Archive for ‘Economics’

05/11/2014

Poetry of a Former Foxconn Worker in China Evokes Images of Factory Life – Businessweek

Before he took his life in late September, 24-year-old Xu Lizhi was a regular contributor of poetry to Foxconn People, the internal newspaper at his sprawling factory complex in Shenzhen. Only after he died did his writing find a wider audience, as factory friends collected his poems for publication in the Shenzhen News.

Safety netting posted around a building in Foxconn City in Shenzhen, China

Like millions of other young Chinese, Xu left his home in rural Guangdong province in 2010 to find work in the big city; he had been working intermittently on Foxconn (2317:TT)’s electronics assembly line for four years.

Following a series of 14 suicides in 2010, the Taiwanese manufacturing giant installed safety nets to prevent workers from jumping off dormitory roofs at its Shenzhen plant. It tried to improve life for its workers: The company raised basic wages and installed basketball courts and Olympic-size swimming pools for recreation. Worker suicides declined but did not disappear.

Xu’s poetry gives voice to the alienation he and many others of his generation feel on the assembly line: “I swallowed a moon made of iron/ They refer to it as a nail/ I swallowed this industrial sewage, these unemployment documents/ Youth stooped at machines die before their time/ I swallowed the hustle and the destitution/ Swallowed pedestrian bridges, life covered in rust / I can’t swallow any more/ All that I’ve swallowed is now gushing out of my throat/ Unfurling on the land of my ancestors/ Into a disgraceful poem.”

A frequent theme is how he felt the monotony of factory life sapping away “the last graveyard of our youth.” In one poem, Xu wrote: “With no time for expression, emotion crumbles into dust/ They have stomachs forged of iron/ Full of thick acid, sulfuric and nitric/ Industry captures their tears before they have the chance to fall.”

Xu also described the desolate conditions of his rented room: “A space of ten square meters/ Cramped and damp, no sunlight all year/ Here I eat, sleep, sh–, and think/ Cough, get headaches, grow old, get sick but still fail to die/ Under the dull yellow light again I stare blankly, chuckling like an idiot.”

via Poetry of a Former Foxconn Worker in China Evokes Images of Factory Life – Businessweek.

05/11/2014

China Service and Manufacturing Sectors Slowing, Reports Beijing – Businessweek

In another sign that China’s economy is downshifting, an index released on Monday showed China’s service sector growth slowing in October to a nine-month low. The bad news followed Saturday’s poor showing for manufacturing, which grew at its slowest pace in five months.

Manufacturing in China expanded at its slowest pace in five months

The service reading, issued by the National Bureau of Statistics and China Federation of Logistics and Purchasing in Beijing, fell to 53.8, from 54 in September. Manufacturing came in at 50.8, down from 51.1 the month before. (Above 50 shows expansion.) The economy “still faces some headwinds,” Beijing said in a statement on Saturday.

In October, China’s statistics bureau announced that gross domestic product grew 7.3 percent in the third quarter, its slowest pace since the global financial crisis. “The momentum looks weak,” warned Hua Changchun, a China economist at Nomura Holdings in Hong Kong, reported Bloomberg News on Nov. 3.

via China Service and Manufacturing Sectors Slowing, Reports Beijing – Businessweek.

05/11/2014

As China Urbanizes, Fears Grow That Cropland Is Vanishing – Businessweek

As China’s leaders continue to pursue sweeping urbanization plans, concerns are growing about the fate of the country’s cropland. The latest sign: a joint ministerial announcement that officials must protect agricultural plots on city outskirts from runaway development.

Farming in Gangzhong, China

Prime arable land bordering municipalities and towns and located near traffic routes will be formally categorized as “permanent basic farmland” and preserved for cultivation, announced the Ministry of Land and Resources and Ministry of Agriculture in a notice issued on Monday. Fourteen cities, including Beijing, Shanghai and Guangzhou, will be first to carry out the policy, which is to be rolled out nationwide by the end of 2016.

“During rapid urbanization, high-yield farmland has been gradually ‘eaten’ by steel and cement,” said Land and Resources Minister Jiang Daming, reported the official Xinhua News Agency on Nov. 3. “It is a pressing problem that the expansion of cities is encroaching on prime farmland,” said the notice.

via As China Urbanizes, Fears Grow That Cropland Is Vanishing – Businessweek.

05/11/2014

India’s Services Activity Stagnates in October – India Real Time – WSJ

India’s services sector stagnated in October following five months of expansion, but industry executives remain optimistic that activity will strengthen in the coming year as the economy steadily recovers.

The seasonally-adjusted Service Sector Business Activity Index fell to 50.0 from 51.6 in September, according to a HSBC HSBA.LN -0.57% index released Wednesday. A figure above 50 indicates expansion while one below points to a contraction.

Underpinning the stagnation was weaker new business growth. Orders received by service sector firms increased at the weakest pace since May, HSBC saHSBA.LN +1.01%id.

Some sectors such as post and telecommunications showed strength, but their performance was offset by contraction in others such as the hospitality sector, HSBC added.

“On the positive side, business confidence rose to the strongest in three months, with the hospitality sector being most upbeat about the outlook,” HSBC joint head of Asian economic research Frederic Neumann said.

via India’s Services Activity Stagnates in October – India Real Time – WSJ.

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04/11/2014

Ebola crisis highlights China’s philanthropic shortfall – China – Chinadaily.com.cn

China has contributed over $120 million to fight the spread of the Ebola virus, but its billionaire tycoons – it has more than anywhere outside the United States – have, publicly at least, donated little to the cause, underscoring an immature culture of philanthropy in the world’s second-biggest economy.

Ebola crisis highlights China's philanthropic shortfall

As the ranks of China’s wealthy and the success of its corporations grow, donating to good causes has yet to take off in a significant way. China sits towards the bottom of the list of countries where people give money to charity, volunteer or help a stranger, according to The World Giving Index, compiled by the Charities Aid Foundation.

China rushes help to Ebola-hit countries

Donations to charities totalled 98.9 billion yuan ($16.1 billion) in 2013, according to Chinese government data, recovering from two straight years of declines. For comparison, Americans gave more than $335 billion, according to the National Philanthropic Trust website.

Many big Chinese companies have invested in Africa – China is Africa’s leading trading partner – and several operate in West Africa, where Ebola has been at its most lethal, killing close to 5,000 people. These include construction, infrastructure and telecoms firms such as Huawei Technology Co Ltd, China Henan International Cooperation Group and China Communications Construction Co Ltd.

A Huawei spokeswoman said Africa was an important market, but declined to comment on philanthropy or specific ventures in Ebola-hit countries. China Henan and China Communications Construction did not respond to requests for comment.

The World Food Programme (WFP) last month called on Chinese firms and tycoons to donate more to fighting Ebola.

“No one’s been willing to do anything big yet,” said Brett Rierson, the WFP’s China representative.

via Ebola crisis highlights China’s philanthropic shortfall – China – Chinadaily.com.cn.

04/11/2014

India destroys stockpile of illegal wildlife parts – Businessweek

Indian authorities set fire Sunday to a stockpile of tiger skins, elephant tusks, rhino horns and other illegal animal parts in an effort to discourage wildlife smuggling in South Asia.


Embed from Getty Images

Animal poaching and smuggling have flourished in India, driven by black market demand from China, Vietnam and other Southeast Asian countries where many believe exotic animal parts have medicinal or aphrodisiacal properties. In most cases, there is no scientific evidence that they do.

Indian Environment Minister Prakash Javadekar loaded more than 42,000 illegal animal parts into a large, blazing oven at the Delhi Zoo. The parts included tiger and leopard pelts, reptile skins, rhino horns and shawls made from endangered Tibetan antelope called shahtoosh.

via India destroys stockpile of illegal wildlife parts – Businessweek.

04/11/2014

Smog-Heavy China Tops Clean-Tech Investment Rankings – Businessweek

The best developing country in which to invest in clean-tech? It’s China, according to a new analysis (pdf) by Climatescope, a collaborative research project whose partners include Bloomberg New Energy Finance and the U.K. Department for International Development.

A solar thermal power generation system being built in Anhui province, China

China is, paradoxically, both the world’s top emitter of greenhouse gases and the largest investor in green energy. This can be true because China’s demand for energy is increasing quickly enough to stoke demand for both traditional fossil fuels and renewable energy. As the report notes, China’s annual energy consumption ballooned a stunning 51 percent from 2008 to 2013. In the same period, India’s power generating capacity expanded 56 percent, while the U.S.’s rose just 6.8 percent.

China is now the world’s top maker of wind and solar equipment, with numerous factories supplying both component parts and finished products. While its solar manufacturing industry was originally export-oriented, China since 2013 has been “the largest demand market for renewables” and “has taken major strides to improve its domestic policy framework” for green energy investment, the report finds.

via Smog-Heavy China Tops Clean-Tech Investment Rankings – Businessweek.

04/11/2014

Traditional Chinese Medicine Gets Traction Among Scientists – China Real Time Report – WSJ

Traditional Chinese medicine teaches that some people have hot constitutions, making them prone to fever and inflammation in parts of the body, while others tend to have cold body parts and get chills. Such Eastern-rooted ideas have been developed over thousands of years of experience with patients. But they aren’t backed up by much scientific data. As the WSJ’s Shirley S. Wang reports:

Now researchers in some the most highly respected universities in China, and increasingly in Europe and the U.S., are wedding Western techniques for analyzing complex biological systems to the Chinese notion of seeing the body as a networked whole. The idea is to study how genes or proteins interact throughout the body as a disease develops, rather than to examine single genes or molecules.

“Traditional Chinese medicine views disease as complete a pattern as possible,” says Jennifer Wan, a professor in the school of biological sciences at the University of Hong Kong who studies traditional Chinese medicine, or TCM. “Western medicine tends to view events or individuals as discrete particles.” But one gene or biological marker alone typically doesn’t yield comprehensive understanding of disease, she says.

In cities throughout China, doctors practicing Western and Chinese medicine can both be found. Many patients go to Western doctors for certain situations, such as acute illness, but seek out TCM guidance in others, often to prevent disease.

TCM was largely ignored by Western medicine until recent years, but is slowly gaining traction among some scientists and clinicians. The Cleveland Clinic in Ohio recently opened a herbal therapy center. The U.S. government established the National Center for Complementary and Alternative Medicine in 1998. The organization now has a budget of over $120 million to fund research on the efficacy and safety of alternative medicines, including those rooted in traditional Chinese medicine.

via Traditional Chinese Medicine Gets Traction Among Scientists – China Real Time Report – WSJ.

04/11/2014

More than 40 percent of China’s arable land degraded: Xinhua | Reuters

More than 40 percent of China’s arable land is suffering from degradation, official news agency Xinhua said, reducing its capacity to produce food for the world’s biggest population.

The rich black soil in northern Heilongjiang province, which forms part of China’s bread basket, is thinning, while farmland in China’s south is suffering from acidification, the report said, citing agriculture ministry statistics.

Degraded land typically includes soil suffering from reduced fertility, erosion, changes in acidity and the effects of climate change as well as damage from pollutants.


http://www.gettyimages.com/detail/173983945

Beijing is growing increasingly concerned about its food supply after years of rapid industrialization resulted in widespread pollution of waterways and farmland.

The country, which must feed nearly 1.4 billion people, has already outlined plans to tackle soil pollution, said to affect around 3.3 million hectares of land.

But as rising incomes place growing pressure on its domestic resources to produce more, high quality food, it is also planning to tackle degraded soil, the report said.

The agriculture ministry wants to create 53 million hectares of connected farmland by 2020 that would allow it to withstand drought and floods better, said Xinhua. Larger farms are more suited to irrigation and other modern farming practices.

It also wants to strengthen the monitoring of arable land management and speed up the legislative process to protect farmland in order to ensure stable food production and farmers’ incomes, the report added.

Currently protecting farmland is difficult as liability for soil contamination is hard to determine, experts say.

The government is drafting a new law to tackle this but it is not expected to be completed until at least 2017.

via More than 40 percent of China’s arable land degraded: Xinhua | Reuters.

03/11/2014

Asset-Hungry Chinese Companies to Spend $120 Billion in Overseas Purchases This Year – Businessweek

Chinese money has been going overseas for years now, snapping up real estate, technology companies, and more than anything, oil and gas resources. But this year will be a turning point: For the first time, Chinese overseas investment will surpass foreign direct investment into China.

Chinese investment is poised to exceed $120 billion in 2014, up from $108 billion last year, predicts the Beijing-based Center for China & Globalization in a report released Wednesday. Foreign investment into China totaled $87.36 billion in the first nine months. It is expected to reach $120 billion this year.

“China’s sustainable growth and its ability to compete on the world stage hinge upon the speed at which it can foster its own powerful international companies,” said Long Yongtu, the chairman of the center, the China Daily reported today. “’Going out’ will provide a platform for Chinese companies to grow through participation in the global economy.”

via Asset-Hungry Chinese Companies to Spend $120 Billion in Overseas Purchases This Year – Businessweek.

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