Archive for ‘Economics’

29/07/2012

* Tailored in China, for Team World

China Daily: “The record number of Olympic teams clad in clothes bearing Chinese innovations brings a “made-in-China” to “created-in-China” paradigm shift to the London Games. Erik Nilsson, Wu Ying, Cecily Liu, Wang Zhenghua and Tiffany Tan report.

While much ado has been made about the fact that Team USA‘s uniforms for the London Olympics are made in China, less attention has been given to the record number of foreign teams’ uniforms not only manufactured, but also designed, by domestic companies.

Leading the pack is home-grown label Peak, which sponsors seven countries that will participate in 20 events in London, a major backer at the Games after Nike and Adidas. Because the design process takes months – it may take up to a year until manufacturing is complete – Peak had to turn away 10 countries that approached it for the 2012 Games.

Next up is Li-Ning, named after and founded by the Chinese Olympic champion, which sponsors teams from eight countries and more than 600 individual athletes from 17 countries across the five continents – one for every Olympic ring.

Other companies with foreign clients include Adivon, Qiaodan, Erke, 361 and Xtep. A far greater number of domestic companies manufacture uniforms, apparel and merchandise developed at home and abroad.

“The phenomenon indicates domestic sportswear companies are rapidly growing and earning a say on the international stage,” says Jian Jie, senior sponsorship products manager of Li-Ning’s sports resources products department.

“It also shows that brand influence becomes increasingly important in the sportswear field and ‘made in China’ is gradually transforming to ‘created in China’. The alliance between a domestic brand and an international brand can internationalize Chinese brands and generate greater access to the partner’s market.

“The alliance during the Olympics can also increase the exposure of the domestic brand, promote its brand value and further its recognition at home and abroad. Through cooperation with the foreign brands, domestic brands can also improve.””

via Tailored in China, for Team World[1].

29/07/2012

* Thirsty South Asia’s river rifts threaten “water wars”

WSJ: “As the silver waters of the Kishanganga rush through this north Kashmir valley, Indian labourers are hard at work on a hydropower project that will dam the river just before it flows across one of the world’s most militarised borders into Pakistan.

The loud hum of excavators echoes through the pine-covered valley, clearing masses of soil and boulders.

The 330-MW dam shows India’s growing focus on hydropower but also highlights how water is a growing source of tension with downstream Pakistan, which depends on the snow-fed Himalayan rivers for everything from drinking water to agriculture.

Islamabad has complained to an international court that the dam in the Gurez valley, one of dozens planned by India, will affect river flows and is illegal. The court has halted any permanent work on the river for the moment, although India can still continue tunneling and other associated projects.

In the years since their partition from British India in 1947, land disputes have led the two nuclear-armed neighbours to two of their three wars. The next flashpoint could well be water.

“There is definitely potential for conflict based on water, particularly if we are looking to the year 2050, when there could be considerable water scarcity in India and Pakistan,” says Michael Kugelman, South Asia Associate at the Woodrow Wilson International Center for Scholars in Washington.”

via India Insight

29/07/2012

* China waste water pipeline scrapped after protest

BBC News: “Authorities in China say a project to build a waste water pipeline in the city of Qidong has been scrapped after a protest over pollution.

Demonstrators took to the streets of the city, north of Shanghai, and ransacked local government offices. They said the pipeline, proposed as part of a paper-making company, would pollute their coastal waters.

China has seen rising anger about environmental damage after three decades of rapid economic growth.

The thousands of protesters overturned cars as well as storming the local government offices and throwing documents from the windows. Items which the protesters allege are often received as bribes by officials – such as wine – were also seized from the offices, reports say.”

via BBC News – China waste water pipeline scrapped after protest.

Yet another example that ‘people power’ is beginning to affect decisions by local authorities in China.

See also: https://chindia-alert.org/2012/07/03/china-factory-construction-halted-amid-violent-protests/

24/07/2012

* Second child is a growing option

China Daily: “Increasing number of eligible parents want another baby.

Beijing mother Han Xue had a second child last year, 10 years after her first. But despite eligibility the process was far from easy and entailed a bureaucratic paper chase.

Han, 31, felt that two children would keep each other company and provide better support to her and her husband in old age.

“As soon as my first child turned 4, we filed an application for a permit to have a second child to the government office that oversees the street where I was born,” Han said.

Han and her husband were both single children and allowed, under the family planning policies introduced in the 1970s, to have a second child.

An increasing number of parents in this category are opting to do so.

Nanjing offers a prime example. Applications filed in the capital of Jiangsu province surged to 600 last year from 85 in 2007, family planning authorities said.

Meanwhile, the number of urban couples eligible to have two children has also increased as the single-child generation comes of marriageable age.

About 10,000 couples are eligible in Nanjing annually, and authorities estimate that by 2015 up to 17 percent of couples in the city will be entitled to have two children.

Already, about 15 percent of women in Nanjing who booked maternity beds for the second half of 2012 were expecting their second baby.

Since 1985, couples in the province are allowed a second child if both parents were single children.

In the province of Jiangxi, the story is much the same.”

via Second child is a growing option |Society |chinadaily.com.cn.

See also: Single-child policy has some negative effects

24/07/2012

* CNOOC to buy Nexen for $15.1 billion in China’s largest foreign deal

Reuters: “State-controlled CNOOC Ltd launched China’s richest foreign takeover bid yet on Monday by agreeing to buy Canadian oil producer Nexen Inc for $15.1 billion, forcing Ottawa to decide whether security concerns outweigh its desire for foreign investment in its energy resources.

CNOOC, China’s third-largest oil company, hopes to sell the deal to shareholders and the government with a hefty 61 percent premium to Nexen’s Friday stock price. It promised to retain all employees and to make Canada home base for its Western Hemisphere operations.

CNOOC is offering $27.50 cash a share for Nexen, which has oil sands operations in the Canadian province of Alberta, shale gas in the province of British Columbia and extensive exploration and production holdings in the North Sea, Gulf of Mexico and offshore West Africa.

The initial shareholder reaction was enthusiastic. Shares of Nexen, whose board unanimously approved the deal, surged C$9.06, or 52 percent, to C$26.35 in Toronto on Monday.

The move is the most ambitious foray by resource-hungry China into North American energy since a 2005 attempt to buy U.S.-based Unocal for $18.5 billion was thwarted by a political backlash there.

Chinese companies have been among the most aggressive in targeting assets around the globe to help feed demand in the world’s second-biggest economy.

As for Canada, Prime Minister Stephen Harper has pushed to attract more energy investments from China. The CNOOC deal shows his efforts are bearing fruit, and Canada has more reasons to accept the deal than to veto it.

“For Canada, this agreement provides a stable source of investment for the many projects that Nexen operates, which includes the exploitation of bitumen in Alberta,” CNOOC Chief Executive Li Fanrong said in a conference call.

“Because we intend to be a local company as much as a global one, we also intend to seek a listing for CNOOC Ltd on the Toronto Stock Exchange.”

The deal is subject to a review by the Industry Ministry, which by law must decide if the takeover would bring a “net benefit” to Canada.

In its favor is both CNOOC’s commitments to Canada, and the fact that Nexen’s operations are mostly outside Canada.”

via CNOOC to buy Nexen for $15.1 billion in China’s largest foreign deal | Reuters.

See also: https://chindia-alert.org/2012/02/13/pattern-of-chinese-overseas-investments/

20/07/2012

* China’s health reforms for all

China Daily: “Vice-Premier Li Keqiang on Thursday urged the country to push forward with medical reform.

The basic public health insurance system has covered both urban and rural areas, but the system to insure people with acute diseases and serious chronological diseases has not yet been established, Li said. He said a person who suffers from such an illness is likely to impose a major financial burden on their whole family.

Li asked medical reformers to cover such diseases under the current public health insurance system.

He also suggested that the insurance industry and the government work together to help people combat such diseases. He said government, individuals and insurance companies can together share the burden of chronic disease.

China is set to build a “relatively sound” public service system and achieve “equalization” in public service supply by 2020, according to the country’s first national plan for public services.

The State Council issued the plan, which covers the 12th Five-Year Plan period (2011-15), on Thursday. It specifies the scope of public services and defines standards and operating mechanisms for the provision of services.

The basic public services listed cover eight major sectors — public education, labor and employment services, social security, social services, healthcare, population and family planning services, and housing services, as well as culture and sports.

“It establishes a future trend that each Chinese citizen, regardless of gender, social status, wealth or place of residence, is equally entitled to basic social services, which will be detached as an ultimate goal from the household registration system,” Hu Zucai, vice-minister of the National Development and Reform Commission, said at a news conference.

Also, “it will help accelerate the transformation of the country’s economic growth pattern and boost domestic consumption”, he said.

“Promoting the equalization of basic public services is necessary to build a harmonious society and safeguard social fairness and justice,” he said.

At present, there are huge gaps in public service supply and access between urban and rural areas, different population groups and regions, Hu said.

For instance, the number of doctors serving every 1,000 people in urban areas is more than twice that in rural areas, according to the Ministry of Health.

To address discrepancies, the government will channel more social resources toward rural areas, poor regions and vulnerable social groups in order to ensure that all people have equal access to basic public services, Hu said.”

via China’s health reforms for all |Politics |chinadaily.com.cn.

20/07/2012

* Rural Chinese get online as mobile overtakes desktop

BBC News: “Mobile phones are now the most common way for people to connect to the internet in China, a report has said.

For the first time, desktop computers are no longer the leading method for the country’s 538 million connected citizens to get online.

The report from the China Internet Network Information Center (CINIC) said over 50% of the year’s new internet users were from rural areas.

A fall in smartphone costs has been the key cause of growth, experts said. “Mobile phones are a cheaper and more convenient way to access the internet for [residents in] China’s vast rural areas and for the enormous migrant population,” said the report from the state-linked CINIC.

Mobile internet users now number 388 million, up almost 10% since the start of the year. “Mobile phone prices continued to drop,” the report said.

“The emergence of smartphones under 1,000 yuan [$157, £100] sharply lowered the threshold for using the devices and encouraged average mobile phone users to become mobile web surfers.”

The total number of those online has risen 5% since the end of last year, many of whom are very active in cyberspace.”

via BBC News – Rural Chinese get online as mobile overtakes desktop.

See also: https://chindia-alert.org/economic-factors/information-technology/

20/07/2012

* India now top migrant source for Australia

BBC News: “India has become Australia’s largest source of permanent migrants for the first time, with six other Asian nations in the top 10, a report says.

Indian migrants comprised 15.7%, or 29,000, of Australia’s total migrants based on the 2011-12 Migration Programme report. China came in second, with 25,500, and then Britain with 25,275.

Most were skilled professionals, with accountants, cooks and software engineers topping the list.

China was top last year, with the UK top for the two years before that.

Of the almost 185,000 permanent migrants arriving in Australia during the June 2011- June 2012 period, more than 125,000 were from the skilled migrant programme.

————————————–

Australia migration 2011-2012

Total: 184,998

India: 29,018

China: 25,509

UK: 25,274

Philippines: 12,933

South Africa: 7,640

Source: Department of Immigration and Citizenship

====================================

Most of the new arrivals came from Asian nations. Aside from India and China, other source countries included the Philippines, Sri Lanka, Malaysia, South Korea and Vietnam.”

via BBC News – India now top migrant source for Australia.

19/07/2012

* In China, wait leads to standoff with officials

San Jose Mercury News: “The Chinese sometimes display a remarkable tolerance for those who cut in line but such forbearance apparently has its limits when queue-jumpers are government officials.

Thousands of people threw water bottles and blocked traffic at a popular nature preserve in northeastern China on Sunday after word spread that the arrival of top Communist Party leaders was causing an hours-long wait to visit a scenic lake. It was one of a string of brash confrontations in recent months between the authorities and Chinese citizens.

The infuriated crowd surrounded the vehicles carrying the government entourage and refused to let them pass, according to scores of microblog posts sent out by those waiting to ascend Changbai Mountain in Jilin Province. The three-hour standoff drew police officers and soldiers, some of whom reportedly beat recalcitrant protesters.

According to one witness, thousands of people chanted for a refund of the $20 entry tickets and later demanded that the officials leave their besieged vehicles and apologize. “Fight privilege!” the witness wrote.

The accounts, posted on Sina Weibo, a Twitter-like service, were later deleted by the company’s in-house censors but many postings were saved and reposted on overseas websites like Ministry of Tofu and China Digital Times whose servers cannot be reached by Chinese censors.”

via In China, wait leads to standoff with officials – San Jose Mercury News.

See also:

19/07/2012

* ONGC to Continue Exploration in South China Sea

WSJ: “India’s state-run Oil & Natural Gas Corp. will continue to explore for oil and gas offshore Vietnam in the South China Sea, ignoring objections from China.

ONGC Videsh Ltd., the overseas investment arm of ONGC, has accepted Vietnam’s proposal to stay invested in Block 128 as Hanoi has offered additional data that can help to make future exploration economically feasible and discovering hydrocarbons commercially viable, a senior executive with the company said Thursday.”

via ONGC to Continue Exploration in South China Sea – WSJ.com.

See also: https://chindia-alert.org/prognosis/and-india/

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