Highlights of commentary pieces from the Dec 12, 2011 issue of the Economic Observer

Making School Buses Safe
By Liu Jinsong (劉金松), a reporter with the EO
Economic Observer Online
Translated by Zhu Na
Original article: [Chinese]

In the past month, a series of school bus accidents have occurred across the country, with crashes in Liaoning, Henan, Guangdong and Jiangsu.

School bus safety checks are only being carried out for the sake of appearances and when holding authorities accountable for any accidents, things never really go very far. The core of the problem is that local governments lack motivation to seriously tackle the issue of school bus safety.

If local governments were to invest half as much energy in ensuring school bus safety, as they do to possessing land and demolishing houses, then accidents might not happen so often.

Food Safety - The Joke's on Us
By Sheng Chao (盛超), an online editor with the EO
Nation, Page 15
Translated by Zhu Na
Original article: [Chinese]

There appears to be a double standard in the way our country's food safety standards are being implemented. There is one standard for food that we sell abroad, 99 percent of which reaches strict international standards - safe and dependable; the other standard is for food consumed domestically, which can be adjusted at the whim of producers according to the difficulties their facing, so that we often meet seious problems with the food we eat everyday.

We Want the Facts about Hot Money Flows
By Ouyang Xiaohong (歐陽曉紅), a finance reporter with the EO
Nation, page 15
Translated by Zhu Na
Original article: [Chinese]

When hot money enters China, we worry. When hot money starts flowing back out, we're also worried.

Given the fluctuations in global financial markets, how come we manage to keep our heads? We shouldn't let market speculation cloud our judgment of what's really going on. We believe the only effective way to help people to remain calm, is for an official voice to inform everyone about what exactly is going on. Is hot money really starting to leave China? How much is likely to leave?

An Argument for Slower Growth
By Fan Wei (范為), chief economist with Hong Yuan Securities
Nation, page 16
Translated by Zhu Na
Original article: [Chinese]

Should we loosen monetary policy in order to maintain economic growth or alternatively sacrifice a little bit of economic growth in order to continue to battle inflation, to protect the wealth of the people and to protect the RMB?

No doubt, we should choose the latter. This is because if we release more currency, aside from allowing inflation to once again peak and thus erode people's wealth and purchasing power, it will also mean that the RMB exchange rate will come under attack from hot money. The only way out is to slow down China's economic growth so that China can adjust it's economic structure and make sure prices are stabilized.