Highlights from the EO print, issue no. 366, May 5, 2008
Tearing Down Barriers on Freedom of Information
Editorial, page 1
Though the Open Government Information Regulations have come into effect on May 1, the way a local government handled a disease that killed 20 children in a month has cast doubts on authorities' sincerity to be more transparent to the public. Our editorial agreed that local health officers in Fuyang had indeed alerted higher authorities about the EV71 viral infection – a hand, foot and mouth disease – but that the later had failed to keep the public informed in time, resulting in rumors and panic. The new law states that the government has the duty to disclose matters related to public interests, and health issue is within its scope. Our editorial urged the government to have true courage in ensuring the materialization of freedom of information and the public's rights to know.
Original article: [Chinese]
Bleaker Time for State-Owned Enterprises
Cover story
As a first quarter report showed that the profit margins of state-owned enterprises (SOE) under the central government had registered a lower growth rate compared to the previous year, the companies have been warned to prepare for a "tight two years ahead". In a recent meeting with 150 central SOEs, the State-owned Assets Supervision and Administration Commission (SASAC) had called for prudence in spending. Declining exports, a credits crunch and uncertainties in global markets were among the Commission's concerns, and its chief Li Rongrong warned the SOEs to keep a close eye on their debts and costs.
Original article: [Chinese]
May Day at Carrefour Outlets
Human interest, cover
This Labor Day was a testing time for French hypermarket chain Carrefour and its customers. The call for boycotting Carrefour with over 100 outlets in China had been circulating via the internet and text messages over mobile phones for weeks, and May 1 was the day chosen to "empty out customer flow" at the chain. Police were dispatched to various Carrefour outlets on that day to prevent untoward incident as some had fanned anti-French sentiment following the disruptions of the Olympic torch relay in Paris last month. Checks at several Carrefour outlets showed there were signs of reduced customers flow, and staff interviewed had said they were working under public pressure while customers insisted that they were buying "made-in-China" at the French joints.
Original article: [Chinese]
Differing Formulas for Chinese Taxation Reform
News, page 3
The Chinese Ministry of Finance has proposed for income taxes – both corporate and individual – to be submitted entirely to the Central government for wealth redistribution nationwide; while the National Development and Reform Commission (NDRC) thinks that the ratio of income taxes between Central and local governments should be 6:4. The former has suggested value-added taxes to be shared between the central and local governments on a ratio of 65% to 35%; but the differing formulas are part of the Chinese taxation reform currenty under study. Both the formulas have to some extent highlighted the need to increase the central government's control of tax collections, contrary to expectations at the local level.
Original article: [Chinese]
EU Disappointed Over SOE Exclusion from China's Government Procurement Agreement
News, page 6
China has insisted on excluding state-owned enterprises and local governments' purchases from open competition under the WTO's Government Procurement Agreement. In a dialogue that ended April 28 between European Union (EU) and Chinese officials, China stated its reasons for such refusal, saying its number of SOEs was vast when compared to other developed nations such as the United States. As a result, China said if over 100 SOEs were included, that would lead to an unbalanced level of market liberalization between nations under the Agreement. The EU officials have expressed disappointment over the Chinese stance.
Original article: [Chinese]
Plan to Reduce Taxes for Private Hospitals
News, page 6
A new healthcare reform formula to promote the growth of the private sector may reduce a sales tax slapped on private hospitals, according to a source close to the Ministry of Health. Presently, private hospitals in China are required to pay 5.5% of sales tax in addition to 33% of corporate taxes, and over ten other types of miscellaneous taxes. Dubbed as the "adopted son" of the Chinese health care system, private hospitals are paying 16% more taxes than public hospitals, which also enjoyed state subsidies.
Original article: [Chinese]
Chinese Real Estate Moguls Visited Taiwan
News, page 7
A group of mainland real estate moguls – who have a combined worth of 125 billion yuan – have made an unprecedented study trip to check out the property market in Taiwan just a month after a new administration came to power in the island. The group included Pan Shiyi and Zhang Xin of SOHO, Fenglun of Vantone, Liu Changle of Phoenix Satellite Network and Zhong Cheng Letian Developer, and Li Silian of R&F Properties in Guangzhou. The group had received high profile media coverage on the island, as words of Chinese developers eyeing big property investments there spread.
Original article: [Chinese]
Fuyang's Hand, Foot and Mouth Disease "Outbreak"
Nation, page 9 – 11
Over 1,800 cases of EV71 viral infection and 20 deaths have been recorded in Fuyang, Anhui Province by April 29, sparking public fear and panic as health officials scrambled to control public relations damage a month after the first incident took place. The local health authorities had drawn flak for downplaying the issue in the early stages, and the public had criticized them for failure to disclose timely information, leading to more children being infected.
Original article: [Chinese]
Declining Gold Futures
Money & Investment, page 19
The value of gold has dropped below 900 dollars in the futures market, a decline of over 100 dollar in about a month. Market analysts have warned that the slid might continue. Some suggested that crossed markets trading between domestic and international to make spread gains was one of the reasons behind the slid.
Original article: [Chinese]
Cobuyor Launching New Model for E-Commerce
Corporation, page 31
Cobuyor, a Chinese online business platform, has introduced new game rules for e-commerce unlike others. Businesses hosted by Cobuyor are neither free nor needing an annual member fees, unlike other leading e-commerce platform like Taobao and Alibaba. Instead, the members would pay in percentage of their sales volume. In addition, clients could join hands to buy in bulks for wholesale discount and to earn points for future spending. Cobuyor has also introduced the idea of “firsts in the queue discount”, meaning the first buyer of an item would pay less than the second, and the second would pay less than the third, and the item's pricing would go higher as its stock dwindled.
Original article: [Chinese]
