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In writing a book such as Supertrends of Future China, we were fortunate to have wealth of information available for research and analysis. During the production of this work, we utilized materials from the World Bank and other NGOs, investment bank and consulting company analyses, academic research, magazine, and newspaper articles, as well as personal interviews.

We benefited from many of these sources being available online and so, we believe, should our readers. That’s why we are providing the unabridged Notes section (complete with hyperlinks) so that you can delve further into any point made in the book:

Go directly to:

INTRODUCTION – China, the Land of Mystery: The Good, the Bad, and the Ugly
CHAPTER 1 – China’s Three Primary Growth Drivers
CHAPTER 2 – The Drivers of the Drivers
CHAPTER 3 – The Supertrends
CHAPTER 4 – Value-adding to Make Better Things, Innovating to Make Things Better
CHAPTER 5 – Serving Me:Urbanization and the Service Industry
CHAPTER 6 – Health, Education, and Leisure: Enjoying Life as a Market of One
CHAPTER 7 – Text Me: A Boundaryless Society with Instant Networking
CHAPTER 8 – Affluencing: China’s Accumulation of Wealth and Influence
CHAPTER 9 – Red China Goes Green: Saving Energy, Reducing Waste

If any links become out-dated or inaccessible, please let us know via the Contact page. Some sites do require registration to read or download full reports but most are fully accessible.

James K. Yuann
Jason Inch

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1 Wen reportedly first said in a November 2003 interview with the Washington Post, “Any small problem multiplied by 1.3 billion will end up being a very big problem, and a very big aggregate divided by 1.3 billion will come to a very tiny figure…” Thereafter this became a common talking point, covered in numerous locations, one of which is here: http://english.people.com.cn/200403/04/eng20040304_136505.shtml

2 McDonald’s China website (www.mcdonalds.com.cn) lists more than 750 store locations, including 693 24-hour outlets and an unspecified number of other outlets, including McDonald’s by delivery. Forbes Magazine in a recent article in February 2008 puts the total are more than 875 outlets in China. http://www.forbes.com/markets/2008/02/25/mcdonalds-china-pricehikes-markets-equity-cx_jc_0225markets04.html

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1 The many tales of Marco Polo were initially thought to be so far-fetched that few of his countrymen believed them. Nevertheless his book at the time was one of the most expansive accounts of the then-Mongol Empire, and later examinations showed Polo’s stories to be at least partly factual. A good summary can be found at http://www.silk-road.com/artl/marcopolo.shtml

2 In China’s fast-developing aviation field, there is much conflicting information from carriers, manufacturers, and regulators. An official report from US and Chinese officials following economic talks, as reported in Reuters via USA Today and other sources, on May 23 2007: “Under the new agreement, the number of daily round-trip flights will jump to 23 from the current 10 within five years.” http://www.usatoday.com/travel/flights/2007-05-23-us-china-flights-deal_N.htm

3 Boeing’s estimate was reported in a number of locations, such as this Asia Times Online article, October 23 2007, “Foreign Firms Fly High Leasing Planes”: http://www.atimes.com/atimes/China_Business/IJ23Cb01.html

4 The Civil Aviation Administration of China (CAAC) projection 2007.

5 Foreign students studying in China increased 20 percent in 2007, according to China’s Ministry of Education: “The number of foreign students studying in China reached a record of more than 195,000 last year, up 20 percent year on year, latest figures from the ministry showed.” Reported on China Economic Net, April 24 2008, “Bid to attract foreign students gears up.” http://en.ce.cn/National/Politics/200804/24/t20080424_15259516.shtml

6 Data from the Shanghai Federation of Trade Unions, as reported in Shanghai Daily, May 6, 2008, “Foreigner influx doubles in five years.”: http://www.shanghaidaily.com/sp/article/2008/200805/20080506/article_358456.htm

7 Author estimate based on tabulation of data from numerous sources. Note this figure includes Hong Kongese and Taiwanese classified as foreign residents, which may differ from official statistics.

8 Author estimate. With Shanghai and Beijing alone being home to up to 500,000 foreigners each (again, including Taiwanese and Hong Kongese) the other major cities of Shenzhen (large Hong Kongese population), Dalian (large Japanese population), Guangzhou (numerous foreigners from a variety of countries), and others are quite large.

9 The annual Mercer Human Resource Consulting Cost of Living survey is widely used by human resource professionals to determine expatriate pay packages. The 2007 version can be found at: http://www.mercerhr.com/costofliving and downloaded at http://www.mercerhr.com/attachment.dyn?idContent=1262535&filePath=/attachments/English/COL_Ranking_Top_50_Final_07.pdf

10 The ECA International Cost of Living survey, found at http://www.eca-international.com/Asp/ViewArticle2.asp?ArticleID=199

11 Also from Mercer, the annual World-wide Quality of Living survey ranked Shanghai and Beijing at 134th and 166th respectively, far below other regional business centers such as Singapore or Tokyo, http://www.mercer.com/referencecontent.jhtml?idContent=1173105

12 The report, On the Development of Chinese Talent in 2006 conducted by the Chinese Academy of Social Sciences, said that a million students had gone abroad between 1978 to 2006, as quoted in the following article: http://www.cbc.ca/news/viewpoint/vp_metz/20071105.html

13 The slogan, “Some must get rich first.” was attributed to Deng many times starting about 1978, at the time of the first economic opening reforms, sometimes in reference to places, sometimes in reference to people.

14 The two year campaign to improve safety in the mining industry resulted in thousands of small mines being closed and more than a billion dollars was spent upgrading facilities and equipment for safety. See the following article from Forbes, which includes sources from the State Administration of Work Safety and Xinhua: http://www.forbes.com/afxnewslimited/feeds/afx/2008/01/13/afx4524639.html

15 Wanting people to be able to better adapt to the eight percent inflation at the start of 2008, Guangdong was not the only place that raised its minimum wage. As reported on MarketWatch, February 27 2008, “China raises minimum wages to calm consumers”: http://www.marketwatch.com/news/story/china-raises-minimum-wages-calm/story.aspx?guid=%7BB120D814-3C01-468A-9C11-B7596BCE1A35%7D&print=true&dist=printTop

16 More information about wage and price inflation, and the McDonald’s wage increase in particular, can be found in this Asia Times Online article, August 8 2007, “McDonald’s Raises Wages in China”:


17 More information from Mercer regarding the Chinese market can be found here: http://www.mercer.com/referencecontent.jhtml?idContent=1268900

18 Economists and China-watchers may be divided as to what is China’s biggest threat currently, but the government is unanimous: The Chinese Premier, Wen Jiabao, following the announcement of China’s 2008 first quarter economic performance, said in a statement that inflation was China’s biggest threat (http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=aKWZ_IFAP3c4) ) and the Deputy Premier Wang Qishan labeled inflation the biggest economic problem in China and reaffirmed that the government would maintain a tight monetary policy, according to an article in the International Herald Tribune, May 9 2008, “Producer Prices on the Rise”: http://www.iht.com/articles/2008/05/09/business/yuan.php

Economists are divided on whether the inflation is monetary or supply-side in nature. Food commodity prices have increased rapidly, while efforts to reign in China’s money supply have been insufficient as of early 2008.

19 This figure for China’s savings rate is widely reported, here in an article from the Cato Institute on June 8 2007 as “…a dizzying 55%.” (http://www.cato.org/pub_display.php?pub_id=8272 ) The US savings rate is essentially zero or below zero because it imports more than it produces.

20 Figures vary depending on the source, the Chinese National Bureau of Statistics has the 2007 increase in pork price as high as 48.3% (Reported via Xinhua at http://news.xinhuanet.com/english/2008-01/30/content_7527600.htm ) while other sources were lower. One thing is certain, China’s overall inflation increase was due in large part to increases in food and agricultural commodities.

21 For more information about China’s GDP to 2050, there are a number of options: China’s internal projections from the National Development & Reform Commission, or external sources such as Goldman Sachs’ Global Economics Paper No. 99: Dreaming with BRICs: The Path to 2050, found at: http://www2.goldmansachs.com/ideas/brics/brics-dream.html

22 These types of predictions are often made by China’s leaders in relation to achieving some other target such as, in this case, Wen Jiabao aiming to double the per capita GDP by 2010: http://www.chinadaily.com.cn/china/2006-03/05/content_534421.htm

23 Shanghai is reported to be the city most-affected in China by land subsidence, according to the Chinese Ministry of Land and Resources, reported via Xinhua, February 10 2007, “Chinese Cities Suffer Land Subsidence”: http://china.org.cn/english/news/199613.htm

24 The World Bank’s new Chief Economist, Justin Lin, an esteemed academic from China, recently calculated that as early as 2030 China’s GDP could be 2.5 times the size of the US’s and its per capita income half that of the US’s, compared to about 1/20th now, in the May 2008 Chinese-edition of Harvard Business Review, as referenced in China Daily, May 3 2008, “GDP could be 2.5 times that of the US by 2030”: http://www.chinadaily.com.cn/china/2008-05/03/content_6657813.htm

25 With exception of three years when growth of GDP was 5.2% or less, China has maintained seven percent or greater growth (sometimes as high as 15%) for the last 30 years: http://www.chinability.com/GDP.htm

26 Despite missing that goal in 2007 (China’s GDP grew as much as 11.9% in 2007), Wen reiterated the same goal at the end of the 11th National People’s Congress in March 2008, setting the GDP growth target at 8 percent, reported via Xinhua, March 5 2008, “China’s parliament starts annual session, sets GDP growth at 8%”: http://news.xinhuanet.com/english/2008-03/05/content_7719856.htm

27 More information can be found about the Olympics through press releases and other details on the official Beijing Olympic website: http://en.beijing2008.cn/

28 The World Expo will be hosted in Shanghai in 2010 and the city has spent billions of dollars preparing. More information can be found at the official Shanghai World Expo site: http://en.expo2010china.com/

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1 Data from the Chinese Ministry of Commerce: http://zhs2.mofcom.gov.cn/aarticle/ie/statistic/200802/20080205367271.html

2 As reported in the Shanghai Daily, April 4 2008, “Forex reserve reaches US$1.68 trillion”: http://www.shanghaidaily.com/sp/article/2008/200804/20080412/article_355658.htm

3 Prediction by the Asian Development Bank, as reported by Xinhua, April 3 2008, “ADB: Chinese economy to grow 10% in 2008, inflation at 5.5%”: http://english.people.com.cn/90001/90776/90884/6385740.html

4 As reported via Xinhua, October 7 2007, “Chinese Exporters Adapt to Rising Yuan”: http://news.xinhuanet.com/english/2007-10/07/content_6839128.htm

5 The US figure was a trade deficit of US$ 256 billion in 2007 (http://www.census.gov/foreign-trade/balance/c5700.html#2007) while the Chinese figure was US$163 billion, according to China’s Customs Statistics, as reported on US China Business Council: http://www.uschina.org/statistics/tradetable.html

6 NAFTA was once thought of as a strong three-way partnership between the US, Canada, and Mexico, wherein Mexico played the part of factory. The three countries were each other’s respective largest trading partners. Now, Mexico has lost its cost advantage to China, and China has surpassed it as the US’s second -largest trading partner. At the time of writing, Democratic presidential candidates Barack Obama and Hillary Clinton were openly criticizing the NAFTA agreement on the basis of lost jobs.

7 See the following article on the increase in foreign direct investment in the first quarter of 2008, increasing dramatically because of the hot money effect, reported in China Daily, March 3 2008, “Wu: More hot money to flow into China”: http://www.chinadaily.com.cn/bizchina/2008-03/10/content_6523605.htm

8 As reported by China’s National Development and Reform Commission, referring to the period between the opening of China in 1978 to 2007, as reported on the government’s official website, May 6 2008, “Official: most of world’s top companies invest in China”: http://english.gov.cn/2008-05/06/content_962250.htm

9 The World Bank report, titled “China Governance, Investment Climate, and Harmonious Society: Competitiveness Enhancements for 120 Cities in China” October 8 2006, can be found at: http://siteresources.worldbank.org/INTCHINA/Resources/318862-1121421293578/120cities_en.pdf

Also, see a related report, also from the World Bank, “Improving the Investment Climate in China” March 2003: http://www.worldbank.org.cn/english/content/investment.pdf

10 Data from China’s Ministry of Commerce, as reported via Xinhua, April 11 2008, “FDI up 61% in first quarter”: http://english.people.com.cn/90001/90776/90884/6390549.html

11 The World Bank’s calculation uses PPP, purchasing power parity, to estimate the true size of an economy after the effect of exchange rate is taken out. GDP is customarily reported internationally in US dollars, meaning that GDP magnitudes can be distorted by exchange rates. The World Bank’s new Chief Economist, Justin Lin, an esteemed academic from China, recently calculated that as early as 2030 China’s GDP could be 2.5 times the size of the US’s and its per capita income half that of the US’s, compared to about 1/20th now, in the May 2008 Chinese-edition of Harvard Business Review, as referenced by China Daily, May 3 2008,“GDP could be 2.5 times that of the US by 2030”: http://www.chinadaily.com.cn/china/2008-05/03/content_6657813.htm

12 The BCG report was widely quoted in Chinese media, such as this story in International Business Times, October 22 2007, “China to become the world’s second-largest consumer market by 2015”:


13 See research from China Center for Economic Research. Justin Yifu Lin, February 2004, “Is China’s Growth Real and Sustainable?”: www.ccer.edu.cn/download/3024-1.pdf

Also, “Consumer Durables Ownership [in China] 1990 – 2002”: http://www.chinability.com/Durables.htm

14 Many books and China strategy papers talk about localization tactics for the Chinese consumer market. One report by Boston Consulting Group and Knowledge@Wharton, “Selling in China”, can be found here: http://www.bcg.com/publications/files/Selling_in_China_Final.pdf

15 Data source, China’s National Bureau of Statistics. More information can be found about China’s second, third and fourth tier city business expansion in the following articles: China Daily, via Xinhuanet, June 29 2007, “Real estate focus turns to China’s secondary cities”: http://news.xinhuanet.com/english/2007-06/29/content_6306920.htm

Also, see Xinhua, February 22, 2008, “Global Retail Giants Battle for Market Share in China”: http://www1.cei.gov.cn/ce/doc/cen3/200802211738.htm

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1 The IPO amount total is somewhat difficult to calculate because of exchange rate differences and greenshoe allotments, but the 2006 Bank of China listing in Hong Kong raised US$ 9.7 billion (11.2 billion with the greenshoe over-subscription), the 2006 ICBC dual listing in Hong Kong and Shanghai raised US$22 billion total, and the 2007 Construction Bank Shanghai stock exchange listing raised US$ 7.7 billion (57 billion RMB converted at 7.2 RMB / $). Construction Bank was a haigui company, with a previous listing in Hong Kong in 2005.

2 For more information on China’s accession to the WTO, a summary of the terms negotiated can be found on the US Trade Representative’s official website: http://www.ustr.gov/Document_Library/Fact_Sheets/2001/Background_Information_on_China’s_Accession_to_the_World_Trade_Organization.html

For more information on China’s implementation of the banking reforms in particular, please see this article from the International Herald Tribune, September 5 2008, “China Tries to Limit Access for Foreign Banks”: http://www.iht.com/articles/2006/09/05/business/chibank.php

3 For information about China’s compliance with WTO accession obligations, see the US Trade Representative’s annual report to Congress, December 11 2007, “2007 Report To Congress On China’s WTO Compliance”: http://www.ustr.gov/assets/Document_Library/Reports_Publications/2007/asset_upload_file625_13692.pdf

4 In part to appease US trade negotiators and reduce the amount of the trade imbalance, China cut or abolished a number of export rebate programs in 2007, and reduce the number of low-tech labor-intensive products it sells to the US via export limits. This article from Bloomberg summarizes some of the changes, July25 2007, “China to Limit Exports of Labor-Intensive Products”: http://www.bloomberg.com/apps/news?pid=20601080&refer=Asia&sid=a9c64IDUkhpo

5 The latest information on China’s tax incentives and mitigating policies at the time of writing are summarized at the China website of PricewaterhouseCoopers here: http://www.pwccn.com/home/eng/chinatax_news_mar2008_2.html

A lighter summary of China’s new unified corporate tax, effective from 2008, and the associated policies to reduce the shock to foreign companies that were previously attracted by low tax rates, can be found via China Daily, December 30 2007, “Policies to cushion impact of new corporate income tax law”: http://www.chinadaily.com.cn/china/2007-12/30/content_6360500.htm

6 For more information about China’s GDP, GDP per capita and other economic statistics, we used the National Bureau of Statistics website at http://www.stats.gov.cn/english/ and the China Statistical Yearbook published by the NBS

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1 The State Intellectual Property Office published a good summary of the state of intellectual property and parents for 2007: http://english.ipr.gov.cn/ipr/en/info/Article.jsp?a_no=198450&col_no=102&dir=200804

2 There is no official figure for the amount of new jobs that need to be created, but typical Chinese government announcements in the last several years for urban jobs needed are between 8 – 10 million a year, while an additional 10 – 14 million yearly are needed for rural residents. These estimates are based on the number of new graduates from universities and high-schools, the number of expected layoffs from inefficient state-owned enterprises, modest population growth, the amount of migrants moving to the cities (i.e. urbanization rate) etc. See: Speech by Chinese Ambassador to the UK Fu Ying’s speech to the Royal Society of the Arts, 11/23/2007 at http://www.fmprc.gov.cn/ce/ceuk/eng/sghd/t383809.htm or notes on Hu Jintao’s meeting with US President Bush, also by Fu Ying in a March 2008 speech to the University of Kent: http://www.fmprc.gov.cn/ce/ceuk/eng/sghd/t416383.htm

3 Numerous such studies have been done by industry specialists, reporters, and academics. The study we used is titled Who Captures Value in a Global Innovation System?: The case of Apple’s iPod, from the University of California, Irvine — Greg Linden, Kenneth L. Kraemer and Jason Dedrick, and can be found at: http://pcic.merage.uci.edu/papers/2007/AppleiPod.pdf

4 Accurate information about the number of migrant workers is, of course, hard to come by as many of them are unregistered and don’t want to be found. Guangdong, which includes major manufacturing cities such as Guangzhou, Shenzhen, and Dongguan, is estimated to have more than 26 million migrant workers (http://news.xinhuanet.com/english/2008-01/29/content_7517049.htm) according to the Guangdong Provincial Department of Labor and Social Security. Beijing’s population of migrant workers is said to top 5.1 million, about 30% of the city’s official population (http://english.people.com.cn/90001/6393304.html)

5 In reference to the migrant population and migrant births in 2005, please see this article from Shanghai Daily, March 3 2007, “Population to stay under 19m”: http://www.shanghaidaily.com/sp/article/2007/200703/20070308/article_308231.htm

6 China’s urbanization target is set by the government in the 11th Five Year Plan as needing to reach 47% by 2010, up from 43% in 2005, meaning approximately 50 million people must be urbanized. By 2030, the government wants the urbanization process to be complete (about 75% – 80% or about one billion people to be living in cities). A March 2008 McKinsey & Company report, “Preparing for China’s Urban Billion” is a good source of further information, estimating more than 350 million additional people will move to cities by 2025: http://www.mckinsey.com/mgi/publications/china_urban_summary_of_findings.asp

7 The figures of 700 to 900 million farmers / rural workers are widely reported in various places inside and outside of China, but according to China’s last official agricultural census, the results of which became available in 2008, the total number of rural people actually working in farming is significantly less, about 340 million of 480 million full-time rural workers, Xinhua reported, February 22 2008, “China saw 80 million less farmers 1996-2006”: http://www.10thnpc.org.cn/english/China/243467.htm This does not include tens of millions more who are now unemployed farmers with no other work, work only part-time, or have become migrant workers who return to their hometowns during the harvest seasons, so China’s total number of farmers is still the most significant part of the working population.

8 More information on the opening of the second terminal in March 2008, reported by Xinhua, March 26 2008, “Shanghai officially opens China’s 2nd largest air terminal”: http://news.xinhuanet.com/english/2008-03/26/content_7861957.htm

9 More information on the Three Gorges Project can be found at the official website (http://www.ctgpc.com/) or its Wikipedia entry (http://en.wikipedia.org/wiki/Three_Gorges_Dam)

10 Information about China’s rail network, the biggest in the world, is widely available. This Asia Times article provides a good overview the the current state of the railway infrastructure, February 7 2007, “China rail program takes off like a shot”: http://www.atimes.com/atimes/China_Business/IB07Cb03.html

11 In the Chinese New Year 2008 travel season, 24.5 million people were using the rail system, down slightly from the previous year because of an intense snow-storm in China that closed trains, roads, and airports for several days. More information can be found here via Xinhua, February 14 2007, “Railways carry 24 mln passengers during Spring Festival holiday” : http://english.gov.cn/2008-02/14/content_889246.htm

12 For further information on the train, please see a media report (http://travel.latimes.com/articles/la-tr-tibettrain19aug19), a travel website with details of the train schedule and fares (http://www.chinatibettrain.com/), and the luxury rail service announced in a Xinhua Report, March 9 2008, “Five-star Beijing-Tibet train service to be launched after Olympics”: http://news.xinhuanet.com/english/2008-03/09/content_7751430.htm

13 A summary of recent announcements and achievements of the Chinese road network can be found here: http://www.chinahistoryforum.com/lofiversion/index.php/t20721.html

14 For more information, see World Bank Development Indicators: http://devdata.worldbank.org/external/CPProfile.asp?PTYPE=CP&CCODE=CHN

15 A good summary of recent (2007 – 2008) regulatory actions in the mobile phone sector in China and the state of the industry was reported by Shanghai Daily, May 4 2008, “Way to go until phone industry is fair”: http://www.china.org.cn/business/2008-05/04/content_15054017.htm

16 More information on the Apple / Chine Mobile talks and their evident ending can be found at this January 15 2008 article from Australian IT, “Apple, China Mobile end iPhone talks”: http://www.australianit.news.com.au/story/0,25197,23054617-15306,00.html and a similar article from Wired: http://blog.wired.com/business/2008/01/china-mobile-an.html Another more recent report says that formal talks are still to take place. “Our door will remain open…” said China Mobile’s chairman, as reported by Xinhua, April 12 2008, “China Mobile, Apple yet to open formal talks over iPhone launch”: http://news.xinhuanet.com/english/2008-04/12/content_7966325.htm

17 The China Network Information Center has a large amount of useful data about China’s Internet. Their 21st Survey Report published in January 2008 is the most official and up-to-date at the time of writing: http://www.cnnic.net.cn/uploadfiles/pdf/2008/2/29/104126.pdf

18 A private firm, BDA China, made the estimate on the growth of Internet users reaching 220 million by February 2008, as reported by the Associated Free Press, March 13 2008, “China outsurfs the US: research firm”: http://afp.google.com/article/ALeqM5hp9rBePsLvpZWYjf4mxwVrz4DCKw

19 Source: CNNIC, see note 17.

20 Source: CNNIC, see note 17.

21 China’s response to the Asian Financial Crisis is summarized in a report by Richard Halloran in Global Beat, January 27 1998, “China’s Decisive Role in the Asian Financial Crisis”: http://www.bu.edu/globalbeat/pubs/ib24.html

22 The daughter, Yang Huiyan, controls 70% of shares in property company Country Garden. After the IPO, she became wealthier in one day than China’s previous wealthiest woman, the so-called ‘Queen of Wastepaper,’ Zhang Yin, as detailed in this article from the Asian Pacific Post, June 12 2007, “Richest Chinese woman married”: http://www.asianpacificpost.com/portal2/ff808081131b9f8b011320cb32cf0036_Richest_Chinese_woman_married.do.html

23 Shanghai Daily, December 18 2007, “Government to get 10% of SOE profits”: http://www.shanghaidaily.com/sp/article/2007/200712/20071218/article_342042.htm

24 As discussed in the article in Financial Times by Pei Minxin, November 7 2005, “China Is Paying the Price of Rising Social Unrest”: http://www.carnegieendowment.org/publications/index.cfm?fa=view&id=17677&prog=zch

25 More information about the ‘nail house’ can be found on numerous media sites, it was front-page news in many Chinese publications for its precedent-setting events. One summary from the Asia Times: http://www.atimes.com/atimes/China_Business/IC31Cb01.html

26 According the UN’s Human Development Program report on Inequality in Income or Expenditure, China’s Gini index is 46.9, while the US’s is 40.8. These values are relatively close. In Japan, a country that has a much larger middle class (i.e. less of a wealth gap) the Gini index is only 24.9. More information can be found at http://hdrstats.undp.org/indicators/147.html

27 In 2007, state media reported China closed 553 coal generators, according to Xinhua, January 2 2008, “China exceeds target in closing 43% small coal-fired plants”: http://www.ccchina.gov.cn/en/NewsInfo.asp?NewsId=10367

In 2008, the country continued its campaign, shutting 83 smaller coal generators in the first quarter, according to Chinese state media, April 25 2008, “Gov’t shuts 83 small coal-fired power plants”: http://www.china.org.cn/environment/policies_announcements/2008-04/25/content_15015693.htm

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1 Booz Allen and Shanghai American Chamber of Commerce study, March 3 2008, “China’s Shifting Competitive Advantage”: http://www.boozallen.com/news/china_manufacturing_2008

2 China National Bureau of Statistics

3 China National Bureau of Statistics

4 Wages were up sharply in the first quarter of 2008, more than 18 percent year on year, reflecting the current high growth and inflation in China, according to data from National Bureau of Statistics, April 28 2008, “Average Wage of On-Duty Staff and Workers in Urban Units Went up in the First Quarter”: http://www.stats.gov.cn/english/newsandcomingevents/t20080428_402476836.htm

Also see “The average urban wage in China rose 15 percent to 20,856 yuan (2,875 dollars) in 2006 from a year earlier, according to government data.”: http://news.xinhuanet.com/english/2008-01/21/content_7461360.htm

5 Development of the CH-DVD has had many twists and turns, and has been in the works since 2005 at least. Toshiba was said to have courted Chinese manufacturers to pick its DVD standard over Blu-Ray but this did not satisfy the most important criterion for China’s electronics industry: Avoiding paying large IP license fees to a foreign consortium as they have been doing for DVD players and other electronics. At the time of writing, there are still no commercial CH-DVD products on the market but 2008 may see their launch finally, as HD flat screen TVs have become enormously popular and inexpensive in China. For more information about CH-DVD, see the Wikipedia entry, http://en.wikipedia.org/wiki/CH-DVD, or this press release from Tsinghua University’s Optical Memory National Engineering Research Center (Mandarin version) on ZDNet China: http://stor-age.zdnet.com.cn/stor-age/2007/0907/495410.shtml and story based on a translation here: China http://www.tech2.com/india/news/optical-drives/china-develops-new-hddvd-format/15671/0

6 The largest is the US, followed by Japan, according to Ernst & Young in a 2007 report quoted in Asia Times: http://www.atimes.com/atimes/china_business/id14cb02.html

7 The Mini One was profiled in a Popular Science article, August 7 2007, “China’s iClone”: http://www.popsci.com/iclone

8 The story is long and somewhat convoluted, arising as it does in a virtual world, but has nevertheless attracted much real world publicity. Anshe Chung Studio’s published a press release announcing Graef’s millionaire status (http://www.anshechung.com/include/press/press_release251106.html) after being reported on in BusinessWeek (http://www.businessweek.com/magazine/content/06_18/b3982001.htm) and earlier at CNN (http://money.cnn.com/magazines/business2/business2_archive/2005/12/01/8364581/index.htm?cnn=yes)

9 The facility, which has been discussed for some time, broke ground on May 15th 2007, according to the Tianjin Free Trade Zone website, May 29, 2007, “Tianjin Assembly Line of Airbus A320 Series Airplane goes into operation on 15th May”: http://www2.tjftz.gov.cn/system/2007/05/29/010011906.shtml

10 LNG tankers, which carry liquefied natural gas that is compressed 600 times to liquid form by cooling it to minus 163 degrees Celsius , are one of the most technically-complex ships to construct. More information can be found on China’s self-developed LNG tankers in Shanghai Daily, May 1 2008, “China secures long-term future by building its first LNG tankers”: http://www.shanghaidaily.com/sp/article/2008/200805/20080501/article_357815.htm

11 Another survey puts this at 24 cars per 1000, versus 300 in Europe and 765 in the US. More information about China’s car market can be found in this recent article, Detroit Free Press, April 20 2008, “Competition for China’s growing auto market is heating up”: http://www.freep.com/apps/pbcs.dll/article?AID=/20080420/BUSINESS01/804200588

12 Information on the expected automotive growth rates for 2008 can be found in China Daily, April 14, 2008 , “2008 auto industry mingles hope and fears”: http://www.chinadaily.com.cn/bizchina/2008-04/14/content_6615667.htm

China’s growing demand for SUVs and other fuel-inefficient vehicles is discussed in the New York Times, Keith Bradsher, April 21 2008, “Beijing Pressures Automakers to Improve Efficiency”: http://www.nytimes.com/2008/04/21/business/worldbusiness/21auto.html?_r=3&adxnnl=1&oref=slogin&ref=business&adxnnlx=1210592544-+VdD5ERs9N7KufhRKvJhWw

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1 Turnover information from Chinese HR services firm, 51job.com, 2007, “Bosses alarmed as turnover rate tops 23 percent”: http://www.recruitmentadvertising.cn/news/150.html

2 Ibid.

3 For information about China’s compliance with WTO accession obligations, see the US Trade Representative’s annual report to Congress, December 11 2007, “2007 Report To Congress On China’s Wto Compliance”: http://www.ustr.gov/assets/Document_Library/Reports_Publications/2007/asset_upload_file625_13692.pdf

4 Li Ge and Wuxi PharmaTech profile based on author knowledge and research from China Business Weekly, March 24-30 2008, “New Prescription: A scientist turned entrepreneur is changing the face of China’s pharmaceutical R&D industry”

5 PPG, also known as Yes!PPG, has an English version online catalog at http://ppgshirt.com and Chinese version at http://ppg.cn Another source for information about PPG and KPCB can be found at: http://venturebeat.com/2007/10/19/vcs-in-china-kleiners-shirt-factory-sequoias-farm/

6 Company promotion budget revealed by a PPG executive, quoted in Shanghai Star, February 25 2008, “For PPG, Internet fails as magic wand for higher sales”

7 China’s Internet Research Center (AKA iResearch) released findings that China’s online sales were approximately 59.4 million RMB (US$8.5 billion), as reported by Xinhua via China Daily, January 22 2008, “China’s Internet shopping taking off fast: report”: http://www.chinadaily.com.cn/bizchina/2008-01/22/content_6412983.htm

According to market research firm CCID consulting, China’s 2008 eCommerce sales may hit 164 billion RMB (US$ 23 billion), as reported by Xinhua, January 23 2008, “Internet market to hit 164b yuan in 2008”: http://www.china.org.cn/english/business/240420.htm

8 China Internet Research Center website: http://english.iresearch.com.cn/html/e_commerce/Default.html

Another indicator for fast growth of C2C commerce is China’s auction giant Taobao, which more than doubled transactions in 2007, as reported by Shanghai Daily, January 23 2008, “Taobao.com transactions surge 156%”: http://www.shanghaidaily.com/sp/article/2008/200801/20080123/article_346263.htm

9 Data from March 2008 according to Nielsen Online, from Marketwire press release: http://www.marketwire.com/mw/release.do?id=843432

10 As reported in ZDNet Asia, November 26 2007, “China’s e-tail awakening”: http://www.zdnetasia.com/news/internet/0,39044908,62034851,00.htm

11 This sidebox used research from a number of sources, including a Forbes Magazine article (http://www.forbes.com/2008/01/17/retail-malls-shopping-biz-commerce-cx_tvr_0118malls.html), a Wikipedia list (http://en.wikipedia.org/wiki/List_of_largest_buildings_in_the_world), the official website of the Dongguan South China Mall. (http://www.southchinamall.com.cn/english/index1.jsp)

12 Whether in terms of outlets, sales volume, staff, or any other measure, KFC leads McDonald’s by a wide margin as of the time of writing.

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1 Chinese retail spending in 2007 was at an 11 year high, at 11.6 percent in 2007, and in the month of April 2008, year on year sales we up 22 percent, showing consumption in China is accelerating. Some of the reasons are higher incomes, investment gains in property and stocks, and government policies discouraging investments and exports, as mentioned in previous chapters. For more information, see Reuters via CNBC, May 12 2008, “Chinese Retail Sales Surge 22% in April on Year”: http://www.cnbc.com/id/24587346/site/14081545

2 The launch of Starbucks bottled coffee drinks in China was assisted by the use of a ‘Sub-opera’ played on the videoscreens of Shanghai’s subway systems called “A Sunny Day.” Each mini-episode, meant to be viewed on a single subway ride, featured product placements. More information can be found on Starbucks official website, press release dated November 1 2007, “Starbucks Bottled Frappuccino Coffee Drinks Now Available in China”: http://www.starbucks.com/aboutus/pressdesc.asp?id=800

3 A publication on the Huawei website describes the ‘wolf culture’ from an outsider’s perspective as “Huawei People = an incendiary bomb + a non-stop machine”, among other terms: http://www.huawei.com/publications/view.do?id=1420&cid=2423&pid=127

4 A worker-advocacy organization, China Labor Bulletin, has a number of mentions of apparent cases of death by overwork in China. Other than the case of Hu Xinyu at Huawei Technologies, which was widely reported in both Chinese and overseas media, we did not investigate the other cases: http://www.clb.org.hk/en/node/39002

5 For more information about China’s growing spa business, see International Herald Tribune, Joshua Kurlantzick, September 18, 2007 , “Chinese spas: A country masters the art of relaxation”: http://www.iht.com/articles/2007/09/18/arts/trchina.php

6 China is estimated to produce 60 – 90% of the world’s vitamin C, for example, and is the largest producer of a number of other synthetic vitamins and drugs. For more information, see McClatchy Newspapers via The Seattle Times, see Tim Johnson, July 3 2007, “China corners vitamin market”:


In terms of organic food, much of the food that would qualify for organic growth standards in the US and other developed countries is simply just food in China, grown as it is with low-tech fertilizers, manual labor and no processing. Whether China can regulate the industry and standardize the qualification standards is another matter.

7 Ibid. Also, for information on the vitamin price-fixing cases which opened the door for Chinese expansion into the industry, the major producers were fined in a number of countries, including the US, Canada, and EU.

See CBC, “7.7 million payout in vitamin price fixing lawsuit”: http://www.cbc.ca/news/story/2002/02/28/vitaminfixing_020228.html

Guardian, “Vitamin cartel fined for price fixing” : http://www.guardian.co.uk/money/2001/nov/21/personalfinancenews.europeanunion

8 Only 30 percent of the dishes in the Olympic Village at the Beijing Olympics will be authentic Chinese, the rest will be western food, according to the organizers. See official Olympic website, April 29 2008, “Menu for Olympic Village cafeteria revealed”: http://en.beijing2008.cn/100days/preparations/s214328527/n214330795.shtml

9 More information on the dieting trends of Chinese women can be found in this China Daily article, March 27 2008, “No hunger and no sweat” : http://www.chinadaily.com.cn/citylife/2008-03/27/content_6570380.htm

10 For more information about China’s new sexual and social trends, including male metrosexuality, see New York Times, David Barboza, March 4 2007, “China – The People’s Republic of Sex Kittens and Metrosexuals”: http://www.nytimes.com/2007/03/04/weekinreview/04barboza.html?_r=1&oref=slogin

11 More about organic rice farming can be found at the following website: http://english.eastday.com/eastday/englishedition/Districts/Chongming/userobject1ai2485373.html

12 A company press release from 24 Hour Fitness details the endorsement of Yao Ming: http://www.fitcommerce.com/Blueprint/page.aspx?pageId=276&announcementId=1157&tabId=87&tabIndex=0

13 More information about the author, Sun Wukong, the story Journey to the West (Xiyouji) and the Monkey King can be found at the Wikipedia entry: http://en.wikipedia.org/wiki/Journey_to_the_West

14 This program, sometimes called the ‘Through Train’ was initially quite limited as it could only be performed at one bank branch in Tianjin and through one brokerage. However, this program is expected to expand in the future should the pilot be successful: http://www.atimes.com/atimes/China_Business/IH22Cb01.html

15 According to information on the UK Visa Application Centre, a three month trial will start in March 2008 to lower the cost of Chinese UK visa applications, “UK cuts visa price for Chinese tourists” via press release on its website: http://www.vfs-uk-cn.com/pressRelease.aspx

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1 According to official sources, China’s two mobile phone carriers, China Mobile and China Unicom, transmitted 592 billion text messages in 2007, for an average daily total of 1.6 billion. This is the largest absolute number of text messages sent by a single country globally, but on a per capita basis China is behind the Philippines (where text messaging is also incredibly popular) but far above the usage in countries such as the US and UK. On the busiest days of the year, SMS can top 5 billion. For more information, see Xinhua, February 18 2008, “Chinese Expected to Send 17bln SMS During Spring Festival”: http://english.cri.cn/3130/2008/02/08/262@321436.htm

2 Via Xinhua, May 11 2008, “China’s smartphone market booms in Q1, sales up 4.8%” http://english.people.com.cn/90001/90776/6408262.html

3 China’s Internet Network Information Center (http://www.cnnic.net.cn/uploadfiles/pdf/2008/2/29/104126.pdf) and China Internet Research Center (http://english.iresearch.com.cn/html/instant_messenger/Default.html)

4 CAGR, the year to year growth rate may be more or less depending on the year, but generally growth has been plus 18 percent in the last several years with exceptional growth following the opening of the advertising markets. For more information, see this article from CRI, February 2 2008, “Olympics Fuel Ad-Spending Surge in China”: http://english.cri.cn/4026/2008/02/02/164@319910.htm

5 China’s WTO entry commitments required it to allow joint ventures by the end of 2003, and wholly-owned advertising agencies by the end of 2006. Virtually every large global advertising firm now has one or the other in China.

6 China’s Internet Network Information Center, press release, December 26 2007, “CNNIC Releases 2007 Survey Report on China Weblog Market Number of Blog Writers Reaches 47 million Equaling One Fourth of Total Netizens”: http://www.cnnic.cn/html/Dir/2007/12/27/4954.htm

7 At the time of writing, Xu Jinglei’s blog was number one by a large margin, with more than 153 million hits to date. Blog ranking provided by Sina.com (Mandarin): http://blog.sina.com.cn/lm/top/rank/

8 See note 6.

9 A direct link to the Google.cn page can be found here (Mandarin):


Paraphrase English translation and commentary on the phenomenon:


10 More information on these stories can be found as follows. Shanghai Daily via China Daily, March 16 2006, “High-heeled kitten killer apologizes”:


The Independent, Clifford Coonan, September 4 2006, “China’s internet vigilantes target British ex-pat cad”:


Xinhua via China Daily, March 18 2007 , “Photo of ‘extinct tiger sparks controversy”: http://www.chinadaily.com.cn/china/2007-10/18/content_6188481.htm

Shanghai Daily, April 17 2008, “Patriotic fervor swells in MSN campaign”:


11 Data from survey by Internet Society of China, as reported in Xinhua, January 21 2008, “China’s online game players to reach 59 million in 2008, survey finds”: http://news.xinhuanet.com/english/2008-01/21/content_7467275.htm

12 iReaseach, a Shanghai-based Internet research firm, pegged market share by trade volume at 83.6 percent for TaoBao,8.7 percent for TenCent’s PaiPai auction service, and 7.7 percent for eBay/Eachnet: http://english.iresearch.com.cn/html/Default.html

13 eBay paid a total of US$ 180 million in two investments, first to acquire a 33% share for US$30 million and then acquired the remaining 67% share for US$150 million. For more information, see Marketwatch, June 11 2003 “EBay buys remaining stake in EachNet” : http://www.marketwatch.com/news/story/ebay-pays-150-mln-remaining/story.aspx?guid=%7BA1A483FE-1AC6-4826-A7F9-3A8642E47814%7D

14 Yahoo! bought a 40 percent pre-IPO stake in Alibaba, parent company of TaoBao, for US$1 billion. See China Daily, August 11 2005, “Yahoo buys US$1 billion stake in Alibaba”: http://www.chinadaily.com.cn/english/doc/2005-08/11/content_468252.htm

15 Information on the formation of the joint venture between Li’s Tom.com and eBay via Tom.com Investor Relations, December 20 2006, “eBay Inc. and TOM Online Announce Joint Venture Agreement To Enable

Next Phase Of E-Commerce Growth in China”: http://pr.tom.com/pdf/20061220_en.pdf

16 As reported in Shanghai Daily via China Economic Net, May 6 2008, “eBay China’s Users Need Not Pay Fees”: http://en.ce.cn/Business/Enterprise/200805/06/t20080506_15372716.shtml

17 Data for this section comes from official 2007 company corporate earnings announcement dated March 19 2008 (http://www.tencent.com/ir/pdf/news20080319a_e.pdf ) and information about the Q-bi can be found via Wall Street Journal, March 30 2007, “QQ: China’s New Coin of the Realm?”: http://online.wsj.com/public/article/SB117519670114653518-FR_svDHxRtxkvNmGwwpouq_hl2g_20080329.html

In the first quarter of 2008, Tencent’s profits grew over 85 percent year on year.

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1 Though the Shanghai Composite Index closed off its highs reached in October 2007, it still closed out the year up 97 percent, according to Reuters, December 28 2007, “China stocks end year up 97 pct, uptrend to slow”: http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSSHA20340620071228

2 Tony Tan, a former broker turned feng shui master, correctly predicted the 2007 bull run, and predicts poor performance in the China stock markets in 2008 at least until April. Coincidentally, China’s markets made a recovery in late April off their lows, whether due to the government intervention or the feng shui forces in this year of the Rat, nobody can really say. This Bloomberg article has more details: http://www.bloomberg.com/apps/news?pid=20601213&sid=aXLferGUnAlA&refer=home

3 A comprehensive summary of all of the recent real estate regulatory actions in China in 2007 and early 2008 can be found at the following website from law firm Morrison & Foerster LLP, February 13 2008, “China: Further Changes In China’s Real Estate Regulations” : http://www.mondaq.com/article.asp?articleid=56920

4 Figures in the book differ due to various exchange rates used in conversions being reported in separate media. However, the point that China is near or greater than the US in terms of public financing remains. For example, Asia Times reports “According to data provided by PricewaterhouseCoopers, the value of IPOs in Shanghai and Shenzhen topped HK$496 billion (US$63.5 billion) in 2007 while the US market raised a total of HK$492 billion. The London Stock Exchange was third, raising HK$387 billion; Hong Kong was fourth with HK$295 billion last year.” (http://www.atimes.com/atimes/China_Business/JA10Cb01.html) This means China’s IPOs raised more than did US IPOs, but according to PricewaterhouseCoopers, directly Greater China IPOs raised 62 billion dollars in 2007, March 2007, “IPOs in Greater China raise record high of US$62 billion”: http://www.pwc.com/extweb/ncpressrelease.nsf/docid/5E94F15FBACE557C852572CA00557AE9

5 Based on share prices at the time interval indicated.

6 As reported in Asia Times, June 26, 2007, “The bubble bursts for Pu’er Tea”: http://www.atimes.com/atimes/China_Business/IF26Cb01.html

7 345,000 millionaires at the end of 2006, according to survey by Merrill Lynch as reported in AFP, October 17 2007, “China has 345,000 millionaires: study”: http://afp.google.com/article/ALeqM5ixQlU1GeghWewhn1PFb2nZwzEPPg

8 Based on data from Zero2IPO Group, a private research firm, January 23 2008, “US$3.25B VC Investment Touches New High, Fundraising & Exit Active”: http://www.zero2ipo.com.hk/china_this_week/detail.asp?id=5753

9 Venture Beat, October 19 2007, “VCs in China: Kleiner’s shirt factory, Sequoia’s farm”: http://venturebeat.com/2007/10/19/vcs-in-china-kleiners-shirt-factory-sequoias-farm/

10 The 3Com sale to Huawei was called off after a review by the US Committee For Foreign Investment in the United States, according to International Herald Tribune, February 21 2008, “Sale of 3Com to Huawei is derailed by U.S. security concerns”: http://www.iht.com/articles/2008/02/21/business/3com.php

Also see Associated Press via USAToday, February 20 2008, “3Com withdraws buyout application”: http://www.usatoday.com/money/industries/technology/2008-02-20-3com_N.htm

11 For example, nearby Asian countries such as South Korea, Japan, Malaysia and the Philippines all run trade surpluses with China. Europe overall has a large trade deficit, though trade between China and Germany is well balanced, France, UK Italy and Spain all run large deficits, according to China’s Ministry of Commerce, 2007 yearly trade statistics: http://english.mofcom.gov.cn/aarticle/statistic/ie/200802/20080205371690.html

12 For more information on the reasons why China should and should not revalue the RMB at a faster pace, see The Economist, May 17, 2007, “Lost in Translation”: http://www.economist.com/finance/displaystory.cfm?story_id=9184053

13 JP Morgan’s head of China research, Frank Gong, predicted a 10 to 15 percent rise in mid- to late-2008, as reported in Shanghai Daily, April 30 2008, “Yuan may advance 10-15%, says expert.”:


14 More information about the global activities and sizes of Sovereign Wealth Funds, see the Sovereign Wealth Fund Institute:


Also, more information about China Investment Corporation can be found from a 60 Minutes report, April 6, 2008, “China Investment An Open Book?”: http://www.cbsnews.com/stories/2008/04/04/60minutes/main3993933.shtml

15 In May 2008, the People’s Bank of China, China’s central bank, again raised the reserve ratio, to 16.5 percent. The PBOC has used the reserve ratio as its main policy tool to reign in liquidity, and will continue to do so, as reported by Thomson Financial News via CNBC, May 14 2008, “China to continue using reserve ratio hikes to control liquidity – central bank”: http://www.cnbc.com/id/24611511/for/cnbc

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1 A NASA study released in March 2008 shows clear evidence by satellite imaging of how particulate pollution spreads from China to other parts of the world via air currents in as little as ten days, according to Geology.com, March 2008, “Satellite Measures Pollution From East Asia to North America”: http://geology.com/nasa/monitoring-pollution-by-satellite.shtml

2 China has in fact accelerated its use of coal generation in 2006 and 2007, introducing dozens of new coal power plants a year even while shuttering some of the older, less-efficient ones: “‘In 2006, China put into operation 105 gigawatts, which is [equivalent to] the entire electricity generation system of France,’ [An analyst from Suez International, Mark Josz] said. He said 90 per cent of that generation was from coal plants, and China followed by adding 91 gigawatts of coal generation in 2007.” Vancouver Sun, March 13 2008, “China spurs comeback for coal as energy source, panelists say”: http://www.canada.com/vancouversun/news/story.html?id=167a9c83-5b31-44cd-bbba-4146fd8ae9f4

China’s energy generation by source and other statistics can be found at the US Department of Energy’s China page: http://www.eia.doe.gov/emeu/cabs/China/Electricity.html

3 More information on the Yangtze white dolphin, the Baiji, can be found at its Wikipedia page: http://en.wikipedia.org/wiki/Baiji

4 China has the world’s 3rd largest reserves of coal after the US and Russia. It is the world’s largest producer and consumer due to its coal-intensive power generation policy. For more information see, the Wikipedia pages on Major Coal Producing Regions (http://en.wikipedia.org/wiki/Major_coal_producing_regions#China) and the Coal Reserves page (http://en.wikipedia.org/wiki/Coal#World_coal_reserves).

5 According to Xinhua, January 16 2008, “South China province reports worsening air quality”: http://english.peopledaily.com.cn/90001/90782/90872/6339255.html

6 As reported in China Daily, January 16, 2008, “Group wants more polluters in court”: http://www.chinadaily.com.cn/china/2008-01/16/content_6396814.htm

7 There are several surveys of this kind and methodologies used. On one list, by the Blacksmith Institute, and NGO, China has only two of the top ten worst-polluted cities (http://www.blacksmithinstitute.org/ten.php), while the World Bank’s top 20 list in 2007 can be found here: http://siteresources.worldbank.org/INTDATASTA/64199955-1178226923002/21322619/LGDB2007.pdf

It is also reported on via the CBS website: http://www.cbsnews.com/stories/2007/06/06/eveningnews/main2895653.shtml

8 China, for example, mandates a common mobile phone recharger for all phones sold in China to reduce electronic waste, Shanghai keeps excess cars off the road by selling a limited number of license plates every month and uses the money raised for public transportation, and China’s new Energy Conservation Law promulgated in 2008 mandates more energy-efficient buildings, to name three regulatory or legal examples. While China does have stricter environmental laws in many areas, enforcement of those laws remains another matter.

9 According to data from the Beijing Municipal Bureau of Environmental Protection, as quoted in Shanghai Daily, May 3-4 2008, “Beijing’s air quality is improving by the day”: www.shanghaidaily.com/sp/article/2008/200805/20080503/article_358141.htm

10 In fact, China’s National Development and Reform Commission says the national target is 150 million square meters by 2010, and by 2020 should hit 300 million square meters, providing hot water to hundreds of millions of people, according to official Chinese media, March 13, 2008, “New Energy in China” : http://www1.cei.gov.cn/ce/doc/cenm/200803130536.htm

11 Information about Suntech Power via is official website: http://www.suntech-power.com/about/history.php

Also, from CNN, May 7 2007, “Shi Zhengrong: China’s sunshine boy”: http://edition.cnn.com/2007/BUSINESS/05/06/ft.suntech/index.html

12 In the past, Shenhua has licensed clean coal technology from Shell (http://www.shell.com/home/content/china-en/news_and_library/press_releases/2004/coal_casification_30032004e.html) , and had announced it was working towards a partnership with Dow to build a clean coal plant in China:


13 Some of the companies on the list included cement firms, mining companies, and chemical producers. The list was made public in China’s 21st Century Herald newspaper, via Sina.com.cn (Mandarin), February 26 2008 : http://news.sina.com.cn/c/2008-02-26/092015020772.shtml

English translation of the above article can be found at China Digital Times:


14 The case of Wuxi and Tai Lake is the exception rather than the rule when it comes to the government getting tough, but it is a very concrete example things can change. For years Wuxi had hosted polluting factories and drew its economic livelihood from them, but the pollution was just too much. More details can be found from China’s state-run media: http://english.zhb.gov.cn/zwxx/hjyw/200710/t20071008_109896.htm and http://www.china.org.cn/english/environment/227180.htm Details of the pollution blacklist can be found at http://www.china.org.cn/archive/2007-07/31/content_1219199.htm

15 Information from various government sources, as quoted in Shanghai Daily, November 22 2007, “Pollution fuels China drinking-water crisis”: http://www.shanghaidaily.com/sp/article/2007/200711/20071122/article_339013.htm

And, Wikipedia, “Water resources of the People’s Republic of China”: http://en.wikipedia.org/wiki/Water_resources_of_China

16 For more about China’s north/south water imbalance, see People’s Daily, March 10 2001, “Northern China is One of World’s Most Water Deficient Areas” : http://english.people.com.cn/english/200103/10/eng20010310_64651.html

Information about China’s drying rivers can be found at Newsweek, 2007, “Where China’s Rivers Run Dry” : http://www.newsweek.com/id/35593

17 The current plight of the Yellow River is dire, two recent reports have noted: National Geographic, May 2008, “Bitter Waters: Can China save the Yellow—its Mother River?” (http://ngm.nationalgeographic.com/2008/05/china/yellow-river/larmer-text)

Also, see New York Times, November 19 2006, “A Troubled River Mirrors China’s Path to Modernity”: http://www.nytimes.com/2006/11/19/world/asia/19yellowriver.html?_r=1&oref=slogin

18 Since 1998, China has spent billions, and increased the pace once it was awarded the Olympics in 2001. Beijing alone spent 120 billion yuan, about US$17 billion, to clean up pollution before the Olympics, as reported in Xinhua, March 11 2008, “Chinese FM spokesman: China confident of hosting clean, safe Olympics”: http://news.xinhuanet.com/english/2008-03/11/content_7767813.htm

19 According to the Beijing Olympics official website, January 27 2007, “Beijing strives for reducing energy consumption”: http://en.beijing2008.cn/35/33/article214013335.shtml

20 Regarding increase in blue sky days, see Xinhua, May 2 2008, “Beijing reports more ‘blue sky’ days in first four months”: http://news.xinhuanet.com/english/2008-05/02/content_8090524.htm

21 For more information about the planned pollution controls to be used during the Olympics, see New York Times, January 24 2008, “Smoggy Beijing Plans to Cut Traffic by Half for Olympics, Paper Says”: http://www.nytimes.com/2008/01/24/world/asia/24beijing.html

And via Xinhua, March 6 2008, “Beijing still Mulling Timing of Vehicle-cut Measure”: http://english.cri.cn/3100/2008/03/06/189@330744.htm

22 Though China signed the Kyoto Protocol agreement, technically it is not subject to its limits as China is classified as a developing country along with India and other developing nations, this was the main point of contention that kept the US from signing. There is some worry that China’s emissions are accelerating more quickly than expected, leading China to become the world’s largest carbon emitter sooner than expected. See National Geographic, March 18 2008, “China CO2 Emissions Growing Faster Than Anticipated”: http://news.nationalgeographic.com/news/2008/03/080318-china-warming.html

23 On increasing the national target for wind power generation to 100,000 MW by 2020, see Shanghai Daily via Xinhuanet.com, April 28 2008, “Fanning wind power capacity”: http://news.xinhuanet.com/english/2008-04/28/content_8065702.htm

24 The plastic bag manufacturer confirmed the closing via telephone with a Bloomberg reporter. See Bloomberg, February 26 2008, “China’s Biggest Plastic-Bag Maker Closes Down, Xinhua Reports”: http://www.bloomberg.com/apps/news?pid=20601080&sid=ayzGeRNUdBcc

25 The Shanghai Plastic Bag Company put up the notice, as reported in Shanghai Star, April 7 2008 “Plastic bag law may have silver lining”

26 More information about the Biolux biodiesel refinery planned for China at Reuters, January 14 2008, “Biolux sees huge biodiesel potential in China”: http://www.reuters.com/article/summitNews/idUSHKG32396420080114

27 This goal is provided by China’s National Development and Reform Commission (NDRC), as reported in China Daily, September 15 2007, “Renewable Energy to Be a Priority for Nation”: http://en.chinagate.com.cn/news/2007-09/15/content_8888744.htm