Archive for ‘Chindia Alert’

25/04/2013

* China moves cautiously ahead on nuclear energy

Bulletin of the Atomic Scientists: “From 2005 to 2011, China rapidly developed its nuclear power capacity. In 2010 alone, it began operations at two new reactors and broke ground on 10 more, accounting for more than 60 percent of new reactor construction worldwide and making the Chinese nuclear industry by far the fastest-growing in the world. By the end of 2010, China had 14 nuclear reactors in operation with a total capacity of about 11 gigawatts electric, or GWe. That was still a relatively small amount — in contrast, the United States had 104 commercial reactors with a total capacity of about 100 GWe in 2010 — but China was pursuing ambitious plans to rapidly expand.

China Nuclear Energy

Then came the tsunami and earthquake that led to Japan’s Fukushima Daiichi meltdown in March 2011, the world’s worst nuclear accident since the Chernobyl disaster in 1986. After Fukushima, China changed course dramatically, slowing the pace of nuclear development to focus on safety. The slower pace is reassuring, but to really be a leader on nuclear safety, China should speed up the adoption of new laws on nuclear energy and enhance the independence and authority of nuclear safety regulators.

Putting the Brakes On. According to a government plan issued in 2007, China planned to install a total nuclear capacity of 40 GWe by 2020, which would account for about 3 percent of electricity generation nationwide. Many officials and experts expected that the number would actually increase further, to more than 80 GWe.

In its initial, March 2011 reaction to Fukushima, though, China’s State Council, the nation’s governing body, decided to suspend approval of new nuclear power stations, conduct comprehensive safety inspections of existing plants, and review all nuclear projects including those under construction. In October 2012, after concluding the inspections and reviews, the State Council issued a new plan that represents a serious and cautious reevaluation of safety issues and the pace of development. Called the Medium- and Long-term Nuclear Power Development Plan (2011-2020), its proposals include:

A return to normal construction at a controlled and orderly pace.

Permission for a limited number of new nuclear power reactors to be built in coastal sites that have been comprehensively evaluated.

A ban on new inland nuclear power projects, because the government fears a shortage of cooling water should accidents occur at such plants.

A requirement that all new projects meet the safety standards of the world’s most advanced nuclear reactors, known as third generation or Gen III reactors. Compared to earlier technology, these new designs incorporate improved fuel technology, superior thermal efficiency, passive rather than active safety systems, and standardized designs aimed at reducing maintenance and capital costs.

Based on the new plan, China will only approve a few new reactor construction projects before 2016. China now expects to grow its total nuclear capacity to 58 GWe by 2020, rather than the more than 80 GWe previously expected.

The government resumed approval of new nuclear power projects in December 2012, just as the new plan was issued. Several inland nuclear power projects where significant preparation work had already begun will be suspended, with some of their equipment likely transferred to coastal sites. While the pace of Chinese nuclear development will slow in the near term, the country’s long-term goals haven’t changed significantly. China continues to emphasize nuclear power as a crucial part of its energy mix. A government white paper issued in October 2012 observed that “as nuclear power is a high-quality, clean, and efficient modern energy resource, its development is of great importance for optimizing the nation’s energy structure and ensuring national energy security.” The white paper put China’s nuclear energy target at 40 GWe by 2015.”

via China moves cautiously ahead on nuclear energy | Bulletin of the Atomic Scientists.

24/04/2013

* Australia’s central bank to invest in Chinese bonds

BBC: “Australia’s central bank is planning to invest around 5% of its foreign currency reserves in Chinese government bonds, its deputy governor has said.

China's President Xi Jinping shakes hands with Australia's Prime Minister Julia Gillard

It will be the first time the Reserve Bank of Australia (RBA) will invest in sovereign bonds of an Asian country other than Japan.

The RBA has foreign currency reserves of A$38.2bn ($39.2bn; £25.7bn).

Earlier this month, the Australian dollar became the third currency to trade directly with the Chinese yuan.

“This decision to invest in China is an important one,” Philip Lowe, deputy governor of the RBA said in a speech to the Australian Chamber of Commerce in Shanghai.

“It reflects the broader economic relationship between China and Australia and our increasing financial ties.

“It provides greater diversification of our investments and will help with our understanding of the Chinese financial markets,” he added.”

via BBC News – Australia’s central bank to invest in Chinese bonds.

24/04/2013

* China’s Xinjiang hit by deadly clashes

BBC: “Clashes in China’s restive Xinjiang region have left 21 people dead, including 15 police officers and officials, authorities say.

Map

The violence occurred on Tuesday afternoon in Bachu county, Kashgar prefecture.

The foreign ministry said it had been a planned attack by a “violent terrorist group”, but ethnic groups questioned this.

There have been sporadic clashes in Xinjiang in recent years.

The incidents come amid rumbling ethnic tensions between the Muslim Uighur and Han Chinese communities. In 2009 almost 200 people – mostly Han Chinese – were killed after deadly rioting erupted.

Nothing is stopping foreign journalists from booking flights to Xinjiang after hearing reports of violence there. However, simply travelling to the region doesn’t guarantee the ability to dig out the truth behind this story.

In 2009, dozens of foreign reporters were permitted to join an official tour of Urumqi, the capital of Xinjiang, after clashes between minority ethnic Uighur residents and majority Chinese Hans killed 197 people.

Their experiences were mixed. Some reporters were able to speak to a variety of people on the ground, while others faced harassment and intimidation.

The situation remains the same today. Reporters who travel to the area are closely followed by government minders. Locals often hesitate to answer questions, fearing reprisals from government authorities.

Uighur exile groups often provide accounts that differ from the official Chinese government reports. Reconciling the two can be tricky.

The situation isn’t any easier for Chinese journalists. China’s propaganda departments have warned domestic news outlets against conducting their own independent reporting on sensitive Xinjiang stories, ordering them to reprint official stories from China’s major state news agencies.

It is very difficult to verify reports from Xinjiang, reports the BBC’s Celia Hatton.

Foreign journalists are allowed to travel to the region but frequently face intimidation and harassment when attempting to verify news of ethnic rioting or organised violence against government authorities.”

via BBC News – China’s Xinjiang hit by deadly clashes.

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

24/04/2013

* Ladakh incursion: India and China face-off at the ‘Gate of Hell’

China’s only unresolved land border!

22/04/2013

* China’s Shale-Gas Potential and Peril

Businessweek: “In China there’s a giddy feeling that the next energy gold rush is about to begin. Beneath the mountains of Sichuan province, the deserts of Xinjiang, and elsewhere, China contains twice the shale- gas reserves as the U.S., says the U.S. Energy Information Administration. China’s national planners enthusiastically back boosting natural gas production, which accounts for just 4 percent of the country’s total energy mix now. The government wants to double that share by 2015. “There’s a lot of exuberance,” says Zhou Xizhou, who leads the research firm IHS Cera’s China Energy practice. “In Beijing, if you work in energy, you probably receive a shale-gas conference notice every week.”

The impact of a shale-gas boom in China will be enormous, with the potential benefits and likely environmental costs perhaps even greater than in the U.S. So far, though, the output in China has been a trickle because of the challenging geography and the monopolistic structure of China’s oil and gas sector. While about 200,000 of the horizontal wells used in fracking have been drilled in the U.S., China has about 60. China has 1,275 trillion cubic feet of shale-gas reserves, compared with 637 trillion cubic feet for the U.S.

The U.S. shale-gas revolution was launched largely on the flatlands of Texas, North Dakota, Pennsylvania, and other accessible areas. In China’s mountainous Sichuan basin, “the formations seem to be more faulted and folded, which makes it more difficult and less economic to drill long horizontal well bores,” says Briana Mordick, an Oil & Gas Science Fellow at the Natural Resources Defense Council and formerly a geologist at Anadarko Petroleum.

Sometimes the Chinese must cut new mountainside roads to move trucks and equipment to remote sites. With higher upfront costs, “it will be significantly more challenging in China to make the wells pay for themselves,” Mordick says. “The technical learning curve is very steep. What works in one place may not work in another.“

The inflexible structure of China’s state-controlled oil and gas industry hampers efforts to exploit reserves. “In the U.S., it was not the oil and gas majors that started the shale boom” but rather small wildcat operators “willing to accept a high-risk, high-reward proposition,” says Melanie Hart, an analyst on energy policy and China at the Center for American Progress in Washington. “In a market system, you can have many small and large players all specializing in different pieces of the process.””

via China’s Shale-Gas Potential and Peril – Businessweek.

21/04/2013

* Thirty-three percent of world’s poorest live in India

Reuters: “India has 33 percent of the world’s poorest 1.2 billion people, even though the country’s poverty rate is half as high as it was three decades ago, according to a new World Bank report.

India reduced the number of its poor from 429 million in 1981 to 400 million in 2010, and the extreme poverty rate dropped from 60 percent of the population to 33 percent during the same period. Despite the good news, India accounts for a higher proportion of the world’s poor than it used to. In 1981, it was home to 22 percent of the world’s poorest people.

The World Bank report comes just days after it proposed a $12 billion to $20 billion plan to reduce poverty levels over four years in the Indian states of Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan and Uttar Pradesh. Sixty percent of the financing would go to state government-backed projects, according to the Hindu Business Line newspaper.

The study that came out today showed a similar decline in the number of people living in poverty in recent years. People living below $1.25 (67 rupees) a day fell considerably from more than half the people in the developing world in 1981 to 21 percent in 2010, despite a 59 percent increase in world population during the same period.”

via India Insight.

21/04/2013

* Stephen Schwarzman unveils $300m China scholarship fund

BBC: “US private-equity magnate Stephen Schwarzman has launched a $300m (£200m) scholarship programme to send 200 foreign post-graduate students to study in China each year.

Blackstone boss Stephen A Schwarzman (file)

Mr Schwarzman is donating $100m of his personal $6.5bn fortune to the fund, and is raising a further $200m.

Selected students will spend a year at Tsinghua University in Beijing.

Mr Schwarzman said he hoped to foster “a win-win relationship of mutual respect” between China and the West.

The Schwarzman Scholars programme aims to rival the 111-year-old Rhodes Scholarship programme which enables foreign students to study at the UK’s University of Oxford.

It is being backed by major, mainly Western firms, many with interests in China.”

via BBC News – Stephen Schwarzman unveils $300m China scholarship fund.

19/04/2013

# China’s Growth: The Making of an Economic Superpower – Dr Linda Yueh

On Thursday 18th April, I attended an excellent lunch-time lecture on this topic at the RSA, London  by Dr Linda Yueh which is based on her recent book – http://www.amazon.co.uk/Chinas-Growth-Making-Economic-Superpower/dp/0199205787.

Linda Yueh is BBC’s chief business correspondent, director of the China Growth Centre and fellow in economics at St Edmund Hall, University of Oxford. She is also adjunct professor of economics at the London Business School; and visiting professor of Beida, Beijing.

Her talk covered two main areas:

For the growth drivers, I refer you to an excellent MindMap – http://mcgilljd.files.wordpress.com/2013/03/lsechina1.jpg?w=960&h=483 – by Jan D McGill, who wrote a very good summary of the LSE lecture on the same subject in March by Linda that Jan attended – http://mcgilljd.wordpress.com/2013/03/25/chinas-growth/.

I will summarise the Re-balancing challenges here – with my own thoughts following each headline:

  • Increasing internal market and reduce dependency on exports. This includes boosting services instead of manufacturing and infrastructure, and is slowly coming to bear and is highly dependent on the next factor.
  • Increase consumption, reduce savings. As this recent article by Reuters shows, this is probably not going to be an issue with the new generation of Chinese who are spending and not saving – http://www.reuters.com/article/2013/04/18/us-china-consumer-2020-insight-idUSBRE93H18K20130418
  • Increase private sector and reduce SOE. This is happening gradually and the pace needs to be increased. SOE is already down to between 30% and 50% of the economy. But there are concerns that in fact the pace is slowing and possibly reversing – http://www.economist.com/node/21564274
  • Increasing innovation and reducing imitation. On the face of it China is charging ahead with patents and new technology – https://chindia-alert.org/prognosis/how-well-will-china-and-india-innovate/ But some experts suspect the quality of the innovation.
  • Increasing opening up and globalising of Chinese firms.  The latter has yet to make an impact.

All in all, Linda’s prognosis is that, assuming political stability and continuity is maintained, there is every reason to believe that China will be an economic superpower within 30 years.

19/04/2013

* Supreme Court criticizes official bureaucracy

Xinhua: “The Supreme People’s Court (SPC) on Thursday named six officials and institutions that have violated eight bureaucracy-busting guidelines announced by central authorities late last year.

English: a Balance icon ‪中文(繁體)‬: 天平圖示

English: a Balance icon ‪中文(繁體)‬: 天平圖示 (Photo credit: Wikipedia)

The officials involved in the cases have been punished, according to a statement from the SPC.

Since the election of the new leadership of the Communist Party of China (CPC) in November, the CPC has launched a high-profile campaign to stamp out bureaucracy, formalism and the improper spending of public funds.

The bureaucracy- and formalism-fighting guidelines were introduced by a meeting of the Political Bureau of the CPC Central Committee in December.

In one of the cases, officials from the Intermediate People’s Court of the city of Huanggang in central China’s Hubei Province spent 14,396 yuan (2,329 U.S. dollars) on two dinners and were reimbursed by the court. Two officials involved in the case have been punished.

Another case involved two judges from a court in Xishui County in southwest China’s Guizhou Province who left the office on a weekday afternoon to play cards at a teahouse on Jan. 8. The two officials have been punished with administrative discipline.”

via Supreme Court criticizes official bureaucracy – Xinhua | English.news.cn.

19/04/2013

* Govt vows to further curb public spending

China Daily: “China’s central government has pledged to slash 126 million yuan ($20.38 million) from its spending on public-funded vehicles, receptions and overseas trips this year, a move that experts said lives up to the new leadership’s promise to be frugal.

Departments under the central government and organizations that receive public funds are planning to spend 7.97 billion yuan this year to buy and use cars, travel overseas and host meetings — collectively known as “the three public expenses” — the Ministry of Finance said on Thursday.

Spending on public receptions, which decreased 64 million yuan, or 4.3 percent year-on-year, will drop the most among the three.

Although laws require central government departments to release their budgets in 20 working days after authorities approve them, it is the first time that these departments included the three public expenses in the disclosure. Previously, the amount of public spending was usually withheld until July, when departments released their final figures from the previous year.

Experts said the budget cuts have echoed the pledge of the central leadership, which has made cutting red tape and reducing the number of ceremonies one of its priorities since its election.

China’s new premier, Li Keqiang, has promised that public spending in the Cabinet will only go down — one of the three commitments he made in his first news conference as premier in March.

Before that, the new leadership of the Communist Party of China called upon officials in December to adhere to the “eight disciplines”, which asks the governments to cut pomp, ceremonies, and bureaucratic visits and meetings.

Ye Qing, deputy director of the Hunan provincial Statistics Bureau, said the central government has made progress in slashing the three public expenses, although spending is still high and needs further reduction.

Specifically, the authorities have earmarked nearly 4.4 billion yuan — about 55.2 percent of the budget — for buying and maintaining vehicles, while the amount for overseas trips is 2.1 billion yuan, and about 1.4 billion yuan for public receptions.

“It is astonishing that officials spend nearly 4.4 billion yuan on using cars each year. Reform of car use is imminent,” Ye said.”

via Govt vows to further curb public spending |Politics |chinadaily.com.cn.

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