Highlights from the Economic Observer, issue no 358, March 10th 2008  

Let All Enjoy the Fruits of China Inc.
Cover story 
A recent study by the National Statistics Department has revealed the growth rate of income for the state treasury and corporate sector have risen much faster than the income of individuals in recent years. Government income made up some 30% of last year's GDP, leading to accusations that the government has been imposing excessive taxes, a charge the government has refuted. But during the ongoing top legislative and political meetings in Beijing, delegates from various provinces and groups have called for lower taxes, saying there should be a better redistribution of the fruits of China's bourgeoning economic growth.
Original article: [Chinese]

A "Soya Document" in the Making 
Cover 
A new regulation code-named the "Soya Document" is being drafted to protect China's domestic soya producers and strengthen food security, a source from the State Administration of Grain has told the EO. About two thirds of China's demand for soya beans is met through imports, mainly via four international food supply companies. In addition, foreign-funded companies made up about 40% of the domestic soya bean processing industry. The document in the pipeline is likely to introduce technical assistance and tax incentives to stimulate domestic firms and includes suggestions to limit further foreign capital in the sector.
Original article: [Chinese]

The Role of a Delegate 
Cover, Editorial 
Paper industry giant and billionaire Zhang Yin has drawn flak for the proposals she presented at the 11th Chinese People's Political Consultative Conference (CPPCC) recently. She has been accused of side-lining the larger public interest and speaking on behalf of her own interest group after calling for the exemption of labor-intensive industry from signing open-ended term employment contracts, for the lowering of tax rates from 45% to 30% for those earning monthly income above 100,000 yuan, and for tax deductables for firms importating of high technology equipment used for preventing pollution. Our editorial argues that criticisms launched against Zhang are reactionary, saying the CPPCC is a platform for various interest groups to come together and voice their respective concerns. Zhang, being a representative of the corporate sector has a duty to push for the latter's interest, just as a farmer delegate would lobby for agricultural issues.
Original article: [Chinese]

Pig Farming has Become a Business for the Rich 
News, page 6
Many small-time farmers have turned away from the pig breeding industry due to the long wait for returns and high cost of feed. But for large-scale breeders with tens of thousands of pigs, the industry's outlook is better than ever, with pork prices expected to climb even further this year.
Original article: [Chinese]

Interview: Former Taxation Official 
NPC and CPPCC special, page 16
Xu Shanda, former deputy chief State Administration of Taxation is of the opinion that China has much room to cut taxes for the larger population. He has suggested raising the tax threshold for personal income and individual business entities. He has also called for a more long-term tax cuts strategy than the current ad-hoc, case-by-case approach.
Original article: [Chinese]

Government Subsidy for Sinopec
Money & Investment, page 23
Sinopec's refinery businesses have suffered losses from the rising global crude oil prices and the rare snowstorm that hit China just before the Spring Festival. The state-owned enterprise is rumored to have secured a government subsidy to cushion its losses, and sources suggesting an amount between 10 and 20 billion yuan.
Original article: [Chinese]

China Telecommunication Industry to be Restructured
Info-Tech, page 38
The Chinese telecommunication industry is expecting to undergo a restructuring soon, trimming the current five telecom empires down to three. Smaller players, such as China Unicom, are eager to forge some agreement with their larger counterparts before the restructuring, which an official has hinted will kick off in the first half of the year. According to sources, China Telecom is considering to take over China Unicom's C network with some 40 million users.
Original article: [Chinese]

A School that Nurtures Champions
Lifestyle, page 49
The Beijing Shi Chahai Sports School, which is going to celebrate its 50th anniversary this year, is a place where both dreams are realized and scuttled. The EO visits the school to watch some dreams in the making, and interviews students as young as 7-year-old.
Original article: [Chinese]