Archive for April, 2015

08/04/2015

China Aims to Soothe Labor Unrest – China Real Time Report – WSJ

As slowing growth fuels labor unrest in the world’s second-largest economy, China’s top leadership is pushing for greater efforts to foster harmony across its increasingly agitated workforce. As the WSJ’s Chun Han Wong reports;

In a recent directive, top Communist Party and government officials called on party cadres and bureaucrats across the country to “make the construction of harmonious labor relations an urgent task,” to ensure “healthy economic development” and to consolidate the party’s “governing status.”

The policy paper was issued late last month and has circulated widely among Chinese labor scholars, lawyers and activists, who say it signals Beijing’s growing concern that festering labor tensions could soon threaten social stability or even weaken the party’s grip on power.

With China “currently in a period of economic and social transition,” labor relations have become “increasingly pluralistic, labor tensions have entered a period of increased prominence and frequency, and the incidence of labor disputes remains high,” the paper said, according to a copy reviewed by The Wall Street Journal. It cited problems including unpaid wages to China’s legions of migrant workers, growing protests and other issues.

Labor scholars say the paper—titled “the Communist Party Central Committee and the State Council’s opinion on the construction of harmonious labor relations”—marks a rare move by Beijing to formally outline policy priorities for tackling worker unrest. It also comes after Premier Li Keqiang pledged in early March, during an annual policy speech, to curb unpaid wages for migrant workers.

“The government is acknowledging the reality of rising worker unrest and wants to make this a bigger priority,” said Wang Jiangsong, a professor at the China Institute of Industrial Relations in Beijing. “But it also lacks specifics on implementation—it remains to be seen how this would work on the ground.”

via China Aims to Soothe Labor Unrest – China Real Time Report – WSJ.

08/04/2015

Rural Electrification Corp share sale subscribed more than twice | Reuters

A sale of shares in state-run Rural Electrification Corp Ltd(RURL.NS) worth up to $250 million has been subscribed nearly two-and-a-half times, at an indicative price of over 316 rupees each, exchange data showed.

An employee from the electricity board works on newly installed overhead power cables in Allahabad December 7, 2012. REUTERS/Jitendra Prakash/Files

The share sale is part of New Delhi‘s plan to raise about $11.1 billion through asset sales during the current financial year ending March 2016. The asset sales are crucial to meet a fiscal deficit target of 3.9 percent of GDP for 2015/16 financial year.

The government has missed its divestment target for the past five years. A shortfall in receipts from stake sales and taxes has led to cuts in public spending of about $48 billion in the past three years, slowing economic recovery.

“Given the positive response and sentiment from both global and domestic investors there should be good appetite for quality issues if valuations are attractive,” said Navneet Munot, chief investment officer of SBI Funds Management.

Greater faith in the India’s political leadership and reform process should help government’s divestment drive, he added.

Overseas and domestic portfolio investor demand for REC’s shares exceeded supply, in a vote of confidence of recovery in power starved Asia’s third-largest economy.

via Rural Electrification Corp share sale subscribed more than twice | Reuters.

08/04/2015

Cabinet amends real estate bill to stamp out illegal practices | Reuters

The cabinet has amended a bill to regulate the real estate sector, protect home buyers and curb undeclared “black money” in property markets that costs the exchequer billions of dollars in lost taxable income.

Labourers work at the construction site of a residential building in Mumbai's central financial district April 6, 2015. REUTERS/Danish Siddiqui

The decision by Prime Minister Narendra Modi‘s government to amend the bill, which was submitted by the previous government in 2013 but not passed by the upper house, aims to boost investor confidence and stamp out illegal practices.

The new rules, applicable to residential and commercial developments, will make it mandatory for all projects and brokers to be registered with the real estate regulator who will oversee transactions and settle disputes.

“The bill seeks to ensure accountability and transparency, which will in turn enable the real estate sector to access capital and financial markets essential for its long-term growth,” the government said in a statement on Tuesday.

During recent years sluggish economic growth and delays in getting approvals stalled several real estate projects, leaving buyers waiting for their homes and developers holding high debt.

“This will be a game-changer for the sector,” Rajeev Talwar, executive director at DLF Ltd, India’s top real estate developer.

via Cabinet amends real estate bill to stamp out illegal practices | Reuters.

08/04/2015

Lapsed tenders hurt Modi’s ‘Make in India’ defence industry push | Reuters

Indian firms have spurned some $15 billion worth of government tenders to make a range of weapons since 2013, defence ministry officials say, in a blow to Prime Minister Narendra Modi and his drive to wean the country off imported arms.

Executives cited unrealistic quality demands from a military short of planes, tanks and guns as a key reason for their reluctance to bid for projects. Complicating things further, the military doesn’t want weapons from Indian firms with no track record in defence manufacturing, experts said.

Irked by India’s status as the world’s biggest arms importer, Modi wants to build an advanced defence industry but almost a year into his “Make in India” campaign, which aims to turn the country into a manufacturing powerhouse, not one large domestic weapons project has been awarded.

Tenders for anything from air defence guns to surface-to-air missiles to transport planes have lapsed, defence ministry officials told Reuters. The tenders total around $15 billion according to a Reuters compilation of offers since early 2013.

via Lapsed tenders hurt Modi’s ‘Make in India’ defence industry push | Reuters.

08/04/2015

Chinese citizens sue government over transparency on Monsanto herbicide | Reuters

Three Chinese citizens are taking China’s Ministry of Agriculture to court in a bid to make public a toxicology report supporting the approval of Monsanto‘s popular weedkiller, Roundup, 27 years ago.

The case, a rare example of a lawsuit by private citizens against the Chinese government, comes amid renewed attention on glyphosate, the key ingredient in Roundup, after a controversial report by a World Health Organization group last month found it to be “probably carcinogenic to humans” – a claim denied by Monsanto.

It also underlines the deep-seated fears held by some Chinese over genetically modified food.

Beijing No.3 Intermediate People’s Court had accepted the case but a date for a hearing has not yet been set, an official at the court told Reuters.

Roundup is widely used on crops like soybeans that are genetically modified to resist its impact, allowing farmers to kill weeds without killing their crops. China imports about 65 percent of the world’s traded soybeans.

“The government is taking actions to deal with other food safety issues but it is not dealing with the GMO problem,” said Yang Xiaolu, 62, one of the plaintiffs bringing the case and a long-time GMO activist.

Monsanto officials have said glyphosate has been proven safe for decades, and the company has demanded a retraction from the WHO over its recent report.

Yang and the other plaintiffs, Li Xiangzhen and Tian Xiangping, are demanding in the lawsuit that the agriculture ministry make public the animal test that the ministry cited as evidence to support its approval of Roundup in 1988.

The test report by U.S.-based Younger Laboratories in 1985 was provided by Monsanto to the ministry, according to the plaintiffs, who argue that the ministry should allow the public to know how it determined that Roundup was safe.

The ministry has previously declined to show the plaintiffs the report, arguing that it would infringe on Monsanto’s commercial secrets, said Yang.

The agriculture ministry did not respond to a fax seeking comment.

The lawsuit comes at a time when the government is trying to foster positive public opinion of GMO food crops, currently banned for cultivation, but seen as crucial to future food security.

via Chinese citizens sue government over transparency on Monsanto herbicide | Reuters.

08/04/2015

China to open 10 new air corridors to ease congestion -China Daily | Reuters

China plans to open 10 new air corridors to help ease chronic air traffic congestion and address the problem of frequent flight delays, the official China Daily said on Wednesday, citing a senior aviation official.

China Eastern Airlines planes are seen on the tarmac at Hongqiao International Airport in Shanghai, in this July 29, 2014 file photo. REUTERS/Aly Song

“Over the past 10 years, the number of flights using China’s airspace has been increasing 10 percent year-on-year, but our airspace that can be used by civilian airlines is only one-third of that in the United States,”, Chen Jinjun, director of the air traffic management division of the Civil Aviation Administration of China (CAAC), was quoted as saying.

The new routes will allow aircraft to travel to and return from a destination along two separate lanes, Chen said. On exsting routes they take the same lane at different altitudes.

Chen did not provide a timetable for the initiative or the location of the new routes. Chen and CAAC’s air traffic control officials were not immediately available for comment.

Last week, the CAAC opened the GuangzhouLanzhou air corridor, which can handle more than 400 flights every day and covers 32 airports in six provinces.

China has been scrambling to build airports across the country to keep pace with its fast-growing civil aviation market, but its military-controlled airspace has made flight delays the norm.

via China to open 10 new air corridors to ease congestion -China Daily | Reuters.

08/04/2015

China Life, Ping An take majority stake in $500 million Boston property project | Reuters

China’s two biggest insurers are funding the majority of a $500 million commercial real estate project in the United States, a person with knowledge of the deal said, in the latest offshore property investment by China’s cash-rich financial institutions.

China Life Insurance Co Ltd (601628.SS)(2628.HK) and Ping An Insurance Group Co of China Ltd (601318.SS)(2318.HK) have partnered New York developer Tishman Speyer Properties LP in a deal that will see each party invest about $167 million in the first phase redevelopment of Boston‘s Pier 4, the person said.

Tishman Speyer declined to provide immediate comment, while China Life declined to comment and Ping An could not be reached. The Wall Street Journal reported the tie-up early on Wednesday.

Chinese insurers have been on a shopping spree over the past three years since a ban on foreign property investment was lifted. They are permitted to invest abroad up to 15 percent of their roughly 10.5 trillion yuan ($1.69 trillion) in assets.

China Life and Ping An have invested in property in London, and Boston would be their first project in the United States.

via China Life, Ping An take majority stake in $500 million Boston property project | Reuters.

08/04/2015

Learning Mandarin in the tundra – Russia invites China into oil business | Reuters

Russia‘s freezing north has never been the most welcoming place for foreign travelers, and its onshore oil riches have always been state secrets. But when the order comes from the Kremlin to open up, people obey.

Pipelines to be laid to transport oil to Vankor are seen at the Rosneft company owned Suzunskoye oil field, north from the Russian Siberian city of Krasnoyarsk, March 26, 2015.  REUTERS/Sergei Karpukhin

Last September, President Vladimir Putin, who has been seeking new markets in Asia for Russian energy exports to replace traditional customers in Europe, announced that he would welcome Chinese investment in Vankor, a vast new oil field in remote eastern Siberia owned by state firm Rosneft.

Since then, delegations from both China and India have been flown out to visit the field in the remote tundra.

Some of the workers, who spend four weeks at a time at the isolated station – where temperatures can fall as low as minus 60 Celcius (minus 76 Fahrenheit) – have duly taken up Mandarin.

“No problem. We will work with the Chinese workers if need be,” said Alexei Zyryanov, deputy head of an oil and gas production unit.

All of Vankor’s output of 440,000 barrels per day of crude is already shipped east, via the East Siberia-Pacific Ocean pipeline, which includes a spur feeding China’s northeast.

But a proposed Chinese investment in a stake in the project would go far further than Moscow has ever gone before to luring Beijing into its hydrocarbon industry.

Rarely has Moscow considered offering an ownership stake in such a big strategic onshore deposit to outsiders, despite decades of interest from Western majors. The offer is the more remarkable for being made to China, a rival for decades with which Russia nearly went to war in the 1960s over a border dispute.

Rosneft confirmed that it has reached a draft agreement to sell a 10 percent stake in Vankor to China.

via Learning Mandarin in the tundra – Russia invites China into oil business | Reuters.

07/04/2015

India launches air quality index to give pollution information – BBC News

India has launched its first air quality index, to provide real time information about pollution levels.

The index, announced by Prime Minister Narendra Modi, will initially monitor air quality in 10 cities.

Last year the Environmental Preference Index ranked India 174 out of 178 countries for air quality.

The rising and health-endangering pollution has been mainly blamed on a huge increase in vehicles, particularly diesel-driven cars, on Indian roads.

Polluting industries, open burning of refuse and leaves, massive quantities of construction waste and substantial loss of forests have also led to high pollution levels in cities.

A World Health Organization (WHO) survey last year found that 13 of the most polluted 20 cities in the world were in India. The capital, Delhi, was the most polluted city in the world, the survey said.

It is a leading cause of premature death in India, with about 620,000 people dying every year from pollution-related diseases, says the WHO.

On Monday, Mr Modi said India “has to take the lead in guiding the world on thinking of ways to combat climate change”.

via India launches air quality index to give pollution information – BBC News.

07/04/2015

Zhou Yongkang Charges Come As Xi Jinping’s Anti-Corruption Campaign Hits Snags – China Real Time Report – WSJ

Former Chinese security czar Zhou Yongkang has now been formally charged with bribery and abuse of power, in what appears to be yet another triumph in President Xi Jinping’s strategy to go after “tigers and flies”— in Chinese political parlance, both senior leaders and junior officials.

By all accounts, the hunting and the swatting have been a major success for Xi. The effort appears to be both popular and effective. For Xi, it has the added benefit of consolidating his political command.

That’s the good news.

But Zhou’s prosecution is coming at an important moment for the anticorruption campaign. A number of signs suggest that Xi’s strategy is beginning to show its age. Specifically, it appears Xi and his supporters are having an increasingly difficult time selling the idea that Beijing’s current approach is successfully rooting out the corruption that too often plagues Chinese politics.

First, there’s the fall-off in high-profile news coverage of cadres caught being bad. China’s state-controlled media still runs stories of officials who are being investigated for possible criminal conduct, as with allegations of bribery in the Chongqing city works department and claims of graft committed by a deputy director at the main television network in Anhui province.  But the focus in recent weeks has been on the identification and extradition of allegedly corrupt Chinese officials who have fled overseas. By broadcasting about those who are hiding abroad, Beijing is trying to pivot away from the persistence of graft at home. Indeed, the more cadres that are caught in-country, the more intractable the problem of corruption has to appear.

Then there’s the growing coverage in China’s state media of “maintaining political discipline”—code words for both party unity and getting cadres to conduct themselves according to rules and regulations set by the leadership.  That emphasis underscores the alternative view of some Communist party members that Beijing should rethink the way it trains and promotes cadres, rather than constantly supervising and occasionally punishing them. This conversation is taking place across major party publications, illustrating indecision in some quarters about which weapons the government should be wielding in the war on graft.

Xi’s supporters have also been forced on the defensive by the argument that the anticorruption campaign is having a deleterious effect on an already slowing national economy.  A recent essay that appeared in the Communist party’s flagship newspaper People’s Daily and various affiliated outlets argued that this “misconception needed clarification,” and went on to insist that “the anticorruption effort isn’t an obstacle but a way to smooth the path of economic development by removing inefficiencies and thereby provide positive energy,” especially in the realm of public opinion.

Even anticorruption czar Wang Qishan has had to come out in the past few days to defend the effort to go after “tigers and flies,” urging more grassroots efforts to identify corrupt officials and asking for patience from the public and fellow party members because, he insisted, “changing the political ethos is not achieved overnight.”

If Xi and his allies were in complete control of the anticorruption narrative, there’d be little need to have to counter criticism of Beijing’s current strategy.

It isn’t clear how this announcement about Zhou will end up playing out in the party ranks. If the formal charges against Zhou help to revitalize Xi’s anticorruption campaign, the strategy of striking hard will reinforce the sense that Xi is still on the right path. But to some cadres who want more accountability and party reform instead of political revenge, it may read like old news.

via Zhou Yongkang Charges Come As Xi Jinping’s Anti-Corruption Campaign Hits Snags – China Real Time Report – WSJ.

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