San Francisco will become a hot destination for Chinese tourists once the U.S allows in Chinese tour groups.

U.S. Becomes a Destination for Chinese Tour Groups

A U.S.-China tourism press conference announced that the United States will be accessible to Chinese tour groups beginning June 17, 2008, when the first group leaves for Washington D.C. The CNTA (China National Tourism Administration) and the U.S. Department of Commerce signed a memorandum of understanding in December 2007, and have made specific plans to facilitate Chinese outbound tour groups. During the six-month-long “stage one” of the agreement, citizens living in Beijing, Tianjin, Hebei, Hubei, Hunan, Shanghai, Jiangsu, Zhejiang and Guangdong can join groups visiting the United States. Previously, Chinese citizens have been permitted to visit the U.S. for business and study purposes. In 2006, each Chinese visitor spent an average of around US $6,000 while visiting the United States.

Lehman Brothers Predicts Slowdown for China in 2009

China cannot be inoculated against the world economic downturn, the global investment bank Lehman Brothers stated recently at a press conference on 2008 Asian market liquidity. It predicts a slowdown in Asian economies, although it also believes the region’s rapid growth will continue. China’s GDP growth is expected to decline to 9.8 percent this year, and fall to 8 percent in 2009. However, the crucial issue for the nation is coping with the excess production capacity that has been created by a much more rapid growth in investment than consumption.

“In past years, this pressure was eased through exporting goods to overseas markets, but export volume is falling with the global downturn,” said Sun Mingchun, a senior economist with Lehman Brothers China. Many export enterprises have to deal with problems like overstocking, low profit margins, deficits and even bankruptcy. The present situation, if it continues, will affect the asset quality of banks, which will have a domino effect.

Bookworms young and old at the bookstore.

Paper Air Tickets Banned

As of June 1, 2008, paper air tickets disappear worldwide, according to the International Air Transport Association (IATA). BSP (billing and settlement plan) China has already stopped distributing paper tickets for domestic flights. IATA-recognized agents are not allowed to sell any BSP paper tickets from June 1. China began issuing e-tickets on October 16, 2006, but most passengers continued to use “BSP neutral e-tickets,” which still involved paper. From June 1, only paper-free tickets may be issued.

China International Muslim Food and Goods Fair

From September 10 to 13, the third China International Halal Food and Muslim Commodities Festival will be held in Yinchuan, the capital of Ningxia Hui Autonomous Region. Around 6.1 million people live in the region, of whom 2.2 million, or 36 percent, are of Hui ethnicity. The four-day festival includes an International Forum on the Cooperation and Development of the Halal Industries, the first Hui Merchants Conference, the second International Cashmere Expo, and the Western China Characteristic Agricultural Fair. The global trade volume of Halal food surpasses US $150 billion every year. The first China International Halal Food and Muslim Commodities Festival was held in Ningxia in 2006.

Bookworms young and old at the bookstore.

Du Yuzhou: Current Tax Rebate to Be Maintained

The current tax rebate of 11 percent on exports by textile enterprises will not be cut, according to Du Yuzhou, president of the China National Textile and Apparel Council. Textile exporters have been having a tough time in 2008 dealing with the fallout from sharp reductions to the tax rebate introduced last year. The cuts, coupled with the RMB’s rising value, increasing domestic labor costs, and a world economic slowdown, mean some small operations are facing bankruptcy. “The bad situation is forcing companies to turn to the domestic market,” said Du, “but against the backdrop of a soaring Consumer Price Index (CPI), the price index for textiles has slid by 1. 4 percent.”

Since 2005, the RMB has increased in value by over 18 percent, while the tax rebate has been reduced from 17 to 11 percent over the same period. The implementation of last year’s new labor law has also increased costs. Textile enterprises’ profit margins have fallen to as low as 10 percent as a result. So there will be no more reduction to the rebate, said Du.

Bookworms young and old at the bookstore.

CASS: Women Migrant Workers Paid Less Than Their Male Counterparts

Female migrant workers are paid considerably less than their male counterparts, according to the recent report Gender Differences in the Migrant Workers’ Market. Researchers from the Chinese Academy of Social Sciences (CASS) carried out a survey in Dalian, Shanghai, Wuhan, Shenzhen and Chongqing. Among the 2,398 migrant workers surveyed, 52 percent were female, with an average age of 28.1. The average age of male respondents was 30.3. The survey found female workers’ average monthly salary is RMB 910.78, RMB 200 lower than men’s. As well as being paid more, male workers spend longer periods in the city -- one and half years on average.

In terms of reasons for the inequalities, the report concludes that women often have to retreat from the market for some time, especially when they marry, give birth and take care of their children. In addition, many employers prefer to hire younger women and impose a strict limit on female workers’ age. Respondents felt sex discrimination was the key factor underlying inequalities, far outweighing other issues such as level of education.