Archive for March, 2013

05/03/2013

* China Internet Executives Get a Seat at the Table in Beijing

WSJ: “Between questions of censorship, laws that require complicated listings in U.S. markets, and fierce and often public confrontations between companies, China’s Internet industry has always had an uncomfortable relationship with the government.

So it’s no small thing that this year, for the first time, the government took special steps to ensure more representatives from the industry could join China’s rubber-stamp parliament, the National People’s Congress, and its advisory body, the Chinese People’s Political Consultative Conference.

According to two people who were part of the consultation process to choose delegates, the change primarily reflects the government’s recognition that leaders of the relatively new industry can be counted among China’s most important business leaders. In August, the United Front Work Department, the branch of the party in charge of bringing in useful people who are not party members to cooperate with the party, held a meeting attended by representatives from about 20 of China’s most important Internet companies, according to a person who attended. At the meeting, the representatives were asked about issues facing the industry, what leaders they thought should be nominated and also what other people should be consulted, according to the person.”

via China Internet Executives Get a Seat at the Table in Beijing – China Real Time Report – WSJ.

04/03/2013

* Reforms and Restructuring at the Chinese NPC Session: Managing Expectations

China Policy Institute: “This year’s Lianghui, the National People’s Congress (NPC) and People’s Political Consultative Conference (PPCC), is important in the sense that a new government will be “sworn in”.

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Following last November’s Party Congress, the Premier-in-waiting will be confirmed at the NPC session. He will take up his position together with a whole new cabinet—following the forming of a new Central Committee of the Party, ministers are expected to be reappointed as well, with a five year term ahead.

But the more critical question is what policy initiatives will the new government press ahead in order to show that it is the right government for the country. The new Party leadership emerged out of the last November’s Party Congress carries a strong mandate of “reform”. Now that the honeymoon effect between the new leadership team and the country is starting to fade away, citizens are watching carefully what the leadership indeed has to offer in terms of real actions.

Before the Party’s Congress, there was already indication that the new leadership team would take structural reforms quite seriously. There was indication that Xi Jinping was already commissioning reform proposals throughout the last 1-2 years. Li Keqiang, to be confirmed as Premier at this Lianghui, was also quick to signal that he was a reform guy and his government will take concrete reform measures. But it will be too early to expect the leadership team to roll out a comprehensive reform plan at this Lianghui. Between the conclusion of November’s Party Congress and this Lianghui, there was simply not enough time to forge a consensus among the Party elite.

The main preoccupation of the last three months have been lining up the provincial leaders and working out the political appointments of state agencies, which will be unveiled at the end of the NPC session. In fact, the Party Plenum (the second of this new Central Committee) that closed last night (28 Feb 2013) explicitly said in its communique that it had agreed on the political appointment list for state agencies. It did not give explicit promises of reform policies that are soon to come.”

via China Policy Institute Blog » Reforms and Restructuring at the NPC Session: Managing Expectations.

04/03/2013

* China: The next phase of growth

China Policy Institute: “As the new Chinese leadership takes over, their biggest economic challenge remains generating growth for another 30 years. In addition to re-balancing the economy and stimulating more productivity, a key aspect will be the re-defining the role of the state. After over 30 years of marketisation and reform, China remains a mixed picture of state-led policies and a growing number of facially neutral laws with some exemptions for state-owned enterprises.

lyuIn addition, the state-owned commercial banks continue to benefit from official “financial repression” policies, such as the preservation of a spread between lending rates and deposit rates. It helps to generate margins for banks and facilitate their recapitalisation. This policy also enables the state-owned commercial banks to continue to support government policies ranging from fiscal stimulus to supporting state-owned enterprises, though not without cost to overall economic growth as financial repression distorts the allocation of capital.

The high levels of capital formation (some 40% of GDP) in the past two decades and the inefficient allocation of capital away from more productive private firms are worrying. The Twelfth Five Year Plan (2011-15) plans to re-balance the economy towards greater domestic demand and less of a reliance on exports. A key part of the plan is to increase consumption and other parts such as more urbanization and services development would support investment in developing larger urban areas where migrants can settle and government services can be dispersed more efficiently.

This plan in actuality has an implicit 30 year time horizon as these policies of migration, urban development and boosting consumption cannot be achieved in a short time period. Unless China can re-orient its growth model including towards more efficient investments by private firms, then it could find it difficult to sustain a strong growth rate. Part of this challenge will include creating a more secure welfare state.”

via China Policy Institute Blog » The next phase of growth.

04/03/2013

* David Beckham takes up China football ambassador role

BBC: “David Beckham has become a global ambassador for Chinese football to help the image of the country’s game.

David Beckham

The Chinese Super League has recently been hit by the exit of ex-Chelsea striker Didier Drogba, while also suffering from a match-fixing scandal.

Beckham, 37, will combine the role with playing for Paris St-Germain.

“I am honoured to have been asked to play such an important role at this special time in Chinese football history,” he said in a statement.

His role will involve attending league matches in China and visiting clubs to help promote the game to children.

“I’m excited by the prospect of promoting the world’s greatest game to Chinese sports fans as I’ve seen first hand the growing interest in football there,” added Beckham.

“This is a wonderful sport that inspires people across the world and brings families together, so I’m relishing the opportunity of introducing more fans to the game.”

Drogba, 34, joined Chinese side Shanghai Shenhua in June 2012 on a two-and-half-year deal after helping Chelsea to win last season’s Champions League.

But the Ivory Coast international left the Chinese club in January 2013 for Turkish side Galatasaray, in a controversial loan move.

Drogba’s former Chelsea team-mate and ex-France striker Nicolas Anelka also left Shanghai in a short-term loan move to Italian side Juventus.

The departures have been a blow to the Chinese game ahead of the 2013 Chinese Super League season starting on 8 March.

There have also been problems with corruption, which resulted in the country’s former top referee being jailed and 58 officials being banned for match-fixing by Fifa and the Chinese Football Association.”

via BBC Sport – David Beckham takes up China football ambassador role.

03/03/2013

* Spill in China Lays Bare Environmental Concerns

NY Times: “The first warning came in the form of dead fish floating in a river.

 

Then officials in this city got confirmation that a chemical spill had taken place at a fertilizer factory upstream. They shut off the tap water, which sent residents into a scramble for bottled water. In the countryside, officials also told farmers not to graze their livestock near the river.

The spill, which occurred on Dec. 31, affected at least 28 villages and a handful of cities of more than one million people, including Handan. Officials here were irate that their counterparts in Changzhi, where the polluting factory was located, had delayed reporting the spill for five days. For the past two months, Changzhi officials and executives at the company running the factory, Tianji Coal Chemical Industry Group, have generally stayed silent, exacerbating anxiety over water quality.

The conflict over the Changzhi spill has drawn attention to the growing problems with water use and pollution in northern China. The region, which has suffered from a drought for decades, is grappling with how industrial companies should operate along rivers. Local officials are shielding polluting companies and covering up environmental degradation, say environmentalists.

“Problems with water weren’t so serious before, but they have become much worse with industrial consumption,” said Yin Qingli, a lawyer in Handan who filed a lawsuit in January against Tianji, which uses water to convert coal to fertilizer at the factory in Changzhi.

Environmental degradation has led many Chinese to question the Communist Party’s management of the country’s economic growth. Addressing the problem is one the greatest challenges for the administration of Xi Jinping, the new chief of the Communist Party. Environmental issues will most likely be on the agenda at the annual meeting of the National People’s Congress, scheduled to begin on Tuesday.”

via Spill in China Lays Bare Environmental Concerns – NYTimes.com.

03/03/2013

* We will defeat Maoists design through development: Jairam Ramesh

Times of India: “The Centre would “fight” Naxals through welfare and empowerment schemes and protect tribals from being used as shields by the ultras, union rural development minister Jairam Ramesh on Sunday said.

Cropped from image of Jairam Ramesh the Indian...

Jairam Ramesh the Indian Minister of State (Independent Charge) for Environment and Forests  (Photo credit: Wikipedia)

“In the name of forest dwellers, Maoists have created an atmosphere of fear (in the society). Our fight against Maoists is continuing. Through schemes for tribal welfare and women empowerment, with a strong political willpower, we will defeat their design,” he told a meeting of Adivasi Adhikar Samavesa at Narla in Odisha’s Kalahandi district.

Stating that Maoists were using tribals as shields, Ramesh said the Naxal issue can be tackled by strengthening Gram Sabhas and accelerating political processes and greater participation among forest dwellers.

As promised, the UPA government had undertaken several developmental schemes for uplift of tribals and many more were in the offing, Ramesh said.

Union Tribal Affairs Minister V Kishore Chandra Deo, who also attended the function, said tribals remained deprived as benefits of developmental schemes failed to percolate to them and they should be brought into the social mainstream.

A large number of tribal representatives from different parts of Kalahandi and adjoining districts drew the attention of the two union ministers to various problems, including the issue of fake caste certificates.

In a major step to empower forest dwellers, Jamguda in tribal dominated Kalahandi became the first village in Odisha and second in the country to exercise its community right to harvest bamboo under the Forest Rights Act.

With transit passes given to gram sabha, residents of Jamguda are now free to harvest and sell bamboo and not wait wait for the government’s special permission.”

via We will defeat Maoists design through development: Jairam Ramesh – The Times of India.

03/03/2013

* China village Shangpu defies officials to demand democracy

SCMP: “Villagers in southern China were locked in a standoff with authorities on Sunday and were demanding democratic polls after a violent clash with thugs linked to a local official over a land transfer.

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Just over a week ago, residents of Shangpu in Guangdong province fought with scores of attackers whom they claimed were sent by the village Communist Party chief and a business tycoon after they protested against a land deal.

Now police are blockading the settlement to outsiders while residents refuse to let officials inside, days before the annual meeting of the country’s legislature, the National People’s Congress (NPC).

The situation recalls a similar episode in Wukan, also in Guangdong and around 100 kilometres from Shangpu, which made headlines worldwide 15 months ago.

At the main entrance of the village of 3,000 people, 40 police and officials stood guard, barring outside vehicles from entering. Not far away, a cloth banner read: “Strongly request legal, democratic elections.”

Shangpu’s two-storey houses, typical of the region, and low-slung family-run workshops are surrounded by fields awaiting spring planting. But the main street is lined with the wrecks of cars damaged in the clash, with glass and metal littering the ground.”

via China village Shangpu defies officials to demand democracy | South China Morning Post.

03/03/2013

* A push for change in China as new leaders take the helm

Reuters: “For Chen Qiuyang, the new Chinese leadership that formally takes over this month can radically improve her life by doing just one thing: providing running water in her village in a remote corner of the northwestern province of Gansu.

Chief of China's Communist Party Xi Jinping is seen in a picture during a visit in Yuangudui village, Gansu Province February 12, 2013. Communist Party chief Xi Jinping, who takes over as China's new president during the annual meeting of the legislature beginning on March 5, visited Yuangudui in February to highlight the poverty that still reigns in huge swaths of the country. Closing a yawning income gap is likely to be one of the policy priorities of his administration and the impoverished villagers are fully conscious of the inequality plaguing China, even if some of them had never heard of Xi Jinping before he showed up in town. Most young people have left for the provincial capital of Lanzhou, where they can make 1,000 yuan ($160) a month, more than the average village income of 800 yuan a year. Picture taken on February 12, 2013. REUTERS-Carlos Barria

“We have to carry water from the well on our shoulders several times day. It’s exhausting,” Chen, who looked older than her 28 years, said in Yuangudui village, resting on a stool outside her home after completing another trip to the well.

Communist Party chief Xi Jinping takes over as China’s new president during the annual meeting of parliament beginning on Tuesday and bridging the widening income gap in the vast nation is one of his foremost challenges.

Xi has effectively been running China since assuming leadership of the party and military – where real power lies – in November, and has already projected a more relaxed, softer image than his stern predecessor Hu Jintao.

But there will be pressure on him to tackle problems accumulated during Hu’s era like inequality and pervasive corruption, which have given rise to often violent outbursts in the world’s second-biggest economy, sending shivers through the party.

Outgoing Premier Wen Jiabao will likely address these issues in his last “state of the nation” report at the National People’s Congress to nearly 3,000 delegates, whose ranks include CEOs, generals, political leaders and Tibetan monks – as well as some of China’s richest businessmen.

China now has 317 billionaires, a fifth of the total number in the world, and is on track to overtake the United States as the largest luxury car market by 2016.

Yet the United Nations says 13 percent of China’s 1.3 billion population, or about 170 million people, still live on less than $1.25 a day.

While parliament is a regimented show of unity that affirms rather than criticizes policies, income redistribution is likely to be a hot topic, along with other issues like ministry restructuring, corruption and the environment.

In January, the State Council, or cabinet, issued a new fiscal framework designed to make rich individuals and state corporations contribute more to government coffers and strengthen a social security net for those at the bottom.

But tackling China’s wealth gap will need more than just taxes. Analysts say state-owned enterprises will have to be privatized and the household registration, or hukou, system that prevents migrants from enjoying the benefits of urban citizens, will have to be dismantled.

“Fiscal reforms and changes to let private firms advance and the state retreat will decide whether this round of reforms can succeed,” said Xia Bin, an economist at the cabinet think-tank Development Research Centre and a former central bank adviser.

“There is definitely no way out,” he wrote in the latest edition of China Finance, a magazine published by the central bank.

via A push for change in China as new leaders take the helm | Reuters.

03/03/2013

* Migrant workers feel like outsiders in mainland cities, says survey

SCMP: “Despite spending years working in mainland cities, migrant workers still feel like outsiders and say their only sense of happiness comes from their families, a Renmin University survey has found.

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They also see themselves as the bottom of society and feel alienated because they have no influence on their lives or society in general, the survey found, with young migrant workers even gloomier about their prospects.

The findings underscore the challenge facing the new administration in realising premier-in-waiting Li Keqiang‘s high-profile commitment to people-oriented urbanisation.

The survey of 2,011 migrant workers, conducted in 20 major cities, found their sense of happiness came mainly from the satisfaction of their basic needs, such as income and education, how close they were to home and how often they could see their children.

Most said they felt that their social standing was very low and they were less happy than those who thought more highly of themselves. More than half of those with low opinions of themselves felt lonely, bored and incapable of having an impact on their lives or society.

The survey also found that migrant workers were not necessarily happier in more economically developed cities, with those in central and western regions where competition was less fierce generally more content.

Professor Hu Ping , from Renmin University’s psychology department, which conducted the survey, said the government should pay more attention to the well-being of migrant workers.

“Not just their basic living requirements and food but also their social needs such as being recognised, accepted and respected by society,” Hu said. “Their needs to participate in social life should also be met.”

Compared with a similar survey last year, migrant workers’ living standards had improved but their sense of happiness from social involvement and social standing had dipped.

Wang Junxiu , a researcher with the Chinese Academy of Social Science, said the survey showed that the sense of happiness of migrant workers was not entirely based on how much money they made but also how they felt about the future.

“The core of urbanisation is how to make these migrant workers urban residents and from the survey we see the migrant workers are not … wanting different levels of needs one by one,” Wang said. “Instead, they need to fulfil their needs at the same time and the government should do more to make them integrate into society.”

Hu said the government should be alert to the class awareness of migrant workers and work out strategies to effectively resolve conflicts among different social strata to avoid conflict.

Professor Ye Yumin , from Renmin University’s school of public administration and policy, said urbanisation should mean not only that people could move from place to place but also allow them to move up the social ladder. “Otherwise it is not successful,” she said.

Ye said it was the government’s job to create a fair channel for migrant workers to move up and the most effective way was through education.

via Migrant workers feel like outsiders in mainland cities, says survey | South China Morning Post.

03/03/2013

Another indication of China’s industry going up-stream.

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