Archive for ‘Economics’

10/06/2012

* China Passenger-Car Sales Pick Up

WSJ: “Passenger-car sales in China accelerated in May, a positive sign for the world’s second-largest economy and the largest auto market. Strong auto sales in China, a signal consumers are still buying big-ticket items, could reassure markets concerned that the country is heading for a sharp economic slowdown.

Sales in May were up 23% from a year earlier, to 1.28 million vehicles, the semiofficial industry group China Association of Automobile Manufacturers said in a statement Saturday. That’s faster than Aprils 13% pace—which was itself an encouraging turnaround from the decline in the first quarter, when sales were down 1.3% from a year earlier.”

via China Passenger-Car Sales Pick Up – WSJ.com.

One small positive indicator amongst lots of negatives.  See: https://chindia-alert.org/2012/06/10/chinese-economy-shows-a-second-month-of-anemic-growth/

10/06/2012

* Chinese Economy Shows a Second Month of Anemic Growth

NY Times: “The Chinese economy, widely seen until the last few weeks as the strongest remaining locomotive that could drag the global economy back from the brink of recession, showed a second month of anemic growth in May and performed even worse than the already lowered expectations of most economists.

Growth in industrial production, retail sales and investment in fixed assets like factories and office buildings was little changed from April, according to data released on Saturday afternoon in Beijing by China’s National Bureau of Statistics. Some economists had considered the April figures to be a fluke and had predicted a rebound in May, when the Chinese government began measures to rekindle growth.

April had been the weakest month in China since 2001 for growth in fixed-asset investment, and May was slightly weaker still. Before adjustment for inflation, retail sales grew even more slowly in May than in April. But retail sales were a little stronger in May after they were adjusted for inflation, which has slowed steadily this spring. Industrial production grew at a slightly faster pace in May from a year earlier, 9.6 percent, than it had in April, when growth was 9.3 percent.

And in an unexpected piece of good news released Sunday morning, China’s exports and imports both grew twice as fast last month as economists had expected. Exports rose 15.3 percent, triple the pace in April, and imports grew 12.7 percent after stalling the month before. Some economists said that if demand for China’s exports held up long enough for the Chinese government to start the many infrastructure projects approved in recent weeks, the country’s economy could avoid a more serious downturn.”

via Chinese Economy Shows a Second Month of Anemic Growth – NYTimes.com.

This overall view of the economy contrasts with the huge increase in passenger car sales.  See: https://chindia-alert.org/2012/06/10/china-passenger-car-sales-pick-up/

09/06/2012

* India’s Failed Food System

NY Times: ““Spurred by agricultural innovation and generous farm subsidies, India now grows so much food that it has a bigger grain stockpile than any country except China, and it exports some of it to countries like Saudi Arabia and Australia,” Vikas Bajaj writes in The New York TImes. “Yet one-fifth of its people are malnourished — double the rate of other developing countries like Vietnam and China — because of pervasive corruption, mismanagement and waste in the programs that are supposed to distribute food to the poor. ”

The biggest gap is the inefficient, corrupt system used to get the food to those who need it. Just 41.4 percent of the grain picked up by the states from federal warehouses reaches Indian homes, according to a recent World Bank study. Critics say officials all along the chain, from warehouse managers to shopkeepers, steal food and sell it to traders, pocketing tidy, illicit profits. Poor Indians who have ration cards often complain about both the quality and quantity of grain available at government stores, called fair price shops.”

via Indias Failed Food System – NYTimes.com.

See also: How close will India be in 25 years?

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31/05/2012

* Iran cancels $2 billion dam deal with China

Iran has cancelled a $2 billion contract for a Chinese firm to help build a hydroelectric dam in the country, Chinese state media said on Thursday, a move that risks upsetting Beijing, one of Tehran’s most important economic and political allies.

Iranian President Mahmoud Ahmadinejad is due to visit China next week for a security summit, where he is expected to hold talks with his Chinese counterpart, Hu Jintao, on Iran’s disputed nuclear programme.

In March 2011, Iran’s official IRNA news agency said China’s Sinohydro Corp. had signed a contract with Iranian hydro firm Farab to build the dam, described as the world’s tallest, in Iran’s western province of Lorestan. It was designed to support a 1,500-megawatt power station.

The Global Times, a popular tabloid owned by Chinese Communist Party mouthpiece the People’s Daily, said the Iranian government had decided to cancel the contract. The report did not cite sources or give a reason for the cancellation.

But it quoted Iranian media reports as saying Iran’s central bank was “dissatisfied” with financing options offered by China.

From China Daily Mail blog

Iran cancels $2 billion dam deal with China « China Daily Mail.

31/05/2012

* Senior leader says to promote Xinjiang’s leapfrog development

Xinhua: “Vice Premier Li Keqiang on Wednesday called for more support to Xinjiang Uygur Autonomous Region to achieve leapfrog development and long-term stability in this westernmost region of China. Li made the remarks at the 3rd National Work Conference on “pairing assistance” projects to support Xinjiang’s development.

Maps of Xinjiang Uygur Autonomous Region of Ch...

Maps of Xinjiang Uygur Autonomous Region of China Español: Región autónoma de Xinjiang (Photo credit: Wikipedia)

President Hu Jintao met the delegates to the annual conference and thanked them for their efforts made in accelerating Xinjiang’s development. Premier Wen Jiabao and Vice President Xi Jinping, both members of the Standing Committee of the Political Bureau of the Communist Party of China CPC Central Committee, were present at the meeting.  Zhou Yongkang, also member of the Standing Committee of the Political Bureau of the CPC Central Committee, also met with the delegates and attended the conference.

Huge achievements have been made in the past two years under a large number of pairing assistance projects for Xinjiang, especially projects concerning Xinjiang people’s well-being, said Li, also a member of the Standing Committee of the Political Bureau of the CPC Central Committee.

Vast land, abundant resources and huge development potential make Xinjiang a major area to implement China’s strategy to expand domestic demand and the strategy to develop the country’s western regions, Li said, adding Xinjiang is also a key area to accommodate transfer of domestic industries. Xinjiang is one of the bridgeheads for China’s opening to central Asia and Europe, said Li, calling for speeding up the opening of China’s western border areas while enhancing the openness of its eastern coastal regions.

Li noted that assisting the development of Xinjiang is a long-lasting, arduous and imperative task. More efforts and higher effectiveness are needed to advance the programs concerning the well-being of local people, such as housing, employment, medical care and social insurance, while the infrastructure construction and environmental protection should be further improved, said Li. More support regarding technology, education, talented people and excellent cadres should be provided to Xinjiang, and the exchanges between Xinjiang and inland areas should be enhanced, Li added.”

via Senior leader says to promote Xinjiangs leapfrog development – Xinhua | English.news.cn.

Xinjiang and Tibet are the two areas where ethnic minorities do not see eye to eye with the Han majority. Interestingly, both are strong adherents of religion; Buddhism in the case of Tibet and Islam in the case of Xinjiang. Until and unless the central authorities can convince these minorities that they have some form of self-determination (after all both are called ‘autonomous regions’ of China), unrest will continue.

31/05/2012

* Myanmar can be link between India, China: Indian PM

Times of India: “Looking to quell speculation about India and China taking their rivalry to gas-rich Myanmar, PM Manmohan Singh said the country was perfectly placed to play the role of an economic bridge between China and India. While Indian officials have often described Myanmar as India’s gateway to Aseancountries, this is the first time Myanmar has been spoken about by the government as a link between India and China.

English: Manmohan Singh, current prime ministe...

English: Manmohan Singh, current prime minister of India. (Photo credit: Wikipedia)

While China alone accounts for more than 70% of investments into Myanmar, India stands at the 13th position in terms of its investments into the country. Despite its attempts to play a larger economic role there, India continues to be looked upon as a Johnny-come-lately whose infrastructure projects, including the ambitious Kaladan multimodal transport facility, have hardly taken off. On the other hand, Beijing is even building a gas pipeline from Myanmar to China.”

via Myanmar can be link between India, China: PM – The Times of India.

30/05/2012

* Rising costs, regulations deter European firms from China

From Business in Hong Kong & China blog: PRODUCTION: Rising costs, regulations deter European firms from China.

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30/05/2012

* Apple CEO wants to make less products in China

 

From China Daily Mail blog: Apple CEO wants to make less products in China.

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30/05/2012

* Tainted children’s clothes scandal in China

A finding of cancer-causing chemicals on children’s clothes sparked public fear yesterday, after a report aired on national state broadcaster China Central Television(CCTV).

The station’s Weekly Quality Report investigative programme carried the report, claiming that a recent Beijing Consumer Association test of 63 samples of children’s clothes sold on the mainland revealed that nearly a third failed to meet quality and safety standards.

The association said that problems included excessive levels of formaldehyde and other carcinogenic chemicals.

The investigation began after consumers started complaining that their children had developed skin rashes after wearing the clothes.

From China Daily Mail blogTainted children’s clothes scandal in China.

30/05/2012

* China Buys Spanish Assets

WSJ: “A debt-laden Spanish construction firm became the latest European company to unload assets onto eager Chinese buyers, as Europes debt woes force firms to look to China for cash.

State Grid Corp., China’s government controlled power-grid operator, said Tuesday it would buy high-voltage electricity transmission assets in Brazil from Spain’s Actividades de Construccion y Servicios SA  for 1.86 billion reais ($938.2 million), including debt. The deal is State Grid’s second investment in Brazil and its fourth major investment overseas, and is the most recent in a string of deals in which a European company has looked to exit an investment amid financial troubles facing the region. ACSs standing has weaken because of its debts and the falling value of investments made during Spain’s boom years. Chairman Florentino Pérez, who is also the president of Spain’s soccer club Real Madrid CF, led ACS’s expansion when liquidity was abundant and Spain’s economy was booming on the back of a real-estate bubble that imploded about five years ago. As credit dried up, ACS began to cut down on debt by shedding assets. ACS currently has more than €9.33 billion ($11.70 billion) in debt, about a half of what it had a few years ago.

Other southern European companies have also been selling their crown jewels abroad to raise cash. Portugal, for example, is attracting significant investments from China because of its presence in former colonies that are resurfacing as high-growth markets, rich in natural resources. In December, fellow state-controlled power giant China Three Gorges Corp. won a 21% stake in EDP-Energias de Portugal SA— which has significant Brazil operations—with a €2.69 billion bid.

via China State Grid to Buy Brazilian Assets – WSJ.com.

Related posthttps://chindia-alert.org/2012/02/13/pattern-of-chinese-overseas-investments/

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