Archive for ‘China alert’

21/11/2012

* China’s commerce minister voted out in rare congress snub

Is this the start of something new and different – internal CPC democracy?  Time will tell.

Reuters: “China’s commerce minister was surprisingly blocked from a spot on the ruling Communist Party’s elite body during a conclave this week, sources said, a rare snub for an official that could raise questions about trade policies during his tenure.

China's Minister of Commerce Chen Deming looks on during a news conference at the 8th World Trade Organization Ministerial Conference in Geneva December 15, 2011. REUTERS/Denis Balibouse

The failure of Chen Deming to secure a seat on the 25-member Politburo marks one of the few surprises to emerge from the party’s five-yearly congress that wrapped this week with the anointing of a new slate of top leaders who will run the world’s second largest economy.

It is also the first time in more than two decades that an official designated for a Politburo spot has been voted out of the party’s 205-member Central Committee in elections. Central Committee membership is a prerequisite for a Politburo seat.

“Chen Deming was voted out during multi-candidate elections to the Central Committee,” one source told Reuters. State news agency Xinhua said there were eight percent more candidates than seats in a preliminary vote before the formal election on Wednesday.”

via China’s commerce minister voted out in rare congress snub: sources | Reuters.

21/11/2012

* Will the Chinese people demand democracy any time soon?

If personal income (above US$10,000 per annum) is a criteria for the desire to seek democracy, and if the plan to double the personal income in a decade is met; then by the end of this leadership decade, CPC better get ready to act – in one way or another!

20/11/2012

* China, India to hold strategic economic dialogue this month

Xinhua: “China and India will hold the second round of strategic economic talks in New Delhi on Nov. 26, a Chinese Foreign Ministry spokesperson confirmed Tuesday.

Zhang Ping, head of China’s National Development and Reform Commission, and Indian Planning Commission Deputy Chairman Montek Singh Ahluwalia will co-chair the dialogue.

At a daily press briefing, Chinese Foreign Ministry spokesperson Hua Chunying briefed reporters on the talks.

Hua said the dialogue constituted an important part of the “Year of China-India Friendship and Cooperation” activities.

The two sides will exchange views to seek broader economic cooperation and promote coordination on macroeconomic policy. They will also strenghten cooperation in areas such as investment, infrastructure, high-technology, energy-saving and energy resources.

China and India held the first round of the strategic economic dialogue in Sept. 2011.

When responding to a question on border issues, Hua said specific information of the new round of meetings between special representatives on China-India border issues will be released at an appropriate time.

China and India experienced a border conflict in 1962.

The two countries launched the mechanism of meetings between special representatives on border issues in 2003. The previous round of meetings on border issues was held in India in January.”

via China, India to hold strategic economic dialogue this month – Xinhua | English.news.cn.

20/11/2012

* Only one Politburo Standing Committee members are not technocrats

This major change in background may get reflected in the sort of long-term investments China undertakes. Will there be another three gorges dam? Will highways, railways and power stations be built at the same pace as in the past? Or will social and cultural investments come to the fore?

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18/11/2012

* Southeast Asia calls for talks with China on sea dispute

S E Asia may be joining hands to call China to the discussion table; but China really dislikes being pressured and much prefers one-to-one dialogue and bi-lateral agreements.

Reuters: “Southeast Asian nations displayed a rare show of unity on Sunday against China’s sweeping maritime claims, calling for the first formal talks with Beijing over a sea dispute that has raised tensions and exposed deep divisions in the region.

(L - R)Singapore Prime Minister Lee Hsien Loong, Thailand Prime Minister Yingluck Shinawatra, Vietnam Prime Minister Nguyen Tan Dung, Cambodia Prime Minister Hun Sen and the Sultan of Brunei Hassanal Bolkiah hold hands during the opening ceremony of the 21st ASEAN (Association of Southeast Asian Nations) and East Asia summits in Phnom Penh November 18, 2012. REUTERS-Samrang Pring

As Chinese Premier Wen Jiabao arrived in Cambodia for meetings with Southeast Asian leaders, the 10-member Association of Southeast Asian Nations (ASEAN) appeared determined to avoid a repeat of an embarrassing breakdown of talks in July over competing claims in the mineral-rich South China Sea, its biggest security challenge.

Cambodia’s Prime Minister Hun Sen will tell Wen that ASEAN wants to begin talks on a binding Code of Conduct, aimed at reducing the chance of naval flashpoints, as soon as possible, ASEAN Secretary General Surin Pitsuwan told reporters.

“Prime Minister Hun Sen himself will be discussing with the PM of China tonight and delivering this consensus on the ASEAN side,” Surin said.

“They would like to see the commencement of the discussion as soon as possible because this is an issue of interest, concern and worry of the international community.”

China’s assertive claims in the South China Sea have sown deep divisions within the bloc at a time when military spending in the region is surging and the United States refocuses attention on Asia – a “pivot” that President Barack Obama will reinforce on his visit to the summit on Monday in Cambodia’s capital, Phnom Penh.

Chinese ally Cambodia has used its powers as ASEAN chair this year to restrict discussion of the issue, in line with Beijing’s view that the disputes should be discussed on a bilateral basis. China has said it is willing to discuss the Code of Conduct when the “time is right.”

Diplomats said the Philippines, a close U.S. ally, had invited fellow Southeast Asian claimant states Vietnam, Brunei, and Malaysia to separate talks in Manila to be held later this year or early next year.

“We are trying to make that happen, hopefully in Manila,” Philippine Foreign Secretary Albert del Rosario told reporters.

The other members of ASEAN include Cambodia, Laos, Myanmar, Thailand, Singapore and Indonesia, none of which have claims on the South China Sea.

One Philippine diplomat said the meeting was aimed at resolving issues among the claimant states, such as overlapping economic zones. He voiced frustration with China for delaying the start of talks with ASEAN over the Code of Conduct.

“ASEAN has done its part,” the diplomat said. “Now it is up to China to also come up with its own because when we formally sit down we will present our position to them. In fact we have already written it.””

via Southeast Asia calls for talks with China on sea dispute | Reuters.

See also: 

 

17/11/2012

* Students from China add $5b to US economy

Not only does China own more of US debt than any other country, Chinese students account for the number 1 foreign students in the US. On top of it trade between the two is also at a very high level. Any concerns about military conflict between the US and China must be a remote possibility. They are too inter dependent. Never did the US-Soviet relationship approach anything like that of US-China. I hope I am right!

China Daily: “Booming Chinese-student enrollment in United States colleges and universities contributed nearly $5 billion to the US economy in the 2011-12 academic year, an education expert estimated.

“The rise of China as a contributor to the economies of many US institutions mirrors the increasing influence of China in the global economy,” wrote Rahul Choudaha, director of research and advisory services at World Education Services in an e-mail to China Daily.

World Education Services is a New York-based nonprofit that specializes in international education and research.

“In 2003-04, there were 61,765 Chinese students enrolled in the US, contributing an estimated $1.4 billion to the economy. This ballooned to 194,029, contributing nearly $5 billion, in 2011-12,” Choudaha added.

The number of Chinese students enrolled in US institutions of higher education in 2011-12 increased from 157,558 to 194,029, or 23 percent, over the previous year, a new report shows.

The Open Doors 2012 report, published on Tuesday by the Institute of International Education with support from the Bureau of Educational and Cultural Affairs of the US State Department, reveals that international students in US universities make a significant positive economic impact on the US.

The report also shows that nearly half of Chinese students favor business and engineering, which became the top two majors among Chinese students.”

via Students from China add $5b to US economy |Society |chinadaily.com.cn.

15/11/2012

* China names conservative, older leadership

For the last 20 years, the majority of the standing committee, Politburo (then 9 members)  have been engineers. Now only two of the seven-member of the central committee are experienced engineers, including the president-designate (chemical engineering). The other seven count amongst them the following academic disciplines: law, economics, Korean, politics, and history. One wonders whether the hitherto strong focus on infrastructure and major new engineering will take a back seat?

Reuters: “China’s ruling Communist Party unveiled an older, conservative leadership line-up on Thursday that appears unlikely to take the drastic action needed to tackle pressing issues like social unrest, environmental degradation and corruption.

Xi leads top leadership, meeting press

New party chief Xi Jinping, premier-in-waiting Li Keqiang and vice-premier in charge of economic affairs Wang Qishan, all named as expected to the elite decision-making Politburo Standing Committee, are considered cautious reformers. The other four members have the reputation of being conservative.

The line-up belied any hopes that Xi would usher in a leadership that would take bold steps to deal with slowing growth in the world’s second-biggest economy, or begin to ease the Communist Party’s iron grip on the most populous nation.

“We’re not going to see any political reform because too many people in the system see it as a slippery slope to extinction,” said David Shambaugh, director of the China Policy Program at George Washington University’s Elliott School of International Affairs.

“They see it entirely through the prism of the Soviet Union, the Arab Spring and the Colour Revolutions in Central Asia, so they’re not going to go there.”

Vice-Premier Wang, the most reform-minded in the line-up, has been given the role of fighting widespread graft, identified by both Xi and outgoing President Hu Jintao as the biggest danger faced by the party and the state.”

via China names conservative, older leadership | Reuters.

See also: profile of seven new leaders – BBC

14/11/2012

* Constitution hails reform and opening up China’s “salient feature”

It’s one thing to change the constitution, it’s another to effect real change.  Let’s hope China means it and that by reform it means both economic and political reform.

Xinhua: The Communist Party of China (CPC) has amended its Constitution to hail reform and opening up as the path to a stronger China, and the salient feature of the new period in China, according to a resolution approved by the just-ended 18th CPC National Congress on Wednesday morning.

The inclusion of this statement in the Party Constitution will help the whole Party acquire a deeper understanding of the importance of continuing to carry out reform and opening up and thus pursue this endeavor even more consciously and with greater determination, says the resolution.

It is by carrying out reform and opening up that China has achieved rapid development in the past 30-plus years, and it is reform and opening up that will ensure its future development, it says.

“Only reform and opening up can enable China, socialism and Marxism to develop themselves,” it says.”

via Constitution hails reform and opening up China’s “salient feature” – Xinhua | English.news.cn.

14/11/2012

* China turns to machines as farmers seek fresh fields

Unless China solves the agricultural productivity soon, it will become a global rather than a Chinese problem.

Reuters: “China needs to replace millions of workers who have quit farms for cities, but even its vast state power might not be able to transform the countryside into a network of big industrial farms capable of feeding its growing economy.

A farmer drives a harvester to reap through a corn field in Suibin state farm, Heilongjiang province in this October 16, 2012 file photo. China needs to replace millions of workers who have quit farms for cities, but even its vast state power might not be able to transform the countryside into a network of big industrial farms capable of feeding its growing economy. Pulling together small plots of land to make larger operations and introducing modern mechanical techniques would help boost productivity, vital if China's agricultural sector is to meet soaring domestic food demand.REUTERS-David Stanway-Files

Pulling together small plots of land to make larger operations and introducing modern mechanical techniques would help boost productivity, vital if China’s agricultural sector is to meet soaring domestic food demand.

But efforts to modernize the sector are struggling to gain traction because many farmers are suspicious about giving up their land, and even for some mechanized farms, there are too few workers.

Guaranteeing food security is a major tenet of the ruling Communist Party. The country is self-sufficient in rice and wheat, but is struggling to meet corn demand and has long given up trying to satisfy soy demand. It is the world’s biggest importer of soybeans, and a major buyer of corn.

It has increased grains output for nine straight years and aims to add 50 million tonnes per year by 2020 to the record 571.21 million tonnes of grain harvested in 2011.

“It now needs the government to come out and manage the land of those who give consent, and improve economies of scale,” said Fu Xuejun, a manager at the Baoquanling farm, owned by the Beidahuang Group, a huge state-owned farming conglomerate in Heilongjiang in northeast China.

Some say China should give up its fixation with self-sufficiency and take advantage of growing grains trade internationally.

“China used to emphasize self-sufficiency because the international environment was not favorable,” said Li Guoxiang, researcher with the Rural Development Institute of the China Academy of Social Sciences (CASS). “Food security should have two aims – one is domestic production and the other is the ability to buy overseas.”

via Analysis: China turns to machines as farmers seek fresh fields | Reuters.

See also: https://chindia-alert.org/2012/02/23/china-finally-realises-that-migrant-workers-are-not-a-transient-issue/

14/11/2012

* Respected China banker tipped to head anti-graft effort

Let us hope that Mr Wang does get included in the Central Committee of the Politburo; and that he retains his integrity and zealousness. Unless corruption is reduced substantially within the next five years, the future hold of the CPC on China will gradually but surely slip away.

Reuters: “A respected trade negotiator and former banker is likely to head China’s fight against corruption, a top priority for the world’s second-biggest economy, following his appointment to a key council at the end of the 18th congress of the Communist Party.

Known as “the chief firefighter”, Wang Qishan, 64, sorted out a debt crisis in southern Guangdong province where he was vice governor in the late 1990s. Later, he replaced the sacked Beijing mayor after a cover-up of the deadly SARS virus in 2003.

Wang is now a shoo-in for the elite standing committee, the highest level of decision-making in China, after being elected to the party’s central committee and its graft-battling Central Commission for Discipline Inspection.

“The bad news is that we are going to lose one of the most capable economic affairs managers in the country,” said Bo Zhiyue, a Chinese politics expert at the National University of Singapore.

“The good news is that the new Chinese leadership is really interested in doing something about corruption,” he added. “With the nickname ‘firefighter’, I think he would be one of the most capable leaders of the Politburo Standing Committee.”

via Respected China banker tipped to head anti-graft effort | Reuters.

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