Archive for July, 2014

15/07/2014

One injured as explosion hits Xining airport car park in Qinghai | South China Morning Post

An explosion rocked the car park of Xining’s main airport today, state media reported. One person was injured by shrapnel, according to the authorities.

xining_blast-net.jpg

Police and bomb experts rushed to the scene within minutes of the blast and cordoned off the area around the busy Caojiapu (variably spelled as Caojiabao) airport.

One cleaner was hit when the object detonated in the lot just outside the terminal, the China West Airport Group said in a press statement at 4pm.

According to Chinanews.com, the staff was hit by a piece of glass and was sent to hospital.

Airport operations were not affected, the airport authority said. Cars in the parking lot were moved to other areas to clear the scene.

The Qinghai public security bureau and armed police are now conducting further investigation.

The explosives were concealed in a rubbish bin at the corner of the car park, according to the China Youth Daily.

A person surnamed Bao working for the public security bureau of Haidong prefecture near Xining told the South China Morning Post that the bureau’s command centre were not informed of the blast as yet, but that they would be sending staff to the scene.

“Airport police, anti-terror police, SWAT and paramilitary [officers] have cordoned off the site and are doing further investigation,” Bao said.

The Caojiapu airport is the busiest airport in the Tibet Plateau region. According to the airport’s figures, it handles four million trips a day.

Earlier in June, the airport held an emergency rescue drill – the largest held in the past 10 years – involving firefighters, medical emergency response teams as well as runway and airport maintenance teams.

Clearing explosives was part of the drill.

via One injured as explosion hits Xining airport car park in Qinghai | South China Morning Post.

15/07/2014

Apple Manufacturer Foxconn Goes Green in China’s Guizhou – Businessweek

Guizhou may be one of China’s poorest and least developed provinces. But the flip side is an environment so pristine that President Xi Jinping recently joked its air should be bottled.

Terraced fields of rice paddies are farmed on June 4, 2013, in Jinping county, Guizhou province, China

Now, Taiwan’s Foxconn Technology Group (2317:TT), the world’s largest consumer electronics producer, with more than a million employees working in 30-some industrial parks across China, has set its sights on backward but beautiful Guizhou.

The maker of Apple’s (AAPL) iPad and iPhone and Hewlett-Packard (HPQ) servers is building an industrial park in China’s southwest, seemingly worlds away from its massive and gritty Shenzhen manufacturing base, that aims to be state of the art in energy efficiency and environmental friendliness. Set among karst hills on the outskirts of Guiyang, the provincial capital, the 500-acre park will keep about 70 percent of the natural vegetation undisturbed.

via Apple Manufacturer Foxconn Goes Green in China’s Guizhou – Businessweek.

15/07/2014

In First Meeting, Modi and Xi Discuss Decades-Long Border Disputes – India Real Time – WSJ

In their first one-on-one meeting, Chinese President Xi Jinping and Indian Prime Minister Narendra Modi spoke about finding a resolution to the long-standing boundary dispute between the Asian neighbors, a goal that has eluded the two countries for decades.

In talks lasting 80 minutes, Mr. Modi told Mr. Xi that “it is necessary to resolve the boundary question,” Syed Akbaruddin, a spokesman for India’s foreign ministry, said in a televised interview after the meeting in Brazil on the sidelines of a summit of BRICS countries. Pending that, Mr. Modi said, “peace and tranquility need to be maintained on the border,” according to Mr. Akbaruddin.

Mr. Xi called for “negotiated solutions” to the dispute at an early date, China’s official Xinhua News Agency reported. He also said the two countries “should join hands in setting global rules so as to raise the voice of developing countries,” Xinhua said.

China has reached out to the new Indian administration, led by Mr. Modi, at a time when its ties with other Asian countries including Japan and the Philippines have soured over territorial disputes. The Chinese foreign minister visited New Delhi last month, and Beijing’s premier was the first foreign leader to talk to Mr. Modi after his swearing-in as prime minister earlier this year, following national elections.

Ties between India and China have long been characterized by mistrust, and the sentiment appears to linger. More than seven in 10 Indians are concerned that territorial disputes between China and its neighbors will lead to military conflict, according a Pew Research Center survey published Monday.

Nearly half of all Indians think China’s growing economy is a bad thing for their country, and only 31% of Indians had a favorable view of China, the survey showed. By comparison, 55% of Indians had a favorable view of the U.S. and 43% had a favorable view of Japan.

Tensions between India and China boiled over into a brief war in 1962, following which China gained control of a 14,600-square-mile territory known as Aksai Chin. China claims another 35,000 square miles in Arunachal Pradesh, a state in India’s northeast. Relations worsened last year when India alleged that Chinese troops had crossed into Indian-held territory in the Himalayan region of Ladakh, triggering a weekslong standoff.

On the campaign trail during national elections earlier this year, Mr. Modi promised to be tough on security issues. In a speech in February he warned China against having an “expansionist mindset.” In Mr. Modi’s first few weeks in office, his government has taken steps to boost infrastructure and connectivity on the Chinese border.

Mr. Modi’s China policy remains unclear, as does his ability and willingness to negotiate a border settlement, a process that has gone on for three decades. Special representatives appointed to work out a solution have so far held 17 rounds of talks.

The two countries signed an agreement last October aimed at easing hostilities on the disputed and ill-defined border, known as the Line of Actual Control, including commitments to ensure that patrols don’t escalate into military confrontations. But the agreement failed to impress security analysts in India, who said it was little more than a statement of intentions.

India is also worried about China’s growing influence in South Asia where New Delhi sees itself as the regional power. Mr. Modi has moved to revitalize India’s neighborhood ties, inviting South Asian leaders to his swearing-in and choosing Bhutan for his first foreign visit.  The government is also pushing to close India’s $40 billion trade deficit with China.

via In First Meeting, Modi and Xi Discuss Decades-Long Border Disputes – India Real Time – WSJ.

15/07/2014

Software products bring hot career choices as India looks beyond IT services | India Insight

When Zomato was setting up shop six years ago, the online restaurant search service had to woo engineers, but many weren’t interested in working for an unknown company. Instead, they wanted to work for larger and prestigious names. Slowly, that is changing.

Indian companies such as Zomato and Flipkart, which make their own technology products rather than provide services are becoming more attractive to the country’s engineering school graduates, and are hiring more people as they alter technology industry hiring patterns.

“We had to convince parents to let their kids work with us. Most people had no idea of what a products startup can offer,” said Gunjan Patidar, Zomato’s chief technology officer, talking about the company’s early days. “They know about Infosys and TCS because that’s where their cousins and friends have worked.”

Backed by Silicon Valley-based venture capitalists, these homegrown companies are not afraid to match salary packages offered by established foreign companies, and offer perks such as employee stock options.

Not everyone is born to be an engineer, but in India, many parents are determined to make it so for their children. India produces about 80,000 engineering graduates every year, according to Sandhya Chintala, vice president of the National Association of Software and Services Companies.

Engineering is considered a prestigious profession. In India’s close-knit family system, jobs can be associated with upward mobility, and can make a son or daughter a better marriage prospect. Children often have no say in the decision.

Working in information technology services with hundreds of thousands of employees, such as Tata Consultancy Services or Infosys, which handle other companies’ technology needs, has long been the easiest way for graduates to go abroad on job assignments, adding to their perceived social worth.

“I often say in India people first become engineers and then they decide what to do with their lives,” said Girish Mathrubootham, founder and chief executive of online customer support platform Freshdesk, which recently raised $31 million in funding from private equity firms Tiger Global, Accel Partners and Google Capital.

Freshdesk lost a potential employee in the early days to TCS because the employee’s parents wanted him to work for a well known company, Mathrubootham said. “Now we have an employee who went to work with Honeywell, but she came back within six months.”

via Software products bring hot career choices as India looks beyond IT services | India Insight.

15/07/2014

Shanghai most likely headquarters for BRICS development bank | Reuters

Shanghai looks set to become the headquarters of a development bank being launched by the BRICS emerging market nations, despite fears by some members of the group that China could hijack the bank to serve its interests.

A man walks past a signage decoration for the BRICS summit outside Sheraton Hotel, the venue for the third BRICS summit in Sanya, Hainan province April 14, 2011. REUTERS/Jason Lee/Files

Brazil, China, India, Russia and South Africa are due to sign off on the new institution on Tuesday, along with an emergency reserves fund, after two years of negotiations, a major step for the diverse group known more for its anti-Western rhetoric than coordinated action.

Russian presidential adviser Yuri Ushakov told Kremlin reporters late last week that bank would be based in Shanghai, mainland China’s financial capital, citing discussion papers prepared by the member countries.

Earlier, Russia’s finance minister said India was vying with China to host the new infrastructure lender.

“The bank’s headquarters will be located in Shanghai. This is fixed in the documents,” Ushakov said.

In a further sign that an agreement had been reached on the headquarters, an Indian government official on Monday played down the debate and said India’s top priority was to make sure members of the institutions all had equal voting rights, unlike Western-run multilaterals they seek to challenge, such as the World Bank.

“Equitable shareholding is the principal goal for India,” the official said. Second on India’s list of concerns was giving the bank a name that would allow non-BRICS nations to join in future, the official said.

The Chinese Finance Ministry did not immediately respond to a request for comment.

via Shanghai most likely headquarters for BRICS development bank | Reuters.

11/07/2014

Logistics: The flow of things | The Economist

TWO examples of the infrastructure that has helped make China a mighty trading power can be found on the outskirts of Shanghai: Yangshan, the world’s busiest container port, and Pudong airport, the world’s third-biggest handler of air cargo. Radiating out across the country are more than 100,000km (62,000 miles) of expressways and a comparable length of railways. Given all this new infrastructure, you might expect China to have a world-class logistics industry, too. It does not.

Logistics covers transportation, warehousing and the management of goods. Its Chinese translation, wu liu, literally means “the flow of things”. But that flow within the country is costly and cumbersome. Much of the investment in infrastructure has gone to lubricate exports. Now, as China’s government shifts its focus to consumption at home it is finding that the domestic logistics industry is woefully inefficient.

Logistics spending is roughly equivalent to 18% of GDP, higher than in other developing countries (India and South Africa spend 13-14% of GDP) and double the level seen in the developed world. Li Keqiang, the prime minister, recently echoed industry’s complaints that sending goods from Shanghai to Beijing can cost more than sending them to America.

Most warehouses are old and unmechanised. Goods are transferred up to a dozen times from vehicle to vehicle as they make their way across the country. There are no cargo hubs that help link freight from rail to road. The decrepit and overloaded lorries that ply the new highways are unable to find a return cargo on more than one third of their trips.

China has over 700,000 trucking operators, most of them one-man outfits. (America has about 7,000.) Scale is essential to the business, but the top 20 firms together make up barely 2% of the market. Nancy Qian of KXTX, a logistics firm, observes that companies compete so fiercely on price that most barely make any money, and so lack the funds needed to modernise or achieve economies of scale.

The industry is carved into niches, making it hard for integrated service providers to emerge. Sleepy state-owned enterprises such as Sinotrans and China Post control the markets for air freight and domestic post. Foreign express-delivery firms are salivating over the market but FedEx and UPS, for example, have been granted only limited licences for domestic delivery. More importantly, foreign firms are burdened with high costs that make it hard to compete for frugal customers against lean local rivals.

For all firms, local or foreign, a tangle of regulations, local protectionism and corruption makes getting goods across China a problem. Logistics, broadly defined, falls under the authority of nine ministries and commissions. Local governments often levy taxes on operators and demand they obtain special licences to operate. There are also heavy tolls on China’s roads, and lorries are restricted from entering most urban areas so must transfer goods onto smaller vehicles.

via Logistics: The flow of things | The Economist.

11/07/2014

India’s ‘Plastic Man’ Chemist Turns Litter Into Paved Roads – Businessweek

For as far as the eye can see, there’s stinking, smoking, untreated garbage. It’s concentrated in the municipal dump, in the South Indian city of Madurai, but not contained by it. The surrounding fields are also piled with trash. Stray dogs nibble at mounds of rotting food. The trees are denuded and covered with shredded plastic, the blue and pink and yellow bags like some kind of sinister confetti.

India's 'Plastic Man' Turns Litter Into Paved Roads

The road to the dump, and beyond it to Madurai’s airport, is like a Hollywood vision of dystopian ruin: lifeless, black, choked with human refuse. And that’s why Rajagopalan Vasudevan’s enthusiasm is so jarring. As he makes his way through the rubbish, he’s like a child on a treasure hunt. “Wonderful resource,” he says, admiring a jumble of plastic bags, jerrycans, and torn food packets. “With all this plastic, I could lay the whole road to the airport.”

It is difficult to exaggerate India’s garbage problem. Jairam Ramesh, the nation’s former environment minister, has said that if there were a “Nobel prize for dirt and filth,” India would win it. As much as 40 percent of the country’s municipal waste remains uncollected, according to the Organisation for Economic Co-operation and Development. Of the waste that is collected, almost none is recycled. Most of it sits in open dumps such as the one in Madurai, leaching into the soil and contaminating groundwater. Some of it is burned, releasing dioxins and other toxic chemicals into the air.

Much of India’s garbage is made up of plastic—a scourge of the nation’s new consumer economy. The country’s Central Pollution Control Board says more than 15,000 tons of plastic waste are generated daily. Although the nation’s per capita consumption of plastic is low compared with that of the U.S., it’s expected to double over the next five years as India continues to develop. This poses huge environmental, social, and economic challenges. As the Supreme Court of India recently observed: “We are sitting on a plastic time bomb.”

Vasudevan sees an opportunity. A professor of chemistry at Thiagarajar College of Engineering, near Madurai, he insists that plastic gets a bad rap. Rather than an incipient environmental calamity, plastic, in Vasudevan’s opinion, is a “gift from the gods”; it’s up to humans to use it wisely. And he’s devised a way to transform common plastic litter—not only thicker acrylics and bottles but also grocery bags and wrappers—into a partial substitute for bitumen in asphalt.

In recent years his method has been gaining recognition. He’s become known as Plastic Man and travels throughout India instructing engineers how to apply it. The college holds a patent for his technique but often licenses it for free. To date, more than 5,000 kilometers (3,000 miles) of plastic roads have been laid in at least 11 states. The Central Pollution Control Board and the Indian Roads Congress, two leading government bodies, have endorsed the method.

via India’s ‘Plastic Man’ Chemist Turns Litter Into Paved Roads – Businessweek.

11/07/2014

Flipkart Fights to Keep India E-Commerce Lead Over Amazon – Businessweek

In 2007, when Indian software engineers Sachin Bansal and Binny Bansal were starting their online bookstore Flipkart.com out of a two-bedroom apartment, they faced a challenge Amazon.com (AMZN) founder Jeff Bezos never had: how to collect payment. At first the two, who aren’t related, accepted credit cards, but because few Indians use them, they needed a way to conduct e-commerce in cash. Payment-on-delivery was the obvious solution, but Flipkart didn’t want third-party couriers to carry large quantities of its money. So in 2010 the company decided to remake itself as a version of both Amazon and United Parcel Service (UPS).

A courier for Flipkart finishes loading his backpack as he prepares to deliver packages at a distribution hub in Bangalore

Becoming a delivery service brought a slew of infrastructure problems. India has no standardized street address system, and road conditions are rough. Often a building name, street, and series of landmarks are needed to locate a house. And customers have to be home to receive a package. “You cannot leave anything outside the door, because it will just disappear,” says Ashok Banerjee, Flipkart’s former vice president for logistics, now chief technology officer for e-business at Symantec (SYMC) in California.

The entrepreneurs looked at distribution as a technology problem. “The advantage we had was we were not a logistics company trying to do e-commerce,” says Mekin Maheshwari, head of human resources. “Because we were creating the systems completely in-house, we could actually solve it.” With venture funding from Tiger Global Management, Flipkart’s engineers developed systems to determine the best warehouse locations; it has six across the country. It alerts customers by text several hours before a scheduled delivery and has a lab dedicated to improving the final stage of deliveries, from local warehouses to buyers.

via Flipkart Fights to Keep India E-Commerce Lead Over Amazon – Businessweek.

11/07/2014

India to Spend $2.2 Billion on Water Supplies, Ganges – Businessweek

Prime Minister Narendra Modi’s new government today pledged 131 billion rupees ($2.2 billion) in spending on water projects to improve supplies and the condition of the Ganges, India’s largest river.

Ganges .. India

Ganges .. India (Photo credit: Nick Kenrick .)

Asia’s third-biggest economy will develop watersheds, build more pumping stations and start to clean the Ganga, blighted by raw sewage along much of its 2,525-kilometer (1,570-mile) route, as India endures a year of “unpredictable” monsoons, Finance Minister Arun Jaitley said.

The government will use 36 billion rupees to improve drinking supplies for about 20,000 villages and small towns affected by arsenic and fluoride contamination, Jaitley told Parliament in the minister’s annual budget speech. About 21.42 billion rupees will be spent on watershed development and 20.37 billion rupees on Ganga upgrades. About 42 billion rupees will go to developing inland waterways in the plan.

via India to Spend $2.2 Billion on Water Supplies, Ganges – Businessweek.

11/07/2014

China’s Patriotic Red Tourism Makes a Comeback – Businessweek

Ear-splitting explosions go off and plumes of gray smoke drift over the arid Shaanxi countryside of northwestern China. Ragtag Communist soldiers in blue uniforms fire their rifles at an advancing Nationalist tank while villagers run for cover. Finally, justice prevails; the red flag of the Chinese Communist Party is held proudly aloft while peasants dance in celebration.

A reenactment of the “Defense of Yan’an”

It’s a scene repeated every day at 11 a.m. as 350 actors reenact the “Defense of Yan’an,” a famous battle against the Nationalist forces of Generalissimo Chiang Kai-shek that was crucial to the founding of the People’s Republic in 1949. “By coming here we can understand how the party sacrificed, created the new China, and built such a beautiful country for us,” says 13-year-old Deng Yi, visiting from Wenzhou, who along with his mother and father, each shelled out 150 yuan ($24) to watch the show.

That’s what China’s leaders want to hear as they expand “red tourism” in more than 100 sites across China. Their goal: to boost patriotism and support for the Chinese Communist Party. “We need to seize these two concepts—red bases and patriotic education on the one hand and developing red tourism on the other,” said President Xi Jinping in March.

Red tourism is not new to China. Millions flocked to red sites including Mao Zedong’s birthplace in Shaoshan, Hunan province, during the Cultural Revolution from 1966 to 1976. Visits to revolutionary locales spiked in 2011, as China prepared to celebrate the party’s 90th anniversary. If China’s leaders have their way, red tourism will have a massive renaissance. Already last year, 786 million tourists visited revolutionary sites, up 17.3 percent from the previous year, generating 198.6 billion yuan ($32 billion) in revenue, up 19.1 percent, according to the National Tourism Administration.

“We need to seize these two concepts—red bases and patriotic education on the one hand and developing red tourism on the other.”—President Xi

One of the most popular is Yan’an, the “cradle of the revolution” where Mao, General Zhu De, and other revolutionaries spent more than a decade living in caves starting in 1936. It’s also where President Xi, while a teenager, spent seven years among the peasants during the Cultural Revolution. Jinggangshan, in Jiangxi province, where the rebels hid out in the late 1920s and early 1930s, and Zunyi, in Guizhou province, a key stop on the Long March, are also top destinations.

To prepare for the onslaught of photo-snapping fellow travelers, China’s Ministry of Civil Affairs last year spent 2.8 billion yuan on constructing memorials, while the state bureau in charge of cultural relics earmarked 487 million yuan for renovating red sites. Another 1.5 billion yuan was spent on 66 “red tourism highways” across the country.

“We hope to teach the next generation about what happened before,” says Hong Jiasheng, chairman of Yan’an Shengdian Red Tourism Development, which is run jointly with the local government and draws 500,000 tourists annually. An entrepreneur from Zhejiang province, Hong launched on July 6 a similar show in Fushun, Liaoning province, reenacting an important 1948 battle.

The push to develop red tourism is part of a larger campaign launched in December to instill citizens with what Xi calls core socialist values aimed at realizing the “Chinese Dream.” Those include patriotism, dedication, civility, and harmony. The values campaign will expand patriotic education in primary and middle schools, with university students encouraged to go on organized weeklong summer visits to red sites. Since China’s opening to the world, “Chinese have embraced diversified thoughts, including the decayed, outdated ideals of mammonism and extreme individualism,” the People’s Daily said in a February editorial.

via China’s Patriotic Red Tourism Makes a Comeback – Businessweek.

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