But how come there was hardly any local report looking at possible link between the alleged outrageous perks and bribery attempts of Philippine officials by ZTE (which is owned by the Chinese government) and China's problem with its huge foreign exchange reserves as well as the widespread culture of corruption in both the Philippine and Chinese governments?
An insightful piece on China's foreign exchange and corruption woes from the International Herald Tribune.
HONG KONG: In the insular world of China's central bank, they are known as the Three Xiaos — three women with similar names who oversee the greatest fortune ever assembled: China's more than $1 trillion in foreign- exchange reserves.
The Three Xiaos are exceptions in the male-dominated world of Chinese policy making. And after the sharp fall in Chinese stock markets shook financial markets around the world last week, the three women face enormous challenges, including a potential showdown over policy during the meeting this week of the National People's Congress, China's Parliament.
Public pressure is mounting within China on the central bank, the People's Bank of China. In postings on domestic Internet message boards and in conversations among educated urban Chinese, critics are suggesting that the central bank should earn higher profits from its vast hoard by investing in stocks, for instance, and use some of the reserves to help a country where most workers still earn less than a tenth of the wages of the typical American.
Foreign-exchange reserves have soared across much of the developing world, but particularly in China. One reason lies in extensive currency intervention as these countries try to keep their exports competitive in Western markets by curbing the appreciation of their currencies against the dollar.Read more here.