News & Reports 2011-01-29

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In This Edition

The heaviest transient flow in the world is witnessing its peak in China with 35 million people daily travel by train just days ahead the Spring Festival.

South Korea says they will not consider North Korea's offer for holding parliamentary talks a sincere move until Pyongyang admits its responsibility for recent military actions.

Tunisia is bracing 1 for the public reaction to the shake-up of the cabinet, which is designed to try to quell 2 the huge daily protests.

Chinese experts weigh in on the recent round of policy moves to try to reign 3 in housing prices in the country.

Hot Issue Reports

Millions of Workers Prepare to Travel Home for Chinese New Year

The heaviest transient flow in the world is witnessing its peak in China with 35 million people daily travel by train just days ahead the Spring Festival, the traditional Chinese Lunar New Year holiday.

Beginning on February 2, the week long Spring Festival holiday is considered the most important holiday in China, and for many, is the only chance to return home to see their families each year.

Zhao Xuedong is a 34-year-old migrant worker from Heilongjiang.

"On festive 4 occasions we miss our loved ones more than ever. Each time when the New Year is coming the wish of going home is at the bottom of the hearts of all the Chinese. This is the national cohesion 5 among the Chinese and this cohesion helped the Chinese survive for 5000 years as a nation. That's why there are hundreds of millions of people on the road every New Year."

About 230 million people are expected to travel this year during the 40-day Lunar New Year holiday season, which is billed as the world's largest human migration 6.

However, ticket shortages and weather issues have been adding to the challenge of getting people home.

Davos: Chinese Economy Discussed

Chinese Minister of Commerce Chen Deming has co-hosted a session at the ongoing 7 Davos World Economic Forum 8 with the head of the World Trade Organization.

During his time on the panel with Pascal Lamy, Chen has described the Chinese government's decision to join the WTO ten years ago as a "tough choice," but a choice he says was "right."

For his part, Lamy says China joined under terms much tougher than for any other developing country, which he describes as a "bitter pill" which eventually turned out to be "an insurance policy against protectionism."

Meantime, Wei Jiafu, the CEO of China's state-owned shipping 9 giant COSCO, says the world has now recognized the importance of the Chinese economy.

"As a co-chair of this summit, from what I've seen at the summit and heard from other speakers, the positive influence of Chinese economy has been widely recognized."

Jamie Dimon is the chair of JP Morgan.

"You see signs of inflation there. They should use all the tools and they move quickly. Chinese authorities they see the issue and they want to tackle it. I do think they also need the growth."

China is tightening 10 its monetary 11 policy to try to control liquidity 12 and rein 13 in the red-hot property market.

North Korea Proposal of Parliamentary Talks with South Korea

North Korea has proposed holding parliamentary talks with South Korea to overcome the "grave situation" between the two sides.

Responding to the offer, South Korean officials say they won't consider it to be sincere until the North admits its responsibility for recent military actions.

Chun Hae-sung is a spokesperson for the South Korean Unification Ministry 14.

"Our government's analysis is that the North's continuation of its offensive movements on the South during this situation does not demonstrate sincerity 15. I once again repeat our government's stance that now is the time for the North to take responsible measures."

The offer of parliamentary talks by the North comes just two days after the South proposed a February 11th date for holding a preliminary meeting with North Korea to try to lay the groundwork for high-level defence talks.

New Tunisian Cabinet Braces 16 for Public Reactions

Tunisia is bracing for the public reaction to the shake-up of the cabinet, which is designed to try to quell the huge daily protests that have been calling for a clean break from the people connected to ousted 17 president Zine El Abidine Ben Ali.

Following days of tense negotiations 18, Prime Minister Mohammed Ghannouchi now says he is staying on, but has replaced five ministers from Ben Ali's last government, whose previous retention 19 has been decried 20 by protesters.

The response to Ghannouchi's announcement has received a mixed response in Tunis, as protestors continue their demonstration 21 today.

"We are not happy because he belongs the same regime and maybe he will keep political steps from　the old regime. We would like that he leave also, but we will give him an opportunity that he make some changes.

"We are a little bit happy because we have got new faces, new people that we don't know exactly but at least we got rid of those people who are corrupted 22 and belong to the same political regime of our president."

New ministers have been appointed to the key foreign, defense 23 and interior posts.

Meanwhile, Tunisia's government has now frozen Ben Ali's assets and has issued an international arrest warrants for the ex-ruler and six members of his once all-powerful family.

Mandela Recovering from Collapsed 24 Lung, Could Leave Hospital Today

South Africa's vice 25 president has gone on national television to try to quell rumors 26 swirling 27 around the health of former South African President Nelson Mandela.

The 92-year old Mandela was admitted to the hospital earlier this week, prompting concern for the anti-apartheid icon 28.

The current Vice-President now says Mandela is "Alive and kicking." An ambulance is now said to be waiting to take Mandela away from the hospital.

A source close to Mandela says he is recovering from a collapsed lung.

Students from a nearby school have gathered outside the hospital to wish Mandela a speedy recovery.　

"The world will be torn without him, so he must come back. He must not die."

"I wish that Mandela must not die."

Speculation 29 surrounding Mandela's health was strong enough to bring family members and dignitaries rushing to the hospital.

Passenger Trains Collide Head-on in Indonesia; Ferry Catches Fire

Indonesia was hit by two separate, severe transportation accidents on Friday.

Two passenger trains crashed head-on in West Java, killing 30 at least five people and leaving many others injured.

Hu Xing is our South East Asian correspondent.

"The accident occurred at around 0224 local time. A passenger train did not travel following the signal light and collided with a train running in the opposite direction. Both train derailed right after the accident and created an instant wreck 31. Local rescuers and residents come to the scene trying to reach the people trapped there. They carried people out of the carriages and send them to the nearby hospitals for treatment."

Meanwhile, a crowded ferry which runs between the country's two main islands of Sumatra and Java has caught fire, killing a reported 17 people.

At least 100 more have been injured, with a number of people jumping off the ferry in the panic.

A search in the waters is now underway to look for possible survivors 32.

There was close to 500 people on board the ferry when the ferry caught fire.

Australia PM Defends Proposed Flood Tax, Cyclones 33 Could Hit Queensland Next Week

Australian Prime Minister Julia Gillard has defended her government's controversial new flood levy 34, as she embarks 35 on a tour of flood-affected parts of the state of Victoria.

"I wanted to assure Australians, and I offer them that assurance again, this is a temporary, one-off levy. It will be there for 12 months and that is all."

Tony Abbott, Leader of the Opposition 36 Liberals, has criticized the plan, which is designed to raise $1.7 billion US dollars in a new, one-off tax.

"It's absolutely imperative 37 that we spend the money but it's quite unnecessary that we should have this new tax. And the point I keep making is that people have suffered enough."

Initial estimates of the overall damage, plus the cost of emergency grants to flood-affected communities, now sits at around $5.5 billion US dollars, but is likely to rise.

PBOC Zhou: Aim for Positive Real Deposit Rates in Medium Term

China's central bank governor says they are now looking to keep the average deposit rates above the inflation rate in the medium term.

Zhou Xiaochuan has defended the interest rate policies by the People's Bank of China, saying that over the long term, the rate of returns on deposits has generally exceeded the rate of inflation.

"In the year 2009 when prices were kept at a low level, we discussed whether to lower the deposit rate, but we decided 38 to keep it unchanged, with the one year deposit rates standing 39 at 2 percent. There was not much controversy 40 on that. But now, we hear a lot of discussions on that when deposit rates are beaten by the inflation rate. That's understandable."

Inflation has become a priority for policy makers 41 in recent months. China's consumer price index rose 4.6% in December, down from November's 5.1%.

But government officials and economists 42 are warning that inflation will remain high in the coming months.

The People's Bank of China hiked its benchmark lending and deposit rates twice last year.

Trial Property Taxation 43 Trivial to Curb 44 Home Price

Chinese experts are weighing in on the recent round of policy moves to try to reign in housing prices in the country.

As CRI's Ting Ting reports, there seems to be some uncertainty 45 about just how effective the moves will be.

Authorities in the Chongqing and Shanghai municipalities announced Thursday that they would kick off the long-awaited trial property taxation amid the latest measures to cool off the red-hot housing market.

Jia Kang, director of Institute of Fiscal 46 Science of the Ministry of Finance explains, "If an individual takes up more social resources, he or she should pay more in taxes."

Chongqing will tax all villas 47 and new apartments priced at least two times the average price of all newly-built homes in the southwestern city. The annual tax rates are 0.5 percent of the transaction prices for villas and apartments priced less than three times the average price, 1 percent for those priced three to four times the average and 1.2 percent for those priced more than four times the average.

While Shanghai's taxation is relatively 48 lighter 49, with only the newly-bought second and second-plus homes of permanent residents in Shanghai taxed if the average floor area per family member of all homes is more than 60 square meters. The tax rates are 0.6 percent for housing priced more than two times the average prices and 0.4 percent for those priced less.

Qin Hong from the Ministry of Housing and Urban-Rural Development says she doesn't think that the move will lead to a sharp fall in prices, but will stabilize 50 market speculation over the short term.

"The tax adds to uncertainties 51 in the property market. It used to be simple math for speculators or investors 52, but now with the policy, market prospects 53 become hard to predict."

Niu Fengrui, from the Chinese Academy of Social Sciences, indicates that the move is "disorienting."

"The effect of the taxation will be trivial. The tax targets at only a small group of property holders 54, let alone that the tax rates take up only a tiny percent of the transaction prices. In the bigger picture, home price is, after all, determined 55 more by supply and demand. I believe the way out is to boost the supply by building more houses, including low-cost housing, low-priced renting houses and commercial residential 56 buildings."

China implemented 57 three rounds of market curbs 58 last year, which was regarded as the most stringent 59 restrictions 60 in the short but turbulent history of the Chinese property market.

However, the country's real estate market remains 61 overheated. Home prices in some major cities, such as Beijing, have more than doubled over the past two years.

Niu Fengrui, from the Chinese Academy of Social Sciences, suggests that the government loosen its policies on the property market to let the market find its balance of supply and demand, even though this would mean a temporary price hike.

Free Online Video Watching and Downloads End

A number of Chinese internet portals are introducing charged services, in an effort to try to provide legal, first-run TV series.

As Liu Min, this comes at the same time China's largest free download site, VeryCD, removed all its download links this week because of IPR issues.

The portal VeryCD's decision to stop free online downloads of unauthorized video and audio files have increased the competition among major portals in China for sales of copyrighted material.

Websites like Sohu.com and Youku.com have a greater opportunity to promote fee-based online video services.

Deng Ye, Vice President of Sohu Entertainment Media Division, says the company has invested a lot in purchasing TV dramas and movies with first-run or exclusive-run copyrights.

"We've bought more than ten TV dramas with exclusive running rights on average during the past two years. So far, we've got 30 such dramas already. Each one needs an investment of 10 million yuan."

The investment has rewarded the websites with high viewing rates. Within two months before the end of last year, the popular TV drama "Marriage Battle" was viewed 600-million times on Sohu.com. But at the moment, most online video providers make a profit from advertisements played at the beginning of the videos rather than user fees.

But a small number of websites have already tried to charge fees. For example, Youku.com promises users they can watch online videos an unlimited 62 number of times for only 20 yuan per month.

But for most Chinese netizens who are used to enjoying free online entertainment, fee-based services may be unwelcome.

"I won't watch the first-run TV dramas or movies online since they eventually will air on TV. I love the feeling of expecting to watch several episodes every day on TV. Online watching is not suitable for the whole family to share and talk about the story. The advertisements don't bother me at all since you can also take a rest during the commercials."

"I personally can accept the online service charges, but the prerequisite 63 is they must offer programs with fascinating stories and high-quality images. Most importantly, there must be no commercials. It's very irritating that many sitcoms 64 broadcast on TV always put in lots of advertisements."

Recent statistics indicate the number of online video viewers has reached 265 million, accounting 65 for 63 percent of the country's total number of netizens. The prosperous online video business has also cultivated a new market for film and television drama producers.

Content producers are sharing profit from online broadcasts with major internet portals rather than selling running copyrights to traditional media like TV stations or selling DVD copyrights to publishers.

Film Director You Xiaogang says moviemakers in China are now following the new trend in the industry.

"The era of fee-based film watching has arrived, so movie producers need to think about whether they should cooperate with online portals to share profit and risks. For example, should they split the profit fifty-fifty?"

At the same time, some major portals such as Youku.com worry about a rush to charge fees which will irritate users. The portals say they will take steps to introduce fee-based business models, and that it will take a long time for Chinese netizens to get used to paying to watch videos.

Michael Jackson Hand and Footprint "Slab 66" to Hit Auction 67 Block

A 170 kilogram slab of concrete featuring Michael Jackson's hand and foot impressions, along with his signature, is set to go on the auction block in Los Angeles next month.

Nate D. Sanders is the auction house owner.

"I think it will sell for 100,000 dollars or more. It would be perfect for a casino, something like the Hard Rock or Planet Hollywood. Maybe even a collector, who has a lot of money. The glove last time sold for 350,000 dollars. "

The slab dates from 1984 when Jackson made the impression for a Las Vegas Walk of Fame project that never materialized.

The item is dubbed 68 the "Broken Heart Stone," because a surface crack runs through a heart design within Jackson's left palm print.

The online auction will end on February 15th.

Newspaper Picks

From the Shanghai Daily: An online campaign to rescue children forced into begging on Chinese streets is now attracting nationwide attention.

Pictures of child beggars are now being posted on one of the countries' leading microblog sites, in the hope that relatives of children reported missing might recognize them and that the police will take action.

Just two days after its launch, the campaign has already attracted more than 4,300 followers 69 and 35 people have posted pictures of children spotted 70 on the street.

The man behind the campaign, Yu Jianrong, a professor with the Chinese Academy of Social Sciences, is urging people to take photographs of children in a bid to save those illegally sold by abductors or human traffickers.