IRAN FALLOUT
China urges the US not to
sanction bank > p23
NOT DECLARED
Japanese man caught
trying to smuggle relics
> NATION, PAGE 5
MAKING A SPLASH
Michael Phelps becomes the most
decorated Olympian of all time
> SPORTS, PAGE 12
chinadaily.com.cn RMB ¥1.5THURSDAY, August 2, 2012
YEAH!
SHE
WON
The allegations are a little bit unfair,
but I am not aff ected by them at all.”
Nobody ever suspected other countries’
multigold winners. Why doubt me? I just won two.”
Swimming prodigy smiles
in the face of adversity as
world hails a new star
In this issue
NATION ........................................ 2-5,7
COVER STORY .................................... 6
COMMENT ......................................... 8
SPORTS ....................................... 9-12
BUSINESS ................................... 13-17
LIFE .............................................. 18-21
WORLD ..................................... 23,24
Contacts
News: (86-10) 6491-8366
Subscription: (86) 400-699-0203
Advertisement: (86-10) 6491-8631
E-mail: editor@chinadaily.com.cn
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国内统一编号:CN11-0091 国际标准
编号:ISSN0253-9543 邮发代号:1-3
© 2012 China Daily
All Rights Reserved
Vol. 32 — No. 10061
A member of the Asia News Network
IN THE NEWS
SPORTS
Ruled out
Eight badminton players,
including Wang Xiaoli and
Yu Yang from China, were
disqualifi ed from the Olympic
women’s doubles event. Th e
Chinese delegation said they
respect the decision and will
investigate. > p12
LIFE
France has taste
Intoxicating scenery and fi ne
wines are all part of a trip to
the Alsace and Champagne
regions. > p19
Dressed to thrill
Fashion designer Huishan
Zhang wants to break the
stereotype that made in China
clothes are inferior. > p18
BUSINESS
Firmer foundation
New home prices post their
biggest gain in more than a
year. > p13
WORLD
Growing problem
Eurozone unemployment hit
its highest level since the sin-
gle currency was born. > p24
NATION
Class action
Two international schools,
Harrow and Juilliard, focus on
China. > p4
Under review
Plan to cut expressway toll
charge during holidays
receives mixed reaction. > p3
PMI
55
Source: National Bureau of Statistics
CHINA DAILY
July 2011
July 2012
%
45
50
50.7
50.1
COVER
STORY
Stars and gripes but fl ag issue symbolizes partnership
Age of globalization means getting the best deal, Peng Yining reoports.
E very morning for the past 20 years, Karyn Abe has run the Stars and Stripes
up the fl agpole in her garden.
Every evening, the fl ag is low-
ered and stored away, ready for
use the next day.
Th e 68-year-old resident of
Hawaii fl ies the 1.2 by 1.8 meter
national emblem to show her
allegiance to her country. But
for Abe, and many other US
citizens, the fl ag’s provenance
is as important as the ideals it
embodies.
W h e n s h e
learned earlier this
month that most
US fl ags sold in the country are
made in China, she checked
the packaging in which her fl ag
came.
“Thank goodness. My flag
was made in the United States!”
she said. “It seems a shame to
outsource such an American-
based thing as our own fl ag.”
And it’s not just Chinese-
made fl ags. Th e matching blaz-
ers and uniforms that members
of Team USA wore at the open-
ing ceremony of the 2012 Lon-
don Olympic Games caused an
uproar. Th ey, too, were made
in China.
The flames were fanned
by politicians, such as Senate
Majority Leader Harry Reid,
who said the uniforms —
designed by the US couturier
Ralph Lauren, but outsourced
to China — should have been
put in a pile and torched.
SEE “MADE IN CHINA” PAGE 6
CHINADAILY
PLASH
becomes the most
mpian of all time
FAN JUN / XINHUA
Cloaked in the national fl ag, Ye Shiwen leaves the pool after scooping a second gold medal in the 200m individual medley on Tuesday in London.
Factory activity growth at 8-month low
Separate PMI for smaller companies
suggests economy primed to pick up
By CHEN JIA, WEI TIAN
in Beijing and YU RAN in Shanghai
Manufacturing activity
increased in July, albeit at the
slowest rate in eight months,
while another gauge, focusing
more on small and medium-
sized enterprises, recorded the
largest increase in nearly two
years.
The two readings suggest
a stabilization, and analysts
expect the economy to pick up
in the next fi ve months.
Th e offi cial purchasing man-
agers’ index in July, a key gauge
refl ecting operational activity
in the manufacturing sector,
stood at 50.1, according to the
National Bureau of Statistics
and the China Federation of
Logistics and Purchasing on
Wednesday.
It was lower than the market
consensus of 50.5, and was a
slight drop from 50.2 in June.
A reading above 50 indicates
expansion and beneath, con-
traction.
A separate PMI reading, by
HSBC, which mainly focuses
on small and medium-sized
businesses, indicated a slowing
deterioration with a reading
of 49.3 in July, up from 48.2 in
June, the largest month-on-
month increase in 21 months.
The official PMI figure is
based on data from 820 com-
panies in 31 industries. Large
enterprises generated a PMI of
50.3 last month, a decline from
50.6 in June. Small-scale busi-
nesses recorded a fi gure of 48.2,
against 47.2 for a month ear-
lier. Th is fi gure has remained
below 50 for four consecutive
months.
SEE “PMI” PAGE 2
By SUN XIAOCHEN
in London
sunxiaochen@chinadaily.com.cn
Olympic champions have to
have guts, determination, belief
and grace under pressure, quali-
ties that are also needed to face
the slings and arrows of false
accusations.
Swimming prodigy Ye Shi-
wen has these qualities in abun-
dance.
Ye, 16, should be basking in
triumph as China’s fi rst double
gold medalist swimmer at an
Olympics following sensational
victories in both the 200- and
400-meter individual medleys.
Instead, she has had to
encounter snide comments and
allegations in the wake of her
success.
Ye can handle both the bou-
quets and brickbats and will
not let any unfounded allega-
tions dampen
her justifiable
pride.
Back home,
Ye has won the
hearts of mil-
lions with her
stunning per-
formance and ready smile.
On weibo, people pointed
out that her name suits her very
well: “Yeah, she won”.
“Th e allegations are a little bit
unfair, but I am not aff ected by
them at all,” Ye said, employing
modest understatement, after
breaking the Olympic record
to win the 200m individual
medley in 2 min and 7.57 sec
on Tuesday.
Since shattering the world
record for the 400m individual
medley with an eye-catching
last-leg freestyle sprint on Sat-
urday, Ye has been put under the
microscope, with pundits alleg-
ing that her last 50 meters of
28.93 sec, faster than US swim-
mer Ryan Lochte’s equivalent
in the male event, could only be
explained by drug use.
John Leonard, the head of the
American Swimming Coaches
Association, but not a member
of the US Olympic staff, told
Th e Guardian that “every time
we see something ... ‘unbe-
lievable’, history shows us that
it turns out later on there was
doping involved”.
When asked if she thought
the allegations were rooted in
bias against China, Ye replied:
“It’s possible.”
SEE “RECORD” PAGE 2
‘‘‘‘
Inside
• Editorial,
page 8
• Olympics
coverage,
pages 10-12
23 / 31
23 / 31
26 / 31
26 / 31
25 / 33
25 / 34
26 / 31
27 / 31
24 / 28
24 / 28
29 / 35
29 / 35
25 / 31
25 / 31
27 / 31
28 / 32
24 / 30
21 / 29
27 / 34
26 / 34
25 / 29
26 / 30
24 / 33
24 / 32
27 / 32
27 / 31
26 / 37
26 / 36
14 / 28
14 / 31
23 / 31
23 / 31
THURSDAY
FRIDAY
21 / 27
23 / 27
24 / 30
16 / 21
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
AUGUST 2-3THU - FRI
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 11 / 16 C 11 / 16 O
Chicago 19 / 31 O 21 / 31 O
Caracas 26 / 32 C 25 / 33 C
Houston 26 / 33 C 25 / 33 C
Las Vegas 25 / 40 C 27 / 40 C
Los Angeles 17 / 23 C 18 / 24 C
Mexico City 14 / 25 C 14 / 25 C
New York 22 / 31 C 23 / 32 C
Ottawa 18 / 29 C 17 / 27 C
Rio De Janeiro 19 / 25 C 19 / 25 C
San Francisco 12 / 22 C 12 / 21 C
Sao Paulo 15 / 24 S 16 / 26 S
Vancouver 13 / 20 O 13 / 23 C
Washington 21 / 32 C 22 / 33 C
Athens 27 / 35 S 26 / 35 C
Berlin 12 / 31 C 17 / 26 T
Brussels 13 / 22 Sh 16 / 22 C
Geneva 15 / 28 C 18 / 27 T
Istanbul 24 / 29 C 24 / 30 C
London 14 / 23 Sh 13 / 21 Sh
Madrid 18 / 34 S 15 / 34 S
Moscow 17 / 27 C 18 / 27 S
Paris 13 / 24 C 16 / 23 C
Rome 20 / 32 S 21 / 30 S
Vienna 16 / 29 S 16 / 29 S
CHINA
AFRICA
24 / 34
24 / 33
Cairo 26 / 36 C 26 / 35 S
CapeTown 5 / 19 S 3 / 21 S
Johannesburg 6 / 16 S 0 / 19 S
Lagos 22 / 27 O 22 / 26 C
Nairobi 12 / 23 C 13 / 24 C
Abu Dhabi 32 / 47 D 29 / 47 D
Bangkok 26 / 31 O 27 / 31 O
Colombo 26 / 31 C 26 / 31 C
Dubai 36 / 45 S 35 / 45 S
Hanoi 28 / 36 C 27 / 34 O
Islamabad 29 / 37 C 29 / 35 C
Jakarta 23 / 31 C 23 / 31 C
Karachi 28 / 31 O 27 / 32 O
Kuala Lumpur 25 / 33 C 25 / 34 C
Manila 25 / 29 Sh 26 / 30 Sh
Mumbai 26 / 30 O 27 / 30 Sh
New Delhi 29 / 35 O 29 / 35 C
Pyongyang 24 / 31 O 23 / 31 O
Riyadh 31 / 46 C 31 / 45 S
Seoul 24 / 34 C 24 / 33 C
Singapore 26 / 31 Sh 26 / 31 C
Sydney 7 / 16 C 7 / 19 O
Teheran 25 / 37 S 26 / 38 S
Tokyo 25 / 31 O 25 / 31 C
Wellington 8 / 12 D 9 / 12 O
Yangon 24 / 28 Sh 24 / 28 Sh
Beijing 21 / 27 C 23 / 27 O
Changchun 18 / 24 R 20 / 28 D
Changsha 28 / 35 C 27 / 33 C
Chongqing 25 / 35 C 25 / 36 C
Dalian 22 / 27 C 22 / 26 C
Fuzhou 25 / 30 R/St 24 / 29 R/St
Guangzhou 26 / 37 S 26 / 36 C
Guilin 25 / 36 S 25 / 36 C
Guiyang 20 / 29 C 19 / 29 T
Haikou 26 / 33 T 26 / 33 C
Hangzhou 26 / 31 R/St 25 / 30 R/St
Harbin 18 / 24 D 19 / 26 D
Hefei 26 / 34 C 27 / 33 T
Hohhot 17 / 29 C 18 / 29 S
Hongkong 27 / 34 T 26 / 34 T
Jinan 21 / 31 C 22 / 27 R
Kunming 17 / 25 R 17 / 26 Sh
Lanzhou 19 / 32 S 20 / 32 S
Lhasa 13 / 24 C 12 / 23 D
Lijiang 14 / 22 D 13 / 23 D
Macao 27 / 34 Sh 26 / 34 Sh
Nanchang 28 / 34 C 27 / 31 Sh
Nanjing 26 / 32 T 25 / 31 R
Nanning 26 / 36 S 26 / 36 C
Qingdao 24 / 29 R 26 / 28 R/St
Sanya 26 / 32 C 26 / 32 C
Shanghai 27 / 32 R 27 / 31 R
Shenyang 20 / 24 D 20 / 26 Sh
Shenzhen 28 / 36 T 26 / 31 C
Shijiazhuang 23 / 28 C 24 / 30 C
Suzhou 27 / 32 Sh 27 / 33 R
Taipei 27 / 31 R/St 28 / 32 R/St
Taiyuan 18 / 28 C 18 / 29 C
Tianjin 20 / 29 C 23 / 31 C
Urumqi 24 / 30 Sh 16 / 21 R
Wuhan 27 / 35 C 26 / 33 C
Xiamen 27 / 32 Sh 25 / 30 R
Xi’an 23 / 32 Sh 23 / 34 C
Xining 10 / 27 S 11 / 29 S
Yantai 24 / 30 O 23 / 28 R
Yinchuan 18 / 32 C 18 / 32 C
Zhengzhou 23 / 31 C 24 / 28 C
Zhuhai 27 / 35 S 26 / 33 Sh
2 nation | digest C H I N A D A I L Y T H U R S D A Y, A U G U S T 2 , 2 0 1 2
1,820
YUAN
The per capita healthcare expen-
diture in China reached 1,820
yuan ($286) in 2011, according
to the China Academy of Medi-
cal Sciences and Beijing Munici-
pal Health Bureau. According
to the research, released on
Monday, total healthcare expen-
ditures in China was 2.45 trillion
yuan in 2011, accounting for 5.2
percent of GDP, and about 500
billion yuan more than 2010.
PRAYER IN TIBET
PHOTOS BY LOSANG / FOR CHINA DAILY
Above: Tibetan Buddhists wait to pay
homage to the 11th Panchen Lama Bain-
qen Erdini Qoigyijabu at the Tashilhunpo
Monastery, the traditional seat of succes-
sive Panchen Lamas, in Xigaze, the Tibet
autonomous region, on Tuesday.
Below: Panchen Lama Bainqen Erdini Qoi-
gyijabu chants at the Tashilhunpo Monas-
tery on Tuesday.
BEIJING
Mainland, Taiwan
to hold new talks
Chief mainland and Taiwan
negotiators for cross-Straits rela-
tions will hold their eighth round
of talks on Aug 9 in Taipei.
Chen Yunlin, president of the
mainland-based Association for
Relations Across the Taiwan Straits,
and Chiang Pin-kung, chairman of
the Taiwan-based Straits Exchange
Foundation, are expected to dis-
cuss and endorse an investment
protection agreement.
Th e two parties are also
expected to discuss and sign an
agreement on customs coopera-
tion, according to a press release
issued on Wednesday by the
Taiwan Work Offi ce of the Com-
munist Party of China Central
Committee.
Govt to promote
breastfeeding
Th e Ministry of Health has said
it hopes to have half of China’s
mothers breastfeeding within
eight years.
“Th e ministry will make great
eff orts to increase the rate to 50
percent by 2020 in the country,
but that needs cooperation of
all stakeholders, including hos-
pitals, families, and communi-
ties,” said Xu Xiaochao, a senior
offi cial with the maternal and
children health and community
health department under the
ministry.
Currently, only about 30
percent of newborns younger
than 6 months old are breast-
fed exclusively on the Chinese
mainland, a recent ministry
survey showed.
HEBEI
Offi cials charged
for toxic capsules
At least 38 offi cials in three
provinces have either been dealt
disciplinary punishments or face
criminal charges following a med-
ical-safety scare that revealed pill
capsules were being made from
leather shoes.
A number of companies in
Hebei province were using cal-
cium oxide to bleach waste leather
before stewing the leather into
industrial gelatin to sell to capsule
makers.
According to the Ministry of
Supervision website, 12 offi cials in
Hebei, 20 offi cials in Henan prov-
ince and six offi cials of Zhejiang
province have been held respon-
sible for the scandal and will be
punished or face criminal charges.
SHANXI
Coal mine fl ooding
traps 12 workers
Twelve people were trapped
aft er a coal mine fl ooded on
Wednesday morning in North
China’s Shanxi province, accord-
ing to local authorities.
Th e accident occurred around
3 am at a pit under construction,
which is located in Hongtong
county, Linfen city, a spokesman
with the provincial coal mine
safety administration said.
Twenty-two people who were
working underground escaped
from the fl ooded shaft , said
the spokesman, adding that
rescuers had managed to talk
over the phone with four of the
trapped.
CHINA DAILY — XINHUA
FROM PAGE 1
“Production and construc-
tion always slow down in July,”
Lu Zhengwei, chief economist
with Industrial Bank, said.
He was confi dent that the
outlook would improve soon,
a view shared by the China
Federation of Logistics and
Purchasing.
Sub-indexes, gauging
production, new orders and
employment, all fell by 0.2
points from June, highlight-
ing downside risks, accord-
ing to Huang Yiping, chief
economist for Asia at Barclays
Capital.
“Th e risks may come from
a deteriorating European situ-
ation, which has been drag-
ging down US growth, and
less effective or insufficient
domestic policy support,”
Huang said.
Th e International Monetary
Fund said last week that Chi-
na’s economy will rebound in
the second half of this year to
expand 8 percent in 2012 as
government policies to spur
growth take eff ect.
Entrepreneurs in East
China’s Zhejiang province, a
regional export powerhouse,
remained concerned.
“There is no obvious sign
that the amount of orders
from European countries
will increase soon,” said Li
Zhongjian, the manager of
Wenzhou-based Zhejiang
Tung Fong Lighter Industrial
Co Ltd.
Overseas orders in July
fell by 20 percent compared
with June and are expected
to drop further in August,
Li added.
Large industrial enterprises
saw profi ts drop in June for the
third consecutive month amid
sluggish demand, NBS data
showed on Friday.
Many companies are seek-
ing to upgrade and streamline
operations but this has met
resistance.
Research conducted by
global consultancy com-
pany McKinsey & Company
found that only one third of
the companies succeed in
the endeavor, with resistance
from employees and outdated
management attitudes cited as
major obstacles.
“For example, in many
cases, it is not the technology
bottleneck but management
incapability that hinders the
upgrade of companies,” said
Zhang Haimeng, partner with
McKinsey in China.
China’s slower growth has
had consequences for Asia.
The Republic of Korea’s
exports declined sharply year-
on-year in July with consumer
prices increase at their slowest
pace in more than 12 years.
“Final manufacturing PMI
confirmed only a modest
improvement of manufactur-
ing conditions thanks to the
initial eff ect of the earlier eas-
ing measures,” Qu Hongbin,
chief economist in China with
HSBC, said.
Currently, the country’s job
market is facing increasing
pressures, highlighted by both
the offi cial and HSBC fi gures.
“As the labor market is a
lagging indicator of economic
cycles, a further deterioration
in employment conditions
remain possible,” a report
from HSBC said.
Th e government has been
aware of the potential risks
and started to take measures.
These include slashing
interest rates in July, for the
second time in a month and
lowering the amount of funds
banks must keep in reserve.
At a key meeting attended
by the top leaders on Tuesday,
the government pledged to cut
taxes and maintain moderate
credit growth while beefi ng up
support for major projects and
implementing policies that
allow private capital to play a
bigger role.
A research note from Bar-
clays Capital said that the
central bank is expected to
cut interest rates in the third
quarter.
Contact the writers at chen-
jia1@chinadaily.com.cn,
weitian@chinadaily.com.
cn and yuran@chinadaily.
com.cn
AFP contributed to this story.
PMI: Companies seek
to upgrade operations
Record: Ye declared clean by Olympic drug body
around china
Slideshow: A selection of the
best celebrations by medal-
winning athletes at the London
Games.
Video: Olympic swimmer Jiao
Liuyang talks at the team’s
training center in London about
her biggest opponent in her
hunt for gold in the 200m but-
terfl y fi nal — herself.
Bilingual: Performers from the
London 2012 opening ceremo-
ny are “cashing in” by selling
props and costumes online for
thousands of pounds.
Hot Words: Learn the term
“gold obsession” and how to
use it in our language tips.
On China Forum
http://bbs.chinadaily.com.cn/
Discussion: What if Bruce Lee
had competed at the Olympics?
“Th e airport construc-
tion fee will not be
canceled.”
LI JIAXIANG, head of the Civil
Aviation Administration of China,
said on Tuesday the airport con-
struction fee will remain. The fee
is spent on construction, airline
subsidies, energy conservation,
training, equipment replacement
and technological development.
The public has questioned the
necessity of the airport con-
struction fee for many years.
QUOTABLE
ON THE WEB
Highlights from
chinadaily.com.cn
‘‘
THE NUMBER
Scan it!
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more on
chinadaily.
com.cn
FROM PAGE 1
“Nobody ever suspected oth-
er countries’ multigold winners.
Why doubt me? I just won two,’’
she said.
Ye’s counterpart Sun Yang,
who also made history by being
China’s fi rst male gold medal-
ist swimmer aft er winning the
400m freestyle, was quick to
off er his support.
Th e doubt is unfair and does
not take account of the eff ort
involved, he said.
The Americans can win
many gold medals without
being questioned, but we can’t,
he added.
Ye was tested and cleared by
the authorities.
Colin Moynihan, chairman
of the British Olympic Associa-
tion, told a news conference on
Tuesday that the World Anti-
Doping Agency (WADA) con-
ducted a test on Ye and it was
clean.
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