25/04/2013

* The Chinese Dream won’t go back to sleep

The Times: “One died in Boston, the other lost her home in Sichuan. Both symbolised the hopes of millions

Last week in different corners of the planet, the lives of two very important Chinese women were ripped apart: one on the streets of Boston, the other under the rubble of the Sichuan earthquake. Both women were living the Chinese Dream. And both could spell big trouble for President Xi Jinping.

Lu Lingzi was a 23-year-old mathematics graduate student at Boston University, who died in the marathon bombing. The hard-working daughter of hard-working, white-collar parents from Shenyang, she was a paragon of the generation that has emerged as China’s economy grows and the new middle classes replicate themselves for the first time in history. Not a single opportunity in Lingzi’s short life was squandered. She battled for internships at banks and accounting firms. The family saved every yuan so that their daughter could study in the United States.

The other woman is Wei Ruqun, a victim of last Saturday’s earthquake. She is alive but has almost nothing to live for. Now 47, Ruqun has toiled in a variety of factories since her teens as one of China’s 260 million migrant workers whose sweat and aspiration have fuelled the country’s industrial engine.

Her career, a diverse list of drudgery that includes assembling cheap goods for export to the West, has won her some tiny shavings from the Chinese economic boom, hard-won dividends of the version of capitalism that Beijing unleashed in the 1980s, which allowed hundreds of millions of peasants to imagine themselves as consumers for the first time. Over the decades Ruqun saved to buy a small house in the village where she was born. On Saturday, a few months after the dream house was finished, it collapsed in the earthquake with family members inside.

The two women’s fates — reported on TV and discussed on Weibo, China’s version of Facebook and Twitter — have humanised for many Chinese people social trends almost too big and fast-moving to think about in the abstract. By studying abroad, Lingzi was fulfilling an increasingly common middle-class dream. Her story has fascinated tens of millions of middle-class Chinese who know someone like her or want to do what she did. Ruqun is one of hundreds of micro-tragedies of the Sichuan quake. Barely an adult in China cannot imagine the agony of losing a house that represents your life savings.

The two women are important for the ease with which ordinary Chinese can empathise with them. But they are politically important too. Both are the creations and creators of what will soon be the largest economy on Earth. The loss of Lingzi and the shattering of Ruqun are personally terrible, but their significance lies in the fact that there are thousands, perhaps millions, of Chinese women like them: all patiently shaping individual aspiration into something real. Their two lives, though different in so many ways, are perfect products of China 2013.”

via The Chinese Dream won’t go back to sleep | The Times.

25/04/2013

* Southeast Asia to reach out to China on sea disputes

Reuters: “Southeast Asian nations stepped up efforts on Thursday to engage China in talks to resolve maritime tensions, agreeing to meet to try to reach common ground on disputed areas of the South China Sea ahead of planned discussions in Beijing later this year.

A general view of the retreat during the ASEAN Summit at the Prime Minister's Office in Bandar Seri Begawan April 25, 2013. Leaders of the Association of Southeast Asian Nations (ASEAN) gathered in Brunei's capital for two days beginning Wednesday for their 22nd summit. REUTERS-Ahim Rani

Efforts by ASEAN to craft a code of conduct to manage South China Sea tensions all but collapsed last year at a summit chaired by Cambodia, a close economic ally of China, when the group failed to issue a closing statement for the first time.

Cambodia was accused of trying to keep the issue off the agenda despite a surge in tension over disputed areas and growing concern about China’s assertive stance in enforcing its claims over a vast, potentially energy-rich sea area.

Thursday’s initiative came as the 10-member Association of Southeast Asian Nations (ASEAN) tried to patch up differences that shook the group last year, but struggled to make progress on long-held plans to agree on a dispute-management mechanism.

Thailand, which has the role of ASEAN coordinator with China, called for the talks ahead of an ASEAN-China meeting expected in August to commemorate 10 years since they formed a “strategic partnership”.”

via Southeast Asia to reach out to China on sea disputes | Reuters.

25/04/2013

* China Unicom 1Q Net Jumps 89% on 3G, Fixed-Line Broadband Growth

WSJ: “China Unicom (Hong Kong) Ltd. 0762.HK -0.18% said Thursday net profit surged 89% in the first quarter from a year earlier as its third-generation mobile communications network and fixed-line broadband businesses continued their rapid growth.

China Unicom

China Unicom (Photo credit: Wikipedia)

Chinese telecommunications carriers are scrambling to ramp up their networks to accommodate the rapid increase in data traffic in the world’s largest mobile market, as more people replace their basic cellphones with smartphones. China has already overtaken the U.S. as the world’s biggest smartphone market.

Fierce competition between China Unicom and its rivals China Telecom Corp. CHA +1.75% and China Mobile Ltd. 0941.HK +1.21% has led to increasing costs, as carriers spend more on building networks and subsidizing handsets to attract more valuable subscribers who pay for speedier wireless services. In the latest quarter, China Unicom said revenue growth outpaced that of costs.

China Unicom, the country’s second-largest mobile operator by subscribers after China Mobile, said net profit was 1.90 billion yuan ($308 million) in the period ended March 31, up from 1.01 billion yuan a year earlier. Revenue rose 15% to 70.6 billion yuan from 61.19 billion yuan a year earlier.

China Unicom, the first of China’s carriers to offer Apple Inc.’s AAPL -0.16% iPhone, has seen profitability rise on its efforts to offer high-end smartphones and attract users with more expensive cellphone plans. Still, the increasing popularity of low-cost smartphones has led to falling average revenue per user—a key metric of telecom carriers’ health. First-quarter average revenue per user for its 3G business fell to 78.2 yuan from 93.9 yuan in the same period last year.

Subsidies for 3G phones rose to 2.23 billion yuan in the quarter from 1.98 billion yuan in the same period last year.

Major local carriers are also preparing to launch faster fourth-generation networks. Capital expenditure for network infrastructure and subsidies for smartphones continue to put pressure on major local carriers, even though smartphone users are boosting their data communications revenue.”

via China Unicom 1Q Net Jumps 89% on 3G, Fixed-Line Broadband Growth – WSJ.com.

25/04/2013

* China moves cautiously ahead on nuclear energy

Bulletin of the Atomic Scientists: “From 2005 to 2011, China rapidly developed its nuclear power capacity. In 2010 alone, it began operations at two new reactors and broke ground on 10 more, accounting for more than 60 percent of new reactor construction worldwide and making the Chinese nuclear industry by far the fastest-growing in the world. By the end of 2010, China had 14 nuclear reactors in operation with a total capacity of about 11 gigawatts electric, or GWe. That was still a relatively small amount — in contrast, the United States had 104 commercial reactors with a total capacity of about 100 GWe in 2010 — but China was pursuing ambitious plans to rapidly expand.

China Nuclear Energy

Then came the tsunami and earthquake that led to Japan’s Fukushima Daiichi meltdown in March 2011, the world’s worst nuclear accident since the Chernobyl disaster in 1986. After Fukushima, China changed course dramatically, slowing the pace of nuclear development to focus on safety. The slower pace is reassuring, but to really be a leader on nuclear safety, China should speed up the adoption of new laws on nuclear energy and enhance the independence and authority of nuclear safety regulators.

Putting the Brakes On. According to a government plan issued in 2007, China planned to install a total nuclear capacity of 40 GWe by 2020, which would account for about 3 percent of electricity generation nationwide. Many officials and experts expected that the number would actually increase further, to more than 80 GWe.

In its initial, March 2011 reaction to Fukushima, though, China’s State Council, the nation’s governing body, decided to suspend approval of new nuclear power stations, conduct comprehensive safety inspections of existing plants, and review all nuclear projects including those under construction. In October 2012, after concluding the inspections and reviews, the State Council issued a new plan that represents a serious and cautious reevaluation of safety issues and the pace of development. Called the Medium- and Long-term Nuclear Power Development Plan (2011-2020), its proposals include:

A return to normal construction at a controlled and orderly pace.

Permission for a limited number of new nuclear power reactors to be built in coastal sites that have been comprehensively evaluated.

A ban on new inland nuclear power projects, because the government fears a shortage of cooling water should accidents occur at such plants.

A requirement that all new projects meet the safety standards of the world’s most advanced nuclear reactors, known as third generation or Gen III reactors. Compared to earlier technology, these new designs incorporate improved fuel technology, superior thermal efficiency, passive rather than active safety systems, and standardized designs aimed at reducing maintenance and capital costs.

Based on the new plan, China will only approve a few new reactor construction projects before 2016. China now expects to grow its total nuclear capacity to 58 GWe by 2020, rather than the more than 80 GWe previously expected.

The government resumed approval of new nuclear power projects in December 2012, just as the new plan was issued. Several inland nuclear power projects where significant preparation work had already begun will be suspended, with some of their equipment likely transferred to coastal sites. While the pace of Chinese nuclear development will slow in the near term, the country’s long-term goals haven’t changed significantly. China continues to emphasize nuclear power as a crucial part of its energy mix. A government white paper issued in October 2012 observed that “as nuclear power is a high-quality, clean, and efficient modern energy resource, its development is of great importance for optimizing the nation’s energy structure and ensuring national energy security.” The white paper put China’s nuclear energy target at 40 GWe by 2015.”

via China moves cautiously ahead on nuclear energy | Bulletin of the Atomic Scientists.

24/04/2013

* Australia’s central bank to invest in Chinese bonds

BBC: “Australia’s central bank is planning to invest around 5% of its foreign currency reserves in Chinese government bonds, its deputy governor has said.

China's President Xi Jinping shakes hands with Australia's Prime Minister Julia Gillard

It will be the first time the Reserve Bank of Australia (RBA) will invest in sovereign bonds of an Asian country other than Japan.

The RBA has foreign currency reserves of A$38.2bn ($39.2bn; £25.7bn).

Earlier this month, the Australian dollar became the third currency to trade directly with the Chinese yuan.

“This decision to invest in China is an important one,” Philip Lowe, deputy governor of the RBA said in a speech to the Australian Chamber of Commerce in Shanghai.

“It reflects the broader economic relationship between China and Australia and our increasing financial ties.

“It provides greater diversification of our investments and will help with our understanding of the Chinese financial markets,” he added.”

via BBC News – Australia’s central bank to invest in Chinese bonds.

24/04/2013

* China’s Xinjiang hit by deadly clashes

BBC: “Clashes in China’s restive Xinjiang region have left 21 people dead, including 15 police officers and officials, authorities say.

Map

The violence occurred on Tuesday afternoon in Bachu county, Kashgar prefecture.

The foreign ministry said it had been a planned attack by a “violent terrorist group”, but ethnic groups questioned this.

There have been sporadic clashes in Xinjiang in recent years.

The incidents come amid rumbling ethnic tensions between the Muslim Uighur and Han Chinese communities. In 2009 almost 200 people – mostly Han Chinese – were killed after deadly rioting erupted.

Nothing is stopping foreign journalists from booking flights to Xinjiang after hearing reports of violence there. However, simply travelling to the region doesn’t guarantee the ability to dig out the truth behind this story.

In 2009, dozens of foreign reporters were permitted to join an official tour of Urumqi, the capital of Xinjiang, after clashes between minority ethnic Uighur residents and majority Chinese Hans killed 197 people.

Their experiences were mixed. Some reporters were able to speak to a variety of people on the ground, while others faced harassment and intimidation.

The situation remains the same today. Reporters who travel to the area are closely followed by government minders. Locals often hesitate to answer questions, fearing reprisals from government authorities.

Uighur exile groups often provide accounts that differ from the official Chinese government reports. Reconciling the two can be tricky.

The situation isn’t any easier for Chinese journalists. China’s propaganda departments have warned domestic news outlets against conducting their own independent reporting on sensitive Xinjiang stories, ordering them to reprint official stories from China’s major state news agencies.

It is very difficult to verify reports from Xinjiang, reports the BBC’s Celia Hatton.

Foreign journalists are allowed to travel to the region but frequently face intimidation and harassment when attempting to verify news of ethnic rioting or organised violence against government authorities.”

via BBC News – China’s Xinjiang hit by deadly clashes.

See also: https://chindia-alert.org/prognosis/chinese-challenges/

24/04/2013

* Ladakh incursion: India and China face-off at the ‘Gate of Hell’

China’s only unresolved land border!

22/04/2013

* China’s Shale-Gas Potential and Peril

Businessweek: “In China there’s a giddy feeling that the next energy gold rush is about to begin. Beneath the mountains of Sichuan province, the deserts of Xinjiang, and elsewhere, China contains twice the shale- gas reserves as the U.S., says the U.S. Energy Information Administration. China’s national planners enthusiastically back boosting natural gas production, which accounts for just 4 percent of the country’s total energy mix now. The government wants to double that share by 2015. “There’s a lot of exuberance,” says Zhou Xizhou, who leads the research firm IHS Cera’s China Energy practice. “In Beijing, if you work in energy, you probably receive a shale-gas conference notice every week.”

The impact of a shale-gas boom in China will be enormous, with the potential benefits and likely environmental costs perhaps even greater than in the U.S. So far, though, the output in China has been a trickle because of the challenging geography and the monopolistic structure of China’s oil and gas sector. While about 200,000 of the horizontal wells used in fracking have been drilled in the U.S., China has about 60. China has 1,275 trillion cubic feet of shale-gas reserves, compared with 637 trillion cubic feet for the U.S.

The U.S. shale-gas revolution was launched largely on the flatlands of Texas, North Dakota, Pennsylvania, and other accessible areas. In China’s mountainous Sichuan basin, “the formations seem to be more faulted and folded, which makes it more difficult and less economic to drill long horizontal well bores,” says Briana Mordick, an Oil & Gas Science Fellow at the Natural Resources Defense Council and formerly a geologist at Anadarko Petroleum.

Sometimes the Chinese must cut new mountainside roads to move trucks and equipment to remote sites. With higher upfront costs, “it will be significantly more challenging in China to make the wells pay for themselves,” Mordick says. “The technical learning curve is very steep. What works in one place may not work in another.“

The inflexible structure of China’s state-controlled oil and gas industry hampers efforts to exploit reserves. “In the U.S., it was not the oil and gas majors that started the shale boom” but rather small wildcat operators “willing to accept a high-risk, high-reward proposition,” says Melanie Hart, an analyst on energy policy and China at the Center for American Progress in Washington. “In a market system, you can have many small and large players all specializing in different pieces of the process.””

via China’s Shale-Gas Potential and Peril – Businessweek.

21/04/2013

* Thirty-three percent of world’s poorest live in India

Reuters: “India has 33 percent of the world’s poorest 1.2 billion people, even though the country’s poverty rate is half as high as it was three decades ago, according to a new World Bank report.

India reduced the number of its poor from 429 million in 1981 to 400 million in 2010, and the extreme poverty rate dropped from 60 percent of the population to 33 percent during the same period. Despite the good news, India accounts for a higher proportion of the world’s poor than it used to. In 1981, it was home to 22 percent of the world’s poorest people.

The World Bank report comes just days after it proposed a $12 billion to $20 billion plan to reduce poverty levels over four years in the Indian states of Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan and Uttar Pradesh. Sixty percent of the financing would go to state government-backed projects, according to the Hindu Business Line newspaper.

The study that came out today showed a similar decline in the number of people living in poverty in recent years. People living below $1.25 (67 rupees) a day fell considerably from more than half the people in the developing world in 1981 to 21 percent in 2010, despite a 59 percent increase in world population during the same period.”

via India Insight.

21/04/2013

* Stephen Schwarzman unveils $300m China scholarship fund

BBC: “US private-equity magnate Stephen Schwarzman has launched a $300m (£200m) scholarship programme to send 200 foreign post-graduate students to study in China each year.

Blackstone boss Stephen A Schwarzman (file)

Mr Schwarzman is donating $100m of his personal $6.5bn fortune to the fund, and is raising a further $200m.

Selected students will spend a year at Tsinghua University in Beijing.

Mr Schwarzman said he hoped to foster “a win-win relationship of mutual respect” between China and the West.

The Schwarzman Scholars programme aims to rival the 111-year-old Rhodes Scholarship programme which enables foreign students to study at the UK’s University of Oxford.

It is being backed by major, mainly Western firms, many with interests in China.”

via BBC News – Stephen Schwarzman unveils $300m China scholarship fund.

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