Archive for ‘China alert’

30/07/2014

China Focus: Hukou reforms to help 100 mln Chinese – Xinhua | English.news.cn

China plans to help about 100 million people without urban ID records to settle in towns and cities by 2020, as part of reforms to phase out its dual-household registration system, the State Council, China’s cabinet, said on Wednesday.

It issued a circular aimed at accelerating reform of the nation’s household registration, or “hukou,” system.

The document said the government will remove the limits on hukou registration in townships and small cities, relax restrictions in medium-sized cities, and set qualifications for registration in big cities.

The rights and benefits of residents who do not have urban ID records in the city where they live should be safeguarded, the document added.

At a press conference on Wednesday, vice public security minister Huang Ming said different approaches will be applied in the hukou system, based on the size and population of a city.

Authorities will set no limits for those who want to settle in small cities and towns. “Anyone who has a legal residence can register for permanent residence, even temporary tenants,” Huang said.

Medium-sized cities with a population between one million and three million will have a low threshold, while megacities with more than five million residents will try to strictly control the influx of new citizens.

People wishing to settle in megacities like Beijing and Shanghai will have to qualify through a “points system” based on their seniority in employment, their accommodation and social security, according to Huang.

Megacities “face a lot population pressure, with an annual floating population of hundreds of thousands,” the official said.

via China Focus: Hukou reforms to help 100 mln Chinese – Xinhua | English.news.cn.

30/07/2014

China’s 1 Percent vs. America’s 1 Percent – Businessweek

A new study by Peking University’s Social Science Research Center pulls back the curtain a bit on China’s überwealthy. The richestpercent of Chinese households control more than a third of the country’s wealth, according to the July 26 study.

Most of that is tied up in real estate. In 2012, the study says, real estate accounted for 70 percent of all household wealth in China. (The bottom quarter of households, tellingly, control just 1 percent of China’s wealth.) The outsize reliance on real estate as an investment vehicle for both individuals and enterprises is troubling, given widespread concerns about a property bubble. In June, apartment prices fell in 55 of China’s 70 largest cities, according to China’s National Bureau of Statistics. In the southeastern city of Hangzhou, property prices dipped 1.7 percent that month.

But how do China’s rich stack up against America’s? The U.S. Internal Revenue Service analyzes income, not household net wealth, and in 2012, America’s richest 1 percent took home 19.3 percent of household income. But incomes rose almost 20 percent for the top 1 percent, whereas they inched up just 1 percent for the bottom 99 percent.

via China’s 1 Percent vs. America’s 1 Percent – Businessweek.

29/07/2014

Police shoot dead dozens of attackers during mob violence in Xinjiang | South China Morning Post

Police in Xinjiang shot dead dozens of knife-wielding attackers on Monday morning after they staged assaults on two towns in the westerly Xinjiang region, the official Xinhua news agency said on Tuesday, citing local police.

china_xinjiang_explosion_tok101_43157649.jpg

Describing the incident as a “premeditated terror attack,” the official Xinhua news agency said a gang armed with knives attacked a police station and government offices in Elixku, a township in Kashgar prefecture, and then some of them moved on to nearby Huangdi Township, attacking civilians and smashing vehicles as they passed.

Dozens of civilians were killed or injured in the attack before police responded by shooting dead dozens of attackers, official media reported.

Citing local police, Xinhua said dozens of civilians of both Uygur and Han ethnicities were killed or injured, while police officers at the scene shot dead dozens of members of the mob.

Over 30 cars were vandalised, some of which were set on fire, the report said.

Earlier this month, the regional capital Urumqi marked the fifth anniversary of the 2009 riot that left 197 people dead and about 17,000 others injured, mostly Han Chinese.

The turbulent region has since seen a series of violent incidents that have left many people dead or injured, including last May’s bombing of a market in Urumqi that left dozens dead and prompted a clampdown by authorities.

In the immediate wake of that bombing, which came just weeks after a blast at an Urumqi rail station left three dead, China launched one-year “anti-terror” campaign in Xinjiang in which hundreds of suspects have been arrested and large amounts of explosives and explosive devices have been seized, according to local media.

On June 17, authorities executed 13 people and sentencing three others to death for their role in terror attacks and related crimes in Xinjiang, including an attack on government facilities and police stations in the oasis city of Turpan on June 26 last year that left 24 police officers and civilians dead.

China’s heavy-handed approach has drawn concerns that many of the region’s Uygurs, including vocal critics and people linked to the separatist East Turkestan Islamic Movement, have been arrested and indefinitely detained without trial, while others have disappeared without trace.

Uygurs in Xinjiang and those in self-exile abroad have long complained that discrimination and restrictions on religion, such as a ban on taking children to mosques, are fuelling anger at the Han Chinese majority.

via Police shoot dead dozens of attackers during mob violence in Xinjiang | South China Morning Post.

28/07/2014

Beijing gets tough on party officials who go private | The Times

China’s intensifying anti-corruption campaign has turned its guns on the people who link government and business, forcing nearly 230 senior Communist party officials to quit the company directorships they hold on the side.

China’s president Xi Jinping

The draconian orders, which have also affected tens of thousands of more junior officials moonlighting for corporate China, are said to have unleashed a mass “exodus” of independent directors from listed Chinese companies in recent months.

The government has promised there will be more to come. China’s state news agency warned that the authorities were planning another “detailed directive” that analysts believe would attempt to tighten further the restrictions on the roles officials can play in the private sector.

The rules are expected to crack down on the activities of retired officials: as the rules stand, they are able to take on company directorships if those positions do not relate to their former specialities as civil servants.

Sources believe that the new directives will broaden the terms of the ban in a way that could affect foreign companies in the mining, energy, banking and pharmaceutical sectors.

The same burst of anti-corruption propaganda also invited the public to “blow the whistle on violations”.

The crackdown began last autumn with a ban on senior government and party officials from working for outside companies. Although a few resignations followed that ban, the real purge did not begin until scores of listed companies were subjected to an inspection a few months later.

That inspection, according to Chinese state media, identified 229 officials at the ministerial or provincial level who were working for outside companies and 40,700 junior officials with a source of company income outside their civil servant salaries.

About 300 Chinese companies listed on the Shanghai and Shenzhen stock exchanges have apparently been affected by the shakedown, losing the officials they specifically hired to build relationships with Beijing and bring the companies closer to the government.

The central role of those relationships within Chinese business has been laid bare over the past two years as details have emerged of the fabulous wealth amassed by the families of senior officials.

Also exposed has been the extent to which western companies operating in China have been convinced that their success can only be guaranteed by hiring either former officials or people with exceptionally strong personal links to the central and provincial governments.

via Beijing gets tough on party officials who go private | The Times.

28/07/2014

Improving health care: Congratulations! Inoculations! | The Economist

FANS of the China model frequently say that, for all the disadvantages of a one-party state, there are also benefits. Enforcing basic health care is one—and by no means a small one. Last year China’s mortality rate for children under five years old was just one-fifth the rate it was in 1991, down from 61 deaths per 1,000 live births to 12. The maternal mortality rate has also dropped substantially—by 71%—since 1991. In 1992, one in ten Chinese children under five contracted hepatitis B. Today fewer than one in 100 of them carry the disease.

China’s advances have not gone unnoticed. Last month a group of four international bodies, including the World Health Organisation (WHO) and the World Bank, said China was one of ten countries to have made exceptional progress in reducing infant and maternal mortality (see chart). Not all of the ten—which included Egypt, Peru, Bangladesh and Vietnam—are one-party states.

China’s improvement lies in two basic, connected areas: better care at birth and countrywide immunisation. Since 2000 the government has offered subsidies to mothers who give birth in hospitals, thereby reducing health dangers from complications—especially the risk of neonatal tetanus. The scheme also brought hard-to-reach people and groups into contact with the health-care system.

From 2001 to 2007, the share of births that took place in hospitals rose by 46%, making it easier to give a hepatitis B vaccine immediately. China now has one of the highest usage rates of the birth dose of the vaccine in the world: 96% of Chinese babies receive it on their first day of life. In 2012 the WHO commended China for a “remarkable” public-health achievement. That year it declared China free of maternal and neonatal tetanus.

Margaret Chan, the WHO’s director-general, this month said that China’s regulatory system for vaccines had passed the WHO’s evaluation with outstanding results. Dr Chan says she has “full confidence” in the safety of vaccines made in China. Last year the WHO approved one for the first time for use by UNICEF. (That has not dispelled suspicions within China itself, however, about the safety of Chinese vaccines.) China and the WHO claim that about 95% of children are vaccinated for measles, rubella and polio. In 2008 the government added eight new vaccines, including hepatitis A and meningitis, to its national programme. All are administered to children free of charge. Just as important has been the mobilisation of a network of health-care workers, at provincial, county and township levels.

via Improving health care: Congratulations! Inoculations! | The Economist.

25/07/2014

Ethiopia Vies for China’s Vanishing Factory Jobs – Businessweek

Ethiopian workers walking through the parking lot of Huajian Shoes’ factory outside Addis Ababa in June chose the wrong day to leave their shirts untucked. The company’s president, just arrived from China, spotted them through the window, sprang up, and ran outside. Zhang Huarong, a former People’s Liberation Army soldier, harangued them in Chinese, tugging at one man’s polo shirt and forcing another worker’s into his pants. Amazed, the workers stood silent until the eruption subsided.

Turning Ethiopia Into China's China

Zhang’s factory is part of the next wave of China’s investment in Africa. It started with infrastructure, especially the kind that helped the Chinese extract African oil, copper, and other raw materials to fuel China’s industrial complex. Now China is getting too expensive to do the low-tech work it’s known for. African nations such as Ethiopia, Kenya, Lesotho, Rwanda, Senegal, and Tanzania want their share of the 80 million manufacturing jobs that China is expected to export, according to Justin Lin Yifu, a former World Bank chief economist who teaches economics at Peking University. Weaker consumer spending in the U.S. and Europe has prompted global retailers to speed up their search for lower-cost producers.

Shaping up employees is one part of Zhang’s quest to squeeze more profit out of Huajian’s factory, where wages of about $40 a month are less than 10 percent of what comparable Chinese workers may make. Just as companies discovered with China when they began manufacturing there in the 1980s, Ethiopia’s workforce is untrained, its power supply is intermittent, and its roads are so bad that trips can take six times as long as they should. “Ethiopia is exactly like China 30 years ago,” says Zhang, 55, who quit the military in 1982 to make shoes from his home in Jiangxi province with three sewing machines. He now supplies such well-known brands as Nine West and Guess (GES).

Almost three years after Zhang began his Ethiopian adventure at the invitation of the late Prime Minister Meles Zenawi, he says he’s unhappy with profits at the plant, frustrated by “widespread inefficiency” in the local bureaucracy, and struggling to raise productivity from a level that he says is about a third of China’s. Transportation and logistics that cost as much as four times what they do in China are prompting Huajian to set up its own trucking company, according to Zhang. That will free Huajian from using the inefficient local haulers, but it can’t fix the roads. It takes two hours to drive 30 kilometers (18 miles) to the Huajian factory from the capital along the main artery. Oil tankers and trucks stream along the bumpy, potholed, and at times unpaved road. Goats, donkeys, and cows wander along, occasionally straying into bumper-to-bumper traffic. Minibuses and dented taxis, mostly blue Ladas from Ethiopia’s past as a Soviet ally, weave through oncoming traffic, coughing exhaust.

via Ethiopia Vies for China’s Vanishing Factory Jobs – Businessweek.

25/07/2014

Consumers Drive Chinese Internet But Enterprise Use Lags – China Real Time Report – WSJ

By some measures, China’s Internet dwarfs that of the United States.

China has the world’s largest Internet population with 618 million users, well over twice as many as in the U.S. China also has the world’s largest online retailing industry, with e-commerce giants like Alibaba that sprawl far larger than the likes of eBay EBAY +1.08%.

But a new study by the McKinsey Global Institute argues that enterprise use of the Internet is still lagging in China and that the country’s businesses will need to catch up in this area to unlock economic gains.

“The Web is just beginning to penetrate many Chinese businesses – and the most sweeping changes are yet to come,” said the report, which was published this week.

MGI estimates that increased adoption of Web technologies like cloud computing and big data by China’s enterprises can add 0.3 to 1.0 percentage points to China’s GDP growth rate. By 2025, it could translate to annual economic gains of between 4 trillion yuan ($645.5 billion) and 14 trillion yuan, the research firm said.

China’s Internet has outpaced the U.S. among consumers. Alibaba’s online shopping platforms Taobao and Tmall have nearly twice as many active buyers than the U.S. site eBay. Jonathan Woetzel, one of the MGI study’s authors and a partner of the firm, told The Wall Street Journal that Chinese consumers spend more time shopping online and make more purchases than their American counterparts.

“China’s consumer generation has shown up at the same time as the Internet,” he said. “They have the money, but the offline shopping platforms like malls haven’t been built up fast enough to accommodate their expectations and needs. So more of them shop online.”

But when it comes to China’s businesses, they still lag in use of Web technologies, he says. The typical Chinese company spends 2% of revenue on IT, half of the international average, according to an MGI survey of CIOs. The enterprise cloud adoption rate in China is 21% compared to 55%-63% in the U.S.

Some sectors that stand the most to benefit in China include the financial services, health care and automotive industries, MGI says. Big data can help financial firms manage risks and reduce non-performing loans, while remote monitoring of chronic diseases can save costs for the health care industry.

via Consumers Drive Chinese Internet But Enterprise Use Lags – China Real Time Report – WSJ.

24/07/2014

China plans railway to India, Nepal borders by 2020 | Reuters

China plans to extend a railway line linking Tibet with the rest of the country to the borders of India, Nepal and Bhutan by 2020 once an extension to a key site in Tibetan Buddhism opens, a state-run newspaper reported on Thursday.

Tibetan railway bridge

Tibetan railway bridge (Photo credit: Wikipedia)

China opened the railway to Tibet’s capital Lhasa in 2006, which passes spectacular icy peaks on the Tibetan highlands, touching altitudes as high as 5,000 meters (16,400 feet) above sea level, as part of government efforts to boost development.

Critics of the railway, including exiled Tibetans and rights groups, say it has spurred an influx of long-term migrants who threaten Tibetans’ cultural integrity, which rests on Buddhist beliefs and a traditional herding lifestyle.

The Global Times, published by the ruling Communist Party’s official People’s Daily, said that an extention to Shigatse, the traditional seat of Tibetan Buddhism’s second-highest figure, the Panchen Lama, would formally open next month.

That link is scheduled for its own extension during the 2016-2020 period to two separate points, one on the border of Nepal and the other on the border with India and Bhutan, the newspaper cited Yang Yulin, deputy head of Tibet’s railways, as saying, without providing details.

China has long mooted this plan, but the difficulty and expense of building in such a rugged and remote region has slowed efforts.

Tibet is a highly sensitive region, not just because of continued Tibetan opposition to Chinese control, but because of its strategic position next to India, Nepal and Myanmar.

The Chinese announcement coincides with a drive by India, under its new prime minister Narendra Modi, to consolidate its influence with its smaller neighbors.

via China plans railway to India, Nepal borders by 2020 | Reuters.

23/07/2014

China’s Next Great Water Project Uproots More Than 330,000 – Businessweek

China’s track record for forced relocations that accompany large infrastructure projects is dismal. Many of the 1.3 million people relocated during the construction of Three Gorges Dam in the 1990s and early 2000s were moved from ancestral villages and farmland, where they could profitably grow crops, to newly (often shoddily) built apartments, with no job training or employment help. The result: vanished earnings and increased social dislocation.

A child standing next to his family's possessions as residents in central China's Henan province make way for the South-to-North Water Diversion Project in 2010

So far, it appears that the relocation of more than 330,000 people during the ongoing construction of the South-to-North Water Transfer Project is somewhat better planned, although still deeply flawed. Beijing News looked at the fate of approximately 70,000 people relocated from homes in Hubei Province for the construction of the middle leg of the project, which aims to redirect water from China’s lush south to its arid north. The local government seems to be more aware of the importance of protecting migrants’ livelihoods, but that awareness hasn’t yielded simple solutions.

“It isn’t easy to tell people they must leave their homes,” Gufang Yan, a staffer at the Nanzhang Bureau of Immigration, told the newspaper. “Nobody gave us information about how to find a job; we did not know anything about recruitment,” said a man named Chen Yan, who was relocated for the project four years ago. He eventually managed to find work near his new home repairing cars, and he learned on the job.

via China’s Next Great Water Project Uproots More Than 330,000 – Businessweek.

22/07/2014

BRICS Summit: A Show of Economic Might Is Nothing to Fear – Businessweek

As Brazilians were recovering last week from the World Cup, the country held another global event: the BRICS summit, a gathering of leaders from Brazil, Russia, India, China, and South Africa. The outcome was no doubt more pleasing to Brazil’s President Dilma Rousseff than her country’s soccer performance. The countries agreed to set up a $50 billion “BRICS bank” to invest in development projects in the developing world, alongside a $100 billion pool of reserve currencies earmarked as “a kind of mini-IMF,” according to Russian Finance Minister Anton Siluanov. It was a strong statement of the grouping’s growing global economic heft and a challenge to the order established by the International Monetary Fund and the World Bank.

China President Xi Jinping being welcomed by President Rousseff at Planalto Palace in Brasilia

Some in the West have perceived that challenge as a threat. The U.S. has veto power over major decisions at the International Monetary Fund. Without European or American backing, it is almost impossible to get a loan through the World Bank. The North Atlantic powers will have no such say in the operations of the BRICS bank, another sign that the global balance of economic and financial power is shifting.

The BRICS do pose a threat, but their own development bank isn’t it. The more worrisome risk is that the BRICS won’t grow as quickly as they have in the past, that the grand plans hatched in Brazil will dwindle along with the economies supporting them. If pessimistic forecasts of Asian and Latin American economic performance turn out to be justified, that’s no reason for cheer in Washington or Brussels—collapsing growth in the developing world would be terrible news for the West.

via BRICS Summit: A Show of Economic Might Is Nothing to Fear – Businessweek.

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