Archive for June, 2014

27/06/2014

Frugality bites as China curbs construction of government buildings | Reuters

China plans to curb construction of unapproved government buildings, amid a national campaign against wasteful spending and graft, according to an updated draft regulation published by the State Council, the country’s cabinet.

The Communist Party has been eager to project a frugal image since Xi Jinping became president last year, renewing efforts to stamp out corruption and win back public confidence after an endless series of scandals involving high-living officials.

Under the draft laws, any construction of government offices must be accompanied by feasibility reports and design blueprints, and will require official approvals before construction can begin, state news agency Xinhua reported on Thursday, citing the Legislative Affairs Office of the State Council.

“Buildings with reception functions such as accommodation, meetings and banquets, including those in the name of ‘training centers,’ are off limits,” it said.

The regulation will also ban any form of loans from financial institutes, sponsorships and fund-raising for unapproved construction projects.

via Frugality bites as China curbs construction of government buildings | Reuters.

26/06/2014

Chinese tycoon’s stunt to feed New York homeless ends in shambles – Telegraph

A stunt by a Chinese tycoon to provide free lunch to 300 homeless people in one of New York’s finest restaurants degenerated into a shambles as word spread that the participants would not be receiving an anticipated cash handout.

A waiter serves dessert to a table of men listening to Chinese billionaire Chen Guangbiao during a lunch he sponsored for hundreds of needy New Yorkers

The first simmerings of discontent emerged in the Central Park Boathouse as sesame-encrusted tuna appetisers were being served.

By the time the main course of rump steak was on the tables, the mood had turned thoroughly sour, as news that there was to be no cash give-away passed around the room.

And as white-gloved bow-tied waiters cleared berries and creme fraiche from the tables, there was near-mutiny, with burly private security men forced to prevent some angry diners from storming the podium.

Chen Guangbiao, a controversial recycling magnate, self-publicist and philanthropist, had earlier sung a version of We Are The World, the Michael Jackson hit written to raise charity funds for Africa.

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But the mood of goodwill and gratitude quickly dissipated as diners learned that they would not be receiving the $300 in cash that Mr Chen had originally promised everyone who attended after the meal.

Officials at The New York City Rescue Mission, which the billionaire had approached to help organise the event, told him they would only participate if the money was donated to their organisation to provide meals for the homeless.

“We work with the homeless every day, many of them unfortunately have drink and drugs problems, and it just isn’t a good idea to give that sort of cash out to people,” said Michelle Tolson, the mission’s spokeswoman.

“Mr Chen agreed that he would donate the $90,000 to the mission and that is the basis on which we are here today.” That message had not, however, reached many of the recipients of the free meal who were bused to Central Park from a downtown shelter.

“We have been duped to come along here under false pretences and now we are just part of a propaganda trick for the rich” said Harry Brooks, a Vietnam war veteran who tried to reach the stage to voice his complaints in person.

“We don’t need their steak, we need the money so that we can pay for food and clear debts. Now we’re never going to see it. This is a disgrace.”

via Chinese tycoon’s stunt to feed New York homeless ends in shambles – Telegraph.

26/06/2014

Two major generals detained as graft probes widen in Sichuan | South China Morning Post

Two Chinese major generals that have connections with Sichuan have been detained for a graft investigation, according to two separate sources.

yewanyong.jpg

Both People’s Liberation Army officers were taken into custody in May, the sources close to the military said.

One of those held was retired Ye Wanyong, a former commissar of the Sichuan military region. Ye, in his 60s, was removed yesterday from his position as a member of the Chinese People’s Political Consultative Conference (CPPCC), the nation’s top political advisory body. But the reason was not specified by the CPPCC.

Ye’s house was searched by the authorities, according to the sources.

The other, Wei Jin, 55, is a vice-commissar of the Tibet military region, a post he was promoted to in 2011. He has held senior military posts in the southwest province of Sichuan, including as senior army propaganda officer in Chengdu, the province’s capital.

The latest investigation into Ye and Wei is also believed to be part of the wider anti-corruption campaign in the PLA. President Xi Jinping, who also leads the military as chairman of the Central Military Commission (CMC), has repeatedly vowed to clean up the beleaguered military.

Ye left the military in January after reaching the retirement age of 60. He has served in the Sichuan military region since 2006.

His early military career started in Tibet, Sichuan’s neighbour in the west, but most of the time Ye served in liaison offices in Sichuan.

via Two major generals detained as graft probes widen in Sichuan | South China Morning Post.

26/06/2014

Chinese Vice President hands over new equipment to Tanzania-Zambia Railway Authority – Xinhua | English.news.cn

Chinese Vice President Li Yuanchao on Wednesday toured the Tanzania-Zambia Railway Authority (TAZARA) in Tanzania and handed new equipment supplied under loan terms of the 15th Protocol of Economic and Technical Cooperation between China, Tanzania and Zambia.

Li handed over the equipment, including six forklifts and four mobile cranes, to Tanzanian Minister of Transport Harrison Mwakyembe on behalf of TAZARA.

The Chinese Vice President, who took a short ride on a TAZARA train to Yombo on the outskirts of the commercial capital Dar es Salaam, commended the authority and its workers for upkeeping the infrastructure which was built four decades ago.

Li, who is on a six-day official visit to Tanzania, promised to hold further discussions with his colleagues when he goes back to China to find more ways to help TAZARA.

Mwakyembe said that the assistance was part of the pledge made by the Chinese government to help improve TAZARA infrastructure and his country would continue to value the assistance rendered by the People’s Republic of China since early 1970s.

“The saying that – a friend in need is a friend indeed – was truly reflected in the assistance provided by China 40 years ago, building the TAZARA railway when Tanzania and Zambia fought to liberate other southern African countries,” said the Tanzanian minister.

Mwakyembe said TAZARA was the largest single foreign aid project undertaken by China and the track was built with the highest standards, as evidenced by the infrastructure which remained in good shape after 40 years.

The 15th Protocol of Economic and Technical Cooperation was signed by the three governments of China, Tanzania and Zambia on March 26, 2012 in the Zambian capital Lusaka, with a value of 270 million yuan (about 40 million U.S. dollars) worth of projects to be undertaken in support of TAZARA.

The protocol, which is an interest-free loan, covers the procurement and supply of 18 passenger coaches and accompanying consumables, four new main line locomotives, two shunting locomotives, two rescue cranes and various lifting equipment.

via Chinese Vice President hands over new equipment to Tanzania-Zambia Railway Authority – Xinhua | English.news.cn.

26/06/2014

CaptureSolar Raises $107 Million for India Solar Project – Businessweek

CaptureSolar Energy Ltd. raised $107 million for a solar park to supply Indian businesses suffering from rising costs for power generated mostly from coal.

The utility will get 86 percent of the $125 million for the project from Cyprus-based Concept Solutions & Innovations Ltd., CaptureSolar Chief Executive Officer Raju Bhosale said today by phone. Pune-based CaptureSolar will pay for the rest.

The 75-megawatt photovoltaic park will be completed in two phases by March 2015 and charge about 6 rupees (10 U.S. cents) a kilowatt-hour under a 25-year contract, Bhosale said. The price is about 8 percent below the level industrial and commercial businesses currently pay, he said.

via CaptureSolar Raises $107 Million for India Solar Project – Businessweek.

26/06/2014

Building Golf Courses in China: An Illegal and Booming Industry – Businessweek

Like the U.S., China has an extensive national park system. Still, its designated parklands aren’t always protected from economic development. On Tuesday, Beijing Youth Daily published an investigation into how 20,000 acres of protected land in southern China’s Guizhou Forest Park were converted into golf courses, padding the pockets of local developers.

Clearing the way for a golf course in China's southern Hainan province early in 2103

A  telling note: Since 2004, construction of new golf courses has been illegal in China, following a directive of the State Council. The poorly enforced regulation hasn’t stopped the number of golf courses from multiplying from 170 in 2004 to more than 1,000 today—a more than fivefold increase in a decade, according to the paper.

The quixotic rise of golf in China—where Mao Zedong once lambasted putting as a bourgeois pastime—is the subject of a new book by the Asia Society’s Dan Washburn. In The Forbidden Game: Golf and the Chinese Dream, a charming and accessible work, Washburn follows the lives of three men whose careers are shaped by the sport: an American golf course designer who finds work in China, a budding Chinese tournament golfer, and a farmer whose land is converted into fairways.

via Building Golf Courses in China: An Illegal and Booming Industry – Businessweek.

26/06/2014

Indian Property Market Takes A Small Step Out of the Shadows – India Real Time – WSJ

Few that have bought or even rented real estate in India would be surprised by a recent survey showing the property market here can be maddeningly murky.

Jones Lang LaSalle’s Global Real Estate Transparency Index showed that while things have improved, Indian cities still have to work on transparency. The Chicago-based real-estate consultant said India needs to go further to create more clarity on the rules connected to property purchases and real estate prices.

“India still scores among the lowest in the transparency of its transaction process,” the report said.

Jones Lang LaSalle looked at just over 100 markets around the world and rated them on a dozen parameters ranging from the availability of data, the number of publicly-listed developers and the strength of regulators.

India struggles most when it comes to recording real estate transactions. Too many deals are done off the book, recorded with government offices that don’t disclose numbers or are never recorded at all, making it difficult for home buyers and even analyst to assess what a property is worth and which direction property prices are moving.

Most of the deals that pop up on everyone’s radars are big corporate transactions in bigger cities. Those above-board deals may very well be only a tiny slice of all the real estate activity though. Smaller deals done by smaller companies and in smaller cities are often hard to keep track of, analyst say, making it difficult to estimate what is really going on in the real estate market.

Meanwhile the real estate agents are too often untrained and unscrupulous in India. It seems like almost anyone can dabble in the market if they can create the right connections and grease the right palms to push through all the paperwork needed to transfer control of properties.

India’s standing was also hurt by its lack of a regulator for the real estate sector. While a regulator is in the works, the industry is currently being overseen by the Ministry of Urban Development, local registry offices and many others depending on the property.

Things are, however, better than they were a year ago. India’s biggest cities stepped up in Jones Lang LaSalle’s ranking to 40th in 2014 from 48th in 2012 while the medium-sized cities moved up to 42nd place from 49th.

The improvement is thanks to private equity firms who have been investing a lot of money and demand more transparency. India’s growing mortgage-loan market is also helping as banks require more reliable information about buyers, sellers, properties and the way deals are done, said Anuj Puri chairman of Jones Lang LaSalle Inc.’s Indian operations.

Market transparency could get a further boost soon if India’s new government goes ahead with plans to improve real estate regulations.

“Later this year India is likely to enact the Real Estate Regulation Bill, which seeks to improve regulation over real estate agents and the quality of land registry records,” the report said.

via Indian Property Market Takes A Small Step Out of the Shadows – India Real Time – WSJ.

24/06/2014

China’s Government Admits Chinese Patents Are Pretty Bad – Businessweek

For years, China’s leaders have exhorted the country’s businesses to become innovative. After all, a glorious country like China that is reasserting its role as a global superpower should be known for more than just its copycat and me-too companies. So while Chinese presidents come and go, the message is the same: Whether it’s Jiang Zemin, Hu Jintao, or the current boss, Xi Jinping, the country’s leaders have consistently talked about the importance of local innovation. Paraphrasing Xi’s remarks at a speech earlier this month at the Chinese Academy of Science and the Chinese Academy of Engineering, the Xinhua news agency reported that the government’s goal is to “push forward the fusion of science and [the] economy, so that science and technology strength can be transformed into industrial and economic power.”

Chinese President Xi Jinping at the Chinese Academy of Science and the Chinese Academy of Engineering in Beijing on June 9

By China’s own scorekeeping, though, the country’s innovators still have a way to go before they can meet the Communist Party’s expectations. While the number of patent applications inside China is “booming,” according to a report today by Xinhua, “the quality of patents is still poor.” Writing about a report to the Standing Committee of the National People’s Congress, China’s rubber-stamp legislature, Xinhua added, “China owns very few patents featuring originality and high or core technology.” Fewer than 1,000 Chinese patents have won recognition from counterparts in the U.S., Europe, or Japan, added Xinhua.

China is making progress. The gold standard in international patents remains the U.S., and Chinese from the People’s Republic applied for almost 6,600 patents in the U.S. last year, according to data from the U.S. Patent and Trademark Office (USPTO).  That’s just ahead of France and more than double the number from India. China had the sixth-largest number of patents granted by USPTO. Still, China’s innovators are hardly leaders in the U.S. The Chinese total of 6,597 U.S. patents puts it far behind Japan’s 54,170 applications. Even more embarrassing, Taiwan, the island that Beijing considers a province of China, had 12,118 patent applications granted.

via China’s Government Admits Chinese Patents Are Pretty Bad – Businessweek.

24/06/2014

A Neglected Problem in China’s Education System – China Real Time Report – WSJ

China’s top two leaders recently presided over a rare discussion on vocational education where they pushed for major changes to the country’s retrograde technical schools.

Political leaders everywhere are known to pay lip service to the need for improvements in education, but concern over China’s vocational schools is likely more than that just political bluster. That’s because the quality of the country’s lower-level technical schools could have a major impact on the country’s future economic growth.

As China looks to climb into the ranks of developed nations, one of its main goals is to evolve beyond serving as the world’s factory floor. One barrier to achieving that goal, analysts and education officials say, is the country’s lack of highly-skilled workers.

Premier Li Keqiang emphasized that point at Monday’s meeting, saying a “massive skilled labor force” was needed to upgrade the “made in China” label, “from ‘adequate’ to  ‘high-quality’ and ‘premium’” (in Chinese).

Mr. Li was talking at an unusual national-level work conference on vocational education – only the 3rd such conference to be held in China since 1978. China’s President Xi Jinping gave the opening remarks, according to the state-run Xinhua news agency, signifying the level of importance China’s leadership places on the topic.

The attention is warranted: China’s vocational programs — which teach practical skills ranging from carpentry to forestry and encompass more than 29 million students, according to Xinhua — have been badly neglected when compared with the country’s rapidly multiplying universities. Often criticized for being poorly equipped, they are also poorly managed and have trouble finding qualified teachers, experts say.

“In the vast majority of vocational education schools in China, kids are not learning anything, especially in rural areas,” said Scott Rozelle, director of Stanford University’s Rural Education Action Program, which studies China’s vocational schools. “In studies in central and northwest China, we found dropout rates of 50% in the first two years of these programs.”

Mr. Rozelle said that China’s vocational schools are the only segment of China’s educational system that lacks an evaluation system, so it is difficult to tell which schools are good and which subpar.

China is currently home to 13,600 vocation schools and colleges, which provide a large chunk of the country’s workers in labor-intensive industries. According to government estimates, they are expected to attract more than 38 million students by 2020.

The government is now pushing a number of changes to the vocational school system, including requiring local government to allocate a standard budget for vocational schools as they do for regular colleges, according to Xinhua. Private investors and non-governmental organizations are also encouraged to sponsor vocational schools, and private vocational schools will enjoy preferential loans from banks.

The state-run China Daily newspaper called the government’s recent attention to vocational schools “unprecedented”. But the devil is in the details. It won’t be clear until later how much money local governments will actually budget to upgrading the vocational school system and what kind of incentives there will be to improve.

via A Neglected Problem in China’s Education System – China Real Time Report – WSJ.

23/06/2014

Shenzhen to pump one billion yuan into building new Xinjiang university | South China Morning Post

Shenzhen will pump one billion yuan (HK$1.26 billion) into a new university to be built in Xinjiang’s southern Kashgar city, on top of the region’s own one billion yuan of investment.

uygur-uni.jpg

Shenzhen was contributing to the university in support of education in the Xinjiang Uygur autonomous region, the Xinjiang Daily reported on Monday.

“Building Kashi University will provide strong human resources to the industrial restructuring in southern Xinjiang and improve the local livelihood,” said Kenjiang Tulahong, a member of the region’s National People’s Congress Standing Committee.

Plans to build the university were announced by the State Council after a Xinjiang working group meeting in May. It was an important strategic approach, the newspaper said.

Xinjiang, in the northwest and home to the Uygur ethnic minority who are mostly Muslims, has been the focus of a security crackdown after recent violent attacks in the region and elsewhere on the mainland that the central government has blamed on terrorists and separatists who want to establish an independent state called East Turkestan.

President Xi Jinping, who chaired the second Central Work Conference on Xinjiang on May 19, stressed the importance of ethnic unity, education and economic development. Officials at the conference pledged to promote bilingual education and interaction between ethnic groups in the region.

On Monday, Xinjiang party chief Zhang Chunxian, speaking at the region’s party committee meeting, vowed to safeguard social stability and the Central Committee’s authority and political discipline on major issues opposing separatism.

The same day, Korla Evening News reported that police in Korla city, western Xinjiang, had busted an underground group that was teaching the Koran to children. Two men were arrested on suspicion of abusing two children and forcing them to study the Koran, on top of running illegal religious activities. The two pupils were then sent to local kindergartens and assigned guardians, the newspaper reported.

Kashi University, when completed, would give Uygur students more opportunities for higher levels of academic training in future, Kashgar officials said.

“Kashi University will have comprehensive departments and disciplined teachers to train a wider range of talents,” Kashgar Normal College dean Aierken Wumaier said.

The university plans to provide curriculums in the liberal arts, science, art, engineering, management, economics and medicine, among others, he said. The institute aimed to recruit 13,000 students by 2015, he added.

via Shenzhen to pump one billion yuan into building new Xinjiang university | South China Morning Post.

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