Archive for ‘Economics’

27/02/2012

* Thousands in lead-laden area to move

China Daily: “Thousands of villagers in the lead-contaminated regions of Lingbao, in Central China’s Henan province, are scheduled to move in May into newly-built houses that area safer distance from lead refineries, local government officials said.

Zhao Tie’an, head of Yuling township in Lingbao, told China Daily that the government has built 102 houses for the residents of Xiayao village, where 355 out of 364 children under age 14 were found to have excessive lead in their blood last July.”

http://www.chinadaily.com.cn/china/2012-02/27/content_14696184.htm

There seems to be a concerted effort by Government to counter the effects of pollution and corrusption.  This is one of several actions announced in the last few weeks alone.

25/02/2012

* Indian government action ref nuclear plants

The Hindu: “Close on the heels of the publication of Prime Minister Manmohan Singh’s assertion in an interview in the latest issue of journal Science that some United States-based NGOs are behind the agitation against the Kudankulam nuclear power plant, the Centre on Friday announced the revocation of the licences of three NGOs.

MESSAGE TO MOSCOW

Simultaneously, India told Russia, which is collaborating with India in the 2,000-MW plant, that the government was engaged in consultations with all stakeholders and appreciated Moscow’s patience.

At ‘Comprehensive Foreign Office Consultations,’ Foreign Secretary Ranjan Mathai told Russia’s First Deputy Foreign Minister Andrei Denisov on Thursday that India was consulting various domestic constituencies and working on the opening of the first 1,000 MW unit, a process that would pave the way for operationalising the second unit six months later.

The Centre has offered half of the electricity to be produced to Tamil Nadu, where four more units have been planned.”

23/02/2012

* China finally realises that migrant workers are not a transient matter

China Daily: “China has clarified its residence policies to facilitate domestic migrants’ settling in small and medium-size cities as permanent residents, a move intended to further push theurbanization drive.

In cities of county-level or below, people who have stable jobs and residences may apply forpermanent residence permits, along with their spouses, unmarried children, and parents,according to a State Council circular posted online late Thursday.

In medium-size cities, people who have stable jobs for three years, stable residences, and havepaid social security insurance for at least one year, can also apply for permits to live in the citypermanently, the circular said.

That means many of China’s millions of migrant workers may be formally accepted as urbanresidents, giving them more access to public services including welfare housing and medicalinsurance, which are currently only open to holders of permanent residence permits in manycities.

Ushered in some 30 years ago, China’s reform and opening-up drive established a pattern oflabor flowing from rural to urban areas, and the country now has more than 200 million ruralmigrants working in cities.

Meanwhile, the circular said China will continue efforts to control the population of major cities,including those directly under jurisdiction of the central government, many of which are alreadyover-populated based on their existing facilities and services.”

http://www.chinadaily.com.cn/china/2012-02/24/content_14687152.htm

Some would regards these moves as a natural progression towards recognising the needs  and rights of this important 20% of the Chinese population. Others, more cynically, would ask: “Why now?” and come to the conclusion that in the year of top leadership change, minimising the causes of internal conflict is of prime importance.

22/02/2012

* The Chinese (autos) are coming

Xinhua: “Great Wall Motors has launched operations in Bulgaria becoming the first Chinese automaker to assemble cars in the European Union.

This major Chinese auto-manufacturer says it will start with an initial production of 2,000 cars a year rising to 50,000 by 2014. The manufacturing plant, owned by Great Wall Motors and Bulgaria’s Litex Motors will initially produce cars aimed at the local market and will gradually expand into other European markets.

Since Bulgaria is a member of the European Union… the project provides Great Wall Motors with access to other EU countries at zero tariff levels. The plant currently employs 120 people but this should rise to 2-thousand workers within the next three years.”

http://news.xinhuanet.com/english/video/2012-02/22/c_131424918.htm

17/02/2012

* China resumes rail building

China Daily: “With 3,500 kilometers of new high-speed railways expected to be put into use this year, the length of China’s high-speed railways will exceed 10,000 kilometers, a senior railway official said.

One of the four arteries, the Beijing-Shanghai line, opened in June. The others will connect Beijing and Guangzhou in South China, Beijing and Harbin in Northeast China, and cities on the southeast coast with high-speed railways.”

http://europe.chinadaily.com.cn/china/2012-02/17/content_14631260.htm

The official reason for the delay was funding shortages. That may be so, but another reason was the high profile crash in July 2011 at Wenzhou due to design fault and, possibly, human error. http://www.chinadaily.com.cn/china/2011-12/29/content_14346798.htm

13/02/2012

# Pattern of Chinese overseas investments – August 2012 update

There are five kinds of Chinese overseas investments (or at least JVs) – which are not mutually exclusive – in rough order of priority:

– Natural resources: oil and gas (Sinopec, Cnooc and PetroChina have all been very active in several continents, including North America – Nexen, Canada), coal, steel, minerals (incl Australia’s Sundance), even arable land (parts of Africa and South America) – which serve an obvious need.

– Infrastructure and other tangibles: manufacturing plants (Putzmeister), oil refineries (INEOS’ Grangemouth (Scotland) and Lavéra (France), utilities (Redes Energeticas Nacionais, Energias de Portugal, Thames Water; Brazilian electricity grid), office blocks (Canary Wharf, London), housing in the US; Spanish construction company; all sorts in parts of Africa and the Caribbeans (sports stadium, holiday resorts, roads, ports, etc) – which are ‘safer’ than holdings of US or Euro bonds and provides relatively predictable yields; they often also provide technology transfer at no additional cost.

– Technology: esp new and innovative (UK’s Centre for Integrated Photonics); geothermal energy (Iceland); Saab (to Chinese-Swedish JV); Hawker light aircraft (US); A123 Battery (US) – which builds for the future.

– Brands: especially luxury brands like yachts (Ferretti), high fashion (Cerruti, Sonia Rykiel), essentials (Weetabix, Putzmeister); soccer (inter Milan) – which reduces the outflow of currency and increases the inflow as the population gains affluence and demand for luxury goods continue to expand. But also other brands such as Saab.

– Financial houses, esp owners/managers of funds (BlackRock) – which are not as ‘safe’ as resources and tangibles, but much safer that Euro and $ bonds.

Sources:

13/02/2012

* Reverse outsourcing?

Rock Centre with MSN: “Some jobs that were outsourced to China are returning to the United States. At Lincolnton Furniture in North Carolina, owner Bruce Cochrane has reopened a once-shuttered factory and is proud to announce that his company’s wood furniture is, once again, made in America. His company has created more than 100 new jobs.

Harold Sirkin of the Boston Consulting Group projects that the shift from manufacturing in China back to the U.S., commonly referred to as ‘reverse outsourcing’ or ‘insourcing,’ will have a major impact on employment.

“Our projections are, when you take the manufacturing jobs and then the service jobs that get created alongside those, that we will add two to three million jobs to the U.S. workforce,” Sirkin told NBC’s Harry Smith in an interview broadcast Monday night on Rock Center with Brian Williams.

The news provides hope for some Americans that jobs they thought were lost forever might be making the round trip back to the United States.”

http://rockcenter.msnbc.msn.com/_news/2012/01/31/10278345-reverse-outsourcing-could-create-up-to-3-million-new-jobs-in-us

In the UK, River Island has increased it’s UK sourced products as have John Lewis and M&S and several others. The combination of wage inflation in China (and to a lesser degree in India) and the depressed state of the UK economy, combined with cost of logistics is tilting the balance to reverse outsourcing. In addition, local manufacturers are often more amenable to short run contracts, whereas global contracts tend to be based on a whole fashion season.

from The Times, Monday 13 February.

07/02/2012

* China manages to shrink its deserts each year

Xinhua: China’s deserts are shrinking by 7,585 sq km annually, compared with an annual expansion of 10,400 sq km at the end of last century. The decrease showed the desertification that started in China in the late 1990s had been “primarily brought under control,” said Zhu Lieke, deputy director of the State Forestry Administration.

China has 2.64 million sq km of land eaten up by desertification, which accounts for 27.46 percent of its land territory.

The Chinese government invests 2 billion yuan (250 million U.S.dollars) a year in fighting desertification, but it is difficult to hit the target that all the country’s “curable” desertified land will be restored by 2050. It would cost at least 238.5 billion yuan (29.8 billion U.S. dollars) to reach the goal, said Zhu.

http://news.xinhuanet.com/english/2006-05/30/content_4618229.htm

Both the reduction of deserts and the diversion of water from southern to northern rivers, and – of course – the Three Gorges Dam, are signs that a country where the majority of top leaders are trained and experienced engineers will find engineering solutions to its problems.  See – http://chindiapedia.org/Politicslocalandgeo.aspx

See also: https://chindia-alert.org/economic-factors/greening-of-china/

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06/02/2012

* India derides UK foreign aid

Times of India: “Britain today defended its multi- million pound aid to India, amid demands by ruling Conservative party MPs and others to end it, saying “now is not the time to quit”.

The passionate debate was reignited on Sunday with the re-publication of remarks by finance minister Pranab Mukherjee, who said in 2010 that in the overall context of funds that India spends on development, British aid was “peanuts”, and one that India could do without.”

http://timesofindia.indiatimes.com/world/uk/We-are-changing-our-approach-to-India-Britain/articleshow/11779696.cms

06/02/2012

* China – more support for affordable housing

China Daily: ” China vowed to expand financial support for affordable housing projects this year as the government continues its efforts to bring housing prices back to reasonable levels.

… to build 36 million affordable housing units during the 2011-2015period in an effort to give more mid- and low-income households access to housing and stabilize runaway property prices, with 10 million units planned for both 2011 and 2012.”

http://www.chinadaily.com.cn/china/2012-02/06/content_14547215.htm

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