Refrigerators and the Global Economy
According to an article posted by Reuters on 2/20/08 (“China Farmers to get Fridges, TV’s to Boost Consumption” by Jason Subler), China recently initiated a government program to subsidize 13% of the cost of the purchase of refrigerators, televisions, and mobile phones for rural families in Shandong and two other provinces. At first glance, this seems to have little to do with globalization or the global economy. But look at the motives behind the rebate, and the Chinese government suddenly looks less altruistic.
The rebates are not simply the government’s way of improving the lives of China’s 740 million rural poor, who have not enjoyed the benefits of China’s booming economy. Rather it is a way to encourage them to spend their money on goods produced by Chinese factories. With the possibility of a U.S. recession decreasing the demand for Chinese products overseas, it has become critical that China balance its economy and become less dependent on exports and foreign investments. Chinese economists fear they are facing the end of the boom that kept China’s economy increasing at a rate of 10% annually.
To ease the transition to a more consumer-driven economy, China is taking drastic measures. They have cancelled the agricultural tax, cancelled feed for primary education, and are putting together a form of health insurance targeted at the rural citizens. They are also seeking to close the gap between urban dwellers (annual income of 13,786 yuan) and rural dwellers (annual income of 4,140 yuan) in the hope of diffusing social unrest.
Qian Wang, who is an economist with JP Morgan Chase in Hong Kong, sees increasing sales of consumer goods as a positive sign for China. “The authorities’ medium-term strategic policy focus on stimulating domestic demand, especially amid growing concerns about the global economy, should provide additional firm support for domestic consumption,” reported Wang.
So, while the end result is an improvement for some (only 22% of rural households in China had a refrigerator in 2006), it is hardly the result of China’s concern for its poor. This unprecedented action would never have occurred had it not been for China’s awareness of their current dependence on foreign exports. Yuan Shanchun, the first recipient of the subsidy, however, isn’t complaining about motives. “Who can believe it? How come the government is giving us money to buy things?” he asked. “This is like free food falling from the sky!”
Thursday, February 21, 2008
Wednesday, February 20, 2008
Spielberg Off Olympics, China Angry
An article by Tini Tran (Associated Press Writer) recently appeared condemming Hollywood director Steven Spielberg's decision to quit the Beijing Olympics over the Darfur crisis. In reaction, China's state-controlled media has set off a groundswell of criticism from the Chinese public.
Last week, the Spielberg withdrew from his role as an artistic adviser to the opening and closing ceremonies of the Summer Games, because he felt China was not doing enough to press for peace in the troubled Sudanese region.
The Chinese are angry, accusing Speilberg of breaking his promise to the Chinese people and using the Olympics as a tool to make a statement about Darfur. "A biting front-page editorial Wednesday in the overseas edition of the People's Daily, the Communist Party's official newspaper, blasted Spielberg for his decision.
"A certain Western director was very naive and made an unreasonable move toward the issue of the Beijing Olympics. This is perhaps because of his unique Hollywood characteristics," it said.
Over the weekend, the Guangming Daily, also published by the Communist Party, ran an editorial saying Spielberg "broke his promise to make his contribution to the Beijing Olympics and betrayed the Olympic spirit."
He "is not qualified to blame China because he knows nothing about the great efforts the Chinese government has made on Darfur," it said."
Last week, the Spielberg withdrew from his role as an artistic adviser to the opening and closing ceremonies of the Summer Games, because he felt China was not doing enough to press for peace in the troubled Sudanese region.
The Chinese are angry, accusing Speilberg of breaking his promise to the Chinese people and using the Olympics as a tool to make a statement about Darfur. "A biting front-page editorial Wednesday in the overseas edition of the People's Daily, the Communist Party's official newspaper, blasted Spielberg for his decision.
"A certain Western director was very naive and made an unreasonable move toward the issue of the Beijing Olympics. This is perhaps because of his unique Hollywood characteristics," it said.
Over the weekend, the Guangming Daily, also published by the Communist Party, ran an editorial saying Spielberg "broke his promise to make his contribution to the Beijing Olympics and betrayed the Olympic spirit."
He "is not qualified to blame China because he knows nothing about the great efforts the Chinese government has made on Darfur," it said."
In light of our recent readings, this reaction is not surprising. What's next, an outbreak of violence against cinemas that play American movies? A full-scale student protest in Bejing? An attack on the American Embassy? We'll see.
Saturday, February 9, 2008
Popular Surgery Banned in China
China bans leg-lengthening surgery(AFP)Updated: 2006-11-05 09:24
BEIJING - China has banned leg-lengthening surgery that a largely unregulated beauty industry has been offering to customers who want to be taller.
"Leg-stretching surgery for the image conscious has been banned by China's Health Ministry after a spate of botched operations," the Xinhua news agency reported Saturday.
A patient recovers after having an operation to lengthen his leg at a hospital in China's eastern city of Hangzhou in Zhejiang province in August 2002. China has banned leg-lengthening surgery that a largely unregulated beauty industry has been offering to customers who want to be taller. [AFP]
The operation involves breaking the patients' legs and stretching them on a rack, and has led to several cases of disfigurement, Xinhua said, citing the health ministry.
Hospitals that conduct at least 400 orthopedic operations a year and offer post-surgery care and rehabilitation will be allowed to carry out such operations in future, but only on strictly medical grounds, according to a ministry circular.
The surgical procedure, popular among young Chinese professionals who believe height will help them climb the career ladder, was developed in Russia to help patients with birth defects such as dwarfism.
Botched operations carried out by unauthorized beauty clinics have left many patients physically and psychologically scarred, Xinhua said, without detailing the injuries.
Ten people, enticed by a promise of "height surgery without pain," were reported to have been disfigured after they underwent the operation last year at a Beijing hospital.
The health ministry said hospitals must in future tell patients about the risks involved, while only qualified personnel would be allowed to carry out the procedure.
Friday, February 1, 2008
China's New Democracy Wall
Fast-growing Internet is China's new 'Democracy Wall'
Economic growth triggers unfettered communication
By Catharin Dalpino
(CNN) -- The expansion of the Internet in China has unmistakable implications for relations between the Chinese citizenry and the state.
Although Internet users make up a slim percentage of the population -- informal estimates put the number of users at up to 7 million -- they are the fastest growing client base in the world. From 1997 to 1998, the number of Chinese users rose by 75 percent.
Economic growth has loosened state control over every aspect of the Chinese media, but the introduction of telecommunications -- the "citizens' media" -- offers the most immediate chance for unfettered communication.
Because technology offers a cloak of anonymity, some Chinese see the Internet as a successor to the Democracy Wall of 1978, when Beijing citizens called for political reform through public notices posted on a university wall in Beijing.
The government responded to the threat last year by regulating the Internet and blocking hundreds of sites.
Chinese users quickly learned to circumvent these controls with proxy servers, however, and often relay information too sensitive for China-based sites by e-mail from offshore sites.
The government has also learned to use the Web for its own political and public relations purposes. In July, it set up a site to criticize the Falun Gong movement. Falun Gong members had been using the Internet to publicize the group's teachings and to organize anti-government protests.
The Internet has figured in key issues in China, even when there is no internal debate. After the bombing of the Chinese Embassy in Belgrade, Yugoslavia last spring, for example, Chinese hackers broke into the Web site of the U.S. Embassy in Beijing and replaced the text with anti-American graffiti.
Apart from thorny issues of freedom of expression, the Chinese government is well aware of the commercial possibilities of the Internet. China.com, the Web site operated by the official Xinhua News Agency, set off a frenzy of international speculation when its stock was offered in July.
An even greater international impact is expected once China joins the World Trade Organization and international telecommunications companies have greater access to the Chinese market, effectively ending the state-owned China Telecom monopoly.
Catharin Dalpino is a visiting scholar at the Brookings Institution. From 1993 to 1997 she was U.S. deputy assistant secretary of state for human rights.
Economic growth triggers unfettered communication
By Catharin Dalpino
(CNN) -- The expansion of the Internet in China has unmistakable implications for relations between the Chinese citizenry and the state.
Although Internet users make up a slim percentage of the population -- informal estimates put the number of users at up to 7 million -- they are the fastest growing client base in the world. From 1997 to 1998, the number of Chinese users rose by 75 percent.
Economic growth has loosened state control over every aspect of the Chinese media, but the introduction of telecommunications -- the "citizens' media" -- offers the most immediate chance for unfettered communication.
Because technology offers a cloak of anonymity, some Chinese see the Internet as a successor to the Democracy Wall of 1978, when Beijing citizens called for political reform through public notices posted on a university wall in Beijing.
The government responded to the threat last year by regulating the Internet and blocking hundreds of sites.
Chinese users quickly learned to circumvent these controls with proxy servers, however, and often relay information too sensitive for China-based sites by e-mail from offshore sites.
The government has also learned to use the Web for its own political and public relations purposes. In July, it set up a site to criticize the Falun Gong movement. Falun Gong members had been using the Internet to publicize the group's teachings and to organize anti-government protests.
The Internet has figured in key issues in China, even when there is no internal debate. After the bombing of the Chinese Embassy in Belgrade, Yugoslavia last spring, for example, Chinese hackers broke into the Web site of the U.S. Embassy in Beijing and replaced the text with anti-American graffiti.
Apart from thorny issues of freedom of expression, the Chinese government is well aware of the commercial possibilities of the Internet. China.com, the Web site operated by the official Xinhua News Agency, set off a frenzy of international speculation when its stock was offered in July.
An even greater international impact is expected once China joins the World Trade Organization and international telecommunications companies have greater access to the Chinese market, effectively ending the state-owned China Telecom monopoly.
Catharin Dalpino is a visiting scholar at the Brookings Institution. From 1993 to 1997 she was U.S. deputy assistant secretary of state for human rights.
For the Men...FYI From RealAge
Follow This Eastern Beverage Wisdom
The land that brings us giant pandas, the Great Wall, and amazing cuisine also serves up a mean cup of prostate protection. Yep, green tea -- long touted by the Chinese for its medicinal benefits -- could cut a man's risk of advanced prostate cancer by half. How much do you need to drink? More ProtectionIn a study, men who drank 5 or more cups of green tea per day had half the risk of advanced prostate cancer compared with men who sipped less than a cup a day. Another way to keep the prostate healthy: Avoid a diet high in saturated fat and include plenty of fruits and veggies in your diet.
More Great News on GreenGreen tea can also help:
§ Revive aging skin cells.
§ Boost your brain power.
§ Battle creaky knees
§ Keep your heart healthy.
Basically, we can't say enough about green tea. So grab yourself a cuppa!
The land that brings us giant pandas, the Great Wall, and amazing cuisine also serves up a mean cup of prostate protection. Yep, green tea -- long touted by the Chinese for its medicinal benefits -- could cut a man's risk of advanced prostate cancer by half. How much do you need to drink? More ProtectionIn a study, men who drank 5 or more cups of green tea per day had half the risk of advanced prostate cancer compared with men who sipped less than a cup a day. Another way to keep the prostate healthy: Avoid a diet high in saturated fat and include plenty of fruits and veggies in your diet.
More Great News on GreenGreen tea can also help:
§ Revive aging skin cells.
§ Boost your brain power.
§ Battle creaky knees
§ Keep your heart healthy.
Basically, we can't say enough about green tea. So grab yourself a cuppa!
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