06/02/2014

Why China’s Leaders Are Finding It Harder to Govern | Foreign Affairs

China had three revolutions in the twentieth century. The first was the 1911 collapse of the Qing dynasty, and with it, the country’s traditional system of governance. After a protracted period of strife came the second revolution, in 1949, when Mao Zedong and his Communist Party won the Chinese Civil War and inaugurated the People’s Republic of China; Mao’s violent and erratic exercise of power ended only with his death, in 1976.

Laborers clean a statue of Mao, September 24, 2013.

The third revolution is ongoing, and so far, its results have been much more positive. It began in mid-1977 with the ascension of Deng Xiaoping, who kicked off a decades-long era of unprecedented reform that transformed China’s hived-off economy into a global pacesetter, lifting hundreds of millions of Chinese out of poverty and unleashing a massive migration to cities. This revolution has continued through the tenures of Deng’s successors, Jiang Zemin, Hu Jintao, and Xi Jinping.

Of course, the revolution that began with Deng has not been revolutionary in one important sense: the Chinese Communist Party (CCP) has maintained its monopoly on political power. Yet the cliché that China has experienced economic reform but not political reform in the years since 1977 obscures an important truth: that political reform, as one Chinese politician told me confidentially in 2002, has “taken place quietly and out of view.”

The fact is that China’s central government operates today in an environment fundamentally different, in three key ways, from the one that existed at the beginning of Deng’s tenure. First, individual Chinese leaders have become progressively weaker in relation to both one another and the rest of society. Second, Chinese society, as well as the economy and the bureaucracy, has fractured, multiplying the number of constituencies China’s leaders must respond to, or at least manage. Third, China’s leadership must now confront a population with more resources, in terms of money, talent, and information, than ever before.

Governing China has become even more difficult than it was for Deng Xiaoping.

For all these reasons, governing China has become even more difficult than it was for Deng. Beijing has reacted to these shifts by incorporating public opinion into its policymaking, while still keeping the basic political structures in place. Chinese leaders are mistaken, however, if they think that they can maintain political and social stability indefinitely without dramatically reforming the country’s system of governance. A China characterized by a weaker state and a stronger civil society requires a considerably different political structure. It demands a far stronger commitment to the rule of law, with more reliable mechanisms — such as courts and legislatures — for resolving conflicts, accommodating various interests, and distributing resources. It also needs better government regulation, transparency, and accountability. Absent such developments, China will be in for more political turmoil in the future than it has experienced in the last four-plus decades. The aftershocks would no doubt be felt by China’s neighbors and the wider world, given China’s growing global reach. China’s past reforms have created new circumstances to which its leaders must quickly adapt. Reform is like riding a bicycle: either you keep moving forward or you fall off.

via Why China’s Leaders Are Finding It Harder to Govern | Foreign Affairs.

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05/02/2014

China’s New Year market booms, luxury gift sales down – Xinhua | English.news.cn

China\’s consumer market boomed during the first days of the Lunar New Year holiday despite falling luxury gift sales, according to the Ministry of Commerce (MOC) on Wednesday.

In the first four days of the week-long Spring Festival holiday, the most important traditional holiday in China, consumer market sales expanded steadily and quickly, the MOC said in a statement on its website.

Without giving nationwide figures, the MOC said consumer market sales in the cities of Beijing and Chengdu had risen by 9.2 percent and 13 percent year on year respectively. According to the MOC, sales in Shaanxi, Anhui and Henan provinces grew by 14.3 percent, 11.2 percent and 10.4 percent respectively.

Online business and the catering, tourism and entertainment sectors have also prospered during the holiday, according to the MOC.

China\’s consumer market has boomed in spite of falling sales of luxury goods purchased as new year gifts, according to the MOC.

Sales of luxury gifts such as expensive alcoholic beverages and rare seafood, which are sometimes sent as gifts to officials during the holiday, have fallen sharply. Experts have viewed the drop as a direct result of the central government\’s anti-graft and frugality campaign.

via China’s New Year market booms, luxury gift sales down – Xinhua | English.news.cn.

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05/02/2014

Modi takes on Third Front parties – The Hindu

“Time has come to bid farewell to this idea of Third Front from Indian politics forever,” the BJP Prime Ministerial candidate told a party rally in Kolkata.

BJP Prime Ministerial candidate Narendra Modi addresses a party rally at Brigade Parade grounds in Kolkata on Wednesday. Photo: Sushanta Patronobish

Making his debut in West Bengal in the campaign for the 2014 Lok Sabha polls, Narendra Modi on Wednesday launched a blistering attack on the Left parties and the Third Front, saying they will make India a “third-rate” country.

Trying to strike a chord with the Bengalis, he accused the Congress of denying Pranab Mukherjee the Prime Minister’s chair in 2004 even though he “deserved” it.

Mr. Modi was severe in his criticism of the Left parties and their partners, saying they have destroyed the eastern region of the country by their rule while western India has shown progress because they had never ruled that region.

“These people (Left and its associates) who do politics in the name of secularism practice the politics of vote-bank by misleading Muslims. They destroyed the eastern region. You must banish them from the Indian politics forever,” he said in a speech interspersed with some sentences in Bengali.

via Modi takes on Third Front parties – The Hindu.

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05/02/2014

Britain says it had role in 1984 India temple raid – Businessweek

Britain has acknowledged advising the Indian government ahead of its 1984 raid on the Golden Temple in Amritsar, an admission that links the U.K. — India\’s former colonial master — with one of the bloodiest episodes in the subcontinent\’s recent history.

Hamandir Sahib or Darbar Sahib (also known as ...

Hamandir Sahib or Darbar Sahib (also known as the Golden Temple). The holiest shrine in Sikhism located in the city of Amritsar, India. (Photo credit: Wikipedia)

Foreign Secretary William Hague told Parliament on Tuesday that British military advice was \”purely advisory\” and had only a \”limited impact\” on the operation.

\”A single U.K. military officer provided some advice. But critically, this advice was not followed, and it was a one-off,\” Prime Minister David Cameron said in a video message to the Sikh community in Britain.

Still, the acknowledgement of any link to the deadly attack that killed hundreds if not thousands at Sikhs\’ holy temple will be disturbing to many.

The storming of the Golden Temple in Amritsar was one of the most contentious episodes in the Indian government\’s battle against Sikh separatists, whose violent campaign for an independent homeland in the Punjab region smoldered into the 1970s and 80s.

\”It is awkward,\” said Sumit Ganguly, an Indiana University professor and the co-author of a book on Amritsar. \”The evidence that the British government might have provided some assistance in terms of the planning of this event is once again going to stoke old memories, memories that had long been buried.\”

via Britain says it had role in 1984 India temple raid – Businessweek.

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05/02/2014

China’s Oil Pipeline Through Myanmar Brings Energy—and Resentment – Businessweek

Until recently, 80 percent of China’s oil and gas imports were transported by ship through a narrow waterway separating Indonesia and Malaysia, known as the Strait of Malacca. The possibility that hostile forces could one day block that crucial passageway and starve the country of energy has long made China’s leaders nervous.

Oil and gas pipeline

Oil and gas pipeline (Photo credit: Wikipedia)

In 2009, two state-owned energy giants inked a $2.5 billion agreement to loosen the pinch: China National Petroleum and Myanmar Oil & Gas Enterprise agreed to lay down more than 500 miles of oil and gas pipelines from Myanmar’s western coast to China’s southwestern Yunnan province. When the oil pipeline goes online later this year, tankers carrying crude from the Middle East and Africa will be able to dock at Myanmar’s port of Kyaukpyu and send as many as 440,000 barrels of oil a day overland to China. Industry news service Platts (MHFI) reports that the oil pipeline is 75 percent complete and should be operational by June.

A parallel gas pipeline went into operation last July, capable of transporting as much as 12 billion cubic meters of natural gas per year across Myanmar to China. “China’s piped gas is mainly imported from areas around the Malacca Strait,” Lin Boqiang, a professor with the China Center for Energy Economics Research at Xiamen University, told the state-run Global Times. “Now we have one more pipeline from the land instead of the seabed, which will decrease” China’s energy vulnerability.

via China’s Oil Pipeline Through Myanmar Brings Energy—and Resentment – Businessweek.

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05/02/2014

Scooter boom: Young women find gusto on India’s roads | Reuters

\’Plush pink\’ and \’burgundy bliss\’ scooters are the new buzz on India\’s roads, even as the rest of the autos market is sputtering amid an economic slowdown.

Honda Jazz scooter

Honda Jazz scooter (Photo credit: Wikipedia)

The scooters go by names such as \”Pleasure\”, but marketing aside, this new fleet of women-friendly bikes reflects a deeper change in attitude and society in India, and has captured the attention of foreign manufacturers such as Japan\’s Honda Motor Co Ltd and Yamaha Motor.

Young, well-heeled and independent-minded women, who are also conscious of the perils of using public transport, are helping to propel a boom in sales of scooters.

The rising popularity of the scooter comes at a time of nationwide protests against the prevalence of rape and sexual assault in India. In one case, a young female student died after she was gang-raped on a bus in Delhi.

Weighing convenience as well as safety, some young women, and their parents, see the scooter as the best solution for commuting to work, going to college or simply going out to meet friends.

Scooter sales were up nearly 20 percent in the nine months through December, according to Society of Indian Automobile Manufacturers data, easily outpacing the 2.5 percent sales growth of full-size motorcycles. Sales of cars, trucks and buses all fell.

Still, scooters accounted for only 20 percent of India\’s 14 million-unit two-wheeler market in the last financial year. Two wheelers are the most common mode of transport for millions of middle-class Indians.

Both Honda and Yamaha have identified the growth potential in scooters, and are building models designed for women and adding new plants to keep up with demand.

\”College-going girls and working women are really creating this demand-wave in the scooter segment,\” said Abdul Majeed, a partner at PricewaterhouseCoopers India.

\”Housewives are also using scooters to drop (off) kids and buy vegetables,\” Majeed said, adding that he expects strong sales growth to continue and for companies to launch more scooters geared towards women.

Yamaha launched its first Indian scooter designed for women, the Ray, in 2012. The bike sells for around about 47,000 rupees ($750) and comes in colors such as \’starry white\’, \’plush pink\’ and \’burgundy bliss\’. About 70 percent of the women who buy it for themselves are under 30, the company says.

\”They don\’t want to trouble their parents or brothers. They want personal mobility,\” said Roy Kurian, vice president of marketing and sales at Yamaha in India. \”If a guy had to ride then he would have gone for a motorcycle,\” he said.

via Scooter boom: Young women find gusto on India’s roads | Reuters.

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04/02/2014

Microsoft Names Satya Nadella as CEO – India Real Time – WSJ

Microsoft Corp. has named company veteran Satya Nadella as its next chief executive, an appointment that comes as the software giant faces competition across all fronts of its business.

The company also said founder Bill Gates, who previously was chairman, moves to a new role on the board as technology adviser and will devote more time to the company, supporting Mr. Nadella in shaping technology and product direction. John Thompson, who was formerly the lead director, will become chairman.

Mr. Nadella’s naming to the post, effective immediately, makes him the third CEO since the Redmond, Wash., company was founded in 1975. He succeeds Steve Ballmer, who in August announced his plans to retire. Mr. Ballmer was originally handed the reins in 2000 when founder and college friend Bill Gates stepped aside after 25 years.

The appointment of Mr. Nadella, who is 46 years old and leads the Microsoft division that makes technology to run corporate computer servers and other back-end technology, will be considered a safe choice. He has signaled a desire for continuity, telling directors that, as CEO, he hopes to lean on Mr. Gates, according to several people familiar with the matter. Little in Mr. Nadella’s public history at Microsoft suggests he will break from the company’s pattern as a fast follower, rather than a trend setter.

via Microsoft Names Satya Nadella as CEO – India Real Time – WSJ.

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04/02/2014

Global carmakers see small sedans as next hot market in India | Reuters

F.N) and Hyundai Motor Co (005380.KS) will showcase compact sedans at India\’s largest auto show this week, targeting what they think could be the next hot market in a country long dominated by ultra-cheap hatchbacks.

A Ford 2015 F-150 truck is seen outside the New York Stock Exchange in the Manhattan borough of New York, January 13, 2014. REUTERS/Lucas Jackson

Global carmakers are still banking on emerging economies including India, the world\’s sixth biggest auto market by volume, to drive long-term growth despite a recent slowing in demand. Industry-wide sales in India are headed for a second straight annual decline in the fiscal year that ends in March.

Hyundai, the biggest foreign carmaker in India, will next month roll out its Xcent compact sedan, which is under four meters and thus taxed less heavily than longer cars in India, executives said at the car\’s global unveiling on Tuesday.

The car will be on display at this week\’s auto show in the outskirts of New Delhi, which opens to the public on Friday.

via Global carmakers see small sedans as next hot market in India | Reuters.

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04/02/2014

China warns officials not to cover up corruption | Reuters

Authorities in China have warned they will go after officials who cover up corruption, state media reported on Tuesday, in the government\’s latest effort to curb widespread graft.

Policemen guard the entrance of the Jinan Intermediate People's Court where the trial of disgraced Chinese politician Bo Xilai will be held, in Jinan, Shandong province September 22, 2013. REUTERS/Aly Song

The ruling Communist Party has shown no sign of wanting to set up an independent body to fight graft, however, and has arrested at least 20 activists who have pushed for officials to reveal their wealth, convicting two and sentencing a third activist to a jail term.

The Central Commission for Discipline Inspection, an arm of China\’s anti-corruption watchdog, said investigators should probe the perpetrators of graft, besides supervising members of the ruling Communist Party and local investigators themselves.

\”Officials must investigate those responsible, as well as relevant leaders\’ involvement, including within party committees and discipline inspection committees,\” said a research unit that is part of the disciplinary body, according to official news agency Xinhua.

\”(They) must make clear whether a leading official took the initiative to discover and resolutely investigate or … was derelict in duty or even concealed discipline problems or shielded (violators),\” it added.

In some cases, this type of corruption was not revealed until officials were promoted, which \”severely damages public confidence in the party,\” it said.

But it was not immediately clear if the comments represented policy or just guidelines, or what punishment awaited officials found guilty of such shortcomings.

via China warns officials not to cover up corruption | Reuters.

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04/02/2014

BBC News – China cancels Thailand rice deal amid probe

Thailand has announced that a contract to sell more than a million tonnes of rice to China has been cancelled.

File photo: Rice stockpile in Thailand

The Ministry of Commerce said the Chinese government pulled out of the the deal to buy 1.2 million tonnes of rice because of an ongoing probe.

Thailand\’s Anti-Corruption Commission is investigating PM Yingluck Shinawatra over a rice purchase policy.

The policy has been a factor in the anti-government protests that have sparked Thailand\’s political crisis.

The deal with China would have been the first stage of what the Thai government was hoping to be a larger shipment of of rice this year.

\”China lacks confidence to do business with us after the National Anti-Corruption Commission started investigations into the transparency of rice deals between Thailand and China,\” Thai Commerce Minister Niwatthamrong Bunsongphaisan said, announcing the cancellation.

via BBC News – China cancels Thailand rice deal amid probe.

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