Archive for ‘Chindia Alert’

07/12/2012

* Apple to return some Mac production to U.S. in 2013

Yet another instance of reverse offshoring or re-onshoring.

Reuters: “Apple Inc plans to move some production of Macintosh computers to the United States from China next year, Chief Executive Tim Cook said in remarks published on Thursday, in what could be a important test of the nascent comeback in U.S. electronics manufacturing.

An Apple logo is seen at the Apple Worldwide Developers Conference 2012 in San Francisco, California June 11, 2012. REUTERS/Stephen Lam

Apple makes the majority of its products, from Macs to the iPhone and iPad, in China, the world’s factory floor for electronics. But like other U.S. corporations, it has come under fire for relying on low-cost Asian labor and contributing to the decline of the U.S. manufacturing sector.

Cook did not say which Macintosh products will be produced in the United States. But the effort is expected to go well beyond simple final assembly of devices, with Apple and unnamed partners building most or all of the components in the United States as well.

The company will spend more than $100 million on the U.S. manufacturing initiative, Cook said in an interview with Bloomberg Businessweek, published on Thursday.”

via Apple to return some Mac production to U.S. in 2013 | Reuters.

See also: 

07/12/2012

* PLA signs preliminary deal for 24 Russian Su-35 jet fighters

Rare admission that China’s technology may not be up to it.

South China Morning Post: “A preliminary deal for the sale of 24 advanced Russian Su-35 jet fighters to the People’s Liberation Army indicates the technological hurdles China faces in developing its own J-20, especially in terms of engine technology, military analysts say.

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Mainland and Russian media reported last month that Beijing might purchase 24 Su-35s, an updated version of the fourth generation Su-27, for US$1.5 billion. The deal was first proposed by Moscow two years ago.

Beijing expressed interest in purchasing only four Su-35s last year, but that was rejected by Moscow, which had originally expected China to buy 48 planes, Moscow’s Vedomosti business daily quoted an official from Russia’s Federal Service for Military and Technical Co-operation as saying.

It also quoted Igor Korotchenko, head of the Russian Defence Ministry’s public council, as saying Moscow also asked Beijing to sign an agreement not to make copies of the Su-35.

A Beijing-based PLA senior colonel, who requested anonymity, said: “We decided to buy the Su-35 because it’s a fact that our home-made engines have failed to measure up to the Russian products.”

He said China was still playing catch-up, despite recent headlines hailing its progress on military modernisation.

“Engines have been the biggest headache and we are still trying to cope with it,” he said. “The purchase of the Su-35s might help our J-20 project, but there are too many deeper problems hiding in our military industrial system that are hindering our research and development.””

via PLA signs preliminary deal for 24 Russian Su-35 jet fighters | South China Morning Post.

07/12/2012

* India Dips a Toe into the South China Sea Dispute

Thoughtful commentary about why India, who has no territorial claims in he area, is getting involved with the South China Sea disputes.

Geopolitical Monitor: “Although the Xi Jinping administration is now secure enough in its transition to power to put nationalist jingoism back in the box from whence it came, recent events suggest that China will continue to tow a hard line in regards to its military and economic rights in the South China Sea.Joint exercises between the Indian Navy and the US Navy

Earlier this week, Chinese media sources reported that police authorities in Hainan province will be authorized to search and seize foreign vessels operating in Chinese waters starting next year. The announcement prompted an immediate response from the Philippine government, which condemned the move and requested a clarification as to what exactly can be considered ‘Chinese territorial waters.’ ASEAN also chimed in over the announcement, with Secretary General Surin Pitsuwan calling it a move that “raises the level of concern and great anxiety [in the dispute].”

Judging by Chinese official statements on the subject, it seems likely that this expansion of search and seizure powers applies to China’s entire territorial claim, which is essentially most of the South China Sea, extending as far south as Brunei. It can be seen as an initial attempt to leverage China’s growing naval power to buttress an ambitious territorial claim that has, up until now, remained largely rhetorical.

If Beijing goes through with the plan, it will ramp up the volatility in an already precarious region. Whenever hard military assets are being deployed and coming into close contact with one another, the risk of a crisis breaking out is substantially heightened. It wouldn’t take much for a relatively small and seemingly insignificant event, much like the standoff between China and the Philippines earlier this year, to spin out of control and set off a regional conflict.

And make no mistake: there will be no shortage of military ships operating in the South China Sea. On the very same day that China announced its intention for expanded search and seizures, the government of Vietnam announced that it was going to begin military patrols of its own territorial claim. This announcement comes on the heels of an incident earlier this week in which a group of Chinese boats cut the cables of a PetroVietnam survey vessel operating off the Gulf of Tonkin.

But by far one of the most interesting recent developments in the South China Sea dispute is the entrance of India into the fray. Earlier this week, Indian Admiral D.K Joshi publically asserted that India will not back off from protecting its maritime and economic interests in the South China Sea.

Although India doesn’t have any direct territorial claim in the area, the waters are strategically important to New Delhi for three reasons. First, like for any trade-dependent country, the South China Sea represents an important global shipping route and freedom of navigation must be maintained. Second, India’s state-run Oil and Natural Gas Corporation (ONGC) owns a stake in waters claimed by Vietnam. And third, and perhaps most importantly, the South China Sea represents an opportunity for an Indian riposte against China’s ‘string of pearls’ naval encirclement of the Indian subcontinent.”

via India Dips a Toe into the South China Sea Dispute – Geopolitical Monitor.

06/12/2012

* Xi unveils foreign policy direction

China Daily: “For German chemist Katharina Kohse-Hoinghaus, it was a huge surprise to get an invitation to a key meeting from newly-elected leader Xi Jinping just 20 days after he assumed his new role.

Xi unveils foreign policy direction

She was even more surprised on Wednesday to find that she was among the first group of foreigners Xi met as leader of the Party.

She was one of 20 foreigners from 16 countries invited to a face-to-face discussion with Xi on China’s development. Kohse-Hoinghaus, a world-renowned specialist in industrial combustion who has worked for about 10 years in China, said the meeting “demonstrates how serious you take the process of transformation and innovation in cooperation with other countries”.

It was the first time that Xi, the newly elected head of the Communist Party of China, met foreigners in this capacity.

Analysts said the meeting conveyed the new leadership’s foreign policy blueprint, and sent a strong signal that China cherishes its ties with foreign countries and people, and will continue on its road of opening up and cooperation with the outside world.

“We are open to the world and we want to learn from the world … We have learned from the past and realize we cannot succeed in our development behind closed doors,” Xi said at the meeting.

Foreigners with expertise in their fields have contributed immensely to national development and are called foreign experts in China. They also bridge China and the outside world.

The number of foreign experts has risen from less than 10,000 at the end of the 1980s to around 530,000 by the end of 2011.”

via Xi unveils foreign policy direction[1]|chinadaily.com.cn.

06/12/2012

* Senior provincial official under investigation

Will this be the first of many such investigations?

Senior provincial official under investigation

China Daily: “Li Chuncheng, deputy secretary of the Sichuan Provincial Committee of the Communist Party of China (CPC) is under investigation for alleged discipline violation, according to the CPC Central Commission for Discipline Inspection.

via Senior provincial official under investigation |Politics |chinadaily.com.cn

06/12/2012

* China pledges $56 billion to cut air pollution

Reuters: “China will spend 350 billion yuan ($56 billion) by 2015 to curb air pollution in major cities, the environmental watchdog said on Wednesday.

Visitors to Tiananmen Square shield themselves from the sun with umbrellas on a hot and hazy day in Beijing July 28, 2010. REUTERS/David Gray

Local governments will fund most of the programs aimed at cutting the level of harmful particles in the air in 117 cities by at least 5 percent between 2011 and 2015, the Ministry of Environmental Protection said in a statement on its website.

Doctors warn that the tiny floating PM 2.5 particles, named for their less than 2.5 micrometer diameter, can settle in the lungs and cause respiratory problems and other illnesses.

China began publishing data on the amount of such pollution earlier this year in an effort to address concerns from residents that pollution readings were grossly understated.

Chinese officials have acknowledged that the thick cocktail of smokestack emissions, vehicle exhaust, dust and aerosols that often fills the air in many cities is a growing concern to increasingly prosperous urban residents.

Many Chinese in Beijing refer to an air pollution index published by the U.S. embassy, a move that has drawn the ire of Chinese officials who have called it unscientific.

Those measurements, based on U.S. standards, appear much grimmer than those of the city government’s and often list pollution levels as hazardous at prolonged exposure.

China has cited its ongoing reliance on heavy industry as the reason it failed to meet some of its 2011 air and water pollution reduction targets.”

via China pledges $56 billion to cut air pollution | Reuters.

See also: https://chindia-alert.org/economic-factors/greening-of-china/

06/12/2012

* How Cities Can Save China

We sincerely hope that the author is right and that the Chinese authorities both agree with him and decide to implement his suggestions – soon!

NY Times: “CHINA is experiencing its most severe economic downturn in decades, and revitalizing its economic model is critical to future prosperity — not only in China, but around the world.

Central to that effort is the transformation of China’s cities. By adopting a new approach to urbanization, its leaders can assure more balanced investment, address a major source of debt, achieve a consumption windfall and clean up the country’s environment. Otherwise, China’s economic and environmental problems will worsen, with vast implications for the rest of the world.

China’s success has been built on two pillars: investment and exports. But after decades of growth, this model is delivering diminishing returns. There is little doubt that China must change to a new model, one that relies on consumption to generate growth, while addressing debt and broadening the use of sustainable energy and environmental practices.

Cities, home to hundreds of millions of Chinese consumers, lie at the core of this problem — and offer a potential solution.

A flawed system of municipal finance is driving debt, corruption and dissent, while unsustainable urban planning has yielded polluted cities that are destroying China’s ecosystem. Yet China’s future requires continued urbanization, which, absent a new approach, will only make the problem worse.

Cities can, however, be part of the solution: better urban policies can put China on a healthier path forward, economically and environmentally.

For one thing, municipal financial reform is essential because debt is crushing Chinese cities, leaving mayors with no means of financing the central government’s policy mandates. Mayors have developed creative ways to raise revenues, including appropriating farmers’ land and seizing land on the outskirts of cities to sell to developers. But these practices contribute to urban sprawl and often feed corruption.

Among other changes, China’s cities need transparent budgets and the devolution of more tax authority to cities.

More innovative urban planning and design are also needed. To achieve the country’s goals of raising living standards for a broader share of the population, cities must be better designed to yield energy efficiency and environmental sustainability.

China’s potential is stifled by traffic and pollution. Gazing out my hotel window in Beijing on a recent trip, I saw air that was hazy and polluted — a stark contrast to the sparkling view of Lake Michigan I enjoy from my kitchen window at home in Chicago.

This isn’t just China’s problem. Experts found that dirty air from China contributed up to 20 percent of the ground-level pollution on the American West Coast in 2010. And that is when just one-tenth of Chinese own cars. Imagine what China’s air quality will become when this number triples, as some experts predict it will within the next several years.

Take another example: construction. Within city centers are countless “superblocks” — half-kilometer-square developments interspersed with huge boulevards that create monster traffic jams and skyrocketing pollution.

In response, an approach that featured smaller blocks and mixed-use neighborhoods and accessible public transportation would alleviate these unintended consequences. Such “livable cities” would balance economic development with energy efficiency, improve air quality and reduce congestion.

Getting China’s urbanization right will matter to us all. Fortunately, many in China understand this, and cooperation with the United States government, corporate world and nonprofit sector, including my own research and advocacy institute, is bringing them the tools they need to prioritize design issues in their cities and adapt infrastructure plans now. These tools include instruction in sustainable practices for government leaders, public education in environmental issues and specialized training for the country’s urban planners.

China must adopt this new approach quickly, before vast infrastructure investment makes the current model irreversible. By 2025, China is projected to have a staggering 200 cities with populations over one million. America has just nine.

Global prosperity depends on China’s continuing to be an engine of growth. We all need China to reinvent its economic model. Working together on urbanization creates progress toward joint solutions to the challenges the world faces from overwhelming pressure on natural ecosystems, resources and commodities.

We need Chinese cities to succeed, and we can help ensure that they do so.”

via How Cities Can Save China – NYTimes.com.

04/12/2012

Changes first to style soon (we hope) to be followed by substance.

04/12/2012

To any thinking person, regardless of nationality, the Chinese unilateral claimed territorial waters (as shown by the red dotted line) look unreasonable. Furthermore, China has, up-till-now, maintained that force should come only after negotiations have failed. Compounding that, for a country who occasionally reminds the rest of the world about unequal treaties and ‘gunboat diplomacy‘, to threaten to board other nationality ships in what is disputed waters is not learning from its own history. This new ‘sabre rattling‘ is a great shame. given the high hopes everyone has for the new national leadership. Let’s hope this is a short term aberration that will soon be corrected.

04/12/2012

Just when you thought one oriental dancing fad (Korean) is enough for Christmas, another (Chinese) comes along. Will there be a third from Japan to complete the set?

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