News » China » China to improve water quality of diversion project

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• China to improve water quality of diversion project
• Lawmakers review reports on SOE, cultural system reforms
• China Focus: China pledges further reforms for state-dominated sectors
• Ratings agency aims to rival 'big three'
• Secret talks held over Diaoyu Islands
• Nuclear plants set for coast
• SOEs urged to speed up restructuring
• Grad school graduates applying for menial jobs
• Civil service test applications surge
• Syria still mulling cease-fire during Eid al-Adha
• China honors outstanding news reports, journalists
• China passes plans on energy development
• China to publish books on Tokyo Trials
• China builds first vessel for underwater archaeology
• China pledges further reform of state-dominated industries
• China "urgently" needs greater investment in social assistance
• China Focus: CPC expected to bridge wealth gap by fair distribution
• Vietnamese party leader meets Chinese state councilor
• Essential abilities for safeguarding maritime sovereignty
• Full Text: China's Energy Policy 2012

China to improve water quality of diversion project Posted: 24 Oct 2012 09:40 AM PDT The government will spend 12 billion yuan (1.92 billion U.S. dollars) to improve water quality on the middle route of the south-to-north water diversion project from 2011 to 2015.

Lawmakers review reports on SOE, cultural system reforms Posted: 24 Oct 2012 09:39 AM PDT Chinese legislators on Wednesday reviewed a series of reports on the reform of state-owned enterprises (SOEs), the cultural system and social aid.

China Focus: China pledges further reforms for state-dominated sectors Posted: 24 Oct 2012 09:33 AM PDT The Chinese government has vowed to reform state-dominated industries and aid them in market entry, a senior official said Wednesday.

Ratings agency aims to rival 'big three' Posted: 24 Oct 2012 11:33 AM PDT Three ratings companies from China, the United States and Russia said on Wednesday they will jointly launch a new agency to challenge the current global ratings system dominated by the "big three" US agencies. The new agency, which will be known as Universal Credit Rating Group, will be co-initiated by China's Dagong Global Credit Ratings Co, US-based Egan-Jones Ratings, and Russia's RusRating. The agency will be formally established in the next six months, and will be headquartered in Hong Kong, Dagong's President Guan Jianzhong said at a news conference in Beijing. Although details on the amounts to be invested by each company still need to be finalized, it will be a balanced structure among the three sponsors, said Richard Hainsworth, president of RusRating. Dozens of companies from more than 20 countries have expressed interest in participating in the project, Guan was quoted as saying by Agence France-Presse. But the "big three" US agencies will not be considered for membership because of a divergence in principles and positions, said Guan. Moody's Investors Service, Standard & Poor's Ratings Services and Fitch Ratings — the "big three" — currently control 95 percent of the global ratings market. However, the three companies were widely criticized for failing to sound an alert before the 2008 global financial crisis. Many debt instruments linked to the US housing market that sparked the crisis had been given highest ratings by the agencies. Sean Egan, president of the US-based Egan-Jones Ratings, said there is nothing more unethical than the current global credit ratings system, which sometimes downgrades a rating from the highest triple-A level to junk status within months. "If you're going to make a judgment on the future of a company, you should stick to it, if you're wrong, you have to accept it," said Hainsworth. "The old credit rating system has been necessary and useful in the past century, but we must remember it was developed in one segment in one economy, that was the public trading company in the US, whereas 60 percent of the global economy is made up of other companies," he added. The new agency's mission is to "construct a new credit ratings system within five years, and to meet the credit ratings needs of the world", according to the Beijing Declaration, unveiled at the news conference. "It will be a multilateral, independent, and international credit ratings agency comprised of private organizations whose responsibilities do not conflict with the ratings, and do not represent the interest of any particular country or group," Hainsworth said. The selection of Hong Kong as its headquarters also reflects the company's vision, because it's a place where Chinese culture was mixed with the legacy of the Western way of doing things, Hainsworth added. The new ratings are not intended to immediately replace the old system by the "big three" agencies, but to provide investors with more choices, Guan said. "If what we're saying is true, the old system will have to change, if not, then we'll fail. But I don't think we're going to fail," said Hainsworth. He said that the agency will strive to make profits via diversified sources of revenue, and he is confident that revenues will increase as credit ratings have become an increasingly important reference for regulators, in addition to the ratings paid by debt issuers and investors. The agency will engage in rating affairs worldwide, but the initial customers will mainly come from the US and European markets, said Jones. "The credit ratings system needs more voices," said Zhong Liang, director of public industry and sovereign ratings at Standard & Poor's. "Our job as a credit ratings agency is to make independent assessments and to release the information to the market." Ye Yiwen contributed to this story. Contact the writer at weitian@chinadaily.com.cn

Secret talks held over Diaoyu Islands Posted: 24 Oct 2012 11:33 AM PDT Chinese and Japanese diplomats discuss dispute at Shanghai meeting Chinese and Japanese diplomats met secretly over the weekend to discuss the Diaoyu Islands, Tokyo confirmed on Wednesday, in a sign that lines of communication remain open between the two countries. The meeting between the vice-ministers of foreign affairs, the second in a month, came as relations experienced a period of severe turbulence after Japan "purchased" the islands in September. Despite the meeting, reports emerged on Wednesday that Japanese Defense Minister Satoshi Morimoto watched a drill simulating the landing on an uninhabited island. The Japanese media said the drill was "targeting China". Japanese Vice-Minister of Foreign Affairs Chikao Kawai met Chinese officials, including his counterpart, Zhang Zhijun, in Shanghai over the weekend to discuss the Diaoyu Islands, Japanese media said on Wednesday. Kyodo News reported that the two nations agreed to "enhance communication". "I am aware of the reports," Japanese Chief Cabinet Secretary Osamu Fujimura said at a regular news conference in Tokyo. "That was part of the communication going on between Japan and China in various forms and at various levels. It just shows we are in constant contact at many levels." Foreign Ministry spokesman Hong Lei said on Wednesday in Beijing that the countries had always been in contact, especially over the Diaoyu Islands. Relations plunged after the Japanese government "purchased" the islands from a Japanese "owner" last month, triggering massive protests and calls to boycott Japanese products across China. Yang Bojiang, a professor of Japanese studies at the University of International Relations in Beijing, said Tokyo always denied there was a territorial dispute, but recent pressure from the political arena and the general public may have resulted in a shift. Yang warned that Tokyo, even as it takes a diplomatic route, has not given up military preparations. The Japanese Coast Guard and Maritime Self-Defense Force on Wednesday held a joint drill to track "suspicious vessels", a move Japanese newspaper Sankei Shimbun said was aimed at patrols of Chinese vessels in the waters off the Diaoyu Islands. Japanese business leaders called on the two countries to solve the dispute. Hiromasa Yonekura, chairman of the Japan Business Federation, on Wednesday warned that ties "have begun to show the deep impact in business operations as well as the economy". During a speech in Sapporo, Japan, Yonekura said "communication so far between Japan and China is far from enough", and both countries should use calm, diplomatic means to improve ties. Japan's economy has suffered the consequences of the dispute. Exports to China witnessed a monthly slump of 14.1 percent in September, Japan's Ministry of Finance said on Monday. Observers said around half of Japan's exports depend on cars, but vehicle exports to China in September suffered an annual drop of 44.5 percent. China is Japan's largest trade partner while Japan is China's third-largest trade partner. Bilateral trade in 2011 passed $340 billion, and Japan's exports to China are two times those to the United States. "The deteriorating relationships with China could prove to be a major blow to the Japanese economy," Ryutaro Kono, chief economist at BNP Paribas in Tokyo, told Dow Jones Newswires. "If this problem continues into early next year ... an economic recession would be unavoidable" in Japan, he said. Jin Baisong, a researcher with the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, said latest economic figures from Japan showed that the row with China has hit its economy hard. Contact the writers at zhangyunbi@chinadaily.com.cn and wujiao@chinadaily.com.cn AFP contributed to this story.

Nuclear plants set for coast Posted: 24 Oct 2012 11:33 AM PDT Suspension after Fukushima lifted for stations of 'highest standards' The construction of new nuclear power stations, which had been suspended since the Fukushima disaster in March 2011, will be resumed in China. But only a small number will be launched by 2015 and all of them will be located at coastal sites. Prior to the Fukushima disaster, some energy officials indicated China would embark on as many as 40 nuclear energy projects during the 12th Five-Year Plan (2011-15), and at least seven inland provinces applied to host plants. In contrast, according to a statement released on the government website on Wednesday, China will resume construction of nuclear power plants "in a steady and orderly way" and "at a reasonable pace". Two programs — the national plan for nuclear power security (2011-20) and nuclear power development (2011-20) — were approved on Wednesday at an executive meeting of the State Council chaired by Premier Wen Jiabao. A national energy development program up to 2015 was also approved. All new nuclear reactors must comply with the highest international safety standards, according to the plans. He Jiankun, director of the Institute of Low Carbon Economy at Tsinghua University, said nuclear power strikes a balance between an increasing thirst for energy and the need to cut greenhouse gas emissions. "Nuclear energy is irreplaceable," he said. China's competitiveness will be compromised if it rejects nuclear power or if it fails to use the latest nuclear technology, he said. The choice of a site for a nuclear power station "must be based on thorough scientific research". And there must be adequate assurances that under no circumstances would radioactive leakage occur, he added. China's nuclear power generating capacity accounts for just 1.8 percent of its electricity, lower than the average 14 percent for countries that have nuclear power, according to a government white paper on energy policies that was also released on Wednesday. "The development of nuclear power is significant for the optimization of China's energy structure and will safeguard national energy security," it said, adding China will continue to develop nuclear energy in a "safe and highly efficient" way. Safety is the priority, it said. "China has conducted comprehensive and stringent security and safety checks following the Fukushima nuclear accident. The results have proved that the safety of China's nuclear power is guaranteed," the white paper said. The paper also addressed China's increasing dependence on imported oil and said its low energy reserves continue to threaten energy security. Robust economic growth in the past two decades has transformed the country from a net oil exporter to a major importer. Experts said energy security and oil security are world issues that need global solutions. "The world's oil situation is changing with more geopolitical uncertainties," Tsinghua University's He said. "The development of gas shale in the United States has alleviated its reliance on imported oil and lessened its interests in the Middle East." China needs to boost oil exploration, increase global cooperation and contribute to the establishment of an international system of energy security, he said. Per capita energy consumption in China is about one-third of that of developed countries but will grow sharply, the white paper said. Li Zuojun, an economist at the Institute of Resources and Environmental Policies with the State Council's Development Research Center, said China must promote low-carbon development. Coal still accounts for about 70 percent of China's energy consumption and about 80 percent of its electricity production. Coal production was 3.18 billion metric tons in 2011 and the country aims to curb that to around 3.9 billion tons by 2015, according to the 12th Five-Year Plan for the coal industry. "China's energy consumption is highly reliant on abundant coal, which leads to serious environmental problems," Li said. The country has set a target to enhance the proportion of non-fossil fuels in the overall primary energy mix to 15 percent by 2020, while it also plans to cut carbon dioxide emissions per unit of GDP by 40 to 45 percent from 2005 levels by 2020. lanlan@chinadaily.com.cn

SOEs urged to speed up restructuring Posted: 24 Oct 2012 11:33 AM PDT A central government report issued on Wednesday urged State-owned enterprises to accelerate their corporatization and concentration process to increase competitiveness. Corporatization refers to the process of transforming a State-owned company into an entity with a corporate structure usually found in publicly traded companies, in order to adopt corporate management models. The report, submitted to a bimonthly session of the top legislature, identified the underdevelopment of the companies' corporate governance models as the main problem faced by SOEs. "The shareholding reform of the SOEs' parent companies is still lagging behind," the report said. "The uncertainty on how to achieve the complete listing of the SOEs without leaving behind nonperforming assets has to be tackled," it added. In the late 1990s and early 2000s, many SOEs were corporatized and radically restructured. About 100 major SOEs directly controlled by the State-owned Assets Supervision and Administration Commission of the State Council went through a capitalization process, during which the best assets went public. But the challenge of achieving the complete listing of parent companies, which include a large amount of nonperforming assets, still vexes policymakers. Oliver Rui, a professor of finance and accounting at China Europe International Business School in Shanghai, said the objective of the public ownership reform is to improve the SOEs' corporate governance models and to expose the corporations' management techniques to public supervision. "At present, the parent companies of the 117 central SOEs are largely nonpublic companies. Their business decisions are still mandated by the State-owned Assets Supervision and Administration Commission, not the public," he said. The government report also called for further concentration of the SOEs toward key industries and sectors. Research showed that State-owned companies are now present in almost all the competitive sectors. For example, a study showed that 20,296 SOEs, 17.8 percent of the total, are still involved in the wholesale trade, retailing and restaurant businesses. Rui said that from 1998 to 2003, the SOEs' presence in competitive sectors was downsized under the "grasping the big, letting go of the small" principle. But the process has been frozen or even downgraded as the 2008 financial crisis boosted the argument for a strong State presence in the economy. "However, several recent signs suggested that a more market-oriented approach is being recognized," Rui said. Despite its problems, the past reform made remarkable progress. The total assets of the 144,700 SOEs and State-controlled companies are worth 85.37 trillion yuan ($13.66 trillion), 3.3 times more than in 2003, according to Wang Yong, head of the State-owned Assets Supervision and Administration Commission. The net profits of SOEs saw an average annual growth of 25.2 percent from 2003 to 2011, increasing from 320 billion yuan to 1.9 trillion yuan, Wang said. But Xu Dingbo, a professor of macroeconomics at China Europe International Business School, noted that the average profitability of SOEs remains well below that of non-State firms. According to a report by the World Bank and China's Development Research Center of the State Council, the average return on equity of non-State firms is 9.9 percent above that of SOEs. "To sustain rapid GDP growth, China will need to extract more productivity from its currently protected services and utilities sectors," the World Bank's report said. The report presented to the national legislature also encouraged SOEs to implement the "go global" strategy through mergers and acquisitions, equity participation, initial public offerings, and restructuring, in a bid to build corporations able to compete on a global scale. zhengyangpeng@chinadaily.com.cn

Grad school graduates applying for menial jobs Posted: 24 Oct 2012 11:33 AM PDT Job opportunities as cleaners and drivers at government-affiliated institutions in a Northeast China city have attracted more than 7,000 qualified applicants, including 29 people who have a master's degree. District bureaus of urban administration and law enforcement in Harbin, capital of Heilongjiang province, plan to recruit 457 workers including 120 cleaners, 307 drivers and 30 auto repairmen. The city's human resources and social security bureau announced the recruitment project to the public in September and received some 11,500 applications. Nearly 7,200 are qualified for the positions. People who secure the jobs will enjoy social security benefits equivalent to local government workers. In China, civil servants and some workers at government-affiliated organizations do not have money deducted from their wages to pay their social security accounts. The government will cover their pension after they retire. People from outside Harbin will be granted local hukou, the permanent residence permit, said local labor authorities. A hukou carries the right to access a range of local public facilities such as education, subsidized housing, employment and social security. Applicants should be under 30 and must have completed college. Although the jobs on offer do not appear overly appealing, they have became quite sought after. Among those who applied for the jobs and are considered eligible for the positions, nearly 3,000 hold a bachelor's degree and 29 hold a master's degree. Applicants have to take an examination and be interviewed before they are hired. Liu Yu, 29, who works at a private firm in Harbin, said he applied for the post of cleaner as soon as he heard about the recruitment. Liu studied computer science at Jilin University and graduated in 2007. "If I can pass the exam, I will become a staff member of a government-affiliated institution. The job is much more stable than what I am doing now," he said. "Maybe in the first few years the work will be a little hard and I am sure the job will bring me many challenges, but I will strive for the chance to promote myself." It's not surprising that so many people with good educations are competing for cleaning positions, said Meng Lequn, an expert of sociology with Heilongjiang Provincial Academy of Social Sciences. "It shows that employment pressure has made many young people realize that they should seize every possible job opportunity," he said. Contact the writers at zhouhuiying@chinadaily.com.cn and chenxin1@chinadaily.com.cn

Civil service test applications surge Posted: 24 Oct 2012 11:33 AM PDT More people have successfully applied to take the national civil servant examination in 2013 than did the year before. As a result, the number of test takers next year is expected to reach a record high after falling for two straight years. Nearly 1.37 million qualified applicants had registered to take the 2013 exam by the time the application period closed at 6 pm on Wednesday, according to Zhonggong Education, a provider of private training for those who want to take the exam. Li Yongxin, president of the organization, said that figure was calculated by adding up the number of applicants in the official application system. The State Administration of Civil Service plans to release a final figure after it finishes examining the qualifications of last-minute applicants on Friday. "The number is expected to surpass 1.6 million," Li said. "Past experience tells us that the final figure will always be about 20 percent higher than what the number was when the application period closed." The exam has attracted some 1.3 million qualified applicants this year. In 2011, the number was 1.41 million and it was 1.46 million in 2010. Li attributed the increase in applications to a rise in the number of positions applicants can prove themselves qualified to hold. More than 140 State-level government agencies and their affiliated public institutions and local branches aim to recruit about 20,800 people in 2013, an increase of nearly 3,000 from this year. "China will see more than 6 million university graduates next year," Li said. "The economic outlook has not been good since the beginning of this year, and that has made it more difficult for university graduates to find jobs." Due to a slowing economy, coastal provinces such as Zhejiang and Guangdong, which are home to many promising private companies, have not been offering job seekers a great number of opportunities. As a result, many graduates are looking to the civil servant exam as an alternative way of finding work, he said. Li said another reason more people applied to take the exam next year is that more than 70 of the vacancies the applicants might be qualified to fill do not require them to have at least two years of work experience. The exceptions to that rule are certain central departments and provincial branches. Most of those posts are in city and county governments or below. "Central authorities tend to look more at candidates' grassroots work experience ... and everybody knows that," Li said. "So many university graduates would like to work in grassroots civil service posts before they take an opportunity to apply for jobs at higher levels of government." The civil service jobs that are most in demand vary from department to department. The most-sought-after position now is a research post at the National Bureau of Statistics' Chongqing branch, which had been the target of 9,411 applications by 6 pm on Wednesday. Explaining why the position is so popular, Li said its holder is required to have no educational attainments beyond a bachelor's degree. In contrast, there are 146 positions for which qualified applications have yet to be submitted. Li said the most unpopular posts are always found in departments such as meteorology and in remote places. This year, many departments are offering jobs only to candidates who can meet certain tough requirements. The Office of State Flood Control and Drought Relief Headquarters, for example, offered a position that requires the holder to make frequent visits to emergency rescue and disaster relief sites. It is described as being "bitter and better suited to a man". Trying to explain why jobs in civil service have been so popular in recent years, Liu Xutao, a professor with the Chinese Academy of Governance in Beijing, said they are stable and carry a large number of benefits, such as giving the people who holds them the right to acquire hukou, or a permanent residence permit. Not having a hukou prevents someone from having access various public services. People who live in Beijing but do not possess a hukou are not allowed to buy apartments or register cars unless they have paid personal income taxes or paid into social security accounts in the city for five consecutive years. "The civil servant exam provides a comparatively open, transparent and stable means of recruitment and people can easily give themselves a decent future after taking a government job," Liu said. "Many uncertainties exist for someone who works at a business, and businesses and the economy always change." He said many people who hold a master's degree or a higher diploma and were enrolled in the civil service system often later find that they are not suited to the posts they eventually take. "If the number of applicants for civil service jobs continues to increase year after year, we should seriously ask if there is a problem in our use of labor," Liu said. "Then we should take measures to better guide our use of labor resources." The national civil servant exam, which tests applicants' writing and other abilities, will be held on Nov 25 in large cities across the country. chenxin1@chinadaily.com.cn

Syria still mulling cease-fire during Eid al-Adha Posted: 24 Oct 2012 06:07 AM PDT Syria's Foreign Ministry said Wednesday that the army general command is still studying the proposal of a cease-fire during the upcoming Eid al-Adha.

China honors outstanding news reports, journalists Posted: 24 Oct 2012 04:43 AM PDT The All-China Journalists' Association on Wednesday honored several outstanding journalists and news reports.

China passes plans on energy development Posted: 24 Oct 2012 04:23 AM PDT China has passed several plans on energy sector development and nuclear power safety in the next few years to come, according to an official statement released on Wednesday.

China to publish books on Tokyo Trials Posted: 24 Oct 2012 04:05 AM PDT China on Wednesday started compiling a collection of books revivifying the historical trial of Japanese war criminals after World War II.

China builds first vessel for underwater archaeology Posted: 24 Oct 2012 03:52 AM PDT China plans to build its first vessel capable of retrieving archaeological findings from the sea by the end of 2013, a major step to strengthening the underwater search abilities of Chinese archaeologists who currently rely on rented shipping boats.

China pledges further reform of state-dominated industries Posted: 24 Oct 2012 04:27 AM PDT The Chinese government has vowed to reform state-dominated sectors and grow the market entry of industries such as telecommunications, a senior economic official said Wednesday.

China "urgently" needs greater investment in social assistance Posted: 24 Oct 2012 04:26 AM PDT China urgently needs to increase government investment in helping poor people by streamlining public expenditure, according to an official report tabled at the ongoing legislature session in Beijing Wednesday.

China Focus: CPC expected to bridge wealth gap by fair distribution Posted: 24 Oct 2012 04:22 AM PDT Zhang Lan, 43-year-old primary school teacher in southwest China's Sichuan province, has seen her monthly salary quadruple over the past decade to 4,000 yuan, but she still has to pinch pennies.

Vietnamese party leader meets Chinese state councilor Posted: 24 Oct 2012 02:58 AM PDT General Secretary of the Communist Party of Vietnam (CPV) Central Committee Nguyen Phu Trong met with visiting Chinese State Councilor Meng Jianzhu in Hanoi on Wednesday.

Essential abilities for safeguarding maritime sovereignty Posted: 24 Oct 2012 02:45 AM PDT The topic of defending national sovereignty over the Diaoyu Islands and maintaining maritime rights and interests of the South China Sea has recently become heated among media and the public.

Full Text: China's Energy Policy 2012 Posted: 24 Oct 2012 02:36 AM PDT The Information Office of the State Council, or China's cabinet, on Wednesday published the 2012 edition of white paper on the country's energy policy.

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