Economy/Resources - 258. page

The Global Times, under Chinese state-owned People’s Daily, published a report on various views about the strategy to get out of the “US Dollar trap”. All the scholars quoted in the report agreed that in the long run, China should reduce the amount of its assets valued in US Dollars. However, most of them agreed that it’s not wise to do so in the short term. Exit strategies discussed in the report included: increasing the use of RMB as a settlement currency, increasing stockpiling physical strategic resources and taking advantage of existing large US Dollar assets to gain more share in the current world financial system.

Source: Global Times, May 8, 2009.
http://finance.huanqiu.com/roll/2009-05/455186.html

The International Herald Leader, under Xinhua News, reported that a large number of Chinese exporting companies are dealing with more and more refused shipments. With the international financial crisis, various excuses are being used by foreign importers to reject shipped goods. Credit risks are significantly increasing. For example, in the first 2 months of 2009, Chinese private exporters alone lost $100 million due to refused shipments – an increase of 87.5% compared to last year.

 Source: International Herald Leader, May 8, 2009.
 http://news.xinhuanet.com/herald/2009-05/08/content_11334225.htm

Beijing plans to raise water prices to resolve the water shortage crisis due to the six year delay of “South-North Water Diversion” project. Water prices increased four times since 2001, from 3.01 to 5.04. The city is also considering monetary award to encourage reduced water consumption.

Source: Xinhua, May 11, 2009
http://news.xinhuanet.com/politics/2009-05/11/content_11348945.htm

According to Study Times, coal will continue to be the main source of energy through the year 2050, although the percentage of coal in China’s energy supplies may drop from 75% to 60%. “The basic reality of China’s energy is a ‘lack of oil, not enough gas, and a lot of coal,’ with uneven distribution of resources and economic development in the eastern and western regions.” Renewable energy such as wind power, solar power and biomass will hardly account for any meaningful percentage in the overall energy balance. The State should exercise caution with nuclear energy development, warns Study Times.

Source: Study Times, May 4, 2009
http://www.studytimes.com.cn/WebPage/ny1.aspx?act=0&id=2617&bid=4

China Youth Daily listed the challenges for college graduates to find jobs: One, irrational industrial structure makes manufacturing the strongest industry in China and other industries such as design, supply chain, and services that need more college graduates weak. Second, the large gap in social security benefits makes government or state-owned enterprises, offering more benefits, more attractive than agriculture or private companies, offering limited or even no benefits. Third, national monopolies prevent private enterprise from entering certain industries and thus creating jobs.

This year, China will have 7 million college graduates enter the job market.

Source: China Youth Daily, May 1, 2009
http://zqb.cyol.com/content/2009-05/01/content_2648156.htm

Although it has been affected by the global economic crisis, nonetheless, China’s media industry has grown to a record high in recent years, with expenditures exceeding 420 billion yuan in 2008, double the number in 2004.  Despite the decline in the economy that has resulted in obvious difficulties in the media industry, China still expects a gradual increase, possibly reaching 530 billion yuan in 2010.

Source: China News, April 27, 2009
http://www.chinanews.com.cn/cj/kong/news/2009/04-27/1666331.shtml

International Herald Leader, a newspaper under Xinhua, published an article reporting that it became popular for foreign business invested in China to take their money and run away, abandoning their companies or factories in China and without filing for bankruptcy.

There are reasons for foreign investors to choose the “flee” strategy instead of a normal exit process. First, China has a lengthy process for foreign companies to terminate business in China. The bankruptcy process lasts 65 to 165 days. Some local governments even drag it to six months or a year. Second, China’s law requires the company to bear “unlimited liability” for its debt even after it declares bankruptcy.

“(If it is) easy to enter but hard to exit, (it) is definitely not a good investment environment.” said a Japanese trade promoter in Beijing.

Source, International Herald Leader, April 24, 2009
http://news.xinhuanet.com/herald/2009-04/24/content_11248230.htm

China News reported that on April 12, 2008, Chen Lei, the Minister of the Ministry of Water Resources said that China lost more than eight million acres of cultivated land due to soil erosion in the past fifty years, averaging an annual loss of 160 thousand acres.

Chen Lei said that the northwest region loses one centimeter of surface soil every year. In some parts of northeast China, which has always had rich soil, the depth of cultivated soil has decreased from one meter to less than twenty centimeters. 77% of the land in northern China has less than 30 centimeters of surface soil.

Soil erosion not only destroys soil resources, but it is also a main factor for pollution. China’s scientists estimate that soil erosion creates economic loss of 2.25% of the GDP. The environmental damage is immeasurable.

Source: China News, April 12, 2009
http://www.chinanews.com.cn/gn/news/2009/04-12/1642204.shtml