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Business

Doctors, a hotel, and fishbones

Johnny Reed
9 Mar 2009


Politics is a seasonal business in China. Most of the year not much happens, but come January, things begin to stir. It's the beginning of the political meetings season. There are lots of them. They start at the district level, move on to the provincial and culminate with the nationals in March.

They don't normally attract a lot of attention. But this year the crunch means everyone is interested in how the budget will be spent. Premier Wen Jiabao's opening speech at the National People's Congress last week put social security issues high on the agenda, healthcare in particular.

This will be popular. The demise of state-owned businesses left many people in trouble. They relied on their work unit for everything, including paying for medical treatment. Once gone, there was no cosy welfare state to look after them. If they needed treatment, they had to pay. Provision for this has been one of the main reasons for high personal savings.

Traditionally, everyone went to hospitals for treatment. But they're expensive and crowded. Wen's plans will expand neighbourhood medical units. These are modern, clean and cheap; also the doctors are paid by the number of patients seen.

Doctor remuneration has always been a problem. Not paid much by the state, they rely on commissions from pharmaceutical companies. So patients receive vast supplies of expensive medicine when treated. Not efficient and not popular with patients. The new system should address this.

The government is going to throw a lot of money at the health sector. If people believe the state will provide for them, then they might just start spending some of their savings. And with that there's a sporting chance that the domestic economy might begin to take off.

* The Shanghai Club, ancient bastion of Britishness, fell on hard times after Liberation. After housing a sailors' club, tatty hotel and the first KFC in the city, it was empty for ages. Now it's to be developed "sensitively" into a hotel. Good for the club. But not so good for the rest of the block, which will become a skyscraper.

* March is the season for eating Yangtze knife fish. They have soft bones and are delicious. Although always the preserve of the rich Shanghai diner, this year's £600 a kilogram beats all records. The more frugal can take their chances with the bones in April for £10 a kg.

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