Nanfeng Chuang

Inflation or Deflation?

July 29, 2010

As the world economy is experiencing another round of downturn brought about by the European sovereignty debt crisis, China's economic situation also becomes more complicated. From the official expection of inflation last year to recent soaring prices of farm produce, inflation seems to be present. Yet almost simultaneously, it appears as if China is on the brink of deflation, with prices of some commodities dropping and inadequate domestic demand.

The divergent view mirrors the complexity of China's economy. China is now in a dilemma. If it withdraws the stimulus policy too early, it might suffer from another round of downturn, while a too late action would result in increasing pressure of inflation. This dilemma tests the Chinese Government's decision-making capacity. In the near future, its decision choices will affect the economic trend to some extent. To maintain sustained growth, the government should well-balance the development of various economic sectors.

Yanzhao Evening News

 Monopolies Appeal

August 4, 2010

The results of the 2010 Best Employers Survey, recently issued in Beijing, show college graduates' most favored employers are state-owned enterprises, monopoly ones in particular, followed by joint ventures and government-sponsored institutions. Wholly foreign-owned companies, used to be very popular, rank fifth on the list. 

Graduates are free to choose working in monopoly enterprises, but if their choices are limited to these enterprises, which are known for stable income, high social status, good welfare benefits and low work pressure, it's not good for overall social progress, as these privileges and welfare are unattainable for ordinary people.

To rid graduates of their obsession with monopoly enterprises, the key is to establish a fair income system and to create conditions for all enterprises to compete in the market on an equal footing. The country's overall development in the long run does not depend on monopoly enterprises.