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China Suspends Imports

of Certain U.S. Frozen Meat Products

Officials of Chinas General Administration of Quality Supervision, Inspection and Quarantine have repeatedly announced recently that certain food imports from the U.S. are not secure. Officials claim frozen poultry and pork from Tyson Foods Inc., the worlds largest meat processor, are contaminated with salmonella. Problems were also found in products of six other American food companies. Frozen pork ribs from Cargill Meat Solutions Corp. contained a leanness-enhancing additive, while frozen pig ears from Van Luin Foods Inc. were found to contain the leanness-enhancing additive ractopamine. Sausages from Thumph Foods were also found to contain ractopamine. Officials said Cargill and Van Luin were given 45 days to correct the contamination problems, while the other companies were suspended from importing, though officials did not say for how long.

Shortfall in the Supply of

Housing Loans Predicted

for 2008

According to statistics provided by real-estate advisor DTZ, in the first half of this year the amount of housing sales in 10 major Chinese cities, including Beijing, Shanghai, Shenzhen and Guangzhou, dropped by 41 percent, while housing sales in Shenzhen plunged by 56 percent. Housing prices across China have decreased by 31 percent. Yet the same report shows that the ratio between housing prices and the average annual income of an urban family is still 6.98. Three to six is generally considered a reasonable range. According to Jiang Shangli, manager of the Comprehensive Housing Service of DTZ China, the Central Banks recent raising of the deposit reserve ratio and other tighter monetary policies mean that the capital equivalent of two years worth of loans is frozen. Jiang adds: “Around two-thirds of the annual credit quota for housing purchases was used up in the first half of 2008. An estimated RMB 880 billion will be loaned out this year, leaving an estimated shortfall of RMB 300 billion.” The report, therefore, predicts the housing market readjustment would last more than a year.

China Has 15 Million

Teenage Smokers

The Ministry of Health has issued its 2008 China Tobacco Control Report, which claims about 15 million of the countrys 130 million teenagers are addicted to nicotine, around 40 million have tried smoking, and as many as 65 million are exposed to the harmful effects of secondhand smoke. The number of female students who have tried smoking or who smoke regularly is increasing. The report says tobacco advertisements are partly to blame for the rising rate of young tobacco addicts, because the ads target youths by associating smoking with energy, glamour, independence and sex appeal. The National Center for Disease Control and Prevention investigated eight popular TV dramas and 10 films in 2003 and found that actors smoked in an average of 165 scenes per TV drama series, while the films featured an average of 26 smoking scenes each.

China Becomes Main Target of Anti-dumping Probes

According to a report released by the World Trade Organization (WTO), China was targeted in 40 of the 101 anti-dumping investigations launched by WTO members worldwide last year, making it the most frequent target of anti-dumping probes. The machinery and equipment sector was the main focus of investigation, followed by chemicals, textiles and base metals, the report said. Chinese products were also the most frequent target of other countervailing measures, including anti-subsidy campaigns, market access disputes and import quotas.