Archive for ‘Economics’

27/11/2014

China looms over South Asian summit in the Himalayas | Reuters

When eight South Asian leaders gather for a summit in Kathmandu on Wednesday, they will meet in a conference center donated by China to its cash-strapped Himalayan neighbor Nepal 27 years ago.

Prime Minister Narendra Modi watches a guard of honour upon his arrival for the 18th South Asian Association for Regional Cooperation (SAARC) summit in Kathmandu November 25, 2014. REUTERS/Navesh Chitrakar

In the decades since it built the modernist brick and glass hall, China has massively stepped up its presence in South Asia, supplying ports, power stations and weapons.

China’s advance has been aided by bickering between India and Pakistan that stymies almost all attempts at integration in a region that is home to a fifth of the world’s population but has barely any shared roads, fuel pipes or power lines.

India’s Prime Minister Narendra Modi has not welcomed Beijing’s renewed suggestion its status be raised from “observer” in the South Asian Association for Regional Cooperation (SAARC), in which India is presently the only major power.

SAARC summits bring together leaders from Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka.

Modi’s hope of using the group as a counterweight to China is unlikely to gain traction at the two-day Kathmandu meeting, with officials saying Pakistan is blocking deals to increase transport and energy connections.

Pakistan mooted the idea of upgrading China’s and South Korea’s status in the organization at a meeting of SAARC foreign ministers on Tuesday. It was quickly rebuffed by India.

via China looms over South Asian summit in the Himalayas | Reuters.

27/11/2014

China takes ‘zero tolerance’ approach to regional polluters: Cabinet | Reuters

China will take a “zero tolerance” approach to a wide range of environmental violations and has promised stronger action against regional governments that protect polluters or hinder inspections, according to a Cabinet document.

A man wearing a face mask stands on a bridge in front of the financial district of Pudong on a hazy day, in Shanghai November 17, 2014. REUTERS/Aly Song

Authorities across China have been ordered to take part in a comprehensive inspection program to be completed by the end of 2015, said the policy document that was released on the official government website late on Wednesday.

The program’s findings will be released publicly under a policy of enhanced transparency and accountability, it said, and any regional regulations that hinder enforcement of national environmental legislation must be annulled by June 2015.

The state of China’s air, soil and rivers has emerged as one of the ruling Communist Party’s biggest challenges, with an increasingly prosperous public unwilling to accept the environmental costs of rapid economic growth.

China declared a “war on pollution” this year and passed long-awaited amendments to its 1989 Environmental Protection Law, giving authorities added powers to monitor, fine and even imprison repeat offenders.

On Wednesday, the cabinet also approved draft amendments to China’s air pollution law that include unlimited daily fines if violators do not rectify problems, the China Daily newspaper reported. Polluters currently pay a one-off fine of up to 200,000 yuan ($32,595).

Enforcement remains one of the government’s main concerns, with the Ministry of Environmental Protection complaining last month that some regions preferred “form over substance” when it came to implementing new guidelines.

The ministry also criticized regional governments that failed to comply fully with industrial restrictions during this month’s Asia-Pacific Economic Cooperation summit in Beijing.

(1 US dollar = 6.1360 Chinese yuan)

via China takes ‘zero tolerance’ approach to regional polluters: Cabinet | Reuters.

25/11/2014

Massive Himalayan hydropower dam comes on stream in Tibet | South China Morning Post

Tibet‘s biggest ever hydropower project has begun generating electricity, state-run media reported, the latest dam developed on Himalayan rivers to prompt concern in neighbouring India.

tpbje20141123187_46897531.jpg

The first generating plant at the 9.6 billion yuan (HK$12.1 billion) Zangmu Hydropower Station, which stands more than 3,300 metres above sea level, went into operation on Sunday, Xinhua said.

The dam on the Yarlung Zangbo River, known as the Brahmaputra in India where it is a major waterway, will be 116 metres high when completed next year, according to reports.

It will have a total generating capacity of 510,000 kilowatts.

“The hydropower station will solve Tibet’s power shortage, especially in the winter,” Xinhua quoted an official from Tibet Electric Power Company as saying.

India has previously expressed concern about damming the Brahmaputra, one of the largest Himalayan rivers and a lifeline to some of India’s remote, farm-dependent northeastern states.

India’s Foreign Ministry last year urged China “to ensure that the interests of downstream states are not harmed by any activities in upstream areas” of the river after state media reports that China planned several more dams there.

Indian Foreign Ministry spokesman Syed Akbaruddin said yesterday that New Delhi had been aware the dam was “coming up”.

“The Chinese have told us that it should have no implications for us,” he said.

Dam construction in China has been blamed for reduced flow and sudden flooding on the Mekong River, which flows into Southeast Asia, claims Beijing has denied.

Foreign Ministry spokeswoman Hua Chunying told reporters: “The hydropower stations China builds will not affect the flood prevention and ecological system of downstream areas.”

via Massive Himalayan hydropower dam comes on stream in Tibet | South China Morning Post.

25/11/2014

News Corp. invests in India real estate website – Businessweek

News Corp. says it has invested in a real estate website in India as it tries to grow its digital business.

The New York-based media company, which is controlled by Rupert Murdoch, owns the Wall Street Journal newspaper and HarperCollins book publisher and runs the real estate website realtor.com.

News Corp. said Monday that it paid $30 million for a 25 percent stake in Elara Technologies Pte Ltd., which owns the Indian website, PropTiger.com. A News Corp. executive will join Elara’s Singapore-based board.

Last year, News Corp. split its newspaper and publishing business from its more-

via News Corp. invests in India real estate website – Businessweek.

25/11/2014

India to Double Renewables in Energy Mix, Minister Says – Businessweek

India plans to more than double the share of renewables in the mix of fuels it consumes, an effort to reduce the dominance of coal.

Renewables such as solar and wind may account for 15 percent of India’s energy supply in the next five years, up from 6 percent currently, said Piyush Goyal, a government minister in charge of power, said at a conference in New Delhi.

“While coal will continue to dominate our energy mix for sometime, we are taking steps to protect the environment,” Goyal said today. “Neither India nor the world has the luxury of time when it comes to protection of the environment.”

Prime Minister Narendra Modi wants to speed up clean energy deployment in India as it tries to attract more than $100 billion of investment for the industry in the next four years. At present, coal generates 60 percent electricity in a nation that suffers from chronic blackouts.

The minister reiterated his previously stated view that renewables can’t count on government subsidies for too long. He said the industry should focus on convincing banks to make funding for projects as easily available as loans for cars.

Modi’s administration reintroduced a tax break for the wind industry earlier this year. Goyal said he hopes those will help turbine installers add 8 gigawatts of capacity every year, a level that would make India one of the biggest wind markets in the world.

India plans to require power purchasers and generators to include renewable energy in their suppliers and will penalize those that don’t, he said.

India will host a renewables conference from Feb. 15 to Feb. 17 to encourage growth in the industry.

via India to Double Renewables in Energy Mix, Minister Says – Businessweek.

25/11/2014

Nepal to ink India power deal during Modi visit – Businessweek

Nepal’s government is signing an agreement Tuesday with an Indian company to build a hydroelectricity plant that will export power to India and also boost supplies in the energy starved Himalayan nation.

The inking of the deal with Indian company Satluj Jal Vidyut Nigam Ltd. to build the 900 megawatt Arun III hydropower station will coincide with Indian Prime Minister Narendra Modi‘s visit to Nepal for a South Asian regional summit.

The $1.04 billion project is expected to begin producing electricity in 2020. More than three quarters of its output will be exported to India, said Ghanashyam Ojha, external affairs official at the Investment Board Nepal.

The Arun III agreement, which was endorsed by Nepal’s Cabinet late Monday, comes just two months after a similar deal with another Indian company.

They are the two biggest private foreign investments in Nepal, and put India ahead of neighboring China, which has long shown interest in developing Nepal’s power industry.

In September, Nepal signed an agreement with Indian company GMR to build the $1.15 billion Upper Karnali Hydro power plant.

via Nepal to ink India power deal during Modi visit – Businessweek.

25/11/2014

India-Pakistan Sparring Opens Door for China in South Asia – Businessweek

For a senior Afghan diplomat sitting in India’s capital, it’s easy to explain how a region with a quarter of the world’s people can account for only five percent of global trade.

Narendra Modi and Xi Jinping

“India and Pakistan need to overcome their problems,” M. Ashraf Haidari, deputy chief of mission at Afghanistan’s embassy in New Delhi, said in an interview ahead of this week’s meeting of the South Asian Association for Regional Cooperation, or SAARC. “Summits happen, leaders come, there’s all this consensus and declarations announced. But unfortunately it doesn’t happen in reality.”

As leaders of eight SAARC countries meet in Nepal this week for the first time since 2011, Indian Prime Minister Narendra Modi has more reasons than ever to turn the bloc into a regional force to counter China’s growing influence in South Asia. Doing so will require him to overcome differences with Pakistani leader Nawaz Sharif.

So far, things aren’t looking good. Modi’s government scrapped talks with Pakistan in August, which was followed by the worst border fighting between the countries in a decade. At the same time, China has promised SAARC nations part of a $40 billion Silk Road fund to finance infrastructure investments.

“SAARC won’t be able to counter China’s influence,” said Nishan de Mel, executive director and head of research at Colombo-based Verite Research Pvt., a policy research group. “China tends to have an approach that isn’t too demanding and isn’t politically difficult for the partner country and where the partner country will tend to see benefits quite quickly. India’s approach tends to be more hard-nosed.”

via India-Pakistan Sparring Opens Door for China in South Asia – Businessweek.

25/11/2014

China’s Railroad Ventures Abroad Project Soft Power – Businessweek

Last week state-owned China Railway Construction Corp. (CRCC) signed a lucrative contract with Nigeria to build an 870-mile coastal railroad from Lagos to Calabar, two of the West African nation’s leading cities. The price tag: $12 billion. That makes it the largest single overseas engineering contract awarded to any Chinese company, according to state-run Xinhua newswire.

Chinese and Venezuelan construction workers build an elevated platform at China Railway Engineering Corporation's (CREC) Tinaco-Anaco railway project in Los Dos Caminos, Venezuela in 2012

Beijing hopes many more deals will follow. In recent months, Chinese leaders on overseas missions have often bragged of the country’s prowess in building railroads, including high-speed bullet trains.

In May, Li Keqiang made his first diplomatic trip as China’s premier to Africa, visiting Ethiopia, Nigeria, Angola, and Kenya. At the headquarters of the African Union in Addis Ababa, Ethiopia, he said he envisioned a bright future for the continent when African capitals would be connected by high-speed rail. And China, he added, according to Xinhua, could “help make this dream come true.”

In early November, a consortium of Chinese companies led by CRCC won a $3.7 billion contract to build a bullet train in Mexico; that contract was canceled a few days later due to suspected corruption on the Mexican side. But the aborted deal is still a sign of overseas demand for China’s rail technology.

Nor are rail deals limited to developing nations: In October, Boston’s transit authority signed a $567 million contract with China’s CNR Corp. to build 284 subway cars.

In addition to stimulating domestic manufacturing demand for steel and rail equipment exports, China’s leaders hope the flurry of railway deals will have soft power benefits as well. The Nigerian railroad will be “a mutually beneficial project,” as CRCC Chairman Meng Fengchao told Xinhua. He pledged to hire at least several thousand workers from Nigeria; in the past, Chinese companies have been criticized for bringing in Chinese workers to complete large engineering projects, thus denying work opportunities to local populations.

via China’s Railroad Ventures Abroad Project Soft Power – Businessweek.

25/11/2014

China considers tougher tobacco controls: Xinhua | Reuters

China, the world’s biggest tobacco market, is considering a draft regulation that would ban indoor smoking, limit outdoor smoking and end tobacco advertising, the state-run Xinhua news agency has reported.

Girls stand next to a ''No Smoking'' sign at a park downtown Shanghai April 27, 2014. REUTERS/Carlos Barria

The draft, published by the legislative affairs office of the State Council, or cabinet, and open for public consultation, included plans to curtail smoking scenes in films and TV shows, Xinhua said in a report published late on Monday.

China faces a smoking-related health crisis, with more than 300 million smokers and hundreds of millions more exposed to second-hand smoke each year. However, cigarettes are part of China’s social fabric and advocates of tougher smoking regulations have faced difficulty pushing through controls.

The government’s heavy dependence on tobacco taxes has been a major impediment to anti-smoking efforts. Last year, the tobacco industry contributed more than 816 billion yuan ($131.70 billion) to government coffers, an annual rise of nearly 14 percent.

Sources told Reuters in September that intense lobbying by the powerful state tobacco monopoly had resulted in the weakening of controversial legislation that had meant to introduce a complete advertising ban.

The draft regulation would ban indoor smoking in public places and outdoor spaces in kindergartens, schools, colleges, women’s and children’s hospitals and in fitness venues, Xinhua said. The draft also prohibits selling cigarettes to minors through vending machines.

It urged civil servants, teachers and medical staff to take the lead in tobacco control, saying teachers and medical workers would not be allowed to smoke in front of students or patients.

via China considers tougher tobacco controls: Xinhua | Reuters.

24/11/2014

China’s rich want to send children abroad for education – China – Chinadaily.com.cn

An overwhelming majority of China’s richest people are likely to send their children abroad for education, the United States and the United Kingdom being their first choices, according to a Hurun Report on education.

China's rich want to send children abroad for education

A Chinese student at the 2014 International Education Exhibition in Beijing on October 25, 2014. [Photo/IC]

The report said that some 80 percent of the country’s rich people have plans to send children abroad, the highest ratio in the world. By contrast, Japan has less than 1 percent and Germany has less than 10 percent of its rich people having such plans, said the report.

The rich people are most likely to send their children to the United States and the United Kingdom while other countries such as Australia, Canada, Switzerland, New Zealand, Singapore, France and Germany attract most of the rest.

The report also found that the students tend to get younger. The average age of the millionaires’ children is 16 years old when they were sent abroad.

Rupert Hoogewerf, publisher of the report, said ten years ago, Chinese rich people could only send their children to Canada and Australia because large number of Chinese people there. “Now, the Chinese rich people have a much broader social network, as a result of which they can find trusted people anywhere in the world and can rest assured sending children to any country.”

“Long time overseas study of these students can definitely do good to the globalization of China’s economy,” said Rupert.

via China’s rich want to send children abroad for education – China – Chinadaily.com.cn.

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