china daily中國日報2012.07.26

CHANGING FORTUNES Industry set to rebound in the second half > p13 PRESENTING EVIDENCE Court in Harbin hears case concerning fatal hospital attack > NATION, PAGE 3 A MAN OF INSIGHT New York-based banker and author has an insider’s understanding > WORLD, PAGE 22 chinadaily.com.cn RMB ¥1.5THURSDAY, July 26, 2012 CHINADAILY LIFE Adventure safari With Hohhot as your step- pingstone, explore the beauty of the Inner Mongolia auton- omous region. > p18 WORLD Wrong target Japan keeps using China as an excuse to build up its military muscle, analysts say, as Tokyo’s white paper on defense adopts the same ploy again. > p23 Mona mystery Archeologists unearth a skel- eton in a rare state of pres- ervation in Florence in what they believe may be a crucial step toward unraveling the mystery of Mona Lisa. > p22 BUSINESS Soft landing Th e International Monetary Fund says China’s economy is on track to achieve a soft landing despite the worsen- ing external outlook. > p13 NATION Gang busters Shenzhen police smash criminal group that threat- ened markets in the bustling district of Luohu. > p3 Online crimes China has experienced a sharp rise in cybercrime and is witnessing a new breed of Internet criminals as illegal sales of weapons and porn fl ourish online, a senior secu- rity offi cial says. > p3 SPORTS Power play Technology has an ever- larger role as athletes seek to enhance their performance. > p11 IN THE NEWS 国内统一编号:CN11-0091 国际 标准 excel标准偏差excel标准偏差函数exl标准差函数国标检验抽样标准表免费下载红头文件格式标准下载 编号:ISSN0253-9543 邮发代号:1-3 A member of the Asia News Network Contacts News (86-10) 6491-8366 Subscription (86) 400-699-0203 Advertisement (86-10) 6491-8631 E-mail editor@chinadaily.com.cn iPhone app chinadaily.com.cn/iphone © 2012 China Daily All Rights Reserved Vol. 32 — No.10055 HT er and author standing GUILLERMO MUNRO / CHINA DAILY 2010 2011 INVESTMENT BY REGION Source: CIC annual report 2011 North America Asia-Pacific Europe Latin America Africa 41.9 43.8 29.8 29.6 21.7 20.6 5.4 4.7 1.2 1.3 Unit: % Job market is not working for some Signs of economic stress are increasingly apparent, Ding Qingfen and Chen Jia in Beijing and Yu Ran in Wenzhou report. T he job market has started to show signs of stress, and while the situation is nowhere near as bad as in 2008, life is getting harder for employers and employees alike. Pugongzhong road in Wenzhou city, Zhejiang province, provides a per- fect example of the prob- lem. It was once home to more than 40 manufac- turers and exporters, but now only around 10 are left and many are strug- gling to keep their heads above water. Wenzhou Jinlishi Shoes Co, and its 300 workforce, is one of them. In the company’s No 1 workshop, covering an area of 500 square meters, fewer than 40 workers man the production line and the atmosphere is far from hectic. “It’s hard to do business. Orders have been declining since last year. And what’s worse, costs continue to increase, with both wages and raw materials surging by 20 percent,” said Ke Zhongliang, the sales manager. “We have no choice but to cut jobs,” he said. So far this year, the company has terminated the contracts of 100 employees and closed one of its three production lines. Th e parlous state at Jinlishi is one of the indicators that suggest an increasing number of workers are being laid off . Moreover, economic conditions mean it’s getting tough- er to find employment. Economic growth has decelerated to the slowest pace in three years as a result of the European debt crisis and the gov- ernment’s crackdown on property speculation. SEE “JOBS” PAGE 6 COVER STORY Editorial, page 8 Capital gets ready to face more rain By XIN DINGDING, ZHENG JINRAN and PENG YINING Beijing was preparing for further downpours on Wednesday after the heaviest rainfall for 61 years on Satur- day lashed the city and left 37 people dead. Heavy rain is forecast for the capital over the coming days, with average precipitation of 30 to 50 millimeters, Zhang Linna, chief forecaster at the Beijing Meteoro- logical Station, said. Workers were allowed to go home early on Wednesday to avoid evening traffi c jams. Th e capital’s roads will be cordoned off if water rises above 30 centimeters, and traffic police were dispatched to deal with emergencies, traffi c authori- ties said. Beijing Capital International Air- port, with 1,511 fl ights scheduled for Wednesday, prepared food, water and blankets in case fl ight delays stranded passengers. Some passengers went to the trouble of preparing their own food and bring- ing ample water supplies. Saturday’s torrential rains directly aff ected 1.6 million people and caused losses of 11.64 billion yuan ($1.82 bil- lion), the Beijing municipal government said on Wednesday night. In Fangshan, a Beijing district heavily battered by the storm on Saturday, vil- lagers were still trying to clear up. Hundreds of volunteers in the dis- trict’s Nanguan village were removing dead pigs and debris. Many of the dead animals came from a farm with 3,200 pigs that was submerged in water 3 meters deep on Saturday. About 2,900 pigs were killed. Th e surviving pigs were transferred to another farm. Th e remains of more than 1,000 dead pigs have been destroyed. Th e pig farm was still submerged on Wednesday and a putrid smell lingered in the air. More than 1,000 carcasses have still to be destroyed, said Qin Xiaogang from the China International Search and Res- cue Team. Heavy rain is likely to trigger mud- slides, cave-ins and landslips in moun- tainous areas. Villagers in areas that may be threat- ened took precautions and moved into temporary shelters. “My mother’s house has been leak- ing since Saturday. Th e village com- mittee broadcast there will be more rain, and I just cannot let her stay in her house alone any longer,” said Yang Qingli, 52, a villager from the district’s Beicheying village. Yang took shelter in a tent in the grounds of a primary school on Sun- day and persuaded her 76-year-old mother to join her on Wednesday. By Wednesday, more than 80 villag- ers had moved into 30 tents. “If it rains again, we will move into the school building,” she said. Volunteers also went to Fangshan district to help with local disaster relief work. Beijing restaurant owner Han Guo- cheng organized 35 of his employees to go to Beicheying village and help clean up. Liu Wenxin, 28, who owns a grocery store in Beijing, drove to the village with four friends on Wednesday, and donated bottled water. SEE “RAIN” PAGE 5 Inside See more, page 5 FENG YONGBIN / CHINA DAILY Wang Xiangju, 35, surveys her fl ood-ravaged store in Beicheying village in Beijing’s Fangshan district on Wednesday. Wang estimates that the deluge caused her fi nancial losses of 700,000 yuan ($109,000). CIC hit by global conditions Sovereign wealth fund suff ers worst performance since 2008, report says By WEI TIAN in Beijing and DIAO YING in London China Investment Corp, the country’s sovereign wealth fund, reported an annual loss of 4.3 percent in its overseas investment portfolio in 2011, due largely to the sluggish global economy. It was the first loss since 2008 when the financial cri- sis hit, the company said in its annual report on Wednesday. “Like many major sover- eign wealth funds and global institutional investors, over- seas investment was affected by an overall downturn in the global market,” CIC spokes- man Wang Shuilin said at a news conference in Beijing. A case in point is Singapore’s sovereign wealth fund, which has seen profi ts shrinking by 16 percent in the last fiscal year, with annual returns down from 4.6 percent to 1.5 percent. CIC Chairman Lou Jiwei said the global economy remains in a fragile state. “CIC will adhere to its pru- dent investment approach,’’ and achieve good financial returns within acceptable boundaries of risk, he said in the preview of the annual report. Total assets of CIC at the end of last year, including Central Huijin Investment, stood at $482 billion, 17.7 percent up from the previous year. The company reported a net prof- it, for domestic and overseas investments, of $48.4 billion, down 6 percent year-on-year. Investment returns in 2010 reached 11.7 percent and cumulative annualized returns stood at 3.8 percent since CIC was established in September 2007. The loss in investments, according to Wang, was main- ly attributed to the fl uctuating value of a number of assets, especially in the fi nancial and energy sectors, the two largest components in the portfolio. Financial assets accounted for 19 percent of investments and energy accounted for 14 percent. SEE “CIC” PAGE 2 Police and airport take measures as clean-up continues CUI MENG / CHINA DAILY CAPTURING THE MOMENT: China’s Olympic delegation witnesses the fl ag-raising ceremony at the Olympic Village in London on Wednesday. > p12 In this issue NATION..................... . 2-5,7 COVER STORY................ 6 COMMENT....................... 8 SPORTS...................... 9-12 BUSINESS................. 13-17 LIFE............................ 18-21 WORLD...................... 22,23 C H I N A D A I L Y nation 3T H U R S D A Y, J U L Y 2 6 , 2 0 1 2 Cybercrime fl ourishes in new areas By ZHANG YAN in Beijing and XU JINGXI in Jieyang, Guangdong China has experienced a sharp rise in cybercrime and is seeing a new breed of Inter- net criminals as illegal sales of weapons and porn fl ourish online, a senior security offi cial has said. Gu Jianguo, director of net- work protection for the Minis- try of Public Security, said cases of cybercrime have increased by an average of 30 percent each year since 2008. Gu said authorities are seeing a new kind of criminal behavior in cyberspace, with an increase in the online sale of firearms and ammunition, wiretapping devices and fake professional certificates. Online gambling and pornography distribution are also on the rise. “Traditional online crime, such as hackers stealing person- al data, has gradually become less common,” Gu said. He said loopholes in supervi- sion, low risks, big gains and hidden transaction channels were to blame for the increase in serious cybercrime. “Crooks tend to consider the Internet as a safe and con- venient haven where they can target victims,” Gu said. “Online crime, ranging from hackers invading government websites to the sale of illegal weapons, threatens social sta- bility and information security,” he said. In May, authorities launched a campaign specifi cally target- ing cybercrime. Th e ministry said by the end of June police nationwide had uncovered 600 online crimi- nal gangs, destroyed 500 illegal fi rearms factories that were sell- ing their wares over the Internet and detained 10,000 suspects. Police focusing on cyber- crime removed 3.2 million pieces of illegal and harmful information from the Internet. Between March and June, police investigated 5,600 cyber- crime cases and cut 5,000 chan- nels of communication such as e-mails and instant messenger accounts, being used by sus- pected criminals. Police also investigated 2,600 public order violations, and issued administrative punish- ments to 3,000 people. In the past two months, police across China uncovered 62 forums where fi rearms, explo- sives or pornography were being advertised for sale, including some run by popular websites such as chinanews.com and tian- ya.cn. Sites were either closed or ordered to make improvements within three months. Gu said the cybercrime unit has worked together with other police units including criminal investigation, drug enforce- ment, economic crime and public security management units, to form a unifi ed force. Wang Xiaoyang, a senior police offi cer in network secu- rity and protection, said his team focuses on shutting down the illegal operators that provide criminals with their Internet connection. “To fi ght cybercrime, author- ities focused on illegal Internet service operators, which are believed to be the force behind many illegal websites,” Wang said. Gu conceded that authori- ties face challenges in tackling China’s rampant cybercrime, “Some telecom operators sim- ply don’t check the legal quali- fi cations of websites they host,” Gu said. According to the ministry, 83.5 percent of the illegal web- sites discovered were unregis- tered or falsely registered. Gu said police will continue to crack down on online crime, and intensify the efforts to uncover illegal service units. Contact the writers at zhangyan1@chinadaily.com.cn and xujingxi@chinadaily.com. cn Arrests destroy criminal gang in market By ZHENG CAIXIONG in Shenzhen, Guangdong zhengcaixiong@ chinadaily.com.cn Police in Shenzhen, Guangdong province, on Wednesday announced the arrest of a gang that used vio- lence to monopolize markets in the bustling Luohu district. Eighteen suspects, includ- ing the gang’s alleged leader, a 38-year-old identified as Li, have been detained, while two more remain at large, said Pei Chundong, director of criminal inves- tigation for Luohu’s public security bureau. “Th e gang has been active in Taibai Road, Luohu, for many years,” Pei said at a news conference. Police detained Li and nine other suspects in an operation in March, and detained eight more in May, Pei said. “Many knives, steel pipes and other weapons were seized when police arrested the gang,” he said. “Residents, particularly business representatives, cheered after news of the police action, as it led to great improvement in social order.” A resident who did not want to be named said he used to frequently see gang members fi ghting with busi- ness owners in restaurants and entertainment venues at night. “Now I have not seen any fighting for a month,” he said. A sauna owner who gave his name only as Chen said businesses had previously been affected by the poor social order in Taibai Road. Gangsters frequently visited his sauna house to threaten his staff and drive away clients, he said. “Some of my masseuses had to resign and left aft er they were frightened by the gangsters who made trouble every week.” Pei said the gang was investigated in relation to 12 criminal matters, includ- ing forcing victims to trade, intentional injuries, illegally running casinos and intimi- dation. “By using violence to monopolize the beer market alone, the gang was found to have illegally earned more than 160,000 yuan ($25,000),” he said. “The gang forced bar- beque restaurants, stores and bars to purchase beer only from designated shops operated by the gang, and the price of a bottle of beer was several yuan higher than the market price.” Meanwhile, police have also detained Fang Mou- chun, deputy director of Buxin Housing Manage- ment Center in Luohu. He is accused of acting as a protective umbrella for the gang and was taken into custody on Friday. Major hacking syndicate cracked, police say By XU JINGXI in Jieyang, Guangdong, and ZHANG YAN in Beijing Police in South China have detained a gang of hackers they believe are responsible for attacks on 185 government websites. Police in Jieyang, Guangdong province, said the case is the big- gest of its kind in recent years. Suspects are accused of invad- ing sites managed by authorities in 30 provinces, municipalities and autonomous regions to help them to make and sell fake professional certifi cates. “The gang tampered with offi cial databases or added links to external databases so that if anyone checked up on the fake certificates, the client’s name would appear,” Chen Xiaoping, head of Jieyang police’s cyber- crime unit, said at a news con- ference. “Th is caused great damage to the image of the government. Cracking the case has helped restore their reputation,” said Xie Yaoqi, director of the public security bureau in Jieyang. Th e city’s offi ce of personnel and examinations reported an attack on its website on Dec 8, after finding a link had been illegally added. Th is led police to seven sus- pects selling fake certifi cates in Nanjing, Jiangsu province, and in Guangdong’s Heyuan. Th is in turn led to the discovery of a network of connected hack- ers, certificate forgers, adver- tisers and personal data collec- tors scattered across at least 12 provinces. As of July 12, police had arrested 165 people, confi scated more than 7,100 fake certifi cates and at least 10,000 fake seals, and are still hunting for more members of the gang. Th e fake certifi cates were sold at between 4,000 and 10,000 yuan ($626 and $1,565), police said. Th e profi ts generated sur- passed 300 million yuan. Chen said 14 principal sus- pects were under the age of 30. “Th ey have a strong idea on how not to get caught,” he said. “They used overseas servers and bank accounts of strang- ers, whose details were bought online.” One of the suspects, Luo Pan- gjie, who has admitted being a part of the gang, said he had been earning 3,000 to 5,000 yuan a month for transferring personal data to hackers since mid-2010 but he claimed he had no idea it was being used to sell fake professional certifi cates. “It was easy money,” the 24-year-old from the Guangxi Zhuang autonomous region said during an interview with reporters at a detention house. Xu Haibin from the Ningxia Hui autonomous region, who at 18 is the youngest suspect, admitted hacking government websites for 300 to 1,200 yuan a time, according to police. Chen said hackers in the past attacked government websites to show off their skills but now do it to make money. Cracking down cybercrime calls for eff orts from not only the police, according to Xu Jian- zhuo in the Ministry of Pub- lic Security’s network security bureau. “We need stricter supervi- sion,” he said. “We need laws and regulations to strengthen the obligations of Internet ser- vice providers to verify users’ information. “It’s difficult to collect evi- dence for cybercrimes.” Xu said real-name registration has not been genuinely put into practice. A user can still get registered with a fake name and someone else’s ID number. Th e online ser- vice provider will not verify the name and the number. While websites in Europe and the United States are required to maintain records of visits for 12 months, websites in China are only required to maintain records for 60 days, Xu said. The large-scale hacking of government websites has also exposed the huge market for fake certifi cates in China. Jiey- ang police claimed that more than 30,000 people bought fake qualifi cations made by the gang, which specialized in certifi cates including medical care, fi nan- cial services and architecture. Contact the writers at xujingxi@chinadaily.com.cn and zhangyan1@chinadaily. com.cn Slain intern’s parents seek compensation By WANG QINGYUN in Beijing and ZHOU HUIYING in Harbin The parents of Wang Hao, an intern at the No 1 Affi liated Hospital of Harbin Medical University who was killed by a patient in March, are asking for 864,400 yuan ($135,000) in compensation from the defen- dant. On Wednesday morn- ing, the Harbin Intermediate People’s Court in Heilongjiang province heard the case of an 18-year-old suspected of stab- bing Wang to death and injur- ing three doctors at the hospital on March 23. Th e local procuratorate, or prosecuting offi ce, accused Li Mengnan of intentional homi- cide. The court did not reach a verdict on Wednesday. Li traveled from his home in the Inner Mongolia autono- mous region to the hospital for treatment for his infl ammation i