6 July 2015

Gentlefolk,

My last post from Qingdao for a while.  We leave on 8 July, first to Shanghai, then Hong Kong, and finally to Oz.  I’ll probably do a post in HK, but not in Australia.

As you know, I compile a monthly summary of news items, with a focus on news on China.  

There is so much competition within Western media outlets that usually only the unusual, sensational, or bizarre gets a mention. Hopefully this summary will give you a better idea of some of the things happening in China.

The events/items included are not necessarily the headlines, but rather things which caught my eye.

The second list, international events reported in China, is basically for me.  There are so many things happening around the world, that I find it useful to have such a list. 

These news items were sourced from the China Daily newspaper 1 – 30 June 2015. 

Actual events usually occurred a day or two before they appeared in the China Daily newspaper. 

Currency shown is US$, and the exchange rate used this month is US$1 = Yuan 6.2.

Remember: the China Daily is a government newspaper whose main purpose in life is to make the Communist Party of China (CPC) and the Chinese Government look good.  But if you strip away the propaganda, there is still quite a lot of interesting stuff in the paper. 

I can’t vouch for the accuracy of the information, but the Chinese keep a myriad of statistics and most of them are probably accurate.

Events which made the news in China in June 2015

(a) Domestic (in China) events and news

1 June	Beijing introduced tough new smoking restrictions which started on 1 June 2015. On-the-spot fines for individuals of $32, for establishments up to $1,600.
	The ancient city of Dali in Yunnan will levy an entry fee of $5 per visitor from 1 September.
2	Police are considering charging 3 photographers who took pictures of a nude model at the Forbidden City (aka Palace Museum) in Beijing at 8.30am on 17 May. The Forbidden City has introduced real-name registration for visitors; a maximum of 80,000 visitors a day will be admitted; online bookings are being encouraged.
	China Eastern Airlines will introduce wifi on all its domestic and international flights.
	KFC sued 3 local companies for spreading ‘malicious rumours’ about its food on social media.
3	The Eastern Star cruise ship capsized during a severe storm on the Jian Li (Hubei) section of the Yangtze River.  It was on an 11 day cruise from Nanjing to Chongqing. It was carrying 456 passengers (405 local tourists, 5 tour company staff, 46 crew). The Eastern Star was built in 1994 and modified in 1997 (to add more cabins).  It had a capacity to carry 540 people. Its sea-worthiness was checked in 2014. A major rescue mission was quickly mounted, including about 5,000 military and para-military personnel, cranes, 140 ships, and helicopters. Only 12 passengers survived. An official investigation into the disaster is underway. 21 companies (85 vessels) are authorised to run cruises on the Yangtze River. The company which owns the Eastern Star is headquartered in Chongqing. It is a govt company, originally in freight but switched to passengers 20 years ago. It has a fleet of six cruise ships.
	China has about 271,000 practicing lawyers.
	According to the World Health Organisation, China’s suicide rate has fallen from 19.4 per 100,000 in 2000 to 7.8 in 2012. The biggest reduction was in rural women.
	A five-book series titled “Understanding the Communist Party of China” was launched at the 2015 Book Expo in New York. It is available in English, German and French. The books are titled: The Good Fight; Serving the People; Governing China; Exploring the Miracle; and China and the CPC. At the same venue, “Karl Marx for Young Readers” was launched (author Han Yu Hai, translator Elizabeth Henry). The CPC has 88 million members in China, about 6.5% of the total population.
	The China Coal Association said that China’s coal production in the first Quarter of 2015 totalled 850 million tonnes (a decrease of 4% on Q1 2014), while sales Q1 2015 totalled 800mt.  Stockpiles are growing. A major coal producer, govt owned Shenhua Group, announced that it was cutting production by 10%; and management salaries were cut by more than 10%.
	Giant e-commerce company Alibaba entered the financial news sector when it bought Shanghai-based China Business Network for $193 million.
	Central State Owned Enterprises (SOEs) recorded profits of $114 billion in the first 4 months of 2015, 6% lower than the same period in 2014.  The State Council (Cabinet) ordered SOEs to close loss-making operations, and align staff salaries with profitability.
6	The Shanghai Composite Index (SCI) rose 1.5% to 5,023 (a seven year high; up almost 150% in 12 months) on turnover of $197 billion. Dual-listed stocks are now much higher on mainland exchanges than in Hong Kong. Stock brokers opened 4.4 million new trading accounts in the last week of May. Savings in China fell by $160 billion in April and by another $71b in May as people diverted their savings to the stock market. Several commentators warned of a ‘bubble’.
	Evergrande Football Club based in Guangzhou fired Italian coach Fabio Cannavaro and hired Brazilian Luis Felipe Scolari. Reports his contract is $5.6 m p.a.
7	The National College Entrance Exam (Gao Kao) is held on 7 & 8 June every year.  9.42 million students registered to sit the Gao Kao this year.  The result will determine the universities and courses for which students can apply.  There are always reports of attempted cheating.  This year an enterprising journalist in Wuhan infiltrated a gang offering to arrange impersonators to sit the exam. There were also reports that students from Hebei (many were children of govt officials) tried to sit the exam in neighbouring Inner Mongolia, where the standards are lower.
	The British Council announced a program to upgrade IELTS teachers in China.
	In May 2015 sales of Passenger Motor Vehicles (cars, vans, etc) totalled 1.6 million units, the lowest May result for a while. Many people are investing in the booming stock market and postponing car purchases. In the first 5 months of 2015 PMV sales totalled 10.05 million units, an increase of 2% over the same period in 2014.  Domestic brands had 42% market share. In the first 4 months of 2015 imports of cars declined by 20% compared with the same period in 2014 (first drop in 10 years); prices of imported cars have been cut by more than 10% to boost sales.
	Authorities in Beijing and Shanghai are wrestling with how to treat Uber and Didi Kuaidi.  Taxis worried about the competition.
	China’s international trade in May 2015: exports $189 billion; imports $130 billion.
	Premier Li Ke Qiang met with the Global CEO Council. Assured them that China would achieve economic growth of around 7% this year.
	McKinsey estimates that by 2022 75% of urban families will earn more than $9,000 p.a.
	China’s State Intellectual Property Office said that in 2014 it received 928,000 applications for invention patents, 2.9m trademark applications, and 492,000 copyright registrations. There were 26,000 filings for invention patents through the Patent Cooperation Treaty.
	In Beijing another three coal-fired power stations have been replaced by natural gas.  By 2020 natural gas is expected to represent 25% of Beijing’s energy use.
12	Eight college students played cards while on a visit to Tai’an. Bets were Y1 (16 cents). The police ‘busted’ the game for gambling, the students were detained for 15 days and fined $500 each.
	Zhou Yong Kang, 73, was sentenced to life imprisonment for corruption ($21m) and abuse of power. He was a State Councillor and Minister for Public Security. He was an alumni of China University of Petroleum.
	Four siblings (‘left behind children’) aged 5 to 13 in Bijie, Guizhou committed suicide by drinking pesticide. Their parents were migrant workers, never home. About 35% of rural children are classified as “left behind”.
	According to the State Oceanic Administration, the sea level of Guangdong Province has risen by an average of 3.4 mm per annum since 1980. 81% of China’s coastline is polluted, especially river estuaries and bays.
	At the end of 2014, China had 735 million hogs (up from 713m at the end of 2013).
	Following relaxation of the one-child policy, only 40,000 couples in Beijing have applied to have a second child – far fewer than expected.
	China exported 57 million bicycles in 2014, about 60% of world trade.
16	At Dazu in Chongqing, the 800 year old “Thousand arm Guan Yin” statue was reopened to the public after an 8-year restoration project. The statue is 8 meters high and 12 m wide.  100 kg of gold leaf was used in the restoration.
	The Ministry of Education stipulated that College tuition fees should not exceed 25% of the average annual teaching cost of a student.
	New movie “Lady of the Dynasty” about the love story between Yang Yu Huan (aka Yang Gui Fei) and Tang Dynasty Emperor Xuan Zong will be released shortly; the star is Fan Bing Bing.
	The Govt has instructed all civilian shipbuilders to ensure that new vessels are designed so they can be easily adapted for military use in emergencies.
	To maintain economic growth, the State Council announced new infrastructure projects in power grid, grain storage and waste water treatment.
	Less than 5% of Chinese men are circumcised (mainly Moslems).
19	Qihoo 360, China’s largest internet security provider, wants to de-list in the USA (they feel they can do better listing in China). Management has offered $77 per share, a 32% premium over the average price in the last 30 days, valuing the company at around $9 billion.
	The Chinese stock market had a bad week; the SCI lost 13% to end the week at 4,478. Very volatile, up one day, down the next.
22	Today is the Duan Wu national public holiday (aka Dragon Boat Festival). It commemorates popular statesman and poet Qu Yuan of the Chu Kingdom in the Warring States period (475 – 221 BC). Rather than surrender to his enemies, he jumped into the river.  People launched boats to rescue him; but to no avail.
24	The govt announced details of a big parade in Beijing on 3 September 2015 to mark the 70th anniversary of the Japanese surrender at the end of WW2.
	Police busted gangs who were involved in smuggling more than 100,000 tonnes of frozen meat, much of it very old.
	In 2014 Tsingtao Beer sold 9.2 million kiloliters of beer (18 billion bottles) worldwide.
25	Beijing’s population has increased from about 5 million in 1984 to 21.5 million in 2014;  52% live outside the 5th Ring Road.
	Only 16 of China’s 161 ‘major cities’ met national air quality standards in 2014.
	All govt officials must in future take a public oath of allegiance to the Chinese Constitution when assuming office.
	In 2014 there were 347 cases of serious violence against medical workers (doctors and nurses).  An estimated 70% of doctors suffered verbal or physical abuse.
	In May 2015 the Cyberspace Administration received 1.8 million complaints from the public; 58% of complaints related to pornographic material on the internet (including prostitution), 25% related to political comments, and 8% fraud.
	Estee Lauder reduced retail prices of its products in China by about 15%.  The Clinique 3 Step System package is down from $121 to $102.
26	An investigation by the National Audit Office found that about 25% of lottery funds (Welfare & Sports Lotteries) have been misused. Another report on State Owned Enterprises revealed many problems.
	Liu Xiang and actress Ge Tian have divorced after 9 months of marriage.  Liu became a national hero when he won the 110 hurdles at the 2004 Athens Olympics. His announcement on Sina Weibo got 100,000 comments in 2 hours.
	The Gao Kao results have been posted.  Students will now apply to their 5 top preferences for College entrance.
29	China’s central bank, the Peoples Bank of China, cut reserve ratios and interest rates.   Interest rate on deposits is now 2% and on loans is 4.85%.
	The govt’s austerity drive is working.  In 2014 spending by Departments on overseas travel, official vehicles and entertainment was down 27% on 2013.
30	June 2015 proved to be a terrible month for the Chinese stock market.  The SCI hit its peak at 5166 on 12 June (an increase of 152% in 12 months).  But it finished the month at 4053 (it closed at 3684 on Friday 3 July - it has lost 30% in 3 weeks).  Fears that further losses could affect the wider economy. Highly volatile: the average intra-day move of the SCI in June was 3.8%, more than four times the average movement on the S&P 500.
	Major flooding in parts of Jiangsu and Anhui Provinces.  Nanjing recorded 625 mm of rain in June (previous record 619mm was set in 1931).

(b) International events

1 June	At the Athletics Championships in Eugene, Oregon, Chinese sprinter Su Bing Tian recorded 9.99 sec in a heat of the 100m; the first Asian to break 10 seconds.
	Solar-powered plane Solar Impulse 2 left Nanjing for Hawaii; flight expected to take 6 days and 6 nights. (But bad weather forced it to land in Japan).
2	Forbes list of 100 top banks included 13 from China and 11 from USA; the top four were all Chinese: ICBC, CCB, ABC, BoC.
	Middle East Respiratory Syndrome (MERS) scare in South Korea. A SK businessman with MERS visited Guangdong.  All contacts put into quarantine.
	92 year old American Harriette Thompson of Charlotte North Caroline completed a marathon in 7 hours 34 minutes. She started running marathons in her 70s.
	A UN report on Ukraine civil war estimated 6,400 dead, 16,000 injured.
	China’s Wanda Group will buy the Hoyts theatre chain in Australia.
	China will import about 978 million tonnes of iron ore in 2015. Despite low prices, Vale of Brazil announced plans to expand production from 340 to 450 mtpa. Rio Tinto will increase production capacity in Australia to 350 mtpa.
	Ex-Olympic decathlon champion (Montreal 1976) Bruce Jenner, 65, had a sex-change operation and became Caitlyn Jenner.
	FIFA President Sepp Blatter, 79, resigned after 17 years heading world football.
	Tidal Lagoon Swansea Bay awarded the contract to build the world’s first artificial tidal power plant ($458m) to China Harbour Engineering Corp.
	First batch of China-made Volvo S60 sedans shipped to the USA.
6	Australian Alan Bond died of heart problems aged 77. When he was 11 his family migrated from England to Australia.  He built a huge business empire, which finally collapsed. In 1996 he was convicted of swindling $1.2 billion. Released after three years, he got back into business and within 8 years had amassed another fortune.   A likeable rogue. Bond is best remembered as backer of the Australian yacht which won the Americas Cup in 1983 (US yachts had held the Cup for 132 years!).
8	An international survey found China is best known for: panda; green-tea; yin/yang; Confucius; Yangtze River; kung fu.
	Pharaoh won the Belmont Stakes in America.  First horse to win the Triple Crown since Affirmed in 1978.
	French Open: Serena Williams beat Lucie Safarova. She has now won 20 Grand Slam tournaments (Steffi Graf 22, Margaret Court 24). Stan Wawarinka beat Novak Djokovic for the Men’s title.
9	A bid of $2.3m won Chinese businessman Zhu Ye lunch with Warren Buffett.
	G7 meeting in Germany: USA, Canada, UK, Germany, France, Italy, Japan.
10	Barcelona won the European Champions League (UEFA), their 4th time.  Barca has been Spanish Champion 7 times, and World Club Champion twice.
11	Jack Ma, Founder and Chairman of Alibaba, addressed The Economic Club of New York. 1,000 guests attended the luncheon.
	In a reciprocal deal the US has permitted imports of apples from China (first time in 17 years).
12	Sportsmen with highest earnings: Floyd Mayweather $300m; Manny Pacquio $160m; Cristiano Ronaldo $79m; Lionel Messi $74m; Roger Federer $67m; LeBron James $65m; Kevin Durant $54m; Phil Michelson $51m; Tiger Woods $51m.
	Official visit to China by Burmese opposition leader Anng San Suu Kyi.
	The Times ‘Top 100 Universities in Asia’ included 21 universities from China, 19 Japan. Peking University was ranked 4th and Tsinghua University 5th.
	Visit to USA by Fan Chang Long, Vice Chairman of the Central Military Commission. He met with Ash Carter, US Secretary of Defence in Washington.
15	Visitors from Taiwan will no longer need an Entry Permit, only a Travel Pass.  In 2014 5.4m visits by Taiwanese to the mainland; 4.1m the other way.
	The IMF is assessing the yuan’s inclusion on Special Drawing Rights basket.
16	Nine arrested in Hong Kong for plotting to bomb city areas (radical activists).
18	China-Australia Free Trade Agreement signed by Andrew Robb and Gao Hu Cheng (Ministers for Trade and Commerce respectively). Full implementation will take place over 12 years. 5,000 working-holiday visas will be issued every year to Chinese 18 – 30 year olds. Two-way trade has grown from $8.5 billion in 2000 to $137 b in 2014.
	Beijing’s proposals for electoral reforms in Hong Kong not passed by HK legislators.
	Talks on resolving the Greek financial crisis make little headway.
	Golden State Warriors beat Cleveland Cavaliers 4 – 2 to win the NBA Championship. Andre Iguodala named MVP.
19	UNHCR report: end 2014 there were 59m refugees and internally displaced persons in the world (up from 37m in 2005).
	Dylann Roof, 21, detained for fatally shooting 9 African-Americans in a church in Charleston SC. Moves to stop making and selling the Confederate Flag, which is regarded by many as a symbol of racism.
	In the 12 months to 31 March 2015, foreigners spent an estimated $104 billion buying USA property. Top were Chinese (Mainland, Hong Kong & Taiwan) $29b, then Canadians $11b, third Indians $8b.
23	Start of the annual US-China Strategic & Economic Dialogue, this time held in Washington DC. Top Americans: John Kerry and Jack Lew; top Chinese: State Councillor Yang Jie Chi and Vice Premiers Wang Yang and Liu Yan Dong.
	21 year old Texan Jordan Spieth won the US Golf Open; he won the masters earlier. He is the youngest Open Champion in 90 years.
25	Russia overtook Saudi Arabia to become the largest supplier of crude oil to China.  Imports from Russia in May averaged 927,000 barrels per day.
29	The powder at a “color party” in Taiwan ignited; 500 burnt, 200 seriously.
	Women’s Football World Cup quarter-finals in Canada: China lost to USA and Australia lost to Japan.  Semi-finals will be US vs Germany and Japan vs England.  [In the final on 5 July, USA 5 beat Japan 2].
	Song An Deng, 18, became the first Chinese-born player selected in the draft of America’s National Hockey League (NHL).
30	Framework of the Asia Infrastructure Investment Bank (AIIB) signed by 57 founding members in Beijing.

Another semester completed.  We have signed up for the 2015-16 academic year (suckers!?), so will return to Qingdao in early September for the start of the new semester.

Keep well and keep smiling.

Alex & Vera Olah

English teachers at the China University of Petroleum, Qingdao

www.upc.edu.cn

Monday 6 July 2015.