Archive for ‘Economics’

07/09/2013

China’s Sinopec to produce cleaner gasoline from October

Reuters: “China‘s Sinopec Corp will produce lower sulfur gasoline from October, three months ahead of an official mandate, as part of a national effort to clear up the smoggy air of Chinese cities.

Except for two subsidiary plants that are undergoing maintenance, the top Asian refiner will cut sulfur in all its gasoline production from 150 parts per million (ppm) to 50 ppm from October 1, a company official said.

The new standard, national IV, is similar to Euro IV.

China, the world’s second-largest oil consumer that burns roughly two million barrels per day of gasoline, rolled out in 2011 the national IV standard for gasoline and set a January 2014 deadline to make it applicable nationally.

Despite slowing economic growth, Chinese demand for gasoline has expanded much faster than diesel this year, thanks to strong growth in car sales.

Subsidiary plants in Fujian and Hainan will move to the new grade in November after overhauls, the company official said.”

via China’s Sinopec to produce cleaner gasoline from October | Reuters.

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06/09/2013

China’s Factory Owners Hunt for Energy Savings

BusinessWeek: “Kevin Chang, general manager of Concord Ceramics, is a member of a younger generation of factory bosses in China trying to survive leaner times. That quest led him to examine the power use at his factories. He didn’t like what he found.

A worker at a textile factory in Huaibei, China, on Apr. 10

For decades after China started trading with the U.S. in 1979, most factory managers didn’t focus on electricity prices. Demand from abroad was expanding, labor was cheap, and the exchange rate favored China’s exporters. But conditions have changed since demand softened in the wake of the 2008 financial crisis. Chang says his labor costs have doubled, and the exchange rate is less favorable. Increasing energy efficiency is one way to shore up the bottom line.

The work at Concord requires constant air conditioning, and in the summer electricity has accounted for as much as 15 percent of operating costs. Chang, who was already leaving the hallway lights off, installed a high-volume air-conditioning system to cut expenses. Yet once the system was up and running, his electricity bill went up. Chang hired an engineer from the China Academy of Building Research, a government think tank, in Guangzhou. The engineer figured out the cooling system was more powerful than the factory needed, so the air conditioning constantly cycled between maximum cooling and powering down, wasting energy. The solution, conceived a few weeks ago, was to run just half of the unit. Now the air remains at a steady temperature, and Chang says he should save about 40 percent on electricity bills: “A lot of things can be made more efficient.”

via China’s Factory Owners Hunt for Energy Savings – Businessweek.

See also: https://chindia-alert.org/economic-factors/chinas-manufacturing/

04/09/2013

Manmohan seeks break with developed world’s policies

The Hindu: “Prime Minister refers to an orderly exit from unconventional monetary policies in the backdrop of splits between emerging markets and the U.S. and the slowing growth of India.

Prime Minister Manmohan Singh has called for an “orderly exit” from unconventional monetary policies being pursued by the developed world to avoid damaging growth prospects of the developing world. File photo

Amid imminent phasing out of the fiscal stimulus by U.S. Federal Reserve, Prime Minister Manmohan Singh on Wednesday called for an “orderly exit” from unconventional monetary policies being pursued by the developed world for the last few years to avoid damaging growth prospects of the developing world.

In a statement before leaving for the 8th G20 Summit in the Russian city of St. Petersburg, he also underscored the importance of the grouping of industrialised and major developing economies to promotes policy coordination among major economies in a manner that provides for a broad based and sustained global economic recovery and growth.

The Prime Minister made a reference to an orderly exit from unconventional monetary policies in the backdrop of splits between emerging markets and the U.S. over its winding down of stimulus and the slowing growth of India and other four BRICS countries.

Dr. Singh said though there are encouraging signs of growth in industrialised countries, there is also a slowdown in emerging economies which are facing the adverse impact of significant capital outflow.

“I will emphasise in St. Petersburg the need for an orderly exit from the unconventional monetary policies being pursued by the developed world for the last few years so as to avoid damaging the growth prospects of the developing world,” he said.

Brazil, India, Russia, China and South Africa — grouped in the BRICS bloc seen as an alternative economic powerhouse — all go into the meeting experiencing slowing growth, embattled currencies and huge capital outflows.

The Indian rupee has lost one-fifth of its value against the US dollar this year following major capital outflows triggered mainly due to the moves by the Fed Reserve.

India is also suffering a decade-low growth and GDP rose just 4.4 per cent in the first quarter this fiscal, the weakest performance since 2009.

Dr. Singh said he will once again emphasise at the Summit that the G20 should ensure primacy of the development dimension in his deliberation, focus on job creation, promote investment in infrastructure as the means of stimulating global growth and create potential in developing countries to sustain higher growth in the medium term.”

via Manmohan seeks break with developed world’s policies – The Hindu.

03/09/2013

Beijing aims to slash coal use

China Daily: “The Beijing municipal government has vowed to slash the capital’s consumption of coal by more than 50 percent over five years based on 2012 levels, according to a clean-air action plan issued on Monday.

Beijing aims to slash coal use

With the plan, local government is aiming to reduce the proportion of coal used within the city’s total energy mix to below 10 percent. Pollution from coal-fired emissions is a major contributor to Beijing’s smog, especially during the winter.

The plan aims to reduce the amount of fine particulate matter to 60 micrograms per cubic meter by 2017, which would be a 25 percent drop from 2012 levels. This requires the capital to slash 13 million metric tons of coal consumption over five years.

The municipal government has been cutting down on coal consumption for 14 years, according to China Environmental News, which is run by the Environmental Protection Ministry. Within that time frame, according to the publication, Beijing has slashed 7 million tons from its total coal consumption.

The plan issued on Monday lists a number of coal-cutting measures, including allocating a coal quota to districts and key users, strengthening the capital’s gas and electricity supply and revising a sulfur concentration standard in coal.

By reducing its coal consumption, the government says it will increase the demand for natural gas supply to 24 billion cubic meters by 2017, a goal the government said it will meet.

“The supply of natural gas within and outside China is promising since more natural gas reserves have recently been discovered,” said Zhou Dadi, vice-chairman of China Energy Research Society.

Four gas-based power plants will begin operations in Beijing by 2014. It has been estimated that they will cut the use of coal by about 9.2 million tons.

Another measure within the plan calls for replacing low-quality coal usually used in rural and suburban areas with high-quality coal that is low in sulfur content before the 2016 heating season begins.

“These areas use about 4 million tons of coal every year, accounting for less than 20 percent of the city’s total consumption. Yet because of the coal’s low quality, the sulfur dioxide generated amounts to more than 70 percent of the total emissions,” said Wang Jian, deputy head of the pollution prevention and control department of the Environmental Protection Ministry.

Wang said all low quality coal will be phased out in 2016.

Beijing is also trying to completely eliminate the use of coal within the Second Ring Road, the core area of the city, an aim first established in 2001. So far, about 200,000 households had switched from coal to electricity by the end of last year. The plan issued on Monday said by the end of 2015, the remaining 65,000 households within the area will begin using electricity for their winter heating.”

via Beijing aims to slash coal use |Society |chinadaily.com.cn.

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02/09/2013

Hard Facts on China

I believe that the data in the referenced material below is valid, but not sure of the conclusions.

http://horne.vplp.org/2012/11/hard-facts-on-chinaa-must-read.html

02/09/2013

No decision in India on shutting petrol pumps at night: Moily

The Hindu: “Amidst a storm over proposal to shut petrol pumps during night to taper fuel demand, Oil Minister M. Veerappa Moily on Monday said the government had not made any such proposal and the idea had come from public.

“No decision has been taken to keep petrol pumps dry during any part of the day,” Oil Minister M. Veerappa Moily said on Monday. File photo

“It is not our idea. It is an idea which is coming from public and others. No decision has been taken to keep petrol pumps dry during any part of the day,” he told reporters.

His Ministry plans to launch a massive fuel conservation drive from September 16 to cut fuel demand by 3 per cent and save an estimated Rs. 16,000 crore or $2.5 billion in Forex outgo.

“We are toying with the ideas (on conserving fuel) that have come to us. That doesn’t mean we have accepted them or are enforcing shutdowns,” he said.

Mr. Moily said before the planned launch of September 16 campaign, several proposals to save cut fuel consumptions have come to the government and as per usual practice are being mulled over by his ministry.

“It is incorrect to say that any decision on shutting petrol pumps has been taken,” he added.”

via No decision on shutting petrol pumps at night: Moily – The Hindu.

01/09/2013

Jiang Jiemin: China corruption probe into top official

There are increasing signs that this time, anti-corruption is being taken very seriously by the Party and government.

BBC: “Chinese authorities have announced a corruption investigation into Jiang Jiemin, the head of the commission that oversees state-owned companies.

File picture of Jiang Jiemin

The supervision ministry said Mr Jiang was suspected of a “serious violation of discipline”. He has not publicly commented on the allegations.

The term is used to refer to corruption by managers of state companies.

President Xi Jinping has vowed to eradicate corruption in China, warning that it threatens the Communist Party.

Recent months have seen several high-profile corruption cases against high-ranking officials, including disgraced senior party official Bo Xilai, who was put on trial for bribery, embezzlement and abuse of power in August.

The verdict in his case is expected “at a date to be decided”. Mr Bo denies all charges.

Until March Mr Jiang was head of the China National Petroleum Corporation (CNPC), which has faced a number of corruption allegations.

Last week it was announced that another four CNPC executives were under investigation for corruption.

Earlier in August the general manager of state-owned phone company China Mobile Ltd was detained in the southern province of Guangdong. He too is being investigated for discipline violations.

Internet users are also increasingly pursuing those perceived as having done wrong through online exposes and campaigns.

But in recent weeks there have been signs that this has worried the authorities, with a number of journalists arrested for “rumour-mongering” and a high-profile blogger arrested.”

via BBC News – Jiang Jiemin: China corruption probe into top official.

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30/08/2013

China’s Rich Want Their Say on Policy Reform

BusinessWeek: “Pan Shiyi is a real estate tycoon whose company Soho China has built some of the most fashionable developments in the country. Pan has a political side, too, which he expresses in a blog followed by 16 million Chinese. After Pan posted a call for increased transparency on how authorities monitor pollution, the governments of Beijing and 73 other cities started releasing more daily pollution data. He was also invited to tour the offices of the environmental protection agency for Beijing after a heated online exchange with its spokesman.

He Di co-founded the Boyuan Foundation

Such an episode would have been unthinkable in China 10 years ago, given the tight censorship. But China now has an emerging business class that wants to influence the debate on pollution, economic reform, U.S.-China relations, and broader political change. Some, such as Pan and Lee Kai-Fu, ex-head of Google China (GOOG), use the Internet to spread their views. Others, including the founders of the Boyuan Foundation, take an institutional approach to reform and seek ways to engage the government. Most of these executive-activists back what’s known in China as universal values—the rule of law, free markets, and freedom of speech, assembly, and religion.

Lee’s two microblogs have more than 66 million followers, an audience nearly as big as the Communist Party’s membership. In between notes on his family, Lee points out cases of corruption and censorship and advocates greater freedom of expression. In the past half year, the government imposed a temporary gag on his social media activities after he criticized the state’s backing of a search engine run by the People’s Daily. (Lee is back blogging.) An army colonel has accused Lee of being an American spy.”

via China’s Rich Want Their Say on Policy Reform – Businessweek.

See also: https://chindia-alert.org/political-factors/recent-chinese-politics/

30/08/2013

To a Chinese Scrap-Metal Hunter, America’s Trash Is Treasure

BusinessWeek: “Just before 8 a.m., Johnson Zeng eases his rented Chevrolet into a space in front of Cash’s Scrap Metal & Iron in St. Louis. He’s in the market to buy scrap metal he can ship to China, and this is the first stop of the day in the middle of a two-and-a-half-week road trip to regular suppliers that started in Albuquerque and will end in Spartanburg, S.C. But that, Zeng says, is nothing. “My last trip with Homer,” he recalls, referring to Homer Lai, the scrap importer in China’s Guangdong Province who provides him with most of his business, “we drove 9,600 miles in 26 days.”

To a Chinese Scrap-Metal Hunter, America's Trash Is Treasure

The result? Millions of pounds of metal worth millions of dollars left the U.S. for China.

Zeng is one Chinese trader, in one rental car, traveling across the U.S. in search of scrap metal. By his estimate, there are at least 100 other Chinese traders like him driving from scrap yard to scrap yard, right now, in search of what Americans won’t or can’t be bothered to recycle. His favorite product: wires, cables, and other kinds of copper.”

via To a Chinese Scrap-Metal Hunter, America’s Trash Is Treasure – Businessweek.

see also: https://chindia-alert.org/2013/02/10/china-targets-287b-resource-recycling-industry/

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