Economy/Resources - 202. page

Qiushi published a commentary with an analysis of income distribution in China. This analysis showed that the wealth of local residents increased rapidly in a relatively short period of time as the result of economic development and the economic transformation. While relative to other countries, the inequality in the distribution of property of China’s residents is not very great, the inequality is growing very rapidly. … From the wealth distribution chart, [it is clear] the so-called middle class remains very small.”

Source: Qiushi, April 10, 2012
http://www.qstheory.cn/jj/xsdt/201204/t20120410_150235.htm

Xinhua recently reported on the state of the Chinese job market during the first quarter of 2012. According to the report, general economic growth in China is slowing down. People in society are experiencing widespread worry about the job market. The spokesman for the Ministry of Human Resources and Social Security predicted that the market will be challenging this coming year; he stated that 25 million new jobs are needed for 2012. The primary problem in the Chinese job market is the mismatch between position requirements and the skill sets available. The first quarter figures showed that a large number of companies cannot find qualified, skilled technicians, while millions of college graduates cannot find jobs. Researchers suggested that the best immediate solution to enable the creation of new jobs would be to cut taxes for small businesses. They also suggested that the government needs to promote free secondary vocational education and to concentrate its resources on training migrant workers.

Source: Xinhua, April 7, 2012
http://news.xinhuanet.com/fortune/2012-04/07/c_111748444_2.htm

China Economy recently reported that the State Council Executive Meeting released new policies to improve China’s imports. The primary goals are to ease the pressure of a “resource bottleneck,” to improve domestic consumption, and to reduce trade friction. Four new policies are: (1) Reducing tariffs (temporarily) on energy resources, raw materials and some daily consumer products; (2) Encouraging commercial banks to increase loans to support imports, especially in the areas of advanced equipment, key manufacturing parts, and energy resources; (3) Improving the efficiency of customs and inspection and quarantine authorities by allowing 24-hour appointments and eliminating unreasonable charges; (4) Reducing import operational costs by introducing better administrative improvements such as making more use of custom’s special supervisory areas and bonded supervisory areas.

Source: China Economy, March 31, 2012
http://intl.ce.cn/sjjj/qy/201203/31/t20120331_23205172.shtml

During his trip to southern China, Chinese Premier Wen Jiabao stated that the top national banks in China have too much power and have made too much money, and that their monopoly must be broken. “As for financing costs, actually let me speak frankly here. Our banks make a profit too easily. Why? It is because a few large banks are in a monopoly position. People can only obtain loans from these banks. It is very difficult to obtain loans from other sources. Now private capital has entered into the financial market. Fundamentally speaking, [we] have to break the monopoly. The Communist Party’s Central Committee has reached a unanimous agreement to carry out a pilot project in Wenzhou. A successful Wenzhou pilot project should be promoted across the country. Some (features of the project) can be implemented immediately throughout the country. "

Source: Beijing News, April 4, 2012
http://finance.sina.com.cn/roll/20120404/034011744163.shtml

A high profile article titled “Confidently Make State-owned Enterprises Bigger and Stronger” recently appeared on Red Flag Manuscript, a core publication of the Chinese Communist Party’s Central Committee.

The author, a director at the policy making State Development and Reform Committee, refuted voices in favor of privatization. “Some people want the state-owned sector, as a percentage of GDP, to fall to 10%, the U.S. standard, and ‘exit the competitive sector.’ Some have asked the state-owned enterprises to exit the basic industries and the service sector, in the name of ‘antitrust.’ Some advocate that the state only control the land and financial sectors and completely retreat from the business world.” The article argued, “The experiences of Eastern Europe and Latin America have shown that a market oriented toward privatization will leave the national economy unprotected; its property rights and even its economic lifeline will then be controlled by foreign capital.”

The author emphasized that the state-owned enterprises should maintain an advantageous and dominant position in the following sectors: (1) strategic areas related to national security: defense and the science & technology industry (nuclear, aerospace, weapons, ships, and military electronics); national infrastructure (such as the communications and broadcasting, electricity, and railway networks and important transportation facilities); key urban infrastructures (water supply, drainage, electricity, gas, and roads); the financial sector; and bulk agricultural commodities. (2) important basic industries: such as power, telecommunications, energy, and key petrochemical and metallurgy industries. (3) non-renewable strategic resources: mining, oil and gas resources. (4) pillar industries and the high-tech industry: mining, metallurgy, petrochemical, machinery, and transportation equipment; and high-tech industries (new materials, new energy, electronic communications, aerospace, biomedical, etc.

Source: Red Flag Manuscript, March 26, 2012
http://www.qstheory.cn/hqwg/2012/201206/201203/t20120326_147755.htm

Xinhua recently reported that China Ocean Shipping (Group) Company (COSCO) reported a 10.5 billion yuan (〜US$1.67 million) loss in 2011. The company blamed its poor performance on the decline of the global economy and suggested that the entire ocean shipping industry is showing a loss. The second reason identified for the loss was the rising cost of oil. The fourth quarter loss accounted for more than half of the total annual loss. The COSCO CEO, Wei Jiafu, suggested that, based on the signs of recovery in the United States and Europe, it is expected that the global container shipping market will improve during the year 2012. The Chinese government owned COSCO is one of the largest liner shipping companies in the world. COSCO stops at over 1,000 ports around the globe.

Source: Xinhua, March 31, 2012
http://news.xinhuanet.com/fortune/2012-03/31/c_122913532.htm

The China National Development and Reform Commission published the results of a study of 31 provinces, municipalities, and autonomous regions that measured economic, technological, and social openness. Shanghai, Beijing, and Guangdong were ranked the top three with scores of 84.7, 68.1, and 56.9 respectively while Guizhou, Qinghai, and Tibet were ranked the bottom three with scores of 3.4, 6.5, and 7. The report showed Beijing tied with Shanghai on social openness and on technological openness; it scored the highest among the top three. However, its economic openness was far behind Shanghai and Guangdong. Among the four economic zones, the Pearl River Delta and the Yangtze River Delta had the highest scores in openness but the Bohai Economic Rim and the Sichuan/Chongqing district lagged behind.

Source: Xinhua, April 1, 2012
http://news.xinhuanet.com/politics/2012-04/01/c_122916340.htm