Archive for ‘China alert’

19/07/2012

* In China, wait leads to standoff with officials

San Jose Mercury News: “The Chinese sometimes display a remarkable tolerance for those who cut in line but such forbearance apparently has its limits when queue-jumpers are government officials.

Thousands of people threw water bottles and blocked traffic at a popular nature preserve in northeastern China on Sunday after word spread that the arrival of top Communist Party leaders was causing an hours-long wait to visit a scenic lake. It was one of a string of brash confrontations in recent months between the authorities and Chinese citizens.

The infuriated crowd surrounded the vehicles carrying the government entourage and refused to let them pass, according to scores of microblog posts sent out by those waiting to ascend Changbai Mountain in Jilin Province. The three-hour standoff drew police officers and soldiers, some of whom reportedly beat recalcitrant protesters.

According to one witness, thousands of people chanted for a refund of the $20 entry tickets and later demanded that the officials leave their besieged vehicles and apologize. “Fight privilege!” the witness wrote.

The accounts, posted on Sina Weibo, a Twitter-like service, were later deleted by the company’s in-house censors but many postings were saved and reposted on overseas websites like Ministry of Tofu and China Digital Times whose servers cannot be reached by Chinese censors.”

via In China, wait leads to standoff with officials – San Jose Mercury News.

See also:

19/07/2012

* China pledges $20bn in credit for Africa at summit

BBC News: “China has pledged $20bn (£12.8bn) in credit for Africa over the next three years, in a push for closer ties and increased trade.

President Hu Jintao made the announcement at a summit in Beijing with leaders from 50 African nations. He said the loans would support infrastructure, agriculture and the development of small businesses.

The Chinese leader also called for better co-operation with African countries on international affairs.

As developing nations, China and countries in Africa should work better together in response to “the big bullying the small, the strong domineering over the weak and the rich oppressing the poor” in international affairs, said Mr Hu.

The loan is double the amount China pledged in a previous three-year period in 2009, since which time China has been Africa’s largest trading partner.

Trade between the two hit a record high of $166bn (£106bn) in 2011, Chinese Commerce Minister Chen Deming wrote in the China Daily newspaper, ahead of the two-day forum.

“We want to continue to enhance our traditional friendship… rule out external interference and enhance mutual understanding and trust,” said Mr Hu.”

via BBC News – China pledges $20bn in credit for Africa at summit.

19/07/2012

Will justice be done, and seen to be done?

Also see: https://chindia-alert.org/2012/04/14/police-reinvestigate-death-of-neil-heywood-according-to-law/

18/07/2012

* As China Talks of Change, Fear Rises on Risks

NY Times: “A heavyweight crowd gathered last October for a banquet in Beijing’s tallest skyscraper. The son of Mao Zedong’s immediate successor was there, as was the daughter of the country’s No. 2 military official for nearly three decades, along with the half sister of China’s president-in-waiting, and many more.

“All you had to do,” said one attendee, Zhang Lifan, “was look at the number of luxury cars and the low numbers on the plates.”

Most surprising, though, was the reason for the meeting. A small coterie of children of China’s founding elites who favor deeper political and economic change had come to debate the need for a new direction under the next generation of Communist Party leaders, who are set to take power in a once-a-decade changeover set to begin this year. Many had met the previous August, and would meet again in February.

The private gatherings are a telling indicator of how even some in the elite are worried about the course the Communist Party is charting for China’s future. And to advocates of political change, they offer hope that influential party members support the idea that tomorrow’s China should give citizens more power to choose their leaders and seek redress for grievances, two longtime complaints about the current system.

But the problem is that even as the tiny band of political reformers is attracting more influential adherents, it is splintered into factions that cannot agree on what “reform” would be, much less how to achieve it. The fundamental shifts that are crucial to their demands — a legal system beyond Communist Party control as well as elections with real rules and real choices among candidates — are seen even among the most radical as distant dreams, at best part of a second phase of reform.

In addition, the political winds are not blowing in their favor. The spectacular fall this spring of Bo Xilai, the Politburo member who openly espoused a populist philosophy at odds with elite leaders, offered an object lesson in the dangers of challenging the status quo. And official silence surrounding his case underscores high-level fears that any public cracks in the leadership’s facade of unity could lead its power to crumble.

As a result, few people here expect the party to willingly refashion itself anytime soon. And even those within the elite prepared to discuss deeper changes, including the second-generation “princelings,” as they are known, have a stake in protecting their own privileges.

“Compare now to 1989; in ’89, the reformers had the upper hand,” said Mr. Zhang, a historian formerly associated with the government’s Chinese Academy of Social Sciences, referring to the pro-democracy student protests that enjoyed the support of a number of important party leaders but were crushed in Tiananmen Square. “Twenty years later, the reformers have grown weaker. Now there are so many vested interests that they’ll be taken out if they touch anyone else’s interests.”

To Mr. Zhang and others, this is the conundrum of China’s rise: the autocracy that back-flipped on Marxist ideology to forge the world’s second-largest economy seems incapable of embracing political changes that actually could prolong its own survival.

Much as many Americans bemoan a gridlocked government split by a yawning partisan gap, Chinese advocates for change lament an all-powerful Communist Party they say is gridlocked by intersecting self-interests. None of the dominant players — a wealthy and commanding elite; rich and influential state industries; a vast, entrenched bureaucracy — stand to gain by ceding power to the broader public.

Many who identify with the reform camp see change as inevitable anyway, but only, they say, because social upheaval will force it. In that view, discontent with growing inequality, corruption, pollution and other societal ills will inevitably lead to a more democratic society — or a sharp turn toward totalitarianism.

An overriding worry is that unless change is carefully planned and executed, China risks another Cultural Revolution-style upheaval that could set it back decades.”

via As China Talks of Change, Fear Rises on Risks – NYTimes.com.

See also: https://chindia-alert.org/prognosis/chinese-challenges/

17/07/2012

* Chinese Businesses Get Advice on U.S. Investment

WSJ: “Looking to ease the way for Chinese investment in the U.S., the U.S. Chamber of Commerce is advising Chinese businesses not to count on “personal relationships” with government officials as a key to success.

The advice came in a report prepared by the U.S. Chamber for an investment forum Tuesday in Beijing. The event, co-hosted by the China Center for International Economic Exchanges, a Chinese government think tank, was expected to draw about 400 business executives and government officials, current and past.

A subsidiary of Aviation Industry Group of China last year bought Cirrus Industries, a Minnesota maker of propeller aircraft.

The U.S. Chamber said it was acting on its own initiative, though the U.S. government, seeking to lift economic growth, also has been trying to encourage Chinese investment. Chinese business leaders regularly say they are interested in investing in the U.S. but fear political opposition.

“We’re trying to showcase Chinese investment in the U.S.,” said Myron Brilliant, a senior vice president at the U.S. Chamber. “In a lot of areas there aren’t a lot of hurdles to investment.”

The 38-page report is based on interviews with Chinese business officials who have invested in the U.S. Some of its suggestions are obvious: “win-win cooperation can create great opportunities,” said advice attributed to Cirrus Industries Inc., a Duluth, Minn., propeller-aircraft maker purchased last year by a subsidiary of Aviation Industry Group of China.

But other advice reflects important differences between how business is done in the U.S. and in China. “Unlike in China, personal relations with officials play a very small part in the enforcement of laws and regulation,” said the report’s introduction.

Another tidbit for would-be Chinese investors: “The U.S. media [are] completely independent of the government, so even if some local officials welcome your investment, others might voice opposition in the media. Do not be discouraged by this.”

Chinese direct investment in the U.S. last year totaled $4.5 billion, according to New York market research firm Rhodium Group, a tiny portion of the foreign-direct investment in the U.S. The Commerce Department, which uses a different methodology from Rhodium, said FDI in the U.S. reached $227 billion in 2011.

via Chinese Businesses Get Advice on U.S. Investment – WSJ.com.

17/07/2012

* WTO: China discriminates against foreign card companies

BBC News: “The World Trade Organisation has ruled that China discriminates against foreign credit-card and debit-card providers.

A panel of the trade body said China maintains a monopoly on yuan-denominated payment cards which breaks WTO rules. Only one company, China UnionPay, is allowed to process domestic currency transactions. This limits foreign providers such as Visa and Mastercard.

There is a 60-day period in which either side can appeal against the ruling.

The Obama administration first lodged the complaint in 2010.

US companies have been trying to get greater access to the massive China market.

“Today’s win highlights that tackling unfair Chinese trade practices has been a priority of this president”, Jay Carney, White House press secretary

Currently, they can only issue cards in partnership with Chinese banks and China UnionPay.

Visa said in a statement that the company is “hopeful that this ruling will pave the way for international payment companies to participate in the domestic payments marketplace in China”.

The decision by the WTO is being hailed as a “win” by the US government. The trade gap with China has become a campaign issue in the upcoming elections.

“Today’s win highlights that tackling unfair Chinese trade practices has been a priority of this president,” said Jay Carney, White House press secretary.

Tim Reif from the US Trade Representative’s office said the ruling would support about 6,000 jobs if it goes through.

However, the WTO did not agree with all the claims raised by the United States.”

via BBC News – WTO: China discriminates against foreign card companies.

15/07/2012

* Google Tries Something Retro – Made in the U.S.A.

NYTimes: “Etched into the base of Google’s new wireless home media player that was introduced on Wednesday is its most intriguing feature. On the underside of the Nexus Q is a simple inscription: “Designed and Manufactured in the U.S.A.”

The Google executives and engineers who decided to build the player here are engaged in an experiment in American manufacturing. “We’ve been absent for so long, we decided, ‘Why don’t we try it and see what happens?’ ” said Andy Rubin, the Google executive who leads the company’s Android mobile business.

Google is not saying a lot about its domestic manufacturing, declining even to disclose publicly where the factory is in Silicon Valley. It also is not saying much about the source of many of its parts in the United States. And Mr. Rubin said the company was not engaged in a crusade.

Still, the project will be closely watched by other electronics companies. It has become accepted wisdom that consumer electronics products can no longer be made in the United States. During the last decade, abundant low-cost Chinese labor and looser environmental regulations have virtually erased what was once a vibrant American industry.

Since the 1990s, one American company after another, including Hewlett-Packard, Dell and Apple, has become a design and marketing shell, with production shifted to contract manufacturers in Shenzhen and elsewhere in China.

Now that trend may be showing early signs of reversing.

It’s a trickle, but some American companies are again making products in the United States. While many of those companies have been small, like ET Water Systems, there have also been some highly visible moves by America’s largest consumer and industrial manufacturers. General Electric and Caterpillar, for example, have moved assembly operations back to the United States in the last year. (Airbus, a European company, is said to be near a deal to build jets in Alabama.)

There is no single reason for the change. Rising labor and energy costs have made manufacturing in China significantly more expensive; transportation costs have risen; companies have become increasingly aware of the risks of the theft of intellectual property when products are made in China; and in a business where time-to-market is a competitive advantage, it is easier for engineers to drive 10 minutes on the freeway to the factory than to fly for 16 hours.

That was true for ET Water Systems, a California company. “You need a collaboration that is real time,” said Pat McIntyre, chief executive of the maker of irrigation management systems, which recently moved its manufacturing operation from Dalian, China, to Silicon Valley. “We prefer local, frankly, because sending one of our people to China for two weeks at a time is challenging.”

Harold L. Sirkin, a managing director at Boston Consulting Group, said, “At 58 cents an hour, bringing manufacturing back was impossible, but at $3 to $6 an hour, where wages are today in coastal China, all of a sudden the equation changes.”

The firm reported in April that one-third of American companies with revenue greater than $1 billion were either planning or considering to move manufacturing back to the United States. Boston Consulting predicted that the reversal could bring two million to three million jobs back to this country.”

via Google Tries Something Retro – Made in the U.S.A. – NYTimes.com.

This cost difference is continuing to erode away as China has been increasing its basic wages by between 10-15% per annum for the last 10 years and intends to continue doing so in order to improve the standard of living of the working person thereby passing on the benefits of the improving GDP.

See also:

14/07/2012

* China top leaders vow to better handle people’s petitions

Xinhua: “China’s top leaders on Friday met representatives for a nationwide conference on the work of handling the people’s petitions, vowing to safeguard the people’s rights and interests and strengthen ties between the authorities and the people.

President Hu Jintao, Premier Wen Jiabao, Vice President Xi Jinping and Vice Premier Li Keqiang met the representatives before the conference, extending their greetings to all the government staff handling the people’s letters and calls.

Zhou Yongkang, a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, and secretary of the Committee of Political and Legislative Affairs of the CPC Central Committee, also met representatives and delivered a speech at the conference.

The petitioning, also known as letters and calls, is the administrative system for hearing complaints and grievances from Chinese citizens.

The bureaus of letters and calls at all levels are commissioned to receive letters, calls, and visits from individuals or groups, and then channel the issues to respective departments, and monitor the progress of settlement.”

via China top leaders vow to better handle people’s petitions – Xinhua | English.news.cn.

Petitioning has been a historic means for members of the public, however lowly to put forward their grievances to someone high enough to deal with it. Sometimes, a petition would go all the way to the Emperor or, at least, to his chief minister.

The Chinese government is merely reaffirming this historic practice.

See also: http://en.wikipedia.org/wiki/Petitioning_(China)

14/07/2012

* Wuhan airport to build new terminal

China Daily: “A new terminal will be built in the Wuhan Tianhe International Airport before 2015 to meet increasing passenger demand in Central China’s Hubei province, local media reported on Friday.

The project will cost about 16 billion yuan ($2.5 billion), and will occupy an area of 370,000 square meters with a 3,600-meter long and 60-meter wide runway, the Chutian Metropolis Daily reported.

The new runway can guarantee the safe takeoff and landing of the Airbus A380, the report said.

The project, already approved by the National Development and Reform Commission, will start construction before October. The terminal will be built in a flying-phoenix shape, representing local culture.

A parking apron with capacity for 60 planes will also be built, the report said.

According to airport data, more than 12 million domestic and foreign passengers arrived at, or left from, the airport last year, only 1 million less than the airport’s capacity of 13 million.

The airport is expected to receive about 14 million passengers this year.”

via Wuhan airport to build new terminal |Society |chinadaily.com.cn.

The current Wuhan airport was only opened in 1995, and a new one is planned for2015 – looking to the future.

London Heathrow was built in 1929 and expanded to its modern configuration after WW2. It is limited by its two main runways. Yet, after years of debate, neither has a decision been made to build a third runway nor has an alternative solution been discussed seriously – there being so many contenders ranging from expanding Gatwick or another nearby airport or even expanding provincial airports like Manchester or Birnmingham; plus a proposed contentious new airport in the Thames Estuary favoured by London Mayor Boris Johnson. Case of looking to the past?

See also: https://chindia-alert.org/economic-factors/chinas-infrastructure/

14/07/2012

* China football fans greet Didier Drogba at Shanghai

BBC: “Ivory Coast football star Didier Drogba has arrived to a hero’s welcome in China, to take up a contract to play for Shanghai Shenhua.

Hundreds of fans of the struggling Chinese Super League team greeted the 34-year-old former Chelsea star at Shanghai’s Pudong airport.

Drogba’s reported $300,000 (£193,000) a week salary makes him one of the world’s highest paid footballers.

Drogba is among many foreign stars who have made recent moves to China.

He joins former Chelsea colleague Nicolas Anelka at Shanghai Shenhua.

Soon after his arrival, Drogba insisted he had not come for the money.

He said: “It would have been easier for me to stay in Europe, but I chose China. Money is not the most important [thing]. I am here for a whole new experience.””

via BBC News – China football fans greet Didier Drogba at Shanghai.

First cheap plastic toys, then mid-level products, onto hi-tech gadgets; and now international football?

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