China Charged for Vitamin C

Caixin Century Weekly

April 8

The Brooklyn Federal Court of the New York State ruled on March 14 that two Chinese vitamin C producers pay $153 million in fines for colluding to raise prices for exports to the U.S. market and limit exports of raw vitamin C between December 2001 and December 2006, which is illegal under the U.S. anti-trust law.

China has issued a declaration stating that the verdict of the U.S. court was unfair. The two Chinese companies have announced plans to appeal. If they fail, however, they will have to pay around 1 billion yuan as compensation.

Vitamin C produced by China has occupied more than 80 percent of the U.S. market share for a long time. Since 2001, the China Chamber of Commerce for Import & Export of Medicines and Health Products, which is affiliated to the Chinese Ministry of Commerce (MOFCOM), has convened Vitamin C producers to set prices and limit production.

During the eight-year lawsuit, MOFCOM has briefed the court on three occasions to clarify that the Chinese companies involved acted according to official requirements. This was an attempt to exempt local enterprises from legal responsibilities under the principle of state immunity and enable Americans to understand the complexity of China's transition from a planned economy to a market one. Government control of the economy, which is normal in China, has formed the main reason for the huge fines.

Appraising Ecology

Outlook Weekly

April 15

Discussions on ecological progress have been increasingly hot and the endeavor to build a beautiful China has carried much public anticipation.

However, the reality is not optimistic. With continuing economic development, the conflict between humans, resources and the environment is increasingly poignant. On the one hand, the country is facing difficulties transforming its economic growth model and adjusting its economic structure; on the other, air and water pollution are frustrating the public.

For a long time, the environment has been deteriorating, a heavy price that China has paid for its fast economic progress. Under such situations, building a beautiful China is not only the country's blueprint, but also meets the urgent needs of reality. At present, the solution is to include resource consumption, environmental damage and ecological benefit into the economic and social evaluation system.

The system that measures official achievements by the GDP should be broken. Only if ecological progress is considered, can the economic development model be transformed fundamentally.

People not only want to enjoy abundant material wealth, but also want to drink clean water, eat safe food and breathe fresh air. Their need for the latter is even stronger than the former.

In addition, it should be noted that realizing ecological progress is not only a government responsibility but also one of enterprises, citizens and social organizations. Only if the call for low-carbon travel and resource saving is turned into individual, concrete action can a real beautiful China be built.

Poisoning Tragedy

The Beijing Times

April 17

Shanghai police have detained a postgraduate student, surnamed Lin, of Fudan University, after his roommate was found poisoned by water from his room's drinking dispenser. With investigations still underway, the true cause of the incident remains unclear.

If found guilty, Lin will face dire consequences while his family bares the brunt of society's ridicule. Many have blamed the so-called "failure of the Chinese education system" for the suspected murder.

It is conjectured that, while academic performance is often overemphasized, little attention is paid to personality and moral schooling.

Personal gain and fierce competition currently underscore psychological problems among students, making it difficult for them to deal with interpersonal relationships and associated fall-outs.

Entrance Fee to Ancient Town

Workers' Daily

April 17

Fenghuang Ancient Town, also known as Phoenix City, a tourist attraction famous for its outstanding natural beauty and primitive architecture in central China's Hunan Province, recently introduced a visitor charge of 148 yuan ($23.50). The policy has triggered much anger among tourists. In the past, entrance fees were limited to only a few scenic spots and not the entire city. Local shops have also expressed dissatisfaction, arguing that charges might affect visitor numbers to the area and subsequently business. However, the local government has argued that the entrance fee will generate revenue, which can be invested toward improving the local environment, the standardization of the tourism market and the prevention of unjust competition.

While Phoenix City is not the first to charge tourists, protecting public interests has become a key concern, especially since no one was consulted before the fee was introduced.

Besides, past experience tells us that an increase in fee charges or fines seldom leads to a fundamental solution to environmental protection.

The truth is that during February, the local government set up a joint tourism management business with a local firm, with a share holding of 49 percent. Thus, for every 148 yuan ticket that sells, the local authority pockets 60 yuan ($9.52).

The commercialization of tourism resources has been a growing concern in recent years. While some companies and local governments are making money, public interests have taken a backseat.