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What Mattered 2005

2005/12/15
text by Mercy Sun

2005 was an eventful year that will long reside in our memories. As always, our lives were touched by both good and ill, but some things stand out because they are laden with meaning. Their effects will linger and, perhaps, provoke us to action. After a great deal of soul-searching and debate, the Business Beijing staff picked these as the most important events affecting our lives in Beijing in 2005.

Nation Battles Bird Flu

The threat of avian influenza or “bird flu" is sowing fear worldwide, and China is no exception. The epidemic has hit Guangxi, Liaoning, Sichuan, Anhui, Inner Mongolia and several other provinces and regions. Two human deaths have been reported and millions of fowl have been culled. Beijing, the Chinese capital, has been spared so far.

The nationwide fight against bird flu received a strong shot in the arm on November 2, when the government earmarked a special fund of 2 billion yuan (US$246.6 million) for epidemic control.

"We must realize the severe and compelling situation in bird flu control, maintain high vigilance, and never let down our guard"said a statement from a State Council meeting held on November 2 in Beijing, presided over by Premier Wen Jiabao.

In addition to funding, the State Council said, any failure, delay or cover-up in reporting outbreaks will be dealt with harshly.

In case of a new outbreak, measures such as culling, disinfection and quarantine should follow immediately to eradicate any infection at the site, the statement said.

 

10th National Games

The 10th National Games ended in Nanning on October 23 after 12 days' of intense competition.

With less than three years remaining before the 2008 Beijing Summer Olympic Games, the quadrennial sports meet was widely regarded as a rehearsal for the Beijing Olympics.

Host Jiangsu Province topped the medal standings with 56 golds, Guangdong was second with 46 and the Chinese People's Liberation Army was third with 44.

Six world records were broken in the Games and another six were equalled. Five Asian records were rewritten and another five were levelled.

The 10th Games, the largest ever in history and the first that the host was decided by bidding, attracted 9,986 athletes and featured 32 events, including all 28 summer Olympic events.

 

Olympic Mascots

Public participation was epitomized when the Beijing Organizing Committee for the XXIX Olympiad (BOCOG) unveiled the Friendlies, the official mascots of the Beijing 2008 Olympic Games, on November 11.

The mascots' introduction stirred the nation, resulted in the creation of an enthusiastic atmosphere, showcased the zest of the Chinese people for the Olympic Games, kept their manufacturers busy and helped to raise more funds for Beijing Games preparations. Thus, the mascot unveiling was one of the most delightful of all the 2005 Olympic-preparation activities.

The emergence of the Friendlies, which signify that "Beijing Welcomes You," marked the 1,000th-day countdown to August 8, 2008, the day the Beijing 2008 Olympic Games will commence.

The Friendlies include: Beibei a fish, Jingjing a panda, Huanhuan the Olympic flame, Yingying a Tibetan antelope, Nini a swallow. If the first characters of their names are read in order, they read Beijing Huanying Ni in Chinese, meaning "Beijing Welcomes You." The colour of each mascot accords with the colours of the five Olympic Rings.

In Chinese tradition, the number five has special significance. The Friendlies, for instance, represent what the ancients believed were the five elements of nature--the forest, sea, fire, earth and sky--all stylistically rendered in ways that reflect the deep traditional influences of Chinese folk art and ornamentation.

The number is also related to the "five elements"or "five permutations of being"(wu xing)––metal, wood, water, fire and earth–which many ancient Chinese believed were intimately involved with the origin of the world, and to the "five gifts"--riches, long life, peace and quiet, virtue and a life without sickness. 

After their introduction in licensed Olympic stores, the five Friendlies sold out like hot tea in a cold day, as did accompanying Olympic-mascot-related merchandise. At last report, numerous consumers were reported still searching and waiting for additional mascot dolls and other mascot-related items such as pins, satchels, bags, clothing. So one of the principles of the Beijing Olympic Games has in some small part been achieved, that of increasing public awareness and appreciation for the 2008 Games.

 

Food Safety 

The issue of food safety came to the fore in 2005. Foreign food industry giants got into hot water.

In late May, excess iodine was found in some of Nestle's milk powder the company sells in China. Nestle removed the affected milk powder from the stores shelves and issued a public statement. "We apologize for the mistake in deviating from the National Standard regarding the content of iodine in some Nestle milk-based powder products," the statement said. "While there is no safety or health issue, we recognize that this deviation has caused some concerns amongst consumers and the public at large." "Sudan Red," an industrial dye, had virtually been unknown to the ordinary Chinese until the British Food Standard Agency in February published a list of 459 foods contaminated by the industrial dye. In response, China's General Administration of Quality Supervision, Inspection and Quarantine issued an emergency notice requiring inspectors nationwide to strictly check suspected imported and exported food products. The campaign soon penetrated into all food producing processes. It came to a peak when KFC, a chain with 1,200 outlets in 260 cities across China, was involved. Two popular KFC products were found to be contaminated with the dye by way of a flavouring powder.

All foods contaminated by Sudan Red were destroyed. But, experts said, China must continue to do its utmost to ensure food safety. "This could not be more important for a country with 1.3 billion people," said Associate Professor Cai Meiqin at the Shanghai No. 2 Medical University.

 

RMB Revaluation

At 7 p.m. on July 21, 2005, the People's Bank of China (PBOC) announced a revaluation of the Chinese renminbi (RMB) or yuan currency, a first since the renminbi was pegged to the US dollar in 1994. The Chinese currency was revalued by 2.1 percent to 8.11 yuan to the US dollar from 8.28 yuan. The yuan's exchange rate is now allowed to float within a specific range that is tied to a "basket of currencies."

The revaluation of the Chinese currency caused a stir in global financial markets and eased financial relations with the United States. It received positive comments from the world over and was seen as a significant step taken by China toward reforming its foreign exchange system.

 

AIDS

China launched an AIDS awareness campaign, targeting rural laborers working in cities on December 2, the 18th World AIDS Day.

"Although China has made progress in the prevention and treatment of AIDS, the epidemic still does not allow for the slightest bit of optimism,"Chinese Vice-Premier Wu Yi said at the kickoff of the campaign in Beijing.

By the end of September, 135,630 cases of HIV infection had been reported in China.

China has 120 million rural laborers working in urban areas and a lot more are expected to flow into cities and towns in the coming years. Many of them are sexually active but have a poor understanding of communicable diseases such as HIV/AIDS.

 

Supergirl

They called it "The Mengniu Sour Yogurt Supergirl" contest, and for much of this year this talent search was one of the hottest shows on Chinese television.

By the time it ended in August, more than 400 million viewers had tuned in, making it one of the most-watched shows in China's television history and creating another blockbuster hit for a group of daring television producers at Hunan Satellite TV.

No one really knows why a search for a new female pop star gripped much of the nation, but analysts in Beijing said that, in addition to capturing the pulse of China's increasingly trendy youth, the producers allowed people to do something quite remarkable in China: cast their own vote, albeit for a pop idol.

More than 120,000 women in five provinces participated. And the show got a huge promotional lift from Mengniu, China's biggest dairy company, which sponsored the show, hence the name "Mengniu Sour Yogurt Supergirl." Much of its success may have come from the sassy and slightly rebellious nature of some of the women who made it to the finals, particularly Li Yuchun, a lanky, spiky-haired 21-year-old winner from Sichuan.

 

Shenzhou VI

The Shenzhou VI space module, with astronauts Fei Junlong and Nie Haisheng aboard, touched down as planned on its main landing field in the Central Inner Mongolia Autonomous Region on October 17 after a five-day flight. This, China's first multiman, multiday spaceflight, advanced the nation's space programme one step closer to a loftier goal, that of enabling Chinese astronauts to live and work in space.

 

Personal Income Tax Threshold

China's top legislature, the National People's Congress, in 2005 decided to make 1,600 yuan (US$197) per month a new personal income tax threshold above which wage earners must pay personal income taxes. The previous threshold was 800 yuan (US$99). China has more than 340 million people who live on wages and salaries.

The legislative move was expected to enhance the building of a more "harmonious society" and to provide a greater share of the benefits of China's prospering society to those who have the least. The move comes at a time when the income gap between China’s rich and poor appears to be widening.

Personal income taxes were first imposed in 1980 after the country's residents jettisoned extreme egalitarianism and began accumulating personal wealth, some greatly, in line with the development of the country's socialist-market economy. The cut-off level of 800 yuan was set in 1993. Since then, national economic and personal income landscapes have undergone profound changes. In large cities such as Beijing and Shanghai, 800 yuan is just enough for one person to make ends meet.

 

FORTUNE Global Forum

The 2005 FORTUNE Global Forum was successfully held in May in Beijing.

"This forum enables international investors and entrepreneurs to know more about China, which is very useful for their future investment directions,"said Zhao Qizheng, head of the State Council Information Office.

It was the second FORTUNE Global Forum ever held on the Chinese mainland. The 1999 forum was held in Shanghai and another was held in Hong Kong in 2001.

 



 
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