1. Dragon TV: I have two questions: the first is about energy sources. A hurricane has driven up crude oil prices in the US. Can you tell me whether or not Shanghai will be affected? Second question: September 3 is the 60th anniversary of China's victory against the Japanese invaders, will Shanghai hold some memorial activities to mark the day? Thanks.

Zhou Minhao (director of economic operations department under the Shanghai Municipal Economic Commission): Oil prices in Shanghai will not increase for sure. We are ensuring the supply of oil products these days, and I am sure market demand will be satisfied.

Jiao Yang: As to the activities to mark the 60th anniversary of China's victory over Japan, Shanghai has prepared for them. Some activities have already started, as reported by the media, and the public is paying much attention to them. As far as I know, the publicity department of the Shanghai Party Committee plays a leading role in arranging the activities, with a detailed event-list available. If you would like, we can help you to get detailed information.

2. Shanghai Morning Post: My first question is for Mr. Zhou Ya (director of the policy and regulation department at the Shanghai Development and Reform Commission): Shanghai has started to collect domestic waste after it has been separated-out into different categories. What is happening, and what is the situation regarding the recycling of construction waste? The city is currently drawing up the 11th Five Year Plan, and will the ideology of establishing an energy-efficient city be embodied in that plan? Second question: I see in your previous introduction that the city is likely to manage the prices of such basic resources as water, electricity and gas. At present, what is the price situation in Shanghai?  Do prevailing prices reflect the shortage of resources? What will the price trends be in the future?

Jiao Yang: I will answer your first question for Mr. Zhou Ya. I will answer in three respects: as to the sorting of domestic waste, by the end of July this year, in the city center, 66.3 percent of domestic waste was being sorted into different categories, up 16 percentage points from the end of last year; at incineration plants, 90 percent of waste-handled had been pre-sorted, covering more than 2,552 residential quarters; in new cities and central towns in suburban areas, the rate had reached 60 percent. Over the past five years, Shanghai has reclaimed nearly 197,000 tons of usable waste material, including paper, glass, metals, plastics, and 400 tons of hazardous waste, including 373 tons of waste batteries. Local management systems for the sorting of domestic waste are gradually being refined with distinct improvements apparent. We hope all citizens will focus on the issue and that a higher proportion of domestic waste will be pre-sorted. As to construction waste, according to the statistics of the Shanghai Times, the city currently produces nearly 23-24 million tons of construction waste and residue, or 3.5 times more than domestic waste. Of this, there are nearly 18 million tons of residual soil, nearly 3 million tons of slurries and 2 or 3 million tons of discarded home furnishings. Recycling of construction waste means transformation and regeneration for other uses, such as to make residual soil into construction material and use waste wood to produce medium density fiberboard (MDF). At present, there is a processing plant in the city to turn residual soil into building blocks and aggregates, recycling nearly 200,000 tons of construction waste per year. Moreover, using waste for land-reclamation and for piling up into hills and landscapes are also important measures in recycling waste. In recent years, an average of nearly 3,000 construction sites needed refilled soil, which led to the recycling of 15 million tons of construction waste. This is the main way of recycling construction waste and residues. According to statistics, more than 90 percent of local construction waste is recycled.

Zhou Ya: We can understand that it is indispensable and urgent for the central government and State Council to require the establishment of an energy-efficient society at our current stage of economic and social development. A scientific approach is needed to achieve economic and social development, while striving to build a harmonious socialist society and conducting a strategy of rejuvenation of the market by focusing on science and education. Accelerating the establishment of energy-efficient economic growth modes, industrial structures and urban development and consumption modes, will enhance coordinated and sustained economic and social development. Firstly, energy-efficient modes of economic growth; economic growth should be based on the optimization of economic structures, technological advancement and quality so as to gradually form a model of economic growth characterised by investment-efficiency and low levels of energy consumption and waste. Secondly, energy-efficient industrial structure; the city's industrial structure is currently at the late heavy-chemical-industrial stage, with the secondary sector playing a major part. Energy consumption with such a structure is comparatively high. At present, the city's energy consumption per 10,000 yuan (US$1,230) of GDP is 1.03 tons of coal-equivalent, relatively efficient with 1.58 tons coal equivalent being the average in China. However, it still lags behind advanced international levels, being nearly six times that of Japan and two or three times that of the US. We should continue to give top priority to the development of the tertiary sector, followed by the secondary and primary sectors; boosting local development by depending on both secondary and tertiary sectors; providing preferential policies to modern service and advanced manufacturing industries. Third, energy-efficient urban development and consumption modes; above all, we should balance the relationships among the five elements of population, resources, environment, infrastructure and industry, and take the ability of the city to bear these elements into account. This is an important ideology, embodied in the 11th Five Year Plan. In addition, you have raised a question on the price of resources. According to the requirements of establishing an energy-efficient society, allowing market prices into full play is an important measure to boost the development of economic recycling and accelerate the building of an energy-efficient society. The main goal is to form a market mechanism whereby those who save resources are rewarded. It doesn't mean that we will simply raise prices, but we will adopt different guidelines for different levels of consumption, including basic, excessive and luxury consumption.
For example, we will gradually raise water prices, with incremental pricing for residents and improved rationing systems for non-residents. Water prices will be raised for industries with high levels of consumption. These policies are currently under deliberation, with concrete measures to be taken after due legal process, such as the holding of public hearings.

Jiao Yang: I've answered the first question concerning  domestic waste and construction waste. In addition, I'd like to mention more about our five measures to encourage the recycling of the city's waste. The recycling is aimed at meeting the requirements of the city in building an energy-efficient society, to develop a recycling economy and to achieve sustainable development.

The measures are:
1. Actively promote the sorting of domestic waste.
2. Create a management system to deal with domestic waste.
3. Promote the collection and recycling of disposable plastic meal trays.
4. Manage and deal with the waste at dining places and cooking places.
5. Actively promote the re-use of construction waste.

3. Asahi Shinbun: Here are two questions. One is about reducing energy-consumption in traffic. I've read the news release about the elimination of automobiles with huge gas consumption and exhaust emissions. Have any public traffic and public transport companies moved to implement the policy? For example, is there any standard to be worked out, or specifically, is there any standard concerning the change of petrol to natural gas for the taxis? The other question is about the Xiaonanguo Restaurant on West Nanjing Road, which was closed by the police recently. Can you offer any reason for its closure? When will it ne permitted to reopen?

Zhou Minghao: The automobile issue concerns several industries. I'm with the economic commission which mainly manages automobile production. The traffic department manages the public transport operations. In fact, all the automobiles manufactured in Shanghai, both big passenger cars and small cars, meet the exhaust emission standards. According to the national plan, we'll also introduce some economy cars with small energy-consumption. Specific standards are yet to be studied and drafted.

Jiao Yang: As to the Xiaonanguo case, as far as i know, it's a public security case caused by an economic dispute. It's under investigation by local police.

4. Xinhua News Agency: The news release also mentioned the government is trying to use the land in the industrial development zone more efficiently, encouraging companies to build multi-story buildings and trying to raise the
building density to somewhere above 0.8. Please tell me if it's a hard standard that all the factory buildings to be built from now on should conform to, or is it a soft one? We have had restrictions on small engine cars to make them conform to our policy, please tell us the city's general objective towards building an energy-efficient society? Will there be corrections to old measures?

Jiao Yang: State law rules that the public security bureau and traffic administrators have the right to take measures on automobiles, other vehicles and pedestrians. Shanghai has regulations to ban small passenger vans no higher than 1.5 meters with an engine size of 1,300 cc and below from entering the elevated roads during the day and from entering the inner ring road area from 7am to 9pm. Smaller vans with engines smaller than 1,200 cc  are banned from the elevated roads from 7am to 8pm, except for weekends and holidays. The problem of traffic jams in the downtown and on elevated highway is serious.

It's necessary to restrict vehicle flow in certain areas and during certain time periods. Targeted vehicles are mostly old and outdated, falling far behind those in the developed countries, where cars have small engine capacity, low energy consumption and high quality. In addition, a small percentage of the vehicles even have the inside chairs disassembled, and are filled with both passengers and goods. They drive slowly and have difficulties in braking. They always have a negative influence on traffic flow and increase the likeliness of traffic accidents. Restrictions on time and place will improve traffic flow and do good to people when they go out. These restrictions will also develop and perfect with the road network construction. Policies on energy-efficient cars are being studied. They'll aim at developing cars of high quality, small engine capacity and few exhaust emissions.

5. Financial Times: A few weeks ago, some local  residents who have undergone relocation went to the Shanghai Exhibition Center to protest about housing issues. My question is this: is the Shanghai Public Liaison Office now receiving them and handling the case? 
In the guideline for building an energy-efficient society, I noticed that the government will relocate farmers from their existing homes to make better use of farmland while providing new homes for them.  So how many farmers in Shanghai will be affected and how much land is affected?  And what's the basis of the re-housing policy?

My second question is about the dispute which occured some weeks ago at the Xiaonanguo Meiguiguan restaurant.  A sister of a senior official with the Shanghai Municipal Government -- as well as the senior official himself-- are said to be involved in the case.  I want to know: how is the case developing?  When will information be released to the public?  If overseas investors in Shanghai are faced by disputes with local business people, where should they turn to for help?

Jiao Yang: For your first question, I think every citizen of the People's Republic of China is granted the right to voice his or her opinion and lodge complaints in a legitimate way.  Governments at all levels have established a comprehensive complaint-handling system.
As for the Xiaonanguo restaurant case, in which you mentioned a family member of a senior official with the Shanghai municipal government, I think overseas journalists are paying a lot of attention to it, because another reporter has already referred to this case.
As I have told you, the police said it is a regular civil case provoked by economic disputes and that they are still investigating.  Please trust that the Shanghai police will handle the case decently and in accordance with the law.
And I'd like to point out that, so far as I know, relevant officials on this case have a just attitude when handling it.  Shanghai will abide by the law and protect the legal rights of Taiwanese business people here.

Zhou Ya:  Your second question is about the re-housing of farmers.  In fact, Shanghai has put forward the "three-centralization" development strategy in the suburbs for some years now.  The strategy refers to centralizing industrial workshops in industrial parks, centralizing the residences of farmers to towns and centralizing or consolidating rural land-use.  It is driven by the principle of efficient land use.
Currently, per-capita construction areas in the suburbs is 200 square meters, 450 percent of the figure downtown.  The per-capita land use in rural housing construction is 160 square meters.  The gross ratio between construction space and land occupation area on the one hand and all kinds of construction on the other is as low as 0.3 percent on average.  That indicates there is still a lot of land which could see better-use in such a densely populated city as Shanghai.
A key part of the "three-centralizations" strategy, the farmer home-swap project not only releases the land resources taken up by the farmers' houses, but also follows the principles of rural urbanization.  With the speed-up of city development, rural industrialization and urbanization are also pacing-up.  In these circumstances, it's a necessity for farmers to become urbanized. With good guidance, they are directed into well-planned new towns, giving a boost to land-use efficiency, living standards and public infrastructure construction.  This is the rationale at work in the swap.  There is no compulsory relocation of farmers.

Jiao Yang:  Let me add one point.  According to a survey by the authority in charge of the swap, about 80 percent of farmers believe the swap policy can bring them benefits.

6. Phoenix TV:  We learn from the police that a fracas occurred early this morning, in Nanhui, which has caused concern in Taiwan, because the victims were Taiwanese. 
Meanwhile, Shanghai's Minhang District is the top magnet for Taiwanese investors thanks to its friendly investment environment; and on September 1, a primary school for Taiwanese will open in Shanghai.  That indicates many Taiwanese business people are very glad to invest here, while, on the other hand, some negative incidents are occuring. My question is:  Does the Shanghai government have measures to protect the property and personal security of Taiwanese people working and studying here?  What's your comment on this kind of crime?

Jiao Yang: I heard of the crime from media reports. I think it is a one-off case.  We can't deduce that it was against the whole community of Taiwanese.

Crimes and accidents happen in any city of any country.  As I've said the Shanghai government will protect the legal rights of investors here, including those from Taiwan.  The Shanghai police are investigating.  We will keep an eye on it and the police press office will publicize the results after the facts of the case become apparent.

7. STV News Channel: I have two questions concerning cutting-down on energy use in transportation, and house rentals for low-income families.  
Someone mentioned just now that the city, especially the municipal departments, should accelerate the phasing out of old cars which are generating high pollution.  It's a common knowledge that most of the special cars used by local party and government departments are high in energy consumption.  My question focuses on the use of these cars, rather than the manufacture of them. Does the city, or the municipal departments, have any plan to promote high-powered cars with low energy consumption?
Several days ago, we heard anb inspiring news that one low-income family in Zhabei District became the first to be privileged by the low-rent policy.  Would you please define the target group that this police is slated for, and the detailed promotion process and operation schedule for this policy?
Thank you.

Zhou Ya: As the main administrative department for the car-use for the municipality, the Municipal Development and Reform Commission, along with the transportation administration bureau, Government Offices Administration Bureau and the Municipal Financial Bureau, has made some research and discussion on this issue when drafting the implementary suggestion regarding your first question.   The municipal governments have united standards for the purchase and phasing out of special cars. 
Now, the targets of the implementary suggestion are those cars that have accessed or are approaching the standards of being phased out. However, the expenditure generated meanwhile should be included in our consideration.  If we replace all the special cars in use now with those of lower energy consumption, it would be a big stroke of money to the government.
As a result, we should be careful on this issue.

Jiao Yang: The policy of house renting for low-income families is a thing concerned by many people.  Local favorable policies on house renting target two kinds of people, the relocated and the low-income. 
The policy favoring the relocated families is an efficient way of allocation decided by the administration after research into the real situation of local relocation.  Now, the northern square of the Shanghai Railway Station in Zhabei District and the Pumping Station in Beixinjing area in Changning District are undergoing construction to empty out the buildings for rent.

However, the favorable policy targets only those determined by the civil administration to be needy, those elderly living alone, those suffering from serious diseases, those disabled, those unable to work, and those who just underwent major surgery.  The policy aims to not only solve living problems for the needy families who are to be relocated, but to improve their living situations as well.  The government is searching for new and more reasonable ways to re-locate these people.

The houses available during the experimental period of the policy are mainly the apartments slated for the relocated people.  On principle, each family can only apply for one low-rent apartment, and the rent will be reduced on the base of its market price.  Relocated people will sign agreements with the house-renting administration, confirming that 70 percent of the relocation compensation (commission to quick-movers not included) will be used as rent and deposit during the renting period.  The remaining 30 percent will be paid to the relocated people.
In terms of a contract with a definite rent period, the leaseholder may require the discharge of the contract before its expiration date.  As for those who want to re-rent, the house-renting administration will examine the qualifications of the applicant.
The process in the experimental areas is till now operating quite smoothly.  We will further perfect this policy before it's finally determined and applied into the city.

8. Shanghai Financial News: The city possesses many cabs.  Usually, the air-conditioner is turned up or down in terms of gears rather than degrees, causing great waste.  So, does the government have any better approach to prevent this kind of waste?

Zhou Minhao: Now, for most cars, their air-conditioner adjustments have several gears.  It would raise costs for the cab company if we used cars with air-conditioner adjusted by degrees.  For the sake of the city development, we expect such cabs.  However, these cabs couldn't be cheaper than 600 000 yuan (US$72 551) each. 

9. East Radio New Channel: I have two questions on energy saving in buildings.  Firstly, would you please explain to us the detailed planning of this year's energy saving project, especially the names of the buildings that participate in this project?  For example, there are renovations for energy efficiency on existing buildings planned by certain administrations this year.  Can you reveal some of the detailed planning? 
Second, as far as we know, making buildings energy efficient will certainly require more money from the construction developers.  So, will these projects benefit ordinary people? Thank you.

Jiao Yang: I still remember the press conference on energy saving of buildings months ago.  The return of this problem means that it has a high social concern.  So I'd like to brief it here again. 
The three main targets in this year's energy saving project are: to fulfill the construction of the 16 million square meters of residential houses and 800,000 quare meters of public buildings, and the renovation of 500,000 square meters of existing buildings.
Up to the end of last June, over 6 million square meters of residential houses have accomplished their renovation on energy efficiency.

As to the detailed planning of energy saving projects, since officials responsible for promoting the use of energy-efficient buildings are present, you can consult them after the press conference. The reporter is concerned about whether making buildings energy efficient will require more money and whether these projects will benefit ordinary people. The envelope systems (outer walls, roofs, floors, doors and windows, etc) of energy-saving buildings can greatly improve indoor thermal conditions (for example, temperature and relative humidity). To put it simply, the insulation materials used in the roofs and outer walls of these structures are just like hats and quilted coats. In winter, these materials, together with sealed insulating glass units used in windows, make energy-saving buildings a warmer and more comfortable place for occupants than ordinary houses. Even if heating appliances are needed, these buildings will consume much less electricity than ordinary ones. In summer, insulation materials reduce the amount of heat entering through outer walls. Specially designed roofs ensure that buildings are well insulated and ventilated. With glass windows that can reflect heat and outdoor devices for blocking light, energy-saving buildings have a greater ability to insulate against heat. The innovations eliminate the need for air conditioning and reduce electricity consumption. Therefore, energy-saving buildings are warm in winter and cool in summer. By reducing occupants' reliance on heating and cooling systems, these buildings help people save electricity costs. Sealed insulating glass units help reduce outside noise. Like hats and quilted coats, the insulation materials used in roofs and outer walls can protect building envelopes. Undoing the damages caused by temperature change and rain erosion, these materials resolve problems like water leaks and wall cracks, which are common in buildings. Thus, the life span of buildings is extended and maintenance costs are reduced.
As to housing prices, the energy-saving building will certainly cost more than a normal building since the former requires more expensive construction materials. According to government calculation, if all the envelopes of a building are adapted to meet the "energy-saving standards" set by the country and the city, the measure will reduce the overall energy consumption in the building by 25 percent. The extra costs (100-150 yuan per square meter of the building area) can be paid off in 5-8 years. In order to keep the room temperature at 18 degrees Celsius in winter and 26 degrees in summer, the air-conditioning in a multi-floor building without heat-insulation systems consumes 90.7 kWh of electricity per square meter (1 kilowatt hour (kwh) is the use of 1000 watts per hour). In contrast, energy-saving buildings require 48.1 kWh, 47 percent less than the normal buildings. Besides, the interior temperature of these buildings will be 2-3 degrees Celsius lower than normal buildings since their outer walls are built with heat preservation and insulation materials. Their residents can enjoy a more comfortable life. Therefore, energy-saving buildings can not only improve the life of local residents, but can also cut the cost of living. The government's decision to build energy-saving housing will help improve the living standard of local citizens.

Zhou Ya: Ms Jiao has given detailed answers to your questions. I'd like to add two comments about energy-saving buildings. First, Shanghai plans to promote the use of gas-powered air conditioning and introduce an energy-saving program which will encourage customers to use power generators to produce some of their own electricity. The progrmme is good for the city's power grid and is currently under trial at Pudong International Air Port and Huaxia Hotel. Secondly, we should explore a way of exploiting renewable resources in new buildings. We should consider the use of solar energy when designing buildings in suburban areas. This is an important approach. The "guideline for building an energy-efficient society" has made the request.
 
10. Xinwen Wubao: You mentioned industries that use large amounts of water must have water meters installed. How will the government charge for water after meters are installed? What about the previous water pricing? Secondly, local constructions whose building area exceeds 50,000 square meters are required to collect and store rain water. Are residential properties required to do so? How many such constructions does the city have? Thirdly, how about the city's utilization of the ashes and residues from industrial production?

Zhou Ya: Water-consuming industries fall into two categories: industrial production and the service sector. The former includes the electricity industry, chemical industries and metallurgy. The latter refers to car washes and public baths. All these businesses must have water meters installed. At present, some unlicensed car washes fail to meet the requirement and often waste a lot of water. The water use of some university dormitories and old residential areas are not metered, either. Local administration of water conservation will accelerate the speed of meter fitting. All local industries and enterprises (except in special situations) should have water meters installed. This is the foundation of water pricing. As to rainwater collection, Shanghai does not lack for water. It is short of high-quality water. Local annual run-off (rain or other liquid that flows off the land into rivers) is 2.5 billion cubic meters. Water flowing from the Yangtze River forms a large proportion of the run-off. Therefore, we should consider the city's actual situation (e.g. local public facilities, economic value of the collection, etc.) during the utilization of rain water. We will promote rainwater collection in areas which meet the relevant conditions. In answer to your third question, shanghai is the first city in the country to turn ashes and residues from industrial production into building materials, by mixing the industry waste and cement together. It is a wonderful invention which is the result of years of research. The ashes and residues, the disposal of which was a headache in the past, are now for sale. We will do more work in this field.

Jiao Yang: I have some data to add. Since 1997, the amount of the ashes and residues utilized by the city has exceeded the amount thrown away. The city made use of 5.154 million tons of this waste in 2004. The fields where the waste is utilized are shifting from low-profit industries to high-tech and more profitable ones. The utilization can save 1,100 mu (1 mu equals one fifteenth of a hectare) of land, 2.2 million tons of cement, and nearly 300 million yuan each year.