The freedom of decision-making, risks, and responsibility seem to be the key words of the newly issued policy on investment system in China. It is up to the enterprises whether to fund a project or not. If they decide to do so, they have to take risks into consideration. For government officials, they have to think very carefully before they launch a project. Or they will be held responsible for their prudent decisions.

The People's Bank of China, China's central bank, has given instructions on loan extension. Banks will relieve themselves from self-incrimination for bad decisions if they strictly follow the instructions.

In China, due to the long history of bureaucratism, big decisions are sometimes made when an idea "suddenly" occurred to a boss or a top official. Perhaps they should learn something from foreign practice in which important decisions are based on research and detailed feasibility reports. China's economy is still driven by investment instead of consumption, experts say.

Given this, wise and effective investments really make sense to the whole economy. As more social capital is expected to make its way into the market, the new investment system is designed to pave the way leading up to market-oriented financing. Steadily press ahead reform of investment system

Beijing residents complained about stuffy days recently. Even so, they are more lucky to have rainy eventides and cool dawns than southerners who are living in parched air. New records of power consumption are refreshed and the country's grids are under mounting pressure. While power supply is top on the agenda of the government, the Blackout in US and Canada last August serves as a morning call to the whole world, especially the countries hunger for power like China. Premier shows concerns over grave power shortage

There is no doubt that the central government of China will not disarm its vigilance or efforts on macro-control before an economic soft landing is really there. Indicators for the first half of the year basically suggest high chances of achieving that. Morgan Stanley bets that the giant dragon will be harnessed. China' s central bank is still watching closely the price curves which was up 5 percent in June and guarding against any rebound of fixed assets investment through credit risk control. Care about China's economy is no longer confined within the country. The whole world is watching. Debates in town now are not about whether the economy is overheating. They are about whether it can be cooled down to a rational centigrade. Although there are mixed indications about China's economic situation, for instance sharp decline of fixed investment and GDP growth well below the expectation versus slight downturn of bank loans and rapid growth in industrial production output, the way how uncompromisingly and carefully the central government has pushed its macro-control policy has demonstrated its ability and determination to shoot the goal that they cannot afford to miss.

Opinions about China's private sector somewhat vary. Some call for more diversified and easier financing channels for their growth. Some, especially banks, cast suspicious eyes on their integrity. Private businesses have sharper sense of touch in the market than state-owned ones. But their credit record actually does arouse concerns, as proved by Qionghua scandal which hit the newly-born SMEs (small and medium sized enterprises) board in Shenzhen.

In this dilemma, which should go first, improving the honesty of private businesses or offering a more agreeable environment for their growth? Since the reform and opening-up launched in China, the private sector has been booming and developing competitive edge although they have got less support from the government. Now they are strong and have gained more support from policies.

The case of Tieben does not indicate any changes of the government's attitude toward the private sector as a whole. The State Council's meeting in Qingdao made it very clear that private enterprises are encouraged. There is no reason that they would not have a bright prospect, even though their state-owned counterparts have overhauled and their foreign peers are so powerful and continue to enjoy favor. Nongovernmenal investment to win key support from Chinese government

Steel investment may be blacklisted by the banks for credit extension as the sector is one of the major overheating industries to be cooled down in this round of macro-control. But the government stresses that businesses with promising market prospect and hi-tech content be encouraged.

Steel production is excessive in overall quantity, but inadequate in quality. China even has to depend on imports of hi-end steel products which are so expensive in the world market these days that the country has to reduce its imports. On the other hand, steel producers have finally realized that their way out should be on the hi-grade steel products.

In fact, foreign investors have seen this and they never slowed down their pace of expansion in China where they have more production lines into operation. Steel investment growth slows down China records first steel import decrease

Charles Holiday, CEO of Dupont which is in the center of an environmental case , was surprised at the drastic response among his Chinese consumers who are repeatedly questioning the safety of his non-stick cookware. For American consumers, it is enough to explain to them there is only some misunderstanding about the procedure. But he has sent technical experts to China to persuade consumers here that their products are safe both to their health and their environment.

Chinese people have a strong sense of environmental protection. The State Development and Reform Commission will launch pilot projects soon around the country to develop the recycling industry. The country's needs for clean air and better living environment have created a market of great potential for environmental enterprises.

Some foreign businesses are doing well in promoting their practice in environmental protection in their China operations. They are not only driven by their sense of responsibility, but by benefits from efficient use of resources. However, some Chinese enterprises are reluctant to invest in environmental protection. They still hold that investment in environment is expensive. But in fact they are wasting resources, labor and time. And all of these waste costs their products quality, market, competitiveness and prospect. Foreign vision vs. Chinese insight: money on environment

Air-conditioner producers have to remember a new word: EER, signifying energy efficiency rating. The power shortage plaguing the country taught the nation a lesson how important it is to use resources as efficiently as possible.

In fact, even before the standard is set up, electric home appliance boasting less power consumption are more popular in the market. But it is hard for consumers to judge whether they can trust producers about how much money they can save by using energy-saving products.

Whether other appliance categories running on power will follow the suite is still unknown. Anyhow we are glad to see such products up to the "national standards" and we also hope they are produced through a clean production process. China to raise market access standard for air-conditioners' energy efficiency

Yes, textile quotas should be removed. And it seems they will be removed as scheduled by WTO. But then, what after that? Viewing the post-quotas era, China and foreign markets have different logics in their argument. And WTO cannot solve all the problems when there are fire walls against it. With the day of January 1, 2005 drawing near, Chinese textile industry does not expect an applause to embrace it , but is worrying about something even more difficult to surmount. Textile quotas should be removed

The most important factors to have a booming and advanced software industry are innovation and protection of the innovations. China cannot waste any more time in having its software industry catch up the world. On it not only depends the economic competitiveness of the country, but the national security. And enterprises are expected to play a leading role in R&D and trade of software. China: Software industry of strategic priorityVice premier Wu Yi predicts software gains

Yangtze Power is making giant steps toward new turf. It is targeting to be a shareholder of the spin-off of China Construction Bank Corp. which is expected to be the first state-owned commercial bank to go public. What will this mean both to the power generator and the financial service provider bring? Bank of China, the other state-owned commercial bank also preparing for listing, is eying new business.Yangtze plans acquiring bank state BOC sets up JV to explore China's fund market

China's auto market is in an "adjustment" period, said many experts. The fact is that buyers are holding a wait-and-see attitude. They are waiting for tariff cuts and looking forward to seeing more price slashes. In this case, moves like reshuffling marketing executives or price cuts may not be the most needed catalysts. It may be the best time for them to review their strategies and bring something fresh to the market. Shanghai Auto signs MOU to purchase S. Korean automaker

By People's Daily Online