban areas went up by 0.1 percent, while the countryside went up by 0.2 percent; the price of food was up by 0.4 percent and non-food prices were flat. The price of consumables was up by 0.3 percent while the prices in the service sector were down by 0.3 percent.

Source: Xinhua, December 9, 2012
http://news.xinhuanet.com/fortune/2012-12/09/c_124068137.htm

In Beijing on December 4, 2012, the CCP Central Committee’s Political Bureau held a meeting on the economic work to be done in 2013. The result of the meeting was that China will continue to strengthen its control over real estate pricing.

The meeting set the direction for the year 2013 as follows: maintain the continuity and stability of macro-economic policies and apply appropriate precautionary adjustments and micro adjustments to the economy; try to expand domestic demand and continue strict control over over-production; maintain the stability of the general price level and regulate market prices and fee structures; improve people’s living standards and strengthen control over real estate pricing.

Source:
Huanqiu, December 4, 2012.
http://china.huanqiu.com/politics/2012-12/3344280.html

On December 4th, 2012, Xinhua published an article on how widespread private lending has become in China. Many small and medium sized enterprises borrow money using private financing. Recently, the Public Security Bureau in Zhangzhou City, Fujian Province issued a warning to alert the people about “illegal funding activities.” One recent incident of “illegal funding" involved up to 80 million yuan.

Source: Xinhua, December 4, 2012
http://news.xinhuanet.com/2012-12/04/c_113895746.htm

On November 20, 2012, Qiushi Theory, a periodical on political theory published by the Central Committee of the Chinese Communist Party and the CCP Central Committee school, reprinted an article from Ziguangge (cpc.people.com.cn), a periodical under People’s Daily, having the title, “Boosting Consumption Is the Fundamental Way for China to Get Out of Its Economic Predicament”.

According to the article, China’s economic growth rate has fallen over the past several quarters. The period of the export-led economy may be over. Therefore, China’s economy must shift from excessive dependence on external markets to production for the domestic market. China’s Ministry of Commerce has established a goal in its 12th Five-Year Plan of having around a 15% average annual increase in total retail sales of consumer goods so as to reach the goal of 32 trillion yuan by 2015.

Source: Qiushi Theory, November 20, 2012
http://www.qstheory.cn/jj/jjggyfz/201211/t20121122_195708.htm

On December 3, 2012, Radio Free Asia published an article titled “Some Foreign Companies in China Are Alleged as ‘Sweatshops.’” According to a report released by “China Labor Watch,” a non-governmental organization with headquarters in New York City, Mattel company and other foreign enterprises in China have become “sweatshops.”  The article said that Mattel, the world’s largest toy manufacturer, has four factories in China. Its workers often have to work overtime, sometimes up to 113 overtime hours per month. This is considerably more than the overtime hours allowed by law.

Source: Radio Free Asia, December 3, 2012
http://www.rfa.org/mandarin/yataibaodao/nu-12032012155429.html

China Review News (CRN) recently published a commentary about the issue of reforming the system for the redistribution of wealth, which has been identified as a focal point of public opinion. The commentary suggested that a breakthrough will be required in five areas to solve the problem of the unfairness in the distribution of wealth: (1) First-time distribution needs to avoid the sharp differences that exist between the company’s growth versus wage growth and between management income versus the income of the average worker. (2) The process needs to include the growth of government income versus the growth of citizen’s income. (3) The reform must solve the root cause of “gray income” and corruption. (4) Enhanced tax system reform is required to improve the balancing function of taxation. (5) The average citizen’s income level should be raised when the job market expands. The commentary also called for protecting China’s middle-class population. The author concluded that reform is not a simple matter. Instead, it requires adjustments in the political, economic, legal system, and cultural areas.

Source:China Review News, November 29, 2012
http://www.zhgpl.com/crn-webapp/doc/docDetailCreate.jsp?coluid=53&kindid=0&docid=102320766&mdate=1129080126