Archive for ‘Chindia Alert’

07/02/2014

* China to build unified pension system – Xinhua | English.news.cn

China will integrate the basic old-age insurance systems for rural and urban residents to allow people to have equal access to the pension scheme, according to an executive meeting of the State Council on Friday.

China’s separate systems for rural residents and retired company employees in urban areas have basically included everyone in the country, according to the meeting.

China will integrate the two systems and build a unified pension system covering both urban and rural residents, said the meeting.

The meeting, presided over by Premier Li Keqiang, said the move will facilitate population movement and build stable expectations for livelihood improvement.

It will also boost consumption and encourage more business start-ups, said the meeting.

via China to build unified pension system – Xinhua | English.news.cn.

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07/02/2014

* China’s environment: A small breath of fresh air | The Economist

The government gives its Davids a sling to use against polluting Goliaths

Feb 8th 2014 | From the print edition

WHEN, in 2008, the American embassy in Beijing started publishing a measure of the fetid smog enveloping the capital, China’s government protested and ordered the publication to stop. Its instinct was to sweep unwelcome facts about the nauseating level of pollution in the country under the carpet. Now that seems to be changing. New rules on pollution say that official data, formerly held secretly, should be published. It is an important step, not just for China’s environment, but also because it gives new power to the large and growing movement of citizen activists who have been lobbying for the government to clean up.

China is now emitting almost twice as much carbon dioxide as the next-biggest polluter, America. At current rates, it will produce 500 billion tonnes of carbon dioxide between 1990 and 2050—as much as the whole world produced between the start of the Industrial Revolution and 1970. Pollutants in the air in Beijing have hit 40 times the level decreed safe by the World Health Organisation. Yet China did not have a ministry devoted to environmental protection until 2008, and the government has done its best to keep information about the levels of filth in the air and water under wraps. Even now, the state is keeping secret a nationwide survey of soil pollution.

The new rules that have just come into effect signal the beginning of a move towards openness. They require 15,000 enterprises, including some of the biggest state-owned ones, to make public in real time details of their air pollution, waste water and heavy-metals discharges (see article). In the past, polluters gave the data on their emissions only to the government. In future NGOs such as the Institute of Public and Environmental Affairs, run by Ma Jun, a former investigative journalist who has been badgering the government on green issues for years, will get these data to analyse and publicise as they wish. Things are opening up at a local level, too. In 2012 only a few cities, including Beijing, published statistics on air quality. Now 179 do. And more firms are volunteering information about pollution—especially those that need foreign investors.

via China’s environment: A small breath of fresh air | The Economist.

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07/02/2014

Internal trade: It’s a continent, actually | The Economist

China’s external imbalances are as nothing compared with its internal ones

Feb 8th 2014 | HONG KONG AND YINCHUAN | From the print edition

NINGXIA, an autonomous region in China’s north-west, is home to 6.3m people. About a third of them are Muslims, descendants of travellers along the Silk Road. The region is keen to revive the kind of trade networks that created its unique ethnic mix, so that it can diversify an economy which relies too much on coal, metals and chemicals.

In that regard Ningxia is hoping to sell nutritious goji berries to people worried about their bodies, certified halal foods to Muslims worried about their souls, and fine red wines to people relaxed about both. If these schemes succeed, they will help Ningxia to close its big trade gap with the rest of the world—and the rest of the country.

China trades more goods across its international borders than any other country. Its provinces also trade a lot with each other, but this trade is far from balanced. If each of China’s provinces were treated as an independent economy, they would record enormous trade deficits and surpluses with the rest of the country and the world (see chart).

The biggest deficit, in absolute terms, in 2012 was recorded by the central province of Henan, out of which China’s civilisation sprang and into which flowed goods and services worth a net 580 billion yuan ($96 billion). In relative terms, however, the widest deficits appear in China’s western provinces. Ningxia’s deficit amounted to almost 40% of its GDP, bigger than the current-account deficit of any actual country. Even wider trade gaps were recorded in Qinghai, Yunnan and Tibet.

These deficits reflect the government’s “Go West” campaign, an effort to invest in the infrastructure of the west. Net “imports” from the rest of China and beyond allow poor provinces to spend more on consumption and investment than they earn. Ningxia’s investment rate was 89% of GDP in 2012. In Tibet, the “roof of the world”, the investment rate was through the ceiling at 101% of GDP.

Signs of investment are everywhere in Ningxia’s capital, Yinchuan. Foreign firms are helping to build a posh hotel and mall, shaped like a flying dragon, which will attract international brands. But not everything is imported. The coal, piled around the dormitories where the labourers live and cook, is local.

via Internal trade: It’s a continent, actually | The Economist.

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07/02/2014

India’s Visa-On-Arrival: ‘A Game Changer’ – India Real Time – WSJ

Analysts on Friday hailed the Indian government’s decision to grant visas on arrival to travelers from 180 countries, a move they said would boost tourism, earnings from which could help deflate the country’s bloating fiscal deficit.

This is a “game changer for the Indian economy,” Rajiv Biswas, IHS Global’s chief economist for Asia, said in a statement.

“The new liberalized visa regime has the potential to make India one of the most favoured tourist destinations of the world,” Jyotsna Suri, the vice president of New Delhi-based Federation for Indian Chambers of Commerce and Industry, said in another statement.

On Wednesday, India announced it sought to extend its visa-on-arrival program to tourists from 180 countries, including the U.K., U.S. and China, in a bid to accelerate slow growth in tourism. Previously, only 11 countries — including Finland, Singapore and Japan — were covered under the scheme, which began in 2010. Those visas were valid for 30 days and cost $60.

The Tourism Ministry, in a note on its website, said it found that the scheme had encouraged more tourists to visit India. In 2013 for instance, more than 20,000 visas were issued on arrival, about five times more than in 2010.

Under the new program, the ministry said, travelers can register for an Indian visa online. The visas can then be collected on landing at one of the 26 international airports across the country. Rajeev Shukla, the country’s planning minister who made the announcement, said it could take about five to six months to get the expanded visa-on-arrival program off the ground. The first of these visas, he said, are likely to be issued in October.

via India’s Visa-On-Arrival: ‘A Game Changer’ – India Real Time – WSJ.

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06/02/2014

James Bond’s Sports Car Has Chinese Supply-Chain Problems – Businessweek

Aston Martin, the luxury sports car manufacturer often associated with James Bond, has the same problem as Mattel’s (MAT) Hot Wheels: glitches in the Chinese supply chain.

Aston Martins

The legendary sports car company is recalling more than 5,000 cars manufactured since 2007. According to a Jan. 15 letter (pdf) from Aston Martin to the U.S. National Highway Traffic Safety Administration, the company investigated after reports of throttle pedal arms breaking during installation. Its discovery: “Initial tests on the failed pedal arm have shown that the Tier Three Supplier used counterfeit material.”

The luxury sports cars’ throttle pedals are assembled in Swindon, England, by a company known as Precision Varionic International, which in turn gets its parts from Fast Forward Tooling in Hong Kong. In this case, Fast Forward Tooling subcontracted the molding of pedal arms to Shenzhen Kexiang Mould Tool Co., which bought its allegedly “counterfeit material” from Synthetic Plastic Raw Material Co. in the Chinese factory town of Dongguan. And apparently, James Bond’s gadget man Q was not on hand to inspect quality.

via James Bond’s Sports Car Has Chinese Supply-Chain Problems – Businessweek.

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06/02/2014

India investigates report of Huawei hacking state carrier network | Reuters

“An incident about the alleged hacking of Bharat Sanchar Nigam Ltd (BSNL) network by M/S Huawei … has come to notice,” Killi Kruparani, junior minister for communications and information technology, said in a written reply to a question from a member of parliament.

BSNL logo

BSNL logo (Photo credit: Wikipedia)

“The government has constituted an inter-ministerial committee to investigate the matter,” the minister said on Wednesday, without giving details.

A senior government official said the decision to investigate came after a media report said Huawei had hacked a BSNL mobile base station controller. The official declined to be identified due to the sensitivity of the issue.

BSNL declined to comment beyond the minister’s statement. A spokesman for the communications and information technology ministry said he did not have details of the allegation.

A spokesman for Huawei India denied any hacking.

via India investigates report of Huawei hacking state carrier network | Reuters.

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06/02/2014

Big Pharma pushes for U.S. action against India over patent worries | Reuters

An Indian government committee is reviewing patented drugs of foreign firms to see if so-called compulsory licenses, which in effect break exclusivity rights, can be issued for some of them to bring down costs, two senior government officials told Reuters.

A private security guard looks out from a window of the head office of Natco in the southern Indian city of Hyderabad March 13, 2012. REUTERS/Krishnendu Halder

The drugs that are part of the review process are used for treating cancer, diabetes, hepatitis and HIV, said the sources, declining to give details. No timeline has been given for completion of the review process.

Emerging markets, from South Africa to China and India, are battling to bring down healthcare costs and boost access to drugs to treat diseases such as cancer, HIV/AIDS and hepatitis.

Western drugmakers, including Pfizer Inc, Novartis AG, Roche Holding AG and Sanofi SA, covet a bigger share of the fast-growing drugs market in India.

But they have been frustrated by a series of decisions on patents and pricing, as part of New Delhi’s push to increase access to life-saving treatments where only 15 percent of 1.2 billion people are covered by health insurance.

via Big Pharma pushes for U.S. action against India over patent worries | Reuters.

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06/02/2014

BBC News – Keeping nomadic traditions alive in Inner Mongolia

Naranmandula’s family have been herdsmen on the vast grasslands in China’s Inner Mongolian Autonomous Region for decades. Development and urbanisation have brought him benefits, but he also faces fast-disappearing Mongolian traditions and the receding grassland that has been a lifeline for generations of Chinese Mongols.

Naranmandula, a herdsman in China's Inner Mongolian Autonomous Region

Since the 1980s, the Chinese government has divided the grassland evenly for each household, ending centuries-old nomadic herding lifestyles.

Now Naranmandula lives in a brick house with heating instead of in a traditional Mongolian yurt, and he owns a motorbike that herds his 400 sheep more efficiently. But many things have been lost, he says, and it is hard to keep marching on the road of progress and still maintain a piece of his childhood lifestyle.

Naranmandula takes great pride in his two sons, both national athletes in wrestling and equestrian events, who live in the cities. He is glad that his sons are catching up with the modern life, but hopes one of them can come back and inherit the traditional way of life on the grasslands. There has always been a fight in his heart, he says, with development on one side and beloved memories of nomadic traditions on the other.

Naranmandula wants his grandchildren to go to college. As for him, he plans to keep working as a herdsman. When he dies, he wants his ashes to be scattered on the land just like his ancestors. It’s Naranmandula’s way of saluting his roots.

via BBC News – Keeping nomadic traditions alive in Inner Mongolia.

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06/02/2014

Why China’s Leaders Are Finding It Harder to Govern | Foreign Affairs

China had three revolutions in the twentieth century. The first was the 1911 collapse of the Qing dynasty, and with it, the country’s traditional system of governance. After a protracted period of strife came the second revolution, in 1949, when Mao Zedong and his Communist Party won the Chinese Civil War and inaugurated the People’s Republic of China; Mao’s violent and erratic exercise of power ended only with his death, in 1976.

Laborers clean a statue of Mao, September 24, 2013.

The third revolution is ongoing, and so far, its results have been much more positive. It began in mid-1977 with the ascension of Deng Xiaoping, who kicked off a decades-long era of unprecedented reform that transformed China’s hived-off economy into a global pacesetter, lifting hundreds of millions of Chinese out of poverty and unleashing a massive migration to cities. This revolution has continued through the tenures of Deng’s successors, Jiang Zemin, Hu Jintao, and Xi Jinping.

Of course, the revolution that began with Deng has not been revolutionary in one important sense: the Chinese Communist Party (CCP) has maintained its monopoly on political power. Yet the cliché that China has experienced economic reform but not political reform in the years since 1977 obscures an important truth: that political reform, as one Chinese politician told me confidentially in 2002, has “taken place quietly and out of view.”

The fact is that China’s central government operates today in an environment fundamentally different, in three key ways, from the one that existed at the beginning of Deng’s tenure. First, individual Chinese leaders have become progressively weaker in relation to both one another and the rest of society. Second, Chinese society, as well as the economy and the bureaucracy, has fractured, multiplying the number of constituencies China’s leaders must respond to, or at least manage. Third, China’s leadership must now confront a population with more resources, in terms of money, talent, and information, than ever before.

Governing China has become even more difficult than it was for Deng Xiaoping.

For all these reasons, governing China has become even more difficult than it was for Deng. Beijing has reacted to these shifts by incorporating public opinion into its policymaking, while still keeping the basic political structures in place. Chinese leaders are mistaken, however, if they think that they can maintain political and social stability indefinitely without dramatically reforming the country’s system of governance. A China characterized by a weaker state and a stronger civil society requires a considerably different political structure. It demands a far stronger commitment to the rule of law, with more reliable mechanisms — such as courts and legislatures — for resolving conflicts, accommodating various interests, and distributing resources. It also needs better government regulation, transparency, and accountability. Absent such developments, China will be in for more political turmoil in the future than it has experienced in the last four-plus decades. The aftershocks would no doubt be felt by China’s neighbors and the wider world, given China’s growing global reach. China’s past reforms have created new circumstances to which its leaders must quickly adapt. Reform is like riding a bicycle: either you keep moving forward or you fall off.

via Why China’s Leaders Are Finding It Harder to Govern | Foreign Affairs.

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05/02/2014

China’s New Year market booms, luxury gift sales down – Xinhua | English.news.cn

China\’s consumer market boomed during the first days of the Lunar New Year holiday despite falling luxury gift sales, according to the Ministry of Commerce (MOC) on Wednesday.

In the first four days of the week-long Spring Festival holiday, the most important traditional holiday in China, consumer market sales expanded steadily and quickly, the MOC said in a statement on its website.

Without giving nationwide figures, the MOC said consumer market sales in the cities of Beijing and Chengdu had risen by 9.2 percent and 13 percent year on year respectively. According to the MOC, sales in Shaanxi, Anhui and Henan provinces grew by 14.3 percent, 11.2 percent and 10.4 percent respectively.

Online business and the catering, tourism and entertainment sectors have also prospered during the holiday, according to the MOC.

China\’s consumer market has boomed in spite of falling sales of luxury goods purchased as new year gifts, according to the MOC.

Sales of luxury gifts such as expensive alcoholic beverages and rare seafood, which are sometimes sent as gifts to officials during the holiday, have fallen sharply. Experts have viewed the drop as a direct result of the central government\’s anti-graft and frugality campaign.

via China’s New Year market booms, luxury gift sales down – Xinhua | English.news.cn.

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