Archive for ‘Chindia Alert’

16/05/2013

* Pupil commissars quit jobs as Tiger Mothers put exams first

From The Times, 16 May, 2013: “China’s Tiger Mothers are driving a revolutionary shift in attitudes towards primary school cadres — the system that applies rigid communist-style structure to the jobs of child blackboard-wiper, hand cleanliness checker and window-opener.

Battle Hymn of the Tiger Mother

Battle Hymn of the Tiger Mother (Photo credit: Wikipedia)

For many years parents fought to secure the coveted positions for their children — feverishly lobbying and bribing teachers to grant responsibilities that would look good on a university application form.

The most hotly desired cadre positions for 11-year-old Chinese children have traditionally included Sport Commissary (organising games), Cultural Commissary (organising class performances) and Labour Commissary (organising classroom tidy-up operations).

But, according to teachers in the southern province of Guangdong, priorities have changed. As increasing numbers of Chinese parents thrust their children into the country’s ferocious educational arms race, the new emphasis is on exam performance, not Communist Party play-acting.

The effect of this, one teacher in the city of Guangzhou told Chinese media, has been a scramble by parents to unravel their previous machinations and release their children from onerous duties. Once liberated from their tasks, runs the Tiger Mother theory, children will claw back precious minutes that can be spent instead on exam revision.

After bullying teachers to give cadre positions to their children, parents are cravenly avoiding any part in the resignations.

“When their children were in second grade [seven years old], the parents made every possible attempt to get me to arrange cadre titles for them. Now those same kids are in fifth grade [11 years old], they put the same effort into resigning those titles,” said a teacher called Deng.

“Dear Miss Deng. Thank you for giving me so many opportunities, which have tempered me very well and greatly helped my personal development . . . I would like to step aside to give the same opportunities to other students and therefore tender my resignation,” read one of the letters.

She says she has received so many resignation letters from child cadres that she now faces a shortfall of “soldiers” prepared to sacrifice their exam performance for the dizzy heights of classroom officialdom.

One parent of a child in Guangzhou told reporters: “When my daughter first went to primary school, we would always push her to run for every cadre position, even if it was just the job of closing the doors. But she will have middle school entrance exams in a year. Being student cadre doesn’t help the exam, so now we mobilise her to study.””

15/05/2013

* Rotavirus: India unveils cheap Rotavac diarrhoea vaccine

Pharmaceuticals is one of India‘s advanced industries.

BBC: “Scientists in India have unveiled a new low-cost vaccine against a deadly virus that kills about half a million children around the world each year.File photo of Indian children suffering from diarrhoea

Rotavirus causes dehydration and severe diarrhoea and spreads through contaminated hands and surfaces and is rampant in Asia and Africa.

India says clinical trials show the new vaccine, Rotavac, can save the lives of thousands of children annually.

An Indian manufacturer said the vaccine would cost 54 rupees ($1; £0.65).

International pharmaceutical companies GlaxoSmithKline and Merck produce similar vaccines but each dose costs around 1,000 rupees.

“This is an important scientific breakthrough against rotavirus infections, the most severe and lethal cause of childhood diarrhoea, responsible for approximately 100,000 deaths of small children in India each year,” India’s Department of Biotechnology official K Vijay Raghavan said.

“The clinical results indicate that the vaccine, if licensed, could save the lives of thousands of children each year in India,” he added.

Rotavac will be made by Hyderabad-based Bharat Biotech. The company said it could mass-produce tens of millions of doses after clearance is given, expected in eight or nine months.”

via BBC News – Rotavirus: India unveils cheap Rotavac diarrhoea vaccine.

See also – https://chindia-alert.org/economic-factors/indias-services/

15/05/2013

* After ATM heist, India’s IT sector again in unwelcome spotlight

Reuters: “A breach of security at two payment card processing companies in India that led to heists at cash machines around the world has reopened questions on the risks of outsourcing sensitive financial services to the Asian nation.

The EnStage Inc. office is seen in the southern Indian city of Bangalore in this May 12, 2013 file photo. REUTERS/Stringer/Files

Global banks that ship work to be processed in India, either in-house or to big IT services vendors, were already under pressure to step up oversight of back-office functions after a series of scandals last year.

Last week, U.S. prosecutors said a global criminal gang stole $45 million from two Middle Eastern banks by breaking into the two card processing companies based in India and raising the balances and withdrawal limits.

“India is exposed in two ways: The threat that the same theft could happen in India and the fact that the outsourcing industry will also get affected,” said Arpinder Singh, partner and national director for fraud investigation and dispute services at consultancy Ernst & Young.

The episode is reopening debate on banks sending work requiring a high degree of confidentiality to offshore locations.

“It is the weakest link,” said Shane Shook, an expert with U.S. cyber-security firm Cylance Inc who has helped financial firms conduct investigations into some major cyber crimes.

“I think the lesson is they need to pull back on what they’ve outsourced. When you’re giving a third party, the outsourced entity, the ability to access credit limits or cash limits of the consumers you’re managing the finances for, you’re giving up control that is your fundamental responsibility.”

India’s $108 billion IT services industry is the world’s favored destination for outsourcing. Over 40 percent of exports by the industry are support services for the global financial sector, ranging from investment bank back-office functions to research, risk-management and processing of insurance claims.”

via After ATM heist, India’s IT sector again in unwelcome spotlight | Reuters.

15/05/2013

* Premier promises administrative streamlining to create jobs

Li Keqiang 李克强

Li Keqiang 李克强 (Photo credit: Wikipedia)

Xinhua: “Chinese Premier Li Keqiang has called for reducing administrative barriers for launching businesses to create more job opportunities.

On a nationwide tele-conference held on Monday about the functional transformation of the institutions under the State Council, or the cabinet, Li said China faces a tough employment situation due to the tempered economic growth in the past few months this year.

The country will expect a record 6.99 million college graduates this year, Li said, adding that it is an important task to help them get employed.

Efforts should be made to vigorously develop medium-sized, small and micro businesses by canceling unnecessary administrative approvals, as state-owned enterprises and institutions have limited capacity in providing employment opportunities.

Li said that the government should also make efforts to lower the threshold for people to seek employment or start businesses.”

via Premier promises administrative streamlining to create jobs – Xinhua | English.news.cn.

See also: https://chindia-alert.org/2013/05/15/job-prospects-grim-for-chinas-7m-fresh-grads/

15/05/2013

* Job prospects grim for China’s 7m fresh grads

ANN: “When James Zhao, 23, read news reports last Friday claiming Renren, the “Facebook of China“, could be laying off three-quarters of the staff at its 3G technology department, his heart sank.

China Job

Having been unsuccessful in his job applications to several multinational tech firms, including mobile giant Motorola, he was hoping to have better luck with local companies like Renren.

“If even the local firms are cutting staff, then the hiring sentiment is getting from bad to worse,” Zhao told The Straits Times. He will graduate next month with a master’s degree in software engineering from a university in Beijing.

One key reason for his employment woes is the record bumper crop of 6.99 million fresh graduates – 190,000 more than last year – who will enter the job market this year.

A sluggish economic recovery also dampens hiring prospects, with some state media calling 2013 “the worst employment year” for white-collar workers.

In the first three months of this year, when the economy grew a slower-than-expected 7.7 per cent, demand for workers fell by 3 per cent, or 163,000 people, in China’s 84 major cities from a year ago.

The hardest hit were the prosperous eastern provinces, according to data from the China Labour Resources Market Research Centre. This region, which houses many of China’s key export and manufacturing hubs, saw a 7.2 per cent drop in labour demand.

In Guangdong province, the hiring rate for fresh graduates at its major universities is currently 52.4 per cent, about 7 percentage points lower than last year.

The job trend this year “may even be worse” than in 2008 during the global financial crisis, the Information News reported yesterday, citing a spokesman for the provincial education bureau’s employment guidance centre.

Industrial output data for April, released yesterday, showed weaker-than-expected growth of 9.3 per cent. This prompted analysts like Renmin University labour expert Liu Yuanchun to warn that “if the economy continues to slow, the impact on employment in certain sectors will be more obvious”, with even mass layoffs.

Earlier this year, MNCs had already made headlines with a round of dismissals in China. In March, some 50 employees at HSBC’s life insurance unit staged a protest outside its offices after 22 workers and 138 agents were axed. Motorola’s Mobility Unit in China is currently undertaking the first of three rounds of job cuts that would shrink its workforce by 800 in total.

Some larger local firms reportedly received local government support to keep their staff numbers stable. This is in line with the Chinese government’s pledge last week to keep this year’s jobless rate at 4.6 per cent or less. It will create nine million urban jobs, the same number as last year, when the jobless rate was 4.1 per cent.

But there are signs that some local players are starting to buckle under pressure.

Loss-making Chery Automobile is said to be planning 9,000 job cuts, China Business News reported yesterday, citing unnamed company insiders. The company bled 191 million yuan (US$30.79 million) in losses in the first quarter.

Even here in Beijing, where white-collar jobs are traditionally more plentiful, Zhang Mi, 25, has yet to land an offer as a teacher or a trainer despite submitting 60 job applications to schools and private firms since last October.

The social studies master’s degree holder has had only four interviews and her parents are “worried sick”.

“There are simply too many graduates this year. I will have to lower my expectations,” said Zhang, who is seeking a 5,000 yuan starting salary.

via Job prospects grim for China’s 7m fresh grads – ANN.

15/05/2013

* How India’s buses got connected

FT: “Phanindra Sama remembers only too clearly the inspiration behind his business. “RedBus was started because of a personal pain point,” he says. “I couldn’t get a bus ticket.”

Phanindra Soma CEO of RedBus photographed in a bus in Bangalore, India on Friday, May 10, 2013

It was October 2005 and Mr Sama, who is known to everyone in his company simply as “Phani”, was heading home to celebrate Diwali, the Hindu festival of lights. The journey involved a trip from Bangalore to his parents’ home near Hyderabad, nearly 600km to the north.

“I went to this travel agent to book a ticket. He made a few phone calls to the bus operators and told me there were no seats,” says Mr Sama. He tried four more agents. All called a couple of bus companies, but none could find a seat. Even more frustrating, all of the agents told him there might be a ticket out there – they just couldn’t locate it.

Mr Sama was stuck. “I am there, all flustered, staying in my flat,” he says of the long holiday weekend that followed. “I woke up the next day, and all of my friends were not there because they had gone home. It really pained me.”

An electronics engineer by training and working for Texas Instruments, he decided to do something about it. The result was RedBus, India’s leading bus ticketing service, which links thousands of unconnected bus operators and ticket agents, and sold more than 7.5m tickets last year.

Mr Sama’s entrepreneurial journey required figuring out India’s vast but fragmented $3bn bus system, which is dominated by small and often unreliable operators. Buses often leave from anonymous storefronts and frequently travel overnight. While some are upmarket, modern vehicles with wireless internet and air conditioning, most offer much more basic features.

When Mr Sama entered the industry, fast economic growth and urbanisation had vastly increased demand for travel. But most people couldn’t afford to fly and India’s celebrated train system struggled to cope with rising demand.

A lesson in listening

Phanindra Sama says being an entrepreneur has taught him a lot about listening. Speaking of the bus operators who have received bad reviews on RedBus, he says: “You get these calls from people saying: ‘I’ve been in the industry for 10 years and suddenly you come and rate me as a bad operator. What about my reputation?’ ”

“I think a lot of entrepreneurs probably don’t make time. If somebody says, ‘I want to talk to you’, they don’t make time,” he says. “We make time because that is very important for us.”

It is a lesson he has picked up not only from patiently listening to angry customers but also from reading management theory.

“There is a common theme in all those books. They say make space for others,” he explains. “I have dreams and passions, [but] everybody in the team also has their own dreams and passions. So if I have to get the best progress that we want, it can’t just be me standing there and having everybody do what I want.”

Even so, Mr Sama found India’s bus users were treated shabbily, with scant information on prices or bus companies. “This whole industry was very unregulated,” he says – a situation he admits has barely changed in the years since the company’s launch.

Despite holding down a day job, Mr Sama spent his weekends working out how to improve matters and even convinced his two flatmates to join him. Just under a year later, the trio had quit their jobs and were preparing to launch the RedBus website, along with two other software packages linking India’s disparate travel agents and bus companies.

The site has since become both popular and profitable, with revenues of Rs6bn ($110m) last year. It has also won fresh funding from the likes of Inventus Capital and Helion Venture Partners, investors attracted by an Indian intercity bus industry with revenues projected to grow to about $8bn over the next four years.”

via How India’s buses got connected – FT.com.

15/05/2013

* Chinese austerity hits Diageo’s sales

English: Songhe and Moutai - modern Baijiu bra...

English: Songhe and Moutai – modern Baijiu brands from China (Photo credit: Wikipedia)

Read “corruption” for “austerity” and that would explain why sales and profits have dropped like a stone.

FT: “Sales of Diageo’s baijiu, a clear grain spirit popular in China, slumped 40 per cent in the first quarter of this year as the world’s biggest distiller became the latest casualty of China’s crackdown on conspicuous consumption.

 

The rapid deterioration in fortunes at Shui Jing Fang, one of the first Chinese household names to be taken over by a foreign company, comes as other makers of high priced spirits have suffered falling sales amid the chill winds of austerity with socialist characteristics. It is a turnround for the drinks industry which, like other purveyors of status symbols, had become accustomed to runaway growth in China comfortably offsetting European weakness.

Pernod Ricard, the world’s second-biggest distiller after UK-listed Diageo, is set to report an annual decline in Scotch whisky sales in China, following years of surging growth. This came after flat sales over the Chinese New Year period, when it sold more Cognac but saw Scotch sales fall by double-digits in percentage terms year-on-year.

Diageo has so far shrugged off concerns about the crackdown saying it is having little effect on gifting, which makes up 10 to 15 per cent of Scotch and Cognac sales in the country.

Kweichow Moutai, China’s largest baijiu maker, reported a halving in year-on-year profit growth in the first quarter. Baijiu, like a host of other food and drinks in China, has also been caught up in food safety concerns.

Shui Jing Fang, which Diageo acquired last year after years of protracted and complex negotiations, saw both sales and earnings before interest and tax fall by 40 per cent in the first quarter of the calendar year, Diageo said on an investor call on Tuesday. That followed net sales growth of 10 per cent and operating profit growth of 12 per cent in the previous full year.

Although Shui Jing Fang is just a drop of Diageo’s sales at around 1 per cent, baijiu dwarfs sales of international spirits in China and is seen as an attractive sector for multinationals to increase their grip on.”

via Chinese austerity hits Diageo’s sales – FT.com.

15/05/2013

* UK to try and simplify visas for Chinese tourists

Hard on the heels of special visas for Indian business applicants, Britain is trying to do something for Chinese visitors.

FT: “Home Office ministers are to start talks with Chinese tour operators in the hope of setting up an easier visa application system for groups of high-spending Asian shoppers who are discouraged by the UK’s border bureaucracy.

Chinese tourists at cake shop with windows decorated during Queen Elizabeth II Diamond Jubilee

The department has been under pressure from luxury retailers to streamline the process for Chinese tourists, who can enter most of continental Europe with just one Schengen visa and are therefore less likely to apply for a separate UK entry. As a result, France receives at least 25 per cent more Chinese tourists each year than Britain does.

Mark Harper, immigration minister, said on Tuesday that he hoped to begin discussions soon. “It’s just thinking about, practically, what can we do with the tour operators to enable them to make that process for getting both [UK and Schengen] visas as straightforward as possible,” he told the Financial Times. “We may not be able to get it to be perfect, but we can get it to be a lot better than it is now, which then makes us a lot more competitive.”

However, Mr Harper suggested that a previous idea of negotiating “parallel” processes – so that data for Schengen and UK visas could be submitted in one joint application – was looking less likely. This was because “you start running into issues about government IT projects and complex issues about data protection”, he said.

Mr Harper also indicated such a joint application would be difficult to achieve diplomatically because it was “not obvious” that it would be in the interests of Britain’s European partners.”

via UK to try and simplify visas for Chinese tourists – FT.com.

15/05/2013

* Arctic Council to rule on observer status for China

FT: “The Arctic is at the centre of a global geopolitical battle as China, India and Japan attempt to join the main body involved in setting the rules for future development of the polar region.

Oil drilling in the Arctic seas has become a highly contentious issue.

At a meeting in Kiruna in northern Sweden on Wednesday and Thursday, ministers from the five Nordic countries, the US, Canada and Russia will decide whether to let 14 countries and organisations gain the status of “observer” to the Arctic Council.

China is the most controversial name on the list, but its candidacy has the support of all the Nordic countries.

Canada and Russia have expressed concerns about further opening up the council, which already has six European countries as observers as well as various intergovernmental and non-government organisations. The US has said it is undecided over the decision, which needs unanimity.

The Arctic is viewed as an increasingly strategic area due to the presence of many resources such as oil, as well as the possibility of quicker shipping routes between Europe and Asia as the ice in the polar region continues to melt.

China, Japan, South Korea, Singapore, India, the EU, Italy and Greenpeace are among the bodies applying at the twice yearly summit for observer status, which would allow them to attend all meetings but not participate in the ministerial conferences.

The council, which was launched in 1996 and serves as a body for international rulemaking on the Arctic.

In a sign of the importance the US is now according the Arctic, secretary of state John Kerry arrived on Tuesday in Sweden for talks first in Stockholm with the government and then in Kiruna.

China has heavily wooed Nordic countries such as Iceland, with which it signed the first free-trade agreement with a European country last month.

Oil exploration in the Arctic has proved to be incredibly difficult, but more than a fifth of the world’s undiscovered oil and gas reserves is thought to be in the region, and there is also great scope for mining of various minerals in places such as Greenland, northern Sweden and Finland.

A northern sea route through the Arctic to the north of Russia could cut several weeks off shipping times and thousands of kilometres off distances between Europe and Asia, especially in the summer, which experts think could soon be ice-free in parts of the region.”

via Arctic Council to rule on observer status for China – FT.com.

15/05/2013

* Companies turn to India to boost their business

FT: “Oil company Shell’s technology centre in the Indian high-tech hub of Bangalore is actually a facility in two halves, with a couple of campuses in different locations around the city.

Originally unable to find one suitable site for its growing efforts, the Anglo-Dutch company decided to split the difference, setting up dual facilities, working on everything from next-generation chemicals to underwater modelling.

But now the company plans to bring everything back together, having announced plans late last year to build a giant new research and development campus on a patch of land close to Bangalore’s airport, with room for 1,500 staff, and even plans for a cricket pitch on the grounds.

Shell’s move is part of a pattern in which many of world’s largest companies are turning to India in their search for new ideas that will boost its business, and follows similar moves to open up innovation facilities around Bangalore by the likes of GE, Cisco and Siemens.”

via Companies turn to India to boost their business – FT.com.

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