The China News-thread

[TheGodlessUtopian]

For news from the so-called "Peoples Republic."


Rural children face nutrition gap


By Shan Juan (China Daily (http://www.chinadaily.com.cn/cndy/2011-08/25/index1.html))

09:14, June 01, 2012 http://english.peopledaily.com.cn/img/2011english/images/icon16.gif http://english.peopledaily.com.cn/img/2011english/images/icon17.gif (http://english.peopledaily.com.cn/203691/7833345.html#) http://english.peopledaily.com.cn/img/2011english/images/icon18.gif (http://english.peopledaily.com.cn/203691/7833345.html#)

Ministry of Health report says kids in countryside have higher risk

A major gap exists between the nutritional status of Chinese children under 5 in rural and urban areas, according to a report issued by the Ministry of Health on Thursday.

The report also said that rural children are at greater risk of malnutrition due to economic strains and unexpected events.

Given that the government has already introduced measures to help (http://english.peopledaily.com.cn/203691/7833345.html#) improve the nutrition of school-age children, the report focuses mainly on preschoolers, said Qin Huaijin, director of the Department of Maternal and Child Health and Community Health under the ministry.

According to the report, the prevalence of children who were underweight or had stunted growth was three to four times higher in rural than urban areas between 1990 and 2010.

The situation in impoverished rural areas was even worse, it said.

Regionally, children in central and western China were two to three times more likely to suffer malnutrition than children in the east, where the overall economic situation was much better.

"Sometimes, better nutrition points to a higher chance of survival," said Yin Shi'an, a food safety and nutrition researcher at the Chinese Center for Disease Control and Prevention.

A report by the World Health Organization said that 22 percent of the deaths of children under 5 in China were attributable to malnutrition in 2000, but that number had fallen to 13 percent by 2010.

A majority of them were in the poor countryside, Yin noted.

"The nutritional status and overall development of rural children whose parents sought employment (http://english.peopledaily.com.cn/102774/7833347.html#) in cities were especially concerning," he said.

Official statistics showed that China has more than 150 million (http://english.peopledaily.com.cn/102774/7833347.html#) children under 5 who are left behind in rural hometowns, as their parents are migrant workers.

According to the report, they are 1.5 times more likely to be underweight or face stunted growth than rural children with parents by their sides.

Childhood nutrition can affect lifelong health and "we hope the government would list the improvement of child nutrition as a national strategy and integrate that into the overall national development plan to further enhance the nutrition of the children," urged Qin.

With economic development, government measures like the China Infant and Young Child Feeding Strategies, as well as the promotion (http://english.peopledaily.com.cn/102774/7833347.html#) of breastfeeding, child nutrition and physical development has greatly improved on the Chinese mainland, he said.

Also, the mortality rate for children under 5 has dropped by 73 percent since 1990, the study showed.

Huo Junsheng, director of the Food Science and Technology Department of China CDC, said the biggest nutrition problem was deficiencies of vitamins A and D, iron, calcium and zinc, which can affect their school performance and future economic productivity if left unaddressed.

Source: http://english.peopledaily.com.cn/102774/7833347.html



Armed police conducts combat drill in Xinjiang


(China Military Online (http://english.chinamil.com.cn/))

08:03, May 31, 2012 http://english.people.com.cn/img/2011english/images/icon16.gif http://english.people.com.cn/img/2011english/images/icon17.gif (http://english.people.com.cn/90786/7831733.html#) http://english.people.com.cn/img/2011english/images/icon18.gif (http://english.people.com.cn/90786/7831733.html#)

http://english.people.com.cn/mediafile/201205/31/F201205310806193094529335.jpg (http://english.people.com.cn/102774/7831747.html)Armed police in combat drill. (China Military Online/Xia Cunxi, Meng Xiangguo, Zhao Yang) Edited and translated by Yan Meng, People's Daily Online

The seventh detachment of the Armed Police Corps headquarters stationed in the depths of the Tianshan Mountains conducted an anti-terrorism combat drill.

Through the combat drill, the offensive and defensive combat capability of the officers and men had been enhanced.

http://english.people.com.cn/mediafile/201205/31/F201205310806202886314859.jpg (http://english.people.com.cn/102774/7831748.html)Armed police in combat drill. (China Military Online/Xia Cunxi, Meng Xiangguo, Zhao Yang) Edited and translated by Yan Meng, People's Daily Online

The seventh detachment of the Armed Police Corps headquarters stationed in the depths of the Tianshan Mountains conducted an anti-terrorism combat drill.

Through the combat drill, the offensive and defensive combat capability of the officers and men had been enhanced.

....

Source: http://english.people.com.cn/102774/7831748.html

P.S: See source for rest of story




Chinese human rights delegation concludes visit to Uzbekistan


(Xinhua (http://www.xinhuanet.com/english2010/))

16:03, May 31, 2012 http://english.peopledaily.com.cn/img/2011english/images/icon16.gif http://english.peopledaily.com.cn/img/2011english/images/icon17.gif (http://english.peopledaily.com.cn/90883/7832659.html#) http://english.peopledaily.com.cn/img/2011english/images/icon18.gif (http://english.peopledaily.com.cn/90883/7832659.html#)

TASHKENT, May 31 (Xinhua) -- A Chinese human rights delegation concluded a four-day visit here on Thursday and left for Ukraine.

During their stay in Uzbekistan, the Chinese delegates met with Dilorom Tashmuhamedova, speaker of the Legislative Chamber of Oliy Majlis, the Uzbek parliament, as well as leaders of various political parties and representatives from human rights institutions in the central Asian country.

During the meeting with Tashmuhamedova, Luo Haocai, head of the delegation and chairman of the Chinese Society for Human Rights Studies, lauded the frequent exchanges of high-level visits and extensive bilateral cooperation between China and Uzbekistan in the past 20 years.

Noting that bilateral exchanges on human rights have been constantly enhanced, Luo said the two sides should continue to explore ways to deepen their cooperation in human rights theory research and practices and make contribution to the international human rights cause and world peace and prosperity as well.

China's achievements in promoting human rights in the last three decades have been widely recognized by members of the international community, said Tashmuhamedova.

The visit by the Chinese delegation will not only help (http://english.peopledaily.com.cn/90883/7832659.html#) deepen the mutual understanding between the two peoples but also boost bilateral cooperation on human rights, she said.

During their visit, the Chinese delegates also introduced China's policies and practices in the promotion (http://english.peopledaily.com.cn/90883/7832659.html#) of human rights, and briefed their hosts on China's Human Rights Action Plan 2009-2010, China's political consultation system and the latest revisions to China's Criminal Procedure Law.



Source: http://english.peopledaily.com.cn/90883/7832659.html

[TheGodlessUtopian]

Direct yen-yuan trading helps expand China-Japan trade


By Ye Xiaonan (People's Daily Overseas Edition (http://paper.people.com.cn/rmrbhwb/html/2011-08/01/node_865.htm))

08:02, June 01, 2012 http://english.peopledaily.com.cn/img/2011english/images/icon16.gif http://english.peopledaily.com.cn/img/2011english/images/icon17.gif (http://english.peopledaily.com.cn/90778/7833014.html#) http://english.peopledaily.com.cn/img/2011english/images/icon18.gif (http://english.peopledaily.com.cn/90778/7833014.html#)

Edited and translated by People's Daily Online

Japan and China will begin direct yen-yuan trading (http://english.peopledaily.com.cn/90778/7833014.html#) on June 1, Japanese Finance Minister Jun Azumi said Tuesday, according to Xinhua reports. Insiders said the cooperation will definitely favor both countries’ import and export trade and the yuan’s globalization. But attention should be paid to potential risks so as to advance steadily.

Reducing dependence on U.S. dollar encouraged

Several Japanese mainstream media said that the Chinese and Japanese governments intend to reach an agreement on direct exchange in June and put it into operation immediately. It will make the yen the first foreign currency that the yuan can exchange for directly after its elimination of the U.S. dollar as the intermediate and the entry into the world money (http://english.peopledaily.com.cn/90778/7833014.html#) market. This marks a crucial step for the yuan in the international foreign exchange market.

International finance (http://english.peopledaily.com.cn/90778/7833014.html#) expert Zhao Qingming said that the yen has long been used as the settlement currency in China-Japan trade. In trade and financial activities between the two countries, the yuan exchange rate with the yen is counted on their respective rates with the U.S. dollar. Just as the Japanese media said, the dependence on the rate with the U.S. dollar might well continue for banks involved in the transactions that will decide on the yen rate with the yuan in the Tokyo and Shanghai markets respectively. Thus, it is more probable to give the banks of the two countries more flexibility, encourage the reduction of banking dependence on the U.S. dollar, and drive the use of the yen or the yuan as the settlement currency.

Help expand China-Japan trade

But according to insiders, if the direct exchange between the yuan and yen does happen, banks in the two countries will set a daily benchmark value and floating range based on market supply and demand before offering transaction services to enterprises in China and Japan. This will become a part of the yuan globalization, not only aiding the foreign trade enterprises with the reduction of exchange costs, but also helping to raise the international status of the yuan.

“Direct exchange between the yen and the yuan is a move responsive to the trade demand between the two countries and comes out of the actual need of the real economic development,” said Sun Lijian, professor and deputy dean of the School of Economics at Fudan University.

Sun added, “Side effects associated with speculation demand are relatively small, so an experiment like this will be more secure.”

Given the fact that trade and investment (http://english.peopledaily.com.cn/102774/7833022.html#) between China and Japan take up more portion in the real economy, he said that the direct exchange between the yuan and yen will act as a lubricant for the real economy.

The Chief Economist of Bank of Communications Lian Ping said the direct exchange is a good thing, on the ground that the intermediate of the U.S. dollar in the exchange between the yuan and yen results in massive exposure to influence from the U.S. dollar. But in the case of direct exchange, the impact of the U.S. dollar will be mitigated and the exchange will take place in a manner that is based on the demands and can better reflect the demand and supply between the two countries. Moreover, given the status of Japan as China’s large trade partner, direct exchange will favor the two countries’ import and export trade.

According to the famous financial commentator Ye Tan, while saving the two countries considerable transaction costs, free convertibility offers (http://english.peopledaily.com.cn/102774/7833022.html#) the greater benefit to promote the trade between China and Japan.

Caution should be paid in the yuan globalization

Insiders have warned of many risks and trials facing yuan globalization. First, the yuan’s ascendance in the world market will definitely receive a strategic squeeze from the U.S. dollar, and the yuan will be forced to appreciate rapidly. Then, although the role of the yuan can be improved by cooperating with yen by using its influence, the absence of a strategy of keeping the initiative in our own hands will expose us to risk. Thus, caution should be paid in yuan globalization.

Ye said that the size of the free convertibility between the yuan and yen should be subject to certain limits, that is, as a convertible currency, yen will lead to indirect convertibility of the yuan. And it is hard to control this prediction at this stage of yuan globalization. Thus, it is cautious to introduce the convertibility in a progressive and controllable manner.
Source: http://english.peopledaily.com.cn/102774/7833022.html



Beijing defends interests in Asia-Pacific


By Li Xiaokun and Zhou Wa (China Daily (http://www.chinadaily.com.cn/cndy/2011-08/25/index1.html))

08:22, June 01, 2012 http://english.peopledaily.com.cn/img/2011english/images/icon16.gif http://english.peopledaily.com.cn/img/2011english/images/icon17.gif (http://english.peopledaily.com.cn/90883/7833111.html#) http://english.peopledaily.com.cn/img/2011english/images/icon18.gif (http://english.peopledaily.com.cn/90883/7833111.html#)

US must 'respect' China's legitimate concerns in Asia-Pacific region

Beijing on Thursday urged Washington to respect China's interests in the Asia-Pacific region as US Defense Secretary Leon Panetta vowed, on the eve of his Asia trip, that the US will increase its military presence.

Although the US has insisted that its strategic shift to the region is not targeted at China, experts said Washington's deeds, including its plan to highlight the South China Sea issue at an annual regional security meeting at the weekend, exposed its true intentions.

They also reminded US officials to choose their words carefully to avoid denting Beijing's trust.

Asked about Panetta's Asian trip, Foreign Ministry spokesman Liu Weimin said at a news briefing on Thursday that China hoped the US would "play a positive and constructive role in the region''.

"We also hope the US will respect China's interests and concerns in the region,'' he added.

Panetta said before leaving the US on Tuesday that his trip to Vietnam, Singapore and India was aimed at remaining "vigilant" in the face of China's growing military.

"China's military is growing and modernizing. We must be vigilant. We must be strong. We must be prepared to confront any challenge," Panetta said when addressing graduates of the US Naval Academy in Annapolis, Maryland.

Still, he said the key to peace in the region is to develop a new era of defense cooperation with China.

He is also due to join a large high-ranking US delegation at the annual Asia security summit, the Shangri-La Dialogue, in Singapore on Saturday. Defense ministers and military chiefs of 28 Asia-Pacific states will attend the forum.

According to Pentagon officials, who briefed the media anonymously, Panetta is to deliver a major policy speech at the forum, "focusing on the Asia-Pacific, and the US role in the Asia-Pacific in light of the new strategy and rebalance''.

The South China Sea "will be something that's pretty high on people's minds during Panetta's trip'', a US official told the media.

The officials also said that the US defense secretary welcomes the opportunity to meet Chinese officials at the forum.

Defense Ministry spokesman Yang Yujun said at a regular news (http://english.peopledaily.com.cn/90883/7833111.html#) briefing on Thursday that Beijing will send Lieutenant General Ren Haiquan, vice-president of the PLA Academy of Military Science, to lead the Chinese delegation at the dialogue.

He dismissed reports that China had deliberately lowered the ranking of its delegation, saying it followed normal arrangements based on scheduled commitments.

Yang did not exclude the possibility of a meeting between high-ranking Chinese officers and Panetta at the forum, and rejected reports that Panetta's Asia trip avoided China as Panetta has announced he will visit later this year.

However, the US defense secretary will have to watch his language (http://english.peopledaily.com.cn/102774/7833113.html#) in Singapore and Vietnam to avoid heightening Beijing's concerns that the renewed US strategic focus on Asia seeks to contain China's rise as a global power, Reuters (http://english.peopledaily.com.cn/102774/7833113.html#) quoted an expert as saying.

"It's ... important for the kinds of message that he wants to send, lest there be triggering responses on the part of the Chinese," said Jonathan Pollack, a China analyst at the Brookings Institution think tank.

"So words do count. And ... hopefully he (Panetta) will be careful about what he says.''

Panetta's visit follows the strategic shift toward Asia announced by US President Barack Obama (http://english.peopledaily.com.cn/102774/7833113.html#) last year, when the president announced plans to increase military presence in the region by 2017 despite cuts to the military budget.

Panetta specifically mentioned, in his Tuesday speech, strengthening alliances with Japan, the Republic of Korea, Australia and the Philippines to safeguard American interests in the region.

Relations between Beijing and Manila plunged in April after Chinese vessels prevented a Philippine warship from arresting fishermen in Chinese territorial waters in the South China Sea.

Shortly after the incident, the US and the Philippines held a high-profile series of joint war drills. Over 7,000 troops took part in the exercises.

Panetta is expected to meet with defense officials from the Philippines during his trip.

Philippine President Benigno Aquino will visit the US on June 8.

The US is not only attempting to consolidate ties with traditional allies but is also expanding its influence to new partners, Shi Yinhong, an expert on international relations with Renmin University of China, said.

"Although Washington denies its strategic shift is aimed at any one country, it is obvious that China is one of its concerns ... The shift shows that the US is taking strategic precautions against China,'' Shi said.

The strategic shift indicates that the US has concentrated more of its focus on China, said Liu Hui, an expert on American studies with the Chinese Academy of Social Sciences.

Source: http://english.peopledaily.com.cn/102774/7833113.html



Chinese President bestows military honors


(Xinhua (http://www.xinhuanet.com/english2010/))

08:25, June 01, 2012 http://english.peopledaily.com.cn/img/2011english/images/icon16.gif http://english.peopledaily.com.cn/img/2011english/images/icon17.gif (http://english.peopledaily.com.cn/90785/7833124.html#) http://english.peopledaily.com.cn/img/2011english/images/icon18.gif (http://english.peopledaily.com.cn/90785/7833124.html#)

BEIJING, May 31 (Xinhua) -- Chinese President Hu Jintao, who is also chairman of the Central Military Commission, has signed a circular order honoring one military unit and three individuals, according to a central government statement.

A water supply regiment of the Lanzhou Military Area Command, headquartered in northwestern city of Lanzhou, was issued a Class I Merit Citation.

Class I Merit Citations were also awarded to Fan Henghai, a researcher with the Xi'an Satellite Control Center; He binbin, a deputy commanding officer of an air force troop; and Wang Xiguang, a senior auditor in the Nanjing Military Area Command.

The president also signed a decree to honor the late political theorist Yan Gaohong as a "model theorist".

A professor with the Nanjing Institute of Politics under the People's Liberation Army, Yan died of a heart attack. The Central Military Commission urged political theorists to learn from Yan's spirit.



Source: http://english.peopledaily.com.cn/90785/7833124.html

[TheGodlessUtopian]

Chinese Workers Defy the Government and Employers in Heated Riot

http://revolutionaryfrontlines.files.wordpress.com/2012/05/china-police.jpg?w=322&h=199 (http://revolutionaryfrontlines.files.wordpress.com/2012/05/china-police.jpg)by Sarah Vrba (http://www.care2.com/causes/author/sarahv)
May 29, 2012
An intense protest of enraged migrant workers broke out on Tuesday in Ruian, China. The city is located in the Zhejiang, a wealthy province in China. Reuters reports (http://www.reuters.com/article/2012/05/29/us-china-protest-idUSBRE84S0VE20120529) that about 1,000 migrant workers proceeded to turn over an iron gate, and damaged at least a dozen cars (http://revolutionaryfrontlines.wordpress.com/2012/05/30/chinese-workers-defy-the-government-and-employers-in-heated-riot/#) during their protest, which was centered on a government office building.

The demonstration began in the early morning after a young worker was allegedly killed by his employer over a payment (http://revolutionaryfrontlines.wordpress.com/2012/05/30/chinese-workers-defy-the-government-and-employers-in-heated-riot/#) dispute. The demonstration finally ended at midday after the family of the murdered man was given 300,000 yuan in compensation, which is the equivalent of about $47,000.
Worker uprisings have been extremely common in the last decade throughout China. Just a month ago, about 200 workers threatened to protest Apple’s Foxconn factory. The protesters, who were demanding “workplace adjustments” according to Reuters (http://www.reuters.com/article/2012/04/27/us-china-foxconn-idUSBRE83Q0JV20120427), threatened to jump off the roof of the factory in a show of solidarity. Although the disagreement was quickly settled in negotiations, the incident illustrates the often tense relationship between workers in factory settings and the large corporations that run the factories.
The controlling central government in China has also faced some intensive strikes and demonstrations over the years. In February, a riot broke out which left 12 people dead, the Guardian (http://www.guardian.co.uk/world/2012/feb/28/china-riots-dead) notes. Many people suspect the riot was an anti-government demonstration but little to no information was provided by officials monitoring the incident.
The government and companies often work together to silence workers’ demands. Wong Kam Yan (http://www.solidarity-us.org/node/26), writing for Solidarity, writes:

In July 2004, it was reported that two battery factories on Mainland China had poisoned at least 370 workers with cadmium. The two factories belong to the Gold Peak Industrial Holding Ltd, a Hong Kong and Singapore based Asian TNC; its electronic (http://revolutionaryfrontlines.wordpress.com/2012/05/30/chinese-workers-defy-the-government-and-employers-in-heated-riot/#) products are sold all over the world under different brand names.
The affected workers were paid little compensation, and at one point were even threatened by the company and the local authority that if they petitioned the central government in Beijing again they might end up with criminal charges.
Riots have also taken place in protest to economic issues. This most recent demonstration unfortunately fomented in the wake of the murder of a young worker, a 19 year old named Yang Zhi, a particularly tragic reason for action. The demonstration on Tuesday and those of the last few months all suggest that anti-government feeling is on the rise, making officials and police forces extremely nervous. Reuters (http://revolutionaryfrontlines.wordpress.com/2012/05/30/chinese-workers-defy-the-government-and-employers-in-heated-riot/#) reports that the Chinese government claims that around 90,000 “mass incidents” take place every year.
Most protests are quickly silenced and government officials are reticent to comment on uncomfortable or jarring incidents, such as the murder of the young worker in Ruian. Chinese officials have been particularly on guard since the international uproar that followed the treatment of the blind activist Chen Guangcheng as he attempted to escape from Chinese control this spring.


Read more: http://www.care2.com/causes/chinese-workers-defy-the-government-and-employers-in-heated-riot.html#ixzz1wPveqHZJ

Source: http://revolutionaryfrontlines.wordpress.com/2012/05/30/chinese-workers-defy-the-government-and-employers-in-heated-riot/

[TheGodlessUtopian]

China: Striking workers use social media to publicize grievances and build solidarity and support

How Weibo helped Dongguan factory workers get their voices heard

China Labour Bulletin, May 10, 2012
When the boss refuses to listen to workers’ grievances, those workers often have no option but to go on strike. But whether or not this tactic works sometimes depends on workers’ media advocacy skills.
On 7 May, workers at a Taiwanese-owned Crocs shoe factory in Dongguan heard that their monthly performance bonus (http://revolutionaryfrontlines.wordpress.com/2012/05/28/china-striking-workers-use-social-media-to-publicize-grievances-and-prevent-isolation/#) would fall from 500 yuan to 100 yuan. Given that the bonus usually accounted for one fifth of their income, this was a big deal. They complained to the management who as usual didn’t bother to listen. In the afternoon of 8 May, around 1,000 workers, one third of the workforce, decided not to go to work.
But given the relatively isolated location of the factory, well hidden within a gigantic industrial park, the workers’ action didn’t get much attention, not to mention government intervention. When CLB called the factory office, the factory denied the bonus dispute by saying that workers wouldn’t know their bonus until the middle of this month.
One young worker, in anticipation of this official response, started posting strike information on his Weibo page in order to generate public support and media attention. To validate his account (http://revolutionaryfrontlines.wordpress.com/2012/05/28/china-striking-workers-use-social-media-to-publicize-grievances-and-prevent-isolation/#), he posted a photo showing the empty workshop during working hours.
http://www.clb.org.hk/en/sites/default/files/Image/general/crocs1.jpg
CLB then posted a story about the strike on our Weibo page (http://t.qq.com/chinaworker) with the worker’s photographic evidence. The story immediately got the attention of labour rights activists and news (http://revolutionaryfrontlines.wordpress.com/2012/05/28/china-striking-workers-use-social-media-to-publicize-grievances-and-prevent-isolation/#) reporters in Guangdong. Within one hour or so, the post had been retweeted more than 50 times.
In the late afternoon, the young worker told CLB that around five reporters had gathered at the factory gate but their attempts to get in had been foiled by security. The local labour bureau showed up as well.
In the morning of 9 May, CLB learnt that after government mediation, factory management had agreed to raise the bonus from the initial 100 yuan to at least 300 yuan. As a result the factory’s operations have basically returned to normal.
The young worker could not hide his exuberance when his effort to seek media attention during the strike paid off and reaped a substantial bonus increase for over one thousand of his coworkers.
In contrast, late last month, hundreds of employees stopped working at a Chongqing auto factory in protest (http://hi.baidu.com/%B9%A4%C8%CB%D0%C4%C9%F9clb/blog/item/9d381d076807f6cc09fa93f3.html) against increasing workloads and stagnant pay levels over the last few years. The three-day strike got no traditional media coverage and only limited social media exposure and was eventually subdued by management’s threat of dismissal.
It is hard to imagine how the one thousand Dongguan workers’ voices could have been heard without one young worker’s persistent and successful media liaison, especially the use of Weibo. Microblogs have become a relatively free platform for workers, labour scholars, rights advocates, journalists and even trade union officials to interact and exchange information. But to get your particular cause noticed on this overloaded platform definitely requires skill and persistence. And it’s comforting to see China’s tightening control over this new social platform hasn’t balked workers’ attempts to get their voices heard.
Source: http://revolutionaryfrontlines.wordpress.com/2012/05/28/china-striking-workers-use-social-media-to-publicize-grievances-and-prevent-isolation/

[TheGodlessUtopian]

Introduction 　
On May 8, a DPRK gunboat hijacked three boats with 28 Chinese fishermen onboard. Chinese authorities subsequently demanded that the DPRK ensure the safety and legitimate rights and interests of the fishermen.
　
After consultations, on May 21 DPRK freed the detained fishermen and their vessels. Full Story (http://english.people.com.cn/90883/7826481.html)
　
http://english.peopledaily.com.cn/mediafile/201205/25/F201205251750472515425274.jpg (http://english.people.com.cn/90883/7826481.html) Timeline of Chinese and the DPRK standoff
May 22 Twenty-eight Chinese fishermen have returned home after being detained by the Democratic People's Republic of Korea for 13 days. Full Story (http://english.people.com.cn/90883/7826491.html)
May 21 Chinese fishermen return home following 13 days of detention by DPRK boat. Full Story (http://english.people.com.cn/90883/7826483.html)
May 18 DPRK urged to guarantee rights of fishermen. Full Story (http://english.people.com.cn/90883/7820383.html)
May 17 China is in close contact with the Democratic People's Republic of Korea (DPRK) on the recent detainment of three Chinese fishing boats, FMspokesman Hong Lei. Full Story (http://english.people.com.cn/90883/7820303.html)
May 11--May 16 It was reported that the men initially demanded payment of 400,000 yuan ($63,200) for each boat before lowering their request to 300,000 yuan, and they even set a deadline of May 17. Full Story (http://english.people.com.cn/90883/7826272.html)
May 9 Unidentified North Koreans have detained 29 Chinese fishermen from three boats and are demanding payment for their release.
May 8 Upon verification, a total of 28 fishermen were detained. The previous report put the number at 29, as one fisherman left the vessel due to seasickness before it was detained, which the owner of the vessel did not know. Full Story (http://english.people.com.cn/90883/7826272.html)
May 8 A North Korean gunboat is reported to have seized several Chinese fishing boats, with a total of 29 people onboard, in the Yellow Sea on May 8.
　
http://english.peopledaily.com.cn/mediafile/201205/25/F201205251750482253219819.jpg (http://english.people.com.cn/102774/7826486.html) The DPRK view: Set up a long-standing friendship with China
"As China has a long-standing friendship with DPRK, we will properly handle this incident on the basis of bilateral friendly ties," said an official of DPRK's Foreign Ministry to Global Times.
"DPRK's consular officials are keeping close contact with the Chinese embassy." said the official.
On May 21, the DPRK's Foreign Ministry announced that the detained fishermen and their vessels had been freed. Full Story (http://english.people.com.cn/90883/7821666.html)
http://english.peopledaily.com.cn/mediafile/201205/25/F201205251750483007824631.jpg (http://english.people.com.cn/90883/7826272.html) Chinese view: Ensure the safety, legitimate rights and interests of the Chinese fishermen China is in close contact with the Democratic People's Republic of Korea (DPRK) on the recent detainment of three Chinese fishing boats, Foreign Ministry spokesman Hong Lei said on Thursday. Full Story (http://english.people.com.cn/90883/7820303.html) Foreign Ministry spokesman Hong Lei said China demanded the DPRK ensure the safety and legitimate rights and interests of the Chinese fishermen. Full Story (http://english.people.com.cn/90883/7827277.html)
China will not allow any misbehavior by North Korea. There is no special room between China and North Korea. North Korea should respect China's every concrete interest, especially the lives and property of Chinese citizens. Full Story (http://english.people.com.cn/90883/7822390.html)
http://english.peopledaily.com.cn/mediafile/201205/25/F201205251750481854714628.jpg (http://english.people.com.cn/90883/7827277.html) Editor's Note Maritime spat is on the rise between China and other countries. Chinese fishermen need to be fully aware of the policies. It also requests that China's maritime enforcement agencies upgrade their supervision and protection of Chinese fishermen. This may require more investment (http://english.peopledaily.com.cn/102775/205012/7828030.html#), but it is necessary. We wish to see the China-North Korean friendship strengthened. This tie should not only be displayed at a national strategic level, but can also be felt in daily life.
Source: http://english.peopledaily.com.cn/102775/205012/7828030.html



China, Arab states pledge to cooperate


By Lei Xiaoxun and Zhang Yunbi (China Daily (http://www.chinadaily.com.cn/cndy/2011-08/25/index1.html))

12:20, June 02, 2012 http://english.peopledaily.com.cn/img/2011english/images/icon16.gif http://english.peopledaily.com.cn/img/2011english/images/icon17.gif (http://english.peopledaily.com.cn/90883/7834297.html#) http://english.peopledaily.com.cn/img/2011english/images/icon18.gif (http://english.peopledaily.com.cn/90883/7834297.html#)

As the fifth Ministerial Conference of China-Arab States Cooperation Forum drew to a close on Thursday, participants from China and Arab League countries agreed to work side by side to address major international issues and bring tangible benefits to the people.

On the Syrian issue, Chinese Foreign Minister Yang Jiechi said that China and Arab countries support UN-Arab League special envoy (http://english.peopledaily.com.cn/90883/7834297.html#) Kofi Annan's six-point peace plan and will work (http://english.peopledaily.com.cn/90883/7834297.html#) side by side to call for an immediate stop to bloodshed and foreign intervention, hoping to prevent Syria from sliding into civil war.

Commenting on the latest mass killings in Houla, Syria, where 108 of people were killed, Yang said China was greatly astonished and saddened by the tragedy. In its strongest terms, China condemned the killing of innocent civilians, including women and children, demanded a fair and thorough investigation and called for the severe punishment of those responsible, Yang added.

He emphasized China has been fair in handling the Syrian issue, and that China has been working (http://english.peopledaily.com.cn/90883/7834297.html#) to safeguard the rules of international relationship, peace and stability in the Middle East and the long-term interest of the Syrian people.

China's unremitting position on the Syrian issue, which has been received with appreciation by Arab participants of the ministerial conference of the forum, reflects China's sincere wish for a peaceful, fair and proper solution of the Syrian issue, Yang said.

In an interview with Al Jazeera on Wednesday, Chen Xiaodong, director-general of the department of West Asian and North African affairs of the Foreign Ministry, said that China does not take the side of any party, including the Syrian government, and supports the efforts of the Syrian people to seek their own political system and development path.

On the conflict between Sudan and South Sudan, Rafik Abdessalem, Tunisian foreign minister and chairman of the conference, said that China and Arab League nations agreed to support Sudan's sovereignty, security, stability and territorial integrity and encouraged Sudan and South Sudan to achieve peace under the existing borderline.

Officials from China and Arab League nations also pledged to push forward economic cooperation.

Fruitful meetings

China and Arab League countries will continue (http://english.peopledaily.com.cn/102774/7834298.html#) to strengthen political dialogue and cooperation under the forum's framework in accordance with the conference communique and 2012-2014 working plan signed by Yang and Arab League Secretary-General Nabil al-Arabi.

This is the first high-level forum between China and Arab League nations after the two sides established a strategic cooperative relationship in 2010, said Hua Liming, a former ambassador to Iran and now a researcher at the China Institute of International Studies.

"Despite some minor misunderstandings triggered by the Syria issue, Sino-Arab ties have shown stronger momentum following the turbulent situation in the Middle East in the past year," Hua said.

The communique set targets of increasing China-Arab trade volume to $300 billion by 2014 and enhancing cooperation in human resources. China has pledged to train 5,000 professionals in various sectors for Arab League countries from 2012 to 2014.

During the conference, important agreements were signed between China's Ministry of Health and the Arab League secretariat on health-related cooperation mechanism, the Ministry of Industry and Information Technologies and Arab Industrial Development and Mining Organization, and State Administration of Quality Supervision, Inspection and Quarantine and AIDMO.

Both sides will also encourage colleges (http://english.peopledaily.com.cn/102774/7834298.html#) and science institutions to develop academic (http://english.peopledaily.com.cn/102774/7834298.html#) exchanges.

Source: http://english.peopledaily.com.cn/102774/7834298.html



Restraint 'necessary' in telecom dispute


By Fu Jing (China Daily (http://www.chinadaily.com.cn/cndy/2011-08/25/index1.html))

13:16, June 02, 2012 http://english.peopledaily.com.cn/img/2011english/images/icon16.gif http://english.peopledaily.com.cn/img/2011english/images/icon17.gif (http://english.peopledaily.com.cn/90883/7834305.html#) http://english.peopledaily.com.cn/img/2011english/images/icon18.gif (http://english.peopledaily.com.cn/90883/7834305.html#)

China, EU 'must communicate with each other' for a win-win solution

Beijing urged Brussels to show restraint amid reports that the European Union is poised to probe Chinese telecom companies in Europe.

Visiting Chinese Minister of Commerce Chen Deming delivered the message at the EU's headquarters on Friday morning after a meeting with his EU counterpart Karel De Gucht.

Chen implied that if Brussels uses punitive measures to protect its market, Beijing is also ready to do so. "European telecom companies have also invested in the Chinese market for years ... we are not willing to see the win-win situation destroyed or weakened," said Chen.

"China and the European Union should communicate with each other properly, refraining from using protectionist measures; otherwise, both will become losers," Chen added.

He made the remarks after a report in the Financial Times said the EU is ready to launch trade complaints and investigations against Chinese makers of mobile (http://english.peopledaily.com.cn/90883/7834305.html#) network equipment, including Huawei and ZTE, as soon as next month.

The report said the European Commission, the EU body charged with investigating trade complaints (http://english.peopledaily.com.cn/90883/7834305.html#), has got "very solid evidence," showing that the companies benefited from illegal government subsidies and had sold products in the EU below cost.

Brussels promised again during the meeting on Thursday chaired by Chen and De Gucht that the EU will not use such measures.

Chen urged the Western media to take a "positive" approach to China's investment (http://english.peopledaily.com.cn/90883/7834305.html#) in Europe.

Shortly after the Financial Times report, official sources told China Daily that Beijing will retaliate if Brussels takes such actions.

The EU's planned investigation has already triggered concerns in Europe.

Swedish Trade Minister Ewa Bjorling warned that a planned probe by the European Commission into "illegal subsidies" received by Chinese wireless network vendors risks backfiring on the European wireless network industry

"While Chinese companies' share of the EU's wireless equipment market is 30 percent, one has to remember that the EU's share of China's wireless (http://english.peopledaily.com.cn/102774/7834306.html#) equipment market is 45 percent. So if China were to hit us back with similar measures, it would hurt us more than what it would hurt them," she told the media.

At the meeting, both sides agreed to launch negotiations on an investment treaty, although no timetable was set.

De Gucht said the meeting with Chen was an extremely important opportunity for both sides to engage with each other on key trade issues.

"We discussed trying to push forward our talks on investment," said De Gucht, adding that it is right time for both sides to step up efforts to launch the negotiations on investment as soon as possible.

"I believe such negotiations are very important not only economically but also to show to the world in trade issues China and Europe can do business."

Duncan Freeman, research fellow at the Brussels Institute of Contemporary China Studies, said De Gucht's emphasis on the investment treaty reflects the importance the EU attaches to this issue. "In the current European crisis this is not surprising, as the EU sees an investment (http://english.peopledaily.com.cn/102774/7834306.html#) treaty as a way of improving access (http://english.peopledaily.com.cn/102774/7834306.html#) to the growing Chinese market," he said.

Source: http://english.peopledaily.com.cn/102774/7834306.html



China expects steady, rapid growth in 2012


(Xinhua (http://www.xinhuanet.com/english2010/))

13:14, June 02, 2012 http://english.peopledaily.com.cn/img/2011english/images/icon16.gif http://english.peopledaily.com.cn/img/2011english/images/icon17.gif (http://english.peopledaily.com.cn/90778/7834304.html#) http://english.peopledaily.com.cn/img/2011english/images/icon18.gif (http://english.peopledaily.com.cn/90778/7834304.html#)

BEIJING, June 1 (Xinhua) -- China's economy will maintain steady and rapid development momentum this year though facing downward pressures, said a senior official on Friday.

The overall economic conditions are good and growth rates are within the expected range, said Du Ying, vice minister of National Development and Reform Commission, at a press conference.

In a recent meeting of the State Council, policy makers reiterated the keynote of seeking further progress while maintaining a stable situation and made growth a bigger priority, he said.

The government would continue (http://english.peopledaily.com.cn/90778/7834304.html#) with structural tax reduction, stick to prudent monetary policy, focus on promoting consumption and maintaining a rational investment (http://english.peopledaily.com.cn/90778/7834304.html#) scale, and meanwhile keep exports stable, according to Du.

China's economy grew at its slowest pace in almost three years in the first quarter of 2012, with its gross domestic product expanding only 8.1 percent during the period.

A string of economic indicators in April suggested further economic weaknesses in the world's second-largest economy amid renewed uncertainty in Europe, prompting policymakers to adopt swift measures to stabilize growth.

The State Council, or China's cabinet, on Wednesday adopted a plan to boost the development of seven strategic emerging industries as the country's economy slows.

The named industries include energy-saving and environmental protection, information technology (http://english.peopledaily.com.cn/90778/7834304.html#), biology, advanced equipment manufacturing, new energy, new materials and new-energy vehicles.
Source: http://english.peopledaily.com.cn/90778/7834304.html



Road accidents kill 2,670 children in China in 2011


(Xinhua (http://www.xinhuanet.com/english2010/))

13:43, June 02, 2012 http://english.peopledaily.com.cn/img/2011english/images/icon16.gif http://english.peopledaily.com.cn/img/2011english/images/icon17.gif (http://english.peopledaily.com.cn/90882/7834312.html#) http://english.peopledaily.com.cn/img/2011english/images/icon18.gif (http://english.peopledaily.com.cn/90882/7834312.html#)

BEIJING, June 2 (Xinhua) -- Road accidents killed 2,670 preschoolers and primary and middle school students (http://english.peopledaily.com.cn/90882/7834312.html#) and injured another 11,417 in China last year, figures from the Ministry of Public Security show.

As 45 percent of the deadly accidents occurred when the victims were walking, the ministry has urged parents and school (http://english.peopledaily.com.cn/90882/7834312.html#) teachers to make more efforts to guide children to follow traffic signals and choose a zebra crossing or an underpass when crossing a street.

Traffic accidents on China's roads result in about 70,000 deaths and 300,000 injuries each year, according to the ministry. Speeding, fatigue, drunk driving and poor road conditions are usually blamed.

The ministry warned drivers to slow down when driving near schools (http://english.peopledaily.com.cn/90882/7834312.html#) or villages. It also urged parents and teachers to teach children, especially those living in rural areas, not to play on highways.

Parents were also told to use baby seats in cars and not to allow children under the age of 12 cycling on the road.
Source: http://english.peopledaily.com.cn/90882/7834312.html



Integration of foreign banks


By Wang Zhaoxing (China Daily (http://www.chinadaily.com.cn/cndy/2011-08/25/index1.html))

14:14, June 02, 2012 http://english.peopledaily.com.cn/img/2011english/images/icon16.gif http://english.peopledaily.com.cn/img/2011english/images/icon17.gif (http://english.peopledaily.com.cn/90778/7834321.html#) http://english.peopledaily.com.cn/img/2011english/images/icon18.gif (http://english.peopledaily.com.cn/90778/7834321.html#)

Despite suggestions to the contrary, China has been continuously deepening and broadening the opening-up of its banking sector

Foreign-funded banks have boomed on the Chinese mainland over the past decades, especially since China's accession to the World Trade Organization in 2001.

While playing an active role in bolstering China's rapid economic development, foreign-funded banks have also shared in the fruits of its rapid growth and enjoyed a big boost in the scale of their own assets and profits. However, some in the West doubt the achievements of foreign banks in China, citing the low proportion of their assets to the country's total banking assets.

Chinese mainland-based foreign banks accounted for 1.93 percent of the country's banking assets in 2011, only 0.11 percentage points higher than 2001. The proportion was 0.45 percentage points lower than the peak of 2.38 percent achieved before the global financial crisis. This is a low proportion whether in developed economies or in emerging nations. Some have also cast doubts on China's opening-up polices in the banking sector and its monitoring environment, arguing that foreign banks have encountered numerous policy restrictions and prejudice in China and the Chinese government has failed to grant them "real national treatment".

All these allegations are groundless. The low proportion of foreign banks in China's banking (http://english.peopledaily.com.cn/90778/7834321.html#) market does not contradict the fact that they have achieved sustainable and rapid development in the country. The number of both legal entities and subsidiaries foreign banks have set up in China has increased rapidly in recent years. By the end of 2011, some 98 foreign banks had established business (http://english.peopledaily.com.cn/90778/7834321.html#) organs in China, of which 39 enjoy a legal entity status, up from only 13 a decade ago. The number of their branches has also increased from 190 to 782. More importantly, these foreign banks have achieved a sustainable and rapid growth both in their assets and profits, with an average assets compound growth ratio of 19 percent and an average profit (http://english.peopledaily.com.cn/90778/7834321.html#) compound growth ratio of 26 percent. This is a praiseworthy performance, especially in the context of the global financial crisis.

The reason why foreign banks have maintained a low and even declining proportion in China's banking market should be largely attributed to the faster asset expansion of China's domestic banks during the same period, especially their drastically increased lending to infrastructure and real estate projects in the wake of the global financial crisis. As a result, their assets have increased dramatically.

The low market share of foreign banks in China should not be used as an excuse to negate their established market orientation and distinctive development paths in China. Different from their Chinese counterparts, foreign banks should try to prevent complete localization in an effort to maintain distinctive market orientations, governance methods and development models.

The assets of China-based foreign banks should not only include the assets of their China-based legal entities and subsidiaries, but also include their possessed stocks of Chinese-funded banks. To promote its opening-up to the outside, improve its governance and risk management capabilities, and sharpen its international competitiveness, China has continuously deepened and broadened the opening-up of its banking (http://english.peopledaily.com.cn/102774/7834323.html#) sector over the past decade. For example, foreign banks have not only been allowed to set up in China their solely-funded entities, joint ventures or subsidiaries, they have also been allowed to make investments in China's financial institutions. According to statistics, about 72 foreign financial agencies had made investments in 109 China's financial bodies by the end of 2011, with an accumulated investment (http://english.peopledaily.com.cn/102774/7834323.html#) of $40 billion. At the start of the global financial crisis, foreign banks held about 7 percent of Chinese banks' stocks (http://english.peopledaily.com.cn/102774/7834323.html#). Although the proportion has declined slightly in the wake of the global financial crisis and the deteriorated financial conditions of their parent corporations and the increased pressures for capital withdrawal, there is still space for the proportion to rise.

Over the past three decades China's banking sector has continuously improved its openness to the outside world and increasingly integrated itself into the financial globalization. The domestic banking sector has realized a full and comprehensive opening-up since China's accession to the WTO, especially since the end of its five-year period of membership transition. Numerous restrictive measures on foreign banks have been canceled and a set of unified monitoring standards established, which apply (http://english.peopledaily.com.cn/102774/7834324.html#) to both foreign banks and their Chinese counterparts. Foreign banks are granted the same treatment as local banks. In a survey (http://english.peopledaily.com.cn/102774/7834324.html#) conducted ahead of the 10th anniversary of China's WTO membership (http://english.peopledaily.com.cn/102774/7834324.html#) on the operating environment in China, most foreign banks gave positive approval.

The increased number of legal entities set up by foreign banks and their increased capital operation in China also fully testifies to their growing confidence in China's long-term development and their optimism for the future.

The opening-up of China's banking sector has played a positive role in promoting institutional reforms and the financial innovation of domestic banks, raising their governance and risk management capabilities, and sharpened their international competitiveness.

Source: http://english.peopledaily.com.cn/102774/7834324.html

[TheGodlessUtopian]

Salaries for top bank execs on the rise


(Global Times (http://www.globaltimes.cn/))

08:12, June 06, 2012 http://english.peopledaily.com.cn/img/2011english/images/icon16.gif http://english.peopledaily.com.cn/img/2011english/images/icon17.gif (http://english.peopledaily.com.cn/90778/7837068.html#) http://english.peopledaily.com.cn/img/2011english/images/icon18.gif (http://english.peopledaily.com.cn/90778/7837068.html#)

Salaries for senior executives at major banks in China are on the rise, according to information released from several recently held board meetings.

The presidents and chairmen of five major State-owned commercial banks will enjoy an average annual pay of more than 1.6 million yuan ($251,000) in 2012, higher than the figure of around 1 million yuan released in banks' annual reports last year.

Their yearly salaries, before taxes, include annual base pay, performance bonuses and social welfare. On average, the basic annual pay for the banks' chairmen and presidents are 465,000 yuan and 418,500 (http://english.peopledaily.com.cn/90778/7837068.html#) yuan respectively.

Among them, the highest performance bonus (http://english.peopledaily.com.cn/90778/7837068.html#) is 1.17 million yuan, while the lowest is 1 million (http://english.peopledaily.com.cn/90778/7837068.html#) yuan.
Source: http://english.peopledaily.com.cn/90778/7837068.html



Chinese VP encourages people-to-people exchanges to boost China-U.S. relations


(Xinhua (http://www.xinhuanet.com/english2010/))

08:04, June 04, 2012 http://english.peopledaily.com.cn/img/2011english/images/icon16.gif http://english.peopledaily.com.cn/img/2011english/images/icon17.gif (http://english.peopledaily.com.cn/90883/7834369.html#) http://english.peopledaily.com.cn/img/2011english/images/icon18.gif (http://english.peopledaily.com.cn/90883/7834369.html#)

http://english.peopledaily.com.cn/mediafile/201206/04/F201206040805351156225059.jpg (http://english.peopledaily.com.cn/102774/7834374.html)Chinese Vice President Xi Jinping (C) meets with a U.S. good-will delegation headed by the Governor of Iowa Terry Branstad and composed of Xi's American friends in Iowa, in Beijing, capital of China, June 3, 2012. (Xinhua/Lan Hongguang) BEIJING, June 3 (Xinhua) -- Chinese Vice President Xi Jinping on Sunday encouraged people-to-people exchanges and cooperation between China and the United States.

"People-to-people exchanges form a significant foundation to boost the China-U.S. cooperation, and also an important part of establishing a new type of relationship between China and the United States," Xi said.

Xi made the remarks when meeting with a U.S. good-will delegation headed by the Governor of Iowa Terry Branstad and composed of Xi's American friends in Iowa back from 1985.

Xi said he was glad to meet his old friends from Iowa again following his visit to the United States in February, noting that China-U.S. relations have come to a critical stage of developing a new type of relationship featuring mutual respect, harmonious co-existence and win-win cooperation between major powers.

"It's not an easy job (http://english.peopledaily.com.cn/90883/7834369.html#) to accomplish," Xi told his American guests.

Citing the facts that about 9,000 people travel between the two countries every day and there are 160,000 Chinese students (http://english.peopledaily.com.cn/102774/7834374.html#) in the United States, Xi proposed that the two nations further boost their exchanges and cooperation in various fields and at various levels.

"We should remain creative and innovative to explore new areas and create new forms of strengthening exchanges between the two peoples," Xi added.

He called on his American friends to contribute more efforts and help (http://english.peopledaily.com.cn/102774/7834374.html#) raise the relations between China and the United States to a higher level.

Branstad said Xi's long-term relationship with Iowa has become a symbol of friendship between the two peoples, and it bears great significance to the future development of the U.S.-China relations.

Xi, then a local official from China's northern province of Hebei, visited Iowa in 1985 as a member of an agricultural delegation, and stayed at the homes of local residents.

Source: http://english.peopledaily.com.cn/102774/7834374.html



Housing report notes rise in sales


By Zheng Yangpeng (China Daily (http://www.chinadaily.com.cn/cndy/2011-08/25/index1.html))

13:28, June 06, 2012 http://english.peopledaily.com.cn/img/2011english/images/icon16.gif http://english.peopledaily.com.cn/img/2011english/images/icon17.gif (http://english.peopledaily.com.cn/90778/7837687.html#) http://english.peopledaily.com.cn/img/2011english/images/icon18.gif (http://english.peopledaily.com.cn/90778/7837687.html#)

http://english.peopledaily.com.cn/mediafile/201206/06/F201206061329461706829675.jpgPotential homebuyers visit a housing exhibition in Hangzhou, Zhejiang province. Inelastic demand for homes has pushed up sales (http://english.peopledaily.com.cn/90778/7837687.html#) in some major cities across the country. [Photo/Xinhua]
A sales report for May published by China's largest real estate website has sounded an optimistic note on the country's under-pressure housing market.

The report, released on Tuesday by SouFun Holdings Ltd, suggests that after a long chill in new property sales, the majority of Chinese developers have recorded fresh peaks in May.

The upbeat trend is expected to continue (http://english.peopledaily.com.cn/90778/7837687.html#) in June, said analysts, but prices are likely to remain largely static, they cautioned.

Sales in 34 out of 40 large cities monitored across the country have seen a month-on-month increase from April to May, according to the SouFun report.

New-build sales in Guangzhou saw the largest rise, at a hefty 52 percent. Large cities such as Beijing, Chengdu and Shenzhen all achieved a growth rate above 30 percent.

Combined sales in Beijing, Shanghai, Guangzhou and Shenzhen nearly doubled to 40,000, compared to 21,000 in April.

The latest property indicator for May echoes one made earlier by Centaline Property Agency Ltd, China's biggest real-estate brokerage, that suggested 30 cities it monitored saw a 28 percent year-on-year increase in floor space sold in newly built residential property, and a 20 percent May increase compared to April.

China Vanke Co Ltd, the country's largest property developer whose sales are often deemed a barometer of the country's property market, also recorded an increase in sales in May from April, as well as from a year earlier.

The company said its sales in May totaled 10.72 billion yuan ($1.68 billion) in value, a 19 percent increase from the 9.01 billion yuan of sales it reported in May 2011, and 44.1 percent higher than the 7.44 billion yuan it reported in April.

Market analysts said the ongoing warm-up in new home sales is largely a reflection of policy easing at the margins of the property market by Beijing and other local governments, out of a concern about slowing economic growth.

In February, commercial banks in Beijing started offering mortgages to first-time buyers at or below the central bank's benchmark rate, against rates of 5-10 percent higher in the second half of last year.

Beijing is one of more than 30 cities to have rolled out or fine-tuned policies in the property sector aimed at boosting the market since the second half of 2011, according to the leading business newspaper China Business Herald.

These policies have included: more favorable interest rates for first-time buyers, loosening of the upper limit for house buyers who use low-interest provident fund loans (http://english.peopledaily.com.cn/90778/7837687.html#) and transaction-related taxes and fees reduction.

Of the above cities monitored by SouFun, policies in only five cities, including Shanghai and Wuhu of Anhui province, have been canceled by the central government.

Last week, there were reports that Hunan province has rolled out further policies to encourage property sales, including lowering payment requirements for first-time buyers.

The Hunan government denied the claim this week.

"As seen from the current situation, if the local governments say they are not fine-tuning, it is unlikely that the central government will probe further," Xue Jianxiong, research director of CRIC China, was quoted by China Business Herald as saying.

Land grant fees are a major source of revenue for local governments.

But analysts also noted that the current increase in sales is more likely to have been prompted by marginal incentives such as mortgage lending discounts, rather than any drop in house prices.

Ge Ling, director of Centaline China Property Research, said the trimming of interest rates has encouraged some first-time buyers to accelerate their purchasing plans.

Analysts are optimistic that the current rise in sales is expected to continue in June, but added that there was little hope of any significant price cuts.

Statistics from China Real Estate Index System, a private data provider, showed that average housing prices in 100 large Chinese cities fell at a slower pace a month-on-month in May, slipping by 0.31 percent from April. The April figure slipped 0.34 percent from March.

"The previous promotional price of some house developers has already resulted in turnover increases. Now there is thin room for more reductions," added Zhang Dawei, an analyst with Centaline.

Hu Jinghui, vice-president of the property brokerage 5i5j Real Estate, suggested the fine-tuning policies will increase the inelastic demand of first-time buyers, and bring about a rise in June sales.



Source: http://english.peopledaily.com.cn/90778/7837687.html