Electricity Bureaus Shut as China Energy Sector Shake-Up Begins

The government has begun closing provincial power bureaus as part of a strategy to loosen its hold on the energy sector, according to state media.

So far, 27 power bureaus have handed over their administrative functions to provincial trade and economic commissions, the China Daily Business Weekly quoted Shi Yubo, head of the electric power department at the State Economic and Trade Commission, as saying.

Four bureaus that are left are expected to do the same before the end of the year.

"The reform is a strategic move to gradually withdraw the government's control over the power sector," the paper reported, citing observers.

Consumers could expect average price reductions of 20 per cent if the energy sector is opened to full competition, the paper added.

"The cost saved from the competition will be passed on to consumers, especially those enterprises with high power consumption," Mr Shi was quoted as saying.

The latest developments in the power sector follow reforms in other industries previously under tight government control, such as telecommunications, where competition is now allowed.

The next step in the reform process will be to make power companies more efficient by giving them better access to funding, the paper said.

It reported that the government is trying to make it easier for power companies to go public and to attract foreign investment.

Early this year the government began a series of experiments to separate power generation from transmission and distribution.

In the experiments, taking place in Shanghai and five eastern and northeastern provinces, power generators must compete with each other for access to power transmission grids.

The pilot project has already led to cuts in the price of power for local consumers and will be extended to other provinces next year, according to previous media reports.

(South China Morning Post)

China's Windfall

China Seeks Caucasian Crisis Windfall
A geopolitical convulsion measuring six points on the Richter scale is bound to produce aftershocks. The reverberations of the conflict in the Caucasus are beginning to be felt. We may be unwittingly bidding farewell to the "war on terror". In any case, the international community has lost interest in Osama bin Laden. The United States has spotted a promising new enemy on the horizon and an engrossing war may be offering itself, with infinite possibilities. Needed: a new war doctrine. As often enough, Britain may be putting it all together. British Foreign Secretary David Miliband said in Churchillian tones, "The aggressive Russian force beyond South Ossetian borders has been something that really shocked many people ... The sight of Russian tanks in Gori, Russian tanks in Senaki, the Russian blockade of the Georgian port of Poti, is a chilling reminder of times that I think we had hoped had gone by." US Secretary of State Condoleezza Rice, on a visit to the Georgian capital Tbilisi, promptly echoed Miliband, recalling the Soviet intervention in Czechoslovakia in 1968. But, that is looking ahead. For a start, Poland has met with success, finally, in locating a guarantor for its historically indefensible kresy (eastern borderlands) along the line from Dniester to the Dnieper River. Last Friday, the United States and Poland reached an agreement of "mutual commitment" whereby the two countries will come to each other's assistance "in case of trouble". At first glance, it may appear doubtful Warsaw can do much if Venezuela's Hugo Chavez causes trouble for Washington. (Cont)
Source: Asia Times, M K Bhadrakumar
http://www.atimes.com/atimes/Central_Asia/JH19Ag01.html

China's Top Legislature Starts Five-Day Session On Aug. 25
The Standing Committee of the National People's Congress (NPC), China's top legislature, will start a five-day session on Aug. 25 to review draft laws on food safety and recycling, among other issues. The Fourth Session of the 11th NPC will meet here in the capital. Five bills are likely to be debated. These are draft laws on food safety and recycling, an amendment to the Criminal Law, a revised edition of the Insurance Law and a draft of the revision of the Patent Law. According to the recommended schedule submitted at Monday's meeting of NPC Standing Committee chairpersons, the NPC will also discuss an additional protocol to the Organization Law of the Union Postale Universelle and three conventions on criminal judicial assistance with Namibia, Brazil and Japan. The session will review several reports of the State Council, or the cabinet, on increasing farmers' income, the protection of minors, the 2007 central budget. Wu Bangguo, chairman of the NPC Standing Committee, presided over Monday's meeting.
Source: Xinhua
http://english.people.com.cn/90001/90776/90785/6479412.html
Colliery Gas Explosion Traps 24 In NE China
SHENYANG - A gas explosion left 24 miners trapped in a colliery in northeast China's Liaoning Province on Monday, according to the provincial work safety supervision authorities. The accident occurred at about 9:30 am in Baijiagou colliery, in Faku county. A total 56 miners escaped without injury. A rescue operation is underway.
Source: Xinhua
http://www.chinadaily.com.cn/china/2008-08/18/content_6947186.htm
Environment Remains Priority
BEIJING -- The environment must remain a top priority as the country forges ahead in its development, Premier Wen Jiabao said during a visit to an industrial base in the Ningxia Hui autonomous region over the weekend. Wen cited the coal-rich Ning Dong industrial area, earmarked to become a major power-generation base, as one example under the ongoing green drive. "We will not only build a coal, chemical, and power base, but also develop a recycling base here," Wen said while visiting the Ning Dong Energy and Chemical Industrial Base. The premier's three-day visit, starting last Friday, came two months before the 50th anniversary of the founding of the autonomous region, which took place on Oct 23, 1958. Lying about 60 km to the southeast of Yinchuan, Ningxia's capital, the construction of the Ning Dong base was named the region's "No 1 project" in 2003, with its largest power base situated in the area. Explored coal reserves in Ningxia are reportedly 31 billion tons alone, while estimated coal reserves are 200.7 billion tons, ranking sixth and fifth, respectively, in the country. While Ning Dong' explored coal reserves form 88 percent of the region's total, the large supplies have also posed a major challenge to environmental protection in the area. During his visit to the base, Wen said building a recycling economy is a key feature of industrialization in these times. (Cont)
Source: China Daily
http://news.xinhuanet.com/english/2008-08/18/content_9461634.htm
Hui Calls For Int'l Cooperation On Food Security