Highlights from the EO print edition, issue no. 448, December 14, 2009

Copenhagen's "Bad News"
Cover
~ EO's correspondent at Copenhagen, Zhang Bin, reports on developments during the first week of the conference
~ According to Zhang, a stream of "bad news" has emerged during the opening week of the United Nation's climate change conference in Copenhagen.
~ A draft Copenhagen climate agreement purported to be prepared by the hosts Denmark dubbed as the "Danish Text" was leaked to the Guardian and caused a rift between developing and developed countries.
~ There was also a split between China and other smaller members of the Group of 77.
~ The Chinese openly accused the EU of "not being kind-hearted" and the U.S. declared that they wouldn't "devote large amount of funds to help China reduce its emissions"
~ The main bone of contention, and a deadlock on which is barring progress to the talks is the question of whether a two-track system, as adopted in Kyoto, is still the way to go, both sides are refusing to make any concessions and many fear that negotiators may run out of time
Original Article: [Chinese]

China to Found National Energy Commission
News, page 3
~ The National Energy Administration is preparing to launch a new National Energy Commission which will become China's top official body in charge of energy policy.
~ The Economic Observer has learned that, in order counter the weakness of the National Energy Administration over the past two years, the Vice Premier of the State Council, who is in charge of the nation's energy-related affairs, will head the new commission. He'll be assisted by high-level officials from the National Development and Reform Commission, National Energy Administration, the Ministry of Industry and Information Technology,  the Ministry of Environmental Protection and other ministries.
~ As planned, the responsibility of the National Energy Commission  is to map out the national energy strategy and make policy involving energy safety and development.
Both Reuters and Bloomberg have covered our report on the new National Energy Commission.
Original article: [Chinese]

Key Words for Reform of Central Enterprises in 2010 - M&A and Competitiveness
News, page 3
~ In 2010, the State-owned Assets Supervision and Administration Commission (SASAC) plans to fulfil its plan of dramatically reducing the number of centrally-owned enterprises (COEs) to between 80 and 100 from the present 131.
~ Several officials from SASAC told the Economic Observer that in 2010, the emphasis of COE reform in 2010 would still be placed on three tasks in term of restructuring, mergers and acquisitions and improving the competitiveness of the state-owned companies.
Original Article: [Chinese]

Short Term Obstacles to Increasing the Welfare of Low-income Earners
News, page 3
~ To help increase the wages of low-income individuals in China, the government is planning to expand social security coverage and also to introduce policies that ensure wages continue to rise.
~ However, according to Zhang Chewei, deputy director of the Institute of Population and Labor Economics under the China Academy of Social Science, achieving this goal will not be possible in the short term.
~ Zhang says that 80% of China's 1.3 billion people, almost all the rural residents and half of the urban residents, are currently not covered by the existing social security system. He also believes that's why they do not consume more.
~ China has imposed minimum wage standards on firms with all kinds of ownership. But, since corporations may employ less people and require them to work more hours during difficult economic times, these minimum wage regulations are far from effective in protecting the welfare of low-income employees.
Original Article: [Chinese]

China's CPI Turns Positive
News, Page 4
~ China's consumer price index (CPI), a main gauge of inflation, turned positive in November after a string of negative readings that began in February this year, according to the National Bureau of Statistics (NBS).
~ However, according to Sheng Laiyun, spokesman with the the NBS, despite the turn to positive CPI, inflation wouldn't take off in 2010.
~ In the meanwhile, the pace of  investment growth appears to be steadily declining in line with policy-makers intentions. 
~ The urban fixed-assets investment in the first 11 months this year rose 32.1% from a year earlier, according to the NBS. However, its monthly growth in November was down from October's figure.
~ Policy-makers are aiming to control investment growth in order to encourage the shift to a more balanced growth model.
Original Article: [Chinese]

A Chongqing Version of "I Corrupt all Cops"
Nation, page 9
~ As the details of how Wang Tianlun, the legal representative of Chongqing Yonghong Food Ltd, killed his competitor and bought police off in order escape punishment, has played out in a Chongqing courthouse, comparisons to the Hong Kong film I Corrupt all Cops (ICAC) have been raised.
~ In 2003, in an attempt to monopolize the pig slaughtering business in Chongqing, Wang Tianlun asked his younger brother, Wang Dongming, to hire two people to beat his competitor Pan Guisheng to death. Then, to cover up the crime, Wang Tianlun bribed almost all the officials and police involved in the case, including Wu Xiaoqing, Deputy President of Chongqing High People's Court, and Wen Qiang, Director of Chongqing Justice Bureau.
Original article:[Chinese]

Analysis: Provincial-level Party Leaders Reshuffle
Nation, page 12
~ The Central Committee of the Communist Party of China announced a reshuffle of provincial-level party leaders on November 30, replacing the leaders of  Henan, Fujian, Liaoning and Jilin as well as the autonomous region of Inner Mongolia.
~ Of the five regions, four provinces already have had their regional development plans approved by the State Council.
~ In interviews with the EO, several experts in regional economic development studies said the nature of regional economies were playing an increasingly important role in deciding who would be appointed as provincial leader. 
Original article:[Chinese]

Chinalco Prepares to Hit Back 
Corporation, page 28
~ As the Chinese economy begins to recover, the Aluminum Corporation of China ( Chinalco), China's biggest alumina and primary aluminum producer, has ramped up production to 90% of its capacity and is planning to invest ten billion yuan in three new projects located in Chongqing, Shanxi and Henan provinces.
~ However, a return to capacity production doesn't mean better business. Since the world financial crisis broke out, private aluminum firms and local state-owned aluminum enterprises have been growing and expanding, grabbing market share from the large state-owned player.
~ Now Chinalco plans to shift its structure and reduce costs in an attempt to claw back market share.
Original Article: [Chinese]