A Thawing Threat

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  Sanjiangyuan, the origin of China’s three major waterways—Yangtze, Yellow and Lancang rivers, is continuing to heat up and become wetter as a result of global warming, recent monitoring data showed.
  The headwaters area, on the remote Qinghai-Tibet Plateau, has seen its temperature rise 1.98 degrees Celsius and an increase in rainfall between 1961 and 2012.
  Due to rising temperature, the maximum depth of local permafrost has decreased by an average of 12 cm every 10 years, indicating that most glaciers there are melting.


  A website that was opened by the top disciplinary agency of the Communist Party of China (CPC) has received an average of 827 corruption tip-offs daily since its launch. The website made the announcement on October 8.
  The website, www.ccdi.gov.cn, was run by the Central Commission for Discipline Inspection of the CPC in conjunction with the Ministry of Supervision, in order to improve communication and interaction between the departments and the public.
  In the first month since its launch on September 2, a total of 24,800 reports were submitted. In comparison, there was an average of 300 reports received daily between April and August.
  As of October 2, the website had had more than 4,200 registered users.
  The website hosts 10 services, including an online forum where the public can make proposals, share opinions and ask questions about anti-corruption efforts.
  In addition to receiving tipoffs, the website publishes the latest information on graft investigations.
  The public can also access a database of Party regulations and laws related to corruption on the website.
   Fund Management
  On October 8, the Chinese Government vowed to reinforce management of public funds used for social programs, such as funds for poverty-relief.
  According to a statement released by the State Council, recent audits have found that some localities falsified eligibility information when claiming the funds, embezzled them or otherwise failed to channel the funds to those they were intended for, at the same time implementing weak supervision over their use and allocation.
  To effectively manage such funds, the government decided to clarify the responsibilities of authorities at different levels. County-level governments are responsible for assigning funds to various povertyreduction projects, while provincial and city governments should act as supervisors.   Individuals in need of poverty relief will be entered into a database so that funds can be distributed to villages and households identified by authorities.
  Innovative fund management strategies, such as governmental procurement of social services using the funds and financial institution involvement in poverty reduction projects, were encouraged, the statement said.
   Warning System
  China has revealed plans to develop a system that will be capable of issuing early warnings regarding geological and environmental risks.
  According to government regulations released on October 8, county-level governments will be responsible for their own systems, which are to be used to publish data and results from monitoring and issue warnings if readings indicate abnormal situations.
  The regulations prohibit any organizations or individuals from publishing environmental data before they have been reviewed and approved by relevant county-level government officials.
  Local governments are also required to take active measures to prevent possible risks.
  Under the new regulations, construction companies must hire appropriate institutions to conduct environmental appraisal before launching projects, and they will be held accountable for any negative effects caused by their operations.
   Vaccine Approved
  A Chinese-produced vaccine against Japanese encephalitis has received prequalification from the World Health Organization (WHO), according to a statement made by the China Food and Drug Administration(CFDA) on October 9.
  It is the first Chinese-produced vaccine to be added to the WHO’s list of prequalified medicines, according to the CFDA.
  The move indicates that the WHO has given the vaccine a stamp of approval regarding safety and efficacy, and UN procuring agencies can source it.
  The vaccine has been on the Chinese market since 1988 and about 600 million doses have been administered, reducing the incidence and casualty rates of Japanese encephalitis, the CFDA said.
  The vaccine only needs to be administered in one dose, can be given to infants, and is less expensive than other similar products, said a WHO press release, adding that the vaccine will “make the protection of more children in developing countries easier.”
   Lottery Sales
  China’s lottery sales had reached 198.69 billion yuan ($32.43 billion) for the first eight months of this year, according to a Ministry of Finance announcement on October 8.   The figure was up by 17.6 percent, or 29.73 billion yuan ($4.85 billion), compared with the same period last year. Sales in August alone hit 24.62 billion yuan ($4.02 billion), up 24.9 percent year on year, with welfare lottery sales reaching 14.03 billion yuan ($2.29 billion), an increase of 20.2 percent year on year. Sales of sports lottery tickets in August surged by 31.8 percent year on year to 10.59 billion yuan ($1.73 billion).
  The ministry attributed the jump in sales to the promotion of quizstyle games and more outlets for online lottery games.
  According to China’s regulations on lottery management, money raised through lotteries is to be used for the jackpot, management fees and public lottery funds only.
   Hypertension Sufferers
  At least one in five adults in China suffers from hypertension, or high blood pressure, an official with the national disease control agency said on October 8.
  A total of 266 million people in China suffer from hypertension and, among those aged 15 and above, an estimated 24 percent have the condition, said Shi Xiaoming, head of the Chronic Diseases Division at the Chinese Center for Disease Control and Prevention.
  Approximately 40 percent of patients are not aware of their hypertension and only about 25 percent of patients receive treatment, Shi said.
  About 15 percent of adolescents and 30 percent of obese adolescents have blood pressure levels that are higher than the expected level, but still within the healthy range, he added.
  Shi warned that arterial diseases in particular have become a serious public health problem in China.
  He attributed increased incidences of hypertension to changes in lifestyle and diet, saying that preventing the condition requires not only medication but also people’s awareness.
   New Talent
  Top prize winners of the Fourth Xingyun Awards pose for the media following the prize presentation in Taiyuan, Shanxi Province, on October 4.
  The annual event, the only international awards for Chinese-language sci-fi writers, is organized by the World Chinese Science Fiction Association, which is based in Chengdu, capital of southwest China’s Sichuan Province. It was first held in 2010.
   A Helping Hand for SMEs
  A staff member at an electricity company checks equipment in an innovation park for small and medium-sized enterprises(SMEs) in Shizuishan, Ningxia Hui Autonomous Region.   The innovation park was inaugurated on October 9. The park is aimed at supporting the financing, training and technological innovation of SMEs and startup businesses.


   Bank Supervision
  The China Banking Regulatory Commission (CBRC) revised its rules to step up supervision of small and medium-sized rural banks.
  The draft document was published on October 9 on the website of the Legislative Affairs Office of the State Council to solicit opinions, which should be submitted before November 9.
  The draft specifies conditions for establishing rural banks, stating that shareholders who are natural persons should not buy shares amounting to more than 2 percent of the rural bank’s capital stock.
  Shareholders who are employees of the bank should not buy shares amounting to more than 20 percent of the bank’s capital stock.
  Shareholders who are domestic non-financial institutions cannot buy shares exceeding 10 percent of the bank’s stock, excluding mergers or restructuring of high-risk rural credit cooperatives.
  Overseas banks intending to invest in the Chinese mainland’s rural banks should first submit applications to the CBRC, which will adjust criteria for overseas investors based on the financial sector’s risk profile.
   Registration Starts
  A total of 577 people applied to register companies at the newly launched Shanghai pilot free trade zone (FTZ) on October 8, the first day for registration.
  Meanwhile, 1,480 people visited the zone’s service lobby asking for advice and information that day.
  Sun Baohua, a businessman from Wenzhou in neighboring Zhejiang Province, was the first person to apply for a registration.
  Sun, who owns a microfinancing company, has rented a 20-square-meter warehouse in the zone as his office. He is expected to get his business license within four days.
  “The financial institutions allowed to run businesses in the zone are all big companies,” said Sun.“While my company caters for small and medium-sized enterprises with lower interest rates.”
  The Chinese Government officially inaugurated the 29-squarekm Shanghai FTZ on September 29.
  Testing of a convertible yuan and a wider opening of 18 service sectors are expected in the zone, which could usher in wider economic reforms across the country.
   Growth Forecast
  The World Bank cut its growth forecast for developing economies in East Asia and the Pacific region as a whole in 2013 to 7.1 percent from the previous forecast of 7.8 percent, according to a report the bank released on October 8.   The East Asia and Pacific Economic Update, released every six months, also cut its forecast for China from 8.3 percent to 7.5 percent.
  “Growth in China is expected to meet the official indicative target of 7.5 percent this year. The short-term outlook is improving as industrial production data suggests further strengthening of output in the third quarter,” said the report.
  “China is likely to see further rebalancing of its economy by slow-ing credit growth and investment, although the pacing is likely to depend on overall growth,” it said. Bert Hofman, World Bank East Asia and Pacific chief economist, said the slower growth will in a way help China in the medium term as it goes through reforms to restructure the economy.
   Coal Gasification
  A large coal gasification project will be built in northwest China’s Xinjiang Uygur Autonomous Region, said the region’s development and reform commission on October 6.
  The demonstration project in Zhundong area, Changji Hui Autonomous Prefecture, will be the country’s largest with a designed capacity of 30 billion cubic meters annually.
  With a total investment of 183 billion yuan ($29.7 billion), the project will be jointly built by Sinopec, Huaneng Xinjiang Energy Development Co. Ltd. and some other energy companies in Xinjiang and east China’s Zhejiang Province.
  The industrial project will need 90 million tons of coal annually. It will provide at least 18,000 jobs.
  The coal gas will be transported to Zhejiang and south China’s Guangdong Province in the south through pipelines.
  The Zhundong area has estimated coal reserves of 390 billion tons and proven reserves of 213.6 billion tons and is the largest coalfield in China.
   Outsourcing Base
  A newly approved bonded area in southwest China’s Guizhou Province aims to build the country’s largest outsourcing base for aero-engines. Construction of a 40,000-square-meter workshop has begun for a joint venture between AVIC International Holding Corp. and AVIC Liyang Aero-Engine Co. Ltd.
  With an investment of $100 million, the project will provide aero parts for Boeing and Airbus and realize imports and exports of$200 million in 2015, according to headquarters in the capital Guizhou.
  Some production lines belonging to AVIC Liyang Aero-Engine Co. Ltd.’s aviation engine industry base in a hi-tech zone in Guiyang have begun operations. Liyang AeroEngine will invest 4 billion yuan($654 million) in the base.
  The State Council in September approved the establishment of the comprehensive bonded zone in Guiyang with an area of over 3 square km. It will be put into operation in September next year.
   Buy Me with WeChat
  A customer uses the social messaging smartphone application WeChat to pay for drinks in a Beijing subway station on October 9.
  A total of 300 automatic vending machines have been installed in Beijing subway stations. The WeChat payment option is available on those machines as mobile payment has become a hot new trend.
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