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“Autos to the Countryside” Subsidy Program Started in March

Chinas “Autos to the Countryside” subsidy program started in March. The Revival Plan for the Auto Industry stipulates that from March 1 to December 31, 2009, the government will earmark RMB 5 billion for lump-sum subsidies to farmers who replace their three-wheel vehicles and low-speed trucks with lightweight trucks or minibuses with a displacement of less than 1.3 liters. That means for every fuel-efficient vehicle purchased by farmers, the government will provide a subsidy covering more than 10 percent of the vehicles cost. When combined with an earlier stimulus measure that cut purchase tax by half for vehicles with an engine capacity of less than 1.3 liters, the new subsidy provides considerable incentive for farmers to purchase new vehicles. The program will raise automobile consumption by at least 1 million vehicles during 2009, according to industry analysts.

Qinghais Hoh Xil Opens to Tourists

Hoh Xil Nature Reserve has formally opened to tourists. Nicknamed the “Kingdom of Animals,” Hoh Xil is one of the few regions in the world that has a virtually untouched environment. To ensure its preservation, the number of tourists allowed to visit the region will be limited to 1,000 per year, with each group capped at 15. Visitors will have the chance to appreciate the mysterious snow mountains and grasslands, learn about the areas rare species, experience mountain patrolmens life, and carry out various eco-friendly activities during their trip of five to six days. Tourists have to present a health certificate upon registering for a group, and must take a physical checkup at Golmud in Qinghai before leaving for the nature reserve. People suffering from high blood pressure and some other diseases are not allowed to join the tour groups.

Chinas 2009 Budget Deficit Will Be RMB 950 Billion

The Finance Ministry has foreseen a deficit of RMB 950 billion in its draft budget for 2009. The figure is a 3.5-fold increase on the RMB 280 billion the Ministry initially proposed, and will account for 3.1 percent of 2008s GDP. If realized, this years projected deficit will be the highest since the Peoples Republic was established in 1949. In the past few years, Chinas fiscal deficit has stayed below one percent of the countrys GDP. The 2008 deficit was RMB 111 billion. Even in 1998, when the country was seriously threatened by the Asian financial crisis, the Chinese government still kept its fiscal deficit between RMB 200 billion and RMB 300 billion. The government plans to cover the deficit by issuing treasury bonds. Many investment banks estimate that the Chinese government will issue RMB 1.5 trillion worth of bonds, or possibly even more, in 2009.

Centrally Administered SOEs Will Publish 2009 Annual Reports

In order to create a transparent system that allows the public to have access to enterprises financial information, and establish a state asset supervision and administration system for overseas State Owned Enterprises (SOEs), Chinas SOEs will publish their annual reports for the first time in 2009. At the same time, the central government will launch comprehensive monitoring of enterprises, in areas such as key decision making and important business operations, making the operation of centrally administered SOEs more transparent. According to statistics, from 2003 to 2007, the sales revenue of SOEs generally increased by RMB 2.2 trillion each year, with annual profits and tax payments going up by over RMB 270 billion and RMB 210 billion respectively. The sales revenue of centrally administered SOEs increased by RMB 1.3 trillion each year, with annual profits and tax payments rising by over RMB 150 billion and RMB 110 billion respectively.

Postgraduate Enrollment Expands

According to the 2009 postgraduate enrollment plan jointly issued by the Ministry of Education (MOE) and the National Development and Reform Commission, postgraduate student enrollment will be raised by 5 percent, or around 50,000 students. The enlarged enrollment is mainly aimed at final-year undergraduates who sat the national postgraduate entrance examination in January. Some analysts point out that although this plan will ease short-term pressure on the job market and help cultivate talent, postgraduates will potentially face an even more competitive job market once they finish their studies, as there will be larger numbers of highly qualified graduates looking for work.