Archive for ‘Economics’

26/06/2014

Chinese tycoon’s stunt to feed New York homeless ends in shambles – Telegraph

A stunt by a Chinese tycoon to provide free lunch to 300 homeless people in one of New York’s finest restaurants degenerated into a shambles as word spread that the participants would not be receiving an anticipated cash handout.

A waiter serves dessert to a table of men listening to Chinese billionaire Chen Guangbiao during a lunch he sponsored for hundreds of needy New Yorkers

The first simmerings of discontent emerged in the Central Park Boathouse as sesame-encrusted tuna appetisers were being served.

By the time the main course of rump steak was on the tables, the mood had turned thoroughly sour, as news that there was to be no cash give-away passed around the room.

And as white-gloved bow-tied waiters cleared berries and creme fraiche from the tables, there was near-mutiny, with burly private security men forced to prevent some angry diners from storming the podium.

Chen Guangbiao, a controversial recycling magnate, self-publicist and philanthropist, had earlier sung a version of We Are The World, the Michael Jackson hit written to raise charity funds for Africa.

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But the mood of goodwill and gratitude quickly dissipated as diners learned that they would not be receiving the $300 in cash that Mr Chen had originally promised everyone who attended after the meal.

Officials at The New York City Rescue Mission, which the billionaire had approached to help organise the event, told him they would only participate if the money was donated to their organisation to provide meals for the homeless.

“We work with the homeless every day, many of them unfortunately have drink and drugs problems, and it just isn’t a good idea to give that sort of cash out to people,” said Michelle Tolson, the mission’s spokeswoman.

“Mr Chen agreed that he would donate the $90,000 to the mission and that is the basis on which we are here today.” That message had not, however, reached many of the recipients of the free meal who were bused to Central Park from a downtown shelter.

“We have been duped to come along here under false pretences and now we are just part of a propaganda trick for the rich” said Harry Brooks, a Vietnam war veteran who tried to reach the stage to voice his complaints in person.

“We don’t need their steak, we need the money so that we can pay for food and clear debts. Now we’re never going to see it. This is a disgrace.”

via Chinese tycoon’s stunt to feed New York homeless ends in shambles – Telegraph.

26/06/2014

CaptureSolar Raises $107 Million for India Solar Project – Businessweek

CaptureSolar Energy Ltd. raised $107 million for a solar park to supply Indian businesses suffering from rising costs for power generated mostly from coal.

The utility will get 86 percent of the $125 million for the project from Cyprus-based Concept Solutions & Innovations Ltd., CaptureSolar Chief Executive Officer Raju Bhosale said today by phone. Pune-based CaptureSolar will pay for the rest.

The 75-megawatt photovoltaic park will be completed in two phases by March 2015 and charge about 6 rupees (10 U.S. cents) a kilowatt-hour under a 25-year contract, Bhosale said. The price is about 8 percent below the level industrial and commercial businesses currently pay, he said.

via CaptureSolar Raises $107 Million for India Solar Project – Businessweek.

26/06/2014

Building Golf Courses in China: An Illegal and Booming Industry – Businessweek

Like the U.S., China has an extensive national park system. Still, its designated parklands aren’t always protected from economic development. On Tuesday, Beijing Youth Daily published an investigation into how 20,000 acres of protected land in southern China’s Guizhou Forest Park were converted into golf courses, padding the pockets of local developers.

Clearing the way for a golf course in China's southern Hainan province early in 2103

A  telling note: Since 2004, construction of new golf courses has been illegal in China, following a directive of the State Council. The poorly enforced regulation hasn’t stopped the number of golf courses from multiplying from 170 in 2004 to more than 1,000 today—a more than fivefold increase in a decade, according to the paper.

The quixotic rise of golf in China—where Mao Zedong once lambasted putting as a bourgeois pastime—is the subject of a new book by the Asia Society’s Dan Washburn. In The Forbidden Game: Golf and the Chinese Dream, a charming and accessible work, Washburn follows the lives of three men whose careers are shaped by the sport: an American golf course designer who finds work in China, a budding Chinese tournament golfer, and a farmer whose land is converted into fairways.

via Building Golf Courses in China: An Illegal and Booming Industry – Businessweek.

26/06/2014

Indian Property Market Takes A Small Step Out of the Shadows – India Real Time – WSJ

Few that have bought or even rented real estate in India would be surprised by a recent survey showing the property market here can be maddeningly murky.

Jones Lang LaSalle’s Global Real Estate Transparency Index showed that while things have improved, Indian cities still have to work on transparency. The Chicago-based real-estate consultant said India needs to go further to create more clarity on the rules connected to property purchases and real estate prices.

“India still scores among the lowest in the transparency of its transaction process,” the report said.

Jones Lang LaSalle looked at just over 100 markets around the world and rated them on a dozen parameters ranging from the availability of data, the number of publicly-listed developers and the strength of regulators.

India struggles most when it comes to recording real estate transactions. Too many deals are done off the book, recorded with government offices that don’t disclose numbers or are never recorded at all, making it difficult for home buyers and even analyst to assess what a property is worth and which direction property prices are moving.

Most of the deals that pop up on everyone’s radars are big corporate transactions in bigger cities. Those above-board deals may very well be only a tiny slice of all the real estate activity though. Smaller deals done by smaller companies and in smaller cities are often hard to keep track of, analyst say, making it difficult to estimate what is really going on in the real estate market.

Meanwhile the real estate agents are too often untrained and unscrupulous in India. It seems like almost anyone can dabble in the market if they can create the right connections and grease the right palms to push through all the paperwork needed to transfer control of properties.

India’s standing was also hurt by its lack of a regulator for the real estate sector. While a regulator is in the works, the industry is currently being overseen by the Ministry of Urban Development, local registry offices and many others depending on the property.

Things are, however, better than they were a year ago. India’s biggest cities stepped up in Jones Lang LaSalle’s ranking to 40th in 2014 from 48th in 2012 while the medium-sized cities moved up to 42nd place from 49th.

The improvement is thanks to private equity firms who have been investing a lot of money and demand more transparency. India’s growing mortgage-loan market is also helping as banks require more reliable information about buyers, sellers, properties and the way deals are done, said Anuj Puri chairman of Jones Lang LaSalle Inc.’s Indian operations.

Market transparency could get a further boost soon if India’s new government goes ahead with plans to improve real estate regulations.

“Later this year India is likely to enact the Real Estate Regulation Bill, which seeks to improve regulation over real estate agents and the quality of land registry records,” the report said.

via Indian Property Market Takes A Small Step Out of the Shadows – India Real Time – WSJ.

24/06/2014

China’s Government Admits Chinese Patents Are Pretty Bad – Businessweek

For years, China’s leaders have exhorted the country’s businesses to become innovative. After all, a glorious country like China that is reasserting its role as a global superpower should be known for more than just its copycat and me-too companies. So while Chinese presidents come and go, the message is the same: Whether it’s Jiang Zemin, Hu Jintao, or the current boss, Xi Jinping, the country’s leaders have consistently talked about the importance of local innovation. Paraphrasing Xi’s remarks at a speech earlier this month at the Chinese Academy of Science and the Chinese Academy of Engineering, the Xinhua news agency reported that the government’s goal is to “push forward the fusion of science and [the] economy, so that science and technology strength can be transformed into industrial and economic power.”

Chinese President Xi Jinping at the Chinese Academy of Science and the Chinese Academy of Engineering in Beijing on June 9

By China’s own scorekeeping, though, the country’s innovators still have a way to go before they can meet the Communist Party’s expectations. While the number of patent applications inside China is “booming,” according to a report today by Xinhua, “the quality of patents is still poor.” Writing about a report to the Standing Committee of the National People’s Congress, China’s rubber-stamp legislature, Xinhua added, “China owns very few patents featuring originality and high or core technology.” Fewer than 1,000 Chinese patents have won recognition from counterparts in the U.S., Europe, or Japan, added Xinhua.

China is making progress. The gold standard in international patents remains the U.S., and Chinese from the People’s Republic applied for almost 6,600 patents in the U.S. last year, according to data from the U.S. Patent and Trademark Office (USPTO).  That’s just ahead of France and more than double the number from India. China had the sixth-largest number of patents granted by USPTO. Still, China’s innovators are hardly leaders in the U.S. The Chinese total of 6,597 U.S. patents puts it far behind Japan’s 54,170 applications. Even more embarrassing, Taiwan, the island that Beijing considers a province of China, had 12,118 patent applications granted.

via China’s Government Admits Chinese Patents Are Pretty Bad – Businessweek.

24/06/2014

A Neglected Problem in China’s Education System – China Real Time Report – WSJ

China’s top two leaders recently presided over a rare discussion on vocational education where they pushed for major changes to the country’s retrograde technical schools.

Political leaders everywhere are known to pay lip service to the need for improvements in education, but concern over China’s vocational schools is likely more than that just political bluster. That’s because the quality of the country’s lower-level technical schools could have a major impact on the country’s future economic growth.

As China looks to climb into the ranks of developed nations, one of its main goals is to evolve beyond serving as the world’s factory floor. One barrier to achieving that goal, analysts and education officials say, is the country’s lack of highly-skilled workers.

Premier Li Keqiang emphasized that point at Monday’s meeting, saying a “massive skilled labor force” was needed to upgrade the “made in China” label, “from ‘adequate’ to  ‘high-quality’ and ‘premium’” (in Chinese).

Mr. Li was talking at an unusual national-level work conference on vocational education – only the 3rd such conference to be held in China since 1978. China’s President Xi Jinping gave the opening remarks, according to the state-run Xinhua news agency, signifying the level of importance China’s leadership places on the topic.

The attention is warranted: China’s vocational programs — which teach practical skills ranging from carpentry to forestry and encompass more than 29 million students, according to Xinhua — have been badly neglected when compared with the country’s rapidly multiplying universities. Often criticized for being poorly equipped, they are also poorly managed and have trouble finding qualified teachers, experts say.

“In the vast majority of vocational education schools in China, kids are not learning anything, especially in rural areas,” said Scott Rozelle, director of Stanford University’s Rural Education Action Program, which studies China’s vocational schools. “In studies in central and northwest China, we found dropout rates of 50% in the first two years of these programs.”

Mr. Rozelle said that China’s vocational schools are the only segment of China’s educational system that lacks an evaluation system, so it is difficult to tell which schools are good and which subpar.

China is currently home to 13,600 vocation schools and colleges, which provide a large chunk of the country’s workers in labor-intensive industries. According to government estimates, they are expected to attract more than 38 million students by 2020.

The government is now pushing a number of changes to the vocational school system, including requiring local government to allocate a standard budget for vocational schools as they do for regular colleges, according to Xinhua. Private investors and non-governmental organizations are also encouraged to sponsor vocational schools, and private vocational schools will enjoy preferential loans from banks.

The state-run China Daily newspaper called the government’s recent attention to vocational schools “unprecedented”. But the devil is in the details. It won’t be clear until later how much money local governments will actually budget to upgrading the vocational school system and what kind of incentives there will be to improve.

via A Neglected Problem in China’s Education System – China Real Time Report – WSJ.

23/06/2014

Shenzhen to pump one billion yuan into building new Xinjiang university | South China Morning Post

Shenzhen will pump one billion yuan (HK$1.26 billion) into a new university to be built in Xinjiang’s southern Kashgar city, on top of the region’s own one billion yuan of investment.

uygur-uni.jpg

Shenzhen was contributing to the university in support of education in the Xinjiang Uygur autonomous region, the Xinjiang Daily reported on Monday.

“Building Kashi University will provide strong human resources to the industrial restructuring in southern Xinjiang and improve the local livelihood,” said Kenjiang Tulahong, a member of the region’s National People’s Congress Standing Committee.

Plans to build the university were announced by the State Council after a Xinjiang working group meeting in May. It was an important strategic approach, the newspaper said.

Xinjiang, in the northwest and home to the Uygur ethnic minority who are mostly Muslims, has been the focus of a security crackdown after recent violent attacks in the region and elsewhere on the mainland that the central government has blamed on terrorists and separatists who want to establish an independent state called East Turkestan.

President Xi Jinping, who chaired the second Central Work Conference on Xinjiang on May 19, stressed the importance of ethnic unity, education and economic development. Officials at the conference pledged to promote bilingual education and interaction between ethnic groups in the region.

On Monday, Xinjiang party chief Zhang Chunxian, speaking at the region’s party committee meeting, vowed to safeguard social stability and the Central Committee’s authority and political discipline on major issues opposing separatism.

The same day, Korla Evening News reported that police in Korla city, western Xinjiang, had busted an underground group that was teaching the Koran to children. Two men were arrested on suspicion of abusing two children and forcing them to study the Koran, on top of running illegal religious activities. The two pupils were then sent to local kindergartens and assigned guardians, the newspaper reported.

Kashi University, when completed, would give Uygur students more opportunities for higher levels of academic training in future, Kashgar officials said.

“Kashi University will have comprehensive departments and disciplined teachers to train a wider range of talents,” Kashgar Normal College dean Aierken Wumaier said.

The university plans to provide curriculums in the liberal arts, science, art, engineering, management, economics and medicine, among others, he said. The institute aimed to recruit 13,000 students by 2015, he added.

via Shenzhen to pump one billion yuan into building new Xinjiang university | South China Morning Post.

19/06/2014

Plotting the Shape of India’s Recovery – India Real Time – WSJ

Optimism abounds in India following Narendra Modi’s unexpectedly strong election victory. It’s still early days, but the new government’s priorities and coherence are a breath of fresh air.

As India’s economy gets back on its feet, one question is whether the  recovery will be shaped like a U, a V or a square root. In other words: Can growth rebound as quickly and strongly as it did after the global financial crisis?

Unfortunately, the answer is no: India’s recovery will be gradual and uneven, at least in the near term. Growth will accelerate sharply from fiscal 2016 onward.

It’s worth recalling the sting from the global financial crisis. Gross domestic product growth, as measured by production, plunged to 5.8% on-year in the final quarter of 2008, from 9.8% in the second quarter. Growth in expenditure GDP – a less reliable measure – dropped even more, to 1.5% on-year from 8.1%.

The main casualty was growth in gross fixed capital formation, which typically enhances an economy’s productive capacity. This fell from 13.9% in the second quarter to 2.1% in the fourth quarter – then declined by nearly 10% in early 2009.

Afterward, both capital formation and GDP recovered rapidly in a classic V-shaped pattern. Production GDP growth, which fell to 6.7% in fiscal 2009, averaged 8.8% a year in the next two fiscal years. Gross fixed capital formation averaged nearly 10% growth per year in fiscal 2010 and 2011, a swift recovery that hinted the economy was once again on an elevated trajectory — though policy paralysis later shortchanged it.

via Plotting the Shape of India’s Recovery – India Real Time – WSJ.

18/06/2014

At the World Cup, It’s Made in China, Sold in Brazil – China Real Time Report – WSJ

From the official Adidas ball to armadillo figurines, China may not have made the World Cup this year, but its factories are keeping soccer fans supplied. As Chao Deng and Jenny W. Hsu report:

Made in China, sold in Brazil. So it goes for many a product going to fans across the world.

The country is manufacturing a long list of World Cup memorabilia—from figurines of the armadillo that serves as the games’ official mascot to wigs, flags and caps. And who could forget the (Chinese-made) vuvuzelas that cropped up when South Africa hosted the last cup? This year, the country is stocking fans with an alternative instrument, the percussive Brazilian caxirolas.

While there is no official tally of how much of the sales profits China will keep, margins could be thinning given the rise in domestic labor costs. Many global sportswear brands outsourced their production to Taiwan in the late 1980s, before the Chinese labor market opened up in 1990s, says Mr. Poon. But now, as wages rise in both China and in neighboring Southeast Asian countries, competition between factories is “not only about who’s the cheapest but who’s most efficient” in production.

“The term ‘Made in China’ is slowly becoming the definition of high-quality, even though it wasn’t the case in the past,” said Simon Lee, president of Wagon Group, the Taiwanese-owned Chinese company that is responsible for 80% of the officially licensed souvenirs for this year’s World Cup.

via At the World Cup, It’s Made in China, Sold in Brazil – China Real Time Report – WSJ.

17/06/2014

China battles to be first ecological civilisation – environment – 13 June 2014 – New Scientist

SO YOU want to live in a country that is guided by a philosophy of “ecological civilisation”, run by people with the vision to implement policies that will benefit their children even if it costs more in the short term? Move to China.

Easing off coal

Not convinced? Last week, news circulated that China is considering limiting its greenhouse gas emissions so that they peak in 2030, followed by an orchestrated fall.

It was one man’s view, expressed at a Beijing conference, not an official announcement. But He Jiankun is chairman of China’s Advisory Committee on Climate Change, and his words are in line with actions China is now taking to address global warming.

“China is already doing a lot,” says Fergus Green of the London School of Economics. “They are probably making the most progress of any country, given that they are starting from a position that is far more challenging.”

“Things are changing very, very fast,” says Changhua Wu of The Climate Group think tank in Beijing.

To be clear, China is still the biggest emitter of carbon dioxide. Cities like Beijing are plagued by smog, and efforts to clean them up may just move the pollution elsewhere. But there is a huge push for change.

Water scarcity and awareness that China will suffer from global warming are factors, but it is health concerns that loom large. The air in many cities is dangerous to breathe, the water is toxic and there are often food health scares. “People are fed up,” says Wu.

Premier Li Keqiang has declared a “war on pollution”. His leadership has drawn up a philosophical framework called ecological civilisation. It aims to “bring everything back to the relationship between man and nature”, says Wu, and is driving major changes.

Prompted by the idea that used resources must be paid for, China has launched carbon trading schemes in six areas. There, companies must pay to pollute, and abide by a cap on overall emissions. A seventh scheme should start within weeks. They will form the world’s second largest carbon trading scheme, after Europe’s. A national programme should begin this decade.

China has set targets to make more wealth using less energy and it is on course to meet them. It contributes one-fifth of global investment in renewables, more than any other nation, has more installed wind power than anywhere else and in 2013 doubled its solar capacity.

The smog is turning people off dirty power. Construction of coal-fired power stations peaked in 2007 (see graph), and smaller power stations are being switched off. According to the London-based think tank Carbon Tracker, 10 out of 30 provinces have cut their coal use, and wind capacity is growing twice as fast as coal. “The coal-fired power plants that China is building are some of the most high-tech and efficient available,” says Carbon Tracker’s Luke Sussams. There are also schemes in place to make people who pollute water pay those who suffer as a result.

Environmentalists have pushed policies like these for years. But while Western nations debate them, China is testing them and rolling out those that work.

via China battles to be first ecological civilisation – environment – 13 June 2014 – New Scientist.

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