Archive for ‘Economics’

25/03/2013

* China’s Xi tells Africa he seeks relationship of equals

Reuters: “China’s new president told Africans on Monday he wanted a relationship of equals that would help the continent develop, responding to concerns that Beijing is only interested in shipping out its raw materials.

TANZANIA-DAR ES SALAAM-CHINA-XI JINPING-ARRIVAL

On the first stop on an African tour that will include a BRICS summit of major emerging economies, Xi Jinping told Tanzanian President Jakaya Kikwete that China’s involvement in Africa would help the continent grow richer.

“China sincerely hopes to see faster development in African countries and a better life for African people,” Xi said in a speech laying out China’s policy on Africa, delivered at a conference center in Dar es Salaam built with Chinese money.

Renewing an offer of $20 billion of loans to Africa between 2013 and 2015, Xi pledged to “help African countries turn resource endowment into development strength and achieve independent and sustainable development”.

Africans broadly see China as a healthy counterbalance to Western influence but, as ties mature, there are growing calls from policymakers and economists for a more balanced trade deal.

“China will continue to offer, as always, necessary assistance to Africa with no political strings attached,” Xi said to applause. “We get on well and treat each others as equals.”

But gratitude for that aid is increasingly tinged with resentment about the way Chinese companies operate in Africa where industrial complexes staffed exclusively by Chinese workers have occasionally provoked riots by locals looking for work.

Countering concerns that Africa is not benefitting from developing skills or technology from Chinese investment, Xi said China would train 30,000 African professionals, offer 18,000 scholarships to African students and “increase technology transfer and experience”.”

via China’s Xi tells Africa he seeks relationship of equals | Reuters.

24/03/2013

* Africa’s trade ties with China in spotlight as President Xi visits

Reuters: “Chinese President Xi Jinping faces growing calls from policymakers and economists in Africa for a more balanced trade relationship between the continent and China as he arrives in Tanzania at the beginning of an African tour on Sunday.

Chinese President Xi Jinping adjusts his earphones during his visit to the Moscow State Institute of International Relations in Moscow March 23, 2013. REUTERS/Sergei Karpukhin

China’s ties with the continent dates back to the 1950s, when Beijing backed African liberation movements fighting to throw off Western colonial rule. It has built roads, railways, stadiums and pipelines to win access to Africa’s oil and minerals like copper and uranium to feed its booming economy.

Many across Africa see China as a valuable counterbalance to the West’s influence. But as the relationship matures there is mounting discomfort in Africa that the continent is exporting raw materials while spending heavily to import finished consumer goods from the Asian economic powerhouse.

“He will be looking to tone down the feeling that China is just here to exploit resources. I think that is going to be his main job,” James Shikwati, director of the Nairobi-based Inter Regional Economic Network think tank, told Reuters.

China’s new leader is due to land in Tanzania’s commercial capital, Dar es Salaam, on Sunday for a state banquet before delivering his first policy speech on Africa in a Chinese-funded conference hall on Monday.

Xi will go on from Tanzania to South Africa where leaders of the world’s major emerging economies, known as the BRICS, will meet on Tuesday and Wednesday and could endorse plans to create a joint foreign exchange reserves pool and an infrastructure bank at a summit.

The proposal underscores frustrations among emerging markets at having to rely on the World Bank and International Monetary Fund, which are seen as reflecting the interests of the United States and other industrialized nations.

Xi’s visit to Africa – which ends in the Republic of Congo – on his first trip abroad is seen as a demonstration of Africa’s strategic importance to China, driven by Beijing’s hunger for resources and African demand for cheap Chinese imports.”

via Africa’s trade ties with China in spotlight as President Xi visits | Reuters.

24/03/2013

* In a Changing China, New Matchmaking Markets

NY Times: “FROM her stakeout near the entrance of an H & M store in Joy City, a Beijing shopping mall, Yang Jing seemed lost in thought, twirling a strand of her auburn-tinted hair, tapping her nails on an aquamarine iPhone 4S. But her eyes kept moving. They tracked the clusters of young women zigzagging from Zara to Calvin Klein Jeans. They lingered on a face, a gesture, and then moved on, darting across the atrium, searching.

Throughout Sanlitun Village, an open-air mall in Beijing, Yang Jing searches for potential matches for clients.

Informal “marriage markets,” where parents try to find spouses for their children, have popped up in parks throughout Beijing, including the Temple of Heaven park.

Yu Jia, at center, seeking a bride for her son Zhao Yong, viewed a photo of a possible candidate.

“This is a good place to hunt,” she told me. “I always have good luck here.”

For Ms. Yang, Joy City is not so much a consumer mecca as an urban Serengeti that she prowls for potential wives for some of China’s richest bachelors. Ms. Yang, 28, is one of China’s premier love hunters, a new breed of matchmaker that has proliferated in the country’s economic boom. The company she works for, Diamond Love and Marriage, caters to China’s nouveaux riches: men, and occasionally women, willing to pay tens and even hundreds of thousands of dollars to outsource the search for their ideal spouse.

In Joy City, Ms. Yang gave instructions to her eight-scout team, one of six squads the company was deploying in three cities for one Shanghai millionaire. This client had provided a list of requirements for his future wife, including her age (22 to 26), skin color (“white as porcelain”) and sexual history (yes, a virgin).

“These millionaires are very picky, you know?” Ms. Yang said. “Nobody can ever be perfect enough.” Still, the potential reward for Ms. Yang is huge: The love hunter who finds the client’s eventual choice will receive a bonus of more than $30,000, around five times the average annual salary in this line of work.

Suddenly, a signal came.

From across the atrium, a co-worker of Ms. Yang caught her eye and nodded at a woman in a blue dress, walking alone. Ms. Yang had shaken off her colleague’s suggestions several times that day, but this time she circled behind the woman in question.

“Perfect skin,” she whispered. “Elegant face.” When the woman walked into H & M, Ms. Yang intercepted her in the sweater aisle. “I’m so sorry to bother you,” she said with a honeyed smile. “I’m a love hunter. Are you looking for love?”

Three miles away, in a Beijing park near the Temple of Heaven, a woman named Yu Jia jostled for space under a grove of elms. A widowed 67-year-old pensioner, she was clearing a spot on the ground for a sign she had scrawled for her son. “Seeking Marriage,” read the wrinkled sheet of paper, which Ms. Yu held in place with a few fragments of brick and stone. “Male. Single. Born 1972. Height 172 cm. High school education. Job in Beijing.”

Ms. Yu is another kind of love hunter: a parent seeking a spouse for an adult child in the so-called marriage markets that have popped up in parks across the city. Long rows of graying men and women sat in front of signs listing their children’s qualifications. Hundreds of others trudged by, stopping occasionally to make an inquiry.

Ms. Yu’s crude sign had no flourishes: no photograph, no blood type, no zodiac sign, no line about income or assets. Unlike the millionaire’s wish list, the sign didn’t even specify what sort of wife her son wanted. “We don’t have much choice,” she explained. “At this point, we can’t rule anybody out.”

In the four years she has been seeking a wife for her son, Zhao Yong, there have been only a handful of prospects. Even so, when a woman in a green plastic visor paused to scan her sign that day, Ms. Yu put on a bright smile and told of her son’s fine character and good looks. The woman asked: “Does he own an apartment in Beijing?” Ms. Yu’s smile wilted, and the woman moved on.”

via In a Changing China, New Matchmaking Markets – NYTimes.com.

22/03/2013

* As Pollution Worsens in China, Solutions Succumb to Infighting

NY Times: “China’s state leadership transition has taken place this month against an ominous backdrop. More than 16,000 dead pigs have been found floating in rivers that provide drinking water to Shanghai. A haze akin to volcanic fumes cloaked the capital, causing convulsive coughing and obscuring the portrait of Mao Zedong on the gate to the Forbidden City.

So severe are China’s environmental woes, especially the noxious air, that top government officials have been forced to openly acknowledge them. Fu Ying, the spokeswoman for the National People’s Congress, said she checked for smog every morning after opening her curtains and kept at home face masks for her daughter and herself. Li Keqiang, the new prime minister, said the air pollution had made him “quite upset” and vowed to “show even greater resolve and make more vigorous efforts” to clean it up.

What the leaders neglect to say is that infighting within the government bureaucracy is one of the biggest obstacles to enacting stronger environmental policies. Even as some officials push for tighter restrictions on pollutants, state-owned enterprises — especially China’s oil and power companies — have been putting profits ahead of health in working to outflank new rules, according to government data and interviews with people involved in policy negotiations.

For instance, even though trucks and buses crisscrossing China are far worse for the environment than any other vehicles, the oil companies have delayed for years an improvement in the diesel fuel those vehicles burn. As a result, the sulfur levels of diesel in China are at least 23 times that of the United States. As for power companies, the three biggest ones in the country are all repeat violators of government restrictions on emissions from coal-burning plants; offending power plants are found across the country, from Inner Mongolia to the southwest metropolis of Chongqing.

The state-owned enterprises are given critical roles in policy-making on environmental standards. The committees that determine fuel standards, for example, are housed in the buildings of an oil company. Whether the enterprises can be forced to follow, rather than impede, environmental restrictions will be a critical test of the commitment of Mr. Li andXi Jinping, the new party chief and president, to curbing the influence of vested interests in the economy.”

via As Pollution Worsens in China, Solutions Succumb to Infighting – NYTimes.com.

21/03/2013

* Millions of tonnes of rural refuse are dumped in waterways a year, bill says

So it’s not only factories and chemical plants that are at fault.  Common rural folk are too!

SCMP: “Many were shocked when thousands of dead pigs were found floating on Shanghai’s Huangpu River this month, but animal carcasses are not the only things that end up in the nation’s waterways.

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Rivers and lakes are among the major dumping sites of some 190 million tonnes of household waste generated in rural areas every year, most of which are casually dumped without being recycled or properly treated, according to a bill submitted to the annual session of the Chinese People’s Political Consultative Conference in Beijing last week.

Research by the China Association for Promoting Democracy, one of the mainland’s eight non-communist political parties, shows that most household refuse in the rural areas is piled on the side of roads, dumped under bridges, in fields or on river banks, or simply burned.

Researchers said the variety and amount of rural waste had risen markedly over the past decade as living standards improved.

In rural areas, household refuse used to comprise mainly of kitchen waste and ash from burning coal or firewood, but Wang Jinxia, a researcher at the Chinese Academy of Sciences‘ Centre for Chinese Agricultural Policy, said there was now more plastic packaging, sanitation products and even furniture in the thrown-away waste.

Wang said the limited amount of household waste, most of it biodegradable, could be absorbed by nature’s self-cleaning capacity in the past, but now the amount and variety of trash had far exceeded that capacity, threatening the environment.

“It [dumping refuse in rivers] is a rather prevalent phenomenon … in some extreme cases, the rivers are even clogged,” Wang said.

In the past month, photos have been posted online in a campaign to record polluted rivers, some completely covered by garbage. A stream in the Yongding county of Fujian province was used as a dump for waste including glass bottles, plastic bags, used lanterns and even furniture.

Last month, a Zhejiang businessman offered a 200,000 yuan (HK$247,000) reward to an environmental official in Ruian in challenging him to swim in a river full of household refuse and waste rubber from a shoe factory.

Every summer, 150,000 to 200,000 cubic metres of refuse is retrieved from the reservoir above the massive Three Gorges Dam to prevent it from jamming the floodgates, official media reports say. The waste include tree branches washed into the Yangtze by torrential rains, but most of it is household refuse from families living along the river’s upper reaches. Some rivers in cities have also become casual dump sites. For example, The Beijing News reported this month that the authorities had retrieved more than 10,000 corncobs from the moat of the Forbidden City – among the four tonnes of refuse that tourists threw into the Tongzi River.

Some sections of the waterway in the old town of Lijiang , a popular city for tourism in Yunnan province, were also found to be congested with plastic bottles, disposable tableware and other refuse, China National Radio reported last year, while some restaurants were accused of discharging their wastewater – containing grease and detergent – directly into the river.

The mainland banned the dumping of household refuse and industrial waste in rivers, lakes, canals and reservoirs in 2004 when the Solid Wastes Pollution Prevention Law was amended.

But researcher Wang, who did a survey of about 120 villages in seven provinces in 2010, said there was no such government oversight in some regions.

The high cost of refuse collection and treatment had also discouraged some local governments from tackling the problem, Wang said. For instance, a town with 50,000 residents would need to spend at least 3.5 million yuan a year for proper waste disposal, Wang said.

“Without a public service to collect and cart away the trash, people in rural villages have no choice but to dump it in the waterways or fields,” she said.”

via Millions of tonnes of rural refuse are dumped in waterways a year, bill says | South China Morning Post.

21/03/2013

* Britain’s oldest wine merchant puts new Chinese wine on sale

Reuters: “Britain’s oldest wine merchant is giving its official stamp of approval to Chinese wine by stocking four wines produced in China from European grapes, a production shift which could help China muscle into the world wine market.

Barrels of wine are seen inside a wine cellar in Chateau Changyu Afip Global on the outskirts of Beijing, September 17, 2010. REUTERS/Barry Huang

Berry Bros. & Rudd, which dates back 314 years and is a supplier to the royal family, said it was the first major British retailer to put Chinese wines on sale alongside some of the world’s finest wines.”

via Britain’s oldest wine merchant puts new Chinese wine on sale | Reuters.

19/03/2013

* China heads back to the ’90s in economic reform drive

Reuters: “China is poised to launch its most serious economic reform drive since the 1990s after a series of top appointments at the weekend put the architects of Zhu Rongji‘s clash with state owned enterprises in charge of key economic agencies.

China's Vice Premier Ma Kai attends the sixth plenary meeting of the National People's Congress (NPC) at the Great Hall of the People, in Beijing in this March 16, 2013 file photo. China is poised to launch its most serious economic reform drive since the 1990s after a series of top appointments at the weekend put the architects of Zhu Rongji's clash with state owned enterprises in charge of key economic agencies. Picture taken March 16, 2013. REUTERS-Jason Lee-Files

Vice Premier Ma Kai, Finance Minister Lou Jiwei and central bank governor Zhou Xiaochuan were all Zhu lieutenants at the State Commission for Restructuring the Economy, which drew up the blueprint to sever the army’s ties with business and make millions jobless as state-owned enterprises (SOEs) were reformed.

They headline a clutch of officials in Premier Li Keqiang’s new line-up, who are broadly considered pro-business economic reformers able to finish the work started by arch-reformer Zhu when he was premier in a way that meets the different economic conditions of today.

“China is about to bring on the structural reforms that will ultimately reduce the old SOEs to ashes,” Paul Markowski, President of New York-based MES Advisers and a long-time adviser to China’s financial authorities, told Reuters.

“This is changing the economic policy team in a way that would be akin to bringing back the Clinton economic team to run President Obama’s economic initiatives,” said Markowski, who met with senior officials – including those at the central bank and the powerful planning agency the National Development and Reform Commission (NDRC) – during China’s annual parliamentary meeting this month.

Zhu was credited with getting China into the World Trade Organisation in a move that required shutting thousands of inefficient businesses and ultimately set the nation’s exporters on course to become the world’s most prolific, driving the economy to No.2 spot behind the United States in the process.

The pace of reform hasn’t been matched since, allowing SOEs to expand their share of economic activity and retain their preferred borrower status at the nation’s banks, which critics say starves the private sector of capital and chokes innovation.

The need for an energetic push on economic reform is acute, not least because easier reforms have been done and China’s economy, now more than five times the size it was when Zhu left the stage, will respond in more muted fashion.”

via Analysis: China heads back to the ’90s in economic reform drive | Reuters.

18/03/2013

* China replaces Britain in world’s top five arms exporters

reuters: “China has become the world’s fifth-largest arms exporter, a respected Sweden-based think-tank said on Monday, its highest ranking since the Cold War, with Pakistan the main recipient.

A visitor to the China Aviation Museum, located on the outskirts of Beijing, takes a photograph of a row of old anti-aircraft guns on display in this August 17, 2010 file photo. REUTERS-David Gray-Files

China’s volume of weapons exports between 2008 and 2012 rose 162 percent compared with the previous five-year period, with its share of the global arms trade rising from 2 percent to 5 percent, the Stockholm International Peace Research Institute (SIPRI) said.

China replaces Britain in the top five arms-dealing countries between 2008 and 2012, a group dominated by the United States and Russia, which accounted for 30 percent and 26 percent of weapons exports, SIPRI said.”

via China replaces Britain in world’s top five arms exporters: report | Reuters.

17/03/2013

* Chinese state-owned railway giant goes into biz

China Daily: “The China Railway Corporation, which will take over the commercial functions of the former Ministry of Railways (MOR), went into business on Sunday.

Chinese state-owned railway giant goes into biz

The company announced its arrival via Sina Weibo, the Chinese equivalent of Twitter, two days after receiving approval from the State Council, China’s cabinet.

The company will conduct business operations that were previously conducted by the now-defunct MOR, while the newly formed State Railways Administration will handle the MOR’s administrative responsibilities.

With registered capital of 1.04 trillion yuan ($165.73 billion), the China Railway Corporation will take over all of the MOR’s related assets, liabilities and personnel, as well as shoulder the responsibility of running trains for public welfare, according to a statement posted on the government website.

The wholly state-owned enterprise is administered by the central government and supervised by the Ministry of Transport, the statement said.

The move was made as part of the government’s efforts to restructure its cabinet, as well as eliminate a previous situation in which the MOR played roles as both market participant and regulator in the railway sector.

The company is expected to address the MOR’s high remaining debt and improve the country’s massive railway network.”

via Chinese state-owned railway giant goes into biz |Economy |chinadaily.com.cn.

16/03/2013

* Shell, Samsung in China pilot to ease currency controls

Reuters: “China has eased strict cross-border currency rules for 13 multi-national firms including Samsung and Shell in a scheme that further cranks open its tightly controlled capital account, financial sector sources told Reuters.

A Shell fuel leaves the Kingsbury fuel terminal, central England June 11, 2008. REUTERS/Darren Staples

The experiment, which has not been publicly announced by the government, gives firms freedom to shift funds worth up to 30 percent of their invested capital in China across its borders, bankers directly involved in the scheme said.

The move responds to growing demand from international firms operating in China for freedom to use soaring stores of yuan, also know as the renminbi, to boost the efficiency of their management of capital while keeping speculative pressure at bay.

“It’s a way of opening up the capital account which helps companies deal with the real flows of the economy,” Michael Vrontamitis, head of product management of transaction banking for East Asia at Standard Chartered in Hong Kong, told Reuters.

“Those are the real flows. These companies are not speculating on the currency,” said Vrontamitis, whose bank is handling transactions for Shell under the pilot program.

Six of the firms involved are foreign, eight company executives and bankers with knowledge of the matter said. They are Shell, Samsung, Intel Inc, Alcatel-Lucent, Schneider Electric and Caterpillar Inc.

The other seven companies are Chinese state-owned enterprises: Sinochem Corp, China Minmetals Resources, China Shipping Group, COFCO Group, Baosteel Iron & Steel, Shanghai Electric Group Co. and China Eastern Airlines.

Some of the names of participating companies and banks have been reported in the Chinese media, but the full list has not been disclosed. The currency regulator declined to comment.

via Shell, Samsung in China pilot to ease currency controls: sources | Reuters.

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