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Shanghai Municipal Government Press Conference Memo (June 15, 2005)
27/6/2005 11:51

1. Shanghai Morning Post: You have just mentioned architectural theme colors in your press release. It is said that both Beijing and Harbin have established theme colors for their cities. Is Shanghai considering doing so? Second question: the city is cracking down on unlicensed medical clinics and doctors in five key fields. Can you inform us of the campaign? Any achievements? What are the measures to crack down on those who solicit for the quacks? Thanks!

Jiao Yang: Your first question is about the theme color of the city. Currently, we don't think that the government should decide the city's theme color. If reporters have information, we expect you to offer feedback from people of what theme color Shanghai should have for government departments. I believe it will be useful to our work.

Your second question is on the achievements Shanghai has made over the past years on cracking down on unlicensed medical services and quacks. Unlicensed medical services disturb order in the medical market, harm residents' health and even threaten their lives. The Shanghai government is always concerned about cracking down on unlicensed medical services. This time the campaign is different: previously, only the Shanghai Health Bureau was responsible for the correction, but this time, the campaign is being jointly conducted by the Shanghai Health Bureau, the Shanghai Public Security Bureau, the Shanghai Population and Family Planning Commission, the Shanghai Municipal Scientific & Technological Commission, the Shanghai Supervisory Commission and the Leading Group in Charge of Shanghai's Rectification and Standardization of Market Economic Order. The campaign, with a uniform leadership, a government responsible system and a cooperative system joined by government departments, is expected to have remarkable achievements.

Cracking down on unlicensed medical services is a long-term task. I have mentioned in the press release that besides the special campaign, we should also make comprehensive improvements to establish and improve a long-term effective system. Local departments have taken concrete measures: sending out notices or warnings to the residents near the unlicensed medical clinics (we also have such notices on our medical supervisory website); exposing unlicensed medical clinics and doctors to the public to create an environment in which the whole society plays a supervisory role. Unlicensed medical service is different from the other illegal acts under a market mechanism. It must have a fixed location, so we should increase education, and restrict and punish those who rent places for unlicensed doctors in order to make such clinics unable to survive. Those who commit crimes will be charged with criminal responsibilities.

Through the media, we also call on citizens to increase their awareness. If they find unlicensed medical services, residents are expected to report them to the city and district-level medical supervisory institutions by calling the number of the health supervisory office of the Shanghai Health Bureau is 64310245. Citizens can also log onto the Shanghai health supervisory information website (www.hs.sh.cn) to determine the authenticity of medical ads in order to prevent being cheated by exaggerated or unlicensed ads.

We often see media reports on those who solicit for the quacks. It is a filthy social phenomenon. By relying on only one government department, it is hard for a crackdown to succeed. It needs the joint efforts of public security, industrial and commercial, health, drug administrative and price departments to make comprehensive improvements and establish a long-term effective system. Three aspects of work should be improved:

*To increase people's awareness. The campaign will be led by the Shanghai Comprehensive Management Commission and cooperated with by all government departments: publicity columns will be established at such public places as main local bus stops, docks and hospital doorways to inform the public about the ways and traits of the cheating. Citizens are warned to improve their awareness to avoid being cheated and to avoid losing the best time to cure their diseases. News media should also popularize the proper channels for patients to see doctors and also the harm done by unlicensed medical services.

* To Strengthen the supervision of medical institutions, cracking down on those who employ people to solicit for the quacks, and investigating the responsibilities of those in charge. Doctors who employ unlicensed workers will receive warnings, have their businesses closed and even have their business licenses withdrawn.

* To increase patrols and checks on the key haunts of illegal practitioners such as at bus stops and hospital doorways, promptly preventing them from cheating; to improve education, and enforce punishment of unlicensed practitioners and to investigate their organizers and employers to firmly ban such behaviors. Thanks!


2.  Shanghai Dragon TV: Bright Dairy has been blamed for recycling expired milk recently. Is there any punishment and what's the result? Besides, we've heard that Vitasoy (Shanghai) Co is an important tax payer in Songjiang District and that's the reason it was protected by the local watchdog, who rejected interviews with local media many times, and its case was adjourned to the end of May. Is it true?

Jiao Yang: I'd like to answer the second question first. I don't know much about the case of Vitasoy and the punishment it has received. However, we have never changed the principles of our government. It's been our duty to give priority to people's health and security, as well as to food safety. Ensuring food safety is the task of public management. It's a must in terms of law and administration. Therefore, it's impossible for us to use taxes as an excuse for the delay of law and administrative enforcements. As to the case you mentioned right now, I have little information. Anyway, the government welcomes media watchdogs and media concerns on food safety.
The government has paid close attention to the case of the Shanghai-based Bright Dairy, whose plant outside Shanghai was blamed by media for processing expired milk. We've forced Bright to investigate the cause and improve management of its subsidiaries to prevent future accidents. Henan quality control authorities will check and release the results.
On the whole, consumers needn't worry about the quality and safety of local dairy products. During the past years, the local agricultural authority has paid much attention to dairy production safety, strongly and effectively supervising their sourcing, processing and transportation cycles. We've also intensified supervision on dairy products from other provinces to make sure that people drink only healthy milk. The local food and drug administration and the agricultural authority have jointly forced the dairy producers' association to draft a new standard to solve the summer problem for pasteurized milk. It's easier for the pasteurized milk to go sour in summer. The standard will come out soon to make sure that dairy products don't go sour during transportation and retail.

3.  News Times: You talked about "old" employees who suffer on-the-job injuries and their insurance. I'd like to know who are the "old" ones whose insurance compensation will be covered by the social fund and is there any difference between the fund payment and their employers' current payment?

Jiao Yang: First, the "old" refers to the insured who were injured before the new policy was enacted last year. Second, "on-the-job" refers to, literally, the injuries received during work. Such an injured group have made great contributions to the city during its modernization. To transfer their insurance payment to the social fund is to better ensure their rights and interests. The policy change reflects our care for individuals. It's good to the building of a harmonious labor-management tie and a harmonious society. On the other hand, the change also reduces the employment risks of work units. It shows that there is a balanced social security system and economic system in Shanghai.
For the work units who are registered members of the social fund, if their employees were injured by on-the-job accidents or were hit by vocational diseases before the new policy was enacted, and they were paying compensation for the injured now, they can have the social fund take responsibility. If their employees died from work injuries before the policy was enacted and their relatives are enjoying death benefits now, the work units who are paying the death benefits now can refer to the specific rules related to "old" employees' insurance advantages. When it comes to payment details, there could be a matter for negotiation between the work units and the social fund. A likely solution could be like this, the social fund shares half of the compensation and the remaining half is still covered by the work unit. It will be good for building harmonious labor-management ties and a harmonious society.

4.  Reuters: The policy to restrict the use of electricity in the city is about to be enacted. How many companies will be affected and is there any favorable policies to encourage the companies to buy power generators and become self sufficient?

Jiao Yang: Reporters are quite concerned about the development and the changes in Shanghai. Our summertime power conservation plan has started. We still adhere to our policy of "one insist, three ensures." We have insisted on load control measures to avoid power shortages and will ensure that the ordinary life of people will go well, ensure the operation and production of key companies, and ensure social order. This is our principle. Power supervisors have drafted different plans to apply to different temperatures and involve different groups of enterprises. For example, our drafts differ for days when it's 35 degrees celsius to the days when it's below that temperature, and to the days when the temperature jumps to 37 degrees or above. Different drafts will apply to different situations. We also plan to arrange for more workers to rest during peak summer periods.
As to the last question, we'll investigate and give you a satisfactory answer after the meeting.

5. STV News Channel: I have two questions.  The first is about urban landscape standards.  As we know, Shanghai published a series of urban landscape and sanitation regulations some years ago.  So what is the relationship between this new one and the previous regulations?  For such situations as outdoor clothes drying, there are governing clauses in this Regulation.  But I want to know whether theses clauses are compulsory or are merely offering directions.  If they are compulsory, which government departments will enforce their implementation? 
My second question is about unlicensed medical clinics and doctors.  I've noticed the crackdown started in April.  How has it been going during the past two months?  Where do the difficulties lie? Thanks.

Jiao Yang: The Shanghai Landscape and Environmental Sanitation Management Rule is a regional regulation unveiled in 2001 after being passed by the Standing Committee of Shanghai People's Congress.  The regulation I announced today is a set of urban landscape standards refined on the basis of the related laws and regulations, such as the national City Landscape Standard and the Shanghai Landscape Environment Sanitation Management Rule.  It is a regulation drafted in concert with the requirements of the Rule.

Another question the reporter raised is also very important, that is whether all the clauses in the regulation are compulsory.
I have to say some are compulsory and some offer directions.  Some are concrete standards, such as that outdoor air-conditioner equipment must not be lower than 2.5 meters and that the sun shield must not be over 1.5 meters wide.  These concrete standards in measurement are compulsory.
 
But some other clauses offer directions which raise basic requirements or provide guidance.  They need relevant administrative departments to further specify the policies for practical operation.   In this sense, they only set requirements and demand more refined rules.
Of some work, the sanitation department may not be the only authority in charge, while some other departments should be involved.  In such cases, it may require these combined departments to make detailed rules.

When it comes to the outdoor clothes drying you mentioned, the topic was covered in many media some years ago.  In this new Regulation, the matter is dealt with in the ninth clause, which rules that "Areas, if possible, should create public places for clothes drying".
 
In some of the city's old residential quarters, there is no open-air place for drying clothes because of previous planning.  This regulation is going against many local residents' habit to dry their washed clothes in the air, and has resulted in residents who prefer to air their clothes outdoors on such public facilities as light poles and roadside barriers in some areas. This practice, causing landscape eyesores as well as being unsafe, has led the city's landscape bureau to require its district and county branches to cooperate with local neighborhood communities, property management firms and sub-district committees to create public areas for clothes drying.  The bureau has drafted the ninth clause in the new Regulation to deal with this matter, aiming at removing such urban landscape eyesores.

As to the effects of the crackdown on unlicensed medical quacks, the campaign has basically turned out to be effective in the past month since the government issued the document at the end of April.
But as I just said, the movement on illegal medical clinics and doctors is more than a single action.  Therefore, I'd prefer to give you a brief description of the city campaign in its first five months.
From January to May, city health, police and landscape departments have sent out 3,026 officials on this mission, shutting down 917 unlicensed clinics and confiscating 7,240 pieces of medical equipment and 1,970 boxes of medicines.
We believe this campaign will surely disrupt the illegal medical services.  But in the meantime, we have noticed that these unlicensed facilities are operating in disguised forms.  They, like the illegal underground food manufacturers, reappear shortly after being shut down by the government.
Compared with licensed clinics, these unlicensed facilities run at extremely low costs.  To cut the costs and hide from the government, they usually rent residential housing for their clinics.  Their businesses, more often in dental service, cover a wide range of departments such as internal and venereal departments as well as baby delivery and abortions.  Some clinics conduct illegal B ultrasonic examinations for gender scanning.
Some companies attract buyers for their tonics and medical equipment by providing so-called charity or free treatments or examinations (such as testing for bone density, blood sugar, blood lead and health status).  Some beauty salons and bath centers provide medical operations such as tooth cleansing and plastic surgery without licenses.  All these operations are illegal.
That's why we have been stressing that correct information should be spread to advise people to be careful and encourage them to report these illegal services to the governments so that unlicensed medical clinics and doctors will be unable to survive.  This is very important.  Thank you!

6. Oriental Morning Post: You mentioned just now that most unlicensed medical clinics are concealed in residential areas.  Will those who lease property to them be punished for renting their houses to the fake doctors?  And can you be specific about the new standards of the dairy industry?  Those substandard milk products from other provinces and cities can no longer enter local market, can they?

Jiao Yang: The answer to your first question involves two situations: a house is rented or sublet to fake doctors in the name of companies or individuals. 
The government will increase punishments for those persons from the company involved in renting.  In addition to this, the city has outlined a Regulation for the administration of house renting by individuals.  I have described the Regulation during the press conference.  It clearly defines the responsibilities and rights of the house lessors.  Those who rent their houses for illegal use will be punished by the application of specific laws. 
However, there is no specific regulation to punish house lessors who rent their houses to unlicensed doctors.  This crack-down is being led by the Municipal Public Health Bureau, while the administration on house renting is under the supervision of the Shanghai Housing and Land Administration Bureau and the Shanghai Public Security Bureau. 

The standards for the local dairy industry are established by the appropriate administrations.  They still need adjusting and perfecting.  The standards, which are for the health of the people, should be obeyed by everyone.

7. Youth Daily Shanghai: I have two questions. First: The Municipal Development & Reform Commission of Shanghai held a hearing on ticket price adjustments for the local metro last month.  Would you please explain in detail the price adjustment scheme and when it will be implemented?  Second: The city has issued a series of policies for the local real estate market recently.  What are the real house prices now in Shanghai?  And what are the house prices that the municipal government has learned of through supervising the local real estate market?  Thank you.

Jiao Yang: Talking about the price adjustment scheme in local metro, as far as I know, it's still under discussion by relevant administrations.  The scheme needs further perfecting after the ideas and suggestions from experts and ordinary peoples are fully considered.

As for your question on prices on the local real estate market, I think you yourself may come to a conclusion by observation.  The municipal government will adhere to the following standards: First, the municipality will firmly carry out the macro-control and adjustment policies of the central government.  This is the basic principle.  Secondly, we will closely observe the movement of local real estate market, further strengthening research and analysis of developments and trends in the market.  This is what we are focusing on now.  The control and adjustment approaches towards local real estate market have been raised repeatedly during our press conferences.  So I believe that everyone here is quite clear with the essential approach.  That is:  to satisfy demand, regulate investment and curb speculation.  The city will try to maintain the health and balance of the local real estate market, and avoid big swings in this market, striving to keep a balance between supply and the demand, to keep a reasonable basic frame structure, and to keep a comparatively firm market price.  Thank you.

8. South China Morning Post: Some media reports recently have said that the city has had difficulty in implementing the new Regulations on city's appearance & environmental sanitation.  It says that some offenders often run into conflicts with the enforcers.  Is the new Regulation more powerful and effective than the previous ones?  The city is to issue a citizen's handbook this year.  So would you please tell something on this issue?  Thank you.

Jiao Yang: Laws and Regulations are not suggestions for reference.  They must be implemented once issuance.  So both the Shanghai Landscape and Environmental Sanitation Management Rule and the new Regulation should be implemented seriously. 
There should be some special situations occurring during the process of implementation.   On such occasions as banners, the Rule regulates that no banner could be hung along main roads.  But if the banner is an essential in a significant event, the relevant company may apply to the specific administration for approval.  The company should remove the banners immediately once the event is over.  This is a special situation.  It indicates that the basic principles of the Rule and the Regulation should be followed.

Your second question is about the citizen¡¯s handbook.  I will reply to you after getting further information on this issue.

9. China Business News: Two questions. The first one is about the city's move to shut down unlicensed clinics. Many people have said the much lower medical costs is the very reason for the existence of underground clinics, which are appealing to low-wage earners like peasants. I'd like to know whether the government has found other ways to settle the problem once and for all besides the crackdown. How will the government ensure low-income groups can afford to see doctors in legal clinics?  The second question is about DIY homes. Last week, a group of people who dream of building their own houses held a meeting to invite bids, which shows the project has started. What is the government's view on it? I'd like to know whether the government's attitude to the project has changed so far? Thanks.

Jiao Yang: Your first question is really big. I'm not able to explain it clearly in a few words. To safeguard the health and safety of the public is the government's duty. I think I have talked about the city's health care reform before. The basic idea behind the reform is "establishing a security system to provide people with basic health services". The focus of the health care reform has been shifted towards the basic units. The development of community health centers are encouraged. These are part of our effort to ensure that local residents can receive affordable health care. Local public hospitals (including second-class and third-class public hospitals) and community health centers are required to provide health services that people can afford. We will see to it that affordable health services (especially medical treatment for ordinary diseases) are accessible to the people. I have talked about the above measures before and, in fact, I'm not here to say this again.
To be frank, the demand for illegal clinics justifies its existence. According to what we have learned from the department of health, illegal clinics are mainly situated on the outskirts of the city, a new situation arising along with the local development. The government must fulfill its duty to guide the public and develop the ability to adapt to new situations. Therefore, two measures are taken to address the issue. First, to shut down illegal clinics which threaten people's health. Second, to improve management skills.  
In answer to your second question, the government's attitude is clear: to administer local affairs in accordance with the law; to examine and approve a project according to regulations. The project will be approved if it obeys the law. If not, the government won't approve it. I don't have much comment on the project. The city's administration of Industry and Commerce, together with the Housing and Land Resource Administration, will handle the issue according to the appropriate rules and regulations. 

10. Jian Cha Feng Yun (a Shanghai-based magazine): It was reported recently that a city in southern China seized beggars and mental patients and dumped them in a remote place to improve the apearance of the downtown area. Did Shanghai take these people into consideration when setting rules to keep the city clean and tidy? Secondly, since local subways broadcast slogans against begging, has Shanghai adopted regulations for this problem?

Jiao Yang: The local regulations to improve the appearance of the city are made in accordance with national law. I have mentioned several times that the rule only applies to objects (buildings, roads and sightseeing areas, etc.) rather than human beings. They are two different categories. I mentioned many times that we have a mechanism to help vagrants, which is established under national law.
In answer to your second question, Shanghai has programs to help people who have no home or work. The number of vagrants receving help declined slightly in 2004. From August 1, 2003 to the end of 2004, the city gave aid to 33,800 people. Among them, 1000 people are youngsters who violated the law. We have taken in these youngsters. The programs are undertaken by local government departments (e.g. the police, the Shanghai Bureau of civil affairs) and charities. As a whole, local aid programs in the field are running smoothly.