Posts tagged ‘China’

25/05/2013

* Restraint is the new red in China

The message for restraint and austerity flies in the face of the need to rebalance the economy from a manufacturing/export led one to a consumer led one.

LA Times: “President Xi Jinping is pressing the Communist Party’s elite to cut back on lavish living amid growing public resentment. The economic effect is far-reaching.

Men pass a billboard outside a mall in Beijing this month.

BEIJING — Exports of elegant Swiss watches to China have plunged. Sales of Mercedes-Benz and other premium sedans are slowing. And high-end restaurants, coming off their worst Chinese New Year festival in years, are starting to change their menus to lure ordinary families.

At a Montblanc shop in downtown Beijing, sales clerks recall the days when they rang up as many as 10 of the top-selling fountain pens every day. And never mind the $1,400 price tag: The platinum-plated pen capped with a half-carat diamond was a particular favorite. Nowadays the store sells one such pen every two to three days, said a saleswoman surnamed Ren, adding sadly that her pay is commission-based.”

via Restraint is the new red in China – Los Angeles Times.

See also: http://chindia-alert.org/2013/04/19/chinas-growth-the-making-of-an-economic-superpower-dr-linda-yueh/

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25/05/2013

* Xi pledges to safeguard the environment

China Daily: “China will never pursue temporary economic growth at the expense of environmental degradation, President Xi Jinping vowed on Friday.

Xi Jinping 习近平

Xi Jinping 习近平 (Photo credit: Wikipedia)

“Those who made rash decisions regardless of the ecological environment, resulting in serious consequences, must be brought to account, and should be held accountable for a lifetime,” he said.

“Only by implementing the strictest system and the most stringent rule of law can we provide reliable protection for ecological civilization.”

Xi was speaking during a group study session attended by members of the Political Bureau of the Communist Party of China Central Committee and environmental scholars.

Meng Wei, head of the Chinese Research Academy of Environmental Sciences and an academician at the Chinese Academy of Engineering, was one of the two key lecturers at the session.

He told China Daily that by using the words “held accountable for a lifetime”, Xi is referring to both requirements and inspirations.

“Officials are responsible for benefiting the people within their regions, not only in terms of gross domestic product, but also with green hills and clean water,” Meng said. “Maintaining a good ecological environment should also be taken into account as part of officials’ political achievements.”

Xi reaffirmed the importance of balancing economic development and environmental protection, calling for an overall plan for land development, and for a scientific distribution of production, living and ecological space, leaving more room for nature to repair itself.

He emphasized the urgency of implementing major ecological restoration projects, and of enhancing ecological production capacity.

He said the idea of guarding the bottom line of national ecological safety should be firmly established.”

via Xi pledges to safeguard the environment |Politics |chinadaily.com.cn.

See also: http://chindia-alert.org/economic-factors/greening-of-china/

25/05/2013

* Guangzhou rice scare shows open government remains elusive

SCMP: “Cover-up of cadmium scandal reveals authorities’ reluctance to comply with 2007 rule on non-classified information

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Guangzhou rice scare shows open government remains elusive

Many Guangzhou residents have been worried and angry for more than a week after being told that nearly half the rice they buy from local markets may contain excessive levels of cadmium, a carcinogenic heavy metal.

The city’s Food and Drug Administration said on May 16 that it had checked 18 batches of rice between January and March and had found cadmium levels in eight of them exceeded the national food safety standard.

But it declined to disclose any information about the tainted rice, such as where it was produced and by which brands. The food-safety watchdog said it was “inconvenient” to share the information with the public but did not explain why.

The cover-up sparked a national outcry. Even some state-owned media criticised the regulator, saying the refusal to disclose the information was a crime.

After coming under a great deal of pressure, the watchdog disclosed the names of the rice producers last Saturday, but still refused to detail the amount of tainted rice sold.

The Guangzhou case is merely the tip of the proverbial iceberg in showing how reluctant mainland officials are to allow open access to government data.

The Regulations on Open Government Information, introduced by Beijing in 2007, say all levels of local government should make their non-classified information public.

The regulations set clear standards for the format authorities should follow when publishing and organising the data on their websites, because of concerns that members of the public would otherwise be unable to find the information they were looking for.

But six years later, mainland officials remain reluctant to publicise such information.”

via Guangzhou rice scare shows open government remains elusive | South China Morning Post.

25/05/2013

* China Plans to Reduce the State’s Role in the Economy

NYT: “The Chinese government is planning for private businesses and market forces to play a larger role in its economy, in a major policy shift intended to improve living conditions for the middle class and to make China an even stronger competitor on the global stage.

Li Keqiang, China’s prime minister, said the nation would reduce the state’s role in the economy in hopes of unleashing the country’s creative energies.

In a speech to party cadres containing some of the boldest pro-market rhetoric they have heard in more than a decade, the country’s new prime minister, Li Keqiang, said this month that the central government would reduce the state’s role in economic matters in the hope of unleashing the creative energies of a nation with the world’s second-largest economy after that of the United States.

On Friday, the Chinese government issued a set of policy proposals that seemed to show that Mr. Li and other leaders were serious about reducing government intervention in the marketplace and giving competition among private businesses a bigger role in investment decisions and setting prices. Whether Beijing can restructure an economy that is thoroughly addicted to state credit and government directives is unclear. But analysts see such announcements as the strongest signs yet that top policy makers are serious about revamping the nation’s growth model.

“This is radical stuff, really,” said Stephen Green, an economist at the British bank Standard Chartered and an expert on the Chinese economy. “People have talked about this for a long time, but now we’re getting a clearly spoken reform agenda from the top.”

China’s leaders are under greater pressure to change as growth slows and the limitations of its state-led, investment-driven economy are becoming more evident. This month, manufacturing activity contracted for the first time in seven months, according to an independent survey by HSBC. Economists are lowering their growth forecasts and weighing the risks associated with high levels of corporate and government debt that have built up over the last five years.

“There are quite a number of messages coming from these new leaders,” said Huang Yiping, chief economist for emerging Asia at the British bank Barclays. “They realize that if we continue to delay reforms, the economy could be in deep trouble.””

via China Plans to Reduce the State’s Role in the Economy – NYTimes.com.

See also: http://chindia-alert.org/2013/04/19/chinas-growth-the-making-of-an-economic-superpower-dr-linda-yueh/

25/05/2013

* China seals first free-trade deal with Switzerland

Will this be the first of many FTAs?  Will the floodgates be opened?

BBC: “China has signed the framework of a free-trade agreement with Switzerland, which could become Beijing’s first such deal with a major Western economy.

Chinese secretary of trade and Swiss economy minister sign memorandum of understanding of free trade on 24 May

The signing ceremony took place during an official visit by Chinese Premier Li Keqiang to Switzerland.

Bilateral trade between the two countries is worth $26bn through imports and exports of watches, medicines, textiles and dairy products.

Mr Li said he hoped the deal would be felt beyond Switzerland’s borders.

“This free-trade deal is the first between China and a continental European economy, and the first with one of the 20 leading economies of the globe,” Mr Li told reporters after the two countries signed the preliminary agreement.

“This has huge meaning for global free-trade,” he added.

For his part, Swiss President Ueli Maurer described the agreement as a “real milestone”.

China is Switzerland’s third biggest trading partner after the European Union and America, with exports to China of watches, pharmaceuticals and machinery amounting to over $22bn.

It is no coincidence that China’s premier made Switzerland his first stop on his brief European tour, the BBC’s Imogen Foulkes in Berne says.

China has hinted it could also make Switzerland its financial centre of choice, if Beijing allows offshore trading of its currency, the yuan, she adds.”

via BBC News – China seals first free-trade deal with Switzerland.

23/05/2013

* China urbanization plan hits roadblock over spending fears – sources

Reuters: “China’s plan to spend $6.5 trillion on urbanization to bolster the economy is running into snags, sources close to the government said, as top leaders fear another spending binge could push up local debt levels and inflate a property bubble.

A general view of newly built houses at Dadun village of Lingshui ethnic Li Autonomous County, Hainan province, in this January 18, 2013 file photo. REUTERS-Stringer-Files

Premier Li Keqiang has rejected an urbanization proposal drafted by the National Development and Reform Commission (NDRC), seeking changes to put more emphasis on economic reform, according to the sources, who are familiar with the matter.

Many local authorities have already lobbied to get funding for projects, ringing alarm bells among top leaders in Beijing.

State-owned China Development Bank recently pledged to lend 150 billion yuan ($24.47 billion) to southeastern Fujian province to support its urbanization and channel 30 billion yuan into urban projects in central Anhui province, according to Chinese media.

“The urbanization plan could be delayed. Top leaders have seen potential risks if the program cannot be kept on the right path,” said an economist at a top think-tank which advises the cabinet.

“The leadership aims to jumpstart reforms, but local governments see this in a different perspective – they view this as the last opportunity to boost investment,” said the economist who requested anonymity due to the sensitivity of the issue.

China plans to spend some 40 trillion yuan ($6.5 trillion) to bring 400 million people to its cities over the next decade as leaders such as Li try to sustain economic growth that slowed to a 13-year low of 7.8 percent in 2012.

Li, the driving force behind urbanization, has turned more cautious following warnings from leading academics over the risks, said the think-tank sources who are involved in the policy discussions.

The NDRC is racing against the clock to amend the long-term plan in a bid to publish it by the end of June.”

via Exclusive :China urbanization plan hits roadblock over spending fears – sources | Reuters.

23/05/2013

* China to lend $580 mln for Sri Lanka development projects

China is past-master at geopolitics. India is a novice.

Reuters: “China Development Bank Corporation will lend $580 million to Sri Lanka to help implement key infrastructure projects, a government document released on Wednesday showed.

English: Location map of Sri Lanka. Equirectan...

English: Location map of Sri Lanka. Equirectangular projection. Strechted by 101.0%. Geographic limits of the map: N: 10.2° N S: 5.5° N W: 79.2° E E: 82.3° E Made with Natural Earth. Free vector and raster map data @ naturalearthdata.com. (Photo credit: Wikipedia)

The loan will bring CDB’s total lending to Sri Lanka to more than $1.4 billion. China’s increasing influence in the island nation has stoked concerns in neighbouring India.

According to the document, $300 million of the loan will be spent on developing roads and $200 million on water supply projects, with the rest going to the national business school.

It said CDB had already extended $652 million for road development projects and $214 million for an irrigation project.

The loan announcement comes ahead of a four-day official visit to China by Sri Lankan President Mahinda Rajapaksa.

The $59 billion economy has increasingly relied on China for financing and technical expertise for reconstruction projects following the end of its long civil war in May 2009.

In March, China’s Export-Import Bank agreed a $278.2 million loan to finance a rail track to a port Beijing is building in Sri Lanka’s deep south of Hambantota.

China has loaned $1.5 billion for the port’s construction and $209 million for a nearby airport.

Similar port developments from Myanmar to Pakistan have raised Indian fears about Chinese political and military influence, but Rajapaksa has rejected such concerns, saying China’s presence in Sri Lanka is strictly business-related.”

via China to lend $580 mln for Sri Lanka development projects | Reuters.

See also: http://chindia-alert.org/political-factors/geopolitics-chinese/

23/05/2013

* Conservatives counter demands for constitutional rule in China

It seems the ‘gloves are off’ – conservatives versus the President: see last para of this article.

SCMP: “Chinese conservatives have come out to argue against the adoption of “constitutional rule”, a term increasingly used by liberals to demand the realisation of basic human rights guaranteed in the Chinese constitution.

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The nationalistic Global Times in an editorial on Wednesday called such demands “empty political slogans” made by “a group of misled intellectuals”.

These intellectuals wanted to “change China’s course of development”, the paper argued.

“If the entire Western world together can’t muster the might [to change China's course], then a small group of domestic dissenters will be even less able to do so.”

Even though the Chinese constitution in theory guarantees freedom of speech, the press and to demonstrate, and the right to elect and be elected, human rights organisations say such rights are consistently cracked down upon.

Many lament that courts cannot invoke the constitution to protect the civil and political rights of citizens. Nobel Peace Prize laureate Liu Xiaobo has attempted to cite rights guaranteed in the constitution in his trial for “inciting subversion of state power” that led to an 11-year prison sentence in 2009.

When the liberal Guangzhou-based newspaper Southern Weekly called for a realisation of a “constitutional dream” in its traditional New Years editorial in January, censors replaced the text with a more muted version, triggering a rare public strike by journalists.

Democracy activists are often seen holding placards with the Chinese characters for “constitutional rule” in photos shared on microblogs.

The editorial in the Global Times, which ranks among the most widely read dailies in China, comes a day after a Beijing law scholar Yang Xiaoqing wrote an article with similar reasoning for the Communist Party’s bi-weekly Red Flag Magazine.

Citing Marx and Engels, the Renmin University professor repudiated what she called the “old Western” understanding of constitutional rule as an oppressive tool of the – in Marxian terms – capitalist stage of development.

Those with capital use the constitution’s allure to trick those who have nothing into believing that they lived in a fair system, she argued in ideologically orthodox terms. Citing Deng Xiaoping and Jiang Zemin, she predicted chaos for China if the country were ever to come under constituional rule.

In contrast to that chaos, Yang offers a vision of a “Chinese contribution to humanity in regards to constitutional rule” in which China’s People’s Congresses under the leadership of the Communist Party are truly representative of the nation’s people and are able to supervise the judiciary.

While a few people supported her comments, they have predominantely been mocked on microblogs, with thousands of people sharing her photo. Lei Yi, a Beijing-based historian, sarcastically wrote in a microblog post that he was reminded of Stalin and Pol Pot.

President Xi Jinping has repeatedly called for more respect of the constitution since he assumed the leadership of the Communist Party in autumn. “No organisation or individual should be put above the constitution and the law,” he reportedly said at a Politburo seminar in February.”

via Conservatives counter demands for constitutional rule in China | South China Morning Post.

22/05/2013

* Chinese Bear Bile Farming Draws Charges of Cruelty

Until recently there was little sign that the Chinese public had any awareness of issues such as this.  Perhaps, in time, elephants, rhinos and other endangered species will also gain the public awareness needed to change the government’s official stance on these matters – which, up to now – has been one of “China is not doing anything to endanger any of these animals”.

NY Times: “It was, at first glance, a rather modest initial public offering by a small Chinese company seeking to expand production of the key ingredient used in traditional remedies said to shrink gallstones, reduce fevers and sooth the after effects of excessive drinking.

A bile bear in a “crush cage” on Huizhou Farm,...

A bile bear in a “crush cage” on Huizhou Farm, China. #Bile%20Bears Asian Animal Protection Network (Photo credit: Wikipedia)

Guizhentang Pharmaceutical uses bears to produce a traditional remedy it markets for a variety of ailments. A worker, above, drained bile from a bear’s gallbladder in Fujian Province.

But Guizhentang Pharmaceutical, the country’s largest producer of bear bile extract, apparently overlooked one important factor before submitting its application to the Shenzhen Stock Exchange: China’s increasingly audacious animal rights movement.

Guizhentang’s proposal to triple the company’s stock of captive bears, to 1,200 from 400, provoked a firestorm from those opposed to bear bile farming, a process that involves inserting tubes into the abdomens of bears and “milking” them, sometimes for years.

Protesters in bear suits picketed drugstores, hackers briefly brought down Guizhentang’s Web site and more than 70 Chinese celebrities, including the basketball star Yao Ming and the pop diva Han Hong, circulated a petition calling on the stock exchange to reject the I.P.O.

After some of China’s biggest news media outlets posted harrowing undercover footage revealing cages so tight the bears could barely move, Guizhentang last month withdrew its application, saying it needed more time to put together its filing.

For China’s animal welfare advocates, the victory signaled the growing clout of a movement that is frequently derided as bourgeois, frivolous or worse. Its most vociferous opponents paint animal advocates as foreign-financed traitors who would do away with such hallowed Chinese traditions as dog meat hot pot, ivory carving and dried deer penis, consumed to increase virility.

Deborah Cao, a lawyer who frequently writes about animal rights in China, said campaigns like the one that defeated Guizhentang showed how social media brought together the generation of educated Chinese urbanites who grew up with household pets and anthropomorphic Disney characters. “It’s a bottom-up, grass-roots movement, one that is contributing to an emerging civil society increasingly aware of individual rights and obligations, be it to humans or animals,” she said.

Such activism is even more notable given the constraints the Communist Party typically imposes on public lobbying, street protests or any unsanctioned organizing.

Advocates have not yet persuaded the government to enact animal welfare legislation. But optimists say they have started to chip away at the long-held notion that animals exist to satisfy the medicinal and gastronomical needs of humans.

Activists point to the growing visibility of public awareness campaigns targeting the consumption of shark fins as well as a recent spate of vigilante rescue efforts that have blocked trucks laden with cats and dogs from reaching the slaughterhouse. In December, the state-run broadcaster CCTV ran a series of exposés highlighting the illegal consumption of monitor lizards, rhesus monkeys, barking deer and other wildlife, and the police crackdown on black market dealers that followed.

via Chinese Bear Bile Farming Draws Charges of Cruelty – NYTimes.com.

21/05/2013

* Xi Jinping’s ‘emotional intelligence’ comments spark debate

I searched through Google and couldn’t find any reference to EIQ and ‘world leader’.  There were lots of references to EIQ and business. So, I guess this is the first time a world leader has espoused EIQ. Amazing, its a Chinese and not Western leader.

SCMP: “It’s not your educational background, integrity, experience, or people you know that matters. What it takes to be a good communist leader is “emotional intelligence”, or EQ, says Chinese President Xi Jinping.

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Xi enlightened his audience during a  recent visit to a job fair in Tianjin while talking to a local village official.

Intelligence quotient and emotional quotient – which is more important?,” he asked.

After an official said “both”, Xi answered his own question,

“EQ is important for adapting to society, although it should be used together with professional knowledge and techniques,”  he said.

His talk sparked a flurry of media reports and analysis.

Study Times, a publication of Central Party School of the Communist Party of China, published a 3,000-word article headlined “Emotional Quotient and its three major components.”

The author explained that in the wake of Xi’s talk, there has been renewed enthusiasm about “EQ” , which called for an in-depth piece on the topic.

But it looks like not everyone agrees.

“It’s exactly the opposite kind of leader we need,” aruged a micro-blogger on Weibo, “ Those who stick to rules and don’t bend regulations to benefit themselves.”

“What China needs most is rule of law,” wrote another, “definitely not EQ.”

via Xi Jinping’s ‘emotional intelligence’ comments spark debate | South China Morning Post.

See also: http://en.wikipedia.org/wiki/Emotional_intelligence

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