IN BRIEF (Page 2)

Legal

Police get drug giant's help in bribery scandal

British pharmaceutical giant GlaxoSmithKline promised to cooperate with Chinese police in the investigation of an alleged bribery and drug pricing scandal after a representative of the head office met with a senior official from the Ministry of Public Security, the ministry said on July 22.

On July 21, a senior official from the ministry met with Abbas Hussain, president of Europe, emerging markets and Asia Pacific of Glaxo-SmithKline in Beijing, urging the company to cooperate with Chinese police in the investigation.

"We hope the Chinese branch of GlaxoSmithKline can resume production and operation as soon as possible," the ministry said on July 22.

According to the ministry, some senior executives from GlaxoSmithKline's Chinese company colluded with other enterprises to push up drug prices, expand sales and gain an unfair advantage.

Abbas Hussain apologized on behalf of the GlaxoSmithKline head office and said it fully supports the Chinese government's action to fight corruption and will support and cooperate with Chinese police in the investigation.

Economy

Economy improving in China's west

China's western region has become a growth engine for the country's slowing economy, but experts warn it has an unscientific industrial structure and a shortage of innovation.

In 2012, the region's gross domestic product increased by 12.48 percent year-on-year, much faster than in the eastern and central parts of the country and 2.16 percent age point more than the national average, according to a report on the development of the western region released on July 21.

The report also says the GDP of the western region accounted for 19.75 percent of the nation's total, an increase of 0.38 percent age point from a year earlier, helping the region further narrow the gap with the eastern region in terms of economic development.

Experts warn however that despite achievements in the region's economic growth and improvements in local education, environment and people's livelihoods after more than 10 years of development, the region is still relatively undeveloped.

"The inadequate industrial structure, shortage of innovation and international talent and a lower level of marketing are major problems that need to be solved soon," says Yao Huiqin, deputy director of the Center for Studies of China's Western Economic Development at Northeast University.

Minister rules out stimulus package

China has brushed off global concerns over its economic slowdown in the latest display of policymakers shifting focus from high growth to structural reforms.

The world's second-largest economy won't seek high growth for the sake of other nations, Finance Minister Lou Jiwei says, ruling out large fiscal stimulus measures to boost growth this year.

"Finance ministers from many other countries expressed their hopes of seeing a higher growth rate from China," he was quoted by Xinhua News Agency as saying on the sidelines of the G20 meeting of finance ministers and central bank governors in Moscow on Saturday.

He was referring to hopes voiced by some of his counterparts at the two-day meeting that China's economy could grow faster to stimulate global recovery.

"I told them 'do not think about it'. China is comfortable with the condition of its employment. I suggest they take care of their own needed work rather than counting on others," Lou says.

The risk of a hard landing of the Chinese economy is not on the horizon, according to Lou. "That issue is not on the agenda of the meeting as no participant even believes the risk exists," he says.

Shipping

Xi backs Yangtze 'golden water route'

President Xi Jinping called for increased cooperation among Yangtze River ports to transform the region into a "golden water route", during a surprise visit to the Yangluo Container Port, in Wuhan New Port, on July 21.

Photos showed him holding an umbrella, his trousers legs rolled up, during a downpour.

"We were not informed about President Xi's visit in advance, so our workers at the harbor were working as usual when he arrived," says Pu Jun, director of the publicity office of Wuhan Port Container Co Ltd in the Hubei provincial capital.

According to Pu, Xi was at the port for about half an hour, visiting the central control room and talking to the company general manager and a worker about logistics at the dock - even after his shirt got wet in the torrential rain.

Xi urged Wuhan New Port workers and officials to strengthen cooperation with other ports along the Yangtze River and build a "golden water route".

Environment

Nation pushes environment forward

Vice-Premier Zhang Gaoli on July 19 met four foreign leaders who will attend the opening ceremony of the Eco-Forum Global Annual Conference in Guiyang, capital of Guizhou province.

During the meeting with Swiss President Ueli Maurer, Dominican Prime Minister Roosevelt Skerrit, Tongan Prime Minister Siale'ataonga Tu'ivakano and Thai Deputy Prime Minister Nivatthamrong Boonsongpaisal, Zhang said the Chinese government attaches great importance to the environment.

China incorporates the concept of ecological civilization into economic, political, cultural and social development, said the vice-premier.

He added that China hopes to use the forum to popularize the concept of ecological civilization, promote international cooperation, jointly work to fight climate change and push forward global sustainable development.

Expert praises action plan for pollution

The central government's upcoming action plan for air pollution control will not only improve air quality but also help upgrade China's industrial structure, according to an expert.

"Once the action plan for the prevention and control of atmospheric pollution is carried out and strictly implemented, we will witness a rapid upgrade of the industrial structure in the fields of steel, architecture, electricity and heating supply," says Chai Fahe, vice-president of the Chinese Research Academy of Environmental Sciences.

Chai made the remarks during a forum on air pollution ahead of the closing ceremony of the Eco-Forum Global Annual Conference on July 21 in Guiyang, Guizhou province.

Zhou Shengxian, minister of environmental protection, said on Saturday that the ministry is to announce an action plan drawn up by the State Council around the end of this month.

The action plan mainly focuses on the control of PM 2.5 - particulate matter smaller than 2.5 micrometers in diameter that is harmful to human health - and covers controls for overcapacity and energy structure upgrades to fight against pollution, Zhou said.

Banking

Floor on lending rates axed by PBOC

China scrapped the lower limit on bank lending rates on July 19, in a major step toward liberalizing interest rates.

The move is also aimed at cutting financing costs for businesses amid a deepening slowdown in the world's second-largest economy.

It means that China has now ended controls on lending rates.

The People's Bank of China, the central bank, said the lower limit on commercial banks' lending interest rates would be removed from July 20.

Previously, banks were allowed to extend loans at rates higher than 70 percent of the benchmark lending rate set by the PBOC, which has been held at 6 percent since the last reduction in July 2012.

"Financial institutions will determine the prices for loans by themselves according to commercial principles," the central bank says in a statement on its website.

(China Daily Africa Weekly 07/26/2013 page2)