This Week in China
Top Story As the global economic environment continues to worsen, the People’s Bank of China has cut its key one year interest rate by 1.08 percent to 5.58 percent. It has also lowered the required reserve ratio that banks must maintain. This comes as the World Bank lowers its forecast for China’s 2009 GDP growth ...
As the global economic environment continues to worsen, the People’s Bank of China has cut its key one year interest rate by 1.08 percent to 5.58 percent. It has also lowered the required reserve ratio that banks must maintain. This comes as the World Bank lowers its forecast for China’s 2009 GDP growth from 9.2 percent to 7.5 percent. China’s cabinet announced that it was studying measures to bolster struggling automotive, steel, petrochemical, and textile businesses.
Analysts have responded positively for the most part to the rate cut. They’ve applauded Chinese authorities for taking extraordinary measures to ease the slowdown and have looked favorably on China’s continued use of interest rate tools to stimulate the economy, instead of depending on investment spending. More rate cuts are probably in store.
More than 500 workers at a toy factory in Southern Guangdong province clashed with police after they were fired. Some had worked at the factory for more than 10 years.
An official says the government has released more than 1,000 rioters involved in the protests in Lhasa, Tibet earlier this year.
Chinese President Hu Jintao met with Greek leaders yesterday, pledging more cooperation on trade, energy, and tourism.
The Ministry of Finance earmarked another 20 billion yuan ($2.9 billion) for reconstruction efforts in earthquake-hit southwest China next year. This comes on a top of 70 billion yuan already committed for this year.
Business & Economy
Huang Guangyu, one of China’s richest men and head of the Chinese retail electronics giant Gome, has been detained by police who are investigating stock manipulation charges.
China Eastern airlines saw its losses on fuel-hedging trades surge to 1.83 billion yuan ($268 million) as the price of fuel plummeted. Other Chinese airlines have seen similar losses.
Science & Environment
A new report says pollution has made a third of the Yellow River, China’s second longest waterway, unsuitable for farming, fishing, or factory use, and 85 percent of it unsuitable for drinking.
A panda bit a student after he broke into its zoo enclosure, seeking a hug.
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