Economy/Resources - 247. page

In addition to having high mortgage payments for living quarters, the post-80s generation now also faces large expenditures for holidays, China News Service reported.

A website survey of white collar workers showed that, for the Chinese New Year in February, 55% spent more than 5,000 yuan [Ed: the average white collar worker’s monthly income is between 2,000 and 3,000 yuan]; more than 80% spent one or two months of their income; and 20% spent more than a quarter of their annual income.

Analysts claim that this has become a problem for all Chinese. Heavy spending is a reflection of the “face culture,” where each wants to outdo the other, including ones family members. The result is excessive financial burdens.

Nowadays, a common joke is, “I am short of nothing but money.”

Source: China News Service, February 25, 2010
http://www.chinanews.com.cn/sh/news/2010/02-25/2137081.shtml

Some Chinese government top advisors outlined the strategies for China’s economic development and transformation according to China New Service, which quoted Hong Kong Wen Wei Po’s report. The suggestions included two spaces (internal demand space and innovation space), four strategies, and four economic transforming paths.

Four strategies:
1. Expand internal demand: developing and advancing consumer demand.
2. Industry transformation and upgrade: increasing mid- to high-end industries’ competitiveness.
3. Human resource quality improvement: expanding the job market, improving social benefits, education and training.
4. Saving energy.

Four economic transformation paths:
1. Retrain jobless farmland laborers as city laborers.
2. Develop the manufacturing industry in the area of R&D, design, brand development, supply chain, and post-sales service.
3. Increase the service industry’s percentage of GDP.
4. Put more information technology into operation in the industrial sector.

Source: China News Service, February 26, 2010
http://www.chinanews.com.cn/cj/cj-gncj/news/2010/02-26/2139654.shtml

The State Council recently approved the Yangtze to Hanjiang Project, with an investment of RMB 6.2 billion. It is estimated that the construction work will start in March at the earliest. The project is to build a canal between the Yangtze River and the Hanjiang River in Hubei Province. It will be the largest modern canal in China and the largest water resource adjustment facility in the province. The canal will be around 67 kilometers in length and 3.7 billion cubic meters in annual water volume. The central governement will fund the entire project.

Source: Xinhua, February 26, 2010
http://news.xinhuanet.com/politics/2010-02/26/content_13051910.htm

A severe drought, which began in the fall of 2009, has plagued most of Southwest China and part of South China, affecting 11.88 million people, 800 million livestock, and 11.2 million acres of farmland, says the Office of State Flood Control and Drought Relief Headquarters (SFDH). 

Xinhua recently published an article by its Washington DC reporter on the relationship between Wall Street and Washington. Wall Street made a fortune in 2009 and the average income increased by 18%. The Obama administration is feeling really uneasy about this and his approval rate is sliding. Although the Wall Street “fat cats” are responding with lowered cash payments to their employees, the Whitehouse is actually the “Tom” in the cat-mouse game. The article pointed out that there is no fundamental conflict of interest between the two. “Jerry” is largely working with “Tom” for a PR show.

Source: Xinhua, January 24, 2010
http://news.xinhuanet.com/fortune/2010-01/24/content_12864554.htm

Global Times, under Chinese state daily news Renmin, recently republished an article by Outlook Weekly describing the loss of balance in the distribution of wealth in China. The rapid growth of the Chinese economy in recent years has created a large number of wealthy people. In 2009, the top 40 richest individuals all had over US$7 billion in net worth, while only 24 met the same standard in 2008. Research shows that the primary source of income for the wealthiest is the real estate market. The second primary source is the capital market. 19 out of the 40 richest individuals are in the real estate business. The wealthy in China accumulate wealth exceptionally quickly. This brings their method of obtaining income into question. Corruption, “grey income,” and monopolies are among the issues. The biggest problem, the article pointed out, is that the gap between the wealthiest and the average Chinese is getting larger and larger.

Source: Global Times, February 13, 2010
http://china.huanqiu.com/roll/2010-02/717742_2.html

Xinhua recently published an article reviewing the Chinese economy in 2009. The article started with mentioning a strong GDP increase of 8.7% which translates into RMB 33.5 trillion. “Almost the beacon that shines and leads the world economy,” the author claimed. He believed China’s accomplishments symbolized the fact that China is now a major economy in the world. This may get “some old capitalist countries” really worried.

However, the article also reminded that the Chinese per capita GDP is still below US$3,000, which is far behind the countries with tens of thousands of dollars for the same number. Therefore, any attempt that overstates China’s actual economic strength to increase Chinese responsibilities is unfair. As a rising world power, China needs to turn the economy from a “large” one to a “strong” one.

Source: Xinhua, January 25, 2010
http://news.xinhuanet.com/comments/2010-01/25/content_12864765.htm

China Publishing Group (CPG) held its annual meeting on January 28 and 29. The Deputy Director of the Press and Publication Administration Sun Shoushan praised CPG’s 2009 achievements. Sun put in print CPG’s future direction: being listed on the stock exchange and realizing assets and sales over 10 billion yuan (US$1.5 billion).

Sun outlined CPG’s development strategies: 1. Uphold the (Chinese Communist Party’s (CCP’s)) flag and not get diverted achieving the correct public opinion and publishing standards. 2. Strengthen itself financially to achieve the needed stock reform and listings. 3. Actively participate in public cultural service to gain public support; 4. Make great progress in the national effort of “going abroad” to promote Chinese culture and improve China’s cultural “soft power.” 5. Develop talent.

Ed: Founded in 2002, CPG is under the leadership of the CCP’s Propaganda Department and the administration of the Press and Publication Administration.

Source: Xinhua, February 1, 2010
http://news.xinhuanet.com/newmedia/2010-02/01/content_12911663.htm