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BEIJING -- China is likely to become the world's second largest consumer market by 2015,  said a report released by the Boston Consulting Group (BCG).Chinese shoppers select the luxury Louis Vuitton luggage at the first franchise store in Nanjing, East China's Jiangsu Province, July 25, 2007. [newsphoto]The report is based on a survey of 4,258 consumers in 13 Chinese cities from February to March 2007. According to the report, Chinese consumers are experiencing unprecedented wealth growth which is 3 to 5 times faster than developed countries in the past 50 years. Most Chinese consumers plan to spend more in near future to fulfill their family dreams."The past decade of rapid economic growth has brought prosperity but also uncertainty, resulting in a highly complex consumer market with diverse consumer attitudes," said Hubert Hsu, senior partner and managing director of BCG, at a press conference in Beijing."Capturing the next wave of consumer growth in China will involve developing deep consumer insights and creating marketing differentiation," said Hsu.The report said there are significant generational differences in terms of spending attitude among Chinese consumers. The strong interest in trading up, which means spending more money for more expensive products, was driven up by consumers' increasing desire for better goods and services and rising concern over safety and quality of cheap products.Chinese consumers put more faith in brand names compared with the US consumers and they believe good brand represents quality, safety, effectiveness and durability, said Hsu.Despite strong trading up desires, Chinese consumers continue to "treasure hunt" - make deliberate trade-offs to maximize "value" of their budgets. They use similar strategies for treasure hunting as their counterparts in other countries except several unusual tactics such as group purchase for volume discount, said the report.The report suggested global suppliers in China should establish strong, branded relationships with China's treasure-hunting consumers, provide the kinds of products that appeal to practical concerns and emotional needs, and be willing to customize their offerings to meet the needs of a geographically diverse population.While the retailers must make sure the categories they carry are the ones that treasure-hunting consumers will seek and focus on a product's technical and emotional benefits, said the report.

Chinese President Hu Jintao on Monday launched a campaign to rid the country's sprawling Internet of "unhealthy" content, state television reported. Development and administration of Internet culture must stick to the direction of socialist advanced culture, adhere to correct propaganda guidance," said a summary of the meeting read on the news broadcast. "Internet cultural units must conscientiously take on the responsibility of encouraging development of a system of core socialist values." In January, President Hu made a similar call to "purify" it, and there have been many such calls before. "Consolidate the guiding status of Marxism in the ideological sphere," the party meeting urged, calling for more Marxist education on the Internet. In 2006, China's Internet users grew by 26 million, or 23.4 percent, year on year, to reach 137 million, Chinese authorities have estimated. That lucrative market has attracted big investors such as Google and Yahoo. Authorities have also launched repeated crackdowns on pornography and salacious content. The latest campaign against porn and "rumor-spreading" was announced earlier this month. The meeting also announced that schools and sports groups would be encouraged to use healthy competition as a way to shape youth, the report said. "Sports plays an irreplaceable role in the formation of young people's thinking and character, mental development and aesthetic formation," the meeting declared.

A shop assistant checks hundred yuan bank notes at a shop in Xiangfan, central China's Hubei province in this file photo. [Reuters]A senior U.S. Treasury official warned Congress on Thursday that a legislative drive to force China into letting its currency rise in value more quickly could backfire and do damage to the U.S. economy. Deputy Assistant Treasury Secretary Mark Sobel warned a House of Representative trade subcommittee that U.S. lawmakers risked creating a perception abroad that the United States is becoming "an isolationist nation" that does deserve foreign investment. "If the United States adopts currency legislation that is perceived abroad as unilateralist, investors' confidence in the openness of our economy could be dampened, diminishing capital inflows into the United States and potentially putting upward pressure on interest rates and prices," Sobel said. However, Ways and Means Trade Subcommittee Chairman Sander Levin, a Michigan Democrat, objected to the administration's description of congressional proposals as protectionist, and other lawmakers testifying on Thursday argued China's "unfair" trade practices required a strong U.S. legislative response. Two Senate committees have already approved legislation that aims to equip Treasury with new tools to pressure China into letting its yuan currency rise faster in value, which U.S. manufacturers say is necessary to eliminate an unfair price advantage for Chinese-made goods. Rep. Tim Ryan, an Ohio Democrat, said Congress should pass an even stronger bill -- such as one he has crafted with Rep. Duncan Hunter, a California Republican -- that would allow U.S. companies to seek countervailing duties against China's undervalued exchange rate. "Passage of a weak bill will only lead to many more years of inaction by the administration, loss of jobs and loss of critical U.S. manufacturing capability. We need legislation that will lead to action," Ryan said. A Republican committee member, Rep. Thomas Reynolds of New York, said there was bipartisan support for taking a tougher line with China than Treasury has followed so far. "Be ready for the fact that there's a boiling point in the Congress coming from the people of America saying we need to do better than what's happened so far," Reynolds said. After the hearing, Levin told reporters that House leaders would decide when Congress returns in September the best way to proceed with China currency and trade legislation. "I think we will look at all options," including the Ryan-Hunter bill, Levin said. He expressed confidence that Congress could craft legislation that presses China on the currency issue without violating World Trade Organization rules. But Treasury Secretary Henry Paulson has made clear that he does not want the additional legislative tools and that he prefers to seek a faster pace of economic reform in China through discussion, especially in a "strategic economic dialogue" that he initiated with Beijing last December. Sobel's appearance before the House subcommittee was a bid by Treasury to wave off more legislation in Congress, where anger at China has been mounting and has helped fuel the bid to force Beijing into faster currency appreciation. "We appreciate the frustrations of Congress with the slow pace of Chinese reform. Indeed, we strongly share those frustrations," Sobel said. "Yet we continue to believe that direct, robust engagement with China is the best means of achieving progress." Paulson has just returned on Wednesday night from his fourth trip to China since taking over Treasury just over a year ago. Again he was unable to persuade Chinese officials to offer any commitment to speed up currency reforms. Paulson told reporters in Beijing that Chinese officials whom he met, including President Hu Jintao, intended to move ahead with economic reforms including on currency but that the country's economic stability was critically important. The failure to get firm Chinese promises on currency has fed into a sense in Congress that China does not play fair on trade rules. Sobel said Paulson had "conveyed a strong message about the need for far more vigorous action by China to correct the undervaluation of renminbi (RMB), take immediate action to lift the RMB's value and achieve far greater currency flexibility." China's yuan is also known as the renminbi. David Spooner, the Commerce Department's assistant secretary for import administration, echoed some of Sobel's worry that Congress's actions could rebound against the United States because they might violate global trade rules. "I must make clear that the Department of Commerce is deeply concerned that the other legislative proposals that have been advanced to date raise serious concerns under international trade rules," Spooner said, adding that could trigger a global cycle of protectionist legislation. Similarly, the U.S. Trade Representative's deputy general counsel, Daniel Brinza, warned that Congress needed to beware approving legislative proposals that did not comply with rules set by the World Trade Organization. Doing so would undermine U.S. credibility when it tries to persuade others to abide by WTO rulings, Brinza said.

Four-yuan Scheme What can a part-time Chinese employee of McDonald's afford by his hourly pay? Only two small ice creams, which are valued at four yuan (US50cents). A McDonald's outlet. [File]American fast-food giants McDonald's and Kentucky Fried Chicken (KFC) are being bombarded for their work contracts which offer their part-time Chinese employees just four yuan per hour, well under the state requirement, state media reported. An employee is entitled to no less than 4.3 yuan per work hour, said a rule released by the Guangzhou city government last November. The hourly pay averages 7.5 yuan in the city. An unnamed source in Guangzhou told the New Express newspaper that the contract violated the legal rights of employees. "Once administrative departments discover acts of violations, officials will order these enterprises to revamp and compensate the employers for their losses," the source told the Guangzhou-based paper. "If the problem is so grave that a punishment will be handed out," the source said without giving details. The source also cast doubts on the probation system implemented by the fast-food giants. "Part-time employees don't need to undergo a one-month probation period." McDonald's and KFC have nearly 3,000 outlets all over China and a work force of nearly 200,000, according to a state media report. Zhu Yongping, a Guangzhou lawyer, has begun to move for the rights of employees. He told the paper that the work contracts have 'seriously violated' the legal rights of employees. A Lin, a McDonald's employee in Guangzhou, regarded McDonald's as a respectable foreign-funded enterprise before starting to work there. But the working experience has changed her mind. "I don't have enough rest. It seems that I was overly exploited." Cui Minghuan, Manager of KFC'S Guangdong market, refuted the claims of rights violations, saying the current rule of the minimum hourly rates of pay for the non-full-time employees implemented in the province is not applicable to the part-time employees working for KFC. "KFC does not breach relevant laws in China." Cui said these part-time employees are neither full-time workers nor non-full-time workers. "Their hourly rates of pay cannot be measured by the rule. An unnamed offical with the Provincial Department of Labor and Social Security said Cui's words are ridiculous. "So what kinds of workers they are on earth? " The official said the rule is applied to these part-time employees. Mcdonald said in a written statement that "it is always committed to relevant laws and regulations in China." Central Government Actions The report came just days after Chinese Premier Wen Jiabao, in his work report to the congress in early March, called for more efforts to implement the minimum hourly wage system in a bid to protect the workers' rights. The minimum wage system aims to protect the rights of Chinese employees. For example, Bejing has set a minimum wage about 550 yuan per month, while the economic hub Shanghai has a minimum wage about 650 yuan. The central government has beefed up efforts to protect the rights of its huge crowd of employees to quell any likelihood of unrest and maintain social stability. China is planning to adopt an unemployment law that aims to build an unemployment benefit system. The draft law is aiming at promoting employment around the country. The law states that the government will implement new policies, such as boosting professional training and increasing financial investment in employment promotion. As discrimination turns rife in China, the draft law contains a clause on anti-discrimination in an effort to provide employment equality in the country. The clause states that discrimination against job seekers with respect to their background, ethnicity, gender, religious beliefs, age, or physical disability, will be prohibited. The government is also taking actions to set up trade unions in foreign-funded enterprises in China. Up to date, about 26 percent of China's 150,000 overseas-funded enterprises have established trade unions, with a total membership of 4.29 million, previous media report said. However, McDonald's and KFC have not set up unions so far.

YANGJIANG, Guangdong Province -- A Chinese salvage team is getting ready to recover the wreckage of an ancient merchant ship loaded with exquisite porcelain from the South China sea on Saturday."If the weather is cooperative, the boat, which has been in the sea for about 800 years, will see the light of day again two days later," said Wu Jiancheng, head of the excavation project.Photo taken on Dec. 20 shows the interior of "Crystal Palace," a glass pool that will be used to put the ancient merchant ship Nanhai No. 1 after its wreckage is recovered from the South China sea on Saturday, Dec. 22. [Xinhua]According to Wu, the excavation is scheduled to begin at 10 am and the ship is expected to be hoisted out of water in two hours.The ship dates back to the early Southern Song Dynasty (1127-1279) and is 30.4 meters long and 9.8 meters wide. It was the first ancient vessel discovered on the "Marine Silk Road" of the South China Sea. It was named Nanhai No. 1, meaning "South China Sea No.1."Wu said, Nanhai No. 1 left port in southern China to trade with foreign countries and sank probably due to stormy waves. It was quickly buried by silt. It was estimated there were probably 60,000 to 80,000 relics on board.To better protect the precious relics and gain valuable information, archaeologists launched an unprecedented operation in early May to raise the wreck and the surrounding silt in a huge steel basket.According to the plan, a crane would first put the basket onto a barge. Tow boats would then pull the barge to a temporary port on Sunday where the basket would be sent to a specially-built museum.In order to avoid damage to the relics caused by a change of environment and pressure, the ancient ship would be put in a huge glass pool. There, the water temperature, pressure and other environmental conditions would be the same as the sea bed where the ship lay.The pool, named "Crystal Palace" is 64 meters long, 40 meters wide and 23 meters high. It contains seawater and is about 12 meters in depth."It will be sealed after the ship and the silt are put in," said Feng Shaowen, head of the cultural bureau of Yangjiang City, Guangdong Province.Feng said visitors would be able watch the on-going excavation of the ship through windows on two sides of the pool.As early as 2,000 years ago, ancient Chinese traders began taking china, silk and cloth textiles and other commodities to foreign countries along the trading route. It started from ports at today's Guangdong and Fujian provinces to countries in southeast Asia, Africa and Europe.Nanhai No.1, accidentally found in 1987, was located some 20 sea miles west of Hailing Island of Yangjiang City in South China's Guangdong Province, in more than 20 meters of water.Green glazed porcelain plates, tin pots, shadowy blue porcelains and other rare antiques have all been found during the initial exploration of the ship.Guangdong has earmarked 150 million yuan (US.3 million) to build a "Marine Silk Road Museum" to preserve the salvaged ancient ship.Unlike the traditional practice of excavating relics on sunken ships first and then salvaging the vessel, no more relic excavations would be made until the boat "gets used to its new home," said Wu."Actually, archaeologists will conduct thorough excavations of the ship later in the pool."It is believed that a successful salvage would offer important material evidence for the study of China's history in seafaring, shipbuilding and ceramics manufacture.

来源：资阳报