Highlights from the EO print, issue no. 370, June 2, 2008

Profits at the End of Agro Production Chain
Cover Story
Chinese retailers have been reaping the lion's share of profit from produce sales while farmers were still struggling, according to research commissioned by three Chinese ministries. The research, which scrutinized the supply chain of nine types of produce, showed that on average, farmers enjoyed cost-profit rate of 31%, while supermarkets gained between 89% and 96%. On May 27, Chinese officials from the National Development and Reform Commission, Agriculture Ministry and Commerce Ministry had invited industry experts to discuss the findings. Experts cautioned that the findings must be read carefully, taking into consideration different taxes imposed on various segments of the supply chain. They also suggested the government lower agro taxes and cut highway toll collections for those transporting agro produce. 
Original article: [Chinese]

Multinationals Publicize Quake Donations
Cover
After appearing on a list circulated by netizens for donating "too little" to quake victims, multinationals with bases in China have been scrambling to counter public shaming and restore their reputations. Holding press conferences and frequently updating quake donation data charity works on official websites are among the counter measures.
Original article: [Chinese]

Chinese Officials Answer WTO Queries
News, page 3
China has thus far provided some 400 written answers to over 900 queries submitted by WTO members during its second Trade Policy Review (TPR) in late May. An official from the Ministry of Commerce told the EO that some of the questions were beyond the scope of TPR, such as policy on the yuan exchange rate. Some members had also questioned China's agriculture policy and demanded a more open market, however, Chinese officials answered that the country had fulfilled most of its commitments for an open market while the remaining protectionist measures were common practices in most countries.
Original article: [Chinese]

New Chief for Chinese State Council Research Department
News, page 3
The Chief of China's National Statistic Department (NSD) Xie Fuzhan would be appointed to head the research department under the Chinese State Council. The department functions as a think tank that drafts important government documents and leaders' speeches, and conducts studies to submit recommendations on government policies. Xie was a researcher under the State Council for 13 years, later he served under the NSD for seven years before being appointed as its chief 19 months later.
Original article: [Chinese]

Second Investigation Team on Collapses of Schools
News, page 7
The Ministry of Construction will deploy a second investigation team comprising of architectural and engineering experts to perform ground assessment of the reasons behind collapsed buildings in the Sichuan earthquake. One of the focus would be the collapses of schools, which by May 26 had killed 4,737 students, making up 7% of the total death toll in the 8-magnitude earthquake.
Original article: [Chinese]

Korean President Visits Quake Zone
News, page 8
Korean President Lee Myung-Bak became the first foreign head of state to visit the Sichuan earthquake zone on May 30. Lee was on a four-day state visit to China, his first since taking over the helm of Korea about three months ago. He had altered his itinerary at the last minute, including cancelling a corporate lunch in Qingdao, a strong-base for Korean enterprises in China, to make a detour to visit the quake zone, namely the badly hit Dujiangyan. Lee said the trip was to show Korea's solidarity with its closest neighbor in time of suffering. Lee's foreign diplomacy outlook – which he stressed to place 50% of his effort on the United States, and 20% each on China and Japan – has aroused suspicion among its northeast Asian neighbors.
Original article: [Chinese]

The Long Way Home
Nation, page 9
As a province that "exports" the most migrant workers, Sichuan has received many home-comers in the aftermath of the earthquake. These home-comers have endured a long journey wrought with anxiety in search of missing family members or just to confirm that things were well at home. They took various modes of transport and walked the last stretches impassable by vehicles, often to arrive at unrecognizable ground decimated beyond their expectations. Some were luckier to have found family members alive, thus strengthening their will to launch into the rebuilding efforts. The damages, however, are expected to drive another wave of people to leave Sichuan for better lives elsewhere.
Original article: [Chinese]

Promote Volunteerism
Comments, page 16
Some Chinese officials have said there were now enough volunteers in the Sichuan quake zone, and have called for interested parties to wait for later directives before going. Commentator Zhong Weizhi reflected on recent unfavorable comments towards volunteers posted on internet forums, as if volunteers were a burden. Zhong, however, believed one of the good things that had come out of the disaster was the rise in civic consciousness and community-based NGOs. He added the rebuilding process should be a joint effort between the government and community forces on the ground, adding this would be a good time for the two sides to foster trust and cooperation. 
Original article: [Chinese]

Words of a Slower Yuan Appreciation
Money & Investment, page 17 
Several research reports released by analysts deemed to have "official backgrounds" have caused volatility in the currency market and demand for yuan. The Chinese currency has been gaining strong against the US dollar since mid-April. However, its appeal seemed to be drooping as some anticipated a slower appreciation rate and intervention from the Chinese government. The speculation was fueled by several reports, including one from an analyst at the Bank of China, saying the yuan's appreciation had exceeded China's capacity. The Bank had to later issue a statement declaring that the report did not represent the Bank's stance.
Original article: [Chinese]

Revaluation after Consolidation of Telecom Industry
Money & Investment, page 22
Following the announcement that five telecom companies would be consolidated into three giants, market watchers believed the move added value to the companies in three aspects – advantages in long-term operational strategy, higher asset valuations and premiums for future and potential buy-outs or mergers, and higher market values. The main beneficiary, however, would be telecommunication equipment suppliers, as the three giants would be competing to outdo each other in technology, coverage and services, especially in the internet platform.
Original article: [Chinese]

The Malaysian Factor in Midwest Take Over
Corporation, page 25
The success rate of Sinosteel Corporation's attempt to buy-over Australian mining company Midwest Corporation apparently depended largely on a minority holder – Law Tien Seng, who is also the latter's deputy board chairman. The Malaysia-born Law holds 13.4% of Midwest's shares but purportedly could influence 40% of the shareholders. A shrewd and successful corporate figure, Law was once involved in a bribery case back home in Malaysia.
Original article: [Chinese]