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26/07/2013

India, China trying to develop mechanism to prevent face-off: AK Antony

Daulat Beg Oldi is in northernmost Ladakh.

Daulat Beg Oldi is in northernmost Ladakh. (Photo credit: Wikipedia)

Times of India: “NEW DELHI: India and China are trying to develop effective mechanisms to prevent the “embarrassing” face-offs between their troops along the “disputed” points of the Line of Actual Control, defence minister AK Antony said here on Friday.

 

Terming the 21-day stand-off between the two sides in Depsang valley in Daulat Beg Oldi area as an “unusual” incident, the defence minister said the two countries will meet soon in Beijing to discuss issues and try to find a solution for such “unpleasant incidents”.

“Till the final settlement of the border issue, we are trying to find out more effective mechanisms to prevent occasional incidents. There are many points in the LAC that are disputed and they are patrolled by both sides. So, sometimes it leads to some face-off,” he told reporters on the 14th anniversary of Kargil Vijay Diwas.”

via India, China trying to develop mechanism to prevent face-off: AK Antony – The Times of India.

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26/07/2013

The search for civic virtues: The unkindness of strangers

The Economist: “EIGHTY years ago Lu Xun, now enshrined as the father of modern Chinese literature, observed that when others needed help his countrymen seemed to be stricken by apathy. “In China,” he wrote, “especially in the cities, if someone collapses from sudden illness, or if someone is hit by a car, lots of people will gather around, some will even take delight, but very few will be willing to extend a helping hand.”

Today such concerns lie at the heart of an agitated national debate spurred by a number of tragedies over the past few years. In 2011 a toddler known as Yue Yue was knocked down by two different vehicles on a busy street in Foshan, a boom city in Guangdong province in southern China. The vehicles did not stop. Eighteen people walked by before a humble scrap-collector picked her up. She later died in hospital. The episode was caught on surveillance camera and published online. It led to a public outpouring, with millions posting their outrage on microblogs.

Similar incidents crop up every so often. Also in 2011, an 88-year-old man collapsed in Hubei province in central China. Passers-by left him on the street for 90 minutes before some relatives arrived; he, too, later died. And last year a five-year-old boy was run over by a bus in Zhejiang province in east-central China. Videos posted online show bystanders ignoring his mother’s pleas for help.

Such grisly incidents are in fact rare. It is in the nature of things that good deeds go less remarked—including, for instance, a tendency for some Chinese couples to take in babies abandoned on their doorstep and, bureaucracy permitting, bring them up. Yet the incidents have stirred up press coverage and an anguished debate about contemporary Chinese values. Commentators blame the perceived callousness on China’s growth-at-all-costs mentality which, they claim, has created a moral vacuum. The China Daily said the case of Yue Yue symbolised “our moral decline”.

Worse, some say, those who come to the aid of others lack legal protection from a grasping and increasingly litigious society. Good Samaritans have often been shaken down by the very people they tried to help. In 2007 a student called Peng Yu was ordered to pay more than 45,000 yuan ($7,300) when an elderly woman whom he had taken to hospital after a fall accused him of causing the accident. The judge sided with the woman, reasoning that Mr Peng would not have bothered to help her unless he was at fault. Mr Peng got nationwide sympathy—though fresh evidence last year seemed to contradict his version of events.

Cases of extortion, though also rare, are widely reported. Yunxiang Yan, an anthropologist at the University of California, wrote in an essay on the subject that they constitute “a heavy blow to social trust, compassion, and the principle of moral reciprocity”. The health ministry has done its bit to discourage good deeds. Last year it advised people in a booklet on aiding others: “Do not rush to help, but manage according to the situation.”

A culture of compensation—the expectation that financial settlements will be paid to families of accident victims—has fuelled the debate. This month two teenage boys who tried to rescue two girls from drowning were pressured to pay 50,000 yuan each to the girls’ families for failing to save them. Mr Yan calls it “the Samaritan’s dilemma”: pitting a good act against the potential risk of anything going wrong.

Responding to this conundrum, this month the southern city of Shenzhen, often China’s most progressive, announced that it will implement the country’s first “Good Samaritan” law. The law aims both to encourage public acts of kindness and, crucially, to protect do-gooders should things go awry. It stipulates that Good Samaritans will face no repercussions if their efforts to help others are unsuccessful. Those framed for causing an accident now have the codified right to sue their accuser and claim—what else?—compensation.”

via The search for civic virtues: The unkindness of strangers | The Economist.

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26/07/2013

Why China’s Debt Bubble Won’t Burst

BusinessWeek: “Is China facing the prospect of a financial meltdown? That’s a question gaining new urgency as its economy decelerates: Growth in the second quarter came in at 7.5 percent, its second consecutive decline. Total debt now amounts to more than $17 trillion, or an astonishing 210 percent of gross domestic product, up 50 percentage points from four years ago, estimates Wang Tao, chief China economist at UBS Securities (UBS).

Bicycle commuters ride past high-rises in Beijing in 2011

The scale of the problem suggests the worries are well founded. Take China’s highly leveraged corporate sector. Company debt reached 113 percent of GDP at the end of 2012, up from 86 percent in 2008, when the country’s leadership directed banks to open their lending spigots during the financial crisis, estimates Louis Kuijs, chief China economist at Royal Bank of Scotland (RBS) in Hong Kong. Making matters worse, the biggest company borrowers—state-owned enterprises in heavy industries like steel, aluminum, solar, and ship-building—are now saddled with overcapacity funded by the easy credit.

A significant portion of new lending is going towards paying interest on old loans, according to UBS’s Wang. “Manufacturers facing oversupply issues will be the most likely source of new non-performing loans for banks this year,” says Liao Qiang, director of ratings for financial institutions at Standard & Poor’s. “And next year banks will see growing pressure, from [stressed] property developers, construction companies, and local government borrowers.”

While the officially reported level of bad loans is still very low—just under 1 percent for commercial banks as of the end of last year—that is likely understated. Local government borrowing—in part through China’s largely unregulated shadow banking system—has surged in recent years and now amounts to about one-third of gross domestic product, according to UBS. Much of that money has been pumped into infrastructure projects and property developments that will not provide returns for years. If China’s property markets cool, local governments—heavily reliant on land sales—may start to default on their loans.

While many analysts are becoming gloomier about China’s economy, they acknowledge that there’s very little risk of a systemic crisis. Capital controls protect China from the outflows that triggered financial meltdowns in countries including Thailand and Malaysia in the late 1990s. Also, China’s external debt is very small, only 7.2 percent of GDP, points out Royal Bank’s Kuijs, so a change in sentiment by foreigners would not have much impact.

With its high personal savings and $1.7 trillion in net foreign assets, China has ample resources to bail out banks and ailing industries. Kuijs figures that even under a “severe stress” scenario, where one-third of loans went bad, the cost of a rescue would push up government debt by only seven percentage points, to a still-manageable 60 percent. “It would certainly be messy. But China has the fiscal wherewithal to absorb problems like this,” he says. UBS’s Wang is also sanguine. “The level of debt is not a good judgment of whether a country has a serious problem,” she says. “The issue is whether it can afford the debt, and so far China can.””

via Why China’s Debt Bubble Won’t Burst – Businessweek.

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26/07/2013

Shoulder lights to make police more visible

China Daily:

Shoulder lights to make police more visible

Policemen wear their new shoulder lights at a ceremony to launch the use of the night lights in Southwest China‘s Chongqing on July 25, 2013. The shoulder lights are being used by the city’s police for the first time and will make policemen on patrol visible for 100 meters. Other public security guards will also be equipped with the lights, which can run for five days on two batteries. [Photo/CFP]

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25/07/2013

China to invest $277 billion to curb air pollution: state media

Reuters: “China plans to invest 1.7 trillion yuan ($277 billion) to combat air pollution over the next five years, state media said on Thursday, underscoring the new government’s concerns about addressing a key source of social discontent.

The money is to be spent primarily in regions that have heavy air pollution and high levels of PM 2.5, the state-run China Daily newspaper quoted Wang Jinnan, vice-president of the Chinese Academy for Environmental Planning as saying. Wang helped draft the plan.

Tiny floating particles, measuring 2.5 micrometers or less in diameter, are especially hazardous because they can settle in the lungs and cause respiratory problems and other illnesses.

The new plan specifically targets northern China, particularly Beijing, Tianjin and Hebei province, where air pollution is especially serious, the newspaper said.

The government plans to reduce air emissions by 25 percent by 2017 compared with 2012 levels in those areas, according to the report.

“The thick smog and haze that covered large areas of the country in January has focused public attention on this issue,” Zhao Hualin, a senior official at the Ministry of Environmental Protection, told the newspaper.

China’s State Council, its cabinet, approved the plan in June, Zhao said.”

via China to invest $277 billion to curb air pollution: state media | Reuters.

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

Posted in carbon emission, China alert, Climate change, Environment, Green, greenhouse gas, Pollution | Leave a Comment »

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25/07/2013

China unveils fresh measures to boost growth

BBC: “China has unveiled a series of moves aimed at boosting growth, indicating that policymakers are concerned about the slowdown in its economy.Worker climbs out of an underground construction site in Hefei, China

The steps include tax breaks for small businesses, reduced fees for exporters and opening up of railway construction.

China’s economic growth rate has slowed for two quarters in a row and there are concerns that it may slow further.

But the cabinet said the economy was in a reasonable shape and it was pushing for reforms to stabilise growth.

“The economy is still running in a reasonable range,” the cabinet said.

“We must look at now and beyond to let restructuring and reform play an active role in stabilising growth.””

via BBC News – China unveils fresh measures to boost growth.

See also: https://chindia-alert.org/economic-factors/china-needs-to-rebalance-her-economy/

Posted in austerity, China alert, Economics | Leave a Comment »

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24/07/2013

Consumer optimism hits a high

China Daily: “Income growth and willingness to spend more are main driving forces

Consumer confidence in China has topped that in other major economies to equal a record high, and economists are saying this signals that consumption will support the world’s second-largest economy, where growth is slowing.

A survey by global information company Nielsen shows China’s consumer confidence index, based on its market research, rose to 110 in the second quarter from 108 in the first, indicating increased willingness to spend on consumer goods and services.

It also reached 110 in the second quarter of last year.

Zhang Monan, an economist at the State Information Center under the National Development and Reform Commission, said domestic demand, especially consumption, will become crucial to supporting economic growth in the second half of the year.

Tao Libao, vice-president of media research at Nielsen Greater China, said, “With the industrial transformation, consumption will become the growth engine.”

The central government has pledged to promote structural reforms, shifting from investment-driven to consumption-oriented development, while ensuring stable economic growth and secure employment.

The Nielsen Global Consumer Confidence Index, released on Tuesday, rose to 94 in the second quarter, compared with 93 in the first.

A reading below 100 means that consumers are pessimistic about the outlook, while a reading above 100 signals optimistic expectations.

Nielsen said consumer confidence declined in 14 of 29 European countries as government budget cuts, tax rises and high unemployment continued.

Consumer confidence improved in the United States, along with increasing employment opportunities, higher home prices and a rising stock market, the company said.

In the second quarter, China had the fifth-highest reading of indices among 58 countries based on surveys covering more than 29,000 global respondents.

Fast growth of disposable income and people’s willingness to spend more on improving quality of life, especially in large cities, was the main driving force behind this, the company said.

The average disposable income of urban Chinese residents was 13,649 yuan ($2,201) in the first half of the year, up 9.1 percent from a year earlier, while the disposable income of rural residents rose to 4,171 yuan, up 13 percent year-on-year, according to the National Bureau of Statistics.

Retail sales of consumer goods rose by 12.7 percent in the first six months to 11.08 trillion yuan, compared with a 12.4 percent growth rate in the first quarter, the bureau said.

Beijing, Shanghai and Guangzhou, with 7 percent of China’s population, contributed about 25 percent of the country’s spending on consumer products and services, Nielsen said.

As urbanization speeds up and consumers pursue a better quality of life, they will have a deeper understanding of consumption, said Yan Xuan, president of Nielsen Greater China.”

via Consumer optimism hits a high |Economy |chinadaily.com.cn.

Posted in China alert, Consumer, Economics | Leave a Comment »

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24/07/2013

Sri Lanka teams up with Chinese firm for $1.4 billion port city

Reuters: “Sri Lanka has finalized a $1.43 billion deal with China Communications Construction Co Ltd (601800.SS) to build a city on a 230 hectare site that will be reclaimed from the sea, the head of the state-run Ports Authority said on Wednesday.

A general view of the Colombo South Harbor at Colombo Port July 24, 2013. REUTERS-Dinuka Liyanawatte

The site is next to the island nation’s main Colombo port and Colombo‘s historic Galle Face Green seafront. It is also close to where Shangri-La Hotels Lanka Ltd, a subsidiary of Hong Kong-listed Shangri-La Asia Ltd (0069.HK), is building a 500-room hotel.

“The Chinese firm will invest in reclaiming the land and infrastructure of the port city,” Priyath Wickrama, chairman of Sri Lanka Ports Authority, told reporters. “It will be given around 50 hectare of reclaimed land on a 99-year lease for its investment.”

The 39-month long construction project will start in September, Wickrama said, adding the city would include eco-parks, residential areas, offices and shopping malls.

Since the end of a nearly three-decade war in May 2009, the Indian Ocean island nation has been spending heavily on infrastructure, including ports to attract foreign investments to its $59 billion economy.

It has already created new land near the proposed port city as part of its expansion of the Colombo port to double its capacity by 2015.”

via Sri Lanka teams up with Chinese firm for $1.4 billion port city | Reuters.

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23/07/2013

China to expand imports from ASEAN members

Is this action based on genuine economic reasons or is it partly to diffuse China‘s tension with many ASEAN countries involved with the on–going maritime territorial disputes?

China Daily: “China pledged to increase its imports from the Association of Southeast Asian Nations as bilateral trade started to favor China in the second half of 2012, Vice-Minister of Commerce Gao Yan told a news briefing on Tuesday.

Emblem of ASEAN

Emblem of ASEAN (Photo credit: Wikipedia)

China will enhance trade facilitation through cooperation with ASEAN members in areas including customs and quality checking while sending purchasing groups for agricultural products from ASEAN members, Gao said.

In addition, exhibitions, including the 10th CAEXPO to be held September 3-6 in Nanning, Guangxi Zhuang autonomous region, will serve as opportunities for ASEAN exporters to expand their sales to China, she added.

China is the biggest trade partner of ASEAN and bilateral trade hit $400.1 billion in 2012, with Chinese exports totaling $204.3 billion and imports of $195.8 billion, leaving a trade surplus of $8.5 billion. China previously had a trade deficit with ASEAN, Gao said.”

via China to expand imports from ASEAN members |Economy |chinadaily.com.cn.

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23/07/2013

China starts 5-year ban on new gov’t buildings

First ostentatious spending, then came curtailment of banquets and now building construction. China is ratcheting up its austerity drive.  But one wonders if this is countering the efforts to re-vitalise the economy.

Xinhua: “Central authorities on Tuesday introduced a five-year ban on the construction of new government buildings as part of an ongoing frugality campaign.

Building construction

Building construction (Photo credit: Toban B.)

The General Office of the Communist Party of China (CPC) Central Committee and the General Office of the State Council jointly issued a directive that calls for an across-the-board halt to the construction of any new government buildings in the coming five years.

The ban also covers expensive structures built as training centers or hotels.

The directive said some departments and localities have built government office compounds in violation of regulations.

The directive called on all CPC and government bodies to be frugal and ensure that government funds and resources be spent on developing the economy and boosting the public’s well-being.

According to the directive, the construction, purchase, restoration or expansion of office compounds that is done in the guise of building repair or urban planning is strictly forbidden.

The directive also bans CPC and government organizations from receiving any form of construction sponsorship or donations, as well as collaborating with enterprises, in developing construction projects.

While allowing restoration projects for office buildings with dated facilities, the directive stresses that such projects must be exclusively aimed at erasing safety risks and restoring office functions.

According to the instruction, such projects must be approved first by related administrative departments and luxury interior decoration is prohibited, with criteria and spending to be set in accordance with local conditions.

The directive stipulates that expenditures on office building restoration should be included in CPC and government budgets.

According to the instruction, buildings with reception functions, such as those related to accommodation, meetings and catering, should not be restored.

The directive orders all CPC and government departments to rectify the misuse of office buildings, including those that are used for functions that have not been approved.

The directive says CPC and government officials with multiple posts should be each given only one office, while offices for those who have retired or taken leave should be returned in time.

Local authorities should establish or perfect the management of government buildings by strictly verifying the buildings’ size, according to the directive.

Departments that have moved to renovated or newly-built locations should transfer the original office blocks to government office administrators in a timely fashion, according to the directive.

Departments and units at all levels should address the office shortage caused by adding new institutions by themselves. If the additions do not meet their needs, government office administrators should adjust existing resources to solve the shortage, according to the directive.

Strict approval procedures are also required for renting new office blocks, according to the directive.

“Banning the building of new government buildings is important for building a clean government and also a requirement for boosting CPC-people ties and maintaining the image of the CPC and the government,” according to the circular.”

via China starts 5-year ban on new gov’t buildings – Xinhua | English.news.cn.

Posted in austerity, China alert, Construction, Economics | 1 Comment »

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