Economy/Resources - 242. page

According to China Review News, several media reported that China’s total grain production in the summer of 2010 showed a 0.3% decrease from last year, because the good laborers have migrated to the cities. China Review News observed that the pay for basic labor jobs in cities is much higher than for agricultural work. Therefore many young and strong farmers have migrated to the cities, leaving only the old, the weak, women, and kids at the farms. Also, the low education level in villages makes it hard to adopt mechanization in farmlands, even though it could be a way to make up for the loss of strong laborers.

Source: China Review News, August 2, 2010
http://gb.chinareviewnews.com/doc/1013/9/9/7/101399784.html?coluid=53&kindid=0&docid=101399784&mdate=0802073818

Xinhua recently reported on a swift Chinese response to the IEA’s (International Energy Agency) published number regarding Chinese energy consumption in 2009. The Chinese National Energy Administration (NEA) commented that the IEA number is “inaccurate.” IEA believed that China’s energy consumption in 2009 was the equivalent of 2.252 billion tons of oil, which was the highest in the world and was 4% higher than the United States. Chinese NEA official suggested that IEA is a “rich countries’ club,” and its number “cannot be believed.”  According to the number published by the Chinese National Bureau of Statistics, the figure was 2.132 billion.

Source: Xinhua, July 20, 2010
http://news.xinhuanet.com/politics/2010-07/20/c_12354029.htm

China Review News (CRN) recently reviewed an article published by China Securities Journal, discussing how to rebalance the China-US trade relationship. The article recommended four policies: (1) invest directly in the US; (2) diversify export markets; (3) adjust the foreign investment structure; (4) acquire international natural resources. The article also suggested four reforms: (1) reform the structure of the economy; (2) reform the mechanism of growth (to be more consumer-driven); (3) reform pricing of the factors of production, such as land; (4) speed up the urbanization process. In conclusion, the article called for implementation of two financial strategies: (1) establish a multilayer capital market system in order to obtain international pricing power for commodities; (2) speed up the process of RMB internationalization.

Source: China Review News, July 14, 2010
http://gb.chinareviewnews.com/doc/1013/8/1/6/101381618.html?coluid=148&kindid=0&docid=101381618&mdate=0715003503

People’s Bank of China recently authorized the Bank of China HK as the RMB cash settlement bank for Taiwan. The authorized Taiwanese counterpart can settle RMB cash transactions in Hong Kong. Before this arrangement, RMB settlements were done by two Hong Kong commercial banks. Using Hong Kong as an intermediate platform instead of direct trade is based on the facts that: (1) Mainland China is still restraining capital accounts; (2) Hong Kong has a more complete structure of RMB based transaction management. RMB transactions inside Taiwan are still an item pending negotiation.

Source: China Review News, July 13, 2010
http://gb.chinareviewnews.com/doc/1013/8/0/6/101380695.html?coluid=3&kindid=12&docid=101380695&mdate=0713171355

China Review News (CRN) recently reviewed an article published by Economic Information Daily on the lessons learned about the international credit rating system. The article pointed out that, after the Greek Credit Crisis, China was truly worried about the destructive power that the international credit rating system, which is controlled by three major organizations has. The various parties throughout all levels of the Chinese government and media came to the conclusion that China should have its own credit rating capabilities. With this background, the Chinese rating company Dagong Global Credit Rating released ratings of 50 typical countries. The article suggested that the three major rating organizations are biased and discriminate against developing countries. An example is that the ratings for China and India are even lower than Spain. The article also suggested that the Chinese government should stand behind Dagong and push the Chinese rating business in the U.S. market.

Source: China Review News, July 15, 2010
http://gb.chinareviewnews.com/doc/1013/8/2/0/101382055.html?coluid=53&kindid=0&docid=101382055&mdate=0715030107

According to Xinhua on July 15, 2010, a report on statistics released by China’s State Flood Control and Drought Relief Headquarters shows that 26 provinces suffered floods this year, with total of 97,500,000 people and 6,155 thousand hectares of crops affected. Up to now, the death toll is 594 people; 212 people are still missing, and 590,000 houses have collapsed. The direct economic losses are 120.2 billion Chinese Yuan by 9am on July 15.

Source: Xinhua, July 15, 2010
http://news.xinhuanet.com/politics/2010-07/15/c_111958044.htm

China needs to follow a managed float of its exchange rate to aid restructuring, said Hu Xiaolian, deputy governor of the People’s Bank of China, in an article published on the website of the Central Bank. “A managed floating exchange rate system, which is based on market supply and demand, with reference to a basket of currencies, is a correct decision in accordance with China’s own situation and development strategy. It is also an important part of the socialist market economic system. It is China’s established policy.” 

The Outlook Weekly of Xinhua published an article from an official, associated with the State Development Planning Commission who asked a question. Earlier some Chinese economists remarked that China might benefit from a moderate 5 to 6% inflation rate. The article disagrees. “Currently the Consumer Price Index is rising slowly, but the prices for consumer goods and monopolistic items are increasing at a rapid rate. If the target for an overall price increase is set at 5% to 6%, the so-called moderate increase, economic development and social stability would suffer  damaging consequences.

Source: Xinhua, July 5, 2010
http://news.xinhuanet.com/fortune/2010-07/05/c_12299505.htm