29/08/2012

* In China, Sons Fight Railways Ministry Over Crash

NY Times: “Henry Cao has stark memories of the moment the high-speed train he was riding rear-ended another last summer in the eastern city of Wenzhou: the pleasantly hypnotic rocking that gave way to a jolt he likened to an earthquake, followed by blackness and the sensation of falling as the car plummeted 100 feet off a viaduct.

Henry Cao, left, and his brother, Leo, at the site of a train crash that killed their parents and injured Henry in Wenzhou last year.

“We were flying like rag dolls,” he said.

The crash killed 40 passengers, injured 191 and shook the nation’s confidence in its ambitious high-speed rail system. Mr. Cao, 33, a Chinese-American importer from Colorado, barely survived; he lost a kidney and his spleen, and head injuries have left him mired in a perpetual daze, unable to stay awake for more than an hour or two. His parents, naturalized American citizens taking him on a triumphant tour of their native land, were killed.

As Mr. Cao has struggled to recover over the past year, he has found himself drained by a different sort of battle: trying to wrest compensation from the Ministry of Railways, an unbending government behemoth unaccustomed to dealing with determined foreign citizens.

This month Mr. Cao returned to China for the first time since the accident. He and his brother, Leo, came to collect their parents’ remains and to press negotiations with the ministry. “They know how to wear you down,” said Leo Cao, 30. “First they let you scream and yell, then they stall you, and finally they tell you vague and empty words. Now they say, ‘You’re lucky you’re getting anything.’ ”

Their painful and politically fraught odyssey has highlighted the workings of an omnipotent ministry that employs more than two million people and rivals the Chinese military in size and influence. The experience has been disorienting for the Cao brothers, who left China as adolescents two decades ago. “This place is not how I remember it,” said Henry Cao, speaking faintly as his eyes flickered and lost focus. “Everyone is rushing around to make money. Life here is cheap.”

The ministry, which runs its own court system and is largely impervious to oversight, has long been dogged by accusations of corruption. A former rails minister, Liu Zhijun, who was fired five months before the accident, is expected to go on trial next month for charges of taking millions of dollars in bribes and other unnamed “disciplinary violations.”

Zhang Kai, a lawyer who represented a passenger sentenced to three years in prison for slapping a train conductor, described the ministry as a “monster left over from the planned economy era” that resists reform or challenges to its authority. “It is common knowledge that the ministry is responsible for generating maximum profits while supervising itself,” Mr. Zhang said.

In a report released in December, government investigators placed the blame for the Wenzhou accident on flaws in signaling equipment. Investigators say the ministry bypassed safety regulations in its haste to create the world’s largest high-speed railroad network.”

via In China, Sons Fight Railways Ministry Over Crash – NYTimes.com.

29/08/2012

* India riots: Court convicts 32 over Gujarat killings

BBC News: “A court in India has convicted 32 people for involvement in the 2002 religious riots in Gujarat state.

Rioting in Gujarat in 2002

The court acquitted 29 others in the case known as the Naroda Patiya massacre.

Among those convicted were former minister Maya Kodnani and Babu Bajrangi, a former leader of the militant Hindu group Bajrang Dal.

A total of 95 people were killed in the rioting on 28 February in the Naroda Patiya area of Ahmedabad city.

Most of the convicted, including Ms Kodnani and Mr Bajrangi, were found guilty of murder and criminal conspiracy, reports said.

The trial began in August 2009 and charges were framed against 62 people. One of the accused died during the trial.

Ms Kodnani was the junior minister for women and child development in the Gujarat government when she was arrested in connection with the incident in 2009.

More than 1,000 people, mostly Muslims, were killed when riots erupted after 60 Hindu pilgrims died in a train fire in 2002.

It was one of India’s worst outbreaks of religious violence in recent years.”

via BBC News – India riots: Court convicts 32 over Gujarat killings.

See also: Indian ethnic – religious tensions

29/08/2012

* China’s Exports to U.S. Gain Traction

WSJ: “China’s exports to Europe have remained weak during the traditional peak season for shipping, but the country’s trade with the U.S. appears to have more traction, according to the chief executive officer of Maersk Lines, the world’s largest container shipping group.

Søren Skou, who took the helm this year of the container division of the Denmark’s A.P. Møller Maersk A/S said in an interview Wednesday with The Wall Street Journal that his confidence in global trade has deteriorated since June, mostly because of recessionary conditions in Europe, but he said volumes world-wide are likely to expand 4% for the full year compared with 2011.

August is a critical month for the containerized shipping industry, which depends on exports to the West from China for the bulk of its activity. Mr. Skou said his customers appear to be positioning for satisfactory holiday spending in the U.S.—but not Europe.

“The customers are expecting a Christmas season [in the U.S.], which doesn’t appear to be the case in Europe,” he said.”

via China’s Exports to U.S. Gain Traction – WSJ.com.

Some glimmer of hope for (part of) world economy!

29/08/2012

* China’s aircraft carrier: in name only

Reuters: “When Japanese activists scrambled ashore on a disputed island chain in the East China Sea this month, one of China’s most hawkish military commentators proposed an uncharacteristically mild response.

A half-built Chinese-owned aircraft carrier Varyag, which is to be converted into a floating casino in China, is towed and escorted by a flotilla of tugboats and pilot ships past the Leandros Tower built in 419 B.C. on the Bosphorus Straits in Istanbul November 1, 2001. REUTERS-Fatih Saribas-Files

Retired Major General Luo Yuan suggested naming China’s new aircraft carrier Diaoyu, after the Diaoyu islands in the East China Sea. It would demonstrate China’s sovereignty over the islands known as the Senkakus in Japanese, he said.

For a notable hardliner, it was one of the least bellicose reactions he has advocated throughout a series of territorial rows that have soured China’s ties with its neighbors in recent months.

More typical was General Luo’s warning in April that the Chinese navy would “strike hard” if provoked during a dispute with the Philippines over Scarborough Shoal in the South China Sea.

One possible reason for General Luo’s restraint, military analysts say, is he knows it could be towards the end of the decade before China can actually deploy the new carrier to the disputed islands or any other trouble spot.

Despite public anticipation in China that the carrier — a refitted, Soviet-era vessel bought from Ukraine — will soon become the flagship of a powerful navy, defense experts say it lacks the strike aircraft, weapons, electronics, training and logistical support it needs to become a fighting warship.

“There is considerable uncertainty involved, but it could take anything from three to five years,” said Carlo Kopp, the Melbourne, Australia based co-founder of Air Power Australia, an independent military think tank.”

via Analysis: China’s aircraft carrier: in name only | Reuters.

See also: China’s military presence

29/08/2012

* China city party chief ‘fled with money’

BBC News: “A former top official of a city in northeast China has fled the country – reportedly with millions of dollars, Chinese reports say.

A person handling Chinese yuan bills

Wang Guoqiang, who was party secretary of Fengcheng city in Liaoning province, left for the United States in April with his wife, the People’s Daily said.

Local officials said Mr Wang, who was being investigated for corruption, had been removed from his post, it said.

Several reports cited 200m yuan ($31.5m; £20m) as the amount taken.

The local officials did not elaborate on allegations that he had embezzled and transferred the funds to the US, where his family is believed to be.

But rumours surrounding the case, the latest in a series of corruption scandals, have been circulating online for some time.

According to the city’s website, Mayor Ma Yanchuan took over as Fengcheng party secretary earlier this month.

Premier Wen Jiabao has repeatedly called corruption the biggest threat to Chinese Communist Party rule.

Corruption among officials remains a huge source of anger among China’s population, says the BBC’s Martin Patience in Beijing.

While the finances of the top leaders are off limits, many other senior officials have been brought down by scandals, says our correspondent.”

via BBC News – China city party chief ‘fled with money’.

As this article says: “Premier Wen Jiabao has repeatedly called corruption the biggest threat to Chinese Communist Party rule.”

See also: Corruption by officials  is what makes Chinese citizens mad

28/08/2012

* One killed in fresh Assam violence

BBC News: “One man has been killed and five others have been injured in fresh violence in India’s Assam state, police said.

An Indian riot refugee woman sleeps as her child reads a book at a relief camp during India’s ruling Congress party President Sonia Gandhi visit in Deborgaon in Kokrajhar, India, Monday, Aug. 13, 2012

In the first incident, a man was killed and four others were wounded, while the second incident left one man injured. Both clashes occurred in Kokrajhar.

At least 87 people have died in fighting between indigenous Bodo tribes and Muslim settlers in Assam since last month.

More than 300,000 people fled their homes after the fighting.

Most of them are still living in relief camps.

There has been tension between indigenous groups and Muslim Bengali migrants in Assam for many years.

Last week, police arrested a local politician, Pradeep Brahma, for his alleged involvement in the recent ethnic violence.

Kokrajhar, Dhubri and Chirang were some of the districts worst affected by the clashes.

An indefinite curfew has been enforced in Kokrajhar and the army has marched through the streets of some of the troubled neighbourhoods.”

via BBC News – India: One killed in fresh Assam violence.

27/08/2012

* Gu Kailai verdict set for Monday

FT: “The verdict in the murder trial of the wife of disgraced Chinese politician Bo Xilai will be announced on Monday, wrapping up a key phase in the Communist party’s efforts to deal with its biggest internal crisis in decades.

Mr Bo’s wife Gu Kailai and Zhang Xiaojun, a former family aide and co-defendant, were tried in the eastern city of Hefei on August 9 on charges of murdering Neil Heywood, the Bo family’s British business agent.

Gu Kailai Body Double

The verdict would be announced at 9am on Monday, said the Hefei Intermediate People’s Court.

Ms Gu is widely expected to be found guilty because Chinese state media had spoken of “irrefutable evidence” against her even before the trial started, and she confessed in court, according to observers present at the trial.

Chinese courts, which play a growing role in commercial disputes in the country, enjoy little or no independence in cases that are considered politically sensitive or touch upon the interests of government or party officials, well-connected individuals or state enterprises.

Ms Gu’s trial, which lasted for less than eight hours, was tightly stage-managed, with authorities barring access for foreign media.

The official accounts of the proceedings have triggered doubts and debate over the validity of Ms Gu’s reported confession and other details of the trial.

Two security experts familiar with facial recognition software said the person shown in state television footage of the courtroom was not Ms Gu.

…”

via Gu Kailai verdict set for Monday – FT.com.

See also:

27/08/2012

* Is a Youth Revolution Brewing in India?

NY Times: “Among the world’s major countries, India has the youngest population, and the oldest leaders. A startling four-decade gap between the median age of India’s people and that of its government officials most recently reared its head with a heavy-handed and widely-maligned crackdown on free speech on the Internet.

A protester jumped over a police barricade during a demonstration near the prime minister's residence, led by India Against Corruption member Arvind Kejriwal, in New Delhi, Aug. 26, 2012.

History shows us that generations with an exceptionally high youth ratio create political movements that shake up their systems and leave a profound impact on history. America’s baby boomers – the 79 million people born between 1946 and 1964 – led the charge in the civil rights movement and the sexual revolution.

In China, out of the stormy Cultural Revolution emerged the country’s current crop of leaders, who have taken it to remarkable heights of prosperity and power. More recently, in the Arab Spring there is evidence of a strong correlation between the ratio of the population under 25 and the urge to overthrow unresponsive governments.

Whether India will follow the same path may become apparent in the very near future.

There are some signs that the beginnings of India’s own youth revolt are stirring – the “India Against Corruption” protests, which swept Delhi on Sunday, involved a about a thousand protesters, mostly young men, who broke through barricades meant to protect their elder politicians’ homes and battled with the police.

The India Against Corruption political movement unleashes youth disenchantment against the establishment, using new means of communication like Twitter and Facebook as its fuel. Still, it is headed by an iconic 75-year-old Gandhian – call it shades of a youth movement, with the structure of a traditional Indian family.

India now has around 600 million people who are younger than 25, and nearly 70 percent of its 1.2 billion population is under 40. It is an unprecedented demographic condition in the history of modern India, and in absolute numbers it is unprecedented anywhere in the world. It also comes at a time when much of the developed world and China have aging populations.

The country’s median age of 25 is in sharp contrast to the average age of its cabinet ministers, 65, which is a far bigger gap than in any other country – Brazil and China are next with age gaps just under 30 years. In the United States the gap is 23 years, and in Germany it is less than 10.

Beyond the Internet crackdown, there are other disturbing signs that the age and thought gap between the majority of India’s citizens and their aging leaders is stifling India’s teeming youth.

We see this at play when the chairwoman of the National Commission for Women tells women to “be careful about how you dress,” after a young woman was sexually assaulted in public by a group of men in Guwahati.

We see it when a police officer wielding a hockey stick cracks down on Mumbai’s buzzing night life, and is defended by the state’s home minister. We see it in the inability to overhaul the country’s jaded bureaucracy that stifles fresh ideas.

Most tellingly, perhaps, we see it in the lack of political will to open up key sectors of the economy like retail to foreign competition, under the populist pretense of protecting existing jobs. This protectionism is far removed from the economic realities of the past two decades – India has been one of the clear winners of globalization. But as one writer put it, “The decision-makers in the Indian political class are still stuck in the mental framework of the 1970s, which is when they were blooded in politics.””

via Is a Youth Revolution Brewing in India? – NYTimes.com.

27/08/2012

* $135 – $12 = the pay gap the West can’t bridge

The Times: “We can’t compete with China on wages and are living beyond our means. We must retrench before we grow again

Two numbers — $135 and $12 — explain why Britain’s and Europe’s economies are stagnant or shrinking. Pundits and economists have lined up with suggestions about how to stimulate our economy: more quantitative easing; clever schemes such as “funding for lending”; while others say enough of austerity, let’s stop the cuts. But all that assumes that growth is the natural order of things.

None of these proposals will solve our problems because they ignore the two numbers $135 and $12. The first is what the average worker in the West earns per day; the second what the average worker in urban China earns.

This inequality in pay is the main reason our economy is in peril. What entitles the rich world’s 500 million workers to salaries ten times greater than the 1.1 billion workers in urban bits of the developing world who toil and study so much harder, let alone nearly 100 times greater than the 1.3 billion adults who live in rural poverty?

In the global marketplace it is now impossible to preserve well-paid jobs for Westerners. Many of those jobs have gone or are going south or east. In the 1950s the most successful company by market capitalisation was General Motors. In 1955 it employed nearly half a million Americans and 80,000 foreigners. Today Apple, the world’s biggest company, employs 4,000 Americans and more than 700,000 overseas contractors. And in jobs that have not moved, wages are under severe downward pressure: US high- school dropouts now earn less in real terms than their dropout grandfathers.

It was not always like that. For 55 years after the Second World War annual growth in jobs in Western economies was about 2 per cent and real wages grew by about 3 per cent year after year. The idea that we would all earn more without having to work harder, and that there would be jobs for our children, became a democratic “right”. But this right is now broken because, starting in 1990, developing nations ditched the failed socialist and Marxist policies that kept them poor. Since 2000 China’s economy has quintupled — while jobs, wages and GDP growth over the cycle for Western economies was, with few exceptions, negative.

For the first time in centuries we have to compete on a level playing field. We cannot compete on wages. Do we have other advantages that will protect our living standards? Aren’t Europe’s workers better educated? More creative? No: 10,000 science PhDs graduated from Chinese universities last year. In 1995, global patents granted to China amounted to 0.5 per cent of the total; in 2010 it had reached 9 per cent and is rising exponentially. Our best universities are educating many future business leaders and scientists of developing countries. Our advantage in physical and intellectual capital is eroding fast. What the developing world does not create, it can steal; the global value of counterfeit and pirated goods is forecast to rise by $1.5 trillion by 2015.

Most importantly, we consume more and invest less. China’s investment levels (however misdirected some of those investments may be) have risen to almost half of GDP, while the West is at about 15 per cent and falling. The truth is that Western nations have been living beyond their means. Our build-up in total debt — corporate, individual and government — has now become an enormous overhang. The UK is more indebted than Greece, Spain or Italy and only Japan and Ireland’s total debt per head is greater than ours.

So how do we get out of this mess?

…”

By Jon Moynihan, , 15 August 2012 | PA Consulting Group

via The Times – $135 – $12 = the pay gap the West can’t bridge, 15 August 2012 | PA Consulting Group.

27/08/2012

* Car plate applicants exceed 1m in Beijing

China Daily: “A record 1-million-plus people in Beijing competed for fewer than 20,000 registration certificates qualifying them to buy cars through a lottery system on Sunday.

With a fixed number of car registrations issued each month and a lengthening waiting list, many potential car buyers are losing hope.

Some 1.05 million qualified applicants entered the registration lottery in August – 110,000 of them for the first time – and only 19,926 registrations will be issued, the city office in charge of the lottery system said on Saturday.

One in every 53 applicants will get the registrations, 80 percent fewer than in January last year, when Beijing introduced the lottery system to cap new car ownership at 240,000 a year.”

via Car plate applicants exceed 1m in Beijing |Society |chinadaily.com.cn.

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