New Development in Kashgar

Oriental Outlook
October 24

In Kashgar, an inland city in northwest China's Xinjiang Uygur Autonomous Region, two 58-story tall towers will be constructed and crowned the highest buildings in Central Asia.

The highest building in a province usually tends to stand in the provincial capital, highlighting its importance in promoting the economy and development. Kashgar is an exception to this, much like Shenzhen in south China's Guangdong Province.

Like Shenzhen, Kashgar is to be developed into a "special economic development zone," and is expected to grow into the economic engine of Xinjiang. Kashgar may even potentially become the economic center of Central Asia as a whole in the next 20 years, revitalizing and even surpassing the economic benefits brought by the Silk Road 1,000 years ago.

These tall buildings in Kashgar are only part of the latest developments in the city and the rest of the region. Over the past three years, the local governments of Kashgar and Shenzhen joined forces in infrastructure developments in areas such as land, communications, city planning and industrial development. This was followed by a huge inflow of capital. Together, they generated an economic growth rate exceeding 20 percent.

In Kashgar, there is a "gold rush" atmosphere like that in the air of Shenzhen in the early 1980s. New opportunities are everywhere, as long as you are brave enough to take risks.

Genetically Modified Foods

ynet.com
October 21

On October 19, more than 300 people attended the First National Gold Rice Tasting at Huazhong Agricultural University in Wuhan, capital of Hubei Province, with volunteers savoring the genetically modified product. Earlier in July, 61 Chinese scholars signed a petition to state leaders, requesting the government to promote industrialization of transgenic rice.

However, the event also aroused anxiety among citizens opposed to genetically modified food. The government needs to respect people's right to question such produce, guarantee their right to refuse it, and promote diversified consumption.

Food safety is a significant issue. It is normal to be suspicious of unfamiliar, genetically modified products. The public needs to know exactly what genetically modified technology and processing entail, as informed by government departments and scholars.

With regards to the public right to refuse potentially unsafe genetically modified food, authorities should clearly label such products to ensure awareness. If people have sufficient choice in terms of what they eat, anxiety would fade.

Heating Fees

Xi'an Evening News
October 21

With temperatures falling, most of north China will soon enter the heating season. However, as coal prices have dropped since last year, many wonder why heating fees remain the same.

It can't be denied that labor, transportation and environmental management costs have risen, but coal prices, which account for 65 to 75 percent of the total heating figure, have dropped dramatically.

With the upgrading of heating facilities, labor costs have largely declined. In turn, ongoing urbanization has expanded heating areas, which means bigger profits for suppliers. Therefore, high fees are absurd.

Heating suppliers are public utility enterprises and need to operate out in the open. On the one hand, their services influence people's daily life while their fees are usually decided by the government. On the other hand, such enterprises in many cities receive financial subsidies. Thus, heating enterprises should take responsibility for making their use of subsidies clear. Therefore, it is urgent to promote cost transparency among public utility enterprises.

The War on Milk Powder

Caixin
October 14

China's Ministry of Industry and Information Technology (MIIT) issued a document in May on improving the quality of milk powder and boosting consumer confidence, sending a message of support for China's domestic milk powder. The State Council held a special meeting on improving quality and safety checks for infant milk formula in the month, the results of which are expected to be used as springboard for the rebuilding of domestic milk powder brands. It was also put forward in the meeting that the merging and reorganization of the dairy industry must be carried out.

In June, the MIIT clearly expressed support of mergers and acquisitions between dairy producers. The Ministry of Agriculture also announced subsidies for cow pastures that would be transferred to milk powder companies.

In July, China's Development and Reform Commission launched an anti-monopoly investigation against milk powder manufacturers. During August and September, the Ministry of Commerce began to encourage the sale of milk powder in drugstores, with new market access regulations and standards being set up. These actions gradually made clearer and clearer the authority's stance: to curb foreign milk powder brands that possess 75 percent of the Chinese market, to shake off small and medium-sized domestic dairy producers and to support big domestic milk powder brands.

Due to the melamine incident, China's dairy industry, particularly the infant milk powder sector, has suffered from consumer distrust for more than five years. How many dairy producers see a new era? The final say depends on the market.