Digest

Institute reaches out to private firms for funds

The Confucius Institute, the rapidly expanding Chinese-language instruction and cultural organization, is discussing how to raise more financial support.

The feasibility of establishing a Confucius Institute Alumni Association and a Confucius Institute Foundation were discussed at the ninth Confucius Institute Conference in Xiamen, Fujian province on Dec 8.

"We plann to start establishing an alumni association - allowing people from all walks of life to give their support to us," said Xu Lin, chief executive of the Confucius Institute headquarters.

In November last year, the Third Plenary Session of the 18th Central Committee of the Communist Party encouraged social organizations and Chinese-funded institutions to get involved in the development of Confucius Institutes. Regulations on financing for the institute were eased.

"Some Chinese companies such as Kweichow Moutai Group, Hainan Airlines and CITIC Group have expressed interest in supporting Confucius Institutes," Xu said.

China sends water and supplies to Maldives

A Chinese navy ship and two air force jets brought fresh supplies to to the Maldives on Dec 8 as the Indian Ocean archipelago battles a water shortage.

A navy supply ship docked in the capital after a 50-hour journey after two aircraft from the People's Liberation Army's air force landed with 40 metric tons of fresh water.

The Changxingdao dropped anchor in Male and immediately started to pump drinking water to the residents, who had not had tap water since Dec 4, when a fire knocked the treatment plant out of service.

China had already sent 20 tons of bottled drinking water on two flights on Dec 6. In addition to fresh water, the ship also has on board desalination equipment that can treat seawater to make it drinkable.

Economists call for increased public spending

Economists called for more proactive fiscal policies to counter a deepening slowdown in growth before China's annual Central Economic Work Conference ended on Dec 9.

The meeting sets the tone for next year's macroeconomic policy. Gao Peiyong, director of the National Academy of Economic Strategy, part of the Chinese Academy of Social Sciences, told a recent forum that a larger budget deficit is likely.

Assuming 7 percent GDP growth next year, Gao said, the deficit would be between 1.35 trillion ($220 billion; 176 billion euros) and 1.9 trillion yuan.

China set a 1.35 trillion yuan fiscal deficit target for this year, about 2.1 percent of GDP, still modest compared with international standards that is 150 billion yuan more than last year.

Li Xunlei, chief economist at Haitong Securities, expects the deficit ratio to rise to 1.7 trillion yuan, or 2.5 percent of GDP.

Xu Gao, chief economist at Everbright Securities, argues that the country's fiscal policy could be bolder, with a deficit of at least 2 trillion yuan.

New Long March rocket on drawing board

China is conducting preliminary research on a super-heavy launch vehicle that will be used in its manned missions to the moon.

"We are discussing the technological feasibility and requirements of the Long March-9, and research on the solutions to some technical difficulties have started," said Li Tongyu, head of aerospace products at the China Academy of Launch Vehicle Technology. "Its specifications will mostly be determined by a host of factors, including the government's space plan and the nation's overall industrial capability, as well as its engine's development."

The Long March-9's diameter and height will be much larger than those of the Long March-5, and its thrust will be much stronger, he said.

"Our current launch vehicles, including the Long March-5, which is set to conduct its first launch soon, will be able to undertake the country's space activities planned for the coming 10 years, but for the nation's long-term space programs their capabilities will not be enough," he said, emphasizing the necessity and significance of a super-heavy rocket.

Top ruling body calls for 'new norm' in economy

China must adjust its economy to a new norm and keep economic growth within a reasonable range, a top ruling body said on Dec 5, indicating that the growth target for next year could be lowered.

Assessing the country's economic situation, the Central Politburo of the Communist Party of China said the country has entered a new norm, with good resilience, huge potential and plenty of room for the government to maneuver.

A statement issued after the meeting said China will continue to combine "stabilizing growth" and reform and adopt an active fiscal policy and prudent monetary policy.

The meeting, held before the annual Central Economic Work Conference, provided insight into the top leadership's thinking on next year's economic agenda.

Analysts said the emphasis on a "new norm" suggests the top leadership will accept a lower GDP growth target next year, while placing more emphasis on structural reform.

"They have to set a lower target, given the reality. I think it could be around 7 percent, lower than the target of around 7.5 percent for 2014," said Zhou Jingtong, a researcher at the Institute of International Finance, part of the Bank of China.

Flexibility pledged for grain imports to ensure food security

China will continue to increase the flexibility of its grain imports, national agricultural officials said on Dec 5.

It will buy adequate amounts of cereal and cultivated crops from global markets at lower prices to ensure grain supply security, they said.

The nation imported 72.49 million metric tons of cereal, including soybeans, rice, corn and wheat, between January and October, an increase of 19 percent year-on-year, said the General Administration of Customs.

Bi Meijia, spokesman and chief economist at the Ministry of Agriculture, said China will not depend solely on the international market to fill its rice bowls.

China Daily

(China Daily European Weekly 12/12/2014 page3)