By English edition staff
Published: 2008-05-26

Ministry of Finance to Redo Budgets After Quake
From News, page 3
The Ministry of Finance will be re-calculating the 2008 budget after the Sichuan earthquake. On May 21, the State Council's Standing Committee allocated 70 billion yuan for post-disaster reconstruction, 60 billion of which is coming from funds normally reserved for budget stabilization. The exact uses of the money has yet to be set. Another 25 billion yuan will come from the so-called "premier funds" created early this year, which require a personal directive by China's premier to be spent. These funds were already tapped by the ice storms that struck southern China in late February and March

Banking Commission Orders Disaster Area Loans Cleared
From News, page 4
Chinese commercial banks will have to classify loans made unpayable by the earthquake as "bad debt" and pick up the bill. Experts put the cost to the industry anywhere from 5 to over 20 billion yuan, as the disaster area was largely uninsured against earthquakes. At least five million have been left homeless, and 436,000 buildings were either destroyed or severely damaged.

Not a Star in the Sky for Disaster Prevention Bureau
From News, page 7
Of the 19 satellites following the Sichuan disaster zone, not one belongs to China's Disaster Prevention Bureau. The agency has been struggling to keep up with the developments of barrier lakes created by landslides after the earthquake. According to Yang Siquan, the agency's vice-director, their remote sensing does not cover the full area affected-- for example, they have data on Beichuan, but as of ten days after the earthquake, did not have satellite or remote sensing data for Qingchuan. "But from the data that we have received, it's hard to be optimistic," he told the EO.

Disaster Area Special Report
Nation, pages 9-16
EO journalists report on the ground from Beichuan, Wenchuan, Mianyang, Tianshui, and Chengdu. The special's cover story, Beichuan's Three Days, follows the harrowing first three days of the earthquake, where rescuers scrambled to unearth and care for buried victims, including those trapped underneath flattened schools.

Insurance Compensation Post-Earthquake
Money & Investment, page 21
Insurance industry sources have estimated that compensation pay-outs in the aftermath of the May 12 earthquake would run between 3 and 10 billion yuan. Based on data from the China Insurance Regulatory Commission, a total of 190,000 quake-related claims were made, and over five million yuan of was paid as of May 22. One reason for what appeared to be a low amount of compensation despite the staggering losses, according to industry sources, was due to a lack of disaster-related insurance mechanisms. At present, the grounds for insurance claims was mainly personal accident.

Rumors Spurs Stock Prices of Sinopec
Money & Investment, page 22
Rumors that the Chinese Government would consider lifting controls on petrol prices in June have led to a boom in stock prices for oil companies in the Chinese Stock Exchanges. On May 21 alone, there were 20 purchases of 900,000 shares in the state-owned Sinopec; that same day, PetroChina's share prices had gone up by 6.63%. Market analysts dismissed the rumors as lack of common sense, as lifting controls on petrol and diesel prices would add pressure to rising costs and impact the production industry the most.

The Politics of Corporate Donations
Corporation, page 25
The May 12 earthquake has drawn generous donations from the corporate sector for quake relief. Genuine care and empathy aside, corporate donations in times like this could reshape a company's image and impact its future competitive edge. In the ongoing donation drive, some companies have earned applause from the public and consumers for timely and big contribution; while some have been criticized for making insensitive comments and paltry donations in comparison to their earnings. Both local and multinational companies are being rated by the public, mainly based on sum of contribution. However, the public in general has neglected that different ways of donations – for example cash, free products or services – would incur different tax relief or burdens for donors.

Restructuring Plan for Telecommunication Industry Finalized
Corporation, page 28
A state-led consolidation exercise for the Chinese telecommunication industry has finalized its latest round of streamlining with five players combined into three. China Telecom and China Unicom's CDMA network will join forces as New China Telecom; China Unicom's GSM network will merge with China Net to become New China Unicom; while China Mobile will absorb China Tietong and become New China Mobile.

Commercially Developed Housing Impacted by Earthquake
Property, page 37
Many homebuyers of commercially developed properties in Sichuan are uncertain of who would be held responsible for cracks and damages on their properties after the earthquake. Though the buildings did not collapse during the quake, owners are concerned over safety and repair costs. Some buyers have signed contracts and paid initial installment while waiting for developers to complete their projects. But following the quake, cracks have appeared on structures near completion, and many homebuyers claimed they failed to get assuring replies from developers.  

Post-quake Counseling for Children
Lifestyle, page 49
Volunteers with experiences in child psychology have gathered in earthquake-hit areas to help affected children recover. The volunteers have come from all over the world, some professionally trained, while some with childcare backgrounds. One of the first steps suggested for child psychology recovery is to reestablish an orderly life, such as schooling or activities that have a consistent rhythm and involve team work. Experts warn that some children appear to be fine right after disaster hit but develop problems in the long run. They warn that the disaster-hit areas need long term psychological recovery plans, yet many volunteers might pull out after a short stint or when the most crucial phase has ended.

People Power Through the Net
Lifestyle, page 50
Chinese youth and NGOs have used the internet to pull resources together and initiated community-based relief efforts in the aftermath of May 12 earthquake. Within a day after the quake struck, various blog and forum sites started providing a platform for interested volunteers to come together and map out strategies. These community-based efforts may not rival the organization of large charity groups like the Red Cross, but the internet has created a channel for people-powered initiative.