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22/07/2013

To Remain Tops in Innovation, the U.S. Needs Immigration Reform

BusinessWeek: “As China’s economy catches up with America’s in pure size, it’s worth asking whether China will eventually assume the top spot when it comes to innovation as well. The U.S. retains a strong global lead in research and new inventions, in large part because the U.S. continues to attract innovators from the world over—including from China. But to stay on top, the U.S. needs immigration reform that makes it easier for scientists and technology developers to come and stay in the country.

China is producing ever more science and technology graduates and climbing the global rankings in patent applications

China is churning out ever more science and technology graduates and climbing the global rankings in patent applications. By 2004 it was the fifth-largest producer of academic scientific publications—behind only the U.K., Germany, Japan, and the U.S. And in 2011, China’s ZTE (000063:CH) alone made 2,826 international patent filings—the most of any company in the world.

More global innovation is a good thing for everyone—so there’s no reason to fear China’s increasing technological heft. Regardless, that heft is still a fraction of America’s. According to the World Intellectual Property Organization (WIPO), the U.S. is still first by a big margin in terms of widely cited articles—a measure of the quality of research. China ranks 17th. Per dollar of gross domestic product, the U.S. produces more than six times China’s number of patents that are filed in at least three different countries, which is an indicator of marketable innovation.

In 2012, China earned $1 billion in foreign royalty and license payments—this for intellectual property the country had created that was being exploited by companies elsewhere. Meanwhile, it paid $18 billion in royalty and license payments to foreign firms, for a total deficit of $17 billion. Compare that with the U.S., which ran a $82 billion surplus.

A new paper co-authored by Carsten Fink, chief economist of WIPO, suggests one big reason for the U.S.’s continued lead: The country remains a magnet for global innovators. Fink’s paper studies patent applications filed under WIPO’s Patent Cooperation Treaty, which records more than half of all international applications and lists the residence and nationality of the inventors of more than 4 million patents. Using that data, Fink and his colleague Ernest Miguelez found that in 2010 about 10 percent of inventors worldwide lived outside their country of nationality when making their international patent application. The proportion of international patent applications made from the U.S. by non-nationals was twice as high—around 20 percent. That proportion approximately doubled from 1985 to 2010, and it’s the highest share out of any large economy. It compares with a non-national share of international patent applications of about 2 percent in Japan and closer to 5 percent in Germany and France.

The U.S. is by far the biggest global net beneficiary of innovator migration. Between 2001 and 2010, 14,893 inventors with U.K. nationality applied for international patents while residing in the U.S., for example. And there were three times as many Chinese inventors in the U.S. than British ones. That illustrates the U.S. has done particularly well in attracting innovative talent from the developing world—more than half of the U.S. non-national innovator population comes from countries outside the Organisation for Economic Co-operation and Development club of rich countries.

Still, recent trends are disturbing. Duke University’s Vivek Wadhwa reports that the proportion of high-tech startups founded by Chinese and Indian immigrants in Silicon Valley dropped from 52 percent in 2005 to 44 percent in 2011, in part because more and more Indian and Chinese graduates of U.S. universities are returning home rather than dealing with the hassle of American immigration procedures. The U.S. is becoming less attractive to the very people who help power the U.S. innovation economy.

via To Remain Tops in Innovation, the U.S. Needs Immigration Reform – Businessweek.

See also: https://chindia-alert.org/prognosis/how-well-will-china-and-india-innovate/

Posted in China alert, Economics, innovation, Technology | Leave a Comment »

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21/07/2013

How poverty wages for tea pickers fuel India’s trade in child slavery

The Observer: “When the trafficker came knocking on the door of Elaina Kujar’s hut on a tea plantation at the north-eastern end of Assam, she had just got back from school. Elaina was 14 and wanted to be a nurse. Instead, she was about to lose four years of her life as a child slave.

Saphira Khatun, whose daughter Minu Begum was trafficked to Delhi at the age of 12

She sits on a low chair inside the hut, playing with her long dark hair as she recalls how her owner would sit next to her watching porn in the living room of his Delhi house, while she waited to sleep on the floor. “Then he raped me,” she says, looking down at her hands, then out of the door. Outside, the monsoon rain is falling on the tin roof and against the mud-rendered bamboo strip walls, on which her parents have pinned a church calendar bearing the slogan The Lord is Good to All.

Elaina was in that Delhi house for one reason: her parents, who picked the world-famous Assam tea on an estate in Lakhimpur district, were paid so little they could not afford to keep her. There are thousands like her, taken to Delhi from the tea plantations in the north-east Indian state by a trafficker, sold to an agent for as little as £45, sold on again to an employer for up to £650, then kept as slaves, raped, abused. It is a 21st-century slave trade. There are thought to be 100,000 girls as young as 12 under lock and key in Delhi alone: others are sold on to the Middle East and some are even thought to have reached the UK.

Every tea plantation pays the same wages. Every leaf of every box of Assam tea sold by Tetley and Lipton and Twinings and the supermarket own brands – Asda, Waitrose, Tesco, Sainsbury’s and the rest – is picked by workers who earn a basic 12p an hour.

If it says Fairtrade on the box, or certified by the Rainforest Alliance or the Ethical Tea Partnership, it makes no difference: the worker received the same basic cash payment – 89 rupees (£1) a day, a little over half the legal wage for an unskilled worker in Assam of 158.54 rupees. To place that in context, a worker receives about 2p in cash for picking enough tea to fill a box of 80 tea bags, which then sells for upwards of £2 in the UK. The companies say they know the wages are low, and they are trying to make things better, but their hands are tied by the growers. The growers, who set the wages by collective bargaining, say it is all they can afford.

But there is a price for keeping wages so low, and it is paid by the workers who cannot afford to keep their daughters. When the traffickers come knocking, offering to take the girls away, promising good wages and an exciting new life, they find it hard to say no. “He said he would change our lives,” says Elaina, now 20. “The tea garden was closed when he came and my parents were not working, so my father wanted to send me.”

The trafficker had promised excitement and glamour: instead she started work every day at 4am and worked until midnight, and though he promised to give her 1,500 rupees a month, she was never paid. He kept her as a prisoner, unable to leave the house or contact her family.

“His wife was suspicious about what was happening. I told her he had raped me but he denied it and told me to shut up my mouth,” she says. “After that, I was always crying, but he kept me locked in the house. I was afraid. I had no money and he threatened that I would end up in a brothel.”

She was saved only when he sent her to a new owner who, on learning her story, sent her home.”

via How poverty wages for tea pickers fuel India’s trade in child slavery | World news | The Observer.

Posted in agriculture, deficit, demographics, India alert, Labour, Low income, poverty | 1 Comment »

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21/07/2013

Kashmir militants rebuild their lives as hopes of a lasting peace grow

The Observer: “Shabir Ahmed Dar has come home. His children play under the walnut trees where he once played. His father, white-bearded and thin now, watches them. The village of Degoom, the cluster of traditional brick-and-wood houses in Kashmir where Dar grew up, is still reached by a dirt road and hay is still hung from the branches of the soaring chinar trees to dry.

Shabir Ahmed Dar with one of his children

But Dar has changed, even if Degoom has not. It is 22 years since he left the village to steal over the “line of control” (LoC), the de facto border separating the Indian and Pakistani parts of this long-disputed former princely state high in the Himalayan foothills. Along with a dozen or so other teenagers, he hoped to take part in the insurgency which pitted groups of young Muslim Kashmiris enrolled in Islamist militant groups, and later extremists from Pakistan too, against Indian security forces.

“I went because everyone else was going. The situation was bad here. I had my beliefs, my dream for my homeland. I was very young,” he said, sitting in the room where he had slept as a child.

The conflict had only just begun when he left. Over the next two decades, an estimated 50,000 soldiers, policemen, militants and, above all, ordinary people were to die. Dar’s aim had been to “create a true Islamic society” in Kashmir. This could only be achieved by accession to Pakistan or independence, he believed.

But once across the LoC, even though he spent only a few months with the militant group he had set out to join and never took part in any fighting, he was unable to return. “I was stuck there. I made a new life. I married and found work. I didn’t think I would ever come back here,” Dar said.

But now the 36-year-old has finally come home, with his Pakistani-born wife and three children. He is one of 400 former militants who have taken advantage of a new “rehabilitation” policy launched by the youthful chief minister of the state, Omar Abdullah.

Dar’s father heard of the scheme and convinced his son to return last year. “I am an old man. I wanted to see my son and grandchildren before I die. I wanted him to have his share of our land,” said Dar senior, who is 70.

The scheme is an indication of the changes in this beautiful, battered land. In recent years, economic growth in India has begun to benefit Kashmir, the country’s only Muslim-majority state. At the same time, despite a series of spectacular attacks on security forces by militants in recent months, violence has fallen to its lowest levels since the insurgency broke out in the late 1980s. The two phenomena are connected, many observers say.

It is this relative calm that has allowed Dar and the others to return – and allows even some hardened veterans who have renounced violence to live unmolested. “A few years ago the [Indian intelligence] agencies would have shot this down because they would have seen it as another move to infiltrate [militants from Pakistan],” Abdullah, the chief minister, said.

The scheme is not, however, an amnesty. “If there are cases against them they will still be arrested [and] prosecuted … Largely this scheme has been taken up by those who have not carried out any acts of terrorism. Either they never came [across the LoC], or if they came we never knew about it,” Abdullah said.”

via Kashmir militants rebuild their lives as hopes of a lasting peace grow | World news | The Observer.

Posted in Defence, Dissident, India alert, Insurgency, Internal politics, Military, Politics | Leave a Comment »

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21/07/2013

Hauling New Treasure Along the Silk Road

NY Times: “AZAMAT KULYENOV, a 26-year-old train driver, slid the black-knobbed throttle forward, and the 1,800-ton express freight train, nearly a half-mile long, began rolling west across the vast, deserted grasslands of eastern Kazakhstan, leaving the Chinese border behind.

Dispatchers in the Kazakh border town of Dostyk gave this train priority over all other traffic, including passenger trains. Specially trained guards rode on board. Later in the trip, as the train traveled across desolate Eurasian steppes, guards toting AK-47 military assault rifles boarded the locomotive to keep watch for bandits who might try to drive alongside and rob the train. Sometimes, the guards would even sit on top of the steel shipping containers.

The train roughly follows the fabled Silk Road, the ancient route linking China and Europe that was used to transport spices, gems and, of course, silks before falling into disuse six centuries ago. Now the overland route is being resurrected for a new precious cargo: several million laptop computers and accessories made each year in China and bound for customers in European cities like London, Paris, Berlin and Rome.

Hewlett-Packard, the Silicon Valley electronics company, has pioneered the revival of a route famous in the West since the Roman Empire. For the last two years, the company has shipped laptops and accessories to stores in Europe with increasing frequency aboard express trains that cross Central Asia at a clip of 50 miles an hour. Initially an experiment run in summer months, H.P. is now dispatching trains on the nearly 7,000-mile route at least once a week, and up to three times a week when demand warrants. H.P. plans to ship by rail throughout the coming winter, having taken elaborate measures to protect the cargo from temperatures that can drop to 40 degrees below zero.

Though the route still accounts for just a small fraction of manufacturers’ overall shipments from China to Europe, other companies are starting to follow H.P.’s example. Chinese authorities announced on Wednesday the first of six long freight trains this year from Zhengzhou, a manufacturing center in central China, to Hamburg, Germany, following much the same route across western China, Kazakhstan, Russia, Belarus and Poland as the H.P. trains. The authorities said they planned 50 trains on the route next year, hauling $1 billion worth of goods; the first train this month is carrying $1.5 million worth of tires, shoes and clothes, while the trains are to bring back German electronics, construction machinery, vehicles, auto parts and medical equipment.

DHL announced on June 20 that it had begun weekly express freight train service from Chengdu in western China across Kazakhstan and ultimately to Poland. Some of H.P.’s rivals in the electronics industry are in various stages of starting to use the route for exports from China, freight executives said.

The Silk Road was never a single route, but a web of paths taken by caravans of camels and horses that began around 120 B.C., when Xi’an in west-central China — best known for its terra cotta warriors — was China’s capital. The caravans started across the deserts of western China, traveled through the mountain ranges along China’s western borders with what are now Kazakhstan and Kyrgyzstan and then journeyed across the sparsely populated steppes of Central Asia to the Caspian Sea and beyond.

These routes flourished through the Dark Ages and the early medieval period in Europe. But as maritime navigation expanded in the 1300s and 1400s, and as China’s political center shifted east to Beijing, China’s economic activity also moved toward the coast.

Today, the economic geography is changing again. Labor costs in China’s eastern cities have surged in the last decade, so manufacturers are trying to reduce costs by moving production west to the nation’s interior. Trucking products from the new inland factories to coastal ports is costly and slow. High oil prices have made airfreight exorbitantly expensive and prompted the world’s container shipping lines to reduce sharply the speed of their vessels.

Slow steaming cuts oil consumption, but the resulting delays have infuriated shippers of high-value electronics goods like H.P’s. Such delays drive up their costs and make it harder to respond quickly to changes in consumer demand in distant markets.”

via Hauling New Treasure Along the Silk Road – NYTimes.com.

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20/07/2013

Joe Biden’s India Itinerary

WSJ: “U.S. Vice President Joe Biden arrives in New Delhi Monday for a visit focused on improving business ties between the two nations.

Mr. Biden, 70, begins his four-day India tour with a trip to Gandhi Smriti in New Delhi, a museum dedicated to Mahatma Gandhi, who led India to independence from Britain in 1947. The Democratic Party politician, who is visiting India with his wife, is also expected to meet Prime Minister Manmohan Singh, President Pranab Mukherjee and Vice President Mohammad Hamid Ansari, among other leaders, before travelling to Mumbai. Mr. Biden last visited India in 2008, when he was a member of the American Senate.

Mr. Biden’s wife, Jill Biden, will visit the Taj Mahal in Agra and is expected to address school children in Mumbai.

Relations between Washington and New Delhi have been warming in recent years, with the U.S. viewing India as an emerging superpower that can serve as a counterbalance to China’s growing influence in South Asia.

In a speech at the George Washington University in the U.S. on Friday, Mr. Biden singled out civil-nuclear cooperation, trade and investment as key issues the U.S. sought to collaborate on with India in the coming years. “There’s a lot of work to do,” Mr. Biden said in his speech, referring to strengthening India-U.S. ties. He also welcomed India’s decision this week to ease overseas-investment rules for telecom, defense and insurance.”

via Joe Biden’s India Itinerary – India Real Time – WSJ.

Posted in Diplomacy, Economics, GeoPolitics, India alert, Politics | Leave a Comment »

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20/07/2013

China frees up lending rates in major reform

Reuters: “China’s central bank removed controls on bank lending rates, effective Saturday, in a long-awaited move that signals the new leadership’s determination to carry out market-oriented reforms.

An employee counts money on the last workday of the week at a bank in Taiyuan, Shanxi province in this June 28, 2013 file picture. China's central bank announced long-awaited interest rate reforms on July 19, 2013, scrapping the previous floor on the rates that banks charge clients for loans. Picture taken June 28, 2013. REUTERS/Jon Woo

The move gives commercial banks the freedom to compete for borrowers, a reform the People’s Bank of China said on Friday will help lower financial costs for companies. Previously, the lending floor was 70 percent of the benchmark lending rate.

However, the PBOC, in a statement, left a ceiling on deposit rates unchanged at 110 percent of benchmark rates, avoiding for now what many economists see as the most important step Beijing needs to take to free up interest rates.

The latest step underscores Beijing’s resolve to start fixing distortions in its financial system and the economy more broadly as it tries to shift from export- and investment-led growth to more consumption-led activity.

Some analysts said cheaper credit could help support the economy, which has seen year-on-year growth fall in nine of the last 10 quarters.

“This is a big breakthrough in financial reforms,” said Wang Jun, senior economist at China Centre for International Economic Exchanges, a prominent government think-tank in Beijing.

“Previously, people had thought the central bank would only gradually lower the floor on lending rates. Now they scrapped the floor once and for all.”

The Australian dollar rose modestly on the news on hopes cheaper credit will lead to more demand from Australia’s biggest export market.

The announcement provided some support to weak stock markets in Europe .FTEU3 and a timely reminder to the world’s top financial leaders meeting in Moscow of China’s intention to rebalance its economy.

A Group of 20 draft communiqué will urge China to encourage more domestic demand-driven growth as part of wider efforts to rebalance the world economy, G20 sources said.

The United States welcomed the move, saying China promised to let markets play a bigger role in allocating credit during the U.S.-China Strategic and Economic Dialogue in Washington last week.

“This is a welcome further step in the reform and liberalization of China’s financial system,” Holly Shulman, a spokeswoman for the U.S. Treasury, said in an email.”

via China frees up lending rates in major reform | Reuters.

Posted in China alert, Economics | 1 Comment »

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20/07/2013

China officials held over watermelon-seller death

BBC : “Six urban security personnel have been detained by police investigating the death of a fruit seller in southern China, state media say.

Local residents demonstrate with a banner saying "urban enforcers (chengguan) killed people" in Linwu county, central China's Hunan province, 17 July 2013

Deng Zhengjia, in his 50s, died on Wednesday in Chenzhou City, Hunan.

He was hit with a weight from a set of scales after a row erupted with the officials, known as “chengguan”, Xinhua reported, citing Mr Deng’s niece.

The six are being held on suspicion of intentionally harming others, added the news agency.

 

The row in Linwu county, Chenzhou, erupted after Mr Deng, 56, and his wife tried to sell home-grown watermelons at a scenic riverside spot without a licence, the county government said in a statement.

Having asked the couple to leave, “the enforcers temporarily confiscated four of the watermelons, requesting that the couple sell their melons in an authorised location instead”.

The couple began “insulting” the officers when they encountered them again 50 minutes later, the statement said.

“The enforcers tried to reason with the couple, the dispute between the two sides became a physical conflict, and in the process Deng Zhengjia suddenly collapsed and died,” it added.

There were anti-chengguan protests in Linwu on Wednesday, and the fruit seller’s death has also sparked outrage on China’s microblogs.

In July 2011, the death of a disabled street vendor who was reportedly beaten by local law enforcers sparked a riot in Guizhou province.

Who are the chengguan?

Urban law enforcers tasked with enforcing ”non-criminal administrative regulations” such as traffic, environment and sanitation rules

Chengguan operate separately from the police

They are employed by the Urban Administrative and Law Enforcement Bureaux of their individual cities

Critics call them “violent government thugs”

Reports that a disabled street vendor was beaten to death by chengguan in 2011 sparked riots in China’s Guizhou province

There are thousands of chengguan in at least 656 cities across China, Human Rights Watch says

The chengguan, or Urban Management Law Enforcement force, support the police in tackling low-level crime in cities and have become unpopular with the Chinese public after a series of high-profile violent incidents.

“They are now synonymous for many Chinese citizens with physical violence, illegal detention and theft,” said Sophie Richardson, China director at Human Rights Watch (HRW), in a report last year.

via BBC News – China officials held over watermelon-seller death.

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19/07/2013

Strike Force Would Allow ‘War on Two Fronts’

WSJ: “The Indian government this week reportedly paved the way for the creation of a new military corps of 50,000 troops near its border with China. If correct, analysts say this is a sign that New Delhi, which has been largely focused on its frontier with Pakistan, is now shifting its attention to the long, disputed Sino-Indian boundary.

Government sources were quoted by the Press Trust of India as saying a new mountain strike corps costing nearly $11 billion over seven years, was approved by India’s cabinet committee on security Wednesday. The committee is headed by India’s Prime Minister Manmohan Singh.

The force will be headquartered at Panagarh, in the eastern state of West Bengal, the news agency reported. Attempts to confirm these reports with India’s ministries of defense and external affairs were not successful.

The creation of a strike corps would give India thousands of war-ready soldiers, trained and equipped to respond rapidly to a military threat, stationed close to the border between India and China, known as the Line of Actual Control.

Analysts say it would take five to seven years for such a force to be formed fully, as large numbers of soldiers would need to be recruited and trained for combat at high altitudes and in mountainous terrains.

“The process will be incremental,” said Srikanth Kondapalli, a professor in Chinese studies at the New-Delhi based Jawaharlal Nehru University. “There won’t be large-scale training, because there is no immediate threat.”

For decades, relations between India and China have been characterized by mistrust. The tensions boiled over into a war between the two in 1962, which China won by gaining control over a large swathe of Indian territory known as Aksai China.

Beijing is still in control of the 38,000 square kilometers of land, but Indian maps show Aksai Chin as a part of Jammu and Kashmir, it’s northernmost state. China also claims 90,000 square kilometers of land in Arunachal Pradesh, a state in India’s northeast.

Neither nation has shown any inclination to return to armed conflict since, but India’s decision to create a strike corps – which analysts say has been in the offing for over two years – reflects New Delhi’s growing concern that Beijing is becoming increasingly assertive in its territorial claims.

via Strike Force Would Allow ‘War on Two Fronts’ – India Real Time – WSJ.

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19/07/2013

Probe over China fruit-seller ‘beaten by enforcers’

BBC: “Police are investigating the death of a fruit seller in China, state media say, amid reports he was beaten by “chengguan” urban security personnel.

Local residents demonstrate with a banner saying "urban enforcers (chengguan) killed people" in Linwu county, central China's Hunan province, 17 July 2013

Deng Zhengjia, in his 50s, died on Wednesday in Chenzhou City, Hunan.

He was hit with a weight from a set of scales after a row erupted with chengguan officials, Xinhua news agency said, citing Mr Deng’s niece.

Chengguan are unpopular with the Chinese public after a series of high-profile violent incidents.

The chengguan, or Urban Management Law Enforcement force, support the police in tackling low-level crime in cities.

But the force’s ”thuggish” behaviour had led to public anger and undermined stability, a report by Human Rights Watch said last year.

“They are now synonymous for many Chinese citizens with physical violence, illegal detention and theft,” said Sophie Richardson, China director at Human Rights Watch (HRW), when the report was released in May 2012.

via BBC News – Probe over China fruit-seller ‘beaten by enforcers’.

Posted in China alert, Human rights, Illegal practices, Justice, Politics, public protest, Rule of law, social media | 1 Comment »

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19/07/2013

China Seeks Australias Help Building Emissions Trading Scheme

Sydney Morning Herald: “Australia has been drafted in to help design an emissions trading scheme for China, the world’s biggest polluter.

A deal announced in Canberra on Thursday will see the Australian National University take leadership of a program that will analyse pollution data provided by China and allow Chinese university researchers to examine Australia’s experience of the carbon tax and transition to an emissions trading scheme.

China pollutionChina is aiming for a full national emissions trading scheme by 2015.

The program, known as the “Australia-China research program on market mechanisms for climate change policy”, will team Australian researchers with those from three provincial universities in China and the Beijing Institute of Technology.  The University of New South Wales and Melbourne University will also take part.

The deal comes less than a month after China launched the first of seven pilot emissions trading schemes.

The first, in the manufacturing city of Shenzhen, will cover 635 companies, responsible for 38 per cent of the city’s total emissions. Chinese authorities are under pressure to do something about the chronic air pollution affecting public health in Shenzen and across China.

China emits one-quarter of the worlds greenhouse gases – nearly 10 billion tonnes of carbon dioxide, more than the US and India combined.

The $305,000 program, announced by Trade Minister Richard Marles, will be run by the ANU Crawford School of Public Policy, and led by Associate Professor Frank Jotzo of the Schools Centre for Climate Economics and Policy. He said projects would include modelling the effects of emissions pricing on electricity sector investments in China; research on how energy markets can be reformed to make carbon pricing more effective and the design of China’s pilot emissions trading schemes.

Professor Jotzo said: In the future, China is expected to rely less on command-and-control economic management and more on market-based systems to help protect the environment and modernise its energy system.

The research under this program will help inform Chinese policymaker’s about innovative approaches and international experiences, he said.

Climate expert and economist Ross Garnaut, a professor at ANU, said the most recent climate science showed a two degree warming of the planet was now a minimum and Chinese leaders understand there is a huge potential impact from climate for that nation.

via China Seeks Australias Help Building Emissions Trading Scheme.

Posted in carbon emission, China alert, Climate change, Economics, Green, greenhouse gas, Pollution | Leave a Comment »

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