Highlights from the Economic Observer, October 22nd 2007, issue no.338

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Reforms in Tune with Globalization
Editorial
The Chinese Government should adopt more market-oriented policies and consider global impacts when formulating macro-economy intervention measures, our editorial urges. Future reforms and opening up policies that stress international cooperation could help the country meet the challenges of globalization.
Original article: [Chinese]
 
Battling for TV Market Share
Cover Story
Domestic television makers have lost their dominance in the flat screen market to foreign brands, according to a market survey report. While local makers are busy exploring the global market in recent years, their home base is under attack, and foreign brands have now gained 57% of the flat screen television market share in China.
Original article: [Chinese]

Rush to Spend
News, page 3
The government has ordered various ministries to speed up spending their 2007 budgets, warning that failure to do so will result in a cut in next year's funding. The goal is to jolt the bureaucracy into executing projects planned for this year, and to prevent them from making unrealistic plans requiring big budgets in the future.
Original article: [Chinese]

Move to Restrain Salary Bumps in Public Firms
News, page 4
The government is moving to curb excessively high salaries among high ranking personnel in state-owned firms. The average salary in public enterprises that come under the direct control of central government – especially those in monopolized industries – is said to be 87% higher than the national average salary for many other industries.     
Original article: [Chinese]

Tianjin Nurturing High Tech Enterprises
Nation, page 9
Tianjin local government will fork out some one billion yuan per year in taxes on behalf of high technology enterprises to the central government starting next year. The five-year incentive seeks to nurture such businesses in the new Binhai Industrial Park.   
Original article: [Chinese]

New Force in Financial Sector: Pawn Business
Nation, page 11
Zhejiang province plans to make pawn businesses a new, significant force in providing credit. Sources say is it suggested that pawn businesses seek public listing in order to raise more funds and strengthen its capacity to provide loans.
Original article: [Chinese]

High-Frequency Transactions for China Post Fund
Money & Investment, page 23
The EO looks into the curiously high frequency of transactions in the China Post Fund, which has had a net worth increase of 215% thus far. We discuss the worrisome trend of new fund management companies expanding rapidly in too short a time. 
Original article: [Chinese]

Restructuring Leads to Chaos   
Corporation, page 25
The EO investigates Wuhan Machine Tool Works, whose restructuring has gone awry. The company, which was bought by a foreign investor two years ago, is shrouded in scandal following accusations of contract violation, questionable lay offs, and illegal financial transactions. As a result, the authorities have launched a cross-border investigation.
Original article: [Chinese]

China's Constitution in the early 20th Century
Observer, page 45
Observer takes a retrospective examination of the Chinese constitution in the early 1900s, its inspirations, and its failures. The constitution was drafted after the Xinhai Revolution in 1911, which ended the monarchy system in China.
Original article: [Chinese]

The Challenge of Air Quality During the Olympics
Olympic, page 59
Beijing is rallying experts and equipment in order to improve air quality during the Olympics. But will it be sustainable beyond the Games?
Original article: [Chinese]