Archive for November, 2014

11/11/2014

Chinese Workers Get Nice Raises but Japanese Get Stiffed – Businessweek

American workers aren’t the only ones wondering when they’ll finally be getting a raise. In Japan, companies benefiting from the weak yen are enjoying record profits, but they’re still reluctant to agree to significant wage increases for their workers. In a survey of expected 2015 salary increases in 17 Asian countries, Japan comes in second-to-last, according to human resources consulting company ECA International. Only Macau, the Chinese gambling enclave hit by high inflation, will do worse.

Car manufacturing in Wuhan, China

Even what appears to be good news turns out to leave households struggling. Last week, the Japanese government announced average monthly wages increased 0.5 percent in September. While that was the best performance in more than six years, workers shouldn’t get too excited. After adjusting for price increases, total cash earnings (including bonuses and overtime payments) fell for the 15th consecutive month, dropping 2.9 percent.

Until recently, Japanese workers could at least rely on deflation to provide a boost to their earnings. But with the yen falling, taxes rising, and the Bank of Japan starting a new round of stimulus, that’s no longer the case. “With deflation going on, actually people were much better off than they were in previous years,” Lee Quane, ECA regional director for Asia, told Bloomberg TV on Monday. Now, however, “because of the impact of the consumption tax increases and other inflationary impacts, actually workers aren’t going to be very well off in 2015 vs. this year.”

via Chinese Workers Get Nice Raises but Japanese Get Stiffed – Businessweek.

11/11/2014

For APEC, Beijing Briefly Cleans Up Its Skies, but Can’t Help the Sewage – Businessweek

Beijing has, once again, cleaned up the air to impress the foreign dignitaries visiting for this week’s APEC summit. The phenomenon is so predictable that there’s even a new phrase on Chinese social media, “APEC blue,” used to refer to something that is beautiful or enticing, but also fleeting. As in, “He’s not that into you, it’s just APEC blue.”

A riverbank in Beijing

Yet while China’s government can order factories in and near Beijing to shut down for about a week to clear the skies, it can’t as quickly clean up the capital’s dirty urban waterways. A new investigation by the newspaper Economic Information highlights one nasty but lingering problem in Beijing and other large Chinese cities: lack of adequate sewage treatment facilities.

Xiong Jianxin, an official in Beijing’s municipal water bureau, told the newspaper that some sewage plants on the outskirts of the capital are easily overwhelmed. While plants are built to handle up to 550,000 tons of water daily, at peak times they send as many as 100,000 tons of unprocessed sewage daily back into rivers or channels. Officials in several other large cities shared similar horror stories.

via For APEC, Beijing Briefly Cleans Up Its Skies, but Can’t Help the Sewage – Businessweek.

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11/11/2014

COMAC signs deal for 30 C919 jets with China Merchants Bank: source | Reuters

Chinese state-owned plane maker Commercial Aircraft Corp of China (COMAC) has signed an initial agreement to sell 30 of its C919 single-aisle commercial jets to the financial leasing arm of China Merchants Bank (600036.SS), a person with direct knowledge of the deal told Reuters on Tuesday.

The nose of China's home-grown airliner C919 is unveiled in Chengdu, Sichuan province, July 31, 2014.  REUTERS/China Daily

The order, sealed at China’s premier air industry trade show in Zhuhai, lifts COMAC’s order book for the C919 to 430, mostly from domestic companies. Still in development, the C919 will be the first Chinese-built jet of its type, targeted at eventually competing with Boeing Co (BA.N) and Airbus Group NV (AIR.PA).

Financial terms of the order weren’t disclosed.

via COMAC signs deal for 30 C919 jets with China Merchants Bank: source | Reuters.

11/11/2014

Airbus aims to double China component sourcing value to $1 billion by 2020 | Reuters

European jet maker Airbus Group NV (AIR.PA) aims to double the annual value of aircraft components it sources from China to $1 billion by 2020, the firm’s China Chief Operating Officer, Rafael Gonzalez-Ripoll-Garzon, said on Tuesday.

A flight test engineer holds an Airbus Group flag after the first flight of the Airbus A320neo (New Engine Option) in Colomiers near Toulouse, southwestern France, September 25, 2014.  REUTERS/Regis Duvignau

The Airbus executive’s comment, made on the sidelines of China’s premier airshow in Zhuhai, came as the European firm’s chief rival Boeing (BA.N) said it’s also seeking to ramp up China component sourcing.

Kent Fisher, Boeing Commercial Airplane’s vice-president and general manager of supplier management, said that over the next few years his company is looking to double the $2 billion worth of aircraft parts it has sourced from China in total over the last 30 years. Fisher was speaking at a separate press briefing at the air show and didn’t provide further details.

Boeing also said it had signed a deal with Aviation Industry Corporation of China to produce composite tail parts for the Boeing 777 program, beginning in 2017.

Airbus and Boeing have been competing fiercely in China, which will need over 6,020 new planes worth $870 million the next 20 years, according to Boeing’s latest forecast.

Both have been increasing their sourcing in China, using locally made composite materials and parts like emergency doors in aircraft like the Airbus A330 and Boeing B787 jets.

via Airbus aims to double China component sourcing value to $1 billion by 2020 | Reuters.

11/11/2014

China unveils sophisticated stealth fighter aircraft | Reuters

China unveiled a sophisticated new stealth fighter jet at an air show on Tuesday, a show of muscle during a visit by U.S. President Barack Obama for an Asia-Pacific summit.

A J-31 stealth fighter of the Chinese People's Liberation Army Air Force is seen during a test flight ahead of the 10th China International Aviation and Aerospace Exhibition in Zhuhai, Guangdong province, November 10, 2014. REUTERS/Alex Lee

China hopes the much-anticipated J-31 stealth aircraft, developed by the Aviation Industry Corp of China (Avic), the country’s top aircraft maker, will compete with U.S.-made hardware in export markets.

The twin-engine fighter jet was unveiled at the China International Aviation and Aerospace Exhibition in the southern city of Zhuhai, an annual event at which China shows off its military technology, a Reuters witness said.

The J-31 conducted a demonstration but was not put on display afterwards although a mock-up version was on show.

via China unveils sophisticated stealth fighter aircraft | Reuters.

10/11/2014

Who’s Who in Narendra Modi’s New Cabinet in India – India Real Time – WSJ

In his first Cabinet reshuffle late Sunday, India’s Prime Minister Narendra Modi expanded the number of ministers in his government from 44 to 65.

That takes him just six shy of his predecessor Manmohan Singh’s coterie before his Congress party was ousted in national elections earlier this year by Mr. Modi’s Bharatiya Janata Party that campaigned with a mantra for “minimum government, maximum governance.”

The enlargement nudges up the number of women ministers to eight from seven and gives key posts to members of parliament from states that are due for local elections in the coming months.

Here are the main moves, promotions, demotions and new arrivals in the modified Cabinet.

Major Cabinet Minister Moves

Suresh Prabhu becomes railway minister replacing Sadananda Gowda. Mr. Prabhu, 61, a former member of the Shiv Sena party, resigned from the regional party to join the Bharatiya Janata Party on Sunday. A chartered accountant by profession and also a law graduate, Mr. Prabhu served as a cabinet minister in the previous BJP-led National Democratic Alliance for six years, handling key portfolios such as power, heavy industries and public enterprises and environment and forests among others. Mr. Prabhu has often been described by many as that “un-common whiff of much needed fresh air on the horizon of Indian public life,” according to his official website.

Manohar G. Parrikar is the new defense minister. Mr. Parrikar quit as Goa’s Chief Minister last week and takes charge of the defense ministry from Arun Jaitley.

A technocrat-turned-politician, Mr. Parrikar joined the BJP in 1988 and went on to become the chief minister of Goa for the first time in 2000. During his time as chief minister, he was credited with improving the western state’s infrastructure  overseeing the construction of major bridges, building bus stands and improving the road network across the state. “Known to be a man of action and principles, Mr. Parrikar is known as Mr. Clean in Goa,” his website said. As the new defense minister, Mr. Parrikar faces the daunting task of closing the country’s pending defense deals.

Arun Jaitley was relieved of the defense portfolio but was given an additional charge of information and broadcasting ministry previously held by Prakash Javadekar. Mr. Jaitley also continues as the head of the finance and corporate affairs ministries. A lawyer by profession, the BJP leader is known to be media-savvy.

Dr. Harsh Vardhan was deprived of his health and family welfare ministry in the shuffle and shifted to a low-key science and technology, Earth sciences ministry. Dr. Vardhan ran for the post of Delhi chief minister in elections in December but was beaten to the position by Aam Aadmi Party leader Arvind Kejriwal who stepped down only a few weeks in to the job.

Prime Minister Modi remains in charge of Personnel, Public Grievances and Pensions, the Department of Atomic Energy Department of Space; all important policy issues and all other portfolios not allocated to any minister, according to the press information bureau.

more on Cabinet Ministers and Ministers of State …

via Who’s Who in Narendra Modi’s New Cabinet in India – India Real Time – WSJ.

10/11/2014

Xi Jinping’s Ice-Cold Handshake With Japan’s Shinzo Abe – China Real Time Report – WSJ

Well, it’s a start.

Photo

After years of tensions over disputed territory, disputed history and visits to a certain shrine, China and Japan drew closer to establishing a more functional diplomatic relationship with a handshake on Monday between Chinese President Xi Jinping and Japanese Prime Minister Shinzo Abe at the Asia-Pacific Economic Cooperation summit in Beijing.

As the video above suggests, the encounter was a tad on the chilly side, with Mr. Xi apparently refusing to return his counterpart’s greeting and looking throughout the photo op as if he’d rather be shaking hands with one of the goats that are said to be stripping the aforementioned disputed Diaoyu/Senkaku islands of their scant vegetation.

As WSJ’s Yuka Hayashi reports, however, a subsequent sit-down between the two leaders appears to have been somewhat more productive:

Speaking to reporters shortly after the meeting, Mr. Abe said, “I believe Japan and China took the first step toward improving our relationship as we go back to the principle of mutually beneficial strategic relations.”

The meeting, in Beijing’s Great Hall of the People, lasted just short of 30 minutes. It followed weeks of intense, behind-the-scenes negotiations, as officials from Asia’s two biggest economies sought to arrange for Messrs. Abe and Xi to get together on the sidelines of the Asia Pacific Economic Cooperation forum.

…“I am aware that our neighbors in Asia and many countries beyond had been hoping to see dialogue between Japanese and Chinese leaders,” Mr. Abe said. “We were able to respond to such wishes and begin taking steps toward repairing our ties.”

China and Japan had earlier issued a surprise announcement that they planned a gradual resumption of diplomatic and security dialogues, though each side translated the text of the agreement in ways that made it look like the other had folded. That subtle sniping continued on Monday, when China’s official Xinhua news agency emphasized that the meeting between Messrs. Xi and Abe came “at the request of the Japanese side” — a message Mr. Xi’s expression during Monday’s handshake helped reinforce.

It wasn’t the first time onlookers have felt a chilly blast when the prime minister of Japan met China’s president. In November 2010, for example. then-Prime Minister Naoto Kan met then-Chinese President Hu Jintao. The meeting saw a few arms-length handshakes exchanged. Mr. Kan read out his greetings to Mr. Hu from a memo. A Chinese fishing trawler had collided with a Japan coast guard boat that September near disputed islands, known as Senkaku in Japan and Diaoyu in China.

via Watch: Xi Jinping’s Ice-Cold Handshake With Japan’s Shinzo Abe – China Real Time Report – WSJ.

10/11/2014

China, Vietnam willing to handle maritime issues through dialogue | Reuters

China and Vietnam have agreed to handle maritime disputes through dialogue, Chinese state media reported on Monday, months after ties between the two countries hit a three-decade low in a row over a Chinese oil rig in disputed waters.

Photo

The two Communist neighbors must respect each other and focus on long-term interests, President Xi Jinping said, according to the official Xinhua news agency.

Sino-Vietnamese relations have been advancing continuously since the two nations established diplomatic relations, despite some twists and turns,” he said.

Vietnamese President Truong Tan Sang said his country was ready to “properly deal with maritime issues through friendly consultation so that the issues will not affect its relations with China”, according to Xinhua.

via China, Vietnam willing to handle maritime issues through dialogue | Reuters.

09/11/2014

China to establish $40 billion Silk Road infrastructure fund | Reuters

China will contribute $40 billion to set up a Silk Road infrastructure fund to boost connectivity across Asia, President Xi Jinping announced on Saturday, the latest Chinese project to spread the largesse of its own economic growth.

A map indicating trading routes used around th...

A map indicating trading routes used around the 1st century CE centred on the Silk Road. (Photo credit: Wikipedia)

China has dangled financial and trade incentives before, mostly to Central Asia but also to countries in South Asia, backing efforts to resurrect the old Silk Road trading route that once carried treasures between China and the Mediterranean.

The fund will be for investing in infrastructure, resources and industrial and financial cooperation, among other projects, Xi said, according to Xinhua.

via China to establish $40 billion Silk Road infrastructure fund | Reuters.

07/11/2014

Foreign policy: Showing off to the world | The Economist

THE factories have closed down for a few days, and millions of cars have been ordered off the roads. Clear blue skies appearing over a usually smog-choked Beijing always mean one thing: a big event is about to get under way.

From November 10th President Xi Jinping will welcome world leaders to this year’s Asia-Pacific Economic Co-operation (APEC) summit. Not since the Olympics in 2008 have so many leaders gathered in the capital, and they will include the heads of the United States, Russia and Japan. It is a defining moment for Mr Xi’s foreign policy. Having established himself at home as China’s most powerful leader since Deng Xiaoping, he now seems to want to demand a bigger, more dominant and more respected role for China than his predecessors, Deng included, ever dared ask for.

Respect begins by putting on a good face to guests. Chinese bullying over disputed maritime claims has done much to raise tensions in the region. But now Mr Xi appears to be lowering them. In particular, China’s relations with Japan have been abysmal. The government has treated Japan’s prime minister, Shinzo Abe, with both venom and pettiness, implying he is a closet militarist. The relationship had sunk to such a low that it will count as notable progress if Mr Xi shakes Mr Abe’s hand—even if he does little more—at the summit.

On November 11th and 12th, Mr Xi will host a state visit in Beijing for Barack Obama. It is the second summit with the American president, following one at Sunnylands in California in 2013. It will be a good show, with a scenic walk and all that. But the substance appears less clear. At the time of Sunnylands, there was much Chinese talk of a “new type of great-power relationship” with America. Yet since it implies a diminished role for America, at least in Asia, Mr Obama does not seem inclined to go along. The two men appear likely to co-operate in a few areas, including climate change, trade and investment. They will agree to a bit more communication over respective military movements in and over the seas near China. But hopes that cordiality at Sunnylands might lead the relationship to blossom may come to little.

In truth, Mr Xi does not have much respect left for Mr Obama; the Chinese dismiss him as weak-willed in foreign policy. And so much of Mr Xi’s ambition lies elsewhere. Above all, the dream is to return China to its rightful place in a world in which, according to Bonnie Glaser of the Centre for Strategic and International Studies, a Washington think-tank, “China will be at the centre, and every other nation will have to consider China’s interests.”

This attitude is most familiar to China’s neighbours in the South China Sea and East China Sea. China has upset the Philippines by grabbing a disputed reef; Vietnam, by moving an oil rig into contested waters; Japan, by challenging its control over uninhabited islets; and even South Korea which, though on good terms, was concerned along with others when China declared an “Air Defence Identification Zone” over the East China Sea, demanding that planes inform it when entering it.

Yet Mr Xi has also courted friends under the catchphrase of “peaceful development”. He has pushed multilateral initiatives, including a new Asian Infrastructure Investment Bank, which many of China’s neighbours, including India, have signed up to. A New Development Bank has also been set up with fellow “BRICs”—Brazil, Russia, India and South Africa.

One of Mr Xi’s playmates is President Vladimir Putin. China and Russia have a history of mutual distrust, but Mr Xi’s first trip abroad as president, in March 2013, was to Moscow. Since then the two countries have struck a long-stalled gas deal and, according to Kommersant, a Russian newspaper, a pact on cyber-security. China backs Russia’s pro-Syrian stand in the UN Security Council and has refused to condemn Russia’s territorial incursions in Crimea and eastern Ukraine—though it loves to preach non-interference.

A strong thread that binds the two countries is American dominance in international affairs. “No country”, said Mr Xi at a security summit earlier this year to which Mr Putin was invited, “should attempt to dominate regional security affairs or infringe upon the legitimate rights…of other countries.” Mr Xi did not name America, but a month earlier Mr Obama had in Tokyo emphasised that America’s security pact with Japan extended to the Japan-controlled Senkaku islands, which China claims and calls the Diaoyu.

Is Mr Xi’s foreign policy succeeding? Only in parts. China’s maritime assertiveness has pushed some neighbours closer to Japan and America. But for long China will remain Asian nations’ biggest trading partner. It is busy pursuing regional and bilateral trade agreements while an American-led trade initiative, the Trans-Pacific Partnership, is bogged down. At APEC Mr Xi will seek to build on those economic relationships. And, given China’s heft, by and large he will succeed.

via Foreign policy: Showing off to the world | The Economist.

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