Archive for November, 2014

19/11/2014

China and Japan: Out of the deep freeze | The Economist

AFTER Japan’s prime minister worshipped at Tokyo’s Yasukuni shrine last December, China declared Shinzo Abe to be beyond the pale; principles are principles. But Chinese ones are, well, nothing if not adaptable, and on November 10th President Xi Jinping met Mr Abe for the first time. A “four-point agreement” comes as a welcome signal that tensions between Asia’s two biggest powers might, at least for now, begin to ease.

The thorn in the side of relations is Japan’s Senkaku islands, which China claims and calls the Diaoyus. Chinese aircraft and coastguard vessels have greatly raised tensions from 2012 onwards, by making incursions around the Senkakus. So it is progress that Japan and China now acknowledge “the emergence of tense situations” there. For the first time Japan has referred to the Senkakus in a document with China. Chinese analysts claim a diplomatic victory. Even if obliquely, Japan acknowledges a dispute over sovereignty, Huang Dahui of Renmin University argues. Yet the wording also left ample room for Japanese diplomats to insist that they have not acknowledged any such thing.

The negotiations seem mostly about avoiding the hard issues. On Yasukuni, it beggars belief to think the Japanese promised Mr Abe would not visit the shrine where high-ranking war criminals are honoured. The joint statement says that Japan and China will overcome “political difficulties” in the spirit of “squarely facing history” (a favourite Communist Party phrase). China believes that means Mr Abe will stay away. Mr Abe and his right-wing supporters may think differently.

Most welcome is a commitment to set up crisis-management mechanisms in the crowded seas and skies around the Senkakus. For months both sides’ armed forces have seen the need for such a step, says Noboru Yamaguchi, a retired Japanese general. Yet the details remain unclear.

Now the two countries’ ministries can resume their connections, though exchanges are likely to remain fraught. As if to underscore the challenges, this week Mr Abe brought up with Mr Xi a fresh diplomatic complaint, about Chinese coral poachers hunting near Japan’s distant Ogasawara islands. As for the Senkaku islands and waters, will China withdraw incursions by its coastguard cutters? That would be the most genuine proof of a Chinese desire to lower the temperature.

via China and Japan: Out of the deep freeze | The Economist.

19/11/2014

Putin Loses His Grip on Central Asia as China Moves In – Businessweek

As President Vladimir Putin strains to keep Ukraine within Russia’s grasp, he may be losing his grip on another part of his would-be empire: the former Soviet republics of Central Asia, which are increasingly turning toward China for investment and trade.

Russia's President Vladimir Putin and Tajik President Emomali Rakhmon meet on the sidelines of an informal summit of the regional security group in 2013

In the latest sign of its growing economic ties with the region, China is planning a $16.3 billion fund to finance railways, roads, and pipelines across Central Asia, reviving the centuries-old Silk Road trade route between China and Europe. President Xi Jinping first proposed the idea last year during a visit to Kazakhstan, the region’s wealthiest country.

Beijing has plenty of reasons to spend big in Central Asia. Improved infrastructure would help link China to European markets and give China increased access to the region’s rich natural resources. Kazakhstan is a major oil producer, while neighboring Kyrgyzstan has large mineral deposits and Turkmenistan produces natural gas.

At the same time, the planned construction would give an economic boost to adjoining areas of western China where Beijing is trying to quell a separatist insurgency, says Sarah Lain, a researcher at the Royal United Services Institute in London. As it has in Africa, China is likely to bring Chinese workers into Central Asia to do much of the construction.

During much of the 19th century, the Russian and British empires vied for control of Central Asia, a rivalry dubbed the “Great Game.” But the predominantly Muslim region, which also includes the countries of Tajikistan, Turkmenistan, and Uzbekistan, was annexed by the Soviet Union after the Bolshevik revolution and has remained close to Moscow in the post-Soviet era.

Putin has sought to maintain those ties—for example, by inviting Kazakhstan and Kyrgyzstan to join a customs union with Moscow. But with the Russian economy in a deep slump, he can’t match the big money that China is offering. Indeed, Russia’s economic malaise is clobbering some Central Asian economies, spurring them to seek help from China.

via Putin Loses His Grip on Central Asia as China Moves In – Businessweek.

19/11/2014

China’s Aging Migrant Workers – Businessweek

China’s migrant worker population is getting bigger and older and includes more families living together, a government report released today shows.

A Chinese migrant worker labors at the construction site of a real estate project in Jiujiang city, east Chinas Jiangxi province on March 3, 2014.

With 245 million migrant workers as of the end of 2013, China’s liudong renkou, or floating population, now amounts to one-sixth of all Chinese. That’s up from 236 million  a year earlier, says the study, released on Nov. 18 by the National Health and Family Planning Commission.

With China’s entire population aging, it’s no surprise that its migrants are getting older, too. The report says that the average age of migrant workers has gone from 33.1 years old in 2011 to 33.7 at the end of last year. And they are more likely to move with their families: The number of migrant worker parents bringing their children with them (6- to 15-year-olds) has risen to 62.5 percent, up 5.2 percentage points from 2011.

That’s good news. China has 61 million “left-behind children”, the offspring of migrant workers who are separated from their parents and still living in the countryside, according to some estimates. They make up more than one in five of all youth in China and often suffer from psychological problems, including juvenile delinquency, and are prone to high rates of dropping out of school.

The jump in children accompanying their worker parents may suggest that life for migrant families may be slowly starting to improve. China’s leaders have made urbanization a top goal and aim to lift the proportion of people living in cities from just over 53.7 percent now to 60 percent by 2020.

To encourage that, China’s economic planners announced last November that they will start to allow migrants to get more access to urban benefits including pensions, health care, and crucially education for their children. Progress on the complicated and expensive reforms, however, has been limited.

via China’s Aging Migrant Workers – Businessweek.

19/11/2014

Narendra Modi Is in Fiji. This Shows Why – India Real Time – WSJ

Pristine beaches, blue skies,  it’s not hard to imagine why Indian Prime Minister Narendra Modi would want to stop by the island nation of Fiji after a hectic few days at the G-20 summit in Australia.

But there’s another reason Mr. Modi has made the newly-minted South Pacific democracy his final port of call during a three-nation tour that concludes Thursday: China.

In 2012, there was an influx of Chinese investors and companies expressing and registering their interest in setting up businesses in Fiji, according to Investment Fiji’s annual report for the year.

Chinese investors accounted for 20% of the projects registered by foreign companies in Fiji in 2012, while Indian investment accounted for 10%, the report said.

China has tried to raise its profile across the South Pacific over the past decade. The 12 South Pacific island nations that make up the region are much less populous than other parts of Asia, but have vast fishing grounds and potentially large deep-sea mineral deposits.

Chinese companies have bought stakes in Fiji’s largest gold mine and invested in its bauxite industry. Foreign direct investment by Chinese companies in Fiji accounted for around 37% of the value of projects registered this year, compared with just 2.9% in 2009.

Trade figures from Fiji’s Bureau of Statistics show that India lags far behind. In 2013, China exported $27.29 million in goods to Fiji, compared to $4.76 million imported to the island from India.

via Narendra Modi Is in Fiji. This Map Shows Why – India Real Time – WSJ.

19/11/2014

‘Exceptionally Low’ Female Labor Participation Holding Back India’s Economy – India Real Time – WSJ

Women’s empowerment hasn’t featured prominently so far in Indian Prime Minister Narendra Modi’s program for economic revival. It probably should, according to the latest overview of the Indian economy by the Organization for Economic Cooperation and Development.

The report, released Wednesday by the Paris-based club of rich nations, suggests that enlarging economic opportunities for women could be a new “growth engine” for India, accelerating GDP growth by around two percentage points each year. India has narrowed the gender gap in health and education, the report says. But Indian women still lag far behind men when it comes to participation in both the formal and informal economies.

Just a third of working-age women in India were employed or looking for a job in 2010, a lower share by some distance than in Brazil (around 65%), China (75%), Indonesia (55%) or South Africa (45%). The figure for Indian men was over 80%.

More strikingly, female labor participation in India has actually fallen over the last decade: According to Indian-government data, the working-age populations of both men and women increased by around 100 million between 2000 and 2012. But the number of women employed or seeking employment only grew by 7 million over that period, whereas the number of men in those categories expanded by 70 million. Just a quarter of the increase in the number of women outside the labor force was accounted for by more women staying in school.

Indian women who do work don’t have great jobs, the OECD report shows. More than a third are unpaid helpers, as opposed to just 11% of working men. Women are also overrepresented in low-productivity agriculture and traditional, small-scale manufacturing. Only 6% of employed women get formal benefits like pensions or maternity leave. There aren’t many female entrepreneurs. (The report notes, though, that there aren’t many entrepreneurs in India, period, relative to other countries at the same stage of development.)

Illiterate women are more likely to be in the labor force than better-educated women, though participation is higher among high-school graduates. The relationship between female participation and income is similar: The richer a woman’s household is, the less likely she is to work.

Those patterns suggest “exceptionally low” female labor participation isn’t fully explained by simple measures of worker productivity.

On a 2012 OECD index of social obstacles to gender equality, India scores poorly relative to other large developing countries. Families’ preference for sons is stronger. Violence against women is more common. Women’s access to credit, land and property is more restricted. Marriage and inheritance laws favor men more.

Other social norms matter, too. As men’s incomes have risen over the last decade, their wives may prefer housework to a low-paying job, the report suggests. One study cited by the report finds that a family’s social status is considered higher if the woman stays at home.

via ‘Exceptionally Low’ Female Labor Participation Holding Back India’s Economy – India Real Time – WSJ.

19/11/2014

Xi Jinping Visits Tasmania, Is Given (Authentic) Lavender-Filled Teddy Bear – China Real Time Report – WSJ

What does one give to China’s visiting head of state as a keepsake to mark the occasion? Angela Merkel went with an old map that had a less-than-politically correct interpretation of China’s borders. Vladimir Putin presented an example of Russia’s cutting-edge consumer technology. Nahendra Modi handed over a bound copy of the Bhagavad Gita, a sacred Hindu text, in Chinese.

Alighting from his flight to Hobart, the capital of the Australian state of Tasmania, schoolchildren presented President Xi Jinping with a lavender stuffed teddy bear (at 48 seconds). Mr. Xi didn’t appear surprised or puzzled by why he was bring presented with potpourri. Then again, Bobbie Bear is a minor celebrity in China, and has done more than anyone to put Tasmania on the map for Chinese tourists.

Mr. Xi didn’t get to visit Bridestowe Lavender Estate which produces the bears – and where he would have been limited to buying one bear only, a measure taken by the farm’s management late last year to ensure sufficient supply to satisfy the busloads of Chinese tourists. Factories in China have produced knock-offs in numbers that far exceed the farm’s own production capacity, says owner Robert Ravens, which means a visit to Tasmania is the only way to be sure the bear you buy is real.

For Tasmania, Bridestowe holds potential of what China – hungry for clean and healthy produce, and with tourists increasingly willing to travel off the beaten track – can do for a struggling economy.

On Monday, Australian Prime Minister Tony Abbott announced at a dinner for the Chinese first couple at Parliament House that Bridestowe Lavender Estate had won the inaugural Australia-China Achievement Award for entrepreneurship. The award went to the farm for its “pro-active and innovative market entry into China and promoting Tasmania as a destination for Chinese tourists.”

Mr. Xi and his wife’s taking custody of Bobbie rounds out a busy schedule of cuddling as many Australian marsupials as possible. And while Bobbie might not have the same novelty value as Australia’s menu of unique fauna, it’s likely the only one the first couple will be taking home with them.

via Xi Jinping Visits Tasmania, Is Given (Authentic) Lavender-Filled Teddy Bear – China Real Time Report – WSJ.

13/11/2014

US, India end impasse that threatened WTO pact – Businessweek

The United States and India said Thursday they reached agreement on stockpiling of food by governments, clearing a major stumbling block to a deal to boost world trade.

India had insisted on its right to subsidize grains under a national policy to feed its many poor, while the U.S. and others in the World Trade Organization were more focused on liberalizing agricultural trade.

The two countries did not announce details of their new deal, which will be reviewed by the WTO’s general council.

Both countries said, however, their agreement should clear the way for immediate implementation of a global deal that’s designed to increase trade by reducing customs red tape.

“We are extremely happy that India and the U.S. have successfully resolved their differences related to the issue of public stockholding for food security purposes,” the Indian Ministry of Commerce and Industry said in a statement.

The WTO has said the Trade Facilitation Agreement could boost global trade by $1 trillion, but the possibility of failure in the negotiations had threatened to render the WTO irrelevant as a forum for negotiations after a decade of inertia in trade talks.

via US, India end impasse that threatened WTO pact – Businessweek.

13/11/2014

China, U.S. agree limits on emissions, but experts see little new | Reuters

China and the United States agreed on Wednesday to new limits on carbon emissions starting in 2025, but the pledge by the world’s two biggest polluters appears to be more politically significant than substantive.

U.S. (L) and Chinese national flags flutter on a light post at the Tiananmen Square ahead of a welcoming ceremony for U.S. President Barack Obama, in Beijing, November 12, 2014. REUTERS/Petar Kujundzic

As China’s President Xi Jinping agreed to a date for peak CO2 emissions for the first time and also promised to raise the share of zero-carbon energy to 20 percent of the country’s total, President Barack Obama said the United States would cut its own emissions by more than a quarter by 2025.

via China, U.S. agree limits on emissions, but experts see little new | Reuters.

13/11/2014

China offers ASEAN friendship treaty as South China Sea tension bubbles | Reuters

China’s Prime Minister Li Keqiang proposed a “friendship” treaty with Southeast Asian countries on Thursday but reiterated that territorial disputes in the South China Sea should be settled directly between the countries involved.

(L-R) Australian Prime Minister Tony Abbott, Cambodian Prime Minister Hun Sen, Indian Prime Minister Narendra Modi, Brunei's Sultan Hassanal Bolkiah, China's Premier Li Keqiang, Myanmar's President Thein Sein, U.S. President Barack Obama, Malaysia's Prime Minister Najib Razak and Russia's Prime Minister Dmitry Medvedev pose for a photo before the East Asia Summit (EAS) plenary session during the ASEAN Summit in Naypyitaw November 13, 2014. REUTERS/Soe Zeya Tun

China, Taiwan and four Association of Southeast Asian Nations (ASEAN) have competing claims in the sea where concern is growing of an escalation in disputes even as the claimants work to establish agreements to resolve them.

“China … stands ready to become the first dialogue partner to sign with ASEAN a treaty of friendship and cooperation,” Li told leaders at a summit of East Asian countries in Myanmar.

The treaty is seen as an attempt by Beijing to dispel any notion it is a threat.

Li added China was willing to sign legal documents with more countries in the region on good-neighborliness and friendship.

Still, the Chinese premier reiterated Beijing’s resolve to safeguard its territorial sovereignty and its position that disputes concerning the South China Sea should be settled directly rather than collectively or through arbitration.

The competing maritime claims have formed an undercurrent of tension at the East Asian and ASEAN summits in Myanmar this week.

The Philippines, one of the ASEAN claimants, has previously irked Beijing by seeking international arbitration over China’s claims to about 90 percent of the South China Sea.

Diplomatic sources from the Philippines reacted coolly to China’s treaty proposal, saying that it lacked substance and was similar to a 2012 proposal made by Manila and ignored by Beijing.

Li will meet the heads of ASEAN countries behind closed doors later on Thursday, with Southeast Asian leaders hoping to persuade their giant neighbor to take a less bellicose approach to overlapping claims in the South China Sea.

The Philippines and Vietnam have sought closer U.S. ties to counter what they see as China’s aggression in the region.

via China offers ASEAN friendship treaty as South China Sea tension bubbles | Reuters.

11/11/2014

Modi’s Make in India Push to Take on China Faces Red Tape – Businessweek

Prime Minister Narendra Modi is seeking to turn India into a global manufacturing hub by curbing red tape. Tell that to Tata Steel Ltd. (TATA), which closed one of its largest iron-ore mines in September over permit delays.

Close up - Clothes marker - Made in India

India’s largest maker of the alloy isn’t alone. Steel Authority of India Ltd. (SAIL) shut one of its top-yielding quarries the same month pending renewal of its lease. JSW Steel Ltd. (JSTL)’s plan to start mining in eastern Jharkhand state has been hampered by a probe begun last month into mine allocations.

Modi is set to trumpet his “Make in India” initiative at the Group of 20 summit in Australia this week as he vies with China to woo manufacturers. The mine closures show lingering bureaucratic obstacles to his push, stemming from court rulings and officials in India’s 29 states that lie beyond Modi’s direct control. India slid two places to 142nd out of 189 economies in the World Bank’s latest ease of doing business rankings.

via Modi’s Make in India Push to Take on China Faces Red Tape – Businessweek.

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