AT HIS FIN GERTIPS BALANCING TWO
ROLES PE RFECTLY, P24
VOL 2 • NO 39
ON TR AC K
INTER-CONT SILK ROA INENTAL RAILWAY D’ BY BRID GING BUS PROMISES TO BE ‘NEW INESSES OF EAST, WES T
By ALEX IS HOOI
Legend has it that Chine west of his se emper rich produ vast empire and procla or Han Wu Di (156 BC-87 ce imed them That regal of China”. with people BC) once looked to the who placed work of tradinobservation soon spurred explor “great value lands The histor g routes between on the ation but there ic route declined the East and West of those foreign lands, are that came in leading to latest additi now renewed eff the centuries that to orts to revive followed be known as the Silk a neton as Connecting to the Eurasian Road. Land Bridge the continental maritime trade increa link — this Belgium, the major Lianyu time throug sed, ngang port rail. the railwa y is being h the in East China ’s Jiangsu goods betwe promoted as a shorter, more province en China to and Europ distant efficient way China’s easter e. Lianyungang to lies near thetransport n coastline, center where of ern econo the count mic and ry’s southhave helped manufacturing hubs inces like enrich cities in provJiangsu and >>BRIDGE Zhejiang. , PAGE 4
China Daily USA Weekly
Inter-continental railway promises to be ‘New Silk Road’ by bridging businesses of East and West
WEEKEND LI MIN /
FRIDAY-SUNDAY, June 8-10, 2012
chinadailyusa.com $ 1
Interest rates cut to stabilize Central bank takes ‘bold, innovative’ decision to stimulate economy By WANG XIAOTIAN in Beijing, ZHANG YUWEI and ARIEL TUNG in New York
CONG YAN / FOR CHINA DAILY
Stephen Tan from Beijing leaves a Macy’s store in New York. He said his friends recommended Macy’s to him, and he likes the store’s choice of high-quality brands.
Macy’s parades online into China By ARIEL TUNG in New York
China’s e-commerce market is proving irresistible to Western retailers, including the giant Macy’s Inc, which is investing $15 million in the Chinese online seller VIPStore Co in a venture also supported by the investment arm of the US-based chip maker Intel Corp. Besides acquiring a minority stake in VIPStore, Macy’s will begin selling private-label merchandise in China next spring on Omei.com, a website that is operated by VIPStore and sells Western luxury and fashion goods. Macy’s, in announcing its deal with Intel Capital on May
23, said this is its first foray into a foreign market. Another division of the company, the highend retailer Bloomingdale’s, operates two stores in Dubai. In China, the value of e-commerce sales this year is expected to reach $169 billion, according to a recent forecast by Zia Daniell Wigder, an analyst with Forrester Research. The value of online sales in the Asia-Pacific region, the biggest market for such transactions, is likely to reach $356 billion in 2016, the report said. The deal with VIPStore will give Macy’s a means of learning more about Chinese consumers’ shopping habits and preferences, said Terry Lundgren, Macy’s chairman and chief executive officer. “Our relationship with
VIPStore will allow us to gain additional experience in the fast-growing Chinese market, and to better understand how consumers across China interact with Macy’s and the products we sell,” he said. Founded in 2009, VIPStore is one of the leading online retailers of luxury brands in China. It also operates Jiapin. com, which sells high-end goods at a discount for certain periods of time. The Macy’s section on Omei.com will offer its INC brand of women’s and men’s apparel before adding other private labels owned by Macy’s. Jon Bond, VIPStore’s head of business development, called the move “a smart way SEE “MACY’S” PAGE 2
MACY’S 2012 SALES Unit: $billion 2.5 2.0
SCO will be ‘fortress of security and stability’
0.5 0 February
Change 8% 6%
2% 0 February
Source: Macy’s Inc
May ZHANG YE / CHINA DAILY
Bears to be released into natural habitat, Jiang Xueqing and Huang Zhiling report from Wolong and Dujiangyan, Sichuan province.
of the road means that very few tourists ever visit Wolong. Tao Tao, a male panda cub aged almost 2 years, lives with his mother, Cao Cao in this isolated place that boasts scenery reminiscent of the elf kingdom in Lord of the Rings, and has seen few human visitors in the last four years. Born in captivity on Aug 3, 2010, Tao Tao has been undergoing training in field survival techniques with the help of researchers from the China Conservation and Research Center for the Giant Panda almost since the day of his
birth. The plan is to send him into the wilds of Ya’an, Sichuan province, by the end of October. Pandas are an endangered species. According to Huang Yan, deputy chief engineer of the center, captive-bred pandas number just 328 and there are only around 1,600 in the wild. The wild pandas are scattered across the provinces of Sichuan, Gansu and Shaanxi. During the past 10 years, human activity, mainly in the form of roads and highspeed rail tracks, has cut into their habitat and divided the
SEE “RATE” PAGE 2
Pandas set to take a walk on the wild side t took at least two hours for our all-terrain vehicle to bump along the rugged mountain road from Dujiangyan, a city near Chengdu in Sichuan province, to the Wolong FOCUS National Nature Reserve. Devastated by the 2008 Wenchuan earthquake and subsequent mudslides, the dangerous state
The central bank has cut interest rates for the first time since December 2008 to stabilize growth and prevent the economy from slowing further. The People’s Bank of China announced Inside the lowering of Comment, interest rates by page 12 25 basis points, effective on Friday. The benchmark one-year lending rate will drop to 6.31 percent from 6.56 and the oneyear deposit rate will fall to 3.25 percent from 3.5 percent. “The move appears to be bold and innovative, indicating that the monetary authorities believe inflation is declining but still a concern,’’ said Liu Ligang, head of China economics at the Australia and New Zealand Banking Group Ltd.
“Beijing realized if lending costs cannot be effectively cooled, China will face further economic slowdown,” Liu said. Brian Lawson, chief economist at London-based Exclusive Analysis, said the interest rate cut fits naturally within the overall policy approach of providing stimulus in periods of slowdown. “China is suffering along with everyone else from the recession in Europe, and from modest growth elsewhere,” he said. “We would expect Chinese policy measures to be consistent but gradual — and only to accelerate if the global economy appears to face additional downward pressure from shocks; for example, if Greece leaves the euro.” US and European stocks opened higher on Thursday after China announced the rate cuts.
FENG YONGBIN / CHINA DAILY
Liu Xiaoqiang (left) and Wang Xiaojun get down to the “bear essentials’’ as they monitor pandas in the Wolong National Nature Reserve in Sichuan province last month. The trainers use disguise as they prepare pandas for life in the wild.
wild pandas into more than 30 small groups. “We have no choice but to release captive-bred pandas into the wild to protect the natural environment,” said Huang. “By providing wilderness-survival training
for these animals, we hope to introduce them into a number of small groups, helping to increase the wild population and maintain their genetic diversity.” SEE “PANDA SCHOOL” PAGE 7
By WU JIAO, ZHOU WA and CUI HAIPEI
The Shanghai Cooperation Organization granted Afghanistan observer status on Thursday as President Hu Jintao said the bloc aimed to become a “fortress of regional security and stability and a driving force of regional ecoInside nomic develop• Full ment”. coverage, The current page 3 summit of the • Editorial, organization in page 11 Beijing, which witnessed the signing of agreements covering security, politics and the economies of the members, will be a landmark in the bloc’s history as it set out a clear vision of its direction, analysts said. By granting observer status to Afghanistan, the SCO, which groups China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan, consolidated ties with the war-torn country ahead of the pullout of most foreign troops by the end of 2014. The organization also announced that Turkey, a NATO member, will join Sri Lanka and Belarus as a dialogue partner. Observer status will strengthen “political, economic and civilian cooperation between the SCO states and Afghanistan,” Vice-Minister of Foreign Affairs Cheng Guoping said after the summit.
Central Asia’s stability is a pressing issue for the regional bloc, analysts said, especially considering the turmoil in the Middle East and the withdrawal of troops from Afghanistan. Chen Yurong, a researcher of regional affairs with the Institute of International Studies, said as the security situation in Central Asia has changed, the SCO must revise security policies. The participation of Afghanistan and Turkey enlarges the region that the SCO covers geographically and increases the bloc’s global influence, Chen said. But some analysts suggested that the SCO should be cautious about more participants, as it could undermine the bloc’s capability given the sharp economic and historical differences between some countries. The SCO on Thursday also recommitted itself to closer security ties by adopting a 201315 anti-terrorism plan and establishing a swift response mechanism. The mechanism allows SCO members to request the help of other members to handle domestic emergencies. It “will considerably boost the SCO’s ability to prevent and tackle emergencies”, a diplomatic source said. Hu told the summit that “we should establish and improve a system of security cooperation’’. SEE “SUMMIT” PAGE 3