Archive for May, 2013

11/05/2013

* India, China working on Border Cooperation Agreement: Khurshid

The Hindu: “Mr. Khurshid visited China in the backdrop of the Chinese incursion in Daulat Beg Oldi.

External Affairs Minister Salman Khurshid speaking to the reporters after after meeting former Railways Minister Pawan Kumar Bansal at his residence in New Delhi on Saturday. Photo: PTI

Against the backdrop of China’s recent incursion in Ladakh, External Affairs Minister Salman Khurshid on Saturday said the two countries are working on a new Border Defence Cooperation Agreement.

Mr. Khurshid, just back from his visit to Beijing, said the two sides had underlined that the incidents like the recent incursion in Daulat Beg Oldi should not happen and agreed that this issue should not come in way of improving ties.

Mr. Khurshid told reporters here that special representatives of India and China will meet in a couple of months to discuss in detail the issues related to boundary. “China has proposed sometime back a proposal for Border Defence Cooperation Agreement… We have also given our suggestions,” he said.

On the recent incursion of 19 km into India’s territory by Chinese troops, he said, “we did not do any post-mortem or aportion blame.” He expressed satisfaction that the mechanisms in place worked well to resolve the stand off.

On the contentious issues which could be raised during the visit of Chinese premier Li Keqiang, Mr. Khurshid said, “there are no prickly issues, issues of major differences which can be seen as obstacles.” He said MoUs would be signed during the Chinese premier’s visit and some during Prime Minister Manmohan Singh’s subsequent visit to Beijing later this year.

“This is for the first time since 1954 that a two way visit by the two Prime Ministers of the two countries in the same year,” he said.”

via India, China working on Border Cooperation Agreement: Khurshid – The Hindu.

11/05/2013

* Indian indigenous aircraft carrier to be launched in August: Antony

Times of India: “Indian Navy‘s indigenously-built aircraft carrier would be launched on August 12 this year, while INS Vikramaditya (purchased from Russia) will arrive before the end of 2013, Union defence minister A K Antony said here on Saturday.

“INS Vikramaditya is going to be a reality, as promised the ship would be delivered before the end of this year,” Antony told reporters after the commissioning of fighter aircraft MiG29K into Navy at INS Hansa here.

“While on one side Vikramaditya is coming this year, on August 12 we are going to launch indigenous aircraft carrier at Cochin,” he said, without elaborating further.

The carrier when it was Admiral Gorshkov

The carrier when it was Admiral Gorshkov (Photo credit: Wikipedia)

Asserting that the country was giving a thrust to modernisation of defence forces, Antony said, “Navy modernisation is one area where we are going fast-paced now.

“Almost all the navies of important countries want close cooperation with the Indian Navy,” he said, adding that “Indian Navy is well-prepared, most modern and (one of) the most capable navies of the world.

“(Over) Last many years, there has been well-planned induction wherein we are replacing old platforms and adding new ones,” he said.”

via Indigenous aircraft carrier to be launched in August: Antony – The Times of India.

11/05/2013

* Should China Try to Feed Itself?

BusinessWeek: “For China’s leaders, there was one problem in an otherwise benign inflation report for April. First, the good news: The consumer price index rose 2.4 percent, about in line with economists’ expectations. While inflation accelerated from 2.1 percent in March, the April figure is still well below the government’s target of 3.5 percent for the year.

An aerial view of the fish farms in the countryside next to Hefei, in central China's Anhui province

So what’s the catch? Food prices. With vegetables getting more expensive, the cost of eating jumped 4 percent last month, compared with an increase of 2.7 percent in March. The rising cost of food could create more difficulties in the coming months, the People’s Bank of China warned yesterday.

The Chinese government is well aware of the political sensitivity of food, which is one reason the country is sticking to a policy that promotes self-sufficiency. The country’s farmers met about 98 percent of China’s demand for grain last year, Vice Minister of Agriculture Chen Xiaohua said at a news conference in March.

If the country wants to ensure lower prices, though, China should rethink that self-sufficiency policy, argues Paul Conway, the vice chairman of Cargill. “As they become richer and more urbanized, they will have to become less self-sufficient in grain,” he says. The Minnesota-based agribusiness giant is a major player in exporting wheat, corn, and soybeans from the U.S. and other countries in the Western Hemisphere to Asia, so he certainly has a good business reason for wanting China to buy more food from abroad.

But, Conway says, China and other Asian countries with huge populations, such as India and Indonesia, stand to benefit from reducing their reliance on local farmers. “There is still a tendency in some parts of Asia to food security through food self-sufficiency,” he says from Singapore, where he gave a speech on May 8 about food security. Giving up on that idea and instead importing food from low-cost producers in the U.S., Canada, Brazil, and Argentina would be “the best guarantee of Asian food security,” he says. “For grains and oilseeds, Asia’s self-interest is to have access to the surpluses from the Western Hemisphere.”

In order to bolster its food security, China also should be investing in agricultural infrastructure in other countries, Conway says. Just as Chinese investors are helping to fund transportation projects in African countries that supply minerals to China’s factories, the country should also be putting money into projects that could make it easier for farmers in places like Brazil to get their crops to seaports. That, he argues, makes more sense than just buying farms overseas. “From a food security standpoint, the fact that you own land in another country doesn’t guarantee you anything. Borders can always be closed. If China wants to improve the flow of grains, instead of investing in land, invest in infrastructure.””

via Should China Try to Feed Itself? – Businessweek.

11/05/2013

* India Congress ministers quit amid scandals

BBC: “Two Indian ministers have resigned in one day over links with corruption claims, plunging the Congress party into crisis.

Former Indian Railway Minister Pawan Kumar Bansal and former  Law Minister Ashwani KumarRailway Minister Pawan Kumar Bansal and Law Minister Ashwani Kumar resigned in separate incidents.Mr Bansal quit after police arrested his nephew for bribery, and Mr Kumar stepped down amid claims he influenced a report into the coal industry.Reports suggest Congress leaders are holding crisis meetings.The coalition government has been beset by corruption scandals recently.Mr Bansal called for a police investigation into the bribery allegations.”I have always observed the highest standard of probity in public life,” he told local media.”

via BBC News – India Congress ministers quit amid scandals.

10/05/2013

* Mao Zedong’s granddaughter among China’s richest people

SCMP: “Mao Zedong’s granddaughter has become one of China’s richest people, according to an annual ranking of the nation’s richest 500.

Kong Dongmei, right, granddaughter of the father of Communist China, Mao Zedong

Kong Dongmei, the granddaughter of the founder of the People’s Republic and his third wife He Zizhen, along with her husband Chen Dongsheng have the combined wealth of five billion yuan (HK$6.3 billion), putting them at number 242 in the annual ranking by the Guangdong-based New Fortune magazine.

Their marriage has only become publicly known last year. It was rumoured the couple of 15 years could only marry after Chen divorced his previous wife in 2011.

Chen is the founder of China’s first national auction house Guardian and the country’s fourth largest insurance house Taikang.

“The House of Mao will never engage in business,” Mao’s only known grandson Mao Xinyu, a major general in the People’s Liberation Army, reportedly pledged, perhaps to avoid suspicion of exploiting the illustrious ancestor for personal gain.

Xinyu’s comments came at a time when China was debating the legacy and business ties of disgraced Chongqing Party Secretary Bo Xilai, himself the son of one of the founding fathers of Communist China, Bo Yibo.

Mao Xinyu is Kong’s half-brother. His grandmother Yang Kaihui was Mao’s second wife. Both Kong and Mao Xinyu have written books titled My Grandpa Mao.

In stark contrast to their aristocratic background, the man who topped the list of China’s richest, Zong Qinghou, started his career as a salt harvester in Zhejiang province.

With an estimated wealth of 70 billion yuan, the co-founder of the Wahaha beverages group has 14-times the wealth of the Great Helmsman’s offspring.”

via Mao Zedong’s granddaughter among China’s richest people | South China Morning Post.

10/05/2013

* Gandhi’s old sandals to be resold

The Times: “Perhaps the only item of footwear to become a metaphor for life as well as a drinker’s lament is to be sold at auction later this month.

Gandhi’s sandals

Mahatma Gandhi’s sandals were given to a friend in India in 1924 and are expected to fetch at least £15,000.

The badly worn size-eights are part of a collection of articles once belonging to the leader of India’s independence movement that has recently come to light.Other items include a shawl woven from thread that Gandhi spun, his bedsheet, his prayer beads and personal photographs. The entire collection is expected to sell for £250,000.

The story of Gandhi’s missing sandal has become a popular metaphor illustrating his philosophy of life. He supposedly dropped a sandal while running for a train but only noticed that it was missing when he was on board. In the story he tosses the other sandal on to the swiftly disappearing platform so that the pair might benefit someone. At the other end of the philosophical spectrum the expression “I’ve got a tongue as dry as Gandhi’s flip-flop” is an invitation to a drink.

Richard Westwood-Brookes, of Mullock’s in Ludlow, Shropshire, which is selling the memorabilia on May 21, said: “Items that belonged to Gandhi are treated often as holy relics.””

via Gandhi’s old sandals to be resold | The Times.

09/05/2013

* China investigates reports of Zhang Yimou’s seven children

Until this article, I knew of fines for more than one child, but had no clue as to the level of such fines.

SCMP: “Chinese authorities have begun investigating reports that Zhang Yimou, one of China’s best-known movie directors, has seven children in violation of strict family planning rules, which could result in a fine of 160 million yuan (HK$202 million), state media said on Thursday.

zhang2.jpg

Online reports have surfaced that Zhang, who dazzled the world in 2008 with his Beijing Olympic ceremonies, “has at least seven children and will face a 160 million yuan fine”, said the website of the People’s Daily, the Chinese Communist Party mouthpiece.

An unnamed official at the Wuxi Municipal Population and Family Planning Commission said “based on the current policies and regulations, an investigation is currently being carried out”, according to the report.

It is unclear where Zhang’s children were born, the report said, citing a worker at the Jiangsu Province Population and Family Planning Commission.

Both the Wuxi and Jiangsu Population and Family Planning Commission could not be reached for comment.

Zhang, 61, once the bad-boy of Chinese cinema whose movies were sometimes banned at home while popular overseas, has since become a darling of the Communist Party, despite long being a subject of tabloid gossip for alleged trysts with his actresses.

Zhang’s newest project, a film to depict wartime Nanjing under Japanese occupation starred Hollywood actor Christian Bale in a leading role.

There are signs that China may loosen the one-child policy, introduced in the late 1970s to prevent population growth spiraling out of control. The policy has long been opposed by human rights and religious groups but is also now regarded by many experts as outdated and harmful to the economy.

Last December, authorities in southern Guangdong said they were investigating a family for having given birth to octuplets through in-vitro fertilisation, a case that sparked intense public debate about China’s one-child policy and how wealthy families were able to circumvent the rules.

The one-child policy was meant to last only 30 years and there are now numerous exceptions to it. But it still applies to about 63 per cent of the population.”

via China investigates reports of Zhang Yimou’s seven children | South China Morning Post.

09/05/2013

* China’s Airport Building Boom

BusinessWeek: “The first rule of airline travel in China is: Don’t cut connections close. Assume your first flight will be late, and leave plenty of time than to scramble to your next gate. Fortunately, if you’re flying between major Chinese cities, you can bide your time in a gleaming new airport with plenty of shops selling tea, lattes, snacks, souvenirs, and even prestige apparel. (Only in Chinese airports have I seen stores selling “BMW Lifestyle” clothing).

Beijing Capital Airport

In China, travel is booming, giving rise to new airports and hotels to accommodate the inbound masses. The International Air Transport Association forecasts that by 2016, China will have 415 million fliers annually, second only to the U.S. in volume of domestic passengers. Volume at the Beijing Capital Airport has tripled in the last 10 years; the city’s second major airport will open by 2018. In all, the current Five Year Plan calls for 55 new civil airports by 2015, bringing China’s total to 230.

The build-out is good news for the obvious suspects, including travelers, hotels, and retailers that profit from travel. In a recent report, the Virginia-based Global Business Travel Association estimated that spending related to business travel in China will increase 14.7 percent in 2013, to $224 billion. (GBTA estimates comparable spending in the U.S. in 2013 will be $268.5 billion.)

For many of the Chinese cities caught up in the airport-construction boom, it’s been a mixed blessing. In 2011, China’s Civil Aviation Administration recorded that 75 percent of its civil airports were operating at a loss, according to the China Daily. High levels of debt assumed by local governments to finance airports and other large infrastructure projects are a growing worry for China. Last month Fitch downgraded China’s credit rating, expressing concerns especially about local debt. In its assessment, the credit rating agency noted: “Fitch believes total credit in the economy including various forms of ‘shadow banking‘ activity may have reached 198 percent of GDP at end-2012, up from 125 percent at end-2008.”

One component of the mismatch is that Chinese airline carriers have focused on connecting major hubs, with far fewer flights to secondary destinations. As a result, while small regional airports are often eerily quiet, industry analysts believe Beijing’s Capital Airport is on track to overtake Atlanta’s Hartsfield-Jackson International Airport as the world’s busiest.”

via China’s Airport Building Boom – Businessweek.

09/05/2013

* China Dips a Toe Into Mideast Diplomacy

For the first time, China is taking its role as a world leader in international politics, rather than staying in the background.

NY Times: “China took a modest step into Middle East diplomacy this week, hosting back-to-back visits from Mahmoud Abbas, the leader of the Palestinian Authority, and Prime Minister Benjamin Netanyahu of Israel.

But this was not exactly Camp David by the Forbidden City.

The fact that the visits were timed so the two leaders would not meet — Mr. Abbas left Beijing on Tuesday, and Mr. Netanyahu arrived Wednesday after a swing through Shanghai — signaled that neither they nor Xi Jinping, China’s leader, were ready for actual talks. But Mr. Xi did present a four-point peace proposal to Mr. Abbas, which, though it did not contain any breakthrough ideas, hinted that China had given some thought to playing a more energetic, if very limited, role as mediator in one of the world’s most protracted conflicts.

“As China’s economy, national strength and international status grow, Arab countries are looking more to China,” said Guo Xiangang, a vice president of the China Institute of International Studies in Beijing who follows China’s relations with Middle Eastern nations. “The expectations they place on China are growing.”

In their meeting on Wednesday afternoon, Prime Minister Li Keqiang of China told Mr. Netanyahu that “the Palestinian issue is a core issue affecting the peace and stability of the Middle East, and a peaceful solution reached through dialogue and negotiations is the only effective answer,” according to Xinhua, the state news agency.

“As a friend of both Israel and the Palestinians, China has always maintained an objective and fair stance, and is willing to strive together with all sides to actively advance the Middle East peace process,” Mr. Li said.

China has been careful to take a clear and consistent but not strong stand on the Israeli-Palestinian issue. China has growing trade ties with Israel — the value of their trade relationship has been estimated in official Chinese news reports to be nearly $10 billion a year — but it supports Palestinian statehood and relies on crude oil imports from Iran and Arab nations to meet its energy needs. About half of China’s oil imports come from the Middle East, and that dependency is expected to deepen.

The core of the four-point plan that Mr. Xi presented to Mr. Abbas was the establishment of a Palestinian state alongside Israel, based on the 1967 boundaries and with East Jerusalem as its capital. The plan was a formal version of China’s traditional stand on the conflict.

At the United Nations, where China sits on the Security Council, Mr. Abbas has pushed for greater status for the Palestinians, which has drawn economic reprisals from Israel and has led to a reduction in donations from foreign supporters. On Tuesday, the Chinese Foreign Ministry spokeswoman, Hua Chunying, said at a news conference that Israel had to halt the building of settlements in East Jerusalem and the West Bank, stop violence against innocent civilians and end the blockade against the Gaza Strip to clear the way for peace talks.

But China’s measured stand on the conflict was evident in some of Mr. Xi’s comments during his meeting with Mr. Abbas. “Israel’s right to exist and its reasonable security concerns should be fully respected,” Mr. Xi said, according to a report by Xinhua.”

via China Dips a Toe Into Mideast Diplomacy – NYTimes.com.

09/05/2013

* China’s Vision for a ‘New’ Urbanization

WSJ: “China watchers are all abuzz about urbanization, which is supposed to be a focus of reform. But what does the term mean? After all, China has been urbanizing for 30 years, which has meant building roads, subways, ports — and relying more and more on infrastructure spending, which seems to have less and less payoff these days.

The National Development and Reform Commission, China’s state planning agency, is due to produce a report later this year laying out a path for a new kind of urbanization.

Li Tie, director general of the NDRC’s China Center for Urban Development, said the report involves a “new model of city development,” which would include three main parts:

First, there would be a focus on “low carbon” development — meaning trying to assure Chinese cities ease their horrendous pollution.

Second, would be reform of the household registration, or hukou, system. For smaller cities the system would be “totally liberalized,” Mr. Li said. He didn’t lay out his thoughts fully, but seemed to suggest that all residents would enjoy the same rights and benefits regardless of where they were born. For larger cities, migrants would get “resident cards” which assured them “improved treatment” and access to social services.

Third, China would look to increase “clustering” in big cities. Mr. Li didn’t explain what he meant by that, but in urban planning speak, clustering usually means trying to develop industries or specialties in a city or group of cities. That’s a way to build on the intellectual frisson of urban life, where new ideas can spawn new industries.

Those proposals address some of the most vexing problems with life in China’s cities: pollution, widening social inequality and lack of innovation. They also suggest that China’s leaders are committed to making urbanization into something more than another building spree. But changes would be costly and could require China’s central government to take a much more active role in overseeing—and paying for—urban growth than it has in the past. Whether China’s new leaders are ready to take such steps will become clear over the next year or two.”

via China’s Vision for a ‘New’ Urbanization – China Real Time Report – WSJ.

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