The impact of avian influenza in China depends on the country's ability to contain early clusters of the virus, WHO chief representative in China Dr Henk Bekedam told a Chamber seminar on bird flu contingency planning on December 12th. The virus has gone through mutations so that all age ranges are now affected and the fatality rate has increased, explained Bekedam. Though the virus in its current state is not easily transferable between humans, new viruses could be very unstable if mixed with an existing virus such as the common flu, he warned.

China is cooperating closely with the WHO and "showing strong commitment" to containing bird flu, said Bekedam, but the disease could be carried by migrating birds passing through rural areas where locals and birds often live under the same roof. Changes are needed in animal market and slaughter practices, he said. An early warning system that included surveillance of animals and regular monitoring of migratory birds is vital, along with a human surveillance system to quickly contain early clusters of the disease. Developing vaccines and adjusting diagnostics and stocks of antibodies to match the development of the virus are also essential, said Bekedam.

Christian Doeringer of HR consultancy Hewitt Associates told the seminar that of 229 companies his firm surveyed 75 percent hadn't created a bird flu policy. A worrying 89 percent had not communicated any contingency plans to staff. The top three preventative measures taken by those who had were staff flu vaccinations, travel restrictions and office sterilization. Around 36 percent of companies offered paid repatriation for expatriate staff. Measures to reduce impact included communicating a contingency plan to clients (42 percent) and installing better IT systems (36 percent). Outlining contingency planning at BASF China, Chamber Vice President Joerg Wuttke said his company had hired an in-house doctor who helped formulate a national company emergency protocol on procedures during a bird flu pandemic. Posters and regular health bulletins keep staff informed of bird flu symptoms, while a stockpile of tamiflu, personal protective products and screening tools has been built up.

China set for power surplus

NDRC official predicts pricing revisions and opening of oil distribution to foreign enterprise China's energy output and consumption

were both up in 2005 but supply will meet demand by the end of 2006, predicted Wang Huajiang, a top official at the National Development and Reform Commission (NDRC), speaking at a Chamber seminar on China's energy policy. Head of the Energy Information and Policy Analysis Division, Wang introduced the NDRC China Energy Yearbook, the first publication of its kind, at the January 12th event in Beijing. Published in December 2005, the 800-page book provides a detailed description of China's overall energy development plans and strategies as well as the development of individual sectors since 2000. Offering a sample of the statistics in the book, Wang pointed out that China's achievement of 90 percent energy self-sufficiency is "quite high" by international standards.

Coal consumption, which accounts for most of local energy supply, reached 2.16 billion tons in 2005, up seven percent on figures for 2004. The government, he added, is introducing a new market system for coal so that in-store capacity could be increased. While China is currently building a National Oil Reserve to shore up its supplies, the basic principle of China's energy policy welcomed foreign cooperation as "a necessary supplement to local capability," explained Wang. Though "substantial construction" has been completed on four new oil reserves, China is reluctant to buy at the currently high prices. Energy conservation and efficiency, as well as renewable sources of power, will meanwhile be emphasized by the government. Though China was number one in the world in hydropower capacity, he noted, hydropower accounted for only 18 percent of power generation.Drawing on the Chamber's 2005 Position Paper, Dr Xavier Chen, Chairman of the Energy and Utility Policy Working Group, pointed out that Chinese leaders from Deng Xiaoping to Hu Jintao have treated energy supply as vital to economic growth. "But at the beginning of the 21st century China's leaders are worried that energy shortage was creating a bottleneck in economic growth," Chen said. China's energy security will be a long-term issue, he warned, and thus the publication of the NDRC yearbook is timely. To help China tackle its energy problems, the Chamber, said Chen, hopes for dialogues with China's policymakers to share members' concerns and suggestions on energy policy and access to energy supply and distribution markets for foreign energy companies.

Even while China has a policy on energy security and is encouraging domestic companies to seek reserves abroad, a conclusive government white paper on national energy policy is overdue, suggested Chen. The Chamber also hopes for a revision of the outdated laws on the coal market as well as separate laws on gas and oil. Pricing systems need to be adjusted to reflect the amount of energy consumed - China's heating energy consumption per square meter is three times the OECD average - said Chen. Natural gas, he added, deserves to be given the same preferential treatment as renewable energies since it is an environmentally friendly source of energy compared to other fossil fuels like coal.