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87 People Arrested Since March 1 for Violating HK Baby Formula Limits

A new amendment to Hong Kong’s export and import law took effect on March 1, 2013, which allows persons who are 16 years old or above to carry only two cans, or 1.8 kg, of baby formula with them when they leave Hong Kong. Violators face fines of up to HK$500,000 (US$64,500) and two years in prison. In the past two years, the shortage of baby formula in Hong Kong has been acute because the milk that is widely distributed in Mainland China is often tainted. Mainland Chinese parents no long trust the quality of mainland-produced infant formula, so they come to Hong Kong to purchase baby formula because of its high quality and inexpensive price.

In the past several days, 87 people have been arrested in Hong Kong for violating the new limit on the amount of infant formula that can be taken to the mainland.

Source: Xinhua, March 5, 2013
http://news.xinhuanet.com/gangao/2013-03/05/c_124419631.htm  
http://www.hkcna.hk/content/2013/0305/181785.shtml
http://www.hkcna.hk/content/2013/0304/181666.shtml
http://ph.news.yahoo.com/hk-sets-baby-formula-limits-033002438.html

Xinhua: With Rapid Urbanization, Who Will Grow Grain in China?

By the end of 2011, the number of Chinese in urban areas reached 51.3 percent of the population; more than 250 million migrant workers from the countryside reside in cities. “To solve the problem of ‘who will grow grain’ tomorrow is an urgent priority.”

“On the one hand, rapid urbanization has resulted in the loss of high quality arable land, a mass departure of rural young adults, a continuous increase in labor costs, and a lack of successors for food production. On the other hand, with rapid economic growth and rising incomes, the structure of the Chinese diet has been changing rapidly. The amount that many families spend on meat exceeds their spending on staple foods, which has caused a surge in the demand for feed grain.”

Source: Xinhua, March 3, 2013
http://news.xinhuanet.com/fortune/2013-03/03/c_114869161.htm

China Review News: China to Establish More Aircraft Carrier Harbors for More Combat Tasks

On March 1, 2013, China Review News published an article titled, “Expert: China to Establish More Aircraft Carrier Harbors for More Combat Tasks in the Future.” On February 27, 2013, China’s first aircraft carrier the "Liaoning," docked for the first time at a military port in Qingdao after having left its former home port in Dalian on February 26, 2013. According to the article, China will build more aircraft carriers for combat tasks and will establish a harbor system with several harbors where aircraft carriers can dock.

Source: China Review News, March 1, 2013
http://www.zhgpl.com/doc/1024/5/4/3/102454307.html?coluid=4&kindid=18&docid=102454307&mdate=0301114856

China News: General Staff Headquarters Announced Military Is Ready for War

China News recently reported that the General Staff Headquarters of the People’s Liberation Army (PLA) declared that the Chinese military is ready for war. The Army has planned over forty exercises this year across different regions as well as different branches of the military. Representatives from the General Staff Headquarters suggested that the military is focusing on strengthening its capabilities of guarding China’s core national security interests; the army is now on high alert with a high readiness for war. The key focus of the planned exercises is the joint combat capabilities among the army, the navy, the air force, as well as the China’s missile and nuclear forces. The anti-missile troops and the military police forces are also part of the grand exercise plan to be ready for war.
Source: China News, February 26, 2013
http://www.chinanews.com/gn/2013/02-26/4598033.shtml
http://mili.cn.yahoo.com/ypen/20130228/1629788_1.html

HSBC February PMI Number Reached a Four-Month Low

Economic Information, a daily newspaper under Xinhua, recently reported on the February HSBC PMI (Purchasing Managers Index) number for the Chinese manufacturing industry. The February number was 50.4, which was the lowest in four months. Experts expressed the belief that the primary cause of the decline in the PMI was the high pressure on the export side, especially as the demand from the United States suffered a decline. Some also thought the slowness caused by the Chinese New Year celebration was another factor affecting the low PMI number. Many small and mid-sized manufacturers in the Chinese coastal area are experiencing difficulties in their operations. PMI is an indicator of financial activity reflecting the purchase managers’ acquisition of goods and services. A PMI number below 50 typically reflects a decline.
Source: Economic Information, February 26, 2013
http://dz.jjckb.cn/www/pages/webpage2009/html/2013-02/26/content_71548.htm?div=-1

CRN: China Is Tightening Its Currency Policy

China Review News (CRN) recently reported that the Chinese central bank has started withdrawing RMB 910 billion yuan from the open market. Experts expressed the belief that this is a sign that the Chinese government is tightening up its currency policy. There are three forces behind this move: (1) Since the last quarter of 2012, capital inflow has significantly increased; (2) The interest rate before the Chinese New Year has remained stable, which indicates an ample currency supply; (3) There is an expectation of increased inflation and real estate prices are high. It seems the central bank is attempting to limit the currency supply in order to control the level of money lending activities. However, since the economic recovery is still weak, it may be too early to predict an interest rate hike. 
Source: China Review News, March 2, 2013
http://www.zhgpl.com/doc/1024/5/5/1/102455150.html?coluid=53&kindid=0&docid=102455150&mdate=0302082735

Scholar: 80 Percent of China’s Sludge Not Processed

He Yue, a professor from China’s Tianjin University, recently said that, according to the China’s Sludge Treatment and Disposal Market Analysis Report, China’s annual urban sewage treatment capacity is equivalent to the total storage capacity of the Three Gorges Reservoir. However, 80 percent of the sludge from this "reservoir" is not dealt with, easily causing secondary pollution to the environment. "A large amount of toxic and harmful sludge has become a time bomb for the urban environment." He said that the sludge contains nitrogen, phosphorus, potassium, heavy metals, parasite eggs, and germs. It will not only endanger the environment of the underground water, rivers, and farmland, but also human health through the food chain. "China’s sewage treatment industry has developed rapidly, but the byproduct sludge has not been disposed of reasonably and safely." He said, this "sewage reservoir" produces nearly 22 million tons of dewatered sludge annually, of which only 20 percent receives the necessary processing. It has been estimated that by 2020 China will see as much as 60 million tons of sludge per year.

Source: People’s Daily, March 4, 2013
http://politics.people.com.cn/n/2013/0304/c70731-20660367.html

Chinese Space Scientist: Chang’e 3 Mission to Launch in 2013

China’s National Space Administration has scheduled a launch of the Chang’e 3 for a lunar exploration mission in late 2013. According to Ye Peijian (叶培建), a space scientist and the chief engineer for the program, the mission will operate by incorporating a robotic lander and a rover; it is part of the second phase of the Chinese Lunar Exploration Program.

This will be China’s first lunar rover and the first spacecraft to make a soft landing on the Moon since the Soviet Luna 24 mission in 1976. It is named after Chang’e, the Chinese goddess of the Moon and is a follow-up to the Chang’e 1 and Chang’e 2 lunar orbiters. Chang’e 3 will perform tasks that include a soft landing on the Moon, lunar surface exploration, survival on the lunar surface, deep space communications, remote operations, and a carrier rocket directly entering the Earth-Moon transfer orbits. The Chang’e 3 lander is said to be carrying an astronomical telescope and  an extreme ultraviolet camera. The rover is said to be carrying radar for lunar exploration.

Source: Xinhua, March 3, 2013
http://news.xinhuanet.com/2013lh/2013-03/03/c_114868837.htm