Unionpay’s New Idea

One internal document leaks out that China Unionpay， a bankcard association that provides clearing platform， is trying to ask its bank members to cut the direct clearing connection with third-party payment platforms. If member banks do so， Unionpay can successfully consolidate its monopoly position on bankcard clearing， which means huge profit. While member banks do not respond this call immediately because banks are willing to promote its competitive capacity by the aid of third-party payment platforms’ innovation capacity and high-growth potential.

Reduction of Red Tape

Premier Li Keqiang vows on March 17 to cut more than a third of some 1，700 items on issues relating to central government administrative examination and approval within five years. In May the State Council published a list of items that no longer require central government approval or have been delegated to lower-level governments.

Bernanke’s Tough Choice

On May 22， Ben Bernanke， chairman of the US Federal Reserve， made clear he had no intention of cutting short his quantitative easing programs in the near future， but he also claimed that the Fed’s slowing of asset purchases could come soon depending on employment situation and inflation figure. Bernanke’s QE policy has made the US economy significantly improved during the financial crisis. However Bernanke currently has to face a more difficult problem as to how and when the Fed will end its QE programs.

EU's Decision Hurts Both Sides

The European Union decided to impose an initial tariff of 11.8 percent on imports of solar panels， cells and wafers from China. If the two sides do not reach an agreement in August， the tariff will be increased to more than 47 percent. The solar dispute involves 20 billion euros， up to 5 percent of China’s annual trade with the area. China opposed the tariff decision of the EU strongly， and the decision is also in the face of strong opposition from most EU members including Germany. A large amount of European solar enterprises are set to suffer as a result.