Economy/Resources - 252. page

Xinhua Net reported on Nov. 30 that Chinese Premier Wen Jiabao commented on international trade after the China-Europe Summit. Wen said that it was unfair to ask China to increase the RMB exchange rate while applying protectionism against China. He believed the request was actually an effort to restrain China’s development. Wen also suggested that keeping the Chinese currency stable benefits the Chinese economy as well as the recovery of the world economy.

Source: Xinhua, November 30, 2009
http://news.xinhuanet.com/world/2009-11/30/content_12564226.htm 

According to a Xinhua’s International Herald Leader’s article on December 3, 2009, Chinese products have been experiencing three tribulations overseas: exposure of the tainted products, becoming anti-dumping targets, and being misinterpreted by those wearing “tinted glasses.”

Toxic toothpaste, tainted toys, poisonous dumplings and milk … have led Chinese products into a “poisonous” crisis. Meanwhile, Chinese products are becoming “anti-dumping” targets due to the cheap price supported by cheap labor. In addition, westerners view Chinese goods with tinted glasses, labeling “Made in China” as a “China’s foreign economic expansion tool” and blaming Chinese businessmen because they never consider social values such as human rights, environment and safety issues.

Source: Xinhua’s International Herald Leader, December 3, 2009
http://news.xinhuanet.com/herald/2009-12/03/content_12580393.htm

A Ministry of Water Resources official released that there are about 270 million farmers with no access to safe drinking water. Besides pollution, excessive fluoride arsenic, manganese, brackishness and other issues are found in drinking water in some of China’s rural areas. “According to the tests conducted by the Ministry of Health last year and this year, roughly only 48% of the water projects that have been completed meet government standards. When people look at the water, it appears very clear but the bacteria exceeds the standard,” said the official.

Source: China Economy Net, November 23, 2009
http://www.ce.cn/xwzx/gnsz/gdxw/200911/23/t20091123_20480090.shtml

According to China Economic Weekly under the People’s Daily, since the opening of the economy began, China has transitioned from a country with a narrow income disparity to being one of those with the largest income disparity. “On the surface, it is a matter of the economy, but at a deeper level, it is a matter of system and policy.” A proposed guidance on redistributing revenue was submitted to the State Council for approval close to six months ago and it remains pending. The guidance was meant to “smooth the distribution structure among the State, enterprises and the people.”

The BBC reported that China’s disparity "has gone beyond the reasonable limit" according to many commentators. There is a strange situation existing in China. That is, while the poor have increased hatred and dissatisfaction, the rich are also complaining about society due to the increasing violence and crimes.

Source:
1. Chinese Economic Weekly, 41th Issue, 2009
http://paper.people.com.cn/zgjjzk/html/2009-10/28/content_370333.htm
2. BBC Chinese, October 27, 2009
http://www.bbc.co.uk/zhongwen/simp/indepth/2009/10/091026_china_richandpoor.shtml

Xinhua reported that the US Treasury Department published a report acknowledging that China did not manipulate its RMB currency. Obama took a strong position at the beginning of his presidency, claiming China did manipulate the RMB. The new report indicated that his administration is loosening its position. However, the United States is still maintaining a double-standard on currency policy. Compared to the RMB’s over 21% appreciation over the US Dollar in the past several years, the US Dollar’s rapid devaluation is more alarming, but the US government is keeping quiet about it. The newly published report still believes the RMB is undervalued, an indication that the United States is still playing the currency card to apply pressure on China.

Source: Xinhua, October 16, 2009.
http://news.xinhuanet.com/world/2009-10/16/content_12246002.htm

By the end of September, China Investment Corporation (CIC) completed phase one of its acquisition of a 45% share of Nobel Holdings Investments Ltd., a Russian oil and gas company. The second phase will include investment in assets around the oil field. The entire deal amounts to $300 million. This move is only one month after CIC spent $939 million to purchase 11% of Global Depositary Receipts (GDR) of a Kazakhstan oil company. Experts suggested that this current series of Chinese acquisitions is the result of the devaluation of US Dollar. CIC’s investing into natural resources is a new trend in its investment strategy.

Source: China Economy Net, October 16, 2009.
http://www.ce.cn/xwzx/gnsz/gdxw/200910/16/t20091016_20214735.shtml

The Qiushi Journal, publication of the Communist Party of the China Central Committee organs, reported that China has a large government workforce that is paid through fiscal appropriations. It is estimated that over 40 million people are either direct government staff or members of party organizations. The aforementioned number increases by 20% annually.

Let’s take a look at Xupu County, Hunan Province. In 2007, its local tax and income was 170 million Yuan, while salary-related spending was 280 million Yuan.

Source: Qiushi Journal, September 24, 2009
http://www.qsjournal.com.cn/wz/200909/t20090924_12215.htm

College students watched the online broadcast of the October 1 parade while exchanging instant messages with friends. The online broadcast recorded 500 million visits that day and the simultaneous viewers reached 2.62 million. This reflects the boom of new Internet based media. Another major branch of new media is the cell phone. China currently has 680 million cell phone users which include 155 million users who go online with their phones. Additionally, digital cable is widely spreading in cities. It’s becoming a new interactive way of communication. New Media are significantly impacting people’s lives and are becoming an important channel for citizens to speak their voices.

Source: Xinhua, October 9, 2009.
http://news.xinhuanet.com/world/2009-10/09/content_12200850.htm