FM VISITS SE ASIA
South China Sea issue
on minister’s agenda > p22
CROSS-STRAITS TALKS
Key agreements signed
> NATION, PAGE 4
STEP BY STEP
Tibetan artist explores
his culture through dance
> SPORTS, PAGE 18
chinadaily.com.cn RMB ¥1.5FRIDAY, August 10, 2012
CHINADAILY
COVER STORY
Down to downtown
Education, welfare and qual-
ity of life are just a few of the
reasons people move from the
suburbs to downtown. > p6
NATION
Bogu Kailai on trial
Bogu Kailai stands trial in
the Hefei City Intermediate
People’s Court. > p3
High price
Suspects face trial for allegedly
helping a teenager sell his kid-
ney for an iPhone and iPad.
> p4
BUSINESS
New deals
Private sector gets boost as
government off ers new oppor-
tunities.> p14
LIFE
Shanghai picture
Chinese-American fi lmmaker
Janet Yang stirs a cocktail of
expatriate-in-Shanghai mate-
rial into a comedy of cultural
errors. > p19
IN THE NEWS
In this issue
NATION ..................................2-5
COVER STORY ........................ 6
COMMENT ................................ 8
SPORTS ............................... 9-12
BUSINESS ............. 13, 14, 16, 17
LIFE ..................................... 18-21
WORLD ..............................22, 23
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© 2012 China Daily
All Rights Reserved
Vol. 32 — No.10068
CPI TREND
Jan
2011 2012
Feb Mar Apr May JunJul JulAug Sep Oct Nov Dec
7 %
5
3
1
Source: National Bureau of Statistics SHEN WEI / CHINA DAILY
6.5 6.2 6.1
5.5
4.2 4.1
4.5
3.2 3.6 3.4 3
2.2 1.8
By QU YINGPU, ZHAO
HUANXIN and HE DAN
Fan Xiaojian has a head for
numbers and he counts on
them to tell a story that adds
up to success and continuing
challenges.
Th e top offi cial in charge of
poverty reduction in China
has fi gures on hand to depict
the other side of the world’s
second-largest economy.
“I’ve always found numbers
intriguing,” said Fan, an eco-
nomics graduate who has led
the State Council’s anti-poverty
drive since 2007. “Numbers do
not meander; they tell stories
directly.”
Fan, 59, can inform report-
ers straightaway that China
relocated 7.7 million people
from impoverished areas in the
century’s fi rst decade.
Th at fi gure almost matches
the combined population of
the two special administrative
regions of Hong Kong and
Macao.
He can also sum up the anti-
poverty achievements over the
past three decades by stating
that 250 million rural residents
have escaped poverty. That
number is roughly equal to
Indonesia’s population.
But of more immediate con-
cern, he can use numbers to tell
the story of the consequences
of the global downturn on
measures to tackle poverty.
The financial crisis that
started in 2008 has con-
demned 100 million more
people to destitution globally,
he said, quoting World Bank
statistics.
It has also taken a toll on
domestic anti-poverty eff orts.
About 3 million people were
taken out of poverty in 2008, a
fi gure similar to the 2000 level.
Impressive as this is, it still rep-
resents a setback.
“Between 2004 and 2007, we
lifted a whopping 10.89 mil-
lion out of poverty annually,”
Fan, chief of the State Council’s
Poverty Alleviation Leading
Group Offi ce, told China Daily.
Th e global economic con-
traction means that factories
in coastal regions feel the
brunt of the slowdown and
many workers have to return
to the interior.
Measures, especially to help
farmers, have been introduced.
Special poverty reduction
funds, nearly 33.2 billion yuan
($5.2 billion), have been allo-
cated this year, Fan said, adding
that this represents an increase
of 22 percent on last year.
Despite impressive econom-
ic growth, pockets of poverty
still remain, particularly in the
11 mountainous regions.
These include the Liupan
Mountains in the Ningxia Hui
autonomous region and the
Qinling-Bashan mountains.
They are isolated both geo-
graphically and economically,
according to Fan.
SEE “POVERTY” PAGE 3
Counting on success in poverty fi ght
EXCLUSIVE | FAN XIAOJIAN
EXCLUSIVE | THOMAS BACH
BIO
• Born in 1953, Fan Xiaojian
has been the director of
the State Council’s Pov-
erty Alleviation Leading
Group Offi ce since 2007.
• Fan was also vice-min-
ister of agriculture from
2000 to 2009.
• He was awarded a bach-
elor’s degree in econom-
ics at Jilin University in
1976.
• He is the fourth child of
renowned journalist, Fan
Changjiang.
EP
plores
gh dance
By ZHANG HAIZHOU
in London
zhanghaizhou@chinadaily.com.cn
If memories were awarded
medals, Thomas Bach would
give China a gold medal every
time.
Bach, vice-president of the
International Olympic Com-
mittee and 1976 Olympic fenc-
ing gold medalist, fi nished his
career in Shanghai in 1980.
He was in China at the time,
rather than defending his
medal, because of a boycott, by
some countries, of the Moscow
Olympics.
“Our Olympic committee
(West Germany) voted for a
boycott. I was representing the
athletes and wanted to take part
in the Games. We lost the battle.
Now everyone realizes that it
was absolutely useless. It did
not make one bit of diff erence
at all,” Bach, 58, said.
As “a kind of compensation”,
Bach said the national team
had a two-week tour to China
and took part in competitions
against fencers in Beijing,
Hangzhou, Kunming
and Shanghai.
“I’m happy to
report that I won the
last match.” It hap-
pened to be the last
of his career.
Sitting in a Park
Lane cafe 32 years
later, Bach recalled
Olympic stories and
shared his thoughts
on t he L ondon
Games.
He played down “specula-
tion” that he is the front-runner
to succeed current IOC Presi-
dent Jacques Rogge in 2013.
“It is an honor, on the one
hand, if people feel that you
may be capable. But on the
other hand, it is way too early.
I am very loyal to our president
and I think it would not be fair
to him, nor would it be fair to
the IOC, to start discussing his
succession now,” Bach said.
Th e current Games, he said,
are “the toughest”.
“You see new nations and
athletes from smaller nations
emerging and winning med-
als. This is great for
the globalization of
sport,” he said.
Bach also said it’s
impressive to see
China is “not concen-
trating only on the
traditionally strong
sports ... like gym-
nastics, table tennis
and badminton”.
He singled out Xu
Lijia, who won the
women’s Laser Radial class in
sailing, as an example of China
“embracing” more Olympic
sports, and off ered his support
to “young rookie” swimmer, Ye
Shiwen.
Ye, 16, won two golds in Lon-
don and slashed 5 seconds off
her personal best.
John Leonard, the execu-
tive director of the American
Swimming Coaches Associa-
tion, called the performance
“disturbing”. Ye denied that
she had used performance-
enhancing drugs and has never
failed a test.
SEE “SPORTS” PAGE 2
CENTER OF ATTENTION
PHOTO BY HOU YU / CHINA NEWS SERVICE
Journalists and sports fans greet badminton gold medalist Lin Dan at Beijing Capital International Airport on
Th ursday. See Games-related stories on pages 10-12.
China ‘embracing’ Olympic spirit
Thomas Bach is
vice-president of
the International
Olympic Committee.
PROVIDED TO CHINA DAILY
Reaching out: Residents form a chain as they negotiate fl oodwaters in Ningbo, Zhejiang
province, on Th ursday, aft er Typhoon Haikui lashed East China. > p5
By WEI TIAN
and DING QINGFEN
Policy fi ne-tuning should be
cautiously rolled out to prevent
a rebound in prices, experts said,
after inflation hit a 30-month
low in July and stoked specula-
tion of aggressive easing.
Meanwhile, the National
Development and Reform
Commission announced on
Thursday that the retail price
of gasoline would
rise by 390 yuan
($62), and diesel
by 370 yuan, a
metric ton from
Friday.
Th e consumer
price index, a major gauge of
infl ation, rose 1.8 percent year-
on-year last month, the slowest
pace since February 2010, the
National Bureau of Statistics
said on Th ursday.
Th e rate was 0.4 percentage
point lower than in June and
marked the fourth consecutive
monthly fall.
“The falling CPI increases
pressure on the government
to further loosen monetary
policy to restore growth,” said
Jin Linbo, vice-president of the
National Academy of Economic
Strategy at the Chinese Acad-
emy of Social Sciences.
“But this will not be an easy
job, as further easing, if not
appropriately applied, will lead
to a bubble. Authorities have to
be very cautious about each step
they take,” Jin said.
Chen Daofu, policy research
chief at the Financial Research
Institute at the State Council’s
Development Research Center,
said the government should
not rush into another interest
rate cut when inflation con-
cerns remain high among con-
sumers.
“A better choice would be
to lessen administrative con-
trols, such as further widening
the room for fl oating interest
rates.”
Th e People’s Bank of China,
the central bank, lowered inter-
est rates twice in the past two
months to bolster the world’s
second-largest economy,
which reported the slowest
expansion in three years in the
second quarter at 7.6 percent.
SEE “CPI” PAGE 2
CPI hits
30-month
low amid
easing calls
Rise in fuel prices announced as
growth measures loom on horizon
Inside
• Editorial,
page 8
• See more,
page 13
BEIJING
Railway quality
defects corrected
Quality defects found in 12
rail lines have been rectifi ed and
responsible departments had been
punished, the Ministry of Railways
said on Th ursday.
Th e ministry made the
remarks in response to recent
media reports, which said that
quality defects that could endan-
ger safety were found on 12 rail
lines. Seven of the 12 lines have
resumed services, including
high-speed passenger railways
between Wuhan and Guangzhou
and between Zhengzhou and
Xi’an.
Th e problems were discovered
during routine inspections, and
the current high-speed lines in
operation are safe, the ministry
said.
Draft health rule
targets privacy
Health departments should
protect patients’ privacy and
refrain from leaking their person-
al information and related mate-
rial, according to a draft regula-
tion published on Wednesday.
Th e draft amendment to the
Tuberculosis Prevention and
Control Regulation, formulated
by the Ministry of Health, was
published on Wednesday on the
website of the Legislative Aff airs
Offi ce of the State Council for
public comments.
Health departments can obtain
information from organizations
and people and carry out location
inspections, to help prevent TB
and aid its treatment, but should
also heed patients’ privacy, accord-
ing to the draft .
Heroes deprived
of rewards
Donations to the 152 migrant
workers who saved people on the
Nangangwa section of Beijing-
Hong Kong-Macao Expressway
during the July 21 torrential rain in
Beijing are allegedly having their
reward withheld by their employ-
er, the Beijing Times reported.
Philanthropist Li Chunping and
the Tencent Fund gave 304,000
yuan ($47,796) and 150,000 yuan
respectively to those workers as a
reward for their heroic service. Th e
workers received the contributions
on July 28 and had a dinner with
Cui Yongyuan, the famous host
from China Central Television,
two days later.
However, their employer, the
Fengtai Hexi Water Recycling
Plant, soon forced them to hand
over the money, the workers said.
Sun Long, from the plant,
responded by saying that manage-
ment is merely holding onto the
money to make sure the workers
stay, and that they have promised
to return the money later.
GUANGDONG
Province may pilot
two-child policy
Guangdong province will pilot a
two-child policy in the near future,
Zhang Feng, former director of the
Guangdong Population and Fam-
ily Planning Commission, said on
Wednesday.
Zhang revealed in March,
while he was still director, that the
South China province is working
to get permission to start a policy
that allows couples to have two
children as long as one is the only
child of his or her parents.
National policy states that only
couples who have urban residen-
tial permits and who are both only
children can have a second child.
Couples with rural residence reg-
istration can have a second child if
their fi rst child is a girl.
SHANGHAI
Planes collide on
airport ground
Two airplanes collided in
Shanghai Pudong International
Airport on Th ursday aft ernoon,
the publicity department of
Shanghai government said on
Th ursday.
Flight MU583 of China Eastern
Airlines and MH389 of Malaysia
Airlines crashed on the F9 track at
4:28 pm, according to the micro
blog of the publicity department of
Shanghai.
Th e crash caused slight dam-
age to both airplanes, local media
reported. Both fl ights were
delayed.
HEBEI
Great Wall collapses
after heavy rain
Repair work is under way on a
section of the Great Wall in North
China’s Hebei province that col-
lapsed aft er days of continuous rain,
local offi cials said on Th ursday.
Th e collapse occurred on Mon-
day, when strong currents of water
from the mountains damaged the
Dajingmen section of the Great
Wall in Zhangjiakou following
several days of rain, an offi cial with
the city’s Qiaoxi district said.
Experts have cleared the fallen
section, which extends 36 meters,
and reinforced other loose sections
to prevent further collapses. Cracks
were also spotted in other parts of
the wall near the damaged section.
HONG KONG
Astronauts thank
HK residents
Th e three astronauts in China’s
fi rst manned space docking mis-
sion have sent a thank-you note
to Hong Kong ahead of their four-
day visit starting Friday, according
to the city’s government news
website.
Th e message, signed by Shen-
zhou IX astronauts Jing Haipeng,
Liu Wang and Liu Yang, sends
greetings to the Hong Kong
people and thanks them for their
support for the country’s space
program.
CHINA DAILY—XINHUA
FROM PAGE 1
However, a recent report by
the central bank said the mar-
ginal eff ect of policy relaxation
is declining and it could lead to
a rebound in infl ation.
“Bank reserve cuts and open
market operations will be the
main tools adopted in the near
future,” Chen said.
Liu Ligang, head of China
economics studies at the Aus-
tralia and New Zealand Bank-
ing Group, estimated that
bank reserve requirements
will be cut this month, and two
more cuts are likely this year.
“Although there are still
possibilities for further inter-
est rate cuts, it might not be
the best medicine for a cooling
economy,” Liu said, explain-
ing that the economy will face
even bigger challenges if inter-
est cuts lead to a rebound in
housing prices.
“Retreating CPI in the short
term doesn’t rule out long-term
inflationary pressure,” said
Zhang Monan, an analyst with
the State Information Center.
“Structural infl ation, pushed
up by the re-evaluation of assets
and rising labor costs, contin-
ues to pressure companies and
consumers,” she said.
In a breakdown of July’s
index, food prices, which
account for nearly one-third of
the CPI, edged up 2.4 percent
from a year ago, compared
with 3.8 percent in June.
The increase was mainly
driven by vegetable and fruit
prices, as rain and flooding
aff ected production in many
areas in the traditional peak
supply season. Pork prices saw
a rise of 18.7 percent year-on-
year.
Meanwhile, charges for
domestic and maintenance
services went up 10 percent
year-on-year.
Transportation and com-
munication are the only cat-
egory in the basket to see their
prices fall from a year ago. Fuel
prices were down 4.4 percent
year-on-year aft er three price
cuts this year.
Shrinking demand
Cooling infl ation was also
a reflection of shrinking
demand in the real economy,
as companies struggling with
overcapacity and falling prof-
its, have to lower, or slow the
growth of, product prices.
Th e producer price index, a
main gauge of infl ation at the
wholesale level, fell 2.9 percent
in July from a year earlier. Th is
marked 12 months of consec-
utive declines.
But Zuo Xiaolei, an econo-
mist with Galaxy Securities
said “retreating infl ation isn’t
equal to deflation”, allaying
concerns over defl ation.
“As long as the growth goal
(7.5 percent) is achieved, there
won’t be defl ation,” she said.
Lian Ping, chief economist
with the Bank of Communi-
cations, said the risk of infl a-
tion still outweighed that of
defl ation.
“The policy stimulus and
change of local governments
may lead to a new round of
investment fever, which will
boost prices.”
Fixed-investment growth
was 20.4 percent in the first
seven months, according to
the National Bureau of Sta-
tistics. And “investment will
still be the key driver for a very
long time”, said a report by the
Chinese Academy of Social
Sciences.
A report by the China Mer-
chant Securities estimates
that infl ation will stand at 1.9
percent in the third quarter
and 2.5 in the fourth, with the
yearly fi gure below 3 percent.
Contact the writers at
weitian@chinadaily.com.cn
and dingqingfen@chinadaily.
com.cn
24 / 28
24 / 28
27 / 29
26 / 30
24 / 31
24 / 31
24 / 31
24 / 32
24 / 29
24 / 30
25 / 35
25 / 33
24 / 33
24 / 33
26 / 31
26 / 31
23 / 27
23 / 29
28 / 32
27 / 31
22 / 31
22 / 32
25 / 31
25 / 31
27 / 32
27 / 31
25 / 35
26 / 34
10 / 21
7 / 17
25 / 35
25 / 35
FRIDAY
SATURDAY
22 / 33
23 / 30
20 / 30
17 / 25
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 10-11FRI - SAT
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 10 / 16 O 11 / 15 C
Chicago 18 / 25 C 18 / 27 S
Caracas 18 / 29 C 18 / 27 T
Houston 23 / 38 S 24 / 38 S
Las Vegas 25 / 36 S 24 / 35 S
Los Angeles 16 / 21 S 15 / 21 S
Mexico City 12 / 27 T 12 / 27 Sh
New York 22 / 30 C 20 / 28 Sh
Ottawa 19 / 25 R 17 / 23 T
Rio De Janeiro 20 / 26 T 18 / 24 D
San Francisco 12 / 19 S 12 / 20 S
Sao Paulo 14 / 27 Sh 14 / 26 Sh
Vancouver 14 / 20 C 14 / 19 S
Washington 24 / 31 C 21 / 30 S
Athens 24 / 33 S 23 / 31 S
Berlin 10 / 20 C 12 / 21 D
Brussels 10 / 18 C 11 / 19 Sh
Geneva 13 / 22 C 13 / 23 S
Istanbul 23 / 31 S 21 / 28 S
London 11 / 22 C 12 / 20 C
Madrid 17 / 34 S 18 / 34 C
Moscow 14 / 27 R 14 / 26 D
Paris 12 / 22 C 11 / 21 C
Rome 18 / 28 S 19 / 28 S
Vienna 13 / 20 S 13 / 23 S
CHINA
AFRICA
24 / 30
23 / 30
Cairo 24 / 33 S 23 / 34 S
CapeTown 8 / 20 S 6 / 20 C
Johannesburg 5 / 20 S 4 / 19 S
Lagos 22 / 26 C 22 / 27 C
Nairobi 16 / 22 Sh 16 / 22 Sh
Abu Dhabi 30 / 47 D 30 / 47 S
Bangkok 24 / 31 D 24 / 32 D
Colombo 25 / 31 Sh 25 / 31 Sh
Dubai 34 / 40 C 34 / 40 C
Hanoi 25 / 35 T 25 / 33 Sh
Islamabad 24 / 32 T 21 / 30 D
Jakarta 24 / 28 Sh 24 / 28 S
Karachi 28 / 34 C 28 / 32 Sh
Kuala Lumpur 24 / 31 T 24 / 31 T
Manila 22 / 31 T 22 / 32 Sh
Mumbai 24 / 31 T 24 / 31 T
New Delhi 25 / 35 T 25 / 33 Sh
Pyongyang 24 / 30 Sh 23 / 31 C
Riyadh 29 / 45 C 29 / 45 C
Seoul 24 / 30 D 23 / 30 O
Singapore 27 / 29 Sh 26 / 30 C
Sydney 7 / 16 C 7 / 16 T
Teheran 26 / 35 T 26 / 35 Sh
Tokyo 24 / 33 T 24 / 33 O
Wellington 5 / 15 O 6 / 14 O
Yangon 24 / 29 T 24 / 30 T
Beijing 22 / 33 S 23 / 30 C
Changchun 16 / 28 C 15 / 25 T
Changsha 26 / 32 D 26