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Burma’s Year of Change Raises Hopes

Burma’s military-backed, but nominally civilian, government has surprised critics with its political and economic reforms this past year. The liberal moves resulted in a visit by U.S. Secretary of State Hillary Clinton in December. During her trip, VOA’s Daniel Schearf spoke with residents of the main city, Rangoon, about what they think of the changes, so far.

U.S. Secretary of State Hillary Clinton’s December visit to Burma was both a reward and encouragement for authorities after a year of unexpected reforms.

President Thein Sein, despite being a former general, is slowly moving away from decades of military rule and economic problems.

Although still made up of former officers, his government ordered the release of hundreds of political prisoners, relaxed media censorship and held separate talks with ethnic rebel groups and pro-democracy leader Aung San Suu Kyi.

The Nobel Prize winner was released from 15 years of house arrest in 2010 and plans to run for parliament in next year’s by-election.

Meeting with Clinton at the home where she was detained, Aung San Suu Kyi sounded optimistic about the direction of the country.

“This will be the beginning of a new future for all of us, provided we can maintain it. And, we hope to be able to do so,” she said.

Burma was once the star of Southeast Asia but, much like Rangoon’s British colonial-era buildings, crumbled under military rule. Just months ago most people in Burma were too afraid to talk openly about politics, especially to journalists, who are rarely allowed into the country.

But, since March, the new government’s moves toward reform are encouraging some to speak up.

Riding past Rangoon’s colonial Customs House, trishaw driver Maung Than Zaw says, despite reform efforts, he can barely make ends meet. Things have not gotten better for ordinary people like him;  it is getting worse, he says, adding that is difficult to earn four or five dollars per day.

Rangoon fruit vendor Mi Mi Aye says she worries about being arrested, but still wants to criticize the so-called civilian government. She says nothing has changed, the new government is just the same people as before.

There are others who say the economy and the government are improving.

At the Golden Palace jewelry store, in Rangoon’s Chinatown, a crowd of shoppers press against a long glass display case, clamoring for attention from sales staff.

Owner Aung Kyaw Win has one of Burma’s most famous chains of gold and gem stores.  He says business is good and would be even better if European Union and U.S. sanctions were lifted.

“I think our government, economically, they are trying to change a lot. We are sincerely hoping, because we heard from the newspaper and we can able to see they are changing.”

The government is slowly reducing cumbersome regulations and monopolies that crippled the economy. One key step is unifying the exchange rate to curb corruption. The official rate is seven kyat to the dollar. The actual market rate is 100 times higher.

A money counting machine flips through a stack of Burma’s currency.  At this currency exchange center in Rangoon, U.S. dollars are traded for bricks of kyat.

Many in Burma, like Lwin Aung Zaw, are paid in American dollars, but they are not legally allowed to possess foreign currency without a permit and have to exchange their salaries every month or risk jail.

He says they can exchange foreign currency at these counters. But, according to the law, they are not legally allowed to have foreign money.  He believes it would be better if authorities changed this rule.

At a tea shop in Rangoon a young man rolls dough balls into thin pancakes, called roti, and fries them in oil.

Tea shops are a center of Rangoon social life, where people meet for a snack, but also to talk business and about how Burma is changing. Taxi driver Tint Lwin says, like most people, he is focused more on earning a living than politics.

He says he sees a lot of developments.  Because he is a taxi driver he can only comment from a driver’s point of view. The roads are getting better, he says, but they still have heavy traffic jams.

Retired civil servant Thaung Htwe says he hopes Clinton’s visit will spur more reforms. He hopes that Burma will be developed more in the future.  And he  says by having good relations with the United States, they might see development in all sectors; economy, society, politics and so on.

Despite a more open environment, not everyone welcomes foreign journalists asking questions.

In a Rangoon market, an older man approaches VOA and demands we stop video taping, saying we need permission from local authorities.

“I don’t like it.  We don’t like it…Yeah, this [is] the poor area.  Not for news,” he says.  He recommends we go to a wealthier area to show how rich Burma is.

But locals in the market argue back that they are poor.

Although hopes are raised that Burma’s economy may revive and the country may finally turn the corner to democracy the road ahead is still uncertain. Rights groups point out military abuses continue in ethnic areas, including murder and rape.

And, despite reforms so far, there are still hundreds of political prisoners behind bars which authorities have yet to acknowledge.

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Burma’s Year of Change Raises Hopes

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Burma Loosens Grip on Media Censorship

Burma Loosens Grip on Media Censorship

Burma’s notorious censors have relaxed their tight grip on the media this year, although journalists are still by no means able to freely report.

Just months ago it would have been unthinkable to have Burma’s democracy leader Aung San Suu Kyi featured in local media.

But Wai Phyo says that censorship authorities, who scrutinize all their publications, have loosened up.

“We could report on Aung San Suu Kyi’s attending the opening ceremony of the new library,” Wai Phyo noted. “On the same day, she attended the birthday celebration for a political prisoner [Min Ko Naing - a political prisoner and 88 generation student leader who is still in jail], but we were not allowed to report about it. Both stories are about Aung San Suu Kyi. The censorship board is not absolutely tightening, but not relaxing all either. They are adjusting depending on the contents.”

He said they can evade censors altogether by posting articles directly onto their Facebook page, which now has more than 20,000 followers, as long as they do not criticize authorities.

“For urgent news we just post it online without getting permission from the censorship board. As long as the news is not attacking them [the government], we can post articles on Facebook freely,” said Wai Phyo.

Despite the slight opening and hope for further reforms, Eleven Media Group journalists did not want their faces shown for fear of any possible repercussions.

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Burma Loosens Grip on Media Censorship

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Laws on Paper vs. Law in Practice

Laws on Paper vs. Law in Practice

Stanley Lubman, a long-time specialist on Chinese law, is a Distinguished Lecturer in Residence at the University of California, Berkeley, School of Law and is the author of “Bird in a Cage: Legal Reform in China After Mao,” (Stanford University Press, 1999).

China has enacted 240 laws, 706 administrative regulations, and over 8,600 local regulations since August 2011, according to the latest official government review of China’s legal system.

But what do these add up to in practice?

A white paper issued by the State Council on last month pays too much attention to laws on paper, while slighting meaningful discussion of how the legal system actually works—or doesn’t.

Tracing legislation since the People’s Republic was established, especially since 1978, the State Council’s lengthy review does reflect the extraordinary progress of post-Mao China. It cites successive Constitutions and important laws among the legislative flood that within the short span of 30 years has produced the framework for the “socialist market economy” and all the branches of the modern Chinese state. The document celebrates the creation of a ”socialist system of laws with Chinese characteristics,” which is hailed as having established the “legal foundation for economic, political, cultural and social development.”

Knowledgeable observers will have difficulty recognizing some aspects of the system that is described. For example, the white paper claims that China has developed “a comparatively complete legal system to protect human rights” – a statement contradicted by the country’s continuing repression of dissent and heightened censorship of the media, and by an ongoing assault on lawyers who lawfully assert their clients’ rights.

Rather than dissecting obviously questionable claims, however, a hard look at what the document omits yields useful insight into China’s legal system.

One message that is conspicuously muted is the need to resist interference with the independence of decision-making by the courts and procuracy. The white paper states that the courts and procuracy exercise their power “independently,” which is flatly not the case.

An editorial published in the state-run China Daily after the white paper was issued shares the celebratory tone of the document, but adds a note of caution:

….just as the white paper has observed, having laws alone does not mean rule of law. More needs to be done in order to add teeth to our laws. The judiciary must be divested from departmental and local interests. And those in positions of power, no matter institutions or individuals, must set the right example.

None other than Wen Jiabao, China’s Premier, has called for an independent judiciary in stronger language than is used in the latest document. In an interview at the World Economic Forum in Geneva in September of this year, Premier Wen said: “We need to uphold judicial justice. Procuratorial and judicial authorities should keep their due independence and be free from interference by any administrative organ, social group or individual.”

In a speech at the same conference, Wen elaborated further on the point. “The most important mission of a ruling party is to abide by and act in strict accordance with the Constitution and the laws,” he said. “The Party should not replace the government in governance, and problems of absolute power and overconcentration of power should be redressed.”

This last statement was interpreted by one knowledgeable foreign observer, Elizabeth Economy, as meaning that “the Party does not act according to the Constitution; and the Party abuses its power.”

The white paper also underemphasizes the endemic instances of poor law enforcement or nonenforcement of the very laws whose existence it celebrates, though it does acknowledge the issue:

The vitality of laws lies in their enforcement. …Now, the problem of ensuring that laws are observed and strictly enforced and that lawbreakers are prosecuted has become more pronounced and pressing. Therefore, China will take active and effective steps to guarantee the effective enforcement of the Constitution and laws, and accelerate the advance of the rule of law and the building of a socialist country under the rule of law.

One example of this problem appeared in a report on food safety in the China Daily the day before the white paper was published. The State Council cited the Food Safety Law as an example of laws enacted “to protect the people’s health and safety,” but the China Daily article, consistent with other reports of poor product safety that appear almost daily in the Chinese media, told of farmers adding a harmful chemical to food given to sheep. The report went on to quote a researcher at the China Animal Agricultural Association as saying that local officials “always try to conceal their malpractice when such food safety issues are exposed because it is their dereliction that partly caused such problems.”

Conspicuously absent from the white paper is any discussion of conflicts between laws and the policies that force local governments to chose between them. For example, on the day the white paper was published, the China Daily carried a story about pressures on to “drive up” local GDP. It said that local governments may “gobble up land for economic development” resulting in “illegal land use” that “may become rampant.” Examples included “illegally permitting projects like golf courses, railways and industrial parks to attract investment.” (In 2004, the State Council issued a notice to suspend construction of new golf courses, but since then more than 400 golf courses have been constructed across the country.)

The white paper is not completely devoid of comments on the relation between law and society, acknowledging in a passage near the bottom that law must evolve:

Social practice is the foundation of laws, and laws encapsulate practical experience. Social practice is endless, and legislative work should also constantly move forward with the times. Building socialism with Chinese characteristics is a long-term historic task. Improving the socialist system of laws with Chinese characteristics is also a long-term and arduous historic task, and it must advance in tandem with the practice of socialism with Chinese characteristics.

By preceding the change of leadership next year, this document could mark a pause in legislative activity. Since the next leaders have not yet been officially chosen, their agenda is unknown.

Given the problems unmentioned in the white paper that have been noted here, more attention should be placed on how laws are implemented as on what they say. What is necessary – someday– is a shift from using law as a political tool to promoting it as a force in Chinese society more distinct from Party policy. That, however, depends on the leadership’s willingness to endow laws with greater significance than they have today. The task is challenging, but vital for China’s governance.

Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2009 stood as the second-largest economy in the world after the US, although in per capita terms the country is still lower middle-income.

In 2009, China announced that by 2020 it would reduce carbon intensity 40% from 2005 levels.

China is the world’s fastest-growing major economy, with an average growth rate of 10% for the past 30 years.

The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978.

China is the world’s largest producer of rice and is among the principal sources of wheat, corn (maize), tobacco, soybeans, peanuts (groundnuts), and cotton.

The technological level and quality standards of its industry as a whole are still fairly low, notwithstanding a marked change since 2000, spurred in part by foreign investment.

Over the years, large subsidies were built into the price structure, and these subsidies grew substantially in the late 1970s and 1980s.

Globally, foreign investment decreased by almost 40 percent last year amid the financial downturn and is expected to show only marginal growth this year.

From January to June, the ODI in financial sectors was up by 44 percent to $17.9 billion, and in July alone, the ODI recorded $8.91 billion, the highest this year.

China is aiming to be the world’s largest new energy vehicle market by 2020 with 5 million cars.

Although China is still a developing country with a relatively low per capita income, it has experienced tremendous economic growth since the late 1970s.

Even with these improvements, agriculture accounts for only 20% of the nation’s gross national product.

In terms of cash crops, China ranks first in cotton and tobacco and is an important producer of oilseeds, silk, tea, ramie, jute, hemp, sugarcane, and sugar beets.

Fish and pork supply most of the animal protein in the Chinese diet.

China is one of the world’s major mineral-producing countries.

There are also deposits of vanadium, magnetite, copper, fluorite, nickel, asbestos, phosphate rock, pyrite, and sulfur.

Major industrial products are textiles, chemicals, fertilizers, machinery (especially for agriculture), processed foods, iron and steel, building materials, plastics, toys, and electronics.

China’s economy, though strengthened by the more liberal economic policies of the 1980s and 90s, continues to suffer from inadequate transportation, communication, and energy resources.

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Laws on Paper vs. Law in Practice

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Following Jiang Death Rumors, China’s Rivers Go Missing

Following Jiang Death Rumors, China’s Rivers Go Missing

China’s longest river, the Yangtze, has been at the heart of historic floods this summer that have killed dozens of people and laid waste to hundreds of thousands of acres of farmland. But to users of one of China’s most popular social media sites, it no longer exists. Searches for the Yangtze’s Chinese name – Chang Jiang (长江)—on Sina.com’s Weibo microblogging platform came up empty on Wednesday, as did searches for a number of other Chinese rivers, yielding instead the service’s standard censorship notice: “According to the relevant laws, regulations and policies, the results of this search cannot be displayed.” Why the sudden aversion to flowing bodies of water? The likeliest explanation is a torrent of rumors circulating online since Tuesday that former president Jiang Zemin is either gravely ill or has already died. Mr. Jiang’s surname means “river.” The Chinese rumor mill has wrongly predicted Mr. Jiang’s death before. But the latest round of speculation comes just days after the 84-year-old former leader conspicuously failed to show up at celebrations marking the 90th anniversary of the founding of the Chinese Communist Party. He would be the longest-serving and in many ways most significant Chinese leader to have died since Deng Xiaoping in February 1997. Regardless of whether the rumors are true, Sina is taking no chances. In addition to “river,” the company has also blocked searches for “death” in various iterations as well as “301 Hospital,” a reference to the People’s Liberation Army General Hospital in Beijing where top leaders are often treated. Beyond blocking searches, the service’s human censors have also been busy hand-deleting posts that mention the former leader. Chinese microbloggers have employed a variety of tricks in an apparent attempt to get around the blocks. With Weibo censors blocking searches the word for “hung” (挂了), a common Chinese euphemism for death, users have been circulating an image showing an empty set of clothing hanging out to dry, pants hiked up to chest level the way Mr. Jiang preferred. It’s not the first time China’s censors have gone to great lengths to prevent Internet users searching out information on the country’s top leaders. At various times, Chinese language searches for “carrot” on Google have been blocked , apparently because one of the three characters in the word matches the surname of current Chinese president Hu Jintao. There are some inconsistencies in Sina’s apparent effort to quash the speculation surrounding Mr. Jiang. While “myocardial infarction” is blocked, “heart attack” mysteriously is not. Searches for “301 Hospital” that use Chinese characters for the numbers instead of Arabic numerals likewise produce results. As always, it remains unclear whether the censorship effort has managed to calm speculation about Mr. Jiang’s death or encouraged it further. Jiang-related rumors and commentary remained rife Wednesday night on Twitter, which is blocked in China but can be accessed by means of firewall circumvention software. And while Sina’s content police have gotten wise to the image of the empty suit of clothing, it remains available on Google+ . – Josh Chin. Follow him on Twitter @joshchin

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Following Jiang Death Rumors, China’s Rivers Go Missing

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Sina Weibo: Competition for Twitter?

Sina Weibo: Competition for Twitter?

Chinese microblog operator Sina Corp. already has what seems an unassailable lead over Twitter in China, thanks to the fact that Chinese government blocks access to the U.S. website for fear it could be used to spread political dissent. Now, as Sina aims to recharge its business growth by investing heavily in its microblog site, Weibo, some are speculating that the company intends eventually to take on Twitter overseas—where China’s censorship rules could flip things around and put Sina at a disadvantage.

Bloomberg

Sina is developing an English-language version of Weibo, which had over 140 million registered users at the end of April, a company spokesman said Wednesday. Sina doesn’t have a public timeline for its release and it’s still in the “first stage” of development, he said. He dismissed as speculation the possibility that Weibo could compete with Twitter.

The spokesman couldn’t immediately confirm whether the English version will be a separate service or a new user interface for the current Weibo. A separate service would be a more aggressive move suggesting Sina might intend to compete globally with Twitter.

The English version of Weibo will target the platform’s overseas users, who currently account for more than 10% of the total and many of whom may be overseas Chinese, the spokesman said. English-speaking foreigners in China could also use the service, he said. Just as Sina is working on new features like online games and e-commerce services to add to Weibo in Chinese, in the longer term Sina is also likely to add functions to its English version, the spokesman said.

Sina already recently added an English-language user interface to its Sina Weibo iPhone app. Weibo users conduct most of the their activity on the service via mobile devices, rather than personal computers.

Whether by design or not, an English Weibo would compete with Twitter for certain users. Twitter was gaining a following in China before it was blocked, along with Facebook, following deadly ethnic riots in China’s western Xinjiang region in 2009. (Some dedicated Chinese users continue to use Twitter by using a tool like a virtual private network to run around China’s Internet censors.)

Sina appears likely to police user posts on the English version of Weibo just as it does on the Chinese version, where it filters messages for sensitive content to comply with Chinese regulations. When asked if Sina will filter content on an English Weibo, the company spokesman said Sina will continue to comply with Chinese regulations.

Sina Chief Executive Charles Chao in April said Sina will likely seek overseas partners for the development of Weibo. “It doesn’t compete in a foreign language and I think it’s a long shot. It’s not our top priority, but we probably will seek partners in other countries to develop our product,” he said.

An English Weibo could appeal to overseas users particularly interested in China, and in the longer term Sina could aim to attract users based on Weibo’s unique features, said Mark Natkin, managing director of Marbridge Consulting in Beijing. Weibo has in some cases added features unavailable on Twitter, such as a section for comments on other users’ posts, he said.

But China’s censorship rules could be a major hurdle for Sina overseas, and its services will need to meet a substantial demand not already met by Twitter or other websites, analysts said.

“Really for Weibo, it’s what do you do that nobody else does? … And aren’t you affiliated with the Chinese government? Those are the two questions that are really going to damage Weibo the most,” said David Wolf, chief executive of Wolf Group Asia, a Beijing-based marketing strategy firm.

–Owen Fletcher

The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978.

Economic development has been more rapid in coastal provinces than in the interior, and approximately 200 million rural laborers and their dependents have relocated to urban areas to find work.

China is the world’s fastest-growing major economy, with an average growth rate of 10% for the past 30 years.

Nevertheless, key bottlenecks continue to constrain growth.

China is the world’s largest producer of rice and is among the principal sources of wheat, corn (maize), tobacco, soybeans, peanuts (groundnuts), and cotton.

A report by UBS in 2009 concluded that China has experienced total factor productivity growth of 4 per cent per year since 1990, one of the fastest improvements in world economic history.

China’s ongoing economic transformation has had a profound impact not only on China but on the world.

Both forums will start on Tuesday.

“The growth rate (for ODI) in the next few years will be much higher than previous years,” Shen said, without elaborating.

China is aiming to be the world’s largest new energy vehicle market by 2020 with 5 million cars.

In large part as a result of economic liberalization policies, the GDP quadrupled between 1978 and 1998, and foreign investment soared during the 1990s.

Since the late 1970s, China has decollectivized agriculture, yielding tremendous gains in production.

Except for the oasis farming in Xinjiang and Qinghai, some irrigated areas in Inner Mongolia and Gansu, and sheltered valleys in Tibet, agricultural production is restricted to the east.

Hogs and poultry are widely raised in China, furnishing important export staples, such as hog bristles and egg products.

There are also extensive iron-ore deposits; the largest mines are at Anshan and Benxi, in Liaoning province.

China is among the world’s four top producers of antimony, magnesium, tin, tungsten, and zinc, and ranks second (after the United States) in the production of salt, sixth in gold, and eighth in lead ore.

Hydroelectric projects exist in provinces served by major rivers where near-surface coal is not abundant.

Great inland cities include Beijing and the river ports of Nanjing, Chongqing, and Wuhan.

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Taiwan’s Diminishing Media Freedom

Taiwan’s Diminishing Media Freedom

Given its location in a region marked by repressive regimes and tight media controls, it might seem to be splitting hairs to parse media freedoms in Taiwan. According to Freedom House’s most recent Freedom of the Press report released earlier this week, Taiwan remained a ‘free’ country, rated well above fellow so-called Asian tigers South Korea, which was rated ‘partly free,’ and Singapore, rated ‘not free.’ It’s noteworthy nevertheless that Taiwan, despite doing better than its neighbors, has slid in the Freedom House rankings during each of Ma Ying-jeou’s three-years as president, falling from 32nd in 2008 to its current position at 48. Due to the relative infancy of media freedom in Taiwan, the roots of which extend to the late 1980s, and the close attention paid to the lack of those rights in China, many of the events the report calls attention to have led to widespread concern around Taiwan. Freedom House, a U.S.-based democracy advocacy group founded in the 1940s , praised Taiwan’s media environment as “one of the freest in Asia,” but noted “a growing trend of marketing disguised as news reports, a proposed legal amendment that would limit descriptions of crime and violence in the media, and licensing obstacles” as concerns that led to the lower rating. In a review of the report, Commonwealth Magazine noted that Taiwan has been hit with a “negative point” in the economic environment category each year since 2008, indicating growing concern over the effect commercial interests have had on the independence of Taiwanese media. The report cited the December resignation of a senior reporter, Dennis Huang, at the China Times following what he said was an “ invasion of regular news pages by advertorials .” The practice of placing “embedded marketing” or articles paid for by commercial interests without identifying them as advertisements within newspapers has been a concern in Taiwan for years, but Mr. Huang’s resignation catapulted it into the public spotlight. The government amended the Budget Law in January to prohibit the use public funds in paying for advertisements (something it did when promoting the Floral Expo last year), but Freedom House says concerns remain about the buying of news by the mainland Chinese government . The report also pointed to worrying signs that Taiwanese media may be subject to commercially-motivated censorship stemming from the island’s relationship with mainland China, singling out a column that ran in the China Times on June 4, the anniversary of the Tiananmen Square massacre. The column listed historically important events on both sides of the Taiwan Strait, but did not bring up the crackdown. As Freedom House notes, China Times is owned by Tsai Eng-meng, a businessman with extensive interests in China. “As commercial ties between Taiwan and mainland China deepened in 2010 with the signing of the Economic Cooperation Framework Agreement, press freedom advocates raised concerns that media owners and some journalists were whitewashing news about China to protect their own financial interests,” the report said. The report also brought up growing concerns about an increasing political polarization of Taiwan’s media sources, subjective reasoning for the repeated rejection of an application by Next Media to start a cable television channel, and a new un-passed law designed to limit depictions of violence, drug use and lewdness in media. The government may have a lot of work to do to improve Taiwan’s standing in next year’s rankings, but many of the island’s media problems come from within the journalism profession itself, says Dennis Peng, associate professor of journalism at National Taiwan University. Beyond the advertorials and limits on lewdness, Taiwanese media is plagued by exaggerated stories and rigged scenes, according to Mr. Peng. “Competition in TV news is fierce and most media have already given up their guard of ethics,” he says. “The only bottom line left is the legal one.” Mr. Peng said he had little hope this race to the bottom would end anytime soon, but a strong reaction around Taiwan to exaggerated coverage of the Japan earthquake – one local station broadcast a clip of a tsunami from Deep Impact striking New York ahead of the local news – demonstrates people in Taiwan are growing increasingly weary of the hyperbole. Whether or not the trends in Taiwanese media can be reversed remains unclear, but the action taken against the paid ads at least demonstrates that some on the island are willing to make the effort. – Paul Mozur, with contributions from Aries Poon.

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China Watch: Stanley Ho Finds Solution, Spin Off Sina Weibo?

A daily list of the best of The Wall Street Journal’s China coverage and what the Journal’s reporters in China are reading and watching online. (NOTE: WSJ has not verified items in the ‘News Items’ section and does not vouch for their accuracy.)

WSJ Highlights:

News Items:

Digging Deeper:

Internet Watch:

Economists Hold Forth:

–complied by Josh China. Follow him on Twitter @joshchin.

Reforms started in the late 1970s with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, the foundation of a diversified banking system, the development of stock markets, the rapid growth of the non-state sector, and the opening to foreign trade and investment.

In 2006, China announced that by 2010 it would decrease energy intensity 20% from 2005 levels.

China has emphasized raising personal income and consumption and introducing new management systems to help increase productivity.

Available energy is insufficient to run at fully installed industrial capacity, and the transport system is inadequate to move sufficient quantities of such critical items as coal.

The two sectors have differed in many respects.

A report by UBS in 2009 concluded that China has experienced total factor productivity growth of 4 per cent per year since 1990, one of the fastest improvements in world economic history.

China’s increasing integration with the international economy and its growing efforts to use market forces to govern the domestic allocation of goods have exacerbated this problem.

Globally, foreign investment decreased by almost 40 percent last year amid the financial downturn and is expected to show only marginal growth this year.

” Although the figure is already “quite amazing,” the volume is “not large enough” considering China’s economic growth and local companies’ expanding demand for international opportunities, Shen said.

China reiterated the nation’s goals for the next decade – increasing market share of pure-electric and plug-in electric autos, building world-competitive auto makers and parts manufacturers in the energy-efficient auto sector as well as raising fuel-efficiency to world levels.

China’s challenge in the early 21st century will be to balance its highly centralized political system with an increasingly decentralized economic system.

Even with these improvements, agriculture accounts for only 20% of the nation’s gross national product.

China is the world’s largest producer of rice and wheat and a major producer of sweet potatoes, sorghum, millet, barley, peanuts, corn, soybeans, and potatoes.

Horses, donkeys, and mules are work animals in the north, while oxen and water buffalo are used for plowing chiefly in the south.

There are also extensive iron-ore deposits; the largest mines are at Anshan and Benxi, in Liaoning province.

China is among the world’s four top producers of antimony, magnesium, tin, tungsten, and zinc, and ranks second (after the United States) in the production of salt, sixth in gold, and eighth in lead ore.

Hydroelectric projects exist in provinces served by major rivers where near-surface coal is not abundant.

In the northeast (Manchuria) are large cities and rail centers, notably Shenyang (Mukden), Harbin, and Changchun.

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