Highlights from the EO print edition, issue no. 376, July 14, 2008
Upwards Curve of Farmers' Burden
Cover
A recent study found that in 2007 Chinese farmers shouldered higher costs of living for the first time since the agricultural tax was abolished some five years ago. Reasons identified for the increased expenditures included additional fees imposed by various local governments for housing and education in rural areas. For instance, some local authorities demanded private residential construction fees, education fees, schools examination paper fees, termite prevention fees, and so on. These extra charges were contrary to policy in recent years aimed at lowering such burdens for farmers through various subsidies. In some rural areas, such fees made up some 20% of the average income of farmers.
Original article: [Chinese]
Preventing Violent Social Unrest
Editorial, cover
Promoting public participation in China's developmental and reform projects, such as discourse prior to land acquisition, resident relocation, public facility construction and enterprise reform could reduce conflicts of interests that might lead to public disorder, argues this week's editorial. The recent social unrest in Guizhou province – where a police station, government and public property were vandalized during a protest procession related to the death of a teenage girl – highlighted a crisis of confidence amongst the public against the authorities. To prevent public dissatisfactions from erupting in the form of violence, more independent and effective judiciary and enforcement processes were needed.
Original article: [Chinese]
High Demand for Sponsors in China's Securities Markets
Cover
A short supply of sponsors for companies' offering and listing securities has driven up the market value of some 1,000 certified sponsor representatives in China. Under Chinese law, each public offering needed two sponsors, and each sponsor could only handle one project at a time. This regulation has caused red hot demand for sponsor representatives, leading to some having a three-fold pay rise in a year and becoming targeted by head hunters.
Original article: [Chinese]
Antitrust Investigation Bureau to be Formed
News, page 4
In anticipation of the Antitrust Law taking effective on August 1, an investigative bureau would be set up to look into monopoly behavior in the market. The bureau would be set up under the Ministry of Commerce while the National Development and Reform Commission and the State Administration of Industry and Commerce would also establish review and enforcement units to investigate price monopolies and the abuse of monopoly status.
Original article: [Chinese]
Minor-Property Right Might be Legalized
News, page 4
A Chinese official from the Ministry of Land and Resources recently said that it would be too costly and counter-productive to forcibly dismantle all houses and apartments which had been unlawfully built on collectively-owned land by village communities for commercial gains. The statement signaled a possible recognition for the legal trading of these so-called minor-property right units, which have mushroomed in the countryside and townships in recent years. Though these units could have formed some 20% of the housing supply in some townships, the sale of these units, especially to urban residents, has been deemed unlawful.
Original article: [Chinese]
China's Economy Cooling Down
News, page 7
A recent report on China's economic forecast by the Chinese government revealed that the threat of the economy overheating have been averted. The report showed that for seven consecutive months, the country's integrated macroeconomic index had been declining marginally. Following the report, some market watchers and industry players expressed hopefulness that the government's tight macro control measures might be loosened up slightly. Original article: [Chinese]
The Luxurious Dream in Energy-Corridor
Nation, page 9 – 12
After the resource-rich inner Mongolia of China accumulated wealth through mining, more ambitious projects ensued, including that of erecting a massive art and creative park stuffed with a museum and 100 villas to be created by architects from around the world. High prices of coal brought along not just prosperity, but also other illicit businesses into the region while the wealth gap among the people widened.
Original article: [Chinese]
Cash Subsidy in Dongguan Undelivered
Nation, page 13
Though a month has passed since the Dongguan municipal authorities approved the issuance of 1,000 yuan worth of cash subsidies each to those in the lower income bracket in view of rising costs of living, some 40% of the 120 million yuan hardship alleviation fund has yet to be delivered. One major reason behind the delay was due to difficulties in identifying those covered by the policy. As those under this category lack a stable job and failed to produce pay slips or other evidences to support their claims, a complicated investigation process was launched to ascertain their status. Those roped in to conduct the assessment include residential representatives and community committees.
Original article: [Chinese]
Beijing Short of Migrant Workers
Nation, page 14
The Sichuan earthquake, overseas employment opportunities and better development prospect in northwest China have all led to a reduction of migrant workers in Beijing. As market demand for labor remained strong this year, some 120,000 vacancies have yet to be filled. The shortage of labor was especially palpable in the construction, domestic services, restaurant, and retail apparel sectors.
Original article: [Chinese]
Tianjin Edible Oil Trading Scandal
Corporation, page 25
An edible oil trading company in Tianjin – Zhongsheng Grains & Oil Industrial Company – has its thousands of tons of edible oil stocks impounded, bank account frozen, fix assets sealed and employees left unpaid after its boss vanished under suspicion of "stealing" clients' orders. Police reports were lodged by clients from several provinces across China that prompted courts to freeze the company's assets. It was believed that the company's boss, Wang Wei, had siphoned some 400 million yuan worth of palm oil from clients and sold them at low prices through prepayment arrangement to others.
Original article: [Chinese]
Highway Tycoon Fund Swindling Case
Corporation, page 27
The investigation into fund swindling by Shanghai-based highway tycoon Liu Genshan might uncover more corruption cases among government officials. Liu has been detained by the Chinese police since early June. His company, Maosheng Group, with diversified interests in highway construction, housing developments, investment consultancy, asset management, trading, restaurants and more, had faced swarms of creditors demanding repayment after the news broke. The investigation is still ongoing.
Original article: [Chinese]
