Archive for ‘Chindia Alert’

27/01/2015

New highway encircles stubborn homeowners – Chinadaily.com.cn

A room with a 360-degree road view

New highway encircles stubborn homeowners

If you can’t build through it, build around it – city planners seem to have taken this advice quite literally.

Motorway builders encircled the homes of three Chinese families with a four-lane flyover after they refused to make way for the bulldozers.

Demolition teams in Guangzhou had planned to destroy the houses in order to connect the city’s road network to a recently opened tunnel under the Pearl River.

A photograph of the so-called “nail houses” – so named because they proved difficult to move–completely surrounded by the flyover, proved popular on the Chinese Internet this week.

Some Internet users joked that authorities had given locals homes “with a 360-degree road view”.

via New highway encircles stubborn homeowners[1]- Chinadaily.com.cn.

27/01/2015

China’s Top 100 Brands: The Private Sector Reigns Supreme – China Real Time Report – WSJ

China’s top brand is no longer a state-owned company, nor is it e-commerce giant Alibaba Group Holding Ltd.BABA +0.85% It’s technology player Tencent Holdings TCEHY +3.45%.

In a ranking of the top 100 most valuable Chinese brands by research from agency Millward Brown and media company WPP, Tencent,  China’s largest online-games and social-networking company, ranked No. 1 with a brand value of $66 billion, ahead of No. 2 Alibaba’s $59 billion. Tencent’s WeChat and QQ messaging services propelled it to the top of the list, said Doreen Wang, global head of Millward Brown’s BrandZ division.

Tencent’s rise unseats state-owned telecom giant China Mobile, which has held the top spot since the ranking’s launch in 2010. It also marks a sea change for China’s private-sector companies, which now account for 47% of the value of the top 100 brands. To calculate rankings, Millward Brown and WPP analyze financial data of listed companies’ brands, pairing it with survey data from more than two million consumers in over 30 countries.

China’s state-owned enterprises have long dominated China’s list of leading companies. In 2010, of the top 50 Chinese brands identified in the report, state-owned companies occupied a third of the list and accounted for an estimated 70-75% of the $280 billion total combined value of the top 50.

Today, it’s a different story. In the past year, the government as has pushed private sector reforms and talked about the need to let market forces play a “more decisive” role in the economy. Alibaba’s public listing last year also contributed to the jump in value for market-driven brands, Millward Brown said, adding that technology brands have also for the first time surpassed financial institutions, becoming the highest valued sector in the rankings, representing 23% of the top 100’s value. Search giant Baidu Inc.BIDU -1.66% ranked No. 5, behind China Mobile and Industrial & Commercial Bank of China Ltd.

Tencent now ranks fifth in the world for global technology leaders’ brand value, according to MIllward Brown. Google Inc. is No. 1 with $158.8 billion, with Apple Inc. holding the No. 2 spot, followed by International Business Machines Corp.and Microsoft Corp.

Yet, even with Alibaba’s record-setting IPO and Tencent’s various successes, Chinese brands haven’t gained global recognition, said Ms. Wang. Only 22% of consumers surveyed outside of China could recognize a Chinese brand in 2014, a slight rise from 20% the year earlier. Chinese brands need to clarify what they stand for and need to ensure that they can satisfy needs beyond the Chinese market for them to gain more recognition, said Ms. Wang. “They need to consider what kind of benefit they bring to global consumers,” she said.

via China’s Top 100 Brands: The Private Sector Reigns Supreme – China Real Time Report – WSJ.

27/01/2015

Obama ends day of Indian pageantry with $4 billion pledge | Reuters

U.S. President Barack Obama ended a landmark day in India on Monday with a pledge of $4 billion in investments and loans, seeking to release what he called the “untapped potential” of a business and strategic partnership between the world’s largest democracies.

Honeywell CEO Dave Cote (L) and India's Prime Minister Narendra Modi (C) laugh at a remark by U.S. President Barack Obama (R) during a CEO Roundtable and Forum at the India U.S. Business Summit in New Delhi January 26, 2015. REUTERS-Jim Bourg

Earlier in the day, at the invitation of Prime Minister Narendra Modi, Obama was the first U.S. president to attend India’s annual Republic Day parade, a show of military might that has been associated with Cold War anti-Americanism.

It rained as troops, tanks and cultural floats filed through the heart of New Delhi, but excitement nevertheless ran high over Obama’s visit, which began on Sunday with a clutch of deals to unlock billions of dollars in nuclear trade and to deepen defence ties.

Both sides hope to build enough momentum to forge a relationship that will help balance China’s rise by catapulting democratic India into the league of major world powers.

The leaders talked on first name terms, recorded a radio programme together and spent hours speaking at different events, but despite the bonhomie, Obama and Modi reminded business leaders, including the head of PepsiCo, that trade ties were still fragile.

India accounts for only 2 percent of U.S. imports and one percent of its exports, Obama said. While annual bilateral trade had reached $100 billion, that is less than a fifth of U.S. trade with China.

via Obama ends day of Indian pageantry with $4 billion pledge | Reuters.

27/01/2015

Apple supplier Foxconn to shrink workforce as sales growth stalls | Reuters

Is this the beginning of the end for off-shoring manufacturing?

Taiwan‘s Foxconn Technology Group, the world’s largest contract electronics manufacturer, will cut its massive workforce, the company told Reuters, as the Apple Inc (AAPL.O) supplier faces declining revenue growth and rising wages in China.

Employees work inside a Foxconn factory in the township of Longhua in the southern Guangdong province in this May 26, 2010 file photo.  REUTERS/Bobby Yip

Under its flagship unit Hon Hai Precision Industry Co Ltd (2317.TW), the group currently employs about 1.3 million people during peak production times, making it one of the largest private employers in the world.

Special assistant to the chairman and group spokesman Louis Woo did not specify a timeframe or target for the reduction, but noted that labor costs had more than doubled since 2010, when the company faced intense media scrutiny following a spate of worker suicides.

“We’ve basically stabilized (our workforce) in the last three years,” Woo said. When asked if the company plans to reduce overall headcount, he responded “yes”.

Revenue growth at the conglomerate tumbled to 1.3 percent in 2013 and only partially recovered to 6.5 percent last year after a long string of double-digit increases from 2003 to 2012.

That decade saw the firm ride an explosion of popularity in PCs, smartphones and tablets, largely driven by its main client Apple, but now it is feeling the effects of falling growth and prices in the gadget markets it supplies, a trend that is expected to continue.

Growth in smartphone sales will halve this year from 26 percent in 2014, according to researcher IDC, while PC sales will contract by 3 percent.

Similarly, the average smartphone will sell for 19 percent less in 2018 than last year’s $297.

“Even if technology is improving, the price will still come down,” Woo said. “We’ve come to accept that, our customers have come to accept that.”

Automation will be key to keeping labor costs under control in the long-term, Woo said, as the company pushes to have robotic arms complete mundane tasks currently done by workers.

But Woo noted that company chairman Terry Gou‘s previously stated goal of 1 million robots was “a generic concept” rather than a firm target.”

via Exclusive: Apple supplier Foxconn to shrink workforce as sales growth stalls | Reuters.

26/01/2015

Five firsts at Republic Day 2015 – The Hindu

The 66th Republic Day saw many firsts. Here are a few:

1. All-women contingents of the Army, Navy and Air Force march through Rajpath for the first time

The Army contingent, led by Captain Divya Ajith from Chennai, wants to serve in combat roles. “We believe we are equal and second to none. We have already marched for the first time on the Army Day and now another first would be the Republic Day parade. So, yes, we do wish to be in the combat force,” she said.

2. The first time that a U.S. President is Chief Guest for the parade

“This Republic Day, we hope to have a friend over…invited President Obama to be the 1st US President to grace the occasion as Chief Guest,” Narendra Modi tweeted in November last year.

3. The President and the chief guest arrived in different motorcades, a departure from the standard practice of arriving together

4. CRPF shows off Commando Battalion for Resolute Action (CoBRA) used in anti-Naxal operations

5. The long-range advanced MiG-29K fighter jet on display

via Five firsts at Republic Day 2015 – The Hindu.

26/01/2015

1.39 million Chinese receive legal assistance – Xinhua | English.news.cn

The Chinese government provided free legal aid services for nearly 1.39 million people in 2014 to help them safeguard their rights, the Economic Daily reported on Monday.

More than one-third of them are migrant workers who are vulnerable to job dismissal and withheld wages and know little about the legal system, the report said, quoting the Ministry of Justice.

The ministry’s statistics showed that about 10 percent more migrant workers than last year said they would like to seek legal assistance if their rights are violated.

Legal service centers have been springing up in streets, communities and prisons across China. The number of new legal service centers in 2014 totaled 70,000, the ministry said. The country will guide more legal service agencies to provide assistance to suspects and defendants in prisons.

It also promised to lower the eligibility standard for people to receive legal assistance and expand services for military personnel.

via 1.39 million Chinese receive legal assistance – Xinhua | English.news.cn.

26/01/2015

Govt sells off premium cars- Chinadaily.com.cn

The first group of premium government automobiles to be auctioned off amid the ongoing frugality campaign have gone under the hammer in Beijing.

Govt sells off premium cars

According to Zonto Auction, the 106 vehicles it sold on Sunday were from six central government departments including the China Insurance Regulatory Commission, China Securities Regulatory Commission and State Bureau for Letters and Calls.

The cars were without plates, which would have to be supplied by the purchasers.

A total of 505 bidders from around the country joined the auction, which brought in proceeds of 6.6 million yuan ($980,000).

The highest bid went to a Toyota cross country vehicle for 200,000 yuan.

Li Guanwen, 40, of Hebei province, bought a Skoda bus for 160,000 yuan.

“The market value of this bus is around 500,000 yuan,” said Li.

“I think the reform of official vehicles is a very good thing and is a very good approach to remind civil servants to cut costs and to serve the public well.”

In November 2013, public agencies were told to cut their vehicle fleets, as well as reduce receptions and overseas trips. The use of all vehicles, except those required for law enforcement, emergency duties and essential public services, were scrapped or severely reduced.

via Govt sells off premium cars[1]- Chinadaily.com.cn.

26/01/2015

Urbanisation: The great sprawl of China | The Economist

IN ANCIENT times, Beijing built towering city walls that helped to prevent undefendable sprawl. These days it builds ring roads, stretching built-up areas ever outwards. Near Langfang, a city halfway between the capital and its giant neighbour Tianjin, diggers dip their heads and cement mixers churn, paving the next circular expressway. When complete, the 900km (560-mile) Seventh Ring Road will surround Beijing at such a distance that most of it will run through the neighbouring province of Hebei, to which Langfang belongs, rather than the capital itself. Parts of it are 175km from Beijing’s centre (see map).

The Seventh Ring Road (really the sixth, but for obscure reasons there is no First Ring Road) is emblematic of modern Chinese cities: giant, sprawling and dominated by cars. Even before it is completed in a year or two (and its use assessed), another, even longer, orbital is being plotted. Like many of China’s infrastructure projects, the new road displays engineering prowess. The country’s successes in urban planning are less evident.

Breakneck urban growth has propelled China’s rise in the past three decades. Migration from the countryside has helped expand the urban population by 500m—the biggest movement of humanity the planet has seen in such a short time. Over half the population is now urban. Some live in the basements of apartment blocks, or in shacks built in courtyards. But Chinese cities have mostly avoided the squalor of many developing-world ones.

The result of this urban growth is not just that China has many large cities—more than 100 of them have more than a million people—but that some are supersized. At the end of last year the government at last acknowledged the special nature of these, introducing the term “megacity” to describe those whose populations, including that of their satellite towns, exceed 10m. Of the 30 cities worldwide that match this definition, six are in China: Shanghai (23m), Beijing (19.5m), Chongqing (13m), Guangzhou (12m), Shenzhen (11m) and Tianjin (11m). A further ten Chinese cities contain 5m-10m people. At least one of these, Wuhan, will pass 10m within a decade.

China depends on its cities for economic growth and innovation. But it is failing to make the most of its largest conurbations. Medium-sized agglomerations of 1.5m-6.5m are outperforming bigger ones in terms of environmental protection, economic development, efficient use of resources and the provision of welfare, says McKinsey, a consultancy. Residents are beginning to question whether their quality of life, which for many has improved by leaps and bounds, will continue to do so. The giant cities are polluted, pricey and congested. Average travel speed in Beijing is half that in New York or Singapore.

Most of China’s cities share the legacy of a central-planning mindset in which all life and work was centred on a single “work unit”. Cities were “built as producer centres rather than consumer ones”, says Tom Miller, author of “China’s Urban Billion”. Their planning focus was on industry; not commerce, services or even community. The work units are gone but the tradition of dehumanising architecture persists. Most new developments are built on giant blocks 400-800 metres long.

China has swapped its socialist dream for an American-style one of cars and sprawling suburbs. The number of cars has increased more than tenfold in the past decade, to 64m. The combination of superblocks and car-lust often adds up to a giant jam. Large blocks mean fewer roads to disperse traffic. Guidelines require a main urban road every 500 metres and an eight-lane road every kilometre. In the case of Beijing, a ring and radial system was also created, with the aim of providing speedy road access in and out of town, bypassing city traffic and linking satellite towns. Not a bad idea, except that workplaces have remained concentrated in the centre. The expressways funnel traffic into gridlock.

The ill-defined ownership rights of farmers have encouraged the sprawl. Officials can expropriate rural land easily and at little cost. Doing so is far cheaper than redeveloping existing urban areas. Industrial land is heavily subsidised, so factories have remained in urban areas rather than move to cheaper sites on city outskirts. The amount of land classified as urban has more than doubled since 2000—40% of new urbanites became so when cities engulfed their villages.

Sprawl has resulted in populations becoming more thinly spread. China’s megacities are less dense than equivalents elsewhere in the world (see chart). Guangzhou could contain another 4m people if it was as packed as Seoul in South Korea; Shenzhen could be larger by 5m. Extending outward takes a toll: slow commutes from far-flung suburbs increase fuel consumption and cut productivity.

Massive spending on infrastructure has hugely improved connections within and between cities. Since 1992 China has spent 8.5% of its national income on infrastructure each year, far more than Europe and America (2.6%) or India (3.9%). Yet city residents still complain. Subways are often built as engineering projects, with stops at set distances, rather than where people want them to be, says Sean Chiao of Aecom, an infrastructure firm. Buses, metros and rail networks are poorly integrated because separate agencies manage them.

via Urbanisation: The great sprawl of China | The Economist.

26/01/2015

Narendra Modi’s Suit and Its Message to Obama – India Real Time – WSJ

Even the pinstripes on Indian Prime Minister Narendra Modi’s suit cannot escape scrutiny.

The yellow, almost-gold, stripes that appear against the navy blue wool fitted Indian jacket and pants he wore on Sunday were not simple stitching. They were Mr. Modi’s name embroidered into the fabric, said a person familiar with Mr. Modi’s wardrobe.

Over and over again the lines repeated the words: “Narendra Damodardas Modi.” His middle name is his father’s first name: Damodardas Mulchand, a tea seller.

Mr. Modi, wore the pinstriped suit to receive U.S. President Barack Obama at the Indian presidential palace on Sunday. Mr. Obama is on an official three-day visit to India.

He landed in the capital New Delhi on Sunday morning where he was greeted by Mr. Modi in a break with protocol. The pair also hugged.

Mr. Modi, who changed his outfit three times on Sunday, started with a cream colored shirt paired with a saffron shawl for the airport visit. He then changed into that pinstriped fitted Indian jacket with his name all over it for a luncheon he hosted in Mr. Obama’s honor at Hyderabad house. After lunch the pair walked in the garden and were photographed drinking tea together.

Later that evening, Mr. Modi donned a dove-grey fitted Indian jacket for a state banquet at Rashtrapati Bhavan, the president’s palace.

For the Republic Day parade on Monday Mr. Modi paired a black fitted jacket with an elaborate turban, a nod to his Gujarati heritage. The red, green and orange hand-tied turban, speckled with white dots, is a a tie-dye technique called Bandhani that is practiced mostly in the western Indian states of Rajasthan and Gujarat. Mr. Modi was the chief minister of Gujarat for more than a decade.

But the Obama visit’s wardrobe will probably be best-remembered for those stripes on Mr. Modi’s second outfit. They started a social media outrage especially on Twitter where some users described Mr. Modi as a narcissist for choosing to wear his name all over his jacket.

via Narendra Modi’s Suit and Its Message to Obama – India Real Time – WSJ.

26/01/2015

China’s Xi Builds Support for Big Move: Putting Politics Ahead of the Economy – China Real Time Report – WSJ

Many observers—including U.S. President Barack Obama – claim that Chinese leader Xi Jinping has already consolidated his political power and now commands more authority at a far earlier point than his predecessors did when they ruled China.

On the surface, there seems to be ample evidence for this conclusion. In his first two years at the helm, Xi has taken out powerful political rivals, become a ubiquitous presence in the party media and put himself in a position to dominate policy making.

There’s also been unusual attention in the press to Xi’s experiences as an adolescence and his early days as a Communist party member, which praise Xi’s stamina as a sent-down youth (in Chinese) and his problem-solving talents as a cadre (in Chinese). Chinese media refer to China’s president colloquially as “Big Daddy Xi” and extol his visits and musings as major events. And last week, a series of oil paintings were unveiled on the website of the Ministry of Defense depicting Xi in his role as China’s paramount leader.

This hagiography seems to suggest Xi’s unassailable status.But there’s a better explanation for this relentless publicity: Because Xi’s embarking on a very different path for China, he needs all the positive promotion he can get.

Xi knows as well as anyone that governance in China has shifted. The move away from a Maoist-style dictatorship to a collective leadership means that only by enacting and implementing reforms can a Chinese leader stay upright and ahead politically. It’s authority over policy decisions–not power for its own sake–that drives China’s leaders.

For much of the last half-century, changing China through economic reform seemed to make far better sense than transforming the country through political revolution.

Deng Xiaoping, the chief architect of China’s economic transformation, changed the national focus to getting rich and kept conservative critics at bay; his successor, Jiang Zemin, extended Deng’s achievements by bringing businessmen into the Communist Party and ushering China further into the international economic order. Hu Jintao, who followed Jiang, concentrated on the parts of China’s population left behind by a booming economy—and worked to underwrite those officials who agreed with that approach.

Then along came Xi, looking to invert this equation—to put politics back in command of economics.

In Xi’s view, China’s economic boom hasn’t always enhanced the party’s image, because it’s also offered opportunities for government officials to engage in graft. The Communist Party’s previous emphasis on economics wasn’t the cure so much as part of a larger disease that made too many officials more concerned with growing their bank accounts instead of developing the country. The state of China’s GDP may be a major concern for some, but Xi’s focus on getting the party rectified first indicates that he disagrees. For Xi, only by pushing economics aside and focusing on politics—specifically, ideology–can party rule be protected.

In recent days, Xi and his supporters have been advertising ideology to supplant economics more ardently.

For example, instead of asking China’s universities to become engines of innovation that might invigorate economic growth, Xi and his comrades are seeking to enforce the Party’s control over the classroom.

Xinhua summarized a recent proposal to tighten ideological oversight, quoting a document instructing administrators, that “higher education is a forward battlefield in ideological work, and shoulders the important tasks of studying, researching and spreading Marxism, along with nurturing and carrying forward socialist values.”

The party main theoretical journal, Qiushi, jumped in with a widely-reprinted essay (in Chinese) that slammed those professors who “as part of some new fashion, use their positions of authority to discredit China.” These instructors, the commentary contended, “present views that are not part of the social mainstream.”

Others are also under pressure to bend to politics.

The China Law Society was told last week, according to one report, to “improve its decision-making advisory service to establish itself as a key think tank [by placing] more emphasis on collective thoughts rather than individual thinking.”

That’s a signal to institutions that are largely under party oversight to forego suggestions that hint at dissent and get back in line.

And a few days earlier, People’s Daily, the party’s flagship newspaper, sounded the same refrain of increasing ideological oversight of officials who might be still skeptical of Xi’s changes, devoting an entire page of its Tuesday edition to the need for “political discipline,” with one essay stating emphatically (in Chinese) that “without rules, there are no standards; without standards, a political party cannot exist.”

That sort of talk inspires politically conservative cadres who enjoy their reform in the shape of smackdowns. And building a high public profile is Xi’s way of saying to cadres and citizens alike that he’s the best man to prove that China needs politics to push economics.

via China’s Xi Builds Support for Big Move: Putting Politics Ahead of the Economy – China Real Time Report – WSJ.

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