Archive for March, 2015

11/03/2015

Ideology: Class struggle | The Economist

IN THE first week of March university students in China will return from a break of six weeks or more. They will find a new chill in the air. While they have been away, officials have been speaking stridently—indeed, in the harshest terms heard in years—about the danger of “harmful Western influences” on campuses, and the need to tighten ideological control over students and academic staff.

Universities have always been worrisome to the Communist Party; they have a long history in China as wellsprings of anti-government unrest. The party appoints university presidents. Its committees on campuses vet the appointment of teaching staff. Students are required to study Marxist theory and socialism. They are not allowed to study politically sensitive topics such as the grievances of Tibetans or the army’s crushing of the student-led protests in Tiananmen Square in 1989.

There is no sign of an anti-party campaign developing on campuses (students are signing up for party membership in droves, believing it to be a path to career success). But since Xi Jinping took over as China’s leader in 2012, the party has been trying to reinforce its control in numerous areas. In the army it appears that Mr Xi has been leading the effort personally (see article). In the academic realm, his involvement in the crackdown now unfolding is less certain. But he has shown no sign of resisting it, and some of the rhetoric warning of the dangers of Western values echoes his own. Mr Xi is certainly no liberal. In his rule he has tightened controls over the media, and there have been numerous arrests and trials of civil-society activists.

That officials have begun to turn their attention to campuses became evident on January 19th, when Xinhua, a state-controlled news agency, published a summary of a document issued secretly by the central authorities in October. It directed universities to “strengthen” their efforts to spread the party’s propaganda and promote its ideology. It told them to educate students better in the history of the party, as well as about the “Chinese dream” (a pet idea of Mr Xi’s). The document also urged educators “firmly to resist infiltration by hostile forces”. It was suffused with the same sense of a party under assault by Western liberal thinking that permeated a secret directive issued in 2013, known as Document Number Nine. That spoke of the threat posed by ideas such as universal values, civil society and press freedom—positive mention of which had occasionally surfaced in some Chinese newspapers and still occurs frequently in university classrooms.

An old-style propaganda campaign is now unfolding. On January 29th Yuan Guiren, the education minister, declared at a conference that “textbooks promoting Western values” would not be allowed in classrooms, nor would “slandering” of the party leadership. Officials at the same meeting echoed his views, including the party chiefs of Peking University and Tsinghua University, the country’s most prestigious colleges. On February 6th a commentary in the People’s Daily, the party’s main mouthpiece, quoted the party chief of Renmin University in Beijing as saying that Marxist thinking must “enter textbooks, enter classrooms and enter brains”.

via Ideology: Class struggle | The Economist.

11/03/2015

India’s Millionaires Have Been Leaving the Country in Droves – India Real Time – WSJ

India may have been minting millionaires at an unprecedented rate over the past decade, but it has also seen many of its seven-figured-citizens escape to other countries.

The latest Knight Frank’s annual Wealth Report–which looks at the spending habits of the rich, the superrich and the “I have my own Boeing but forgot where I parked it,” rich—estimates that more than 43,000 Indian millionaires left the country to settle elsewhere in the past 10 years. That is second only to China, which saw a private-plane drain of more than 76,000 people, according to estimates from property company Knight Frank and immigration consultancy Fragomen.

While Indians tended to take their railway cars full of rupees to other English-speaking countries, government restrictions have slowed the flow of Indian millionaire money in recent years, said Liam Bailey, global head of research at Knight Frank

“High net-worth Indians are a big part of the prime market in places like London and that has been slightly undermined in the last two years by the tightening of capital controls (in India) making it much more difficult to export capital,” he said.

China lost the most rich migrants as 76,200 of its millionaires left to settle in places like Hong Kong, Singapore, the U.S. and Australia. After the two billion-person emerging markets, the biggest losers in terms of millionaire migrants were France, Italy, Russia, Switzerland and Indonesia. You wouldn’t think the rich and famous would be so anxious to leave Europe but apparently high taxes on the high earners encouraged many to leave.

In terms of the countries that attracted the most millionaire migrants, the United Kingdom was the leader by a huge margin. Around 114,000 rich folks from elsewhere settled in the quaint island nation during the 10 years through 2014. It was followed by Singapore, which attracted more than 45,000 new, rich citizens, the U.S., which welcomed 42,000 elite expats and Australia, which became home to 22,000 rich newcomers. Finishing up the list of the seven most-popular countries for millionaires to escape to, were Hong Kong, Canada and United Arab Emirates.

Despite the exodus, many of the people Knight Frank has dubbed “ultra-high-net-worth individuals” remained in India.

Last year, Mumbai was home to the most, with 619 UHNWIs, who Knight Frank describes as people worth at least $30 million. Delhi was a distant second with only 157 as wealthy, followed by Bangalore with 75, Chennai with 49, Hyderabad with 39 and Ahmedabad with 20. Kolkata was not mentioned in the report.

via India’s Millionaires Have Been Leaving the Country in Droves – India Real Time – WSJ.

11/03/2015

China’s Risky Mao-Style Focus on the Personal Life of President Xi Jinping – China Real Time Report – WSJ

Chinese media’s relentless focus on the achievements and personal life of President Xi Jinping represents a sharp break with recent leadership practice in China, which has studiously avoided the personality cult that surrounded Mao Zedong. WSJ’s Andrew Browne traveled to Liangjiahe, the cave village in northern China where Mr. Xi was banished during the Cultural Revolution, to answer a question: Is it all about personal aggrandizement? Or is it a media-driven effort by the troubled Communist Party to capitalize on an immensely popular president?

It may be both. Just over two years into his term, three major anthologies of Mr. Xi’s speeches and writings have rolled off the official printing presses. The Chinese characters for “China Dream,” Mr. Xi’s catchphrase for national rejuvenation, are plastered across subway stations, bus stops and billboards. Party newspapers extol the “Spirit of Xi Jinping.”

There’s an irony, of course, in Mr. Xi taking a leaf from Mao, who persecuted his father. But Mr. Xi’s main goal is to save the Party. That means preserving Mao as a symbol of Communist rule.

via China’s Risky Mao-Style Focus on the Personal Life of President Xi Jinping – China Real Time Report – WSJ.

11/03/2015

Nuclear Power Gains Traction in China – China Real Time Report – WSJ

China’s government is breathing life into its nuclear sector with the approval of the country’s first new reactors in more than two years. As the WSJ’s Brian Spegele reports:

The National Development and Reform Commission, China’s top economic-planning agency, approved construction of two reactors in the country’s northeastern Liaoning province by state-owned China General Nuclear Power Corp., according to a statement to the Hong Kong Stock Exchange by the company’s listed unit, CGN Power Co.

China is the world’s biggest nuclear growth market. The country operates 24 reactors currently. A further 25 are under construction, out of 68 globally, according to the IAEA. China doesn’t disclose total spending, but based on the cost of reactors, its buildout represents tens of billions of dollars in potential new business for Chinese and foreign companies over the coming decade.

via Nuclear Power Gains Traction in China – China Real Time Report – WSJ.

11/03/2015

Chinese shoe factory workers strike over benefits | Reuters

About 5,000 workers have gone on strike at a shoe manufacturer in southern China over benefits, two activists and a worker said, marking one of the biggest work-stoppages in the country in months.

The company that owns the factory, Stella International Holdings Ltd, lists Guess? Inc, Michael Kors Holding Ltd, Prada SpA and Burberry Group PLC among its customers.

China’s slowing economy, rising costs and the spread of social media have driven an increase in strikes. Last year, the number of strikes more than doubled to 1,378 from 656 the year before, according to China Labour Bulletin, a Hong Kong-based advocacy group.

The strike at Stella’s Xing Ang factory in the city of Dongguan started on Sunday with workers unhappy about not receiving housing assistance, said Liu Zai, who added she had not received the funds in eight years at the factory.

“We want an explanation. Why haven’t they paid this for so many years?” she said by telephone.

Liu and two activists said all of the factory’s workers, about 5,000 people, were on strike. On Wednesday, most were forced to return to their workplace but were still refusing to work, Liu said.

via Chinese shoe factory workers strike over benefits | Reuters.

11/03/2015

China to raise retirement age as pressure on pension fund rises | Reuters

China’s pension fund will come under tremendous pressure to break even in coming years and as such, the government needs to gradually raise the official retirement age to salvage the finances, a top official said on Tuesday.

Military delegates arrive for the opening of the annual full session of the National People's Congress, the country's parliament, at Tiananmen Square in Beijing March 5, 2015. REUTERS/Carlos Barria

Yin Weimin, minister of human resources and social security, said the government will gradually raise the official retirement age, which is as low as 50 for some female workers, but stressed that any policy changes will be phased in over five years.

He did not say when retirement ages will be raised.

Analysts have long warned about China’s state pension crisis and the severe funding shortage, with some estimating that the cash shortfall could rise to as high as nearly $11 trillion in the next 20 years.

Yin said the finances were not as dire for the moment, but warned about challenges ahead.

“The pension fund faces tremendous pressure in terms of breaking even in future,” he told reporters at a news briefing on the sidelines of the annual meeting of China’s parliament.

The fund’s income stood at 2.3 trillion yuan (243.28 billion pounds) in 2014, exceeding its expenditure of 2 trillion yuan for the year, he said.

But in coming years, the proportion of Chinese over the age of 60 will rise to 39 percent of the population, from 15 percent now, Yin said.

via China to raise retirement age as pressure on pension fund rises | Reuters.

09/03/2015

Kashmir fight adds to hurdles for Modi’s reform push | Reuters

A ruckus over the release from prison of Masarat Alam Bhat, the man who led the most serious revolt in decades against the Indian military in Kashmir, is adding to mounting problems for Prime Minister Narendra Modi as he tries to push economic reform through parliament.

Masarat Alam Bhat (2nd R), a Kashmiri separatist leader, speaks on his mobile phone at his residence in Srinagar March 9, 2015. REUTERS-Danish Ismail

The Lok Sabha was temporarily adjourned on Monday after opposition parties demanded to know why the separatist leader was released at the weekend by Kashmir’s state government, which Modi’s nationalist party supports.

“I am angered and condemn the release, just like other lawmakers,” Modi said in parliament. “I can assure you that my government was not informed about the decision by the state government and neither were we consulted.”

Modi swept to office ten months ago promising rapid economic transformation but disparate opposition parties have united to block his agenda, forcing the government to rely on executive orders called ordinances to pass unpopular policies.

With two weeks remaining of the current session of parliament before a recess, the government needs to win support for ordinances, including those raising the foreign direct investment limit in the insurance sector, or they will expire.

via Kashmir fight adds to hurdles for Modi’s reform push | Reuters.

09/03/2015

China says progress being made on India border talks | Reuters

Progress is being made on drawn-out border talks with India, China’s foreign minister said on Sunday, likening the process to climbing a mountain that becomes harder the closer to the summit you get.

Chinese Foreign Minister Wang Yi gestures as he speaks at a news conference at the annual session of the National People's Congress (NPC), the country's parliament, in Beijing, March 8, 2015. REUTERS/Stringer

The neighboring giants have had numerous rounds of talks over the years without making much apparent process, in a dispute which dates back to a brief border war in 1962.

Chinese Foreign Minister Wang Yi described the problem as one “left over from history”.

“After many years of hard efforts, the border talks continue to make progress, and the dispute has been brought under control,” Wang told reporters on the sidelines of China’s annual meeting of parliament.

“At the moment, the boundary negotiation is in the process of building up small and positive developments,” he said. “It’s like climbing a mountain: the going is tough, and that is only because we are on the way up.”

China lodged an official protest last month when Indian Prime Minister Narendra Modi visited one of the border regions in dispute.

via China says progress being made on India border talks | Reuters.

09/03/2015

China hints Japan to be invited to war memorial parade | Reuters

China will welcome all national leaders to a military parade marking the 70th anniversary of the end of World War Two, the foreign minister said on Sunday, the strongest sign yet that it could invite wartime enemy Japan.

Sino-Japan relations have long been poisoned by what China sees as Japan’s failure to atone for its occupation of parts of the country before and during the war, and it rarely misses an opportunity to remind its people and the world of this.

In the last two years, ties have also deteriorated sharply because of a dispute over a chain of uninhabited islets in the East China Sea, though Chinese and Japanese leaders met last year in Beijing to try to reset relations.

But the remarks by Chinese Foreign Minister Wang Yi come as the two countries plan to hold their first security talks in four years in Tokyo on March 19, an indication of a possible improvement in strained ties.

“Our goal is to remember history, commemorate the martyrs, cherish peace and look to the future,” Wang said of the parade at a briefing on the sidelines of China’s annual meeting of parliament.

“We will extend the invitation to the leaders of all relevant countries and international organizations. No matter who it is, as long as they come in sincerity, we welcome them,” Wang said in response to a question about whether Japanese Prime Minister Shinzo Abe would be invited.

via China hints Japan to be invited to war memorial parade | Reuters.

06/03/2015

PM Narendra Modi heads to Seychelles, Mauritius, Lanka; tour begins on March 10 – The Times of India

Prime Minister Narendra Modi will leave on March 10 on a three-nation visit — Seychelles, Mauritius and Sri Lanka — the external affairs ministry announced on Friday with no mention, however, of the Maldives, which was being considered earlier.

On his first trip abroad in 2015, the Prime Minister will be visiting the three countries from March 10 to 14, the ministry said.

On March 11, in Seychelles, Modi will hold bilateral discussions with President James Alexis Michel to strengthen bilateral maritime ties and enhance development cooperation.

Modi will be in Mauritius on March 11 and 12 where he will have extensive meetings with his Mauritian counterpart, Sir Anerood Jugnauth, to further enhance the special and unique relations.

The Indian Prime Minister will also be the chief guest at Mauritius’s National Day celebrations.

via PM Narendra Modi heads to Seychelles, Mauritius, Lanka; tour begins on March 10 – The Times of India.

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