Jack Ma's Empire

Caijing Magazine
October 21

This September saw a new landmark event occur at Alibaba Group led by Jack Ma. Its 12,000 staff members moved into the company's new office building near Xixi Wetland, a famous scenic area boasting the first and only national wetland park in China.

Ten years ago, Ma established the company in Hangzhou, capital of south China's Zhejiang Province, as the country's biggest E-commerce corporation. In the following years, he explored businesses in fields such as finance, logistics, tourism and agriculture. In addition, Yunfeng Capital, which Ma jointly established with other investors, has stretched its antennas to entertainment, media and even the gene field. Ma is undoubtedly one of the most outstanding businessmen in China. As the idol of Alibaba, he has said on many occasions that what he expected was not an empire, but an ecosystem.

He once admitted that he was bad at dealing with public relations and tries to keep close ties with the government. But this can't necessarily ensure him financial success. His ambition for the finance industry might be one of his hidden weaknesses, according to outsiders. Although he has repeatedly said that Alibaba won't establish banks, its new products do seem to be heading in that direction.

Ma is drawing increasingly closer to state-owned capital, which could bring new variables to his empire. Trouble could easily arise due to a bad relationship with state-owned shareholders.

Assault Against Doctors

people.com.cn
October 29

The assault of medical staff in Wenling, Zhejiang Province, on October 25, which killed one doctor and injured two, once again attracted national attention to doctor-patient conflicts.

Frequent assaults against doctors have made this profession dangerous. Doctors and patients should be allies in fighting illnesses instead of eyeing each other with suspicion. No matter how serious the conflict, resorting to violence can only make things worse. The assaults have caused extreme pressure on medical workers. According to a recent survey in China, 78 percent of participating doctors don't want their children to study medicine.

The tension between doctors and patients are closely related to the larger social background wherein trust among people deteriorates amid increasing violence and crime. But the sudden surge of assaults against doctors is a result of weak punishment against lawbreakers. It is therefore high time for the public security departments to deter such violence by heavily punishing assailants in accordance with laws.

Hospitals should further facilitate the channel of communication between doctors and patients, enabling patients to complain when problems occur.

Due to the professional nature of medicine, asymmetric information does exist between both sides. This conflict is even more severe in China. The major reason is the underdeveloped healthcare system. Medical resources are distributed in an unbalanced way, with 80 percent of patients in rural areas and 80 percent of quality medical facilities in cities. To eliminate assaults against doctors, medical reform is necessary.

Divorce Rate Increase

The Beijing News
October 30

Recently, the Beijing Municipal Bureau of Civil Affairs revealed that in the past three quarters, 39,075 couples registered for divorce in the city, up 41 percent compared to the same period last year and beyond the average figure for the last four years.

The rise is partly a result of government real estate regulations. In February 2013, the Central Government levied an individual income tax on gains from selling real estate at 20 percent. The Beijing Municipal Government specified that the transfer of a house that has been used over five years, and that is one's only residential property, is exempt from personal income tax. In this light, many families with two or more houses chose to avoid the tax via fake divorce. And Beijing is not the only city to see such a phenomenon. Quite a number of big cities have followed suit.

Although such an irresponsible attitude toward marriage should be condemned, it has revealed the irrationality of such a policy. To control housing prices through high taxes only increases transaction costs, and can't meet the increasing demand.

Getting Old Before Getting Rich

Oriental Outlook
October 31

China is the only country in the world that has an aging population of more than 100 million. Statistics show that the population of the elderly reached 194 million in 2012, and the number is expected to exceed 200 million in 2013 and 300 million by 2015.

Officials of the Ministry of Civil Affairs said that affected by factors such as longer life expectancy, sustained low birth rate, rapid urbanization and three baby booms, the pace of entering an aging society is speeding up and posing a big challenge to the country. China will become one of the countries with the heaviest burdens to provide for the aged.

A shortage in pension funds has developed over the past 30 to 40 years, which might take a similar amount of time to rectify. Reform of old age security has become a heated topic. Recently, the debates are centering on the suggestion of delaying retirement. And this suggestion has received mixed reactions.