Economy/Resources - 258. page

Xinhua reported that China will continue its current policy on Maritime Delimitation and island sovereignty. The issue involves China’s May 11, 2009, submission of information on the outer limits of the continental shelf beyond 200 nautical miles to the UN Commission on the Limits of the Continental Shelf (CLSC). China reiterates in the submission that China has sovereignty, but will put aside disputes to seek joint development with other countries. Most of submissions made by other countries to CLCS are for areas over which the submitters have disputes with China, Xinhua observed.

Source: Xinhua, May 18, 2009
http://news.xinhuanet.com/herald/2009-05/18/content_11394144.htm

Hong Kong based newspaper, Wen Wei Po, strongly supportive of the Chinese Communist government, published an article on May 15 to discuss the future direction of the Chinese economy. The article suggested that although tertiary industries such as the techology and services industries are important; it is very hard for them to compete against the West. Agriculture and basic industries still provide the primary support to Chinese economy. A future strategy emphasized in the article was to keep developing the economy’s export orientation which is believed to have been a successful approach thus far. The article also stated that the Chinese financial industry needs significant improvement, yet it should not follow the example of the West, offering too many complicated “gambling” financial tools which form what the article called the “Casino Economy”.

Source: Wen Wei Po, May 15, 2009.
http://paper.wenweipo.com/2009/05/15/PL0905150001.htm 

Famous scholar, Chi Fulin, who acts as an important advisor in Chinese reform and development research, believed that the Third Central Committee Plenary Session of the Seventeenth CCP National Assembly sent three important signals.

The first was rural reform, which he claimed was the central point connecting the rest of the reform strategy; the second was to stabilize the macroeconomic environment, which heavily relies on expanding rural markets;the third defined the focal point of rural reform – the increasingly larger gap between cities and rural areas, which was believed to be a primary reason for social conflicts.

Source: Xinhua News, October 28, 2008.
http://news.xinhuanet.com/politics/2008-10/28/content_10265488_1.htm

Ministry Industry and Information Technology has serious concerns over surplus in steel production and recently issued an urgent directive to curb the steel production plant. The notice titled “Control the Over Production in Steel Manufacturing” urged the commercial banks to discontinue the lending to those factories who continue to grow its production while disregarding market demand. The notice stated that “total production in 2009 only needs to maintain at 4.7 billion tons to meet the demand while the production output has exceeded between 25 – 30 percent.”

The latest statistics released by the Custom office suggested that the steel export in April was 1.4 million ton, 260,000 ton less than March and down 70.5 percent compared with the same period last year. April year to date export was 6.55 tons, down 59.5 percent compared with last year. For Jan and Feb, large to mid size steel factories lost 15.5 billion yuan, which have been five straight months of financial loss since last October. Among those, half of the factories with production output above 5 million tons suffered financial losses.

Source: May 13, 2009, 21st Century News Group
http://www.21cbh.com/HTML/2009-5-13/HTML_PUBN53A2EA2X.html

Foreign investment in China continues to decline in the past seven months. According to Ministry of Commerce, foreign investment in April was down 22.5 percent to US$5.89 billion compared with the same period of last year and 9.5 percent down from March. The countries with the largest decline were Korea, US and Hong Kong where Hong Kong accounts for 45 percent of total foreign investment in China.

Source: BBC, May 15, 2009 http://news.bbc.co.uk/chinese/simp/hi/newsid_8050000/newsid_8051200/8051229.stm

According to a white paper on disaster relief that the State Council Information Office released on May 11, 2009, changes in China’s climate, economic growth and urbanization are placing increasing pressure on the country’s resources and the environment. On average, from 1990 to 2008, about 300 million people every year were affected, 3 million houses collapsed, 9 million people were re-located, and direct economic damages reached more than 200 billion Yuan. According to the white paper, the 1998 flood of the Yangtze River, the 2006 Sichuan draught, the Huai River flood in 2007, the freezing rain and snow disaster in southern China in 2008 and the Wenchuan earthquake on May 12, 2008, were particularly damaging. 

Source: State Council Information Office of the People’s Republic of China, May 11, 2009 http://www.scio.gov.cn/syyw/ejtt/200905/t319397.htm

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