07/03/2013

* China begins underground water safety investigation

Xinhua: “China has conducted investigations and research on the condition of underground water to determine the extent of pollution, a senior official from China’s top economic planning agency said Thursday.

“Based on the results we’ve collected so far, the safety of underground water is generally guaranteed, particularly the safety of drinking water from underground,” Du Ying, deputy head of the National Development and Reform Commission (NDRC), said at a press conference.

“But we can’t rule out the possibility that the pollution of underground water will worsen,” Du told the press on the sidelines of the annual session of the Chinese People’s Political Consultative Conference National Committee, the top political advisory body.

He said the pollution of underground water is a problem not only in cities but also in rural areas, and is spreading from shallow aquifers to deeper aquifers.

Many Chinese were infuriated after some chemical plants in east China’s Shandong Province were exposed to have illegally discharged toxic water underground directly, thus threatening the safety of underground water.

Du said the State Council, or China’s cabinet, together with the local government, has sent out teams to investigate the pollution reports.

“Our investigation into the reported pollution is still under way and no conclusion has been reached,” Du said.”

via China begins underground water safety investigation – Xinhua | English.news.cn.

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

07/03/2013

* Rahul slips into Sonia’s shoes

The Hindu: “The transition of power in the Congress is taking place gradually as its less than two-month-old vice-president has begun to take regular meetings with the organisation’s functionaries and MPs, presiding over meetings that the party president — and his mother — Sonia Gandhi held till recently.

Learning the ropes? A file photo of Rahul Gandhi and Sonia Gandhi at a party meet. File Photo: AP

Streamline the party organisation and put in place a system that will bridge the communication and coordination deficit, Congress vice-president Rahul Gandhi told central office-bearers here on Wednesday evening.

In the next fortnight, he added, he intended bringing together PCC chiefs, CLP leaders, and central general secretaries and secretaries in charge of States for a discussion, even as some senior functionaries suggested holding conventions in States where the Congress is in power to publicise the UPA government’s flagship programmes and dharnas in the Opposition-ruled States.

Earlier in the day, Mr. Gandhi met party MPs from Madhya Pradesh as part of a series of discussions he is holding daily with parliamentarians from different States. The focus at this meeting was on the party working concertedly to oust the BJP government in Madhya Pradesh in the Assembly elections later this year and ensuring that the Congress received the credit for Centrally sponsored welfare schemes being implemented in the State.

The transition of power in the Congress is taking place gradually as its less than two-month-old vice-president has begun to take regular meetings with the organisation’s functionaries and MPs, presiding over meetings that the party president — and his mother — Sonia Gandhi held till recently.

But the paradox is that while Mr. Gandhi is seen to be leading from the front in a bid to strengthen, energise and democratise the Congress, on Tuesday, he told MPs and journalists that becoming Prime Minister was not his priority as he believed in “long-term politics” — he wanted to empower everyone. He said he wanted to focus on strengthening his party ahead of next year’s general elections.”

via Rahul slips into Sonia’s shoes – The Hindu.

07/03/2013

* China faces social, financial risks in urbanization push

See also today’s reblog from China Daily Mail about the property bubble.

Reuters: “China’s urbanization drive could fuel social unrest over land disputes and pose financial risks if money is thrown around recklessly, a senior communist party official and a leading economist said on Thursday.

Wang Baiqiang prepares to go to work at a shoe factory in Yangzhou, Jiangsu Province February 18, 2013. REUTERS-Carlos Barria

Shifting people from the countryside to cities is a policy priority for China’s new leaders as they seek to sustain economic growth that last year slowed to a 13-year low of 7.8 percent. The government hopes 60 percent of China’s population of almost 1.4 billion will be urban residents by 2020.

The urban population jumped to above 700 million from less than 200 million in the previous three decades, but that explosion has triggered sometimes violent clashes over expropriation of farmland for development as well as water shortages, pollution and other problems.

“These are severe challenges as we are trying to sustain the urbanization process,” said Chen Xiwen, head of the Office of Central Rural Work Leading Group, the top body which guides China’s farm policy. “Many people have worries and such worries are understandable,” he told a news conference on the sidelines of China’s annual parliament session.

The government must protect farmers from losing their land in the process as local governments have been relying heavily on land sales to finance local investment, Chen said. “If the urbanization process becomes a process of depriving and harming farmers’ interests, it cannot be sustained and society cannot maintain stability.””

via China faces social, financial risks in urbanization push | Reuters.

07/03/2013

* North Korea warns U.S. of preemptive nuclear strike

Perhaps North Korea has learnt from the lessons of past wars with the US. Losers such as Germany and Japan benefited hugely from American aid, whereas winners such as North Vietnam did not benefit for decades after beating the Americans. Indeed even American allies like the UK had to pay the full Second World War loan for over 50 years.

So, if North Korea fought the US and lost, it reasons, unlimited aid will be forthcoming; perhaps more than China is willing to contribute.

That seems to be the only rational explanation for the continued belligerence of North Korea.

Reuters: “North Korea threatened the United States on Thursday with a preemptive nuclear strike, raising the level of rhetoric while the U.N. Security Council considers new sanctions against the reclusive country.

North Korean soldiers attend a military training in this picture released by the North Korea's official KCNA news agency in Pyongyang March 6, 2013. REUTERS-KCNA

North Korea has accused the United States of using military drills in South Korea as a launch pad for a nuclear war and has scrapped the armistice with Washington that ended hostilities in the 1950-53 Korean War.

North Korea, which has one major ally, neighboring China, threatens the United States and its “puppet”, South Korea, on an almost daily basis.

“Since the United States is about to ignite a nuclear war, we will be exercising our right to preemptive nuclear attack against the headquarters of the aggressor in order to protect our supreme interest,” the North’s foreign ministry spokesman said in a statement carried by the official KCNA news agency.”

via North Korea warns U.S. of preemptive nuclear strike | Reuters.

07/03/2013

Maybe these empty apartments will be used to house the 400m rural people being moved to cities in the next 20 years. But NOT at 45 times the annual income. So there is bound to be a massive devaluation. That in turn could lead to massive dis-satisfaction by the ‘upper’ middle class onwers of these empty flats, which in turn …

05/03/2013

* Power should be with more people, not just handful: Rahul

the Hindu: ““Asking me whether you want to be Prime Minister is a wrong question,” Rahul Gandhi said on Tuesday.

Congress leader Rahul Gandhi. Photo: Rajeev Bhatt

The Congress Vice President made this suo motu remark while interacting with party MPs amid growing clamour in Congress for projecting him as its Prime Ministerial face before the next Lok Sabha elections.

Mr. Gandhi also gave signals that he was against the “high command culture”, saying that he wants to empower more and more people than a handful, who call the shots.

The 42-year-old leader told the MPs in no uncertain terms that the organisation was his priority and he was preparing for a long haul.

“Today I see how MPs feel without power and it is the same story in all the parties, be it Congress or BJP. I want to empower the 720-odd MPs in Parliament.

“I want to give voice to the middle tier…empower the middle-level leaders. There are some parties in India which are run by one leader (BSP), two leaders (SP), five to six leaders (BJP) and 15 to 20 leaders (Congress). My priority is that I want to empower the MPs as also the 5,000-odd legislators in various states,” he said.

via Power should be with more people, not just handful: Rahul – The Hindu.

05/03/2013

* China Internet Executives Get a Seat at the Table in Beijing

WSJ: “Between questions of censorship, laws that require complicated listings in U.S. markets, and fierce and often public confrontations between companies, China’s Internet industry has always had an uncomfortable relationship with the government.

So it’s no small thing that this year, for the first time, the government took special steps to ensure more representatives from the industry could join China’s rubber-stamp parliament, the National People’s Congress, and its advisory body, the Chinese People’s Political Consultative Conference.

According to two people who were part of the consultation process to choose delegates, the change primarily reflects the government’s recognition that leaders of the relatively new industry can be counted among China’s most important business leaders. In August, the United Front Work Department, the branch of the party in charge of bringing in useful people who are not party members to cooperate with the party, held a meeting attended by representatives from about 20 of China’s most important Internet companies, according to a person who attended. At the meeting, the representatives were asked about issues facing the industry, what leaders they thought should be nominated and also what other people should be consulted, according to the person.”

via China Internet Executives Get a Seat at the Table in Beijing – China Real Time Report – WSJ.

04/03/2013

* Reforms and Restructuring at the Chinese NPC Session: Managing Expectations

China Policy Institute: “This year’s Lianghui, the National People’s Congress (NPC) and People’s Political Consultative Conference (PPCC), is important in the sense that a new government will be “sworn in”.

npcd

Following last November’s Party Congress, the Premier-in-waiting will be confirmed at the NPC session. He will take up his position together with a whole new cabinet—following the forming of a new Central Committee of the Party, ministers are expected to be reappointed as well, with a five year term ahead.

But the more critical question is what policy initiatives will the new government press ahead in order to show that it is the right government for the country. The new Party leadership emerged out of the last November’s Party Congress carries a strong mandate of “reform”. Now that the honeymoon effect between the new leadership team and the country is starting to fade away, citizens are watching carefully what the leadership indeed has to offer in terms of real actions.

Before the Party’s Congress, there was already indication that the new leadership team would take structural reforms quite seriously. There was indication that Xi Jinping was already commissioning reform proposals throughout the last 1-2 years. Li Keqiang, to be confirmed as Premier at this Lianghui, was also quick to signal that he was a reform guy and his government will take concrete reform measures. But it will be too early to expect the leadership team to roll out a comprehensive reform plan at this Lianghui. Between the conclusion of November’s Party Congress and this Lianghui, there was simply not enough time to forge a consensus among the Party elite.

The main preoccupation of the last three months have been lining up the provincial leaders and working out the political appointments of state agencies, which will be unveiled at the end of the NPC session. In fact, the Party Plenum (the second of this new Central Committee) that closed last night (28 Feb 2013) explicitly said in its communique that it had agreed on the political appointment list for state agencies. It did not give explicit promises of reform policies that are soon to come.”

via China Policy Institute Blog » Reforms and Restructuring at the NPC Session: Managing Expectations.

04/03/2013

* China: The next phase of growth

China Policy Institute: “As the new Chinese leadership takes over, their biggest economic challenge remains generating growth for another 30 years. In addition to re-balancing the economy and stimulating more productivity, a key aspect will be the re-defining the role of the state. After over 30 years of marketisation and reform, China remains a mixed picture of state-led policies and a growing number of facially neutral laws with some exemptions for state-owned enterprises.

lyuIn addition, the state-owned commercial banks continue to benefit from official “financial repression” policies, such as the preservation of a spread between lending rates and deposit rates. It helps to generate margins for banks and facilitate their recapitalisation. This policy also enables the state-owned commercial banks to continue to support government policies ranging from fiscal stimulus to supporting state-owned enterprises, though not without cost to overall economic growth as financial repression distorts the allocation of capital.

The high levels of capital formation (some 40% of GDP) in the past two decades and the inefficient allocation of capital away from more productive private firms are worrying. The Twelfth Five Year Plan (2011-15) plans to re-balance the economy towards greater domestic demand and less of a reliance on exports. A key part of the plan is to increase consumption and other parts such as more urbanization and services development would support investment in developing larger urban areas where migrants can settle and government services can be dispersed more efficiently.

This plan in actuality has an implicit 30 year time horizon as these policies of migration, urban development and boosting consumption cannot be achieved in a short time period. Unless China can re-orient its growth model including towards more efficient investments by private firms, then it could find it difficult to sustain a strong growth rate. Part of this challenge will include creating a more secure welfare state.”

via China Policy Institute Blog » The next phase of growth.

04/03/2013

* David Beckham takes up China football ambassador role

BBC: “David Beckham has become a global ambassador for Chinese football to help the image of the country’s game.

David Beckham

The Chinese Super League has recently been hit by the exit of ex-Chelsea striker Didier Drogba, while also suffering from a match-fixing scandal.

Beckham, 37, will combine the role with playing for Paris St-Germain.

“I am honoured to have been asked to play such an important role at this special time in Chinese football history,” he said in a statement.

His role will involve attending league matches in China and visiting clubs to help promote the game to children.

“I’m excited by the prospect of promoting the world’s greatest game to Chinese sports fans as I’ve seen first hand the growing interest in football there,” added Beckham.

“This is a wonderful sport that inspires people across the world and brings families together, so I’m relishing the opportunity of introducing more fans to the game.”

Drogba, 34, joined Chinese side Shanghai Shenhua in June 2012 on a two-and-half-year deal after helping Chelsea to win last season’s Champions League.

But the Ivory Coast international left the Chinese club in January 2013 for Turkish side Galatasaray, in a controversial loan move.

Drogba’s former Chelsea team-mate and ex-France striker Nicolas Anelka also left Shanghai in a short-term loan move to Italian side Juventus.

The departures have been a blow to the Chinese game ahead of the 2013 Chinese Super League season starting on 8 March.

There have also been problems with corruption, which resulted in the country’s former top referee being jailed and 58 officials being banned for match-fixing by Fifa and the Chinese Football Association.”

via BBC Sport – David Beckham takes up China football ambassador role.

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