IN BRIEF (Page 3)

Regulation

Rule passed to help lure talent

A regulation covering foreigners entering and leaving China was adopted at a meeting of the State Council on July 3.

The regulation will facilitate trade and investment, boost tourism and help attract talent that the country needs, a statement issued after the meeting said.

The regulation, details of which are not known, is believed to be supplementary to the Exit and Entry Administration Law, which took effect on July 1

The meeting also concluded that central government departments should rectify problems revealed by the National Audit Office recently and cut unnecessary public expenses.

On June 27, the audit office submitted the 2012 audit report to the top legislature. This said that nearly 5.8 billion yuan ($943 million; 736 million euros) allocated for low-income housing projects was embezzled last year.

The problems must be rectified quickly and in a comprehensive and transparent manner, as they are related to the government's image, the meeting decided.

Finance

Guideline issued to stabilize capital flows

A specific guideline to stabilize capital flows was issued by the central government on July 5. It particularly encourages more private funds to take part in reform of financial institutions at various levels.

The State Council, or the nation's cabinet, says China's financial system and economy are "stable and sound", with risks under "good control".

To guarantee the efficient use of credit and to support rebalancing of the economy, the State Council guideline contains 10 key points. Some are:

To continue to pursue a prudent monetary policy to keep the money and credit supply at a reasonable level, and to gradually let the market decide interest rates.

To speed up reform in key industries and areas by imposing a strict curb on credit and direct financing for unapproved projects in industries suffering from overcapacity.

To support small businesses by mobilizing financial resources in different sectors of society, and accelerating securitization of credit assets.

Frankfurt joining race to become key yuan center

Frankfurt, the German financial capital, is joining the race to become a major offshore yuan trading hub in Europe as local financial institutions push for a potential currency swap agreement between the European Central Bank and the People's Bank of China.

Frankfurt Main Finance, a financial association that represents major German banks, is expecting the ECB to sign an 800 billion yuan ($130 billion; 101 billion euros) currency swap with Beijing, according to a Bloomberg report.

But both the ECB and the PBOC declined to comment on the currency swap when contacted by China Daily.

If the agreement becomes reality, it will dwarf the 200 billion yuan agreement signed by the Bank of England and the PBOC.

"The fact that about 10 percent of Sino-German trade is handled in renminbi shows the opportunities for a yuan-trade center in Frankfurt," says Lutz Raettig, president of Frankfurt Main Finance.

While some market observers say that liquidity is one of the main hurdles for Frankfurt to develop its yuan-trading market, Raettig says that trading risk and hedging costs will drop significantly if the swap agreement is reached, which could lead to significant yuan savings and could further boost trade between Germany and China.

Transport

China and Pakistan sign agreement

China and Pakistan signed an agreement on July 5 on the blueprint for a huge transport project linking northwestern China to the Arabian Sea.

Observers say the project, named the China-Pakistan economic corridor, will open a new route for China's goods and energy.

It will also give a strong boost to Pakistan's economy and help maintain security there, they say.

The broad agreement was among eight pacts signed after a meeting at the Great Hall of the People between Premier Li Keqiang and Pakistani Prime Minister Nawaz Sharif.

The cost of the economic corridor project is not known at this stage.

The transport link is described as a "long-term plan" to connect Kashgar in the Xinjiang Uygur autonomous region to the southwestern Pakistani port of Gwadar, more than 2,000 km away across a mountainous area.

More cooperation on railway sought

Chinese and European senior officials have called for further cooperation through the Sino-Euro railway.

The 11,179-km Chongqing-Xinjiang-Europe railway connects Chongqing with Duisburg, Germany, via Kazakhstan, Russia, Belarus and Poland.

"I hope the Sino-Euro railway can extend to all 16 Central and Eastern European countries," said Huang Qifan, mayor of Southwest China's Chongqing municipality, at the Local Leaders' Meeting of China-Central and Eastern European Countries in Chongqing on July 3.

He said the customs departments of these countries should strengthen cooperation to shorten the time needed to process goods and thus save costs for transporting freight via the route.

Customs should work together and share information so freight owners can make only one declaration, have one inspection and one release, and avoid opening carriages at each customs stop, which is time-consuming, Huang said.

The Chongqing-Xinjiang-Europe railway has helped some businesses shorten transport times and save costs since it began operation in 2011, Huang said.

Employment

Job seekers abroad urged to be alert

Chinese people seeking employment abroad should sign proper contracts, receive safety training, research their destination countries thoroughly and only work through companies qualified to supply staff abroad, experts say.

Huang Leping, director of the Beijing Yilian Legal Aid and Research Center of Labor, an NGO dedicated to providing free legal aid for workers, suggested Chinese people planning to work overseas be cautious about employers or intermediary agencies that only give verbal promises about pay and benefits.

"Our workers are mainly sent abroad by Chinese companies that set up overseas branches or via intermediary agencies," Huang said. "Whatever the case, they should make sure that agreements about salary, rights and obligations are written into the contracts."

He also suggested workers choose to work for companies with licenses for foreign labor cooperation and sending workers abroad, because only qualified companies can go through the necessary procedures for obtaining work visas.

Test champs fleeing China for jobs abroad

More than 60 percent of gaokao champions in the past 60 years, especially those who studied science, went abroad after earning their bachelor's degree, with many never returning, indicating a serious brain drain among top scorers.

Experts say the phenomenon resulted from many reasons and factors.

"Some did not come back because of the climate or food security problems," says Zhao Deguo, chief editor of the website cuaa.net and a compiler of the report.

"Some believed that their career development would be better abroad, and there are also some struggling to stay abroad just because they are afraid of losing face if they come back."

The website, which provides information and services for alumni associations in China, tracked almost 2,000 gaokao champions from 1952 to 2012.

China Daily

(China Daily Africa Weekly 07/12/2013 page3)