Beijing Comes to Grips with Olympic Realities
As the Olympics approach, China is considering what has, and has not, changed. The government opened three Beijing parks for protests and ordered police nationwide to behave cautiously at public events. Dozens of measures led to billboard cleanups, suspended construction, traffic limits and security checks that inconvenienced the capital's residents. Some 4,000 full-timers and 70,000 volunteers are working for the Games.

Nevertheless, the real estate and stock markets have been sluggish, hotels are half-empty, and restaurant profits are down. A strong boost to Beijing business is illusory, although a post-Games economic setback is unlikely. State-owned companies bought operating rights to most Olympics stadiums, relieving the city government. Still in question is what 40,000 reporters, and live broadcasts, will make of Beijing during and after 17 days of competition.
 
CDB Balks Higher-Ups in Barclays Deal
Opposition from the highest level of Chinese government failed to prevent the policymaking China Development Bank (CDB) from proceeding with a new, 136 million pound investment in Barclays bank. CDB's bold move, aimed at preventing dilution of its 3 percent stake in the struggling British bank, sheds light on friction in Beijing over foreign investment strategy.

The State Council, Ministry of Finance and central bank investor Central Huijin had opposed CDB's request to pump more money into the bank, fearing it might be throwing good money after bad. Last year, the policy bank bought a 3 percent share, which then lost value in the global credit crunch. CDB apparently considers Barclays important for China's access to the African market, which is also a target of competing Japanese banks.
 
Unresolved Conflicts Pit Coal Versus Power
China's nationwide power shortage is worsening despite the government's intervention steps. According to the State Electricity Regulatory Commission, the shortfall this summer will reach 16 million kilowatt hours. Analysts blame the shortage on low supplies of and rising prices for coal, a double-edged disincentive for power plant operators to burn the fossil fuel. To deal with spiny issues surrounding coal-fired power, the government in June announced price caps for the coal used to generate power. But prices still continued to surge.

On July 24, the government clamped down harder on spot coal prices at major ports and distribution centers, bidding to end price increases and guarantee supplies. But industry analysts say government regulations cannot settle fundamental conflicts between the power and coal sectors that many blame on price distortion.
 
Sino Scientists Aim to Conquer South Pole
China plans to build its first science lab at the South Pole, a construction project far more challenging than the actual lab work. By launching the 250 million yuan project, China is moving aggressively toward becoming the world leader for South Pole research, reversing its second-class status in the field of polar studies.

Chinese scientists take pride in the plan to establish the lab at the core South Pole area known as ice vault A, whose highest point reaches 4,093 meters in elevation and where average temperatures can plunge as low as minus 58 degrees Celsius. The project will require large amounts of construction equipment to build a basic structure. Yet the lab won't open until after completion of an aviation facility for refurbishing jets and training crews.
 
The Death of Doha Round
After seven years of tedious negotiations, the WTO's Doha Round, which mainly regarded agricultural subsidies, has broken up. It may have been completely futile. While developing countries advocated lowering the bar to implement special subsidies for imported rural produce, developed countries sought the opposite. The wide gap between developed countries, mainly the United States and Europe, and developing countries, represented by India, make it unlikely that an agreement will ever be reached.

No visible compromise was made on a security mechanism which would allow higher tariffs on imported foreign produce, nor on the widening gap between developed and developing countries on rural subsidies. While some blame the Chinese for teaming up with India and causing negotiations to fail, China says it's guarding its position for good reasons.