Archive for ‘Economics’

18/08/2019

Japan seeks to counter China in Africa with alternative ‘high-quality’ development

  • Beijing will be watching as leaders of African nations and international organisations gather for development summit in Yokohama later this month
  • Tokyo is expected to use the conference to articulate how its approach to aid and infrastructure is different from Chinese projects
The Mombasa-Nairobi Standard Guage Railway, funded by China, opened in 2017. Japan has criticised Chinese lending practices in Africa. Photo: Xinhua
The Mombasa-Nairobi Standard Gauge Railway, funded by China, opened in 2017. Japan has criticised Chinese lending practices in Africa. Photo: Xinhua
The long rivalry between China and Japan is again playing out in Africa, with Tokyo planning to pour more aid into the continent and invest in infrastructure projects there.
Beijing – which has for decades funnelled money into the continent – will be watching as the leaders of 54 African countries and international organisations descend on Yokohama later this month for the seventh Tokyo International Conference on African Development (TICAD).

Japan reportedly plans to pledge more than 300 billion yen (US$2.83 billion) in aid to Africa during the conference. While that might not be enough to alarm China – which in recent years has been on a spending spree in the continent – it will be paying close attention.

Japan has in the past used the meetings to criticise Chinese lending practices in Africa, saying it was worried about the “unrealistic” level of debt incurred by African countries – concerns that China has dismissed.
This year, analysts expect Tokyo will use the conference to articulate how its approach to African development is substantively different from that of the Chinese.

“So, look for the words ‘quality’, ‘transparency’ and ‘sustainability’ to be used a lot throughout the event,” said Eric Olander, managing editor of the non-partisan China Africa Project.

Japanese Foreign Minister Taro Kono gives a speech at the TICAD in Tokyo in October. Japan will reportedly pledge US$2.83 billion in aid to Africa this year. Photo: The Yomiuri Shimbun
Japanese Foreign Minister Taro Kono gives a speech at the TICAD in Tokyo in October. Japan will reportedly pledge US$2.83 billion in aid to Africa this year. Photo: The Yomiuri Shimbun

Olander said Japan often sought to position its aid and development programmes as an alternative to China’s by emphasising more transparency in loan deals, higher-quality infrastructure projects and avoiding saddling countries with too much debt.

“In some ways, the Japanese position is very similar to that of the US where they express many of the same criticisms of China’s engagement strategy in Africa,” Olander said.

But the rivalry between China and Japan had little to do with Africa, according to Seifudein Adem, a professor at Doshisha University in Kyoto, Japan.

“It is a spillover effect of their contest for supremacy in East Asia,” said Adem, who is from Ethiopia.

“Japan’s trade with Africa, compared to China’s trade with Africa, is not only relatively small but it is even shrinking. It is a result of the acceleration of China’s engagement with Africa.”

Chinese President Xi Jinping attends a group photo session with African leaders during the Forum on China-Africa Cooperation in Beijing last year. Photo: AP
Chinese President Xi Jinping attends a group photo session with African leaders during the Forum on China-Africa Cooperation in Beijing last year. Photo: AP

Japan launched the TICAD in 1993, to revive interest in the continent and find raw materials for its industries and markets for products. About a decade later, China began holding a rival event, the Forum on China-Africa Cooperation.

It is at heart an ideological rivalry unfolding on the continent, according to Martin Rupiya, head of innovation and training at the African Centre for the Constructive Resolution of Disputes in Durban, South Africa.

“China cast Japan as its former colonial interloper – and not necessarily master – until about 1949. Thereafter, China’s Mao [Zedong] developed close relations, mostly liberation linkages with several African nationalist movements,” Rupiya said.

Beijing had continued to invoke those traditional and historical ties, which Japan did not have, he said.

“Furthermore, Japan does not command the type of resources – call it largesse – that China has and occasionally makes available to Africa,” Rupiya said.

Although both Asian giants have made inroads in Africa, the scale is vastly different.

While Japan turned inward as it sought to rebuild its struggling economy amid a slowdown, China was ramping up trade with African countries at a time of rapid growth on the continent.

That saw trade between China and Africa growing twentyfold in the last two decades. The value of their trade reached US$204.2 billion last year, up 20 per cent from 2017, according to Chinese customs data. Exports from Africa to China stood at US$99 billion last year, the highest level since the 1990s. Meanwhile, through its Belt and Road Initiative that aims to revive the Silk Road to connect Asia with Europe and Africa, China is funding and building Kenya’s Standard Gauge Railway and the Addis Ababa-Djibouti Railway. Beijing is also building major infrastructure projects in Zambia, Angola and Nigeria.

Japan’s trade with Africa is just a small fraction of Africa’s trade with China. In 2017, Japan’s exports to the continent totalled US$7.8 billion, while imports were US$8.7 billion, according to trade data compiled by the Massachusetts Institute of Technology.

How speaking with one voice could help Africa get a better deal from China

But Japan now appears eager to get back in the game and expand its presence in Africa, and analysts say this year’s TICAD will be critical – both in terms of the amount of money Tokyo commits to African development and how it positions itself as an alternative to the Chinese model.

Ryo Hinata-Yamaguchi, a visiting professor at Pusan National University in South Korea, said the continent was “economically vital to Japan, both in trade and investments”.

“Moreover, Japan has established some strong links with African states through foreign aid,” Hinata-Yamaguchi said.

“Japan’s move is driven by both economic and political interests. Economically, Japan needs to secure and maintain its presence in, and linkages with, the African states while opening new markets and opportunities,” he said.

To counter China’s belt and road strategy, Japan has launched the Asia-Africa Growth Corridor project, an economic cooperation deal, with India and African countries.

Tokyo meanwhile pledged about US$30 billion in public-private development assistance to Africa over three years at the 2016 TICAD, in Nairobi. But China offered to double that amount last year, during its Forum on China-Africa Cooperation in Beijing.

Still, Japan continues to push forward infrastructure projects on the continent. It is building the Mombasa Port on the Kenyan coast, while Ngong Road, a major artery in Nairobi, is being converted into a dual carriageway with a grant from Tokyo.

Japan is also funding the construction of the Kampala Metropolitan transmission line, which draws power from Karuma dam in Uganda. In Tanzania, it provided funding for the Tanzania-Zambia Railway Authority (Tazara) flyover. And through the Japan International Cooperation Agency, Tokyo also helps African countries improve their rice yields using Japanese technology.

There are nearly 1,000 Japanese companies – including carmakers like Nissan and Toyota – operating in Africa, but that is just one-tenth the number of Chinese businesses on the continent.

Are Chinese loans putting Africa on the debt-trap express?

Olander said Japan’s construction companies were among the best in the world, albeit not necessarily the cheapest, and that Tokyo was pushing its message about “high-quality” construction.

XN Iraki, an associate professor at the University of Nairobi School of Business, said Japan wanted to change its approach to Africa on trade, which had long been dominated by cars and electronics.

“[It has] no big deals like China’s Standard Gauge Railway. But after China’s entry with a bang – including teaching Mandarin through Confucius Institutes – Japan has realised its market was under threat and hence the importance of the TICAD, which should remind us that Japan is also there.”

Source: SCMP

17/08/2019

Are Chinese infrastructure loans putting Africa on the debt-trap express?

  • Beijing has lent billions of dollars to countries on the continent to build railways, highways and airports but critics say the borrowings are unsustainable
  • Chinese officials say the projects will pay off in the long run and host nations are well aware of their limits and needs
Illustration: Lau Kakuen
Illustration: Lau Kakuen
When Clement Mouamba went to Beijing last year, he had two main tasks.
The prime minister of the Republic of Congo needed to find out exactly how much his country owed to China, a number the struggling, oil-rich central African nation had until then not been able to provide the International Monetary Fund (IMF) to qualify for a bailout. He also needed to convince Beijing to restructure its debt to ensure sustainability.
The IMF had put talks for further loans on hold until Mouamba’s administration could say exactly how much it had to repay to the country’s external creditors, including China – the republic’s single largest bilateral lender – and oil multinationals such as Glencore and Trafigura.
The country, which heavily depends on oil revenue, turned to China and private oil majors for funding to run the government when in 2014 oil prices fell from a high of US$100 per barrel to as low as US$30.

Critics say countries on the continent are being burdened with unrealistic levels of debt for inviable infrastructure backed and built by China without adequate transparency and scrutiny.

The biggest concern is that several African countries will be left with huge debts and grandiose infrastructure that they cannot maintain and run profitably. I liken it to borrowing money to buy a Tesla when you don’t have adequate access to electricity: Obert Hodzi of the University of Helsinki in Finland

But Chinese observers say the West must take some of the blame for the countries’ debt problems and that the support China offers will benefit the host countries in the long run.

In the early 1990s, when China began to embrace Africa again after years of isolation from the outside world, the aspiring manufacturer was at a serious disadvantage in the race for raw materials and markets for its industrial goods.

The former colonial powers of the West had already sewn up deals for many of the continent’s most lucrative and readily exploitable reserves, from fossil fuels to minerals.

China needed new strategies to convince African governments to allow it access raw materials for its industries and markets for its products to a largely unfamiliar partner.

China also wanted to challenge the dominance of the US in global trade and politics so it courted allies in Africa to help it push for political legitimacy in international institutions.

A Kenya Railways freight train leaves the port station on the Mombasa-Nairobi railway in Mombasa, Kenya, a huge project backed by China. Photo: Bloomberg
A Kenya Railways freight train leaves the port station on the Mombasa-Nairobi railway in Mombasa, Kenya, a huge project backed by China. Photo: Bloomberg

At the time, many African leaders were under fire to liberalise their economies. China’s approach was to promise not to meddle in individual country’s internal affairs and assure African countries that they could get billions in exchange for future delivery of minerals through resource-backed deals.

Beijing sold its policies that it had no conditions attached to its development finance. In the drive to drum up business, China promised affordable loans for African countries to build roads, bridges, highways, airports and power dams.

Is Kenya’s Chinese-built railway a massive white elephant?

But Beijing also pursued tied finance, ensuring that countries borrowing from China used Chinese contractors to implement the projects rather than open them up to outside bids.

In addition, many of the deals were built on weak financial, technical and environmental conditions, with Chinese state firms conducting the technical feasibility, environmental impact assessment and financial viability studies for free for projects that they also build.

For example, in Kenya, the China Road and Bridge Corporation conducted a free feasibility study that was used in the construction of the railway.

The same company was handed the contract to implement the project and is operating both the passenger and cargo train service for a fee.

Chinese companies were responsible for the construction of a rail line between Addis Ababa and Djibouti. Photo: AFP
Chinese companies were responsible for the construction of a rail line between Addis Ababa and Djibouti. Photo: AFP

In contrast, the World Bank and its partner institution, the IMF, demand that such studies be done by an independent consultant and not by the company that implements the project.

According to data compiled by the China-Africa Research Initiative, at the Johns Hopkins University School of Advanced International Studies, Beijing has advanced loans worth US$143 billion to African countries since 2000, levels that some critics say are unsustainable for the borrowers.

China meets resistance over Kenya coal plant, in test of its African ambitions

For many of China’s new African partners, these arrangements – from easy lending terms, to non-competitive bidding and opaque contract details – have led to new problems – problems that corrupt or poorly managed governments now share substantial responsibility.

Some critics, both in the West and in host countries, suggest there is a “debt-trap strategy” at the heart of Beijing’s push for international business and influence, but there is no evidence that China deliberately pushes other countries into debt to seize their assets or gain sway.

However, the drive for overseas contracts and big business has led some countries into difficulties with new debts, and there are question marks over the viability of many of the projects the money is funding.

Obert Hodzi, an international relations expert at the University of Helsinki in Finland, said the Addis Ababa-Djibouti railway and the Mombasa-Nairobi railway were good examples of huge projects that were financed by easy borrowing terms from China but were not sustainable and that had in turn forced the African partners to seek further Chinese help.

“The biggest concern is that several African countries will be left with huge debts and grandiose infrastructure that they cannot maintain and run profitably,” Hodzi said. “I liken it to borrowing money to buy a Tesla when you don’t have adequate access to electricity.”

Ken Opalo, a Kenyan scholar at Georgetown University in Washington, said the key issue was the inability of African countries to design projects that were actually needed for the local economies.

A road is not just a means of transport but an economic belt or corridor that will catalyse the development of the whole region: Huang Xueqing, spokeswoman for the Chinese embassy in Nairobi

“Most African countries have been willing to accept projects designed, financed, and implemented by Chinese firms,” Opalo said.
“It would be better to decouple the feasibility studies and design phases of projects from the financing. That way African governments can ensure that they are truly getting value for money.”
But Chinese officials said Beijing had invested in infrastructure largely at the request of the host countries, adding that it could take time to yield returns on the projects.

Huang Xueqing, spokeswoman for the Chinese embassy in Nairobi, said the projects were valid assets with value that would grow in time.

“So, in the long run, it is beneficial to the host countries. Just like when young people buy a house with a mortgage, they may take some debts, but they have a place to live in and have their own assets,” Huang said.

“Underdeveloped infrastructure is the bottleneck that has been holding back Africa’s development. Up to today, many African countries, although in the same continent, are not connected with direct flights, railways or even roads. You have to fly to Paris or Zurich in order to get to some African countries.

“A road is not just a means of transport but an economic belt or corridor that will catalyse the development of the whole region.”

Huang said Beijing had advised the countries to act within their means and not to overstretch themselves when they considered projects that might not be in line with local conditions.

“When making investment decisions, the Chinese side, along with the recipient countries, carry out rigorous feasibility studies and evaluations. We do things according to our ability,” she said.

China’s leadership has also said it is paying close attention to the fiscal and financial difficulties faced by some African countries.

“As a good friend and good brother … the Chinese side is willing to lend a helping hand when needed by the African people to help them overcome temporary difficulties,” State Councillor and Foreign Minister Wang Yi said in January while on a trip to Ethiopia, adding that the debt situation in Africa is also a legacy issue.

China must allay any debt-trap fears in its dealings with Africa

“The African debt issue does not come up today, still less is it caused by the Chinese side. The African people know who are the initiators of African debt.”

The West should take a lot of the blame for worsening debt problems in some African countries, according to Li Anshan, from Peking University’s Centre for African Studies.

He cited the cases of Liberia and the Democratic Republic of Congo, two countries that have had close relations with the West for many years but remain ravaged by war and poverty despite immense natural resources.

“China-Africa relations have been going on for quite some time. Is there any African country which has got poorer because of its deal with China?” Li said.

Gyude Moore, a former Liberian minister of public works whose department oversaw construction and maintenance of various public infrastructure funded and built by China, said it would be difficult to imagine that China would knowingly ensnare its partners in debt.

“China attempts to differentiate itself from Western donors by limiting non loan-related conditionality. China also practices non-interference, so how a country manages its resources, treats its people or deploy its finances were considered ‘internal’,” he said.

“So, Chinese loans are negotiated faster and place less emphasis on public financial management.”

Moore, now a visiting fellow at the Centre for Global Development, said there were trade-offs in such situations.

China focuses on sustainable projects to dismiss fears of African debt trap

“If the loans are going to be fast – the due diligence will not be as rigorous. Chinese project selection mixes political with economic considerations. So, while a project may not make as much economic sense, it may pay political dividends,” he said.

He said non-transparent processes would invite abuse, be they Chinese, Western or African.

Other observers say the question of opacity is more directly related to China’s own economic system.

Howard French, author of China’s Second Continent: How a Million Migrants are Building a New Empire in Africa, said China has very limited transparency and public accountability in its own domestic processes.

The Mombasa railway station is seen in Mombasa, Kenya, in 2018. Photo: Xinhua
The Mombasa railway station is seen in Mombasa, Kenya, in 2018. Photo: Xinhua

“So it would be unusual to expect that China would introduce greater transparency and accountability in its dealings with African countries than it is used to at home – that is, unless African governments insist on it,” French said.

“And this is where African governance comes in. African states should insist on contract transparency but often don’t do so because that offers leaders plentiful opportunities for graft.”

David Shinn, professor of international relations at George Washington University in Washington, agreed that China’s lack of loan transparency was a huge problem and increased the risk of corruption on both the African and Chinese sides. But he also said that in some cases, African governments might have negotiated poorly.

“This is, however, the responsibility of the African government. I don’t think China is purposely trying to encourage African debts in order to gain leverage,” Shinn said.

“In fact, China is becoming more careful about its lending because it is concerned it has made too much credit available to some African countries.”

China ‘ready to talk’ about trade deal with East Africa bloc

Huang Hongxiang, director of China House, a Nairobi-based consultancy that helps Chinese in Africa integrate better, agreed, saying the Chinese government needs to communicate more about projects in Africa but African countries also have a bigger part to play in ensuring better deals.

“On commercial viability, accountability, transparency and governance, I believe the responsibility does not lie with China, the US or the West but in the hands of African countries,” he said.

Wherever the fault lies, one thing is clear when money is wasted on ill-designed projects that have little to no economic return, according to Opalo.

“The lack of planning and transparency creates default risks … [and] African taxpayers will be left holding the bag.”

This article is the third in a series examining the local impact of Chinese investment and infrastructure projects in Africa. Read part one  here and part two

 here

.

The next report will examine whether African countries can speak with one voice in relations with China.
Source: SCMP
16/08/2019

China releases overall plan on new western sea-land transportation channel

CHINA-NEW WESTERN SEA-LAND TRANSPORTATION CHANNEL-PLAN (CN)

Photo taken on April 20, 2017 shows Chengdu railway container center station in the Qingbaijiang railway port of China (Sichuan) pilot free trade zone in Chengdu, southwest China’s Sichuan Province. China has released an overall plan about the country’s new western sea-land transportation channel to deepen the sea-land two-way opening-up and the development of western China, according to the National Development and Reform Commission. The plan covers the period from 2019 to 2025 with an outlook extended to 2035. (Xinhua/Xue Yubin)

BEIJING, Aug. 15 (Xinhua) — China has released an overall plan about the country’s new western sea-land transportation channel to deepen the sea-land two-way opening-up and the development of western China, according to the National Development and Reform Commission.

The plan covers the period from 2019 to 2025 with an outlook extended to 2035.

The new western sea-land transportation channel is located in the hinterlands of the western regions, connecting the Silk Road Economic Belt from the north, the 21st Century Maritime Silk Road from the south and the Yangtze River economic belt.

According to the plan, the new western sea-land transportation channel is strategically positioned to support the country’s western regions in participating in international economic cooperation and promote the deep integration of transportation, logistics and the economy.

Source: Xinhua

16/08/2019

China-Arab States tourism fair to be held in NW China

YINCHUAN, Aug. 15 (Xinhua) — The China-Arab States Tour Operators Conference 2019 will be held from Sept. 4 to 7 in Yinchuan, capital of northwest China’s Ningxia Hui Autonomous Region, local authorities said Thursday.

According to the region’s department of culture and tourism, the four-day event will include a series of activities such as tourism resources promotion, tourism cooperation and exchange between China and Arab countries, and investment project negotiation.

Tourism officials from Indonesia, Morocco and Chad, as well as some 120 traders from China and 15 countries along the Belt and Road including Singapore, the Republic of Korea and Egypt, will participate.

Tourism resources and products such as the starry sky, the Great Wall, intangible cultural heritage and wine in Ningxia will be presented in the form of a stage drama at the fair.

Foreign participants will also introduce their tourism resources to further integrate Ningxia into regional tourism along the Belt and Road.

Traditional handicrafts such as papercutting, embroidery, wood carving and clay sculptures will be displayed to propel the development of the cultural tourism industry in the region, according to Zhao Mingxia, deputy director of the culture and tourism department.

Source: Xinhua

15/08/2019

Cameroon official hails higher education cooperation with China

YAOUNDE, Aug. 14 (Xinhua) — Wilfred Gabsa Nyongbet, Secretary General of Cameroon’s Ministry of Higher Education, on Wednesday hailed as “excellent” the cooperation with China in higher education.

Nyongbet made the remarks during a ceremony to bid farewell to 128 Cameroonian students who will study in China with scholarships. “This is a true demonstration of the excellent bilateral friendship between our two countries,” he said.

“They are going to learn the type of technology that we need for the emergence of Cameroon… We are willing to continue the collaboration in the higher education sector,” Nyongbet added.

Among the 128 students, 45 benefit from the Chinese government scholarship, 83 from the Confucius Institute scholarship.

Speaking at the ceremony, Chinese ambassador Wang Yingwu said the number of Chinese scholarships awarded to Cameroon students in 2019 hit a record high since 2006. “China is ready to work with Cameroon to enhance cooperation in education to a higher level,” he said.

“China is advanced in technological sectors, and there is a transfer of know-how in its cooperation with Cameroon. The scholarship is an opportunity for me to study in China, and apply what I have learned back home,” a scholarship winner Francis Yonkeu Nya told Xinhua.

More than 3,000 Cameroonian students are now studying in China, among them about 300 are beneficiaries of Chinese government scholarship, according to the Chinese embassy to Cameroon.

Source: Xinhua

14/08/2019

China-proposed BRI designed with economic development, capacity building in mind, benefiting others, say experts

MALAYSIA-KUALA LUMPUR-BRI-NEW INCLUSIVE ASIA DIALOGUE

Participants pose for photos at the New Inclusive Asia Dialogue in Kuala Lumpur, Malaysia, Aug. 14, 2019. The China-proposed Belt and Road Initiative (BRI) was formulated with economic development agenda through increased connectivity, infrastructure and capacity building, according to academics and experts at the New Inclusive Asia Dialogue here on Wednesday. (Photo by Chong Voon Chung/Xinhua)

KUALA LUMPUR, Aug. 14 (Xinhua) — The China-proposed Belt and Road Initiative (BRI) was formulated with economic development agenda through increased connectivity, infrastructure and capacity building, according to academics and experts at a conference here on Wednesday.

Speaking at the New Inclusive Asia Dialogue, multiple experts said BRI, as a flexible economic oriented initiative, stood in contrast with attempts by certain country to piece together its own trade network, which was described as being focused on political agendas.

Dr S Mahmud Ali, an associate fellow with the University of Malaya’s Institute of China Studies, said countries like Malaysia, which aspired to reach developed nation status, had recognized the real gains to be had from participation in BRI.

Mahmud said once several on-going BRI related projects were completed in the country, the country’s economic capacity would be greatly boosted.

Malaysia does play a significant role and substantial amounts of Chinese investments funding projects will boost Malaysia’s productivity, total production capacity, its ability to export and produce good that will rise quite dramatically once these projects are completed, he said.

Proposed by China in 2013, the Belt and Road Initiative refers to the Silk Road Economic Belt and the 21st century Maritime Silk Road, which aims at building trade and infrastructure networks connecting Asia with Europe and Africa along the ancient trade routes of the Silk Road.

Chairman of the Committee of International Information of the Foreign Affairs Ministry of Kazakhstan Timur Shaimergenov said that the flexible, economically focused BRI had gained strong support due to the inclusive approach taken by China.

“The Belt and Road Initiative is a flexible economic oriented project. It does not come with political pressure but instead it is about giving participating countries the opportunity to take advantage of economic opportunities.”

Criticism against BRI has taken on a political dimension and they are completely ignoring that while BRI started as a Chinese initiative, it has really become a Eurasian initiative,” he said.

Olga Kuznetsova, a professor with the Moscow Lomonosov State University said infrastructure development had the potential to benefit countries along BRI route, calling on countries to formulate clear plans to take advantage of the economic spillover.

“Russia is interested in the development of Eurasian transport corridors and invests in the implementation of projects to create them,” she said.

Chinese Ambassador to Malaysia Bai Tian said China had made it clear that it would continue to be a supporter of fair and equitable international trade and globalization, especially in the backdrop of unilateral protectionism.

“We look forward to joining hands with Asian countries to promote trade and investment facilitation, to accelerate the process of regional free trade zone, and to deepen regional and sub-regional cooperation,” he said.

Hosted by the Center for New Inclusive Asia, a Malaysian based think tank, the two-day dialogue aims to foster better understanding of connectivity as a means to promote inclusive growth in Asia, bringing together prominent scholars, senior government officials and corporate leaders from some 10 countries and regions.

Source: Xinhua

14/08/2019

How China could use bio-waste to mass-produce cheap super-fuel for missiles

  • Scientists’ large-scale conversion of agricultural waste into fuel offers savings up to 60 per cent, they say
  • Discovery could slash military costs and bring civilian applications of hypersonic flight technology closer
Super-fuel for military aircraft costs nearly 10 times as much as ordinary jet fuel for commercial planes. Photo: Shutterstock
Super-fuel for military aircraft costs nearly 10 times as much as ordinary jet fuel for commercial planes. Photo: Shutterstock
Chinese scientists say they have developed a technology to convert bio-waste into fuel for missiles and hypersonic planes, reducing fuel costs by as much as 60 per cent.
The existing JP-10 super-fuel for military aircraft has numerous advantages including high energy density, good thermal stability and low freezing point, but it costs more than US$7,000 per tonne – nearly 10 times as much as ordinary jet fuel for commercial aircraft.
It is used mainly in cruise missiles and ramjet or scramjet engines on new-generation aircraft travelling at hypersonic speed, or five times faster than sound.
Scientists from the Dalian Institute of Chemical Physics, at the Chinese Academy of Sciences in the northeastern province of Liaoning, predicted using the new technology in the near future could reduce the cost to as low as US$2,547 per tonne.
The secret, according to their paper, published in the latest issue of German chemistry journal Angewandte Chemie, lies in cheap bio-waste.
Using agricultural and forestry residues including bran, chaff and mill dust, Professor Zhang Tao, Li Ning and colleagues discovered new chemical processes that can turn the waste to JP-10 fuel on a large scale with unprecedented efficiency.

At present, the super-fuel comes from coal tar or naphtha, and the synthesis is extremely costly and unfriendly to the environment.

The bio-JP-10 fuel can be produced by two different methods, one involving six steps of chemical reactions and the other only four, according to the paper.

China’s plan to make jet fuel from restaurant leftovers

Combining these methods with the latest technology in biomass conversion, the researchers said, the super-fuel can be mass-produced at a price equivalent to that of some of the bio-jet fuels already in commercial use, thanks to government subsidies provided for their environmental benefits.

“We believe that the future commercialisation of bio-JP-10 fuel is very promising, especially taking policy support and exemption from CO2 emission tax into consideration,” the authors wrote in the paper.

Liu Huoxing, professor at the school of energy and power engineering at Beijing University of Aeronautics and Astronautics, said civilian applications of hypersonic flight technology faced many challenges that remained to be solved, with the problem of high fuel prices being one of the headaches.

“No airline will buy a plane if the fuel costs too much, however fast it can fly,” he said.

Liu, who conducts research on engine technology for hypersonic vehicles but was not involved in the Dalian study, said the reduction of production costs for jet fuel was usually incremental and it was quite rare to see a significant drop.
“This can be an important development,” he said of the Dalian findings.
China is developing various models of hypersonic speed aircraft for military and civilian use. Some are aimed at flying distances such as Shanghai to Los Angeles in a couple of hours.

Source: SCMP

13/08/2019

Xi Focus: Caring for the elderly

BEIJING, Aug. 12 (Xinhua) — “A spring breeze blew into Sijiqing.”

This is how seniors at the Beijing-based nursing home recalled a visit in 2013 by President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission.

During the visit to the Sijiqing Home for the Elderly, Xi chatted with senior citizens, asked them about their health, families and lives.

Xi stressed the need to improve the management and service quality of elderly care institutions to ensure that every senior citizen can live a carefree, healthy, comfortable and happy life.

More than five years on, Liu Jinwen, a member of the elderly fashion models team at Sijiqing, said the visit had a great impact on them.

“Senior citizens should maintain a positive outlook on life and spend their old age gracefully,” Liu said. “To that end, we set up the models team to make our lives more ‘beautiful!'”

Liu is just one of the growing number of happy seniors in China.

Under Xi’s leadership, the country has over the past few years formulated a series of measures to boost elderly care and witnessed a marked improvement of the lives of the senior citizens.

BETTER NURSING HOMES

The services at nursing homes are related to the happiness of more than 200 million old people in China, especially the 40 million of them who have lost the ability in full or in part to take care of themselves.

In 2017, a four-year campaign was launched nationwide to boost nursing homes’ service quality. More rules and regulations on the management of elderly care institutions have also been drawn up.

At Sijiqing, a lot of cultural activities were organized. A “Silver Age” college was set up. And the nursing home teamed up with a local hospital to provide fast access for senior citizens to quality medical treatment.

“It’s really convenient now,” said Zhang Jin, a Sijiqing nursing home resident.

IMPROVED COMMUNITY-LEVEL SERVICES

Another field of senior care that has benefited a lot from policy support is community-level services.

Community-based elderly care is important to China’s old-age care system. About 90 percent of the Chinese elderly prefer to spend their later years at home, 6 percent at community-level elderly care centers and only 4 percent at nursing homes, according to statistics.

But community-level elderly care centers also play a key role in providing food and medical services to senior citizens who opt to stay at home.

Liu Jianguo, 86, and his wife are among the people who benefit.

The couple, living in the southeastern city of Fuzhou, go to the community elderly daycare center almost every day.

“My wife and I usually spend the whole day here,” Liu said, praising the center for its environment, facilities and staff.

Across China, all urban communities and more than half of rural communities had established community-based old-age service facilities as of the end of 2018.

In China, a comprehensive elderly care service system is taking shape, meeting the needs of the elderly who prefer to spend later years at home, community-level centers or nursing homes.

Source: Xinhua

12/08/2019

Cathay Pacific threatens staff with sack after Beijing draws line on Hong Kong protests

  • Chief executive Rupert Hogg says staff who ‘support or participate in illegal protests’ would face disciplinary action that ‘may include termination of employment’
  • Airline’s shares down 4.37 per cent on Monday morning to lowest level in 10 years, despite it complying with orders on Friday from China’s aviation authority
Cathay Pacific moved over the weekend to comply with new orders from China’s aviation authority. Photo: Bloomberg
Cathay Pacific moved over the weekend to comply with new orders from China’s aviation authority. Photo: Bloomberg
Cathay Pacific has warned that it would sack staff taking part in illegal protests in Hong Kong, saying it would take a “zero tolerance” approach, as its shares slumped to their lowest level in 10 years in morning trading on Monday.
In a note to staff on Monday, chief executive Rupert Hogg said staff who “support or participate in illegal protests” would face disciplinary action that “could be serious and may include termination of employment”.

His warning indicated an escalation by the company, under pressure to crack down on employees after China’s civil aviation regulator said on Friday that airline staff supporting the Hong Kong protests would be barred from flights going to, from or through mainland China.

“We are all obliged to abide by law at all times,” Hogg said. “Cathay Pacific Group has a zero-tolerance approach to illegal activities. Specifically, in the current context, there will be disciplinary consequences for employees who support or participate in illegal protests. These consequences could be serious and may include termination of employment.”

By noon in Hong Kong, the stock had fallen 4.37 per cent to HK$9.85 (US$1.26), its lowest level since June 2009. Losses dragged the carrier’s parent company Swire Pacific down 5.4 per cent to HK$77.50, making it the worst performer on Hong Kong’s stock market during morning trading.

This was the lowest price since October 2018 for Swire, which owns 45 per cent of the airline. Air China, which owns 22.7 per cent of Cathay, also fell 1.53 per cent in Hong

On Friday, the Civil Aviation Administration of China (CAAC) told Hong Kong’s flagship carrier that any staff members who had taken part in what it called “illegal protests”, “violent actions” and “overly radical activities” would not be allowed to fly to or from the mainland, in a first warning shot at a Hong Kong-based corporate giant.

The CAAC also said that the airline would have to submit identification details of all crew operating all services using mainland China airspace, and that flights with unapproved crew lists would be barred. It gave the airline until Thursday to submit a detailed plan to improve its procedures.

Anti-extradition bill protesters join a sit-in protest at Hong Kong International Airport on Sunday. Photo: Reuters
Anti-extradition bill protesters join a sit-in protest at Hong Kong International Airport on Sunday. Photo: Reuters

Cathay Pacific had earlier said it would not stop staff members from taking part in demonstrations.

On Wednesday, Cathay Pacific chairman John Slosar said the company would not rein in staff for openly supporting the protests. “We certainly wouldn’t dream of telling them what they have to think about something,” Slosar said.

But in his second statement in two days in relations to the CAAC’s sanctions, Hogg said the “actions and words” of staff outside of work hours could have a “significant effect on the company”, adding that the actions of a few of Cathay’s 34,000 employees would be seen as a company position.

He also asked staff to not “support or participate” in the illegal protest at the airport, saying the carrier was concerned that the protests could become disorderly and violent.

No flights by Cathay Pacific, nor by its subsidiaries Cathay Dragon or HK Express, were delayed or cancelled on Saturday or Sunday, the company said.

The CAAC’s move was widely seen as a clear warning to Hong Kong’s business community to toe Beijing’s line to pressure ongoing anti-government protests in the city that have been taking place for over two months.

Despite the airline acting over the weekend to comply with the rules, Chinese state media continued to put pressure on the company.

Global Times, a tabloid associated with Communist Party mouthpiece People’s Daily, said on Sunday the airline had still not allayed all concerns despite its adjustments to comply with the ruling.

Carrie Lam’s remarks about Beijing’s sovereignty ‘add fuel to the fire’, analysts warn

“These are only small steps [showing] that Cathay Pacific is heading towards the right direction, and their sincerity will need to be tested over time,” the tabloid said in an opinion article on Sunday.

It said 2,000 company staff joined citywide strikes last Monday, and cited the case of a pilot who was arrested and charged with rioting during a demonstration on July 28.

“Cathay Pacific has touched on this behaviour lightly, which has a huge impact on the trust the industry and the public have towards the company,” the article said.

State broadcaster CCTV published a short video on Weibo on Monday morning of its anchor issuing further warnings to the airline, saying there were reports of staff continuing to join “illegal gatherings” and asking tourists not to go to Hong Kong.

“If this continues, it’s not a matter of whether or not people would still want to come to Hong Kong, but whether they would still want to be on your airline,” Kang Hui said in a one-minute video.

“Let me send a friendly reminder: one would not be in trouble had one not asked for it,” Kang said, in Mandarin and then in English, translating the popular Chinese internet meme phrase “No zuo no die” and claiming some Cathay Pacific staff pretended not to understand Mandarin. Cantonese is the dominant language in Hong Kong.

Elsewhere, the company announced that two of its airport employees

had been sacked

for leaking passenger information about a Hong Kong police soccer team who had been on a flight to mainland China. It has also suspended the pilot who was among 44 people charged with rioting on July 28.

Although the company does not clearly specify its country-by-country performance, China and Hong Kong produced half of all its 2018 revenue – HK$57 billion of a total of HK$111 billion. A fifth of all the carrier’s flight are to and from the mainland.
Source: SCMP
12/08/2019

Indian man pushes birthday present BMW into river

BMW logoImage copyright GETTY IMAGES
Image caption The luxury BMW was pushed into a river by the disappointed man

An Indian man apparently angered at getting a BMW for his birthday – instead of a Jaguar – pushed the new vehicle into a river.

Video posted on social media shows it floating away on the river in the northern Indian state of Haryana.

It later got stuck on a bank of tall grass and the man, said to be the son of a local landlord, tried to rescue it.

Police are investigating the incident, local media report.

BMW cars cost around 3.5m rupees (£41,400; $49,000) locally, with Jaguars costing about 4-5m rupees.

Source: The BBC

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