Three Gorges project produces record electricity

Total electricity output of the world's largest hydropower project-the Three Gorges Project - has exceeded 200 billion kilowatt hours (kWh) this year, the China Three Gorges Corporation (STGC) announced.

The output is a historical high and more than twice the electricity demand of Beijing, the company said in a press release. Beijing city's electricity consumption in 2013 stood at 91.3 billion kWh.

It also said that 200 billion kWh is the equivalent of saving 100 million tons of coal and preventing the emissions of carbon dioxide and sulfur dioxide by 200 million tons and 2 million tons, respectively. (Photo 1)

Foreign automakers face supply glut

Foreign automakers in China may struggle to dictate sales targets in the future after dealers complained to the government that inflexible targets set during a market boom obliged them to buy too much stock and bear the brunt of a drop in demand.

Automakers largely stuck to targets throughout 2014, selling cars to dealers on schedule. But dealers slashed retail prices and booked losses as sales growth in the world's biggest auto market halved from the previous year's 14 percent.

"Carmakers have high market expectations. But the reality is: supply exceeds demand," said Luo Lei, deputy secretary-general of the China Automobile Dealers Association.

The report from China's biggest dealer body could help change the balance of power at a time when automakers are starting to alter expectations in an economy growing near its slowest rate in 24 years.

Monday - January 5

Xiaomi sales surge 227 percent in 2014

Chinese smartphone maker Xiaomi Inc. sold 61.12 million smartphones in 2014, up 227 percent year on year, company founder and chief executive officer (CEO) Lei Jun said Sunday.

Total sales revenue with tax reached 74.3 billion yuan ($12 billion), up 135 percent year on year, Lei said in an open e-mail to the company's employees. Sales of the brand expanded to six countries and regions over the past year, including Malaysia, Singapore and the Philippines.

The company was valued at $45 billion in the new round of financing late December.

The announcement comes as the company released its new model, Redmi 2, on Sunday for 699 yuan, considerably cheaper than its other models. (Photo 2)

12 suicides by investors prevented

Three venture capitalists were arrested after 12 of their investors attempted suicide in north China's Shanxi province, local authorities said..

The trio from venture capital firm Shanxi Heli were arrested for illegal fundraising.

The case caused public attention after 12 cheated investors climbed onto the top of the six-story office building of the development and reform commission of Shuozhou city Sunday morning, with the intention to jump off. They were later stopped by local police, firefighters and officials.

An official with the publicity department said the 12 people were seeking government intervention after Ma Aibin, the boss of Heli, took off with their investment money.

Police didn't give detailed information about the three suspects. They are hunting for Ma, who is still on the run.

Tuesday - January 6

Car use reform goes deeper

China's government vehicle-use reform is shifting to the local government level, but more effort is needed to ensure it achieves its full potential, said officials.

Reform at the central government level was successful in 2014 and the next stage is expected to finish by the end of 2015, according to the timetable set by central authorities in July 2014.

Officials below ministerial level will no longer be provided with a car and a driver and public servants will now receive a "proper" allowance to cover their own choice of transportation.

The use of government vehicles for private purposes, once a common practice, has been labeled "corruption on wheels", new measures aim to address this issue.

Market will now determine tobacco prices

China has announced that procurement prices for tobacco leaves will now be set by supply and demand, in a country where one-third of the world's cigarettes are consumed but where sales of high-end cigarettes have dropped during the recent corruption crackdown.

Tobacco companies are now allowed to independently set procurement prices on tobacco leaves based on companies' revenues and demands, instead of purchasing the leaves at prices set by the government, according to a government statement.

"Tobacco companies have formed long-term common interests with tobacco farmers, and it will be more reasonable to allow them to set prices," said Wang Shengmin, an official of the NDRC's price department.

Annual production of leaf tobacco in China is around 2.5 million metric tons per year, with a total value of less than 100 billion yuan ($16.1 billion), he said.

Wednesday - January 7

Fertilization agencies seek university donors

Illegal human fertilization agencies in China are expanding their services to students in well-known universities, looking for donated eggs from beautiful female students with high intelligence.

In Beijing, a black market for collecting eggs from female students at renowned universities also exists. Clients usually pay the agency 40,000 ($6,422) to 80,000 yuan, but donors see little of the money because most of it is deducted by the agencies, according to Beijing News.

Agencies post advertisements on the street or on the online bulletin board systems of universities. Online messenger is the main communication tool between agencies and donors. Clients usually ask to meet the donors before the egg donation. If donations are done on the black market, donors have no legal protection.

Chinese will travel more in 2015: Analyst

Chinese consumers are expected to increase the number of international trips they take in 2015 as they spend more money on experience and well-being, and continue to invest heavily in real estate and global education, according to China analyst Michael Zakkour.

Zakkour, the principal of the China/Asia Pacific practice at consulting firm Tompkins International, said that 2015 will see even more travel from Chinese, who are already the biggest spenders per capita per trip outside of China. On average, the Chinese traveler spends about $7,000-$8,000 per capita per trip, compared to the $3,000 that US travelers spend.

"Not only is the overall number going to grow, but we also predict that rather than making two trips outbound from China, the average traveler will make four outbound trips per year," Zakkour said.

Thursday - January 8

Millions paid for wrongful convictions

The central government paid almost 90 million yuan ($14.5 million) in compensation in one year to people convicted of crimes they were later proved not to have committed, according to recently released data.

Up to 825 individuals received such compensation in 2013, costing 87.35 million yuan, an amount roughly equal to the value of 248,000 barrels of oil.

The 2013 work report of the Supreme People's Court said courts heard 2,045 cases relating to State compensation for these and other cases where individuals were unduly harmed through government actions.

In 2012, 2,035 cases involved State compensation of about 50 million yuan, a Supreme People's Court official said.

Government may regulate e-cigarettes

China is considering bringing electronic cigarettes under state management to ensure a standardized and well-regulated development of the popular smoking alternative, according to an official of the State Tobacco Monopoly Administration.

Li Baojiang, deputy director of the administration's economic research institute told China Daily there is currently a lack of regulation and standards for e-cigarettes across the nation.

"Regulating e-cigarettes, like traditional tobacco products under the State monopoly, is highly feasible. And that helps with consumer safety and rights, product quality control and the government coffers," he said.

China had roughly 900 e-cigarette manufacturers by the end of 2013, up 200 percent over the previous year. Exports amounted to 3.5 billion yuan ($560 million) the same year, up 150 percent over 2012. Worldwide, more than 80 percent of the e-cigarettes in a market worth $3 billion are made in China. (Photo 3)