Archive for ‘China alert’

23/11/2013

Reform in China: Let quite a few flowers bloom | The Economist

THE jury is in. After months of speculation and an initial summary last week, the final 22,000-character overview of China’s “third plenum” was published on November 15th. In the economic sphere the document turned out to be bolder than the initial summary suggested. The new party boss, Xi Jinping, wants to push through changes that have stalled over the past decade. As the document itself says: “We should let labour, knowledge, technology, management and capital unleash their dynamism, let all sources of wealth spread and let all people enjoy more fruits of development fairly.” Quite.

It is by no means certain that Mr Xi will be able to do all he wants to (see article), but it is clear he has won the battle so far. Economically, he is proving himself an heir to Deng Xiaoping, China’s great reformer, and not the closet Maoist that some had feared. Conservative forces seeking to stifle reformist voices have been quieted, at least for the time being.

The document’s interest lies not just in the economic reforms, which were anticipated. More striking were some of the social changes the document announced, such as the relaxation of the one-child policy. A couple in which one parent is an only child will be allowed to have two children, and the policy is likely to be loosened even further. In another widely welcomed move, labour camps—in which around 190,000 people, including political and religious activists, are detained—are to be abolished.

But possibly the most important announcements were buried deep in the document and grabbed fewer headlines. Two moves in particular showed that the party is sensitive to the ferment in Chinese society and the demands for greater liberty and accountability that accompany it.

In the past 30 years China has gone from a totalitarian society to one in which people can usually work where they want, marry whom they want, travel where they want (albeit with varying degrees of hassle for those from the countryside and ethnic-minority regions). In ten years internet penetration has gone from minimal to almost universal. Old welfare structures have broken down, with little to take their place. Ordinary people are being empowered by new wealth and participation, through microblogs, and by becoming consumers and property owners. Change is bubbling up from the bottom and the system cannot contain it.

An uNGOvernable state

Society is becoming too complex for the old structures to handle. Hence the government’s decision to allow the development of what it calls “social organisations”. In essence these are NGOs. The party dislikes the idea of anything non-governmental and has long regarded NGOs as a Trojan horse for Western political ideas and subversion, but it is coming to realise that they could solve some of its problems—caring for the sick, elderly and poor, for instance. The growth of civil society is not just important in itself. It is also the bridge to the future, linking today’s economic reforms to whatever putative future political reform might come.

Equally important is the issue of judicial reform. China’s hopelessly corrupt judges are unpopular. The party resolution floats the idea of “judicial jurisdiction systems that are suitably separated from administrative areas”; that is, local judiciaries that are not controlled and paid for by local officials. Though some observers doubt this will happen, if it does it could be the start of a system of basic checks and balances, which would make officials more accountable.

That these two gestures towards reform were mentioned at all is encouraging; that they were barely visible to the untrained eye shows the party’s ambivalence towards liberalisation. But it must push ahead. Its planned economic reforms will surely generate not just wealth, but more pressure for political change. Unless the party responds, there could be an explosion. If Mr Xi is inclined to wobble, he should remember the advice in the plenary document: “Dare to gnaw through even tough bones, dare to ford dangerous rapids, break through the fetters of ideological concepts with even greater resolution.”

via Reform in China: Let quite a few flowers bloom | The Economist.

23/11/2013

Property in China: Haunted housing | The Economist

IN CHINA, property prices can keep going up forever. At least, that is what optimists seem to think. They point out that the country is undergoing the largest urbanisation in history. The throngs of migrants from the countryside all need homes, the argument runs. China’s swelling middle classes, many of whom live in shoddy 1980s housing, are also eagerly moving to fancier flats or McMansions. The result has been a spectacular property boom over the past decade.

At first glance, it seems the good times are still rolling (see chart). During the first three quarters of this year residential sales shot up by 35% versus the same period a year ago. Prices for new homes rose year-on-year in September in 69 of the 70 biggest cities. In Shanghai, Shenzhen and Beijing prices jumped by more than 20%; in slightly smaller cities, such as Nanjing and Xiamen, they rose by around 15%.

Despite these signs of rude health, even some of China’s biggest property moguls appear to be growing uneasy. Wang Shi, the chairman of China Vanke, the country’s largest residential-property firm by volume, has called the market a bubble. Wang Jianlin, the country’s richest man and the chairman of Dalian Wanda, a property giant turned entertainment firm, acknowledges that parts of the country may be experiencing a property bubble, though he thinks it “controllable”. Li Ka-Shing, a Hong Kong tycoon who has long been bullish on China, has started to sell his mainland holdings.

The problem is not the wealthiest cities with the most vertiginous valuations. Indeed, in those markets prices may yet go higher. People from all over China buy trophy apartments in Shanghai and Beijing, making their markets as resilient as those of Manhattan and central London. In fact, policies aimed at squelching speculation may be artificially suppressing demand in those places.

Shanghai and Shenzhen recently followed Beijing’s lead by requiring that buyers of second homes put up 70% of the purchase price as a deposit. In Beijing, the sale of a second home incurs a 20% capital-gains tax. (This is supposedly a nationwide policy, but is not always enforced in other cities.) Couples with two homes are reportedly divorcing to avoid the tax, since once officially single they can each own a primary residence, and thus sell either one without penalty.

Demand does not look so robust, however, in places like Yingkou Coastal Industrial Base, in north-eastern China. This development was promoted by the local government as a future hub of economic activity, but the future has not yet arrived. There are rows of empty buildings and few people on the streets. Property salesmen claim that big companies ranging from Coca-Cola to PetroChina are building factories nearby. But even Xinhua, an official media outlet, is sceptical: except for street lamps and the occasional passing vehicle, it reported recently, “at night the base was completely dark.”

Many property developments outside the big cities appear to be ghost towns of this sort. Moody’s, a credit-rating agency, laments that a large and rising share of new supply has gone to smaller cities. People’s Daily, another official organ, recently fulminated against the “huge waste of resources” such construction represents. Nonetheless, by the government’s count, 144 cities in 12 provinces are planning 200 new towns.

via Property in China: Haunted housing | The Economist.

23/11/2013

Japan’s Abe Seeks Asia Alliances to Counter China – Businessweek

Prime Minister Shinzō Abe is the first Japanese premier to visit all 10 members of the Association of Southeast Asian Nations. In late November, Emperor Akihito will make the first visit by a Japanese monarch to India. Not on either dignitary’s itinerary—China. And that’s no accident.

Click image to enlarge

Abe, a foreign-policy hawk who’s clashed with the Chinese over the ownership of some Japanese-controlled islands, wants to shore up relations with the swath of nations forming a semicircle around China. Some have their own beefs, including India, which shares a disputed border with China. Abe will visit India next year, and in mid-December will host Asean leaders. It’s all part of his campaign to thwart China’s rulers, who, as he wrote in a column last December, see the South China Sea as “Lake Beijing.”

Click image to enlarge

This is powerful but dangerous talk. China is throwing its considerable weight around more in the region, and it may react aggressively if its neighbors push back too hard. As all sides buy more warships, missiles, and fighter jets, such confrontations could escalate. “Nobody has said this is surrounding China,” says Chiaki Akimoto, director of RUSI Japan, an arm of Britain’s Royal United Services Institute, a think tank. What Abe wants “is just a friendship network with nations around China.”

via Japan’s Abe Seeks Asia Alliances to Counter China – Businessweek.

23/11/2013

Green China? It Leads the World in Adding Renewable Electricity – Businessweek

China has earned a reputation as the world’s worst polluter. But if the International Energy Agency is right, the Asian nation is on course to set an example for the rest of the planet on the use of energy from renewable sources over the next quarter-century.

Power lines transmit electricity generated by the Three Gorges Hydropower Station at the Three Gorges Dam in Yichang, China, on July 22

According to the Paris-based agency’s World Energy Outlook, China will add more electricity generating capacity from renewable sources by 2035 than the U.S., Europe, and Japan combined. Hydro power and wind power will be the two main sources of China’s renewably sourced electricity, with solar photovoltaic cells coming in a distant third, according to the agency’s forecast. (Sorry, no link to the outlook: The IEA charges €120 ($162) for a paper copy.)

China is predicted to add more electricity generating capacity from renewable sources by 2035 than the U.S., Europe, and Japan combined.

These forecasts for China are from the agency’s central scenario, which assumes “cautious” implementation of policies that have been announced by governments but not put into effect as of mid-2013. The agency has two other scenarios, one assuming no new policies are enacted and another assuming drastic action against global warming that gives the world “a 50 percent chance of keeping to 2 degrees Celsius the long-term increase in average global temperature.”

From everything we’ve read in recent years about China’s insatiable thirst for energy, you might think the world’s No. 2 economy is going even bigger into coal than renewables, but that’s not the case, at least according to the IEA. The agency predicts that China’s share of global coal consumption will actually shrink a bit from 2011 to 2035.

China’s leadership has made energy a top priority. In 2011, the nation’s 12th Five-Year Plan set a goal of reducing energy consumption per unit of gross domestic product by 16 percent in the five years through 2015.

via Green China? It Leads the World in Adding Renewable Electricity – Businessweek.

See also: https://chindia-alert.org/economic-factors/greening-of-china/

22/11/2013

China: Labour camp system abolished forever

21/11/2013

Pan-Asian history textbooks struggle to find common language – FT.com

For decades, disagreements over regional history have been a blight on diplomacy between Beijing, Tokyo and Seoul.

Now, South Korea’s President Park Geun-hye has revived a proposal aimed at soothing the long-running row over the region’s history: a shared syllabus of northeast Asian history, to be used as the basis for teaching in all three countries.

Yet while academics view the idea as desirable in principle, most also dismiss it as unfeasible for the foreseeable future – reflecting a continuing deterioration in regional relations, with festering historical grudges at the core.

Japanese school history books have long been seen by South Korean and Chinese critics as emblematic of efforts to downplay atrocities during Japan’s imperial expansion. Politicians in Seoul complain of a failure to address the wartime sexual enslavement of thousands of Korean women, while Beijing has railed at suggestions that Japan occupied Manchuria in response to Chinese provocations.

The historical grievances have intensified since the election last year of the nationalist prime minister Shinzo Abe, whose provocative remarks have included questioning the notion that Japan truly “invaded” Asian countries such as China and Korea.

In her proposal for a shared history syllabus, unveiled at a conference last week in Seoul, Ms Park cited precedents set by Germany, France and Poland. “We may see the removal of the wall of historical problems, which is the seed of conflict and distrust,” she said.

Japanese education minister Hakubun Shimomura – widely seen as one of Mr Abe’s more rightwing cabinet members – said he “openly welcomed” the suggestion. He added that he hoped it could serve as a catalyst for high-level talks between the three governments, something Mr Abe’s administration has been seeking with little success. A Chinese foreign ministry spokesman was more cautious, stressing the need for Japan to “adjust its attitude and gain the trust of its Asian neighbours”.

Ms Park’s spokeswoman presents the proposal as part of her drive for a “northeast Asian peace and co-operation initiative” – but in fact politicians and scholars from the three countries have been toying with this idea for years.

In 1997, Seoul and Tokyo agreed to set up a joint committee of historians whose research could form the basis for educational texts – but the body’s work over the ensuing years “just confirmed how deep are the differences between the historical views of the two peoples”, says Lee Gil-sang, a professor at the Academy of Korean Studies in Seoul.

After four years of work, a 2010 report by a similar Sino-Japanese body exposed a rift over Japan’s historical claim to the Okinawa island group – a debate with implications for the countries’ fierce dispute over the Senkaku Islands, known as Diaoyu in China.

“It is urgent and necessary to have [a joint history] book considering the growing territorial disputes,” says Su Zhiliang, a professor at Shanghai Normal University who edits Chinese history textbooks.

While officially sponsored efforts have made limited headway, private initiatives have borne more fruit. A group of Chinese, Japanese and South Korean historians jointly produced a history book in 2007, and a second such project was published in all three countries last year. Yet neither text was embraced by any of the three countries’ school authorities.

“The main focus of history teaching in this region is to promote patriotism,” says Mr Lee.

via Pan-Asian history textbooks struggle to find common language – FT.com.

21/11/2013

As Xi Jinping Reforms China, Expect Power Consolidation, Not Democracy – Businessweek

Chinese President Xi Jinping is all about reform. That’s “reform” as in “kicking butt.” The main take-away from the Third Plenary Session of the Communist Party’s 18th Central Committee is that Xi has consolidated power remarkably quickly and is eager to use it. Some parts of his agenda impress outsiders, such as further relaxing the one-child policy and closing reeducation labor camps. Such steps defuse popular anger toward the regime. Other Xi initiatives are decidedly less appealing, like the vow to “utilize and standardize Internet supervision,” which is code language for censorship. But whether liked or disliked outside China, everything Xi intends to do is directed toward one goal: to consolidate the Communist Party’s central and permanent role as the leader of the nation.

As Xi Jinping Reforms China, Expect Power Consolidation, Not Democracy

Democracy is the yielding of power from the party to the people. That’s not what Xi wants. He wants to gather power inward on the theory that only a strong leader can govern a country in which the mountains are high and the emperor is far away. Getting local governments to toe the line “requires a lot of political brute force, and it’s something you can only achieve if you are extremely vigorous,” says Arthur Kroeber, Beijing-based managing director of economic research firm GK Dragonomics. Kroeber says Xi’s anticorruption campaign seems to warn, “Look, this is the way it’s going to be, and if you don’t like it, we have a lot of space in the jails for you.”

The theme of the third party plenum, held on Nov. 9-12, was “reform and opening up.” That’s a phrase consciously copied from an earlier third party plenum—the one in December 1978 at which Deng Xiaoping began to launch China into the global economy. Deng helped lift hundreds of millions of Chinese out of poverty, giving the world’s most populous nation what is now the world’s second-biggest economy. Xi wants to show his countrymen he’s determined to carry on Deng’s legacy, yet he draws inspiration from the man Deng repudiated: Chairman Mao Zedong. Xi’s father, Xi Zhongxun, fought alongside Mao. According to the official story, Mao saved him from execution, and the elder Xi repaid the favor by sheltering Mao and his troops at the end of the Long March retreat from the Nationalist forces of Chiang Kai-shek.

As a princeling, Xi is determined to demonstrate his ties to the founding generation. Intent on returning China to a purer past, he has presided over a crackdown on corruption that has netted senior party officials—even as members of his own extended family have become rich. He’s brought back the Maoist notion of a “mass line” that enforces ideological discipline by requiring officials to “listen to the people,” introspect, and cleanse themselves of any deviations from party doctrine. He isn’t making it easy for the people to speak, though; in September, China’s top court said Web users could face jail time if “defamatory” rumors they put online were read by more than 5,000 people or reposted more than 500 times.

Xi doesn’t trumpet his differences from his predecessors as an American would. Chinese leaders worry that the people will lose faith in the party if it seems to be swerving in different directions. (“Unswerving” is a big word in China.) So in its 60-point resolution, the Central Committee dutifully name-checks “Marxism-Leninism, Mao Zedong Thought, Deng Xiaoping Theory, the important thought of ‘Three Represents,’ and The Scientific Outlook on Development”—those last two being the slogans of past presidents Jiang Zemin and Hu Jintao, respectively. It’s as if Barack Obama obsessively paid tribute to President George W. Bush’s “compassionate conservatism.”

via As Xi Jinping Reforms China, Expect Power Consolidation, Not Democracy – Businessweek.

21/11/2013

Is Land Reform Finally Coming to China? – Businessweek

China’s leaders raised a multitude of reforms as priorities at the plenum that closed a week ago. A key one, a change in land ownership so that farmers can more freely rent, sell, and mortgage their land, is hoped to boost China’s still laggard household consumption.

A farmer harvesting rice in Xizhou county, China

“The Party leadership has given its blessing to land reforms that should shift more income to rural households. Change will happen slowly but the result should be a boost to consumer spending,” wrote Mark Williams and Julian Evans-Pritchard, economists at London-based Capital Economics in a Nov. 20 note.

The present system dates back to the early days of the People’s Republic and classifies all rural land as collectively owned. That murky status restricts farmers from selling the land they live on, while local governments are largely free to take it—sometimes forcibly—and convert it to industrial and commercial uses, providing a key source of their income.

Authorities usually sell the seized land for 18 times what they paid the farmers, estimates Li Ping, senior attorney at the Beijing office of Landesa, a Seattle-based nonprofit that focuses on land-rights issues. This contributes to rising social instability, with farmers protesting land grabs, and it keeps the rural population poor, Bloomberg Businessweek reported earlier this year.

It can’t all be labeled rapacious land-grabbing, however. With local governments responsible for 80 percent of spending, including for their citizens’ education, health, and pensions—but getting only about 40 percent of China’s total tax revenues, according to World Bank estimates—the reliance on alternate sources of revenues such as land sales is understandable. According to China’s Ministry of Finance, local governments’ land-sale proceeds totaled 2.67 trillion yuan ($438 billion) last year, equivalent to more than half their total tax revenue, Bloomberg News reported on Sept. 24.

“With farmers and collectives now barred from selling rural land, expropriation of land has been a significant source of revenue for local governments,” wrote the Capital Economics economists. “They rezone it for commercial, industrial or residential use, add some infrastructure and sell it on. Industrial firms are often offered land at a low price as an incentive to set up in an area. Local governments benefit by taxing these firms’ activities.”

via Is Land Reform Finally Coming to China? – Businessweek.

21/11/2013

After Stingy Aid to Typhoon Haiyan Victims, China Tries Damage Control – Businessweek

With a relief team finally on its way to the Philippines, China is trying to control the damage from its petty response to the Typhoon Haiyan tragedy.

A 17-member disaster relief team from the China Red Cross prepares to depart for the Philippines, in Beijing, on Nov. 20

The Chinese group is getting there late because of political differences between the two governments. The storm may have killed thousands of people and brought to a halt a large swath of China’s neighbor to the south, but since the world’s new economic giant is feuding with the Philippines about disputed islands in the South China Sea, the leadership in Beijing decided to take advantage of a humanitarian catastrophe to teach President Benigno Aquino who’s boss.

China initially offered a paltry $100,000 in aid and, after an international outcry, raised that figure to $1.6 million. It’s as if Dr. Evil decided to go into the disaster-relief business: “One point six million dollars!” Hence the headlines worldwide expressing outrage that China, the world’s second-largest economy, was offering less money than do-it-yourself furniture maker Ikea.

Not the ideal message for a country trying to persuade its neighbors of its trustworthiness. China’s ham-fisted response to Haiyan is a welcome gift for Japanese Premier Shinzo Abe, who has spent much of his first year in office touring countries in the region that have good reason to worry about China’s intentions.

That’s probably why China’s officials and media are trying to change the narrative. Chinese relief workers are on their way to the Philippines now, China’s Foreign Ministry announced today—a week and a half after Haiyan hit. But not to worry, some Chinese blankets and tents started arriving on Monday and Tuesday. “China will also send a medical boat Peace Ark, which belongs to the Chinese navy, to the Philippines,” the Xinhua news agency reported today. “The boat, which has good medical rescue capability and maneuverability, will depart soon.”

Even as the Chinese relief effort finally gets underway, there’s a new message: China is actually the victim here, hurt by Philippine bureaucrats. According to Xinhua, China was slow because the Philippine government hadn’t given its blessing. Indeed, the state-run news agency reported yesterday the emergency medical team was “ready to go” and would “depart for the disaster areas immediately, once China gets permission from the Philippines.”

via After Stingy Aid to Typhoon Haiyan Victims, China Tries Damage Control – Businessweek.

21/11/2013

China Supreme Court rules out confession through torture | Reuters

Using torture to extract confessions must be eliminated, China\’s Supreme People\’s Court said on Thursday, singling out a widespread practice that has long attracted international condemnation.

Policemen guard the entrance outside Shandong Province Supreme People's Court in Jinan, Shandong province, October 25, 2013. REUTERS/Aly Song

\”Inquisition by torture used to extract a confession, as well as the use of cold, hunger, drying, scorching, fatigue and other illegal methods to obtain confessions from the accused must be eliminated,\” the Supreme Court said in a statement posted on its official microblog account.

The Supreme People\’s Court also introduced more stringent rules for death penalty cases, saying adequate evidence must be furnished and that only experienced judges should handle capital punishment trials.

China\’s government said last week it would work to reduce the number of crimes subject to the death penalty.

via China Supreme Court rules out confession through torture | Reuters.

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