This Week in China

Top Story

The Chinese government strongly rebuked French President Nicolas Sarkozy for meeting with the Dalai Lama at a conference of Nobel Laureates in Poland over the weekend. Sarkozy's actions “severely undermined China’s core interest, gravely hurt the feelings of the Chinese people and sabotaged the political basis of China-France and China-EU relations,” said Deputy Foreign Minister Ha Yafei in a statement.

 

An editorial in the People's Daily, the Communist Party's mouthpiece publication, accused Sarkozy of drumming up controvery to draw attention away from his political woes at home. Meanwhile, internet users have called for protests of French goods and stores, such as Carrefour markets, recalling similar protests earlier this year after activists disrupted the Olympic torch relay in Paris.

U.K. Prime Minister Gordan Brown and German Chancellor Angela Merkel have also recently met with the Dalai Lama but without much consequence. Given that France currently holds the E.U. presidency, China is probably concerned at the visibility of French actions. Sarkozy will have to be careful where he sticks his neck out.

General News

Officials say upcoming reforms to China's fuel taxation and pricing schemes will lower gasoline prices, which have remained high despite plunging oil prices.

China has banned pork imports from Ireland due to dioxin concerns.

Direct flights between mainland China and Taiwan will begin Monday with a flight from Shanghai operated by China Eastern Airlines.

Politics

In China, arrests marked the 60th anniversary of the Universal Declaration of Human Rights. One well-known dissident, Liu Xiaobo, was detained for his involvement in drafting a public letter that demanded political reform and was signed by over 300 academics, lawyers, artists, and farmers.

Japan lodged a complaint with Beijing on Monday over Chinese ships that sailed near the disputed Senkaku/Diaoyu islands in the East China Sea.

Business & Economics

Chinese exports fell for the first time in seven years as consumer demand continued to weaken elsewhere in the world.

The government urged domestic airlines to cancel or postpone aircraft orders to keep costs low during a period of weak demand for travel.

Science & Environment

The "taikonauts" from China's recent spacewalk mission are on a tour through Hong Kong and Macao where they are meeting with students, scientists, and the public at large.

Topping the United States for the first time, China published more scientific theses in 2007 than any other country.

China Moment

Perhaps it comes a surprise to no one, but a new report shows that more than 90% of China's richest people are the children of senior officials (Hat tip: WSJ China Journal).

Photo: ERIC FEFERBERG/AFP/Getty Images

Top Story

In a new tally, Chinese officials said Monday that six infants died and nearly 300,000 were sickened by melamine-tainted milk during the recent scandal. A Ministry of Health statement revealed that 860 babies are still hospitalized with urinary-tract or kidney problems, 154 of them in serious condition.

Confidence in China's dairy industry remains weak as year-on-year dairy exports dropped 92 percent in October. However, heavily discounted valuations for Chinese dairy companies prompted the U.S. private equity firm KKR to invest $100 million in one Chinese raw milk supplier, seeking to ride the $18 billion market back up as regulation strengthens and people return to consuming milk.

KKR's vote-of-confidence shows that industry experts believe the Chinese government is capable of implementing and enforcing effective regulations. The scandal, however, which involved large numbers of small milk suppliers, illustrates the difficulty the government has had in addressing agricultural and food-safety problems before they become crises. Prevention is the next step.

General News

Taxi strikes spread to the city of Foshan in Guangdong province. Three-hundred drivers are protesting exorbitant management fees and lax regulation of unlicensed cabs.

Inflation has eased with the slowing economy, prompting Chinese officials to drop food-price controls enacted earlier this year.

Charter flights have retrived the last of more than 3,000 Chinese citizens that were stranded in Thailand after protesters shut down Bangkok's main airports.

Politics

China's vice premier, Wang Qishan, called for more concrete measures to stimulate domestic demand as Chinese exports continue to fall.

Some 770,000 people took the national civil service exam on Sunday. They are vying for 13,566 government spots.

Business & Economics

The China National Petroleum Corporation signed a $3.29 billion deal to build an oil pipeline in the United Arab Emirates.

Coca-Cola submitted an application to Chinese anti-trust regulators, hoping to win approval for its acquisition of Huiyuan Juice Group, which commands half of China's juice market. 

Science & Environment 

China launched the "Yaogan IV" satellite, which will conduct land surveys and aid in disaster prevention and relief.

China Moment

Earlier this year, retired New York City subway cars were turned into underwater reef habitats off the U.S. coast. As for Beijing's old subway cars, many now house impressionable youngsters. Beijing sent 60 cars to quake-affected Sichuan province, where they were converted for use as student dormitories.

Photos: China Photos/Getty Images

Top Story

As the global economic environment continues to worsen, the People's Bank of China has cut its key one year interest rate by 1.08 percent to 5.58 percent. It has also lowered the required reserve ratio that banks must maintain. This comes as the World Bank lowers its forecast for China's 2009 GDP growth from 9.2 percent to 7.5 percent. China's cabinet announced that it was studying measures to bolster struggling automotive, steel, petrochemical, and textile businesses.

Analysts have responded positively for the most part to the rate cut. They've applauded Chinese authorities for taking extraordinary measures to ease the slowdown and have looked favorably on China's continued use of interest rate tools to stimulate the economy, instead of depending on investment spending. More rate cuts are probably in store.

General News

A man convicted of killing six Shanghai police officers has been executed. His sentence drew sympathy and protest from many netizens due to reports that he had been previously abused by the police.

More than 500 workers at a toy factory in Southern Guangdong province clashed with police after they were fired. Some had worked at the factory for more than 10 years.

An official says the government has released more than 1,000 rioters involved in the protests in Lhasa, Tibet earlier this year.

Politics

Chinese President Hu Jintao met with Greek leaders yesterday, pledging more cooperation on trade, energy, and tourism.

The Ministry of Finance earmarked another 20 billion yuan ($2.9 billion) for reconstruction efforts in earthquake-hit southwest China next year. This comes on a top of 70 billion yuan already committed for this year.

Business & Economy

Huang Guangyu, one of China's richest men and head of the Chinese retail electronics giant Gome, has been detained by police who are investigating stock manipulation charges.

China Eastern airlines saw its losses on fuel-hedging trades surge to 1.83 billion yuan ($268 million) as the price of fuel plummeted. Other Chinese airlines have seen similar losses.

Science & Environment

A new report says pollution has made a third of the Yellow River, China's second longest waterway, unsuitable for farming, fishing, or factory use, and 85 percent of it unsuitable for drinking.

China Moment

A panda bit a student after he broke into its zoo enclosure, seeking a hug.

Top Story

Chinese President Hu Jintao was in Havana, Cuba yesterday, where he signed more than a dozen economic agreements between China and Cuba. The deals included purchases of Cuban raw materials such as nickel and sugar, a $70 million pledge to help renovate Cuban hospitals, and the postponement of debt payments that Cuba owes China.

Hu also met with former Cuban President Fidel Castro, whom he praised for having struggled "to safeguard state sovereignty" and adhered "to the path of socialism, thus winning respect from people worldwide, including the Chinese people."

Granma, the Cuban Communist Party mouthpiece newspaper, imparted praise on China's economic reforms the day before the visit, but also criticized the income disparities that have arisen. It will be interesting to see which of the reform precedents set by China, arguably the most important of Cuba's communist brethren, President Raul Castro may deem appropriate for the island nation.

General News

Twenty-one people are dead after a subway tunnel under construction collapsed in the eastern city of Hangzhou.

Thousands of protesters clashed with police in northwestern Gansu province over a government plan to resettle residents. This latest in a string of unrest in western and southern China has officials concerned that forthcoming economic hardship could cause isolated incidents to spread into wider discontent.

The U.S. Food and Drug Administration opened offices in Beijing, Shanghai, and Guangzhou to prescreen Chinese goods bound for the U.S.

Politics

China rejects the possibility of sending troops to Afghanistan.

Despite warming relations between China and India, India has cast suspicion on China's growing presence in the region, especially in The Maldives.

Business & Economics

A long awaited fuel tax will soon come into effect. Proceeds are to replace road tolls as a means to fund highway construction.

China's internet-based economy grew by 52.2 percent in the third quarter, with advertising and games making up 72.7 percent of the total income.

Science & Environment

In a bid to reduce chemical residues in milk, Chinese scientists are using herbs in place of hormones to increase milk production in cows.

A new study finds that 12 percent of Chinese children and adolescents in big cities are overweight and notes a growing rate of diabetes.

China Moment

After catching a Ningbo teenager illegally posting advertisements, officials had the boy cover his body with those advertisements as punishment. Naturally, the pictures wound up online and have sparked debat. (Hat tip: WSJ China Journal.)

ADALBERTO ROQUE/AFP/Getty Images

Top Story

Analysts continue to weigh in on China's gargantuan stimulus package, announced Sunday. Many economists believe that China's economic growth will drop into the 7 percent range despite these latest measures.

One China scholar opined in the Wall Street Journal that the biggest potential for a stimulus package would be to pump funding into health and social services, which would ease burdens on consumers and promote domestic consumption. If the Chinese government chose to do this, it would be quite encouraging for the global economy. Unfortunately, the plan seems to be focused on infrastructure spending, the long-term effects of which are hard to predict. Some news outlets are even hailing this as China's "New Deal."

There is also growing discussion of possible motivations that Beijing may not have wanted to mention outright. Inklings of labor unrest have already begun to sprout up in cities across China, which have seen the closure of 67,000 export-producing factories this year. Plus, many of the country's five million college grads last year still have yet to find jobs. But overall, it's a waiting game until the government releases more details about the plan.

General News

Taxi drivers are on strike in the southern resort city of Sanya, adding to similar strikes in the past week in Gansu province and the city of Chongqing.

Beijing annouces a 240 billion RMB ($34 billion) plan to expand transportation infrastructure. The city's plan to quadruple the amount of subway track by 2012 comes after an already feverish period of development in the lead up to the Olympics.

An angry mob of 400 people attacked police in the southern city of Shenzen to protest the death of a motorcyclist who crashed when an officer tried to hit him with a walkie-talkie.

Politics

China reacted with criticism to a comment made by Indian Foreign Minister Pranab Mukherjee claiming that the disputed border region of Arunachal Pradesh belongs to India.

Former Taiwan President Chen Shui-bian was arrested as prosecutors prepared corruption charges.

Business & Economy

The Pearl River Delta, a major manufaturing region that includes the southern city of Shenzhen, saw 1,300 companies close their doors in the first nine months of the year.

Chinese CPI, the main indicator for inflation, dropped to 4 percent in October from 4.6 percent in the previous month, signaling a reigning-in of price increases but also an economic slowdown.

Science & Environment

Infectious diseases caused 1,000 Chinese deaths in October. The top culprits were AIDS, rabies, tuberculosis, hepatitis B, and neonatal tetanus, which together accounted for 90 percent of the deaths.

China unveiled its first complete map of the lunar surface.

China Moment

A slew of reactions to Barack Obama's victory speech appeared on China's Internet forums, many of them positive:

So touching! I approve! I continuously supported him and he did not let me down! ... I hope he can really help bring change to America, and also peacefully coexist with China, giving the world positive change!

Read other opinions here.

Photo: China Photos/Getty Images