Posts Tagged ‘recession’

UK Sunday Telegraph: China turns to British charities to plug gaps left by communist party

Saturday, July 11th, 2009

An article published in February by David Eimer in Beijing.

China turns to British charities to plug gaps left by communist party

For decades, the Chinese Communist Party has insisted that it can provide for all the country’s most disadvantaged citizens itself – with no need for charities in its socialist paradise.

Now, in a dramatic reversal of that policy, the government has acknowledged that it cannot cope with the tens of millions of people who have missed out on the prosperity that has come with China’s rise to a global economic power – and more who may lose their jobs in the global recession.

Officials are now actively talking up the role of charities and non-governmental organisations (NGOs), as they hope to harness the newfound enthusiasm amongst the Chinese for giving to charity and volunteering that has appeared since the Sichuan earthquake. Because it has little experience of its own of working with such groups, China plans to use some of Britain’s most famous charities as role models for their own voluntary sector.

Financial Times: China to fund just 20% of quake rebuild

Saturday, January 3rd, 2009

Report on post-quake rebuilding from the UK’s Financial Times:

The Chinese government will fund just a fifth of the estimated RMB 3,000 billion cost of reconstruction and development in earthquake-affected Sichuan, leaving businesses and state-owned banks to pay for the rest, provincial officials said on Friday. Even as economic officials issue warnings that China’s economy is cooling much faster than expected as a result of the global crisis, Sichuan officials said they were optimistic that state-owned companies and the private sector would invest in the disaster zone.

“The government’s investment will encourage all kinds of investment from society to help us rebuild Sichuan after the quake,” said Wei Hong, executive vice-governor of Sichuan Province, at a press conference. “We will seek loans from domestic banks, financing from capital markets and donations from the public to make up the rest of the needed investment.”

The government appears to be ordering state-owned banks to shoulder much of the burden of a giant fiscal stimulus package announced last week at a time when they face slowing profits and rising bad loans. China’s benchmark stock index has fallen by nearly 70 per cent from the peak it reached last October and regulators have effectively suspended approvals for new listings.