Nationwide Emissions Trading Scheme

Oriental Outlook Issue No.27， 2017

China will launch a nationwide carbon emissions trading market later this year as a measure to fulfill the countrys commitment to green development.

The establishment of a global ETS （Emissions Trading Scheme） is conducive to the better allocation of resources and improved controls of greenhouse gas emissions. Some people consider the ETS to be a device for inhibiting developing countries and manufacturing enterprises. Manufacturers with high energy consumption and heavy pollution often need to buy more credits to cover their emissions. These enterprises mostly operate in developing countries， such as China， a large manufacturing nation.

Chinas establishment of a national carbon emissions trading scheme is a key measure to tackling climate change. The country stated in its 12th Five-Year Plan that efforts would be made to substantially cut energy intensity （energy consumption per unit of GDP） and carbon intensity （carbon emissions per unit of GDP）， and gradually establish a carbon emissions trading market.

The new Chinese emissions trading market is expected to involve total carbon emissions of around 4.5 billion tons， which makes up around 50 percent of the countrys fossil fuel carbon emissions. Operating on this scale means that the market will replace the EU ETS as the largest carbon emissions trading market on the planet.

Establishing the market will allow China to achieve its emission reduction target and fulfill its commitment to combating climate change by raising the carbon productivity of high-energyconsuming enterprises， thereby promoting low-carbon development and facilitating the supply-side reform.

Challenges still remain， as there are no examples to follow in terms of how the largest emissions trading market in the world can be operated in the largest manufacturing country. However， the market， once established by China， will be sure to offer precious experience to the world in terms of energy conservation and emissions abatement.

AI： A New Era of Innovation

Xinmin Weekly Issue No. 30， 2017

On July 20， Chinas State Council issued a plan for the development of artificial intelligence （AI）， making it a national priority. The plan says that efforts will be made to introduce and cultivate high-caliber talent in this field， enhance the study of basic theories， and promote synergy between AI research， production， and industrial development in various fields.endprint

Chinese sci & tech enterprises are optimistic about the AI market potential. Alibaba Group， Baidu， Tencent Holdings， and Qihoo 360 have ventured into the AI industry by establishing their own laboratories. As these business giants have millions of users， they can utilize their resources such as big data to test and refine AI systems.

The new plan by the State Council has set targets for research and production. The development of AI technology will ensure that social services be provided in a more intelligent way and better military-civilian integration enabled.

China is embracing a golden era in AI development. Efforts are being made to develop robots to help people with menial work and optimize production. This will leave people free to focus on what they are good at， such as innovation， creation， entertainment， and social communication.

Small Towns， Big Culture

China News Weekly Issue No. 27， 2017

After experiencing a breakneck pace of urbanization over three decades， China has developed a plan to develop small towns with unique features.

The problems with megacities， such as soaring real estate prices and deteriorating environment， have drawn public criticism. As such， it is necessary to establish a new model for urban development.

Historically， these small towns linked cities and rural areas and served as both administrative and commercial centers. The development of these characteristic towns highlighted their natural landscape， local culture， customs， products， and traditions， in order to attract tourists and develop the local economy. However， efforts should be made to avoid over commercialization， such as increased real estate development.

The development of towns with distinguishing attributes will combine economic returns with the preservation of local cultures， to create a new and more balanced path for the future of urbanization.

Integration of Industry and Finance

China Economic Weekly Issue No. 30， 2017

At the National Financial Work Conference held in mid July， President Xi Jinping emphasized that the financial sector is the bloodline of the real economy， and it is the obligation of the financial sector to serve the real economy， which in turn prevents financial risks.

The 101 state-owned enterprises （SOEs） under the administration of the State-owned Assets Supervision and Administration Commission （SASAC） of the State Council have a great impact on Chinas economy and serve as a pillar of the real economy. Over the past few years， some centrally-administered SOEs have become equity participants and even shareholders of some banks， securities institutions， fund companies， insurance companies， and trust institutions. Some have seen rapid growth in their financial business. This“financial business fever” has triggered worries that the switch from their main business to the financial sector will result in higher financial risks.endprint

On July 19， the SASAC held a meeting， where a proposal was made to regulate SOE participation in financial business and accelerate the development of their primary business and real economy， in order to prevent financial risks.

Big Data Is King

Money China

Issue No. 7， 2017

Against a backdrop of global informatization， where people and things are increasingly connected with each other， and during a critical stage of Chinas industrial upgrading and transformation， the digital economy has an important role to play in boosting its economic development.

For the 2016-20 period， the country expects the production value of its digital and creative industries to reach RMB 8 trillion， with an annual growth rate of about 70 percent， much higher than that of other industries.

Big data has substantially changed everyday life， and has made huge impacts on social and economic development. The Internet has generated vast amounts of information， and the world has entered an era of big data， which has laid down a solid foundation for the development of AI.

Breakthroughs have been made in data collection， cleaning， modeling， analysis， and visualization. The integrated development of AI and big data will further tap market potential. Research shows that the value of Chinas big data market reached RMB 11.59 billion in 2015， a yearon-year growth of 53.1 percent.endprint