Australia’s Rudd: Olympics Is China’s Platform
“Without Deng Xiaoping, there would be no opening-up policy,” Australian Prime Minister Kevin Rudd told Caijing in an exclusive interview. “No opening-up, no Olympic Games.” Speaking in Beijing and occasionally in fluent Chinese, Rudd praised China’s former leader Deng while saying he has no concerns about surging Chinese investment in Australia, but hopes the Chinese can be equally relaxed about Australian investment in China.

Rudd was among 80 state leaders and royalty attending the opening of the 29th Summer Olympics. He called the Olympics a platform for the next stage of China’s globalization process, embracing markets and politics. The Australian premier is encouraging countries to work with China on global problems, not just bilateral relations. He’s also seeking more cooperation with China on issues such as the environment and trade.
 
Torch Lighter Plays Down Commercial Impact
China’s last torch bearer at the opening ceremony of the Beijing Olympics, Li Ning, told Caijing the personal glory would have little impact on his sports apparel company or himself. The 45-year-old gymnast jogged through the air around the rim of the Bird’s Nest stadium and lit the huge Olympic cauldron with a streak of flame. He rejected arguments that the feat would promote his namesake sportswear, but agreed it would boost the company’s spirit.

Li said the most precious lesson for China in hosting the Olympics was learning to play according to international standards, not only in sport competitions but in other fields of development as well. “I hope the Olympics principle can be extended to all aspects of our life,” said the three-time gold medalist.
 
Firms Sue State Quality Inspectors for Monopoly
Just days after China’s first anti-monopoly law took effect August 1, six companies in Beijing and Shanghai sued the country’s quality inspection office for operating an administrative monopoly. The dispute dates to 2005, when the State General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) started aggressively promoting, and later enforcing, use of an electronic quality control system for producers. It was developed by China Credit Information Technology Co., which is 30 percent owned by AQSIQ. Backed by AQSIQ, the system was installed by more than 68,000 companies, boosting China Credit’s 2007 profits 589 percent to HK ＄6 million.

The case was filed in a Beijing court, which will decide whether to hear the lawsuit. Legal experts say the new law gives courts limited power over administrative monopolies.
 
China’s Currency Takes a Dive
Chinese yuan had the steepest decline since forex reform in 2005. Its value against the U.S. dollar declined for 10 consecutive trading days from July 29 to August 12, losing about 0.6 percent and signaling a slower pace of appreciation for the Chinese currency.  Experts blame the strengthening dollar, since the yuan is still appreciating against the euro and yen.

A decision to link the yuan to a basket of currencies apparently played a role. But politics is another contributing factor, as recent government policy adjustments show Beijing plans to respond to cries from exporters hurt by the combination of yuan appreciation, macroeconomic controls and the global slowdown. Nevertheless, economists say yuan depreciation would not effectively bolster exporters, whose problems stem mainly from weaker global demand.
 
Central Bank Calls for Agency Cooperation
The People’s Bank of China has proposed closer cooperation with three government regulators as part of an adjusted financial oversight system. The central bank plan released August 14 would revamp institutions, functions and roles. It’s not the first such modification, nor does it settle all problems. As in the past, this adjustment is linked to current economic conditions and follows years of discussions.

The new system would divide responsibilities among the central bank, China Banking Regulatory Commission (CBRC), China Securities Regulatory Commission, and China Insurance Regulatory Commission (CIRC). The policy would create a foreign exchange rate department. The new system, however, would not immediately overcome problems of coordinating the central bank and Ministry of Finance. CBRC and CIRC released separate proposals calling for inspection offices to fight fraud and corruption.