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People’s Daily Comments: Sichuan farmer makes fortune by broadcasting village life

Liu Jinyin, a young farmer in a rural area of southwest China’s Sichuan province, has attracted nearly 100,000 followers by broadcasting his daily life in the village. Within six months, Liu earned 80,000 yuan. Some of his followers said his broadcasts reminded them of their childhood memories.

The rise of live streaming has given ordinary people opportunities to receive more attention and multiplied the ways they can boost their incomes. However, vulgar content and lack of originality have long been criticized by society.

The broadcasts of Liu stand out because of their unique content – clean content that is close to real life, such as feeding pigs, transplanting rice seedlings, and catching fish.

Liu’s videos also open a window for urban residents to know more about village life. Liu does not ask for any gifts from his virtual viewers and instead lets the broadcasts serve as a platform for people to exchange views and make friends.

Liu’s parents have found it hard to accept his money earning scheme and criticized their son for ignoring his duties. Honestly speaking, streaming oneself doing things is not an improper occupation. According to Karl Marx, the welfare of mankind and our own perfection should guide our choice of profession.

Starting from the countryside, Liu combines his personal development with the building of a new socialist countryside. His profession of broadcasting rural life is a profession that is worthy of exploring.

China hires Ukrainian engineer of aircraft carrier the Varyag (Liaoning)

Recently, news related to China’s first aircraft carrier the Liaoning was widely circulated among Chinese military enthusiasts.

Ukrainian engineer Valery Vasilevich Babich, the chief designer of the Varyag, the predecessor of the Liaoning, was hired by a ship research and design institute company in Qingdao, east China’s Shandong province.

Valery has called the Liaoning no ordinary training ship, and its historical mission is to provide necessary theoretical and technical support for the localization of China’s successor aircraft carriers. He also believes the Liaoning will shine brilliantly, and its operational performance is likely to be far ahead of the Varyag.

The Liaoning, China’s first aircraft carrier, was refitted from the former Ukrainian vessel, Varyag.

Premier Li Keqiang praises company for valuing spirit of craftsmanship

Chinese Premier Li Keqiang emphasized the spirit of craftsmanship during a visit to Huaxiang Group, a private steel-casting company in Linfen, north China’s Shanxi province, on Tuesday.

Learning that the group provides an annual salary of 3 million yuan ($456,000) to some of its top craftsmen, which is four times that of the company’s CEO, Li said the group will have a brighter future. He added that craftsmen should pass on their skills to apprentices to make Chinese-made products competitive in terms of both price and quality.

WeChat bets on new online fund

Domestic Internet giant Tencent Holdings has launched a new kind of money-market fund on its WeChat platform, a move that experts said may show the company hopes to grab market share from a fund run by technology rival Alibaba Group Holding amid tightening supervision.

Tencent launched the test of a new function Lingqiantong, a kind of money-market fund, on its mobile payment platform WeChat on Monday, the Beijing News reported.

“Invitations to join the test were sent to staff and some external users of our other financial management products on WeChat, and we’ll see how the test group likes it,” a source at Tencent told the Global Times on Tuesday.

“Users usually put small amounts of money they get from red envelopes or friends’ transfers into the WeChat change pocket. Now the money can generate interest with a seven-day annualized return of 4.135 percent via Lingqiantong,” he noted.

Yu’E Bao, an Internet money-market fund for individuals owned by Alibaba’s financial affiliate Ant Financial Services Group, had attracted more than 1.43 trillion yuan ($211 billion) under management as of the end of June, accounting for about 28 percent of the market.

“Ant Financial Services has the advantage of providing various professional financial services, which might be a weakness for Tencent. But this new product proves the latter is taking measures to catch up,” said Guo Dazhi, research director with the Zhongguancun Internet Finance Institute.

With people paying for almost everything via mobile phones, Internet companies have built-in advantage in attracting funds, Guo told the Global Times.

“Given WeChat’s vast user base and stickiness, Lingqiantong is likely to post a rapid increase in personal investment once it is officially launched,” an industry insider who declined to be identified told the Global Times.

Lingqiantong is making its debut just as China’s regulatory authorities are tightening regulations on money-market funds.

The China Securities Regulatory Commission (CSRC) issued new regulations on Friday tightening management of liquidity. For the first time, it proposed the concept of funds “designated as systemically important.” The CSRC and the People’s Bank of China, the central bank, will jointly impose new supervisory rules for such funds.

CSRC Vice chairman Li Chao has indicated that the scale of some money-market funds has exceeded that of large banks, which has been taken as a reference to Yu’E Bao, according to media reports.

Yu’E Bao’s 1.43 trillion yuan was not much less than the balance of demand deposit accounts of 1.63 trillion yuan held with Bank of China in 2016, and was more than the 1.3 trillion yuan total of demand and term deposits for China Merchants Bank.

Money-market funds, which mainly invest in liquidity management tools such as interbank deposits and asset-backed securities, have been expanding fast this year, said media reports.

“In this sense, WeChat’s Lingqiantong is a bold move, and it also shows the possibility of the platform … attracting some individual investors from Yu’E Bao,” the insider noted.

Before the latest rule changes were announced, Tianjin-based Tianhong Asset Management Co, a company controlled by Ant Financial Services, which manages Yu’E Bao’s assets, on August 14 said it would cut the ceiling for individual investors from 250,000 yuan to 100,000 yuan.

“All the cash on Yu’E Bao is linked with one asset management company, which is also owned by Ant Financial Services. That means a higher possibility of triggering systematic financial risks,” according to the insider.

WeChat’s Lingqiantong will cooperate with three asset management companies, the source with Tencent said.

“Money market funds are low-return ‘commodity products’ that are largely interchangeable, so there is little basis for competition,” Guo said, noting that traditional banks are also striving to launch Yu’E Bao-like products.

A source in a State-owned bank told the Global Times that his bank has two kinds of cash income products with initial volumes ranging from 50,000 yuan to 3 million yuan, and interest rates ranging from 2 percent to 3.5 percent.

Source: Global Times

Chinese enterprise wins patent lawsuits launched by US companies

(File photo)

A Chinese company that develops self-balancing scooters recently won two patent infringement lawsuits launched by U.S. companies in half a month, Economic Daily reported on Sept. 4.

It was ruled that Hangzhou Chic Intelligent Technology Co., Ltd. did not infringe the two companies’ patent rights in the Section 337 investigation.

Insiders disclosed that the Chinese company was not named as defendant at first, while it volunteered to respond to the lawsuit to safeguard its rights and those of other Chinese companies involved in the industry.

Finnegan, the American intellectual property law firm that represented the Chinese company, respond to the lawsuit launched by Razor and Ninebot, who applied for the general exclusion order from the United States International Trade Commission (USITC).

The scope of a general exclusion order may cover all the infringing products regardless of their origins, importers, and retailers.

Yin Qingyu, a lawyer from the law firm, revealed that the Chinese company has more than 200 patents and patent applications in the world, and this helped it fight the lawsuit.

Legal supervisor of the Chinese company Li Lu noted that if the USITC issued the limited exclusion order against all Chinese enterprises or those related to the case, or even a general exclusion order, it would have been a huge blow to many small and medium-sized enterprises in China.

It takes lots of time, money, and energy for an enterprise to respond to a Section 337 investigation launched by a U.S. company so many enterprises faced with such lawsuits usually give up their right to fight back, the lawyer stated.

However, insiders pointed out that an enterprise that refuses to respond to a lawsuit will be regarded as absence, and USITC, under the accuser’s request, can adopt measures against respondents, including either a limited or general exclusion order or an injunction.

Therefore, experts remind that even though an enterprise is not named as a defendant in a lawsuit, it can still choose to take part in the investigation as an interested party to protect its own rights.

There were more than 1,000 companies selling self-balancing scooters by the end of 2015, with an estimated market value of several billion U.S. dollars. More than ten lawsuits related to the scooters were filed from 2015 to 2016 by the USITC and district courts.

Experts question pace of change, need for intervention

As the yuan continues to rally against the US dollar and is backed by signs of improved domestic fundamentals, a debate over whether the country’s push for a more market-oriented rate-setting mechanism is moving ahead at the right pace is growing among prominent scholars.

Some experts suggest that, given the more solid fundamentals in the domestic economy, the People’s Bank of China (PBC) should be able to complete the reforms more quickly, while others argue that the reforms have already proven effective and should continue to be implemented in a gradual fashion to prevent major fluctuations.

Yu Yongding, a monetary policy expert at the Chinese Academy of Social Sciences, questioned the PBC’s decision to continue the use of the central parity system, which weighs the yuan’s exchange rate against the previous closing level and a basket of currencies.

Yu, a former PBC adviser, argued in an interview on Monday with the China Securities Journal that the mechanism is not based on market demand and supply but affected by the PBC’s interventions, so it is not in line with the PBC’s reform goal to have a market-oriented system and allow the currency to float freely.

“Frankly, I don’t understand the central bank’s logic anymore,” Yu was quoted as saying. “Personally, I think the main problem with the ‘closing price plus changes in the rates of a basket of currencies’ pricing mechanism is that it can’t accurately reflect market demand and supply and the yuan’s exchange rate is still affected by the central bank’s intervention.”

The central parity system was put in place in August 2015 as part of the country’s drive to let market forces have a larger say in the yuan’s exchange rate and allow the yuan to float freely, amid a major push for the internationalization of the Chinese currency.

The move initially prompted a steep fall in the yuan’s exchange rate against the US dollar and, experts say, partially contributed to a wave of capital outflows from the world’s second-largest economy.

But under a combination of measures from the Chinese government, including tight control of overseas investments by domestic firms and other monetary policy adjustments, the yuan has stabilized since the beginning of 2017 and continues to rally against the US dollar.

After strengthening to a 14-month high against the greenback on Friday, the yuan continued to gain on Monday, rising 0.58 percent to 6.5185 per dollar at the close.

Yu argued that amid positive signs in economic growth, balance in international accounts and stable capital movements, the conditions are right for the PBC to complete the market-oriented reforms for the pricing mechanism.

Reforms should be gradual

However, several other experts cautioned against any radical moves and argued that the reform is proceeding at the right pace, ensuring both progress and stability.

“It’s very important that we understand one thing clearly: Market reforms don’t mean we will suddenly let the yuan float completely freely. It has to take place gradually and ensure stability,” Dong Dengxin, director of the Finance and Securities Institute at Wuhan University of Science and Technology, told the Global Times.

Dong said the exchange rate-setting mechanism in China is now “more market-oriented and transparent” than at any time in history. “We have to acknowledge that,” he noted.

Cheng Shi, head of ICBC International Research Ltd, also said that since the reforms in August 2015, the yuan’s exchange rate has returned to normal movements and the currency has achieved several milestones, including becoming part of the IMF’s Special Drawing Rights basket of currencies.

“Since the reforms [in August 2015], the flexibility of the yuan’s exchange rate has been significantly enhanced and financial opening has increased,” Cheng told the Global Times on Monday.

Cheng said that the market reforms should be carried out gradually. Trading hours in the domestic foreign exchange market could be extended and more market participants could be brought in, in accordance with market conditions.

Experts on Monday also rejected criticism of a recent decision by the PBC to add “countercyclical factors” to the formation of the central parity system. Critics said the move showed a desire to intervene in the setting of the exchange rate.

Dong disagreed. “This is a move that has been adopted in many countries around the world, including the US, to prevent irregular market movements; if anything, this shows China is becoming more forthcoming and transparent in its policy,” Dong said.

Source: Global Times

China successfully purifies rare metal used to make aircraft engines

A Chinese private enterprise has successfully purified the rare metal rhenium to manufacture the single crystal blade, which is crucial for the production of aircraft engines, reported on Sept. 3.

The rare metal was purified after a year and a half effort by Chengdu Aerospace Superalloy Technology Co. Ltd. in cooperation with the Hunan Research Institute for Nonferrous Metals.

The company discovered a mine with about 176 tons of rhenium in Shaanxi province in 2010, accounting for 7 percent of the world’s total reserves of the metal.

A report released by the U.S. Geological Survey shows that the explored reserve of rhenium in the earth’s crust is only about 2,500 tons, even less than that of rare elements. The price for each gram is 200 to 300 RMB (about $31 to 46), which makes it as expensive as platinum.

The metal is the main material for producing the single crystal blade, which is crucial for manufacturing aircraft engines, and the technology directly affects the performance of the engine.

Zhang Zheng, chairman of the company, put together a professional team through the country’s talent recruitment program.

Verified results show that the single crystal blade met Europe and U.S quality standards in terms of tensile properties and endurance performance at high temperatures.

The success makes the company China’s first to achieve mass production of the single crystal blade for manufacturing aircraft engines.

Aircraft engines, as one of the most complicated mechanical systems, should be able to work under high temperatures, high pressures, high rotation speeds, and high load; and be high power, light weight, long lasting, and highly reliable.

China has been faced with a hurdle of self-developing aircraft engines, because the U.S. and some Western countries have blocked certain exports such as rhenium to China for many years.

Hydrogen fuel cell passenger cars to be produced in Zhangjiakou to serve 2022 Winter Olympics

Hydrogen fuel cell passenger cars will be produced in Zhangjiakou City, Hebei province, to serve the 2022 Winter Olympics to be jointly hosted by the city with Beijing, as an automatic production line of hydrogen fuel cell engines recently went operation, Beijing Daily reported on Sept. 1.

The production base established with an investment of 1 billion RMB ($152 million) by Beijing SinoHytec Co., Ltd is projected to manufacture 10,000 vehicles a year after construction of all production lines is completed in 2018.

The hydrogen fuel cell vehicle, with a maximum range of 500 kilometers, can be started at even 30 degrees Celsius below zero, and can be stored at even lower temperatures, which means the vehicles are suitable for the winter weather in Zhangjiakou.

Li Jianqiu, a professor at Tsinghua University, noted that, compared with traditional vehicles that consumes 6 to 8 liters of gasoline every 100 kilometers at a cost of 40 to 50 RMB, the hydrogen fuel cell vehicle consumes only 1 kilogram of hydrogen at a cost of 30 RMB.

About 2.04 million diesel trucks in the Beijing-Tianjin-Hebei region are believed to discharge some 6.48 million tons of pollutants each year, while the hydrogen fuel cell vehicles produce zero emissions and are thus environmentally friendly.

In addition, the hydrogen used as fuel for the vehicles can be discharged in a timely fashion, which ensures safety of the vehicles.

Zhangjiakou is advantageous for developing hydrogen energy as it has a demonstration zone of renewable energy and the world’s largest wind power hydrogen production. Producing hydrogen with wind power not only lowers costs, but makes efficient use of the surplus wind power of more than 10 billion kilowatts of the city on a yearly basis.

Economic and financial cooperation to highlight BRICS Summit

A slew of economic and financial achievements are expected to be yielded from the upcoming 9th BRICS Summit, experts from China’s top economic planning agency and finance authority said at a briefing, adding that it not only indicates the increasing maturity of the cooperation mechanism, but means more benefits for the world economy.

They made the statement at a briefing hosted by China’s State Council Information Office on BRICS economic and financial cooperation on Thursday.

The meeting highlights are expected to include the important outcomes from coordination in fiscal and monetary policies, structural reforms, development of the New Development Bank (NDB), international taxation, audit supervision and anti-money laundering, said Zhou Qiangwu, director general of the International Economics and Finance Institute with China’s Ministry of Finance.

BRICS members, all developing countries in a similar developmental stage and sharing similar economic aggregate and growth dynamics, are highly complementary to each other in terms of economic development, He Ping, deputy dean of the School of Finance, Renmin University of China, told the People’s Daily.

BRICS countries and the region where they are located have a great potential in infrastructure development, he added, suggesting that developing economies represented by them provide funding to each other.

China, with apparent advantages in these aspects, can be an important impetus for broader economic and financial cooperation among the BRICS countries, the deputy dean noted.

The BRICS countries are now needed to eliminate various explicit and hidden barriers existing in their cooperation as they face the twin pressures of stabilizing growth and restructuring their economy, said Ye Fujing, director general of the Institute for International Economic Research of China’s National Development and Reform Commission.

Their development is also constrained by unsettled outside challenges brought about by a complicated and severe international political and economic environment, the scholar added, citing the deep-seated difficulties constraining the world economy, insufficient impetus for growth as well as the stubborn determination of some developed countries to maintain their vested interests.

Ye said that the BRICS countries, in the next stage, are expected to address the challenges in their own development and global growth by strengthening cooperation in innovation, opening wider to each other, launching landmark cooperation projects and striving for unimpeded trade, financial integration, facilities connectivity and intensified people-to-people bonds.

They should also seize the cooperation opportunities in emerging industries, and stretch their cooperation to more beneficiaries, the expert added.

A prior way for effective cooperation among developing countries was to launch more concrete projects, He said, but added that the process involved government and financial support in the early stage.

The developing nations, therefore, need to enhance political mutual trust and policy coordination through high-level meetings and on the basis of mutual benefit and a win-win result, so that they could better deepen economic and financial cooperation and promote the implementation of the projects, he noted.

The NDB, undoubtedly a highlight of the BRICS economic and financial cooperation, is expected to make further progress in the upcoming summit, according to Zhou, saying the bank’s total loans are projected to reach $2.5 billion in 2017.

Citing the example of the dam that South Africa hopes to build on the Inga River to ease its power shortage, Shen Yi, director at the Center for BRICS Studies of Fudan University, said that such a project not only meets interests of the BRICS members but the region as well.

If the NDB could take the lead to support such projects that others can benefit from, it would be a model set by the BRICS members for the whole world, Shen noted.

Crucial stage for BRICS: Xi

Chinese President Xi Jinping speaks during the opening ceremony of the BRICS Business Forum in Xiamen, Fujian Province, on Sunday. The BRICS Summit, involving Brazil, Russia, India, China and South Africa, will run from September 3 to 5. Photo: Xinhua

Chinese President Xi Jinping said Sunday that BRICS cooperation has reached a crucial stage of development and that BRICS nations should increase the influence of the bloc and build extensive partnerships.

Addressing the BRICS Business Forum in the southeastern city of Xiamen, Xi said BRICS should expand the coverage of their cooperation and deliver its benefits to more people.

“We should get more emerging market and developing countries involved in our concerted endeavors for cooperation and mutual benefits,” he said, citing a Chinese proverb – “It is easy to break one arrow but hard to break 10 arrows bundled together.”

The BRICS mechanism is over a decade old, and it’s time to look back and make adjustments according to the current global order, Lu Jing, a professor at the China Foreign Affairs University’s Institute of International Relations, told the Global Times on Sunday.

Xi said as a cooperation platform with global influence, BRICS cooperation is more than just about the five countries in the bloc.

“BRICS places a high premium on cooperation with other emerging markets and developing countries and have established effective dialogue mechanisms with them,” Xi said.

“Xi’s speech, with facts and statistics, showed that the BRICS bloc is not fading. His words brought confidence to the future of the BRICS cooperation,” Lu said.

“The development of the BRICS bloc is not to challenge the existing international order. On the contrary, it is a complementary mechanism to the existing order with the aims of co-prosperity, openness and world peace,” Lu noted.

As an important side-event of the BRICS summit, the Business Forum serves as a platform for business leaders to discuss issues of common concern, build consensus and raise policy suggestions, the Xinhua News Agency reported.

Themed “BRICS: Stronger Partnership for a Brighter Future,” the Xiamen Summit, held from Sunday to Tuesday, will focus on trade and investment, financial cooperation, connectivity, and the blue economy.

The forum this year gathered a record of 1,200 attendees as well as 632 enterprises from BRICS nations and other countries, Jiang Zengwei, head of the China Council for the Promotion of International Trade, said at a press conference in Xiamen on Saturday.

Sessions will be held on Monday, and the five leaders will adopt the Xiamen Leaders’ Declaration.

Along with the summit, the BRICS Cultural Festival will be opened in Xiamen on Monday, featuring more than 210 artists from the five BRICS countries who will put on indoor and outdoor performances, master classes and film screenings.

Trade liberalization

Xi said the BRICS group of emerging economies must promote trade liberalization and an open world economy.

“We should promote the building of an open global economy, advance trade and investment liberalization and facilitation, jointly build new global value chains, and rebalance economic globalization,” he said in the speech.

Together, the five accounted for 23 percent of the 2016 global economy, almost double their share in 2006, and contributed to more than half of global growth.

Xi said the past decade has seen the countries making headway in pursuing common development, with their combined GDP having grown 179 percent, trade 94 percent and urban population 28 percent during the period.

The bloc has contributed significantly to stabilizing the global economy and returning it to growth, and has delivered tangible benefits to more than 3 billion people, he said.

“Xi has called for seeking common ground while managing differences, together with practice and creativity in cooperation. These are the ways the BRICS nations can overcome difficulties and barriers,” Song Zhongping, an expert on international relations, told the Global Times on Sunday.

“Xi replied strongly that the BRICS bloc has met an opportunity … it is time to change the current mechanism and to build a new cooperation model, either inside the BRICS bloc or by adding more developing countries,” Song said.

Sustainable development

The New Development Bank and the Contingent Reserve Arrangement have provided financing support for BRICS infrastructure building and sustainable development, contributing to enhanced global economic governance and the building of an international financial safety net, Xi said during the speech on Sunday.

“We’ve been using wheat from Russia, cocoa from South Africa as well as coffee from Brazil,” Cai Jin’an, board director of Panpan Foods Group from Jinjiang, Fujian Province, told the Global Times on Saturday.

“The BRICS countries have big populations and great markets, so the space for importing and exporting is great. Strengthening cooperation among the BRICS countries would benefit our companies. We’ll be able to produce products of best quality by using agricultural and other products,” he said.

Source: Global Times