1. Shanghai Morning Post: Mr. Zhou Hanmin, Deputy Director General of the Bureau of Shanghai World Expo Coordination, please tell us your work plan for this year in detail. After Shanghai issued a statute to protect intellectual properties recently, have there been any new cases and how were they dealt with? Mrs Jiao Yang (spokeswoman), Shanghai issued a series of measures to cool off the overheated real estate market. Have they been effective? Will there be any new regulations to issue? Will the five-month fishing ban contained in the "Sturgeon protection regulations" affect the local aquatic product market?

Zhou Hanmin:  2005 is a key year for preparing for the World Expo, in two aspects: site construction, and proper preparations for inviting businesses, exhibitors and guests by the end of this year. We will have 11 work targets: first, facilitating the relocation work, especially the relocating of relevant companies and public units, and assigning the construction of the properties in the Pujiang and Sanlin Town, a place where residents are being relocated to make way for World Expo sites; second, making detailed layouts of the Shanghai World Expo based on the general plan. We will focus on inviting public bidding for plans for key buildings and local transportation; third, 200 counties and international organizations will participate in the 2010 World Expo, and we are expecting to attract 70 million visitors. As these countries' politics, economic situations, diplomatic policies and their relationship with China are different, it is very important to formulate relevant negotiation strategies; fourth, playing an active role in the Archi World Expo and learning from it; fifth, completing the last key item of legal procedure: the legal registration procedure. Currently, the registration report is being translated and when final corrections are made it will be handed to the International Exposition Bureau around May 1 this year; sixth, enhancing market development and combining social and economic effects, government and market mechanisms and sticking to the principles of openness, justice and fairness; completing preliminary plans of market development; establishing a branding system of the World Expo and a cooperative partnership and initiating experimental projects of designated products and services of the World Expo; seventh, enhancing propaganda strategy and holding press conferences at fixed and unfixed dates; eighth, developing and training personnel. We will draw up relevant policies for human resource development for 2010; ninth, managing the World Expo project plans, financial and tax policies and implementing relevant measures; tenth, improving the system of ensuring an honest and clean government and social stability; eleventh, studying the plans of the other Chinese provinces and cities for their participation in the World Expo; the State Council will hold a mobilization conference in the first half of the year on hosting the World Expo.

For the second question, it's been three and a half months since the statute to protect the World Expo logo took effect. It's been well enforced with no transgressions, testifying to the power of the law. The Expo coordination office has also worked out a plan to supervise the use the logo in order to improve its management. Meanwhile, we'll also make more detailed regulations to be enacted by either the central government or the local government, based on the statute.

Jiao Yang: The local government and Party committees have paid close attention to the health of the local real estate market. We have launched several surveys to study the market. We have kept a close eye on its development and made timely adjustments to it when needed. Our objectives are merely to achieve a healthy market development and improve popular living conditions. Therefore, the new measures related to the real estate market have been quite popular once enacted. support for us and give us favorable responses.
The adjustments to the real estate market have been introduced for quite a long time, during which period we have kept on making minor changes adapting to the markets ups and downs. And we will continue our efforts in these adjustments. Local government and Party committees are quite responsible to the people. We have a serious attitude and will go on with our research and studies in order to manage the situation, improve people's living conditions and develop the real estate market healthily and steadily.
As to the question whether the fishing ban will influence the acquatic produce market, our references to the respective authorities are quite positive. The ban won't affect the supply and demand in the acquatic market, neither will it affect people's lives because the acquatic produce provided by Chongming island each year is some 300 tons only, a mere 0.046 percent of the city's total acquatic consumption volume of 650,000 tons.

2. Dragon TV: I have two questions. First, how many food brands sold in the Shanghai market are involved in the Sudan 1 case? Will the government set up an ad hoc work force to investigate the case? How soon will you finish the investigation? Second, we've heard about the Sixth Statute, which is about improvements to the housing conditions of middle-and low-income families. Will you talk about it? When will the statute take effect and how are people responding to it?

Jiao Yang: The British government's food administration has warned consumers against the Sudan 1 dye. Their counterpart in our local government has also kept a close eye on it. Local food authorities have immediately conducted market checks and samplings of food brands that could have used the Sudan 1 dye. We have increased supervision of food production and circulation, and taken immediate measures to pull the brands probably using Sudan 1 out of the stacks of supermarkets to hyper malls. Government departments in charge of the case will continue to keep an eye on it, step up supervision to ensure food safety and guard people's health. As to the second question, one of our key tasks this year is to put emphasis on both home sales and rents. We've talked about the issue previously. Reporters can refer to the real estate department, who is in charge of the issue, for further information.

3. Shanghai Radio News Channel: It is reported that the World Expo 2010 has drafted its business promotion plan.  Can you specify the plan?  And what influence will it have on the World Expo brand? Since the current exhibition market is disorganized, what will be the response to the international unauthorized exhibitions?

Zhou Hanmin: Because of the long time and huge capital it costs to prepare for the World Expo and exhibitions, the wide range of problems that can occur are unprecedented.  In this sense, we must draft a comprehensive plan.  We have started the marketing for the World Expo and will accomplish this work using subcontractors.  One of the two advantages of this method is that the professional staff have practical experience, and the other is that they are familiar with local business. 
The marketing proposal is completely based on the two supportive documents of the World Expo bidding report and a registration report, which will soon be submitted.  Our marketing proposal basically contains four areas: a brand sponsorship plan, a symbol product patronage plan, an activity plan and a ticket operation plan. We hope the proposal will pass scrutiny at the assembly in the first half of this year. 
The two key jobs for this year are the World Expo emblem franchise plan and the patronage plan.  They are the focus of our work for this year in marketing operations on a trial basis. For the first plan, we will franchise the emblem use to qualified enterprises from home and abroad. They will pay the franchise fee for its use.  As for the second plan, we will conduct trial operations in two industries, telecommunications and tourism. We will select some companies and grant them exclusive emblem use, and these firms will provide capital or related services to support the preparation for the World Expo.  We have been gained valuable experience from the preparations for the Olympic Games.

Shanghai's World Expo is a combination of China's Expo and the city's Expo.  It's based on a cooperative win-win deal.  Shanghai wins an opportunity, the country wins a platform to raise its image, developing countries win substantial aid and other countries win varied business opportunities during the preparation for the World Expo.  The Expo is for the city, the country as well as all other participating countries and organizations.

Jiao Yang:  Exhibitions are a fledgling industry that have achieved fast development in recent years.  This rule we draft is for the purpose of further regulating the exhibition market order.  As I have explained, there is an annual application, approval and coordination process for international exhibitions.  According to the rule, exhibition organizers must submit their applications before May 30 each year for the international exhibitions they prepare to stage that year, along with the relevant documents, to the Shanghai Economic Commission, Shanghai Science Commission, Shanghai Education Commission or other relevant departments.

The Shanghai Economic Commission, Shanghai Science Commission, Shanghai Education Commission or other relevant departments will fulfill their supervising responsibilities for international exhibitions according to the national rules governing their approval power and procedures. The Shanghai Economic Commission, Shanghai Science Commission, Shanghai Education Commission or other relevant departments will communicate with each other before working out a decision and notify the applicants in writing within 15 days after the supervision is completed.  The results should also be forwarded to the industrial and commercial administration in writing.  In this way, the practice of holding unauthorized international exhibitions, as you just said, will be effectively prevented.

4. Asahi Shimbun: Which Chinese leaders and local governors will attend the Aichi World Expo in Japan, and when will they leave?   Or is the list of the attendees still to be decided?  Would you please say something about it?

Zhou Hanmin: China is paying close attention to the Aichi World Expo.  Several major Chinese leaders and local governors will attend the three key ceremonies in Aichi, including the opening ceremony on March 25, Chinese Pavilion Day on May 19 and the start of Shanghai Week on September 19, not only to express our heartful congratulations on the success of the Aichi World Expo, but to make a live inspection and learn from the valuable experience of this world fair.

5. Shanghai Television Station News Channel: Besides the scenic films about Shanghai and China and the traditional Chinese performances, will the new high quality products developed in recent years be featured during the Aichi World Expo?
 
Zhou Hanmin: The China Council for the Promotion of International Trade is in charge of the preparation for the Chinese Pavilion during the world fair.  There are 14 cities and provinces, including Beijing, Tianjin and Shanghai, that will attend the Chinese Pavilion with their culture of thousands of years and with great ambitions to win prosperity for the future.  The displays in the Chinese Pavilion will be a gathering of new concepts, new ideas and new achievements.  We will also feature the selected latest spiritual and material successes of the city during the Shanghai Week.

6. East Radio Station: In a recent interview between the central media and several experts on real estate, it was said that the low proportion of sales tax imposed on the investors in the local real estate market has had little effect on the control of the housing market, and the ultimate reason why the supply of the local real estate market is falling short of the demand of the public is that the banks in Shanghai provide housing loans too easily.  These two points of view seem justified from the continuously increasing prices of used houses in February.  Would you please make some comments about this situation?

Jiao Yang: This is a question more suitable to be discussed during a proseminar.  Some media and experts describe the new tax policy on local real estate as a "too-tender" one while others praise it as being politic and right.  So, "Ideas and understanding vary from person to person.".

The local tax policy is strictly within the limitations of the national policy.   The Notice on collecting the sales tax during the exchange of common house property by individuals is established adhering to certain central policies and the real situations of Shanghai.  It's a well-advised notice, intending to restrain speculation in real estate exchanges, maintain the health and balance of the local real estate market, and evade big ups or downs in this market. The adjustment and control of this market is a comprehensive procedure involving the united efforts and cooperation of the administrations of finance, revenue and real estate.  However, the revenue policy is just one approach for adjustment and control.  So we have to encourage consumption, standardize investment. and restrain speculations according to the real situations of Shanghai.

7. Shanghai Evening Post: For ordinary citizens, local housing prices are prohibitive. Do you have any comment on this situation? What countermeasures will the government take to control property developers who are inflating housing prices?

Jiao Yang: The municipal government has expressed its attitude by adopting various policies to regulate the property market. Although the local real estate economy remains healthy, the property market faces some new problems. First, housing supply still falls short of demand despite the fact that the market has shown signs of restoring supply-demand balance.  The current Demand/Supply ratio for local housing is 1.07:1. We hope housing supply will slightly exceed demand. Second, although the ratio of luxurious housing to low- and moderate-income housing is becoming more rational, the supply of affordable housing is still inadequeate. In fact, to build more affordable housing for ordinary citizens is an integral part of the government's new policy for the local property market. Third, although the increase in local housing prices has slowed down as a whole, some neighbourhoods of the city are still experiencing a rapid rise in housing prices. The government's new policies are aimed at adopting more effective methods to solve the existing problems in the property market, to encourage the smooth, sustainable and healthy development of the market and to improve the living conditions of local residents. 

8. National Business Daily: I have two questions. First, I'd like to invite Zhou Hanmin, deputy director of the Bureau of the Shanghai World Expo Coordination, to describe how to explore the economic opportunities brought by the World Expo? The second question is for the government spokesperson: could you review the current situation concerning foreign investment in the local property market? What's the government's attitude toward it?

Zhou Hanmin: As we all know, Shanghai presented a budget of US$3 billion (about 25 billion yuan) for World Expo 2010 to the Bureau of International Expositions in its bid for holding the event. The total investment is estimated to be about 30 billion yuan because our plan was adjusted. The investments will mainly be made in the following three fields: relocation fees (for residents who must move out of their homes to make way for the World Expo sites), the construction of World Expo sites, and funds set up to ecourage developing countries to participate in the event. We can make ends meet by earning revenue from ticket sales (based on a ticket price of US$20 and expected attendance figures of 70 million), exploring the business opportunities brought by the World Expo and making full use of the sites built for World Expo after the event. Although we will try hard to balance the budget, it is uncertain whether that task will be accomplished. A small deficit is possible. However, both the city and the country will benefit greatly from the World Expo in such fields as GDP growth, industrial restructuring and job creation.

Jiao Yang: As for your second question, the municipal government will keep a close watch on the foreign capital flows.