Xinhua quoted several government researchers, stating that China would not increase interest rates to counter inflationary pressure, since doing so would most likely attract international “hot money” to China and hurt China’s economy. Instead, China will rely on lending controls, such as increasing the ratio of lenders’ cash reserve requirements. On December 10, the Bank of China increased the reserve requirement ratio by another 50 basis points, which is the third increase in one month and the sixth in 2010.

In November, China’s CPI increased 5.1% over the same month in 2009. The CPI for food increased 11.7% over the same period last year. Since the global financial crisis began, China has added 17 trillion yuan (U.S. $2.6 trillion) in new loans and the supply of renminbi has reached 70 trillion yuan (U.S. $10.6 trillion).

Source: Xinhua, December 14, 2010
http://news.xinhuanet.com/fortune/2010-12/14/c_12879617_3.htm

On December 10, 2010. People’s Daily published an article discussing the development of the culture industry in China. The article stated that the government’s planning for the culture industry and its policies has played an important role in the rapid development of the culture industry. During the 11th Five Year economic development cycle, provinces invested 2.5 billion yuan (US $400 million) in developing the culture industry. The government also worked with several top universities, including Shanghai Jiao Tong University, Beijing University, and Tsinghua University, to establish culture industry research centers. A major tenet on the theory side was that the state-owned culture business and the market-based culture industry should co-exist and be the “two wheels” that propel cultural development.

Source: People’s Daily Online, December 10, 2010
http://culture.people.com.cn/GB/13443697.html

China News Service (CNS) reported that Deputy Prime Minister Zhang Dejiang, who is also a member of the Politburo of the CCP Central Committee, recently spoke at the opening ceremony of the World High Speed Railway Conference, saying that China considers the high speed railway industry a strategic emerging industry. The government is giving this industry a high priority. In his speech, Zhang positioned safety as the top focus. He also emphasized “independent innovation” and developing China-owned intellectual property. Zhang called for action on the “Go Out” strategy in this industry as well. This is the first time that the three-day World High Speed Railway Conference was held outside of Europe. The Conference was hosted jointly by the Chinese Ministry of Railways and the International Union of Railways (UIC, Union Internationale des Chemins de Fer).

Source: China News Service, December 8, 2010
http://www.chinanews.com.cn/cj/2010/12-08/2706780.shtml