Archive for ‘Politics’

19/05/2013

* China Premier Li Keqiang in India for first foreign trip

BBC: “China‘s Premier Li Keqiang is travelling to India in the first stop of his maiden foreign trip since taking office.

Chinese and Indian flags flie in New Delhi on 18 May 2013

Upon his arrival in Delhi, Premier Li will hold talks with Prime Minister Manmohan Singh, followed by dinner at the Indian leader’s residence.

Border tensions and trade ties are expected to be among the issues discussed by the two men.

The neighbours are the world’s two most populous countries.

Beijing hopes the visit will help build trust and a new strategic partnership to the benefit of both countries, China’s official news agency Xinhua said.

Delhi thought “very highly” of Mr Li’s decision to make India his first foreign stop and the aim of the talks was to “enhance trust”, Indian foreign ministry spokesman Syed Akbaruddin said.

A decades-long border dispute flared up last month after India accused Chinese troops of crossing the countries’ de facto border in the Himalayas.

The dispute over the territory in the Ladakh region has dogged the two countries since the 1950s.

Boosting trade ties is also expected to dominate the talks. China is already one of India’s top trading partners and both countries have already agreed a new $100bn (£65bn) bilateral trade target for 2015.

Premier Li will spend three days in India before travelling on to Pakistan, Switzerland and Germany.”

via BBC News – China Premier Li Keqiang in India for first foreign trip.

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18/05/2013

* China’s protesters: winning battles?

FT: “Even in China, David sometimes beats Goliath – though it’s sometimes hard to be sure.

This week, residents of Songjiang – a suburb of Shanghai which has gained fame around the world for having over 10,000 dead pigs floating in its water supply – found that though they could not vanquish the porcine invader, they had scared away an intruder from the corporate world. Shanghai Guoxuan High-Tech Power Energy company said it was abandoning plans for a battery factory in Songjiang, after residents protested on the streets and on the internet against it.

In a statement broadcast on local TV, the company said it would return the land allocated by local government and “will not seek any compensation”. It said it was halting its existing operations and pulling out of the area completely.

Residents staged street protests against the plant regularly since late April and more than 10,000 signed a petition against the project with many others voicing their opposition to it on the internet. At least one protester was reported to have been injured by police.

But Chinese citizens know that plants vanquished in one location in China, by “not in my backyard” or “nimby” protests, often pop up in someone else’s backyard. Residents of neighbouring Jinshan, another industrial area on the outskirts of Shanghai, now fear that the plant will end up on their doorstep.

“We already have so many chemical plants. We really cannot tolerate one more battery plant. Shall we protest together?” asks one user on a Jinshan property owner’s online forum.

Ordinary Chinese are less and less ready to pay the environmental price for economic development – or rather, more and more ready to see someone else pay it. This week, up to a thousand people protested in Kunming, in southwest China, the second large demonstration this month against plans to produce paraxylene (PX), a chemical used in making fabrics and plastic bottles, at a plant in the town.

Protestors complained that the environmental impact assessment for the project was suspect, because it was done by one subsidiary of China National Petroleum Corp, the country’s largest oil and gas producer and supplier, while the plant would be operated by another. That is the equivalent of “grandson assessing Grandpa,” said one Weibo user.

Last November, the eastern city of Ningbo suspended a petrochemical project after days of street protests. The year before, big protests against a PX plant in the northeastern city of Dalian forced the city government to suspend it.”

via China’s protesters: winning battles? | beyondbrics.

15/05/2013

* After ATM heist, India’s IT sector again in unwelcome spotlight

Reuters: “A breach of security at two payment card processing companies in India that led to heists at cash machines around the world has reopened questions on the risks of outsourcing sensitive financial services to the Asian nation.

The EnStage Inc. office is seen in the southern Indian city of Bangalore in this May 12, 2013 file photo. REUTERS/Stringer/Files

Global banks that ship work to be processed in India, either in-house or to big IT services vendors, were already under pressure to step up oversight of back-office functions after a series of scandals last year.

Last week, U.S. prosecutors said a global criminal gang stole $45 million from two Middle Eastern banks by breaking into the two card processing companies based in India and raising the balances and withdrawal limits.

“India is exposed in two ways: The threat that the same theft could happen in India and the fact that the outsourcing industry will also get affected,” said Arpinder Singh, partner and national director for fraud investigation and dispute services at consultancy Ernst & Young.

The episode is reopening debate on banks sending work requiring a high degree of confidentiality to offshore locations.

“It is the weakest link,” said Shane Shook, an expert with U.S. cyber-security firm Cylance Inc who has helped financial firms conduct investigations into some major cyber crimes.

“I think the lesson is they need to pull back on what they’ve outsourced. When you’re giving a third party, the outsourced entity, the ability to access credit limits or cash limits of the consumers you’re managing the finances for, you’re giving up control that is your fundamental responsibility.”

India’s $108 billion IT services industry is the world’s favored destination for outsourcing. Over 40 percent of exports by the industry are support services for the global financial sector, ranging from investment bank back-office functions to research, risk-management and processing of insurance claims.”

via After ATM heist, India’s IT sector again in unwelcome spotlight | Reuters.

15/05/2013

* Chinese austerity hits Diageo’s sales

English: Songhe and Moutai - modern Baijiu bra...

English: Songhe and Moutai – modern Baijiu brands from China (Photo credit: Wikipedia)

Read “corruption” for “austerity” and that would explain why sales and profits have dropped like a stone.

FT: “Sales of Diageo’s baijiu, a clear grain spirit popular in China, slumped 40 per cent in the first quarter of this year as the world’s biggest distiller became the latest casualty of China’s crackdown on conspicuous consumption.

 

The rapid deterioration in fortunes at Shui Jing Fang, one of the first Chinese household names to be taken over by a foreign company, comes as other makers of high priced spirits have suffered falling sales amid the chill winds of austerity with socialist characteristics. It is a turnround for the drinks industry which, like other purveyors of status symbols, had become accustomed to runaway growth in China comfortably offsetting European weakness.

Pernod Ricard, the world’s second-biggest distiller after UK-listed Diageo, is set to report an annual decline in Scotch whisky sales in China, following years of surging growth. This came after flat sales over the Chinese New Year period, when it sold more Cognac but saw Scotch sales fall by double-digits in percentage terms year-on-year.

Diageo has so far shrugged off concerns about the crackdown saying it is having little effect on gifting, which makes up 10 to 15 per cent of Scotch and Cognac sales in the country.

Kweichow Moutai, China’s largest baijiu maker, reported a halving in year-on-year profit growth in the first quarter. Baijiu, like a host of other food and drinks in China, has also been caught up in food safety concerns.

Shui Jing Fang, which Diageo acquired last year after years of protracted and complex negotiations, saw both sales and earnings before interest and tax fall by 40 per cent in the first quarter of the calendar year, Diageo said on an investor call on Tuesday. That followed net sales growth of 10 per cent and operating profit growth of 12 per cent in the previous full year.

Although Shui Jing Fang is just a drop of Diageo’s sales at around 1 per cent, baijiu dwarfs sales of international spirits in China and is seen as an attractive sector for multinationals to increase their grip on.”

via Chinese austerity hits Diageo’s sales – FT.com.

15/05/2013

* UK to try and simplify visas for Chinese tourists

Hard on the heels of special visas for Indian business applicants, Britain is trying to do something for Chinese visitors.

FT: “Home Office ministers are to start talks with Chinese tour operators in the hope of setting up an easier visa application system for groups of high-spending Asian shoppers who are discouraged by the UK’s border bureaucracy.

Chinese tourists at cake shop with windows decorated during Queen Elizabeth II Diamond Jubilee

The department has been under pressure from luxury retailers to streamline the process for Chinese tourists, who can enter most of continental Europe with just one Schengen visa and are therefore less likely to apply for a separate UK entry. As a result, France receives at least 25 per cent more Chinese tourists each year than Britain does.

Mark Harper, immigration minister, said on Tuesday that he hoped to begin discussions soon. “It’s just thinking about, practically, what can we do with the tour operators to enable them to make that process for getting both [UK and Schengen] visas as straightforward as possible,” he told the Financial Times. “We may not be able to get it to be perfect, but we can get it to be a lot better than it is now, which then makes us a lot more competitive.”

However, Mr Harper suggested that a previous idea of negotiating “parallel” processes – so that data for Schengen and UK visas could be submitted in one joint application – was looking less likely. This was because “you start running into issues about government IT projects and complex issues about data protection”, he said.

Mr Harper also indicated such a joint application would be difficult to achieve diplomatically because it was “not obvious” that it would be in the interests of Britain’s European partners.”

via UK to try and simplify visas for Chinese tourists – FT.com.

15/05/2013

* Arctic Council to rule on observer status for China

FT: “The Arctic is at the centre of a global geopolitical battle as China, India and Japan attempt to join the main body involved in setting the rules for future development of the polar region.

Oil drilling in the Arctic seas has become a highly contentious issue.

At a meeting in Kiruna in northern Sweden on Wednesday and Thursday, ministers from the five Nordic countries, the US, Canada and Russia will decide whether to let 14 countries and organisations gain the status of “observer” to the Arctic Council.

China is the most controversial name on the list, but its candidacy has the support of all the Nordic countries.

Canada and Russia have expressed concerns about further opening up the council, which already has six European countries as observers as well as various intergovernmental and non-government organisations. The US has said it is undecided over the decision, which needs unanimity.

The Arctic is viewed as an increasingly strategic area due to the presence of many resources such as oil, as well as the possibility of quicker shipping routes between Europe and Asia as the ice in the polar region continues to melt.

China, Japan, South Korea, Singapore, India, the EU, Italy and Greenpeace are among the bodies applying at the twice yearly summit for observer status, which would allow them to attend all meetings but not participate in the ministerial conferences.

The council, which was launched in 1996 and serves as a body for international rulemaking on the Arctic.

In a sign of the importance the US is now according the Arctic, secretary of state John Kerry arrived on Tuesday in Sweden for talks first in Stockholm with the government and then in Kiruna.

China has heavily wooed Nordic countries such as Iceland, with which it signed the first free-trade agreement with a European country last month.

Oil exploration in the Arctic has proved to be incredibly difficult, but more than a fifth of the world’s undiscovered oil and gas reserves is thought to be in the region, and there is also great scope for mining of various minerals in places such as Greenland, northern Sweden and Finland.

A northern sea route through the Arctic to the north of Russia could cut several weeks off shipping times and thousands of kilometres off distances between Europe and Asia, especially in the summer, which experts think could soon be ice-free in parts of the region.”

via Arctic Council to rule on observer status for China – FT.com.

14/05/2013

* China issues white paper on human rights

China Daily: “The Chinese government on Tuesday released a white paper detailing the progress made in human rights in 2012, stressing its achievements in improving living standards and increasing room for citizens to express their opinions.

Human Rights in China (organization)

Human Rights in China (organization) (Photo credit: Wikipedia)

“The cause of human rights in China has entered a stage of planned, sustainable, steady and comprehensive development,” says the white paper, published by the State Council Information Office under the title “Progress in China’s Human Rights in 2012.”

Development is the key to solving all existing problems and facilitating the progress of human rights in China, the paper says.

China has combined its human rights endeavors with economic, political, cultural, social and ecological construction, it said.

The country has prioritized people’s rights to subsistence and development and made efforts to promote the comprehensive and balanced development of their economic, social and cultural rights, as well as their civil and political rights, it notes.

“After years of unremitting efforts, China has reached a higher level in terms of people’s living standards, democracy, rule of law, cultural development, social security and environmental protection,” says the white paper.

In 2012, the annual per capita net income for both urban and rural residents increased, hefty investment was directed to poverty reduction programs, housing conditions were improved for both urban and rural residents and the state made proactive efforts to boost employment, according to the white paper.

Practical measures have been taken to ensure citizens’ right to know and right to be heard, according to the white paper.

Deepened reform and the rapid development of information technology have given the public greater power to acquire information and express their opinions, it notes.

The creation of the Regulations on Government Information Disclosure has helped establish a system for disclosing information, the white paper says.

In 2012, more than 90 central government departments made their budgets and expenses for official receptions, vehicles and overseas trips known to the public. The Communist Party of China (CPC) continued to press ahead with making Party affairs public and established a spokesperson system for Party committees, the paper says.

The Internet has become an important channel for citizens to exercise their rights to know, participate, be heard and supervise, as well as become an important means for the government to hear public opinions, according to the white paper.

Democracy building at the grassroots level further expanded citizens’ right to participate, the paper says.

By the end of 2012, direct elections had been held for over 98 percent of village committees across the country, with participation reaching 95 percent.”

via China issues white paper on human rights |Politics |chinadaily.com.cn.

14/05/2013

* Britain launches ‘super priority’ same-day visa service for Indians

Times of India: “Britain on Tuesday rolled out the same-day visa for Indians, making it the first country to get a visa to visit UK within 24 hours.

Taj Mahal, Agra, India. Deutsch: Taj Mahal im ...

Taj Mahal, Agra, India. Deutsch: Taj Mahal im indischen Agra. Español: Vista del Taj Mahal, Agra, India. Français : Le Taj Mahal, à Âgrâ, en Inde. Русский: Мавзолей Тадж-Махал, Агра, Индия. (Photo credit: Wikipedia)

The same-day visa service was announced by British prime minister David Cameron during his recent visit to India.

However, it comes with a fat price – it will cost £600 (nearly Rs 50,000) in addition to the price of the visa.

Those in Delhi and Mumbai will be able to apply for this service.

The UK home ministry said the ‘super priority’ visa is the first-of-its-kind to be launched ever and there are plans to expand the scheme to Chennai in the next few weeks.

Immigration minister Mark Harper said “this government is committed to encouraging international business to invest in Britain. India and Britain have a long history of trade and we run our largest visa operation in the world there. We are delighted to be able to launch our first same-day visa service in Delhi and Mumbai, and make our world class visa service even better.”

UK home office added that the service will be available to those who are applying for a six-month or two-year multiple entry visitor visa (excluding student visit visas) and have travelled without difficulty in the last five years to one of the following countries – UK, US, Australia, New Zealand, Canada or a Schengen country. Those who are employees of companies that are members of the Business Express Programme (managed by UK Trade and Investment in India) and are travelling as an official business visitor will also be able to apply.

The Home office added “We strongly recommend that customers with any form of adverse immigration history do not use this service. Using the super priority visa service does not imply or guarantee in any way that your visa application will be successful. All applicants must meet the requirements of the UK’s immigration rules.”"

via Britain launches ‘super priority’ same-day visa service for Indians – The Times of India.

14/05/2013

* India and China; making up, but what about trade?

FT: “Salman Khurshid, India’s foreign minister, is back from a trip to China last week, happy to see the end of a tense stand-off over a long-running border dispute. Settling that issue will re-open the way for a planned visit by Chinese Premier Li Keqiang to India and allow the two countries to concentrate on the big topic on Khurshid’s agenda: trade.

But here, too, relations between the region’s big powers are not entirely friendly.

Back in November 2011, India and China set a target for bilateral trade of $100bn for 2015. That’s quite a leap from $2.3bn a decade ago and marks a concrete step in bringing the two nations closer together.

But the balance of trade is strongly in China’s favour. Now Kurshid has put the November 2011 agreement “on pause” until the imbalance is resolved.

According to India’s department of commerce, India’s exports to China in April to December 2012 were worth $9.7bn. In the same period, China’s exports to India were worth $41.2bn – a bilateral trade deficit for India of $31.5bn, nearly a quarter of India’s entire trade deficit in the period.

Khurshid claimed not to have minced his words:

We said that let the trade imbalance be addressed upfront as an urgent priority, and then of course we can move to the next stage which is the regional trading arrangement.

What does the minister want from China? One target is better market access, especially for India’s IT and pharmaceuticals companies. Indian business leaders complain that exports to China would be much greater if China’s big state owned enterprises could be persuaded to source from foreign suppliers.

But others say a lack of competitiveness among Indian manufacturers contributes to the problem.

“China has a very competitive manufacturing sector that is able to produce at a large scale pretty efficiently and for reasonable prices,” says Louis Kuijs, chief China economist at RBS.

“Sometimes we would be inclined to think there is a lot of [Chinese] government policy behind this. People point to the subsidies that China’s government has given to industries in the past and companies having preferential access to loans. But in the bigger scheme of things, those subsidies aren’t the driving force. China is a bit ahead in industrialisation and has becomes very competitive globally.”

Kuijs doesn’t think this is about to change. Chinese manufacturers do good business in India in both consumer goods and capital goods. And he takes the view that, despite the current cyclical slowdown, both consumption and infrastructure investment will remain robust in India, so demand for Chinese products will continue to grow.

A little tinkering on a calculator provides a bit of good news for Indian trade, however. According to data from the World Trade Organization, India’s global merchandise exports grew faster than China’s between 2005 and 2012. Over the seven-year period, India’s exports grew at an average 18.3 per cent a year, against a figure of 16.3 per cent for China and 9.4 per cent for the world as a whole.

So, Indian exports are growing relatively quickly. But China’s lower growth comes from a far higher base. In 2012, China exported goods worth more than $2tn while India’s exports were worth $293bn. Even with their faster rate of growth, it will take a long time for India’s exporters to catch up on China’s lead.”

via India and China; making up, but what about trade? | beyondbrics.

14/05/2013

* China launches new crackdown on internet celebrities

My personal view is that “the genie is out of the bottle” or that you cannot shut “Pandora’s box” with the Internet and social media.

Telegraph: In its latest bid to contain the often riotous jumble of news and rumour on the Chinese internet, the Communist party has decided to bring the most high-profile and influential voices to heel.

China launches new crackdown on internet celebrities

Before his account was removed, Mr Hao had 1.85 million followers

On Saturday, Hao Qun, a famous 39-year-old novelist and frequent government critic who goes by the pen name Murong Xuecun, found his account on Sina Weibo, China’s version of Twitter, deleted. He tried to open another account but failed.

Before his account was removed, Mr Hao had 1.85 million followers and his postings on the site often went viral.

The world of Weibo, which had 368 million registered users last year, operates much like Speaker’s Corner. Its most famous inhabitants command huge followings and have the power to steer debate in a way that is often uncomfortable for the Communist party.

The deletion of Mr Hao’s account follows a series of actions against other high-profile users.

He Bing, the vice president of the law school at China’s Political Science and Law university was suspended last week “for deliberately spreading rumours”. Prof He, who had close to 500,000 followers, had posted a snippet of news, which later turned out to be false, claiming that there had been a mass stabbing in a hospital in Hefei.

Since the Chinese media is carefully controlled, Weibo has developed into the country’s most important source of news.

And since newspapers and television stations are not allowed to report on many of the topics that are voiced on the internet, rumours often go unchecked and develop their own momentum.

“Some of the [high profile users] have become rumour relay stations,” noted the Global Times in an editorial last week. “Any frequent Weibo user knows that rumours cannot be widely spread unless there is a [high-profile user] helping to spread it,” it added.

“Theoretically they have the right of speech on the internet, but they should also have an equal responsibility. Currently they have no moral responsibility or legal liability for what they post.”

Kaifu Lee, the former head of Google in China, who has more followers (40 million) than Barack Obama does on Twitter (33 million), said he was careful to verify information before posting it on Weibo.

“I realise with the number of followers I have that I need to make sure the messages I forward are legitimate,” he said. “With great power comes great responsibility,” he added.

However, he noted that Weibo already has inbuilt checks that should prevent false news from gaining traction.

“If you suggest something that is clearly false and do not retract it, your reputation (online) will suffer. I think the social ecosystem should largely be self-reinforcing,” he said, adding that Sina already has a type of tribunal system that can rule over the veracity of certain posts.

Mr Lee said he did not know what the purpose of the new government “internet management” campaign was. There already exists a sophisticated censorship system that filters posts and deletes sensitive topics. “I am not in the government, so I cannot say why the government is doing this,” he said.

Zhang Lifan, a historian with almost 270,000 followers said the attempt to control high-profile users would be fruitless. “Shutting them down will not make much difference. For each account they silence, other people will speak up,” he said.

“Of course people should not spread rumours, but the government is using a double standard,” he said. “CCTV (China’s state television station) also sometimes reports the wrong news.”

The campaign appears to have sent a firm message however. Yao Bo, a commentator and restaurateur with close to 900,000 followers said a number of his friends had seen their accounts shut down. “Some of the accounts are shut down for criticising government policy, others for reporting bits of information. I now feel I need to watch what I say before I post something,” he said.”

via China launches new crackdown on internet celebrities – Telegraph.

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