Weekend in China

China is still China, but we continue to be struck by how the government there is managing the aftereffects of the earthquake. Whether it's the way the Chinese people have thrown themselves into assisting their neighbors, the mobilizatin of the armed forces, the quick response of "corporate" China or the desire by the government to appear open (by actually being open), it all amazes in a good way.

Both the Sunday Times (UK) and Xinjua report a greater focus now on resettlement and recontruction as the death count moves above 60,000. Premier Wen Jiabao made clear this change, and spoke also of the support received thus far.

Before the reporters, Wen expressed sincere thanks to the Chinese worldwide, including compatriots from Hong Kong, Macao and Taiwan, as well as the leaders, governments and people of other countries for their concern, sympathy, aid and help.

"Facing such a powerful quake, we welcome international reporters to the quake zone," Wen said. "And we believe you can report the quake, its damage and the work we have done in a fair, objective and truthful way with your conscience and humanitarian spirit."

(Xinjua)

Concern remains over earthquake created lakes that might flood, plus damage to other structures (like dams), but it is hard not to be impressed at the level of organization in dealing with this massive disaster:

Camp conditions are basic but orderly. Families grouped with friends and neighbours have received army issue tents, padded out with donated blankets and mattresses. Canteens, medical centres and play areas have been set up in a central hub and as loudspeakers blast out announcements, people form orderly queues for free food. An squad of 130 sanitation workers disinfect the entire area with spray packs mounted on their backs on a 24-hour rota. It feels like something between an ordered refugee camp and the last day of a rock festival.

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On the business front, China has moved to restructure its major telecom companies, resulting in what will be three primary players. According to Reuters, the steps include:

• Merging China Unicom and Netcom (2 of the 4 major players).
  
• Having fixed line China Telecom purchase the CDMA wireless network of Unicom.
  
• Having China Mobile take over smaller fixed line China Railway Communication Co Ltd
  
• Issuing three licenses for high-speed third-generation mobile phone services.
  

The 3G licenses and the industry revamp are also set to unleash billions of dollars in spending for network gearmakers such as Ericsson, Motorola, Nokia, Nortel and Siemens, as newly merged firms expand to compete.

Of course the critical thought here is not so much the business opportunity, but rather, the fostering of communication for the citizens via technology that only enhances the ability to better integrate with the rest of the world. You cannot have 1.3 billion people texting and using high speed internet connections without it ultimately affecting the direction of the government and society at large. That is very, very good news.

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China's inflation rate is not expected to rise despite the quake. So say investment banks (some of the very same ones who seemed to have been confused on the American economy). Yep. Take it with whatever grain you choose.