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GDP growth rate rose by 7.4 percent in 2014

China's economy grew by 7.4 percent in 2014, the weakest expansion in 24 years, the National Bureau of Statistics said on Jan 20.

The figure was slightly below the government target of about 7.5 percent for the year.

Authorities are striving to put the economy on a more sustainable path while tackling a housing slowdown, softening domestic demand and a weak global recovery.

But GDP exceeded $10 trillion for the first time last year, with a contribution of 48.2 percent, or 30.7 trillion yuan ($4.9 trillion; 4.3 trillion euros), from the service sector, the bureau said.

The service sector was the largest GDP contributor for the second consecutive year, with the proportion increasing from 46.9 percent in 2013.

"Economic structural rebalancing is progressing steadily," said Ma Jiantang, director of the statistics bureau.

Fine-tuning economic policies is possible in the future to stabilize growth, he added.

The statistics bureau said the 7.4 percent year-on-year GDP growth, down from 7.7 percent in 2013, saw a contribution of 51.2 percent from spending on consumption, up from 48.2 percent in 2013.

Anti-graft has sights on Macao casinos

China will more closely watch for assets that corrupt officials transfer abroad illegally through gambling houses in Macao, the Ministry of Public Security said on Jan 20.

"Once a suspicious flow of capital being sent overseas through casinos is discovered ... the People's Bank of China will inform us quickly and provide intelligence for us to conduct further investigations," a senior official from the ministry said.

The South China Morning Post in Hong Kong reported that ministry officials will travel to Macao to meet with directors from Macao's financial supervisory authority and bankers to discuss combating the laundering schemes.

In recent years, many corrupt Chinese officials have transferred their assets acquired illegally to overseas destinations through money laundering and some underground banks, including through Macao casinos.

They have then fled, often to the United States, Canada and Australia, to avoid punishment.

According to the Macao Financial Intelligence Unit, from January to June 2013, the city's gambling industry received more than 900 reports of suspicious activity, an increase of more than 31 percent compared with 2012.

ISIS group asks $200m for Japanese hostages

An online video released on Jan 20 purported to show the Islamic State group threatening to kill two Japanese hostages unless a $200 million ransom is received in the next 72 hours.

The video, identified as being made by the group's al-Furqan media arm and posted on militant websites associated with the extremist group, mirrored other hostage threats the group has made.

The militant featured in the video directly addresses Japanese Prime Minister Shinzo Abe, who is on a six-day visit to the Middle East with a delegation of more than 100 government officials and business executives.

In the footage, a black-clad militant brandishing a knife addresses the camera in English, standing between two hostages wearing orange jumpsuits.

"You now have 72 hours to pressure your government into making a wise decision by paying the $200 million to save the lives of citizens," he says.

The militant says the ransom demand is to compensate for nonmilitary aid that Abe pledged to support the campaign against ISIS on the Middle East tour. The Japanese government said it is investigating the threat.

Medical team returns after battling Ebola

After traveling for more than 20 hours, the first team of military medical workers dispatched to Liberia to help fight Ebola returned to Chongqing on Jan 16.

The Chinese military medical rescue team completed two months in Liberia, which was hit hard by the Ebola virus. The team comprised 82 medical experts, doctors and nurses. After undergoing a disinfection treatment and inspections, the medical workers disembarked from their plane wearing masks.

For safety concerns, they are not allowed contact with others but will live in isolation under medical observation for 21 days before reuniting with their families.

"Our medical workers are the pride of Chinese soldiers," said Gao Zhanhu, political commissar of the Hospital Affiliated to the Third Military Medical University. "They traveled far to Liberia to help stop the rampant virus without thinking of their own safety."

The first Chinese medical workers arrived in Liberia on Nov 15. Just 10 days later, an Ebola treatment center established by Chinese health workers began operations.

Nation gives all civil servants salary hikes

China sharply raised salaries for public employees this year after a yearslong salary freeze and a raft of government officials leaving their jobs.

It is the first time since 2006 that civil servants have received a salary raise. The Ministry of Human Resources and Social Security said on Jan 19 that the three notices issued on Jan 12 cover all civil servants.

The basic monthly salary for national-level officials, including President Xi Jinping and the members of the Standing Committee of the Political Bureau of the CPC Central Committee, will rise by about 60 percent, from 7,020 yuan ($1,130; 975 euros) to 11,385 yuan.

Salaries for the lowest-level civil servants will rise from 630 yuan to 1,320 yuan.

The basic salary is only one part of a Chinese civil servant's monthly salary. Allowances are also given according to duties and work positions.

Anti-graft to target city-level officials

President Xi Jinping told Party committees on Jan 20 to support and create a favorable environment for judicial departments in the fight against corruption.

Xi told officials from legal affairs departments to strengthen Party discipline and prevent judicial corruption. On Jan 19, the country's top anti-graft watchdog said it would intensify anti-corruption efforts to net more lower-level government officials.

The Central Commission for Discipline Inspection said it will target city-level officials this year. The commission also urged more reform to the Party's disciplinary mechanism, signaling bolder moves in the crackdown on corruption this year.

Decline in home prices continues to level off

Fewer cities saw falling home prices in December, the National Bureau of Statistics said on Jan 18.

Prices of new homes dropped from the previous month in 65 of 70 cities that the bureau tracks. That compares with declines in 67 cities in November.

New home prices rose 1.2 percent in December in Shenzhen, Guangdong province, the only city among the 70 that saw a month-on-month price increase. It is the first time in four months that an NBS-tracked city saw an increase.

"Behind this is the accelerated inventory reduction that has cut developers' incentive to boost sales with lower prices. Some even began to raise their prices," said Yan Yuejin, an analyst with E-house China R&D Institute.

Nation pushes for renewable energy

China is the world's leader in renewable energy generation, which will allow it to reduce its dependency on coal power and cut carbon emissions, claims a senior energy official.

By the end of 2014, China had installed 430 million kilowatts in total renewable energy power generation, according to the National Energy Administration, the nation's top energy planner.

That is up from only 52 million kW in 2011 and represents an increase from 4.8 percent of total power generation capacity to 32 percent, according to data from the China Electricity Council.

Oil prices have been declining in recent months. Global crude prices have dropped by more than 55 percent to below $50 a barrel since June, resulting in financial difficulties for many energy developers.

(China Daily European Weekly 01/23/2015 page2)