CUT PREDICTED
Interest rates expected
to be lowered again > p13
NEW MOVE
Beijing Mayor Guo Jinlong
elected as city Party chief
> NATION, PAGE 3
DAY TRIP
Russian PM visits
islands in dispute
> WORLD, PAGE 12
chinadaily.com.cn RMB ¥1.5WEDNESDAY, July 4, 2012
CHINADAILY
COVER STORY
Plane terror
Exclusive report on the
attempted hijack in Xinjiang
on June 29. > p6
LIFE
Greater awareness
Th ere is increasing toler-
ance toward the lesbian, gay,
bisexual and transgender
communities. > p18-19
SPORTS
Zhang eyes Rio
Zhang Lin hopes to make a
splash not in London but at
the 2016 Olympics in Brazil.
> p23
BUSINESS
Profi table prediction
IPO activity in the A-share
market this year may raise
220 billion yuan ($34.6 bil-
lion), Ernst & Young said on
Tuesday. > p13
WORLD
Beijing response
China responds to Philippine
president saying he may ask
the US to deploy spy planes
over the South China Sea.
> p11
NATION
Pool incident
A foreign teacher in East
China’s Shandong province
apologizes for throwing a
5-year-old girl into a swim-
ming pool.
> p3
IN THE NEWS
In this issue
NATION..........................2-5, 7
COVER STORY.....................6
COMMENT........................ 8, 9
WORLD........................... 10-12
BUSINESS................ 13,14,16
LIFE............................... . 18-21
SPORTS....................... . 22-24
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© 2012 China Daily
All Rights Reserved
Vol. 32 — No.10036
Japan ‘must end outdated policy’
By LI XIAOKUN
and DING QINGFEN
in Tokyo
Japanese politicians and
prominent academics from
China and Japan urged Tokyo
on Tuesday to abandon
its outdated foreign policy
of leaning on the West and
accept China as a key partner
as important as the United
States.
The Tokyo Consensus, a
joint statement issued at the
end of the Beijing-Tokyo
Forum, also called on both
countries to expand trade and
promote a free-trade agree-
ment for China, Japan and
South Korea.
The consensus, the first
document to suggest solu-
tions to problems agreed
by non-governmental elites
from both countries since the
forum started in 2005, called
on Beijing and Tokyo to join
hands to help ease the Euro-
pean debt crisis.
Koichi Kato, a member of
the Japanese House of Rep-
resentatives, told the forum
in Tokyo that it is time for
Japan to distance itself from
the theory of being separate
from Asia.
Th e theory, fi rst enunciated
by Japanese author Yukichi
Fukuzawa, an influential
figure during the Meiji Era
(1868-1912), has guided
Japan’s foreign policy.
Fukuzawa wrote that Japan
should not wait for its neigh-
bors, including China and
Korea, to start their modern-
ization but ought to “leave
Asia” and follow Western
countries.
It also suggested that the
government should not treat
China and Korea — which he
called “bad friends in Asia” —
with “special sympathy”, but
to treat them as the West did.
“We used to follow the path
of breaking away from Asia
and joining Europe,” Kato
said.
“But look at Japan’s foreign
trade now, its trade volume
with the US has fallen behind
the one with China. Th e cur-
rent situation has changed too
much from the old one, which
originated from the old theory.
We should propose a com-
pletely diff erent one,” he said.
SEE “JAPAN” PAGE 10
Inside
Special coverage, page 10
Online
See video from the forum at
www.chinadaily.com.cn/video
Yuan will
buck fall
in value:
experts
Currency set to rise while other
emerging economies face problems
By WANG XIAOTIAN in Beijing,
YU RAN in Shanghai,
and QIU QUANLIN
in Guangzhou
Th e eurozone crisis is taking
a toll on emerging economies
as their currencies record their
biggest falls against the dollar
since 1998, but the yuan is well
placed to appreciate, analysts
said.
“Th e recent weakness of the
yuan and other currencies of
emerging economies was not
due to depreciation,” said Cao
Yuanzheng, chief economist at
the Bank of China.
“Instead, the real reason is the
rapid appreciation of the dollar
as it became a ‘safe haven’ for
investors,’’ seeking shelter from
the eurozone storm.
The yuan weakened 0.88
percent in the second quar-
ter to 6.3541 to the dollar in
Shanghai, the biggest quarterly
decline since it de-pegged from
the dollar in 2005.
It dropped 0.77 percent to
6.3610 in Hong Kong’s off shore
market during the same period.
The central bank lowered
the currency’s daily reference
rate, its rate against the dollar,
by 0.48 percent in the second
quarter, while the dollar index,
which rates the dollar against a
basket of currencies, strength-
ened 4 percent as investors
favored safer assets, according
to data collected by Bloomberg.
Th e yuan has been allowed,
since April, to trade as much as
1 percent on either side of the
daily reference rate.
Safe-haven demand has driv-
en the dollar up and dragged
down currencies of emerging
economies, the Bank of China
said last week.
By mid-June, the dollar index
had climbed to 75.4 percent, an
increase of 3.6 percent from the
beginning of the year.
Currencies of the major
emerging economies, such as
Brazil, Russia, South Africa and
India, depreciated in the second
quarter between 10 to 13 per-
cent, the biggest fall since 1998.
Th e Brazilian real witnessed
the most dramatic fall of 13
percent, while the Indian rupee
hit record lows against the dol-
lar. Th e rupee has depreciated
10 percent since the start of
April against the greenback.
“Capital outfl ow triggered by
concern at the economic slow-
down in these countries has led
to falling currencies,” said Wan
Jun, an analyst at the Chinese
Academy of Social Sciences.
SEE “YUAN” PAGE 2
QUALITY TIME
PHOTO BY WANG JING / CHINA DAILY
Kelly Grace enjoys playing with her American foster mother Annie Laurie Ritchie at the China Center for Children’s
Welfare and Adoption in Beijing on Tuesday. Nearly 200 children, adopted from China, and their families are visit-
ing Beijing on a heritage tour. See story on page 3.
Personal data
crimes set to
be defi ned
By ZHANG YAN
zhangyan1@chinadaily.com.cn
Crimes involving the theft
of personal data will be regu-
lated and clearly defined, a
senior offi cer from the Min-
istry of Public Security said.
“We’re negotiating with the
Supreme People’s Procurator-
ate and the Supreme People’s
Court to push forward the
legislation to protect personal
data,” Liao Jinrong, deputy
director of the criminal inves-
tigation department under
the Ministry of Public Secu-
rity, told China Daily in an
exclusive interview.
Although the existing
Criminal Law includes crimes
of illegally obtaining, off ering
or selling personal data, Chi-
na lacks a specifi c regulation
with a clear defi nition of such
crimes, making it diffi cult to
obtain convictions, Liao said.
Police launched a national
campaign in April to combat
crimes related to the theft of
personal data.
Offi cers from 20 provincial-
level regions arrested nearly
2,000 suspects for allegedly
stealing or disclosing personal
information.
This was the first crack-
down of its kind and the
police discovered the identity
of 44 people providing illegal
information, destroyed 161
unauthorized databases, and
closed 611 companies that
illicitly conducted surveys.
The leaking of personal
information poses a number
of threats, not least to mem-
bers of the public who may
face blackmail or fraud, he
said.
Th ere is growing demand,
according to Liao, for per-
sonal data.
“Usually details primar-
ily fall into two categories,’’
he said. “Commercial activ-
ity, including real estate and
insurance or criminal activ-
ity, including telecom or
Internet scams, extortion,
blackmail and kidnapping ”
he said.
“We may get spam mes-
sages that annoy us but the
crimes triggered by leaked
personal data cause real harm
to society.’’
Sources that provide per-
sonal data are usually involved
in institutions that collect it,
including financial institu-
tions, he said.
SEE “DATA” PAGE 4
Move follows police campaign
targeting information leaks
ZOU HONG / CHINA DAILY
Invited speakers enjoy a light moment during a news conference at the Beijing-Tokyo
Forum on Tuesday. In attendance are, from left, Chen Jian, former Chinese ambassador to
Japan, Wei Jianguo, former vice-minister of commerce, Zhao Qizheng, head of the foreign
aff airs committee of the National Committee of the Chinese People’s Political Consultative
Conference and Yasushi Akashi, former United Nations under-secretary-general.
“Why is (the Guangzhou
government) launch-
ing this sudden attack
without soliciting and
considering the public’s
opinion? Aft er all, this
is a public policy that
matters to numerous
families!”
HAN ZHIPENG, a member of
the Guangzhou committee of
the Chinese People’s Political
Consultative Conference, said
on his micro blog that Guang-
zhou government should seek
opinions from residents, and
take them into account, before
creating a policy to address
traffi c jams instead of abruptly
releasing a cap on car purchas-
es. Authorities in the capital city
of Guangdong province said on
Saturday that only 10,000 new
vehicles a month will be granted
license plates starting in July.
THE NUMBER
44
THE AGE OF
A VICE-GOVERNOR
Tan Zuojun, former general
manager of China State Ship-
building Corporation, was re-
cently appointed vice-governor
of Northeast China’s Liaoning
province by the provincial
people’s congress. Born in 1968
in Hunan province’s Chaling
county, Tan is now the youngest
offi cial at the vice-provincial
level in China.
2 nation | digest C H I N A D A I L Y W E D N E S D A Y, J U L Y 4 , 2 0 1 2
24 / 32
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26 / 30
25 / 29
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26 / 34
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24 / 30
32 / 44
32 / 40
21 / 30
21 / 29
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27 / 35
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25 / 29
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28 / 37
29 / 38
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19 / 27
17 / 30
21 / 26
20 / 30
WEDNESDAY
THURSDAY
24 / 30
22 / 30
16 / 27
17 / 27
TRAVELER’S FORECAST
Chengdu
Urumqi
Beijing
Xining
New
Delhi
Kathmandu
Thimphu
Yangon
Singapore
Jakarta
Kuala Lumpur
Bangkok
Vientiane
Ulaanbaatar
Shanghai
Bandar Seri
Begawan
Macao
Hong
Kong
Guangzhou
Manila
Hanoi
Taipei
Seoul
Pyongyang
Tokyo
Lhasa
CHINA
AMERICAS
JULY 4-5WED - THU
LOW/HIGH TEMPERATURES, IN DEGREES CELSIUS,
AND EXPECTED CONDITIONS
C Cloudy
D Drizzle
Du Dust
F Fog
O Overcast
R Rain
Sh Shower
S Sunny
Sn Snow
St Storm
T Thunderstorms
weather
ASIA-PACIFIC-MIDDLE EAST
EUROPE
BuenosAires 8 / 12 O 8 / 12 C
Chicago 24 / 34 C 24 / 32 C
Caracas 25 / 32 C 25 / 32 C
Houston 25 / 34 C 24 / 34 C
Las Vegas 25 / 40 S 25 / 36 S
Los Angeles 16 / 22 O 17 / 22 C
Mexico City 14 / 22 O 14 / 22 Sh
New York 23 / 31 Sh 22 / 33 C
Ottawa 14 / 29 O 17 / 28 C
Rio De Janeiro 20 / 26 S 19 / 26 S
San Francisco 12 / 20 C 12 / 20 C
Sao Paulo 16 / 25 S 15 / 24 S
Vancouver 11 / 17 C 12 / 17 C
Washington 22 / 35 O 24 / 33 O
Athens 24 / 34 S 23 / 35 S
Berlin 16 / 25 C 13 / 27 C
Brussels 13 / 25 O 13 / 22 Sh
Geneva 15 / 23 C 14 / 23 C
Istanbul 21 / 29 S 22 / 29 S
London 14 / 22 O 15 / 22 C
Madrid 15 / 32 C 14 / 31 C
Moscow 18 / 27 S 13 / 28 S
Paris 13 / 25 O 16 / 22 O
Rome 20 / 30 S 18 / 29 S
Vienna 22 / 29 C 22 / 31 T
CHINA
AFRICA
22 / 31
22 / 28
Cairo 24 / 34 S 24 / 34 S
CapeTown 10 / 14 D 8 / 17 S
Johannesburg 9 / 19 S 9 / 18 S
Lagos 22 / 27 Sh 22 / 27 O
Nairobi 13 / 24 C 13 / 22 C
Abu Dhabi 31 / 47 R 30 / 47 D
Bangkok 26 / 34 O 26 / 34 O
Colombo 26 / 31 C 25 / 30 O
Dubai 31 / 42 C 32 / 42 S
Hanoi 26 / 33 O 26 / 33 O
Islamabad 29 / 42 C 29 / 41 C
Jakarta 24 / 32 C 24 / 31 C
Karachi 28 / 33 O 28 / 32 O
Kuala Lumpur 25 / 34 O 24 / 33 O
Manila 25 / 29 O 25 / 29 O
Mumbai 25 / 29 Sh 26 / 30 Sh
New Delhi 32 / 44 C 32 / 40 C
Pyongyang 21 / 31 O 22 / 29 O
Riyadh 29 / 44 S 29 / 44 S
Seoul 22 / 31 O 22 / 28 C
Singapore 26 / 30 O 25 / 29 O
Sydney 5 / 14 C 7 / 15 O
Teheran 26 / 38 S 26 / 38 S
Tokyo 21 / 30 O 21 / 29 O
Wellington 3 / 11 D 8 / 12 D
Yangon 24 / 29 D 24 / 30 Sh
Beijing 24 / 30 T 22 / 30 T
Changchun 16 / 25 R 17 / 28 C
Changsha 27 / 36 C 27 / 36 C
Chongqing 25 / 28 R 24 / 29 R
Dalian 20 / 27 C 21 / 26 C
Fuzhou 27 / 38 C 27 / 37 S
Guangzhou 24 / 34 C 24 / 33 Sh
Guilin 26 / 33 C 25 / 34 C
Guiyang 20 / 25 O 19 / 25 Sh
Haikou 26 / 32 T 26 / 32 C
Hangzhou 27 / 37 C 27 / 36 C
Harbin 18 / 27 T 19 / 30 T
Hefei 26 / 35 T 27 / 35 C
Hohhot 19 / 29 T 18 / 30 T
Hongkong 26 / 33 S 25 / 34 Sh
Jinan 24 / 33 T 22 / 29 R
Kunming 18 / 26 Sh 18 / 26 Sh
Lanzhou 18 / 32 C 18 / 34 S
Lhasa 9 / 22 C 11 / 20 Sh
Lijiang 16 / 22 R 15 / 21 R
Macao 26 / 33 S 25 / 34 Sh
Nanchang 28 / 36 S 27 / 35 S
Nanjing 25 / 34 T 26 / 33 T
Nanning 25 / 33 Sh 26 / 34 C
Qingdao 23 / 28 Sh 22 / 25 R
Sanya 26 / 32 Sh 26 / 32 Sh
Shanghai 28 / 37 C 29 / 38 C
Shenyang 19 / 28 C 19 / 30 C
Shenzhen 27 / 32 C 27 / 31 C
Shijiazhuang 26 / 32 T 23 / 33 T
Suzhou 28 / 37 C 29 / 37 C
Taipei 27 / 35 C 27 / 35 C
Taiyuan 20 / 29 Sh 19 / 30 C
Tianjin 25 / 32 T 22 / 31 T
Urumqi 16 / 27 Sh 17 / 27 Sh
Wuhan 27 / 35 C 28 / 35 C
Xiamen 26 / 34 C 26 / 32 C
Xi’an 23 / 34 O 24 / 35 O
Xining 11 / 24 Sh 10 / 26 C
Yantai 23 / 29 O 22 / 25 R
Yinchuan 20 / 34 S 20 / 35 S
Zhengzhou 23 / 28 R 22 / 27 R
Zhuhai 27 / 33 S 27 / 32 C
FROM PAGE 1
Zhong Hong, an analyst at
Bank of China, said that the
outlook would be different
from the third quarter on.
“For emerging economies,
depreciation benefi ts exports,
therefore it cannot be ruled
out that some countries will
tolerate the situation. But in
the third quarter, the outlook
for these currencies will be
mixed.’’
Zhang Monan, an econo-
mist at the State Information
Center, said that although the
yuan declined against the dollar
recently, the scale is far less than
other emerging economies.
“And China’s economic
strength means that long-
term stable growth is ahead
and there is no basis for any
large depreciation of the yuan.”
Th e yuan may actually start
appreciating in the near future,
Liu Ligang, head of China eco-
nomics at the Australia and
New Zealand Banking Group,
said as China’s offi cial Purchas-
ing Managers’ Index, an indi-
cator of manufacturing activ-
ity, had beaten expectations in
June.
“And as the situation in
Europe turns more positive,
we believe the yuan will grad-
ually start to appreciate,” Liu
said. He forecast that the yuan
will appreciate by 1.5 percent
throughout the year.
The official PMI dipped
slightly to 50.2 in June from
50.4 in May due to cyclical rea-
sons, said Zhang Zhiwei, chief
China economist at Nomura
Holdings.
“Th e PMI has a seasonal bias,
falling on average by 1.1 points
between May and June. Th ere-
fore the slight drop in June this
year is a positive sign.”
Zhang Wenhua, the owner
of a company in Nanjing that
exports products to Europe,
said the recent deprecia-
tion of the yuan has bene-
fi ted his business as exports
increased.
“I think the currency will
keep depreciating gradually
in the next few months so
I will defi nitely continue to
use dollars to settle deals with
clients,” he said.
Exporters in Guangdong
province said that the recent
yuan depreciation has not
damaged their businesses.
“We don’t feel too much
pressure because we have
fi xed the price of orders with
clients,” said Zhang Peizhen,
general manager of Cheng-
hai Henglong Plastic Toys,
which exported goods valued
at about 8 million yuan ($1.3
million) last year.
“Traders may be under
some pressure if the value of
the yuan is going up. But we
often fix the price of short-
term orders,” she said.
Chen Feng, deputy gen-
eral manager of Guangdong
Xinghui Auto Model, said the
company had already intro-
duced measures to avoid risks
brought by yuan fl uctuation.
“Besides exporting, we also
import raw materials to balance
any fl uctuation,” Chen said.
Contact the writer at wangx-
iaotian@chinadaily.com.cn
Yuan: Currency decline less than other emerging nations
around chinaQUOTABLE‘‘
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BEIJING
Poor storage
causes grain losses
An agriculture offi cial said on
Tuesday that China loses about 25
million metric tons of grain every
year due to improper storage.
Th at is equivalent to about
the annual wheat production of
Australia, one of the world’s major
cereal exporters, according to
Zhang Tianzuo, director of the
farm produce processing bureau
with the Ministry of Agriculture.
He cited a loss ratio between 8 and
12 percent at an agricultural forum
held in Beijing.
Also, the country loses more
than 20 percent of the vegetables it
produces every year, Zhang said.
He attributed the heavy losses
in grain to substandard process-
ing facilities and old technologies
farmers and agricultural associa-
tions use in preliminary process-
ing.
China’s grain output hit a record
high of 571.21 million tons in
2011, marking eight consecutive
years of growth.
Rains a welcome
relief for drought
China’s drought relief authority
said on Tuesday that recent rain
has helped relieve a drought plagu-
ing areas along the Huaihe River
for several weeks.
Heavy rain has been falling on
Henan, Anhui, Shandong and
Jiangsu provinces since Friday,
with accumulated precipitation
reaching 37 mm. It has done much
to relieve the lingering drought,
according to a statement from the
State Flood Control and Drought
Relief Headquarters.
As of Tuesday, 240,000 people
in the four provinces were short
of drinking water, down from
600,000 people at the end of last
month.
Th e country’s meteorological
authority forecast that another
round of rain will hit areas along
the Huaihe River from Monday to
Wednesday, but the water level on
its trunk stream will remain low,
the statement said.
Publishing houses
get fi nancial boost
Chinese publishing houses are
to receive at least 20 billion yuan
($3.17 billion) in loans over the
next fi ve years to support their
overseas projects.
Th e Export-Import Bank of
China signed an agreement with
the General Administration of
Press and Publication on Tuesday
to provide fi nancial support for
publishers’ attempts to explore
international markets, according
to a GAPP statement.
Th e GAPP will recommend a
list of eligible companies for the
loans and they will be shortlisted
by an expert panel before being
submitted to the bank for exami-
nation, the statement said, without
elaborating on the number of
fi rms that might get the loans.
In January, the GAPP promised
to work out favorable policies for
domestic publishers to enter over-
seas markets.
All turbines turning
at Three Gorges
All 32 generators of China’s
Th ree Gorges Dam, the world’s
largest hydropower project, went
into operation on Monday evening
as fl ood season arrived.
It is the fi rst time all 32 genera-
tors — including the last turbine,
which passed a trial operation in
May — have started up at the same
time, said Zhang Chengping, head
of the machinery and electronic
engineering bureau of the China
Th ree Gorges Corporation.
Th e outbound fl ow rose to
34,000 cubic meters per second on
Monday evening due to fl oodwa-
ters from the upper reaches of the
Yangtze River and was suffi cient
for the operation of the 32 gen-
erators, which have a full load of
700,000 kW each, he said.
Th e 32 generators of the
Th ree Gorges project, which was
launched in 1993, have a com-
bined ge