So far this labour shortage has not had a significant impact on the economy. But if ignored, it will.
14/04/2013
* Spike in land abuse cases in China’s western regions
China Daily: “Chinese authorities are drawing up new land support policies for western parts of the country, following a sharp spike in land abuse cases in the region during the first three months of the year.
In the first quarter, cases jumped 22.4 percent year-on-year, according to statistics released by the Ministry of Land and Resources on Friday.
“Due to the focus on development of the western regions, demand for land from infrastructure construction and investment is increasing sharply, putting pressure on land supply,” said Yue Xiaowu, deputy director of the ministry’s law enforcement and supervision administration.
“This means the western regions need policy support, which is what we are working on,” Yue said.
Last year, the ministry held an investigation into illegal land use cases in western regions, studying the reasons for the surge in numbers.
Yue said that besides the increased investment and infrastructure construction, the higher rural population had also caused a rise in abuse cases involving farmland.”
via Spike in land abuse cases in China’s western regions |Society |chinadaily.com.cn.
13/04/2013
* France plans currency swap line with China: paper
Reuters: “China to make Paris a major offshore yuan trading hub in Europe, competing against London, the China Daily on Saturday cited Bank of France Governor Christian Noyer as saying.
Yuan deposits in Paris amount to 10 billion yuan ($1.6 billion), making it the second largest pool for the Chinese currency in Europe after London. Almost 10 percent of Sino-French trade is settled in yuan, also called the renminbi or RMB, according to French data cited by the official newspaper.
“The Bank of France has been working on ways to develop a RMB liquidity safety net in the euro area with due consideration of a supporting currency swap agreement with the People’s Bank of China,” Noyer told the English-language newspaper.
The yuan’s internationalization and bilateral financial cooperation could be among the main topics during French President Francois Hollande’s visit to China in late April, the paper said.”
via France plans currency swap line with China: paper | Reuters.
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- BOE Plans to Sign Yuan Swap-Line Arrangement With China Shortly – Bloomberg (bloomberg.com)
- Value of China’s currency swap deals reaches RMB2tn (wantchinatimes.com)
- China, Brazil Sign $30B Currency Swap (drudge.com)
- China, Singapore Double Currency Swap Agreement to $48 Billion – Bloomberg (bloomberg.com)
11/04/2013
* China’s ‘Going Out Strategy’ and the implications for agricultural and forestry resources in Africa
CPI: “China is shifting the global political economy which has significant implications for natural resource management. The so-called Western powers, which have dominated global natural resource institutions for centuries, may be about to witness a new mode of resource governance. Although not always perceptible, even our relationship with nature has been modified and shaped in some way due to classifications and instruments of European order. The ‘Columbian Exchange’ (the widespread exchange of animals, plants, culture and human populations following the voyage of Christopher Columbus in 1492) signified a stage of voyages of discovery which helped create the British Empire and fostered the commodification and exchange of plants through global value chains of influence. The voyages of exploration were in part derived from a need to expand territory and acquire natural resources. In the late 1660s, books such as Silva and French Forest Ordinance signified a shift in thinking and attitudes towards the unforeseen consequences of economic development over conservation. Forestry was starting to be recognised as a science. At that time, the power of the nation rested largely on the ability of nations to continue ship building; resources such as timber therefore were vital to the continuation of that power.
The twenty- first century is witnessing a different mode of power. Empire has given way to new forms of cultural imperialism, or as Nye terms it: ‘soft power’, where culture itself is used as a tool to create influence. ‘Hard’ military power and colonisation are inefficient or ineffective at securing natural resources in an increasingly globalised world, therefore more peaceful methods need to be used. International development has for some time served the purpose of mutual exchange whereby relationships have been based predominantly on a Western notion of ‘conditionality.’ Development assistance is exchanged for a level of compliance with widely shared Western values.
As China leads a new geopolitical trend in ‘South-South’ cooperation, the implications for global governance are vast. China’s new demand for natural resources has, like developing nations before them, led to expanding their boundaries beyond their own nation and engaging in exploitation of other nations. The outward expansion of industry and natural resource management was officially launched in 2001 in a package of initiatives known as the ‘going out strategy’. Since its launch, China’s mode of development based on ‘no strings attached’ financial assistance and ‘non-interference’ in internal affairs as a development strategy (rather than a Western mode of ‘conditionality’) has attracted attention and criticism. After all, Western democratic neoliberal thought has always focused on shared values, even when the planet sits in its own capitalist ruins. That is not to condone human rights abuses, oppressive dictatorships or arms trade, but to recognise that the West has itself turned a blind eye to such issues, or else paid more attention to the plight of certain citizens when natural resources have been involved.
China’s success as the ‘world’s factory’ has led to a new demand in overseas natural resources – particularly oil, timber and minerals. This has resulted in many new formed partnerships between China and Africa. One such example is the establishment of the Centre for China-Africa Agriculture and Forestry Research (CAFOR), in late 2012, in partnership with the International Network for Bamboo and Rattan (INBAR) and Zhejiang Agriculture and Forestry University (ZAFU). The project proposes to train high level professionals, improve global agriculture and forestry technology and secure China’s influence on African national policy making for international agriculture and forestry development strategies. Moreover, the centres will provide an opportunity for Sino-African agriculture and forestry culture exchange through the development of agricultural and forestry resources traditionally associated with China: tea and bamboo.
Although bamboo is largely associated with Asia, bamboo species are native to Africa. With the global population set to increase by 0.9% per year to 8.2 billion in 2030, according to FAO, there is a pressing need for substitute timber resources. Whilst the global bamboo economy is estimated at US $10 billion (which is set to double in the next five years) according to the World Bamboo Organisation, institutions to facilitate sustainable supply chains suited to the specific management characteristics of the plant are still lacking. Globally there has been a recent surge in interest in the plant in face of resource deficits, however China’s involvement in Africa would signify the first move to actively define and develop modern forestry institutions inclusive of bamboo. This not only has significant implications for Chinese focused trade and investment, but also institutionalised practices within the timber industry, which have been largely driven by Western interests.”
Related articles
- China in Africa? Capitalism or Exploitation (lloydformankind.wordpress.com)
- China woos hearts and minds in Africa (irishtimes.com)
11/04/2013
* New Beijing airport targets 2018 opening
While London continues to debate expanding Heathrow or building a new airport, Beijing takes action. Sometimes politicians in the West use ‘democracy’ as an excuse for slow progress. But often it is due to simple lack of will and decisiveness.
China Daily: “Construction of a new airport in south Beijing will start next year, and the facility is expected to be completed and put into use in 2018, local authorities announced on Wednesday.
Beijing Capital International Airport (北京首都国际机场) (Photo credit: dbaron)
Preliminary work prior to the construction of the airport, located in Daxing district, bordering Hebei province, is under way, sources with the Beijing Municipal Commission of Development and Reform said.
They added that the airport will be linked with three expressways, including one that will be newly built along the southern central axis of Beijing.
Under-way discussions over an urban rail transit to connect the airport are likely to be finished within the year.
The new airport project was approved at the end of 2012, as part of efforts to spur the development of Beijing’s southern suburbs.
Meanwhile, an air transport-related economic zone is also planned, with an investment of 84 billion yuan ($13.39 billion).
Upon completion, the new airport is expected to ease traffic pressure on Beijing Capital International Airport, which remained the world’s second-busiest airport in 2012 in terms of passenger throughput. Its passenger volume reach 81.8 million last year, according to a statement published by the airport in January.
via New Beijing airport targets 2018 opening |Society |chinadaily.com.cn.
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11/04/2013
* India, Germany sign six new pacts
Times of India: “India and Germany on Thursday inked six key MoUs including that for putting together 7 million for next four years towards joint research in the field of higher education and a pact for a soft loan of 1 billion for strengthening the green energy corridor.
A pact to promote German as a foreign language was also signed by the two sides following the 2nd round of inter-governmental consultations in Berlin.
Under pacts signed, both Germany and India have committed to 3.5 million each towards working on joint research and innovation programmes.
According to officials, under the strengthening of German language collaboration, currently 30,000 children in Kendriya Vidyalaya are learning German and under the pact they will try to increase the capacity.”
11/04/2013
* British shops ration baby milk as Chinese demand surges
Reuters: “British shops are rationing sales of baby milk after Chinese visitors and bulk buyers cleared their shelves to send it to China, where many parents fear the local versions are dangerous.
The British Retail Consortium (BRC), whose members account for 80 percent of the sector, said many stores had imposed a two-box limit on each customer to deter the “unofficial exports” to China.
Demand for foreign milk powder has been high in China since at least six infants died and 300,000 fell ill in 2008 after they drank milk laced with the industrial chemical melamine.
The scandal sapped consumer confidence in Chinese-made food and led to shortages of powdered milk in Hong Kong and Australia as people bought boxes to export to China.
The rise of the middle-class Chinese working mother has greatly increased sales of baby milk in the world’s most populous country. Fast-growing markets like China support a global baby food market worth an estimated $30 billion a year.”
via British shops ration baby milk as Chinese demand surges | Reuters.
10/04/2013
* Lloyd’s building sold to Ping An
Insurance Times: “The Lloyd’s building will be sold to Chinese insurance firm Ping An for about £260m.
There is no sign that the Lloyd’s market would need to leave the building.
Commerz Real was the firm appointed to selll the building, helped by CBRE and Savills, according to The Times.”
via Lloyd’s building sold to Ping An | Latest News | Insurance Times.
See also: https://chindia-alert.org/2012/02/13/pattern-of-chinese-overseas-investments/
10/04/2013
* Fitch Lowers Rating on China Local-Currency Debt
WSJ: “Fitch Ratings Inc. lowered one of its key ratings on China’s government debt, in one of the most prominent warnings to date over a credit buildup in the world’s second-largest economy.
![[image]](https://i0.wp.com/si.wsj.net/public/resources/images/WO-AN330_CRATIN_G_20130409193817.jpg)
The downgrade applies only to China’s yuan-denominated debt, which is primarily traded domestically—not the foreign-currency debt that it issues in international financial markets, so it is unlikely to have a big impact on global financial markets.
Nevertheless, it is the first outright downgrade in years of debt that is widely seen as buffered by China’s vast foreign-exchange reserves, highlighting a growing perception that massive lending by China’s banks, as well as shadowy nonbank lenders that operate under little regulation, could seriously disrupt China’s economic recovery.
Much of China’s debt came from a surge of lending in the wake of the 2008 global financial crisis, which helped Chinese growth rebound in part with the help of massive infrastructure projects but weighed down local governments and banks with loans. Analysts at Fitch have been part of a chorus of analysts and market players consistently sounding alarms about the run-up in China’s debt.
Saying that “risks over China’s financial stability have grown,” the credit-ratings firm lowered China’s long-term local-currency rating to single-A-plus from double-A-minus, with a stable outlook. It was its first downgrade of Chinese debt since at least 1997. It kept China’s foreign-currency debt rating unchanged at single-A-plus, saying it is well supported by China’s foreign-exchange reserves, worth $3.387 trillion at the end of 2012.
Bank credit extended to the private sector was equivalent to 135.7% of China’s gross domestic product at the end of 2012, the highest level of any emerging-market economy rated by Fitch, it said.”
via Fitch Lowers Rating on China Local-Currency Debt – WSJ.com.
10/04/2013
* China’s Dalian Wanda Makes a Play for European Movie Theaters
WSJ: “Just months after grabbing a chunk of the U.S. movie-theater market, China’s Dalian Wanda Group Corp. is moving toward becoming a global power in film exhibition, holding talks to purchase a European chain.
The talks follow Wanda’s $2.6 billion purchase last year of the second-largest U.S. chain, AMC Entertainment Holdings Inc., which has nearly 5,000 screens at 344 locations in the U.S. and Canada.
A Wanda spokesman said the conglomerate has held talks to buy a European chain but declined to provide further details.
People familiar with the situation said the conglomerate has shown interest in at least two of the Continent’s largest chains, Odeon & UCI Cinemas Holdings Ltd. and Vue Entertainment Ltd., both based in the U.K. and with thousands of screens in multiple countries. There are other European chains that Wanda could target as well.
In addition to AMC, Wanda operates 1,000 screens in China, the world’s second-largest movie market, and is aiming to expand to 2,000 by 2015, Chairman Wang Jianlin said last year.
Acquiring a big chain in Europe could make Wanda a major player in both ends of the film business; Mr. Wang has said he wants to invest in making movies in China and elsewhere. Wanda representatives have had talks with Hollywood studios about co-financing a slate of U.S. productions, people close to the discussions said.
Owning European theaters also could give the Chinese company significant leverage when negotiating the terms under which it splits box-office revenue with Hollywood studios.”
via China’s Dalian Wanda Makes a Play for European Movie Theaters – WSJ.com.
CHINDIA ALERT: You'll be living in their world, very soon 