Life
Phoenix
Legend
soaring
Hot Chinese pop duo winning
fans overseas with dynamic
performances. > PAGES 18-19
World
Another
Kennedy
tragedy
Estranged wife of Robert
Kennedy Jr, and mother of four,
found dead at home. > PAGE 11
Nation
Husband, 75,
becomes a
father again
Proud parent shows off little
bundle of joy to waiting reporters.
> PAGE 7
CHINADAILY
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In this issue
NATION .........................................2,4,5,7
COVER STORY. ......................................6
COMMENT.......................................8,9
WORLD.........................................10-12
BUSINESS......................................13-17
LIFE.................................................18-21
SPORTS..........................................22-24
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© 2012 China Daily
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Vol. 32 — No.
A member of the Asia News Network
9996
Consumer
optimism
fl ying high
Confi dence at levels last seen seven
years ago due to low infl ation: survey
By HU YUANYUAN
huyuanyuan@
chinadaily.com.cn
Consumer confidence in
the first quarter of this year
rose to its highest level since
2005, amid easing inflation
and a cooling property mar-
ket, according to a Nielson
survey released on Th ursday.
The quarterly consumer
confi dence index increased by
2 percentage points to 110 in
the fi rst quarter, making Chi-
na the fourth most optimistic
out of 56 markets measured.
“The government’s firm
support for small and medi-
um-sized enterprises through
expansion of credit, shifting
policy to boost domestic con-
sumption and demand, and
continued enforcement of
restrictions designed to defl ate
the real estate bubble are all
contributing to consumer opti-
mism,” said Yan Xuan, presi-
dent of Nielsen Greater China.
In April, the consumer
price index, a main gauge of
infl ation, eased to 3.4 percent
year-on-year from 3.6 percent
in March, according to the
National Bureau of Statistics.
Inflation may ease in the
first three quarters, while
rebounding slightly in the last,
the NBS report said.
“As infl ation is easing, amid
a stabilizing economy, con-
sumers feel more optimistic
about the economy, job pros-
pects and personal fi nances,”
Yan said.
Though GDP growth
slowed to 8.1 percent in the
fi rst quarter, the fi ft h decline
in a row, economists said the
situation is not likely to wors-
en in the following quarters.
“The leading economic
indicators we monitor have
been stabilizing, indicating a
further sharp growth fall is
not likely,’’ said Pan Jiancheng,
deputy director of the China
Economic Monitoring and
Analysis Center, a research
unit of the NBS.
Economic growth will
recover due to an export
rebound, property sales and
stronger fiscal spending,
Deutsche Bank AG said in a
recent research note.
“We marginally revised
down our 2012 GDP growth
forecast by 0.1 percentage
point to 8.5 percent on a tech-
nical change in the seasonal
adjustment method,” Ma Jun,
the bank’s chief economist,
said.
For Dale Preston, senior
vice-president, Analytic Con-
sulting Greater China at Niel-
son, there is no direct link
between GDP growth fi gures
and consumer confi dence.
SEE “SURVEY” PAGE 2
Investors get the
picture with art
Buyers in the frame to hedge against
risks in other sectors, report Zhu Jin,
Pei Pei and Jiang Xueqing in Beijing.
W hen Zhao Zhike v i s i t e d t h e Shanghai World Expo in Octo-
ber 2010, he stumbled upon
Beautiful Asset Management,
a Beijing-based company that
specializes in the management
of art investment funds.
Based on his previous invest-
ment experience, Zhao, who
runs an international trading
business in Beijing, believed art
could become a highly profi t-
able tool to hedge against infl a-
tion.
Make no mistake,
art is big business.
Earlier this month
The Scream, prob-
ably the most famous work by
the Norwegian artist Edvard
Munch, sold for $119.9 mil-
lion in New York. Th at price tag
saw the painting become the
most expensive work ever sold
at auction, despite being one of
four copies made by the artist.
Th e other three are all owned
by museums in the artist’s home
country.
After consulting friends
and several contacts at BAM,
Zhao began to invest in art at
the end of 2010. He now puts
around 20 or 30 percent of his
total annual investment into art
funds, equivalent to 2 to 3 mil-
lion yuan ($317,420 - $475,970).
When traditional invest-
ments, such as equities and real
estate, were in recession in 2011,
art funds prospered as investors
sought a hedge against long-
term inflation. More than 70
funds have been founded by
nearly 30 art investment com-
panies since 2009 with a com-
bined value of 5.77 billion yuan,
according to an investigation by
the Chinese magazine, Money
Journal, at the end of 2011.
SEE “ART FUNDS” PAGE 6
COVER
STORYWORLD BEATER
PHOTO PROVIDED TO CHINA DAILY
Italy’s World Cup-winning coach Marcello Lippi instructs Guang-
zhou Evergrande players during a training session on Th ursday,
hours aft er he accepted a letter of appointment from Guangzhou
boss Xu Jiayin. See story on page 24.
JAY DIRECTO / AGENCE FRANCE-PRESSE
The docking of a US submarine in a Philippine port led to a student protest near the US embassy in Manila on Thursday. The USS North Carolina docked in Subic
Bay, north of Manila, on Tuesday. Subic Bay is close to Huangyan Island. The protesters are calling on the US to keep away from the area.
Manila set to dispatch envoys to Beijing
Move refl ects desire to ease tension
over island standoff , experts say
By LI XIAOKUN
lixiaokun@chinadaily.com.cn
Manila will dispatch two
special envoys to Beijing amid
a tense standoff in the South
China Sea following the harass-
ment of Chinese fi shermen in
territorial waters.
Beijing issued an immediate
response on Thursday saying
that it noted Manila’s “attitude”.
Chinese experts said that dis-
patching the envoys, given that
the Philippines has not had any
ambassadorial representation
in China for more than a year,
refl ects Manila’s desire to ease
the crisis.
Sending the envoys, con-
fi rmed by Malacanang Palace in
Manila on Th ursday, is in sharp
contrast with Manila suspend-
ing diplomatic dialogue with
Beijing in late April.
Former Philippine ambas-
sador-designate to China,
Domingo Lee and Cesar Zal-
amea, chairman and chief exec-
utive officer of Focus Range
International, are
the envoys.
Philippine
President Benigno
Aquino, who is in
the process of selecting a new
ambassador to China, signed
the appointment papers on May
10 for a term of six months, the
palace said.
The palace said Lee will
“closely coordinate with, and
provide regular feedback on,
initiatives undertaken” to the
ambassador, once an appoint-
ment is made, and to the
Department of Foreign Aff airs
assistant secretary for Asian and
Pacifi c Aff airs.
He was also directed to pro-
mote 2012-13 as years of friend-
ly exchange between the two
countries.
As the special envoy for
investments, Zalamea will
“aggressively encourage more
Chinese investors to locate
and set up in the Philippines
in preferred areas of invest-
ment as well as new and
emerging areas for growth”.
“We need envoys to help us
along. (China) is a vast coun-
try, you need people to special-
ize for instance, on attracting
investors,” presidential spokes-
man Edwin Lacierda said on
Thursday. “We have cultural
exchanges, we have business, we
have tourism ... and we would
like to explore all avenues of our
relationship not just focus on
the contentious one,” he added,
referring to the dispute over
Huangyan Island.
SEE “ENVOYS” PAGE 12
Inside
See more,
page 12
C H I N A D A I L Y advertisement 3F R I D A Y, M A Y 1 8 , 2 0 1 2
By HE DAN in Shanghai
hedan@chinadaily.com.cn
The government plans to
invest more to improve senior
citizen services in rural areas
because more elderly people
live there than in cities, a social
trend expected to continue
until the middle of the century,
a senior Ministry of Civil Aff airs
offi cial said on Th ursday.
Dou Yupei, vice-minister of
civil aff airs, said the rural elderly
population is 1.24 percent larger
than its urban counterpart.
By 2028, he said, the discrep-
ancy is projected to increase to
11 percent.
By the middle of the century,
the number of rural elderly will
be 20 percent higher than urban
elderly in 28 provincial-level
regions, Dou said at the 2012
China Forum on the Develop-
ment of Senior Service Industry
in Shanghai on Th ursday.
“The proportion of elderly
people in rural areas is far high-
er than in urban areas. Th e mas-
sive migration of young adults
to urban areas is the driving
force behind this phenomenon,”
said Wang Dewen, a World
Bank economist specialized in
social security system.
Th is trend will continue and
families will come under more
strain to support future genera-
tions of the rural elderly, Wang
warned.
“We will increase our eff orts
to improve social support ser-
vices for the aged in rural areas,
especially for those left -behind
seniors (whose adult children
migrate to cities),” Dou told
China Daily in an interview on
the sidelines of the forum.
He said that during the 12th
Five-Year Plan (2011-15), the
government will allocate more
funds and resources to provide
better care services for rural
elderly. He added that the gov-
ernment aims to have 50 percent
of rural communities equipped
with basic elderly-friendly facili-
ties and provide senior services
by the end of 2015.
But the gap between urban
and rural elderly support ser-
vices will remain because all
urban seniors will have access
to community-based care by
then, under the central govern-
ment’s plan.
Wang urged the government
to increase medical reimburse-
ments for rural Chinese who
have joined the New Rural
Cooperative Medical Care Sys-
tem, calling it an eff ective way to
reduce the fi nancial burden of
healthcare for the rural elderly.
In addition, he said it is
urgent for China to perfect the
New Rural Pension Scheme to
ensure income support for the
rural elderly.
Maggie Siu, vice-chairwom-
an of Hong Kong Age-Friendly
City, which is affi liated with the
Hong Kong Council of Social
Service, said mutual aid services
for the aged is a more economic
way to meet the needs of the
elderly in rural and remote
areas based on the experience
of Hong Kong. She said some
senior citizens can be trained as
peer councilors to help others.
According to the Ministry
of Civil Aff airs, there were 185
million people in China aged
60 or older by the end of 2011.
The country has the world’s
largest elderly population.
Under China’s strategy for its
ageing society, the government
will enable 90 percent of elderly
to spend their golden years at
home enjoying in-home ser-
vices and guarantee that 7 per-
cent of the elderly can aff ord to
live in senior citizens commu-
nities. Th e remaining 3 percent
would be institutionalized.
Jane Barratt, secretary-
general of the International
Federation on Ageing, an
organization for improving
quality of life for elderly people
worldwide, said the Chinese
government is responding to
an international trend.
She said growing older at
home is becoming an increas-
ingly popular choice for people
in developed countries, and
that some countries, such as
Denmark, stopped building
nursing homes in the 1960s.
“Older people who are dis-
connected from families and
who are institutionalized can
actually die earlier,” Barratt said.
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UNWELCOME VISITORS
PHOTO BY ZHOU WEI / FOR CHINA DAILY
Th ai suspects of telephone fraud are repa-
triated to Th ailand from Guangzhou Bai-
yun International Airport, Guangdong
province, on Wednesday.
ZHOU WEI / FOR CHINA DAILY
A worker from a Japanese company shows visitors a therapeutic “robot” seal named Paro, which is used to provide a companion to
the elderly. The 2012 China Forum on the Development of the Senior Service Industry opened in Shanghai on Thursday.
More
gauges
of water
pollution
By WU WENCONG
wuwencong@
chinadaily.com.cn
More gauges, such as lev-
els of heavy metal and per-
sistent organic pollutants,
will be used to evaluate the
quality of major rivers and
lakes, an official said on
Th ursday.
China has been trying
to combat water pollutants
after several major river
pollution cases triggered a
public outcry.
A total of 22 indicators
will be used to evaluate riv-
er quality during the 12th
Five-Year Plan (2011-15)
period, Zhao Hualin, head
of the pollution preven-
tion department under the
Ministry of Environmental
Protection, said at a news
conference.
C h e m i c a l o x y g e n
demand, a test commonly
used to measure the amount
of organic compounds in
water, is the major indicator
used to evaluate water quali-
ty nationwide. Other indica-
tors are used in some areas
but have not been adopted
in the national evaluation
system.
Aft er more gauges, such
as heavy metal, become
national standards, the
water quality of some rivers
may be downgraded for a
certain period of time, said
Ling Jiang, deputy head of
the department. “But strict-
er evaluation will be good in
the long term.”
China’s awareness of
water safety has been
heightened following sev-
eral major pollution cases
in recent years.
A recent case happened
in South China’s Guangxi
Zhuang autonomous region
in January, when cadmium
contamination was detected
in the Longjiang River aft er
large numbers of dead fi sh
appeared.
The latest public outcry
over water safety came aft er
a Century Weekly magazine
report earlier this month,
citing unnamed insiders,
said that about half of urban
tap water failed to meet
national quality standards.
Th e government later said
the rate was 17 percent in
2011.
Amid enhanced public
awareness, the government
has vowed to bring an end to
water pollution and ensure
drinking water safety.
According to a plan
approved by the State Coun-
cil on April 16, China aims
to improve the water qual-
ity of major rivers and lakes
from “moderately polluted”
to “slightly polluted”, Zhao
said on Th ursday.
Under the plan, 49.2 per-
cent of the rivers and the
lakes monitored by the cen-
tral authorities should meet
at least Grade III standards
by the end of 2015. Th at will
be an increase of 5 percent-
age points from 2010.
The country also plans
to reduce the proportion
of “worse-than-Grade-V”
water by 8 percentage points
in fi ve years from 25.8 per-
cent in 2010. In China, river
water quality is measured
in six levels, from Grade I to
Grade V and another grade
called “worse than Grade
V”. Only Grade I and II
water can be used as drink-
ing water sources, according
to regulations.
An estimated 500 billion
yuan ($79.1 billion) will be
spent from 2011 to 2015 to
ease the pollution in 10 major
rivers and lakes monitored by
the central government.
They include Songhua
River in Northeast China,
Haihe River close to Beijing,
and Taihu Lake in East China.
Idle buildings to be seniors’ homes
By LI WENFANG
in Guangzhou
liwenfang@chinadaily.com.cn
To cope with the its aging
population, Guangdong prov-
ince plans to turn unused
buildings into community care
centers for the elderly.
Idle schools, hospitals, fac-
tories and offi ce buildings will
be renovated and made into
residential communities and
providers of services geared
toward the elderly as a part of
the province’s drive to expand
its social safety net.
Backed by the government,
this approach tries to provide
for the needs of the elderly
within their own communities
so that they have easy access to
their homes and families.
Unlike nursing homes,
where all patients live full time
at the facility, the centers will
also offer day care, allowing
seniors to get healthcare while
living with their families.
By 2015, community care
centers will serve 7 percent of
the elderly, while the tradition-
al method of care by children
in the home will still account
for 90 percent and nursing
homes, 3 percent, according to
the province’s fi ve-year plan for
senior care.
Guangdong’s elderly popula-
tion is in a period of relatively
rapid growth. By 2015, the
number of residents aged 60
and older is expected to reach
12.43 million, and the popula-
tion aged over 80 will reach 2
million, according to the fi ve-
year plan.
Those aged over 60 num-
bered 10.72 million at the end
of 2010, accounting for 12.6 per-
cent of those with a household
registration in the province.
The social security system
for the elderly is insuffi cient to
meet the increasing demand
caused by the province’s aging
population and a decrease in
the size of families.
For the elderly living at
home, more service points will
be built and businesses will be
encouraged to provide related
services. An information sys-
tem will be established to link
up emergency calls, hospitals
and social service organiza-
tions.
Th e plan’s target is for nurs-
ing homes to have a total of
350,000 beds or 30 beds for
every 1,000 elderly people in
the province by 2015. Nurs-
ing homes in Guangdong had
more than 110,000 beds at the
end of 2010, according to the
provincial civil aff airs depart-
ment.
Also, more hospitals with
departments specializing in
elder care will be built in the
future.
The most difficult part in
expanding the care centers is
management, said Law Koon-
chui, a professor in the Depart-
ment of Sociology and Social
Work at Sun Yat-sen University.
In implementing the whole
plan, the government should
clearly assign the responsibili-
ties, including the sources of
funds and the parties in charge
of management, she said, add-
ing some local governments
are reluctant to fund the con-
struction and management of
care facilities for the elderly.
Wu Songyi and Shu Meng con-
tributed to this story.
New standards
for fuel to reduce
pollution in city
By ZHENG XIN
zhengxin@chinadaily.com.cn
Beijing will introduce new
fuel standards on May 31
that municipal officials say
are nearly on a par with the
European Union’s Euro V, the
fi rst Chinese city to do so.
All fuel sold by retailers
in the Chinese capital will
be required to adhere to the
new standards, which are
expected to reduce sulfur
dioxide emissions from 50
to 10 milligrams per kilo-
gram, according to the Bei-
jing environmental protec-
tion bureau.
“Th e new Beijing V stan-
dard fuel, once implement-
ed, will gre