Archive for ‘China alert’

14/11/2012

* How China Has Blocked Vale’s Iron-Ore Megaships

From supportive partner to antagonistic rival?

WSJ: “Brazilian miner Vale SA has spent around $2 billion on a fleet of huge ships to carry its iron ore from Brazil to China. The problem: China won’t let them in.

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Chinese regulators have cited safety concerns over Valemax ships, as the cargo vessels are called. But analysts and industry observers point to a different reason: opposition from a Chinese shipping-industry group dominated by a state-owned company.

The Valemax fight offers a glimpse of one of the biggest battles China’s new leaders will face as they take the reins of the world’s No. 2 economy this week. Economists widely agree that to achieve sustainable growth, Beijing must open its doors to more competition and shake up state-controlled companies.

But the effort will face considerable challenges in a country where the line is blurred between state-owned enterprises and regulators.State-owned enterprises and their top regulator have pledged an overhaul but also have defended their role in the Chinese economy. “This is a special characteristic of China and critical to the development of a socialist economy,” said Wang Yong, director of the State-Owned Assets Supervision and Administration Commission.

State-owned enterprises dominate businesses including telecommunications and banking, leaving consumers with only three mobile-phone operators and lending dominated by state-controlled companies. In the energy sector, just a handful of domestic companies control exploration and production. Foreign car companies must form joint ventures with Chinese partners and share important technology.”

via How China Has Blocked Vale’s Iron-Ore Megaships – WSJ.com.

13/11/2012

* Child journalists grill ministers at China congress

“From the mouth of babes …” If only the official response had been more honest and not from the standard script.

SCMP: “The innocent but pointed questions from a pair of young reporters to officials at China’s Communist Party talks have provided a refreshing break from the usual fare of bland reports and rote answers.

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The plucky 11-year-old reporters from Chinese Teenagers News have become a minor media sensation in their own right by highlighting hot-button issues that typically make authorities squirm, including food safety and rising prices.

Zhang Jiahe, press badge around his neck and “junior journalist” embroidered on his clothing, told China’s housing minister that rising accommodation costs were affecting disposable income – including for new toys.

“Our family has not bought a house but a few friends nearby have faced this problem,” he said at the normally tightly-scripted gathering that heralds the unveiling of a new leadership on Thursday.

Skyrocketing property prices have squeezed China’s growing urban population in recent years even as government controls have slowed their rise.

Meanwhile food safety scandals have put off Zhang’s colleague Sun Luyuan and her friends from eating their favourite snacks.

“I love snacks, but I don’t dare to eat snacks now because we see so many reports these days of problems with food products,” she asked high-level officials, according to the state-run China News Service.

“Why are these kinds of food products available for purchase?”

Many Chinese have become concerned about food safety after a spate of scandals including a vast contamination of milk powder in 2008 that killed six babies and sickened 300,000 others.

“I thought of the question myself,” Sun told reporters this week of last Friday’s press conference. “I think this issue is very important to us so I really wanted to ask this question.”

Sun said the delegates had all been friendly so she was not afraid to put queries to them on behalf of Chinese Teenagers News, which is affiliated with the Communist Youth League.

The pair’s supervisor told reporters they were selected for the assignment because they were among the best journalists at the paper.

For over an hour during a press conference on Monday, both faced forward and sat up straight, seemingly unfazed by the unending flashes as photographers captured their efforts.

But while the child reporters’ inquiries have been acute, they have only received standard answers.

Sun was given a stock response on food standards from officials who pledged the government was addressing the situation and putting proper safety measures in place – a line repeated for years even as the scandals have persisted.

via Child journalists grill ministers at China congress | South China Morning Post.

13/11/2012

* Yuan to surpass Dollar

Inevitably the US dollar will gradually be on a par with the Chinese yuan. And then several decades down the line, it will be relegated to second place.

12/11/2012

* New Chinese leaders in transition

This is a most insightful article about the new cohort of Chinese leaders. Unlike any other country where national leaders come from all ages and backgrounds, the new Chinese leadership share more in common between them than there are differences. It will give our readers a better understanding of what is about to come once the leadership transition is complete next Spring.

Xinhua: “More than 2,200 delegates to the 18th National Congress of the Communist Party of China (CPC) began on Sunday to deliberate a proposed name-list of nominees for the candidates for the Party’s new leadership.

 

Within days, they will elect members and alternate members of the 18th CPC Central Committee, the leading body of the world’s largest ruling party.

China’s leadership transition, which began last year from township level, will surely determine the future of the world’s second largest economy, and influence the world.

A new standing committee of the CPC Beijing municipal committee was elected on July 3, marking the completion of the leadership change at the provincial level.

Since the beginning of the year, main leaders of some central departments and centrally-administered enterprises have been replaced. The seventh plenum of the 17th CPC Central Committee early this month appointed two vice chairmen of the CPC Central Military Commission.

The local leadership transition and central-level reshuffle are preparations for the leadership transition at the 18th Party congress, Dai Yanjun, a scholar on Party building with the Party School of the CPC Central Committee, said.

From central to local levels, the new army of CPC officials bear the distinctive characteristics and personal styles and they are to lead China’s new round of reform and development, said Dai.

GROWING UP UNDER RED FLAG

Among the delegates to the 18th Party congress, a number of CPC officials born in the 1940s, 1950s and 1960s, were under the spotlight.

Dai said they grew up in a totally different historic and social environment from their predecessors, which will, to a great extent, lead to a different administration concept and approach.

Unlike the founding fathers of the People’s Republic of China and previous generations of leading officials who grew up in wartime, the new leadership, mostly born around the founding of New China, grew up in peacetime.

This allowed them to have a complete and systematic education of the mainstream socialist ideology, and shaped their worldview and value orientation.

In their youth, they underwent severe tests during the Great Leap Forward in 1958 and “three years of natural disasters” (1959-1961). The turbulent Cultural Revolution (1966-1976) was a hard time for them. Some, in their teens, were forced to live and work in the poorest villages after their parents were persecuted.

“In short, they all went through starvation and had the experience of working hard in rural areas,” said Dai. “They are victims of the Cultural Revolution. They witnessed the ups and downs of China’s development and the success of the national rejuvenation. They are firm supporters of reform and opening up.”

The leading officials born after 1950 and with experiences as “educated youth” are an idealistic and realistic group. They are closely watched by foreigners who are looking into China’s future, said Cheng Li, director of research and a senior fellow at the John L. Thornton China Center of the Brookings Institution.

FULL UNDERSTANDING OF NATIONAL CONDITIONS

Elites have become the backbone of the CPC and the country. The people elected into the top leadership at the 18th Party congress will showcase the Party’s governing ideals and value orientation in the future, said Dai.

A notable feature of the leading officials born after the founding of New China, no matter what families they are from, is that they all have grassroots working experiences. They had worked with ordinary farmers, workers and soldiers, and been promoted step by step.

Such experiences are valuable, said Dai. This gives them a full understanding of the society and country, so that they will address state issues from the viewpoint of common people and focus more on improving people’s livelihood.

Chinese leader Hu Jintao said, at the 90th founding anniversary of the CPC last year, that alienation from the people poses the greatest risk to the Party after it has gained political power.

At the ongoing Party congress, Hu stressed efforts to “put people first, exercise governance for the people and always maintain close ties with them.”

China is undergoing rapid social transformation and many thorny problems emerged first at grassroots levels.

The leading officials were working at grassroots levels when China launched the reform and opening-up drive and profound changes took place in social interests and structure, Dai said.

They met with and handled quite a lot of new problems, Dai said. “Such working experiences enable them to know what the people need most. This is an ability that cannot be learned from books and also their big advantage.”

PROFESSIONAL BACKGROUND AND INTERNATIONAL VISION

Another feature of the leading officials is that they have abundant learning experiences and a sound professional background.

Many of them went to the best colleges in China after the end of the Cultural Revolution, and some others took in-service educational programs and managed to acquire master and doctorate degrees. Well-educated officials are nowadays common in central and local authorities.

With the academic degrees and professional background, they meet better the requirements of the current economic and social development, Dai said.

A feature of their academic backgrounds is that more people studied humanities and social science, and some of them majored in political science, law and management, giving them confidence in pushing forward reform in all respects, Cheng Li said.

Unlike the previous generations who studied in the Soviet Union, many of the leading officials were sent or chose to study in the United States and developed European countries, gaining a broad international vision.

Xie Chuntao, a professor with the Party School of the CPC Central Committee, said that the leading officials are not rigid or conservative, and they will guarantee the adherence to reform and opening up and the path of socialism with Chinese characteristics.

“They participated in, witnessed and benefitted from reform and opening up, and know what was it like before, so none of them will look back,” said Xie.

12/11/2012

* Hu’s calls on household registration reform face opposition

As usual, local authorities go against national strategy and interests.

SCMP: “President Hu Jintao’s calls for faster reforms to the out-of-date household registration system face strong resistance from local government officials, the Jinghua Times reported on Monday.

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Household registration, or hukou, which covers every family in mainland China, records people as either town dwellers or rural peasants. Many blame it for causing discrimination against peasants who move to cities, where their identity prevents them from gaining access to services like health care and education for their children.

At the 18th party congress, which continues this week in Beijing, Hu has called for faster reform of the registration system and expanded public welfare coverage for all citizens, whatever their household origin.

But scholars say the reform effort is encountering strong opposition from local government officials, because it would unleash financially ruinous demands for social welfare spending, the Jinghua Times newspaper said.

Hu Xingdou, a professor of economics at the Beijing Institute of Technology, said the state council has issued several orders for reforms since 2001, but they were blocked by fierce resistance at the local government level.

Reforms bring heavy financial pressure on local governments, says agricultural economics scholar Zheng Fengtian. The social welfare costs needed to cover tens of millions of rural migrants, when they arrive in big cities, are too heavy for local governments to handle, he said.

A blue paper from the Chinese Academy of Social Sciences forecasts that 500 million peasants will move from the countryside to the mainland’s cities within the next 20 years. Including them in social welfare programmes will cost between 40 trillion and 50 trillion yuan (HK$49 trillion and HK$62 trillion), it estimates.

This situation will be especially intense in coastal regions, where the mobile population will surpass the number of city residents, Zheng added.

Professor Hu said market mechanisms would solve the problems that concern local officials. “When [rural migrants] find cities overcrowded, and the unemployment rate and housing prices too high, they will eventually leave the cities,” he said.

He warned that delaying reforms will only increase the risks, saying “what matters most is the central government’s determination on reform”.

There are currently 271 million people in the mainland who are not living in the location of their household registration, according to the National Bureau of Statistics.

Dang Guoying, a researcher with the Chinese Academy of Social Sciences, said “without proper reform of household registration, peasants cannot benefit from urbanisation, which will intensify social disparities and eventually bring stagnation to China’s development”.”

via Hu’s calls on household registration reform face opposition | South China Morning Post.

See also:

12/11/2012

* Buried in a bleak text, hope for a Chinese political experiment

Thanks to Reuters for discovering this ‘gem’.

Reuters: “Chinese Communist Party leader Hu Jintao‘s opening speech at the ongoing 18th Party Congress was a disappointment to many listeners, offering no major signals that the leadership is willing to advance political reform.

People walk in front of a large screen displaying propaganda slogans on Beijing's Tiananmen Square November 12, 2012. REUTERS/David Gray

The 64-page keynote speech he delivered was couched in the usual conservative and Marxist terminology, but one paragraph buried deep in the text was just what proponents of a long-running experiment in public policy consultations have been waiting for.

The section in question urged the ruling party to “improve the system of socialist consultative democracy”.

Academics and officials say the mention of “consultative democracy” is the first ever in such an important document, and it is seen by some as a strong endorsement of the long-standing experiment with this form of democracy, in Wenling, a city of 1.2 million in Zhejiang province, south of Shanghai.

The city has formalized public consultation on public projects and government spending at the township level, although there is no voting and decisions remain the preserve of the state machinery.

Xi Jinping, almost certain to be named the next party general secretary on Thursday, was party boss in Zhejiang in 2002-2007, as the Wenling project deepened.

The congress report is the most important political speech in China. Delivered once every five years by the party’s general secretary, it sets down political markers and charts a development course for the coming five to 10 years.

“Of course this is a good thing,” said Chen Yimin, a Wenling propaganda official who has been a driving force behind the system of open hearings, where citizens can weigh in on things like proposed industrial projects and administrative budgets – providing at least a bit of check on their local officials.

“This shows that the democratic consultations… that we have been doing for 13 years since 1999, have finally gained recognition and approval from the centre. It opens up space for further development. It says our democratic consultations are correct,” he said by phone from Zhejiang.

Chen Tiexiong, a delegate to the congress and party boss of Taizhou, the city that oversees Wenling, which itself has rolled out Wenling-style consultations in recent years, agreed.

“I looked at that part of the speech closely because in terms of promoting democratic politics Taizhou has done a lot, and it has been in the form of consultative democracy,” he told Reuters on the sidelines of the congress.”

via Buried in a bleak text, hope for a Chinese political experiment | Reuters.

10/11/2012

* China’s ‘most polluted city’ breathes cleaner air

As Western organisations know, “what you don’t measure you cannot manage” and “incentives matter”. So China’s local authorities are beginning to realise, as evidenced at Linfen. Assuming this notion is being espoused across China, then it is very good news indeed for the environment.

China Daily: “Fan Lifen clearly recalls the days when her hometown was shrouded in darkness, with the sun barely visible through a thick curtain of smog.

“The situation would worsen in the winter, when households would burn coal for heating,” recalls Fan, a native of the city of Linfen in North China’s Shanxi province.

Rapid industrialization and urbanization in the past two decades have saddled cities like Linfen with heavy environmental burdens, damaging the health of local residents and fueling complaints.

However, Linfen is making efforts to turn its situation around.

“The air in Linfen has improved tremendously,” said Liu Dashan, spokesman for the Shanxi Provincial Environmental Protection Bureau.

The dramatic turnaround started when Linfen was listed as the “most polluted” among 113 major Chinese cities for three consecutive years from 2003 to 2005.

The local government has since launched a cleanup campaign, closing 1,056 factories and imposing stricter environmental standards on those that are still operating, according to Mayor Yue Puyu.

Substandard mines have been shut down and smaller ones have been merged into competitive mining conglomerates, Yue said.

Residents have been weaned off of coal burning, with natural gas heating introduced to more than 85 percent of the city’s households, said Yang Zhaofen, director of the city’s environmental protection bureau.

The changes were made possible by changing the way the performance of local officials is evaluated, with promotions and other rewards linked to their efforts to improve the city’s environment.

Officials have not only closed down heavily polluting factories, but also taken action to add “green” features to the city. A large park was opened on the banks of the Fenhe River last year, helping to absorb pollutants and purify the air.

Over the years, China’s economic growth has been fueled by over exploitation of natural resources, resulting in environment degradation. A worsening environment has prompted the government to exert greater efforts on environmental protection, replacing the practice of achieving growth at all costs.

President Hu Jintao said in a speech delivered to the 18th Communist Party of China (CPC) National Congress on Thursday that China should “give high priority to making ecological progress” and “work hard to build a beautiful country and achieve lasting and sustainable development.”

Linfen is a part of Shanxi’s efforts to repair its environment. The province, which provides over 70 percent of China’s coal, is slowly turning toward sustainable development.

More than 3,000 mines have been shut down since reforms were initiated in 2008, according to Wang Hongying, chief of the institute of macroeconomics under the provincial development and reform commission.

In addition to consolidating coal mines, the province has also made changes to the coal tax and fostered substitute industries, Wang said.

“We have set an example for other provinces. Although difficulties may emerge in the future, reforms will continue and we have high hopes for them,” Wang said.”

via China’s ‘most polluted city’ breathes cleaner air |Society |chinadaily.com.cn.

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

09/11/2012

* Just one joke in 10 years, but Hu has the last laugh

Which world leader can look back at his/her past decade in power and point to the achievements that president Hu can?

Extract from The Times, London, 9 November, 2012 – http://www.thetimes.co.uk/tto/news/world/asia/article3594528.ece

Hu Jintao, general secretary of the Central Committee of the Communist Party of China (CPC) and Chinese president, delivers a keynote report during the opening ceremony of the 18th CPC National Congress at the Great Hall of the People in Beijing, capital of China, Nov. 8, 2012. The 18th CPC National Congress opened in Beijing on Thursday. (Xinhua/Rao Aimin)

“China’s economy was the world’s sixth biggest when Hu Jintao took power. A decade later, it is second to the US and gaining.

Most Chinese could only dream of owning a house or a car when Mr Hu took over. In 2002, just 3.2 million vehicles were sold; the number reached 18.5 million last year. Traffic jams seem endless and 65,000 miles of road have been laid — up from just 20,000. China overtook the US as the world’s biggest auto market in 2009. Only 16 people out 100 owned a mobile phone in 2002; today 74 in 100 have one.

About 59 million Chinese used the internet in 2002. Last year, nearly 520 million surfed cyberspace. The censors are meticulous in weeding out conversations deemed to be subversive. Perhaps more surprising is that such open discussion is allowed at all. Incomes have nearly tripled.

He ensured his popularity among 800 million peasants — and possibly his place in history — by abolishing a 2,600-year-old agricultural tax levied by emperors on every farming family.He put a man in space, launched an aircraft carrier (Soviet-made, admittedly) and developed technology to shoot down a satellite.

Some 200 protests erupt daily and the gap between rich and poor has widened to threaten Mr Hu’s cherished stability. In one of his jails Liu Xiaobo, the 2010 Nobel Peace Prize winner, serves 11 years. Mr Hu pledged to tackle corruption and arrested two Politburo members. An average of 94 officials are picked up every day for such offences. It’s a drop in the ocean of venality.

He once quipped: “A fall into the pit, a gain to your wit.” His rule was an odd mix of bold decisions and stasis.”

09/11/2012

# Positive effects of Chinese tea?

This photo is from the current 18th National Congress of the Chinese Communist Party. Obviously it was taken during one of the breaks. No one would dare talk or yawn if a VIP speaker was on the podium. But note, everyone is drinking Chinese tea; not water, not beer, or Coca Cola. Does that explain why the Chinese leadership are relatively relaxed and calm and so effective?

Delegates sit at the stage before the opening ceremony of 18th National Congress of the Communist Party of China

06/11/2012

* Chinese State Media Survey: It’s the Wealth Gap, Stupid

Close on the heels of a survey regarding happiness, comes this more serious survey. The new leadership should heed the results:

  1. Reducing the wealth gap
  2. Reducing corruption
  3. Reforming economics

WSJ: “With China’s once-a-decade leadership transition set to get underway on Thursday, pundits and scholars around the globe are speculating about what Beijing’s new top brass will — or won’t — do to tackle the country’s many problems. But what change are Chinese people themselves expecting to see?

If an online survey conducted by the state-run China Youth Daily newspaper is anything to go by, the answer is one that recalls the ideological roots, if not the recent reality, of China’s ruling party: income redistribution.

Of 11,405 Chinese Internet users polled by the Social Survey Center of China Youth Daily last week, 66.6% said they thought the country was likely to pursue reforms related to income distribution in the future, the newspaper reported on Tuesday (in Chinese). Second on the list were reforms aimed at curbing corruption (57.8%), followed by reforms of the economic system (53.5%) in third.

The results exceeded 100% because respondents were allowed to choose multiple options. Nearly half of respondents were born in the 1980s, with 17.7% born in the 1990s and the rest born in the 1970s, the newspaper said, adding that most of those who took part in the poll earned less than 5000 yuan ($800) per month.”

via State Media Survey: It’s the Wealth Gap, Stupid. – China Real Time Report – WSJ.

See also: https://chindia-alert.org/2012/11/05/china-authorities-pushing-happiness-amid-rising-discontent/

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