My synthesis

Recently media has reported that in some parts of China dried chili pepper prices per kilogram have raised from 7 yuan in the same period last year to 30 yuan, and its wholesale market price in Beijing also raised 2 to 3 times, leaving many consumers speechless. According to wholesale market sources, the recent price increases of dried chili peppers is a recovery increase, but prices rising so high has been caused by the increased amount of pepper purchased as well as speculation due to A/H1N1.

It is understood that currently dried chili peppers at the Beijing Xinfadi wholesale market mainly come from Hebei, Jilin, Liaoning and other provinces. This time last year the wholesale price of dried chili peppers was 6 to 10 yuan per kilo, while the current market wholesale prices is 18 to 22 yuan per kilo, rising 2 to 3 times.

Liu Tong, manager of Department of Statistics at Beijing Xinfadi wholesale market told reporters that affected by the financial crisis last year, dried chili pepper exports dramatically dropped, and chili turned to domestic markets selling at a low price, causing many growers and dealers to stop growing chili pepper or not sell chili pepper. This year, chili pepper exports increased, and production is relatively low compared with last year, so the price of dried chili rose, at present, this price surge is a recovery increase.

“After the garlic ’speculation’, some people began to ’speculate’ chili pepper. Recently, I heard that chili peppers can be made into pharmaceutical products which can not only prevent A/H1N1, but also play a role in sterilization. For fear pepper prices will continue to rise, customers are purchasing more than usual, probably more than one hundred tons or so. “One market trader said. Another wholesaler revealed the secret of surging prices. In 2008 pepper prices fell quite sharply, and this year pepper production was cut in varying degrees. The ice and snow winter weather in the north China also affected production, coupled with rising logistics prices, and despite the overall market demand for pepper has not significantly increase, chili pepper prices are still rising drastically.

“Recently, some have revealed that a large number of speculators in the garlic market have entered the chili pepper market.” A wholesale businessman frankly said now garlic has been bought out, some speculators are likely to speculate chili pepper. “A lot of businessmen are hoarding supply until the right time to sell at exorbitant prices.”

China is aiming to cut its reliance on manufacturing and boost its services trade to facilitate domestic economic restructuring going into the post-crisis world market.

Trade in goods, which mainly generates from labor-intensive manufacturing industries and accounts for about 90 percent of the country’s total trade, has caused an imbalance in trade structure and hurt the country’s exports amid the economic slowdown, analysts said ahead of the Central Economic Work Conference.

Chen Mingqi, a director of the Shanghai Academy of Social Sciences, said even though officials predict China’s exports of goods will rise 10 percent in 2010, he has his reservations.

“I agree China’s exports of goods will increase positively next year, partly due to the tiny base this year and China’s long-term competitive advantage. But in consideration of trade protectionism, shrinking expenses and consumer psychology, I hold a conservative viewpoint for the growth rate,” Chen said.

In the first 10 months of 2009, China’s exports slumped 20.5 percent year-on-year to $957 billion.

Imports decreased to $798 billion, down 19 percent compared to a year earlier, according to official data.

Meanwhile, exports of goods are facing escalating trade frictions.

A total of 19 nations and regions have initiated 88 trade-remedy probes against China in the first nine months, the Ministry of Commerce said.

“Exports generated from services sectors, especially capital-intensive and knowledge-intensive, won’t trigger trade conflicts,” Ni Yueju, a trade researcher at the Chinese Academy of Social Sciences, said.

To offset the declining exports and adjust its trade structure, Commerce Minister Chen Deming last week urged to promote the services trade and predicted China’s service imports would reach $1 trillion in the next five years.

Though China enjoys a trade surplus in goods, it suffers large trade deficit in services. In the first half of the year, China’s trade deficit in services increased fourfold to $16.7 billion, official figures show.

A low starting point also means vast room for development, said Xing Houyuan, a director with the Chinese Academy of International Trade and Economic Cooperation affiliated with the Ministry of Commerce.

Traditional service sectors, such as shipping, tourism and construction, make up the majority of China’s services trade, and the government vowed to foster emerging hi-tech service sectors, including telecommunications, software, and financial services.

Exports of some of the emerging sectors, like IT outsourcing, maintained a positive growth in the first half of this year despite the economic downturn.

Canadian Prime Minister Stephen Harper arrived in Beijing Wednesday afternoon, kicking off a five-day official visit to China.

The tour marked Harper’s first China visit since he came to office in 2006.

During his stay in Beijing, Harper is scheduled to meet with Chinese leaders and visit the Great Wall, one of China’s most cherished heritage sites.

Besides Beijing, Harper will also visit Shanghai and Hong Kong.

According to Chinese Foreign Ministry, Harper was accompanied by his wife Laureen Harper, and his 40-strong member entourage included Canada’s International Trade Minister Stockwell Day and Agriculture Minister Gerry Ritz.

Leaders of both countries will have wide-ranging and in-depth discussion on strengthening trade relations and international issues of common concern, Foreign Ministry spokesman Qin Gang said Tuesday when asked to comment on the visit.

Qin said China expected and believed Harper’s visit would “deliver positive results and boost bilateral relations.”

Police in the U.S. state of Washington say they have shot dead the man suspected of killing four police officers at the weekend.

Maurice Clemmons was killed in Seattle early on Tuesday, a spokesman for the Pierce County Sheriff told reporters.

Police had earlier named Clemmons as a possible suspect in the shooting. A reward of 125,000 U.S. dollars had also been posted for information leading to Clemmons’ arrest.

Police have said they do not know why Clemmons, a convicted felon, shot the officers in Lakewood, south of Seattle on Sunday. Clemmons is alleged to have gunned down Sgt. Mark Renninger, 39; and Officers Ronald Owens, 37; Tina Griswold, 40; and Greg Richards 42 in an apparently motiveless shooting.

“We have no motive at all,” Pierce County sheriff’s spokesman Ed Troyer said on Sunday, “I don’t think when we find out what it is, it will be anything that makes any sense or be worth it.”

Later it emerged that Clemmons may have planned the shooting. Witnesses say he had threatened to kill police officers but did not report those threats until after the slayings, Troyer said on ABC’s “Good Morning America.”

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The World Health Organization (WHO)on Thursday reemphasized the safety of A(H1N1) flu vaccine, saying a small number of deaths that occurred after vaccination were actually not caused by the vaccine itself.
“Although some investigations are still ongoing, results of completed investigations reported to the WHO have ruled out that the pandemic vaccine is the cause of death,” said Dr Marie-Paule Kieny, director of the UN agency’s vaccine research initiative.
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“Vaccination campaigns continue worldwide. No new safety issue has been identified from reports we received to date … reporting so far reconfirmed that the pandemic flu vaccine is as safe as seasonal flu vaccine,” she said.
According to the official, at least 65 million doses of the pandemic vaccine have been administered in the 16 countries that have reported figures to WHO. Immunization campaigns are now underway in a total of 40 countries.
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The Ministry of Health (MOH) on Thursday ordered all administrative and medical departmentsto ensure accurate reporting of A(H1N1) influenza cases, in response to a medical expert’s query over false reports. Zhong Nanshan, a medical expert in Guangdong Province, was quoted by on Thursday’s Southern Metropolis Daily as saying that he did not believe there had been only 53 deaths of A(H1N1) flu nationwide.
Zhong, an academician of the Chinese Academy of Engineering, said that some areas had left dead patients undiagnosed in order to conceal the real number of deaths from the flu.
Zhong said that “some areas have not been testing deaths from severe (pneumonia) and treating them as cases of ordinary pneumonia without a question,” the paper reported. Deng Haihua, spokesman of the MOH, said late on Thursday that the ministry welcomed supervision from all walks of society, including the media.
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