Archive for January, 2014

23/01/2014

Hardware startups: Hacking Shenzhen | The Economist

OH NO, NOT another accelerator, you may think. But this one is different. On the tables are not just the obligatory laptops and smartphones but circuit boards, cables, screwdrivers and a few items which look only vaguely familiar. One resembles a very old mobile phone with an oddly shaped knob attached to it. Another, a set of small blocks with switches and buttons, calls to mind a disassembled mixer in a recording studio. Yet another might be the microphone of a computer headset, but is mounted on a pair of glasses.

Even more surprisingly, the home of Haxlr8r (pronounced “Hackcelerator”) is not some co-working space in London or San Francisco but the 10th floor of an office building in Shenzhen. The city in the Pearl River Delta, close to Hong Kong, is the world capital of electronics: most of the planet’s digital devices are assembled in factories in and around the city.

Haxlr8r is living proof that, as Karl Popper once said, history repeats itself, but never in the same way. Just as with software services, new technology makes it ever easier to build new types of devices, most of them connected to the internet. The difference is that making hardware remains, well, hard—which is why Haxlr8r is in Shenzhen. That way its teams may avoid the fate of a first generation of hardware startups, mostly based in America. They put their ideas up on Kickstarter and Indiegogo, the leading crowdfunding services, but then endured months of delay or never got as far as manufacturing their devices.

The technologies that allowed software services to be developed more cheaply and quickly were cloud computing, social networks and any number of digital services called application programming interfaces (APIs). For hardware the list includes all of the above plus 3D printers, sensors and microcontrollers which bridge the analogue and the digital worlds. The platform for most connected devices is smartphones. All these elements can be combined in countless ways, creating a Cambrian explosion not just in software but in physical electronic devices too.

via Hardware startups: Hacking Shenzhen | The Economist.

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23/01/2014

China’s Five-Star Hotels Are Desperate for Lower Ratings – Businessweek

After local governments in China began prohibiting government officials from spending money at five-star hotels last year, dozens of top-rated hotels took steps to preserve their government business—by voluntarily dropping at least one star.

“I’ve been in the business for decades and I’ve never seen this before,” Chen Miaolin, chairman of the New Century Tourism Group, told the China News Agency. He was quoted in two official news releases describing star-reduction attempts by 56 hotels. The hotel industry in China is rated by the state tourism bureau and other government agencies, and five stars is the highest rating.

As the Communist Party led by President Xi Jinping continues a campaign against corruption and government extravagance, some top-of-the-line hotels are feeling the pain. Revenue declined 18 percent last year at Hangzhou-based New Century, which operates 64 hotels around China, including 40 with five-star ratings. In October, Chen was quoted in a Hong Kong paper saying New Century’s income from government agencies had fallen to less than 3 percent of overall catering revenue—down from 15 percent—because of Beijing’s anti-extravagance measures.

One of the company’s hotels in Nanjing responded by proposing to give up all its stars, Chen said, and five others shelved new ratings applications. It’s not clear whether the hotels’ prices have changed; the ban is aimed only at their ratings, not their prices.

via China’s Five-Star Hotels Are Desperate for Lower Ratings – Businessweek.

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22/01/2014

* China’s princelings storing riches in Caribbean offshore haven | World news | The Guardian

More than a dozen family members of China\’s top political and military leaders are making use of offshore companies based in the British Virgin Islands, leaked financial documents reveal.

The brother-in-law of China\’s current president, Xi Jinping, as well as the son and son-in-law of former premier Wen Jiabao are among the political relations making use of the offshore havens, financial records show.

Fu Liang is the son of Peng Zhen, former mayor of Beijing and one of China\’s \”eight elders\”. After a career in the rail industry, he shifted to a role in the leisure sector, as an investor in yacht clubs and golf courses.

The documents also disclose the central role of major Western banks and accountancy firms, including PricewaterhouseCoopers, Credit Suisse and UBS in the offshore world, acting as middlemen in the establishing of companies.

The Hong Kong office of Credit Suisse, for example, established the BVI company Trend Gold Consultants for Wen Yunsong, the son of Wen Jiabao, during his father\’s premiership — while PwC and UBS performed similar services for hundreds of other wealthy Chinese individuals.

The disclosure of China\’s use of secretive financial structures is the latest revelation from \”Offshore Secrets\”, a two-year reporting effort led by the International Consortium of Investigative Journalists (ICIJ), which obtained more than 200 gigabytes of leaked financial data from two companies in the British Virgin Islands, and shared the information with the Guardian and other international news outlets.

In all, the ICIJ data reveals more than 21,000 clients from mainland China and Hong Kong have made use of offshore havens in the Caribbean, adding to mounting scrutiny of the wealth and power amassed by family members of the country\’s inner circle.

As neither Chinese officials nor their families are required to issue public financial disclosures, citizens in the country and abroad have been left largely in the dark about the elite\’s use of offshore structures which can facilitate the avoidance of tax, or moving of money overseas. Between $1tn and $4tn in untraced assets have left China since 2000, according to estimates.

========================================

China\’s inequality problem

Income inequality is a mounting issue in China, a consequence of the country\’s rapid growth. A Beijing university study suggests that income at the richest 5th percentile are 34 times higher than those of the bottom 5th percentile.

percentile

5%     ¥1,000$170

10      ¥2,000$340

25      ¥4,500 $765

50      ¥9,000$1,530

75      ¥15,900$2,703

90      ¥25,800$4,386

95      ¥34,300$5,831

Source: Beijing university study, 2012 incomes

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China\’s rapid economic growth is leading to a degree of internal tension within the nation, as the proceeds of the country\’s newfound prosperity are not evenly divided: the country\’s 100 richest men are collectively worth over $300bn, while an estimated 300m people in the country still live on less than $2 a day. The Chinese government has made efforts to crack down citizens\’ movements aimed at promoting transparency or accountability among the country\’s elite.

The confidential records obtained by the ICIJ relate to the incorporation and ownership of offshore companies, which is legal, and give little if any information as to what activities the businesses were used for once established. Offshore companies can be an important tool for legitimate Chinese businesses, especially when operating overseas, due to restrictions and legislation in the country.

via China’s princelings storing riches in Caribbean offshore haven | World news | The Guardian.

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22/01/2014

* 540 mln Chinese have social security cards – Xinhua | English.news.cn

By the end of 2013, 540 million Chinese people, or roughly 40 percent of China\’s population, had social security cards, which are issued to facilitate medical and other social security services, new data showed on Tuesday.

Hu Xiaoyi, vice minister of human resources and social security, revealed the data at a seminar on Tuesday, adding that the number is expected to reach 650 million by the end of 2014.

The country aims to issue 800 million social security cards by the end of 2015, covering about 60 percent of its total population, according to China\’s 12th Five-Year Plan (2011-2015).

At present, social security cards are mainly used to pay for medical expenses. In the future, services will be expanded to allow card holders to draw pensions and pay for social insurance programs, Hu said.

via 540 mln Chinese have social security cards – Xinhua | English.news.cn.

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22/01/2014

China Aims for Food Security as Pollution Destroys Crop Land – Businessweek

China must stick to a policy of “basic grain self-sufficiency.” While keeping imports at an “appropriate” level, it must “not relax domestic food production at any time,” decrees the first policy document of the year, issued on Jan. 19 by the Central Committee of the Communist Party.

A farmer working her land next to a lead factory near Hengyang, China

Released every January, the zhongyang yihao wenjian, or “No. 1 Central Document” has for the last 11 years focused on China’s agricultural economy, a reflection of the importance the leadership puts upon China’s countryside and its rural population. Previous versions have emphasized everything from scientific and technological innovation and water conservancy to raising farmers’ incomes and agricultural modernization.

Obsessions with food security are certainly not new. “The idea of storing surplus grain in good times to guard against famine dates back at least as far as the Old Testament, when Joseph gave just such advice to the Pharaoh. Its history in China is almost as long,” wrote Jim Harkness, president of the Minneapolis-based Institute for Agriculture and Trade Policy in a policy paper back in 2011. (Harkness previously lived and worked for many years in China.)

via China Aims for Food Security as Pollution Destroys Crop Land – Businessweek.

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22/01/2014

Syrian Conflict Leads to Cumin Boom in India – India Real Time – WSJ

A recent The Wall Street Journal article examined the boom in India’s cumin exports as a result of the conflict in Syria. A reporter’s photo diary from one of Asia’s largest spice markets Unjha in the western Indian state of Gujarat where cumin sales have seen an uptick in recent months.

As of Jan. 13, the acreage of cumin fields in Gujarat, which accounts for 75% to 80% of India’s cumin crop, was up 36% from a year earlier to 1.12 million acres, according to the Gujarat agriculture department. India’s exports of cumin surged 93% between last April, the start of the fiscal year, and September, to 67,500 tons, according to the Spices Board of India.

Syria was India’s biggest rival in exports of the yellow-brown spice, which is a crucial ingredient in Middle Eastern, Asian and Mediterranean cuisines and adds a dash of flavor for kitchens in the West.

Besides adding flavor to food, cumin is also used as medicine. It was even used in preserving corpses as mummies in ancient Egypt.

via Syrian Conflict Leads to Cumin Boom in India – India Real Time – WSJ.

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22/01/2014

China urges respect for ethnic traditions in restive Xinjiang | Reuters

Ethnic traditions in Xinjiang must be respected, the top official in the restive far western region of China said, despite criticism that government policies there unfairly target the Muslim Uighur ethnic community.

Secretary of the Communist Party of China (CPC) Committee of the Xinjiang Uyghur Autonomous Region Zhang Chunxian delivers a speech during a tea forum celebrating the Corban Festival in Urumqi, Xinjiang Uyghur Autonomous Region, November 5, 2011. REUTERS/China Daily

The government must implement \”ethnic unity education and propaganda\” among all communities, especially among the region\’s youth, the ruling Communist Party\’s Xinjiang chief Zhang Chunxian said in comments carried in state media on Wednesday.

\” must treat issues of local tradition with respect and resolve issues of violence with rule of law and severe measures,\” the official Xinjiang Daily cited Zhang as saying.

China has intensified a sweeping security crackdown in Xinjiang, further repressing Uighur culture, religious tradition and language, rights groups say, despite strong government assertions that it offers Uighurs wide-ranging freedoms.

In November, officials demanded that lawyers in Turpan, an oasis city southeast of the regional capital, Urumqi, commit to guaranteeing that relatives do not wear burqas, veils or participate in illegal religious activities, and that young men do not grow long beards.

Many Uighurs resent local policies imposed by the government and an inflow of Han Chinese migrants, and some Uighur groups are campaigning for an independent homeland for their people.

Experts say China\’s repression of religious practices has pushed some Uighurs to more strongly embrace Islamic traditions.

Zhang\’s pledge follows state media reports in early January that President Xi Jinping was shifting the region\’s focus to maintaining stability over development, after a series of attacks last year fuelled by what the government said was religious extremism.

\” must acknowledge the long-term, acute and complex nature of the anti-separatism and violent terrorism fight,\” Zhang said, adding that there was no contradiction between stability and development.

via China urges respect for ethnic traditions in restive Xinjiang | Reuters.

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22/01/2014

China’s Real-Estate Investment Boom Set to Continue in 2014 – China Real Time Report – WSJ

Chinese real-estate investors made a name for themselves abroad in 2013, picking up big-ticket projects from New York to London, and that momentum is poised to pick up this year.

“In the late 1980s, we noticed every second deal was done by the Japanese, and in the 1990s, it was investors from the Middle East,” said Alastair Hughes, chief executive officer of Asia Pacific at property consultancy Jones Lang LaSalleJLL +1.99%. “We’re seeing the beginning of such a wave in China.”

Chinese outbound commercial real-estate investment is estimated to exceed $10 billion this year, after it doubled to $7.6 billion last year from 2012’s $3.3 billion, according to data from Jones Lang LaSalle. Rival brokerage Colliers International is more bullish, saying it expects Chinese investors to spend at least twice as much on overseas property assets this year as last year.

“Chinese investors are very active in every major market in the world, and part of that has to do with government policy on overseas investment becoming less restrictive,” Mr. Hughes said.

Aside from the stronger yuan, which makes purchases abroad cheaper, Chinese investors also are heeding the old adage don’t put all your eggs in one basket.

via China’s Real-Estate Investment Boom Set to Continue in 2014 – China Real Time Report – WSJ.

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22/01/2014

BBC News – China and UK trade at ‘record high’

Bilateral trade between China and the United Kingdom hit a \”record high\” in 2013, according to the Chinese ambassador to the UK, Liu Xiaoming.

Chinese Premier Li Keqiang  and British Prime Minister David Cameron

The state-owned Xinhua news agency quoted Mr Liu as saying that bi-lateral trade between the two surpassed $70bn (£43bn) last year.

He said the UK\’s exports to China grew more than other EU countries.

The UK has been pushing to boost trade ties with Beijing in an attempt to tap into China\’s domestic market.

Last year, British Prime Minister David Cameron visited the world\’s second-largest economy to foster closer trade ties.

“The UK can be the most profitable destination in the Western world for Chinese outward investment in infrastructure, real estate, energy and transportation”

Stephen Perry

48 Group Club

He was accompanied by more than 100 British business people on the three-day visit – his second to the country.

\”The two countries\’ leaders reached a broad consensus on pushing forward bilateral relationship and expanding co-operation,\” said Stephen Perry, chairman of the 48 Group Club, an independent business network that looks to promote ties between China and the UK.

\”China and the UK working together will benefit our people and contribute to global peace and development,\” Mr Perry was quoted as saying by Xinhua.

via BBC News – China and UK trade at ‘record high’.

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22/01/2014

Tea growers get big year-end bonus[1]- Chinadaily.com.cn

A tea company in Wande county of Jinan city, capital of East China\’s Shandong province, shared nearly a million yuan ($165,200) in year-end bonuses with its tea growers, on Jan 20, 2014.Some growers got about 200,000 yuan.Li Taishan Tea Co was established after thevillage piloted a land circulation project in 2003.

Tea growers get big year-end bonus

via Tea growers get big year-end bonus[1]- Chinadaily.com.cn.

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