China Update

Via good friend Mr. Tony Tsai, CEO – BHG Retail Innovation Institute and EVP Operations – The BJ Hualian Hypermarket Co.:

"Zeng Peiyan urges establishment of free trade zone between China, Japan and South Korea to be accelerated
April 25, Zeng Peiyan, former vice premier of China, urged the establishment of a free trade zone between China, Japan and South Korea to be accelerated. He said that the three countries should enhance their cooperative partnership to deal with international risks and challenges. He made the remarks during the Northeast Asia Trilateral Forum in Hangzhou."

"China is the world's largest consumer of geothermal power
Guan Fengjun, head of the geological environment department at the Ministry of Land and Resources, said that China will further develop geothermal energy over the next five years as it steps up efforts to cut carbon emissions. China will increase the proportion of geothermal power in its energy mix to 1.7%, which is more than 10 times the current amount, by 2015. China is already the world's largest consumer of geothermal power. Consumption of geothermal energy in 2010 was equal to the consumption of 5m tons of coal."

"Development Research Center of the State Council: China's GDP will grow by 9% in 2011
The Development Research Center of the State Council published a report on Monday. It predicted that China's GDP will grow by 9% year-on-year in 2011. China's trade surplus may be further reduced to $140b, or 2% of China's GDP, in 2011."

China Update

Via good friend Mr. Tony Tsai, CEO – BHG Retail Innovation Institute and EVP Operations – The BJ Hualian Hypermarket Co.:

"China reduces holdings of US Treasury bonds two months in a row; Japan may become the "biggest creditor" of the US: The US Department of the Treasury said on Feb. 15 that China reduced its holdings of US Treasury bonds two months in a row in Nov. and Dec. last year to less than $900b. Even though China is still the biggest holder of US Treasury bonds, the gap with Japan has narrowed to less than $8b."

"State Council publishes policies encouraging development of software and integrated circuit industries: The State Council publishes a series of policies encouraging the development of software and integrated circuit industries. The State Council reiterates that the software industry and integrated circuit industry are the state's strategic emerging industries and they are an important basis for the national economy and social informationization."

Predicted (Perceived) vs. Actual Social Behavior

A grand social policy shift was made in Portugal in 2001 - The decriminalization of drug use and possession. The Economist writes:

"The place was dubbed Europe's "most shameful neighbourhood" and its "worst drugs ghetto". The Times helpfully managed to find a young British backpacker sprawled comatose on a corner. This lurid coverage was prompted by a government decision to decriminalise the personal use and possession of all drugs, including heroin and cocaine. The police were told not to arrest anyone found taking any kind of drug."

Fast forward to 2009, the Economist quotes from a report on Portugal's decision and its outcomes:

"The number of addicts registered in drug-substitution programmes has risen from 6,000 in 1999 to over 24,000 in 2008, reflecting a big rise in treatment (but not in drug use). Between 2001 and 2007 the number of Portuguese who say they have taken heroin at least once in their lives increased from just 1% to 1.1%. For most other drugs, the figures have fallen: Portugal has one of Europe’s lowest lifetime usage rates for cannabis. And most notably, heroin and other drug abuse has decreased among vulnerable younger age-groups..."

"The share of heroin users who inject the drug has also fallen, from 45% before decriminalisation to 17% now, he says, because the new law has facilitated treatment and harm-reduction programmes. Drug addicts now account for only 20% of Portugal’s HIV cases, down from 56% before. “We no longer have to work under the paradox that exists in many countries of providing support and medical care to people the law considers criminals.”"

Hats off to Portugal for bringing innovation in social policy. See more data and read the complete article here at the Economist.

Consumer Insight - Alcohol Consumption and its Future Regulation

Dr. Ayesha Haroon sends along an article "Alcohol link to one in 25 deaths" here, discussing a study conducted at the University of Toronto.  Dr. Haroon highlighted that with the release of further details, the surgeon generals of the developed countries will have to reconsider their alcohol regulations while their governments will have to review policy towards alcohol sales and consumption.  Interesting fact about Europe in the article:

"Worldwide, average alcohol consumption is around 12 units a week - but in Europe that soars to 21.5. "

Alcohol in the form of consumer products have provided capitalism with exceptional wealth creation.  Perhaps too much of anything is bound to raise an eyebrow or two!