Archive for ‘China alert’

21/05/2014

Is China’s Housing Bubble Beginning to Burst? – Businessweek

Earlier this month, financial analysts from Japan-based Nomura Group (NMR) issued a grim report on China’s housing market: “To us, it is no longer a question of ‘if’ but rather ‘how severe’ the property market correction will be,” the report read.

Residential apartment buildings under construction in Qingzhou city, in east China’s Shandong province

Nomura—which has historically been bearish on China, as the Wall Street Journal observes—predicted that a downturn in the housing market, caused by oversupply and shrinking developer financing, could sharply impact China’s economy, perhaps even driving GDP growth to less than 6 percent in 2014.

China’s economy is vulnerable because property investment accounts for anywhere from 16 percent to 20 percent of gross domestic product, according to varying analyses.

via Is China’s Housing Bubble Beginning to Burst? – Businessweek.

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21/05/2014

Does China Pose a Threat to Global Food Security? It Says No – China Real Time Report – WSJ

Twenty years ago, environmental advocate Lester Brown got in hot water with Beijing for writing a book called “Who Will Feed China?”

China was displeased with the suggestion in his book that the country’s growing population and water scarcity could drastically burden the world’s food resources. Beijing publicly criticized the author – then began a series of reforms including improving farming techniques and adopting a national policy of self-sufficiency in grain consumption that vindicated Mr. Brown’s arguments. It paved the way for a gradual rapprochement with the American, now 80.

Détente is over.

On Wednesday, China’s agriculture ministry issued a statement again criticizing Mr. Brown. It took umbrage with an essay he wrote titled “Can the World Feed China?” a riff on his earlier book. The essay details Mr. Brown’s concerns that rising domestic pressures on food consumption could result in spiking food prices and political unrest as China joins in a global “scramble for food.”

It isn’t clear why Mr. Brown was singled out for criticism; many analysts have in one form or other also articulated these trends, though arguably not as directly or pungently. But the move underscores how increasingly sensitive China is to the growing impression that it can’t feed itself and that its acquisitions of global food assets are posing a risk to food security for the rest of the world. China has been keen in recent years to head off any impression that it’s on a global grab for natural resources.

Mr. Brown wasn’t immediately available for comment.

The government is unhappy with the notion it’s being blamed for sharpening global competition for food. Mr. Brown’s essay said China’s rising grain imports  mean “it is competing directly with scores of other grain-importing countries.” He also warned that China’s purchase last year of U.S. pork producer Smithfield Foods “was really a pork security move.” So too, he said, was China’s deal with Ukraine to provide $3 billion in loans in exchange for corn. “Such moves by China exemplify the new geopolitics of food scarcity that affects us all,” he wrote.

Not likely, ministry spokesman Bi Meijia said in the government’s statement. Mr. Bi said 97% of China’s grain consumption comes from its own output, not imports.

“On the issue of food security, China not only does not pose a threat to the world, but makes a contribution to global food security,” he said. China intends to continue its existing policies, he said.

Mr. Bi said rising grain imports aren’t due to domestic shortages, but because global prices are lower than domestic prices. The ministry also pointed out that imports accounted for just 2.6% of domestic grain production volume in 2013, and just 4% of global output.

via Does China Pose a Threat to Global Food Security? It Says No – China Real Time Report – WSJ.

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19/05/2014

‘No Gene for Invasion in Chinese People’s Blood,’ Says Xi, Amid Sino-Vietnam Tensions – Businessweek

As tensions grow between China and its neighbors, some words of reassurance are certainly welcome. Still, it’s questionable just how calming Xi Jinping’s recent ones were.

Ethnic Chinese refugees from Vietnam are confined to a dockyard camp in Hong Kong on Nov. 1, 1979

China does not accept that “might is right,” said China’s president and party secretary, speaking yesterday at a commemoration ceremony in Beijing for the 60th anniversary of the Chinese People’s Association for Friendship with Foreign Countries. “There is no gene for invasion in Chinese people’s blood,” Xi continued, the official Xinhua News Agency reported on May 16.

Speaking of invasions, that is what China did when it sent troops into northern Vietnam in 1979, a foray that sparked a short-lived but bloody war between the two countries. China and Vietnam have a history of “collaboration and cordiality, but also tumult and hostility” going back as far as the first century B.C., wrote Dennis McCornac, a professor at Loyola University Maryland, in 2011.

via ‘No Gene for Invasion in Chinese People’s Blood,’ Says Xi, Amid Sino-Vietnam Tensions – Businessweek.

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16/05/2014

Islamic leaders join efforts against extremism – China – Chinadaily.com.cn

China’s top Islamic leaders urged the nation’s Muslims to resist religious extremism and oppose to terrorism after a number of violent attacks in the Xinjiang Uygur autonomous region in March and April.

An SVG map of China with the Xinjiang autonomo...

An SVG map of China with the Xinjiang autonomous region highlighted Legend: Image:China map legend.png The orange area is Aksai Chin, a part of Xinjiang which is claimed by India. (Photo credit: Wikipedia)

Around 80 religious leaders and scholars discussed Islamic doctrine by quoting the Quran and the teachings of the Prophet Muhammad on Wednesday and Thursday in Urumqi, the region’s capital. On Thursday, Islamic leaders in China passed a proposal calling on all Muslims in the country to regulate their behavior, resist religious extremism and improve their moral outlook.

Abulitif Abdureyim, director of the Xinjiang Islamic Association, said governments at all levels in the region are resisiting religious extremism.

“The attackers who carried out the terrorist activities cannot go to heaven because they have violated the sayings in the Quran,” he said.

Wang Yujie, a professor of religious studies at Renmin University of China, said separatist forces are the main source of terrorism in Xinjiang.

In recent years, China has seen a number of violent attacks on police, government organs and civilians. Most of the attacks have taken place in Xinjiang.

A national security blue paper said on May 6 that religious extremism was the major reason for 10 violent terrorist attacks last year.

via Islamic leaders join efforts against extremism – China – Chinadaily.com.cn.

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16/05/2014

China to build new hi-tech power network to help fight pollution | South China Morning Post

China will build the world’s largest high-power electricity transmission network as part of the country’s efforts to battle smog and pollution.

7e99a2afad02bc229b6b2a9780156981.jpg

The State Grid Corporation of China – the world’s largest state-owned utilities company – said on its website that the central government would soon approve plans for the construction of 12 power lines connecting the energy-rich interior with heavily industrialised coastal areas. The initial investment is estimated to be at least 210 billion yuan (HK$264 billion).

The 12 projects include eight ultra-high-voltage (UHV) lines, which offer distinct advantages over conventional power lines by transmitting electricity over significantly longer distances with far greater efficiency. Energy losses from UHV power lines are five to six times lower than the conventional ones, studies show.

Despite some concerns about the project – especially the vulnerability of such a broad network to system-wide failures – the emerging technology is being hailed as an ultimately far cleaner, more efficient way to deliver electricity across the country.

State Grid claims UHV power lines can reduce the density of PM2.5 smog particles, which are considered most dangerous to human health, by 4-5 per cent in central and eastern regions and cut coal consumption by 200 million tonnes a year.

via China to build new hi-tech power network to help fight pollution | South China Morning Post.

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16/05/2014

More than 1,000 Hongkongers cancel Vietnam trips in wake of rioting | South China Morning Post

More than 1,000 Hongkongers have cancelled their trips to Vietnam as the anti-Chinese riots show no sign of easing in the country.

vietnam-protest-noon-0516-net.jpg

The Hong Kong tourists had joined 45 tour groups that would have been departing between today and May 26.

Joseph Tung Yao-chung, executive director of Hong Kong’s Travel Industry Council, said today that tour operators believed risks might grow, although sightseeing spots on their itineraries were currently safe.

Chinese nationals cross from Vietnam into Cambodia at a checkpoint in Binh Duong province. Photo: Reuters

He said 14 tour groups with 350 Hongkongers are now in Vietnam and they are asked to report to the council of their situation every day. There has been no report of any trouble so far, said Tung, and the tour groups are expected to return to the city by next Tuesday.

Violence against Chinese companies in Vietnam turned deadly yesterday, with the Hong Kong government upgrading its travel alert from amber to red.

Xinhua reported that at least two Chinese had been killed in riots over the establishment of an oil rig in the disputed Paracel Islands two weeks ago.

Another 10 Chinese were said by Xinhua to be missing and more than 100 hospitalised.

via More than 1,000 Hongkongers cancel Vietnam trips in wake of rioting | South China Morning Post.

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14/05/2014

How Small U.S. Businesses Can Court Customers in China – Businessweek

Question: What are Chinese consumers looking for in an online shopping experience? What would you describe as the main reason websites aimed at Chinese consumers fail?

How Small U.S. Businesses Can Court Customers in China

Answer: News about Chinese tech companies making their way to Wall Street has been raising awareness about the vast potential Chinese market for U.S. small businesses. China is definitely interested in American-made goods. Here are some steps you can take to make sure your website is appealing to these new customers.

First, as I discussed recently, you need a website in Chinese. Make sure the site is created by a native Mandarin speaker who can convey the culture of your brand without a clunky verbatim translation that will fall flat, says James Chan, president of Asia Marketing & Management.

The main obstacle to selling online in China is the pervasive fear of being cheated or of buying a pirated product. “You need to find the best way of making a Chinese customer in front of a computer comfortable with the fact that you really have a brick-and-mortar company on American soil,” Chan says.

Pictures are a must: an exterior shot of your office or shop, a map showing your location, and pictures of you and your staff. A video of you talking about your business and its history (include Chinese subtitles) and giving a tour of your premises will go a long way. “Some companies ship orders with a certificate that says, ‘This product is made in America,’” Chan says. “Others will wrap the product in their city’s American newspaper for that day. Anything that authenticates you will help.”

Your site should also feature lots of good pictures of your products. “Use different angles, show different colors, and give detailed written descriptions as well,” advises Stanley Chao, managing director of All In Consulting, and author of Selling to China: A Guide to Doing Business in China for Small- and Medium-Sized Companies (2012). “Seeing is believing for the Chinese.”

Anything you can think of that would allow a wary Chinese customer to feel comfortable with your company will help: Your mailing address, your e-mail address, your telephone number. It will cost some money, but if you can, hire a customer service representative who speaks Chinese and can answer telephone queries or at least provide online chat support. “Also, always include 100 percent-guaranteed refunds, or even an added incentive where they get a small credit for the inconvenience of returning something they did not like,” Chao advises.

The piracy problem has prompted Chinese shopping sites such as Taobao.com to institute multilayered customer rating systems for every product, Chan says. You most likely cannot replicate that, but you can include comments on your site—in Mandarin and English—from your Chinese customers. “If others successfully bought your products, then [Chinese customers will think] maybe you are trustworthy.”

Being a small business will put you at a disadvantage in the minds of most Chinese consumers, Chan says, so if your company has any connection to a celebrity or an iconic American brand—such as a major corporation that buys your products, sells them in its retail outlets, or uses your services—trumpet that connection on your site, with pictures, if possible. “Maybe you make a food product that has been served at the White House, or your shoes were worn by an American celebrity,” he suggests. That will appeal to some shoppers in China. “Just make sure you’re being truthful,” Chan says.

Company websites fail in China for the same reasons they fail in the U.S.: They’re done on the cheap, so they are marred by misspellings, ugly design, bad photos, and technical glitches. “I’ve noticed that successful sites are updated frequently, so users want to come back to check for new information, special deals, or more products. This also shows that the site is active, it’s busy, and there are real people behind it,” Chao says.

The bottom line: Take care of your Chinese customers, and they will recommend your company to their friends, show off your products proudly, and visit your store when they’re vacationing in the U.S. When they do, get pictures and put them on your website, Chan says: “If you can build a history in China, where there are millions of people buying and selling online, you’ll win big business there.”

via How Small U.S. Businesses Can Court Customers in China – Businessweek.

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14/05/2014

China’s Young Migrant Workers Earn More, Send Less Home – Businessweek

China’s younger migrant workers are better educated, spend more, save less, and prefer living in China’s bigger cities. They make up close to one-half of the migrant workforce, according to a survey released Monday by China’s National Bureau of Statistics.

A migrant worker in Beijing

Those from the younger generation, born after 1980—or balinghou (literally, “80 after”)—number 125 million, or 46.6 percent of China’s 269 million migrant workers. One-third have a high school education or higher; that’s 19.2 percentage points more than the older generation, the survey shows.

Unlike their parents, they aren’t inclined to scrimp devotedly in order to send  hard-earned kuai back to the countryside. The average younger migrant worker remitted 12,802 yuan ($2,054) to a hometown in rural China; that’s about 30 percent less than older workers did.

via China’s Young Migrant Workers Earn More, Send Less Home – Businessweek.

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14/05/2014

Hong Kong Retailers Say They’ll Stop Selling Ivory – China Real Time Report – WSJ

The window for buying ivory in Hong Kong is narrowing.

Three local sellers of everything from dinner wear to curios said on Wednesday that ivory was no longer welcome on their shelves. Wing On Department Store said it would stop selling ivory products in July, while Yue Hwa Chinese Products Emporium said it stopped selling ivory on May 7 and Chinese Arts & Crafts ( HK) Ltd. said it stopped in March.

The notices — given in letters from the three companies released on Wednesday by conservation groups — came just a day before Hong Kong plans to burn a 30-ton stockpile of seized elephant ivory.  Their moves “send a clear message that the consumption of ivory is rapidly becoming taboo in Hong Kong society,” said Alex Hofford, director of Hong Kong for Elephants, a local lobby group.

Representatives of the three companies attended a press conference on Wednesday to announce their new stance but left before taking questions. A call to Wing On wasn’t immediately returned. A Yue Hwa representative declined to comment further. A spokesman of Chinese Arts & Crafts said the ivory the company once sold was legal.

Nearly 100 elephants are killed every day for ivory trinkets — bracelets, statuettes and other decorative items sold illegally around the world, according to Hong Kong for Elephants. Wildlife experts estimate the African elephant population stand around 420,000 to 650,000 and could be wiped out in 10 to 15 years if nothing is done to ease the problem.

The groups argue that the slaughter of African elephants continues largely to meet the rising demand for tusks from newly affluent Chinese consumers.  The price of ivory in China was 15,000 yuan ($2,478) per kilogram in 2011, more than triple its price in 2006, according to data from the International Fund for Animal Welfare.

Wildlife conservation groups Wednesday urged the Hong Kong government turn its post-burning attention to the city’s 117.1 metric ton legal stockpile of ivory still in circulation in Hong Kong. Hong Kong for Elephants also called upon the city’ s government to legislate a permanent ban on ivory sales.

The Hong Kong government’s burning plans followed China’s, which in January pulverized six tons of illegal tusks.

In a recent official visit in Africa, Chinese Premier Li Keqiang also vowed to combat poaching and ivory smuggling.

“Changes are afoot for the better for elephants. This is an extraordinary encouraging moment for the global effort to reduce ivory demand in Asia,”  said Iris Ho of Humane Society International, an organization that works on animal protection.

via Hong Kong Retailers Say They’ll Stop Selling Ivory – China Real Time Report – WSJ.

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13/05/2014

China in numbers: building a trading empire, brick by imitation brick | The Times

5,137 . . . is the number of shops on Alibaba’s Taobao ecommerce platform that claim to sell Lego — a favourite toy of a pushy Chinese middle class convinced that the Danish bricks will make their children creative, inventive and generally more brilliant.

Chinese children play with Lego bricks

The prices offered at many of the Lego-selling online stores are often ridiculously and suspiciously cheap. The Taobao trading system, one of the shinier jewels in Alibaba’s crown as the internet titan seeks what could be the world’s biggest tech listing in America, allows customers to haggle directly with the vendor. An aggressive-enough negotiation can land you a substantial bag of Lego-esque bricks for the equivalent of a couple of quid.

Alarms bells rightly ring. Not all of these 5,137 Taobao-based Lego stores, needless to say, are selling genuine Lego. Lego itself does not publicly guess at the extent to which its product is ripped off: lawyers with the battle scars of Chinese infringement suits suspect the proportion of those 5,137 selling fake Lego may be as high as 80 per cent.

The notion that China is a seething, nest of counterfeiting, trademark infringement and fraudulence is not new; nor is the fact that the stratospheric growth of ecommerce in China has significantly enlarged the speed and volume at which fake goods change hands.

The big question, as lawyers and companies arrive in Hong Kong this week for the world’s biggest intellectual property convention, is whether anything much is changing. Jack Lew, the US Treasury Secretary, will arrive today in Beijing and demand greater protection of intellectual property. It is unclear whether that will change much either.

The signals are not great. Last week, the Chinese food and drug authority warned that 75 per cent of foreign-branded drugs sold online (though mostly not through Taobao stores) in China were fake. The extent of the problem was especially grisly for cancer sufferers, whose online pursuit of cheap generic oncology medicine will, eight times out of ten, land them with fake drugs.

The difficulty here is that Taobao’s greatest quality — its huge accessibility for vendors — is also the source of the problem. Even if a store selling counterfeited goods is closed down, there are no barriers to prevent its owner opening a new one, under a new name, hours later. As the operator of Taobao, Alibaba has undertaken a limited range of regulatory functions. But on one critical issue it does not step in: if a company such as Lego believes that fake bricks bearing its brand are being sold from a Taobao store, Lego bears the burden of proving that the product is fake. Crucially, Lego cannot use the laughably low prices of the fake Lego as evidence.

A recent experiment by Taobao to designate all versions of a particular product (not Lego) fake if they fell below a particular price resulted in 42,000 stores being immediately closed. Six months later, almost all had re-opened.

The problem for Beijing is that Alibaba and Taobao are arguably too big to fail. The public cannot live without ecommerce any more and the authorities have identified the encouragement of innovation and the release of entrepreneurial spirits (of the sort being vigorously nurtured on Taobao) as the keys to building a sustainable economy.

As a listed company and as a provider of the medium for immense, minute-by-minute infringement of intellectual property, Alibaba may soon find itself under greater pressure to play the policeman. It may be able to resist that as long as the the plaintiffs are foreigners: it may not find that so easy when the brands being ripped off are Chinese and the complaints are domestic.

via China in numbers: building a trading empire, brick by imitation brick | The Times.

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