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
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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.
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The ancient city of Dali in Yunnan will levy an entry fee
of $5 per visitor from 1 September.
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2
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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.
|
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KFC sued 3 local companies for spreading ‘malicious
rumours’ about its food on social media.
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3
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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.
|
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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.
|
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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.
|
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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%.
|
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Giant e-commerce company Alibaba entered the financial
news sector when it bought Shanghai-based China Business Network for $193
million.
|
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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.
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6
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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.
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7
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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.
|
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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.
|
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Authorities in Beijing and Shanghai are wrestling with how
to treat Uber and Didi Kuaidi. Taxis
worried about the competition.
|
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China’s international trade in May 2015: exports $189 billion;
imports $130 billion.
|
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Premier Li Ke Qiang met with the Global CEO Council.
Assured them that China would achieve economic growth of around 7% this year.
|
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McKinsey estimates that by 2022 75% of urban families will
earn more than $9,000 p.a.
|
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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.
|
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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.
|
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12
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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.
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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.
|
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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”.
|
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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.
|
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At the end of 2014, China had 735 million hogs (up from
713m at the end of 2013).
|
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Following relaxation of the one-child policy, only 40,000
couples in Beijing have applied to have a second child – far fewer than
expected.
|
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China exported 57 million bicycles in 2014, about 60% of
world trade.
|
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16
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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.
|
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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.
|
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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.
|
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To maintain economic growth, the State Council announced
new infrastructure projects in power grid, grain storage and waste water
treatment.
|
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Less than 5% of Chinese men are circumcised (mainly Moslems).
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19
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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.
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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.
|
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22
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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.
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24
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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.
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Police busted gangs who were involved in smuggling more
than 100,000 tonnes of frozen meat, much of it very old.
|
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In 2014 Tsingtao Beer sold 9.2 million kiloliters of beer
(18 billion bottles) worldwide.
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25
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Beijing’s population has increased from about 5 million in
1984 to 21.5 million in 2014; 52% live
outside the 5th Ring Road.
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Only 16 of China’s 161 ‘major cities’ met national air
quality standards in 2014.
|
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All govt officials must in future take a public oath of
allegiance to the Chinese Constitution when assuming office.
|
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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.
|
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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.
|
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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.
|
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26
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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.
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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.
|
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The Gao Kao results have been posted. Students will now apply to their 5 top
preferences for College entrance.
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29
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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%.
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The govt’s austerity drive is working. In 2014 spending by Departments on overseas
travel, official vehicles and entertainment was down 27% on 2013.
|
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30
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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.
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Major flooding in parts of Jiangsu and Anhui
Provinces. Nanjing recorded 625 mm of
rain in June (previous record 619mm was set in 1931).
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(b) International
events
1 June
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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.
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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).
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2
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Forbes list of 100 top banks included 13 from China and 11
from USA; the top four were all Chinese: ICBC, CCB, ABC, BoC.
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Middle East Respiratory Syndrome (MERS) scare in South
Korea. A SK businessman with MERS visited Guangdong. All contacts put into quarantine.
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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.
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A UN report on Ukraine civil war estimated 6,400 dead,
16,000 injured.
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China’s Wanda Group will buy the Hoyts theatre chain in
Australia.
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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.
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Ex-Olympic decathlon champion (Montreal 1976) Bruce Jenner,
65, had a sex-change operation and became Caitlyn Jenner.
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FIFA President Sepp Blatter, 79, resigned after 17 years
heading world football.
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Tidal Lagoon Swansea Bay awarded the contract to build the
world’s first artificial tidal power plant ($458m) to China Harbour
Engineering Corp.
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First batch of China-made Volvo S60 sedans shipped to the
USA.
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6
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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!).
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8
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An international survey found China is best known for:
panda; green-tea; yin/yang; Confucius; Yangtze River; kung fu.
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Pharaoh won the Belmont Stakes in America. First horse to win the Triple Crown since
Affirmed in 1978.
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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.
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9
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A bid of $2.3m won Chinese businessman Zhu Ye lunch with
Warren Buffett.
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G7 meeting in Germany: USA, Canada, UK, Germany, France, Italy,
Japan.
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10
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Barcelona won the European Champions League (UEFA), their
4th time. Barca has been
Spanish Champion 7 times, and World Club Champion twice.
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11
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Jack Ma, Founder and Chairman of Alibaba, addressed The
Economic Club of New York. 1,000 guests attended the luncheon.
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In a reciprocal deal the US has permitted imports of
apples from China (first time in 17 years).
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12
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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.
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Official visit to China by Burmese opposition leader Anng
San Suu Kyi.
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The Times ‘Top 100 Universities in Asia’ included 21
universities from China, 19 Japan. Peking University was ranked 4th
and Tsinghua University 5th.
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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.
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15
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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.
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The IMF is assessing the yuan’s inclusion on Special
Drawing Rights basket.
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16
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Nine arrested in Hong Kong for plotting to bomb city areas
(radical activists).
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18
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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.
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Beijing’s proposals for electoral reforms in Hong Kong not
passed by HK legislators.
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Talks on resolving the Greek financial crisis make little
headway.
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Golden State Warriors beat Cleveland Cavaliers 4 – 2 to
win the NBA Championship. Andre Iguodala named MVP.
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19
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UNHCR report: end 2014 there were 59m refugees and
internally displaced persons in the world (up from 37m in 2005).
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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.
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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.
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23
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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.
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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.
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25
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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.
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29
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The powder at a “color party” in Taiwan ignited; 500
burnt, 200 seriously.
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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]. |
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Song An Deng, 18, became the first Chinese-born player
selected in the draft of America’s National Hockey League (NHL).
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30
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Framework of the Asia Infrastructure Investment Bank
(AIIB) signed by 57 founding members in Beijing.
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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
Monday 6 July 2015.
