Archive for ‘China alert’

29/08/2012

* In China, Sons Fight Railways Ministry Over Crash

NY Times: “Henry Cao has stark memories of the moment the high-speed train he was riding rear-ended another last summer in the eastern city of Wenzhou: the pleasantly hypnotic rocking that gave way to a jolt he likened to an earthquake, followed by blackness and the sensation of falling as the car plummeted 100 feet off a viaduct.

Henry Cao, left, and his brother, Leo, at the site of a train crash that killed their parents and injured Henry in Wenzhou last year.

“We were flying like rag dolls,” he said.

The crash killed 40 passengers, injured 191 and shook the nation’s confidence in its ambitious high-speed rail system. Mr. Cao, 33, a Chinese-American importer from Colorado, barely survived; he lost a kidney and his spleen, and head injuries have left him mired in a perpetual daze, unable to stay awake for more than an hour or two. His parents, naturalized American citizens taking him on a triumphant tour of their native land, were killed.

As Mr. Cao has struggled to recover over the past year, he has found himself drained by a different sort of battle: trying to wrest compensation from the Ministry of Railways, an unbending government behemoth unaccustomed to dealing with determined foreign citizens.

This month Mr. Cao returned to China for the first time since the accident. He and his brother, Leo, came to collect their parents’ remains and to press negotiations with the ministry. “They know how to wear you down,” said Leo Cao, 30. “First they let you scream and yell, then they stall you, and finally they tell you vague and empty words. Now they say, ‘You’re lucky you’re getting anything.’ ”

Their painful and politically fraught odyssey has highlighted the workings of an omnipotent ministry that employs more than two million people and rivals the Chinese military in size and influence. The experience has been disorienting for the Cao brothers, who left China as adolescents two decades ago. “This place is not how I remember it,” said Henry Cao, speaking faintly as his eyes flickered and lost focus. “Everyone is rushing around to make money. Life here is cheap.”

The ministry, which runs its own court system and is largely impervious to oversight, has long been dogged by accusations of corruption. A former rails minister, Liu Zhijun, who was fired five months before the accident, is expected to go on trial next month for charges of taking millions of dollars in bribes and other unnamed “disciplinary violations.”

Zhang Kai, a lawyer who represented a passenger sentenced to three years in prison for slapping a train conductor, described the ministry as a “monster left over from the planned economy era” that resists reform or challenges to its authority. “It is common knowledge that the ministry is responsible for generating maximum profits while supervising itself,” Mr. Zhang said.

In a report released in December, government investigators placed the blame for the Wenzhou accident on flaws in signaling equipment. Investigators say the ministry bypassed safety regulations in its haste to create the world’s largest high-speed railroad network.”

via In China, Sons Fight Railways Ministry Over Crash – NYTimes.com.

29/08/2012

* China’s Exports to U.S. Gain Traction

WSJ: “China’s exports to Europe have remained weak during the traditional peak season for shipping, but the country’s trade with the U.S. appears to have more traction, according to the chief executive officer of Maersk Lines, the world’s largest container shipping group.

Søren Skou, who took the helm this year of the container division of the Denmark’s A.P. Møller Maersk A/S said in an interview Wednesday with The Wall Street Journal that his confidence in global trade has deteriorated since June, mostly because of recessionary conditions in Europe, but he said volumes world-wide are likely to expand 4% for the full year compared with 2011.

August is a critical month for the containerized shipping industry, which depends on exports to the West from China for the bulk of its activity. Mr. Skou said his customers appear to be positioning for satisfactory holiday spending in the U.S.—but not Europe.

“The customers are expecting a Christmas season [in the U.S.], which doesn’t appear to be the case in Europe,” he said.”

via China’s Exports to U.S. Gain Traction – WSJ.com.

Some glimmer of hope for (part of) world economy!

29/08/2012

* China’s aircraft carrier: in name only

Reuters: “When Japanese activists scrambled ashore on a disputed island chain in the East China Sea this month, one of China’s most hawkish military commentators proposed an uncharacteristically mild response.

A half-built Chinese-owned aircraft carrier Varyag, which is to be converted into a floating casino in China, is towed and escorted by a flotilla of tugboats and pilot ships past the Leandros Tower built in 419 B.C. on the Bosphorus Straits in Istanbul November 1, 2001. REUTERS-Fatih Saribas-Files

Retired Major General Luo Yuan suggested naming China’s new aircraft carrier Diaoyu, after the Diaoyu islands in the East China Sea. It would demonstrate China’s sovereignty over the islands known as the Senkakus in Japanese, he said.

For a notable hardliner, it was one of the least bellicose reactions he has advocated throughout a series of territorial rows that have soured China’s ties with its neighbors in recent months.

More typical was General Luo’s warning in April that the Chinese navy would “strike hard” if provoked during a dispute with the Philippines over Scarborough Shoal in the South China Sea.

One possible reason for General Luo’s restraint, military analysts say, is he knows it could be towards the end of the decade before China can actually deploy the new carrier to the disputed islands or any other trouble spot.

Despite public anticipation in China that the carrier — a refitted, Soviet-era vessel bought from Ukraine — will soon become the flagship of a powerful navy, defense experts say it lacks the strike aircraft, weapons, electronics, training and logistical support it needs to become a fighting warship.

“There is considerable uncertainty involved, but it could take anything from three to five years,” said Carlo Kopp, the Melbourne, Australia based co-founder of Air Power Australia, an independent military think tank.”

via Analysis: China’s aircraft carrier: in name only | Reuters.

See also: China’s military presence

29/08/2012

* China city party chief ‘fled with money’

BBC News: “A former top official of a city in northeast China has fled the country – reportedly with millions of dollars, Chinese reports say.

A person handling Chinese yuan bills

Wang Guoqiang, who was party secretary of Fengcheng city in Liaoning province, left for the United States in April with his wife, the People’s Daily said.

Local officials said Mr Wang, who was being investigated for corruption, had been removed from his post, it said.

Several reports cited 200m yuan ($31.5m; £20m) as the amount taken.

The local officials did not elaborate on allegations that he had embezzled and transferred the funds to the US, where his family is believed to be.

But rumours surrounding the case, the latest in a series of corruption scandals, have been circulating online for some time.

According to the city’s website, Mayor Ma Yanchuan took over as Fengcheng party secretary earlier this month.

Premier Wen Jiabao has repeatedly called corruption the biggest threat to Chinese Communist Party rule.

Corruption among officials remains a huge source of anger among China’s population, says the BBC’s Martin Patience in Beijing.

While the finances of the top leaders are off limits, many other senior officials have been brought down by scandals, says our correspondent.”

via BBC News – China city party chief ‘fled with money’.

As this article says: “Premier Wen Jiabao has repeatedly called corruption the biggest threat to Chinese Communist Party rule.”

See also: Corruption by officials  is what makes Chinese citizens mad

27/08/2012

* Gu Kailai verdict set for Monday

FT: “The verdict in the murder trial of the wife of disgraced Chinese politician Bo Xilai will be announced on Monday, wrapping up a key phase in the Communist party’s efforts to deal with its biggest internal crisis in decades.

Mr Bo’s wife Gu Kailai and Zhang Xiaojun, a former family aide and co-defendant, were tried in the eastern city of Hefei on August 9 on charges of murdering Neil Heywood, the Bo family’s British business agent.

Gu Kailai Body Double

The verdict would be announced at 9am on Monday, said the Hefei Intermediate People’s Court.

Ms Gu is widely expected to be found guilty because Chinese state media had spoken of “irrefutable evidence” against her even before the trial started, and she confessed in court, according to observers present at the trial.

Chinese courts, which play a growing role in commercial disputes in the country, enjoy little or no independence in cases that are considered politically sensitive or touch upon the interests of government or party officials, well-connected individuals or state enterprises.

Ms Gu’s trial, which lasted for less than eight hours, was tightly stage-managed, with authorities barring access for foreign media.

The official accounts of the proceedings have triggered doubts and debate over the validity of Ms Gu’s reported confession and other details of the trial.

Two security experts familiar with facial recognition software said the person shown in state television footage of the courtroom was not Ms Gu.

…”

via Gu Kailai verdict set for Monday – FT.com.

See also:

27/08/2012

* $135 – $12 = the pay gap the West can’t bridge

The Times: “We can’t compete with China on wages and are living beyond our means. We must retrench before we grow again

Two numbers — $135 and $12 — explain why Britain’s and Europe’s economies are stagnant or shrinking. Pundits and economists have lined up with suggestions about how to stimulate our economy: more quantitative easing; clever schemes such as “funding for lending”; while others say enough of austerity, let’s stop the cuts. But all that assumes that growth is the natural order of things.

None of these proposals will solve our problems because they ignore the two numbers $135 and $12. The first is what the average worker in the West earns per day; the second what the average worker in urban China earns.

This inequality in pay is the main reason our economy is in peril. What entitles the rich world’s 500 million workers to salaries ten times greater than the 1.1 billion workers in urban bits of the developing world who toil and study so much harder, let alone nearly 100 times greater than the 1.3 billion adults who live in rural poverty?

In the global marketplace it is now impossible to preserve well-paid jobs for Westerners. Many of those jobs have gone or are going south or east. In the 1950s the most successful company by market capitalisation was General Motors. In 1955 it employed nearly half a million Americans and 80,000 foreigners. Today Apple, the world’s biggest company, employs 4,000 Americans and more than 700,000 overseas contractors. And in jobs that have not moved, wages are under severe downward pressure: US high- school dropouts now earn less in real terms than their dropout grandfathers.

It was not always like that. For 55 years after the Second World War annual growth in jobs in Western economies was about 2 per cent and real wages grew by about 3 per cent year after year. The idea that we would all earn more without having to work harder, and that there would be jobs for our children, became a democratic “right”. But this right is now broken because, starting in 1990, developing nations ditched the failed socialist and Marxist policies that kept them poor. Since 2000 China’s economy has quintupled — while jobs, wages and GDP growth over the cycle for Western economies was, with few exceptions, negative.

For the first time in centuries we have to compete on a level playing field. We cannot compete on wages. Do we have other advantages that will protect our living standards? Aren’t Europe’s workers better educated? More creative? No: 10,000 science PhDs graduated from Chinese universities last year. In 1995, global patents granted to China amounted to 0.5 per cent of the total; in 2010 it had reached 9 per cent and is rising exponentially. Our best universities are educating many future business leaders and scientists of developing countries. Our advantage in physical and intellectual capital is eroding fast. What the developing world does not create, it can steal; the global value of counterfeit and pirated goods is forecast to rise by $1.5 trillion by 2015.

Most importantly, we consume more and invest less. China’s investment levels (however misdirected some of those investments may be) have risen to almost half of GDP, while the West is at about 15 per cent and falling. The truth is that Western nations have been living beyond their means. Our build-up in total debt — corporate, individual and government — has now become an enormous overhang. The UK is more indebted than Greece, Spain or Italy and only Japan and Ireland’s total debt per head is greater than ours.

So how do we get out of this mess?

…”

By Jon Moynihan, , 15 August 2012 | PA Consulting Group

via The Times – $135 – $12 = the pay gap the West can’t bridge, 15 August 2012 | PA Consulting Group.

27/08/2012

* Car plate applicants exceed 1m in Beijing

China Daily: “A record 1-million-plus people in Beijing competed for fewer than 20,000 registration certificates qualifying them to buy cars through a lottery system on Sunday.

With a fixed number of car registrations issued each month and a lengthening waiting list, many potential car buyers are losing hope.

Some 1.05 million qualified applicants entered the registration lottery in August – 110,000 of them for the first time – and only 19,926 registrations will be issued, the city office in charge of the lottery system said on Saturday.

One in every 53 applicants will get the registrations, 80 percent fewer than in January last year, when Beijing introduced the lottery system to cap new car ownership at 240,000 a year.”

via Car plate applicants exceed 1m in Beijing |Society |chinadaily.com.cn.

27/08/2012

* China keen to boost mutual investments with India

The Hindu: “Calls to reshape ‘increasingly unsustainable’ trade model amid growing imbalance

China has called for a move to boost mutual investments with India as a measure to strengthen trade ties and reshape what officials have acknowledged is an increasingly unbalanced and strained business relationship, as trade talks between both countries begin in New Delhi on Monday.

The Chinese Commerce Ministry told The Hindu in a written interview ahead of the visit of Commerce Minister Chen Deming, who will lead the Chinese delegation in Monday’s talks, that the relatively strong foreign exchange reserves of both countries and an increasing desire of businesses to go overseas should drive the future of trade ties.

“There is great space for China and India to cooperate in mutual investment,” the Commerce Ministry said.

Both countries will hold the ninth round of the Joint Economic Group (JEG) dialogue in New Delhi on Monday. India’s trade deficit and Chinese concerns about the investment environment in India, particularly in the power and telecom sectors, is expected to be at the focus of the talks.

In an apparent attempt to ease concerns about strains in the trade relationship, Chinese officials have suggested a new approach. Boosting mutual investments would be one way of shifting the relationship from the current model. Trade over the past decade, which has grown from a few billion dollars to US$ 74 billion last year when China became India’s biggest trade partner, has largely been driven by Chinese appetite for Indian ores and Indian need for Chinese machinery.”

via The Hindu : News / National : China keen to boost mutual investments with India.

25/08/2012

* 37 criminal suspects in Angola sent back to China

China Daily: “A total of 37 suspects involved in violent crimes targeting Chinese in Angola of west Africa were sent back to China under police escort Saturday.

They arrived in Beijing by air on Saturday morning.

The suspects, all of Chinese nationality, were allegedly involved in kidnapping, robbery, blackmail, human trafficking and forcing women into prostitution, said the statement from the Ministry of Public Security.

Chinese police sent a special team to Angola and, with the cooperation of local police, they cracked 12 criminal organizations and 48 criminal cases, rescuing 14 Chinese victims, the statement said.

The victims also returned to China on the same flight.

It was the first time Chinese police launched a large-scale action against crimes targeting Chinese in Africa, setting a new example of cooperation with African police, said Liu Ancheng, head of the criminal division under the ministry, at the airport.

Early this year, the ministry received a request from Chinese Embassy to Angola to help curb violent crimes targeting nationals in the African state since last year.

During the visit of Angolan Minister of Interior Sebastiao Jose Antonio Martins to China in April, Chinese Minister of Public Security Meng Jianzhu reached an agreement with him on sending police to help solve the problem.

According to investigations, a number of Chinese nationals were involved in serious crimes and handed out extreme brutality such as beating, burning victims after pouring gasoline on them and burying victims alive, to extract ransoms. Some were found taking young women to Angola and forcing them into prostitution.

In August, more than 400 Angolan police officers and Chinese police teams launched a joint raid against the gangs and arrested the suspects.

Also, local police arrested 24 accomplices in Fujian and Anhui provinces.

Police are confident and capable of improving law enforcement cooperation with foreign counterparts and protecting the safety of its citizens abroad, Liu said.”

via 37 criminal suspects in Angola sent back to China[1]|chinadaily.com.cn.

25/08/2012

* Authorities deny remarks relating to fatal bridge collapse

Xinhua: “Authorities in Harbin have denied that officals had previously said no contractors could be found to take possible responsiblity for a fatal bridge collapse.

A ramp on the multi-million-dollar bridge in Harbin, the provincial capital of Heilongjiang in northeast China, collapsed early Friday morning, causing four trucks to plunge 30 meters to the ground, killing three people and injuring five.

Following the collapse, there were claims on the internet that officials from the Harbin municipal commission of housing and urban-rural development said the bridge construction headquarters had dissolved and no contractors could be found.

On Saturday, Huang Yusheng, secretary general of the Harbin municipal government, denied there had been any such remarks.

Huang said the government had provided relevant materials from the designer, contractor and supervisor to the investigation team. After the investigation ends, names of the designer, contractor and supervisor will be made public, he told a press briefing.

On Friday, Huang suggested that overloading of some vehicles could be one of the possible causes for the accident. The remarks drew a fierce backlash from the public as many saw it as an attempt to shirk responsibility.

The collapse of the bridge, which cost 1.88 billion yuan (296 million U.S. dollars) and opened to traffic in November 2011, has also caused public outcry over the safety of public facilities and inadequate management and supervision by government agencies.”

via Authorities deny remarks relating to fatal bridge collapse – Xinhua | English.news.cn.

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