12/08/2012

* Beijing Reasserts Its Claims in South China Sea

NY Times: “China does not want to control all of the South China Sea, says Wu Shicun, the president of a government-sponsored research institute here devoted to that strategic waterway, whose seabed is believed to be rich in oil and natural gas. It wants only 80 percent.

Mr. Wu is a silver-haired politician with a taste for European oil paintings and fine furniture. He is also an effective, aggressive advocate for Beijing’s longstanding claim over much of the South China Sea in an increasingly fractious dispute with several other countries in the region that is drawing the United States deeper into the conflict.

China recently established a larger army garrison and expanded the size of an ostensible legislature to govern a speck of land, known as Yongxing Island, more than 200 miles southeast of Hainan. The goal of that move, Mr. Wu said, is to allow Beijing to “exercise sovereignty over all land features inside the South China Sea,” including more than 40 islands “now occupied illegally” by Vietnam, the Philippines and Malaysia.

In the past several weeks, China has steadily increased its pressure, sending patrols with bigger ships and issuing persistent warnings in government-controlled newspapers for Washington to stop supporting its Asian friends against China.

The leadership in Beijing appears to have fastened on to the South China Sea as a way of showing its domestic audience that China is now a regional power, able to get its way in an area it has long considered rightfully its own. Some analysts view the stepped-up actions as a diversion from the coming once-a-decade leadership transition, letting the government show strength at a potentially vulnerable moment.

…

The Obama administration, alarmed at Beijing’s push, contends that the disputes should be settled by negotiation, and that as one of the most important trade corridors in the world, the South China Sea must enjoy freedom of navigation. The State Department, in an unusually strong statement issued this month intended to warn China that it should moderate its behavior, said that Washington believed the claims should be settled “without coercion, without intimidation, without threats and without the use of force.”

Washington was reacting to what it saw as a continuing campaign on the South China Sea after Beijing prevented the Association of Southeast Asian Nations, at its summit meeting in Cambodia in July, from releasing a communiqué outlining a common approach to the South China Sea.

The dispute keeps escalating. On July 31, the 85th anniversary of the founding of the People’s Liberation Army, the Chinese Defense Ministry heralded the occasion by announcing “a regular combat-readiness patrol system” for the waters in the sea under China’s jurisdiction.

The government then said it had launched its newest patrol vessel: a 5,400-ton ship. It was specifically designed to maintain “marine sovereignty,” said People’s Daily, the Communist Party’s leading newspaper.””

via Beijing Reasserts Its Claims in South China Sea – NYTimes.com.

10/08/2012

* China Deal to Acquire U.S. Battery Maker A123 is Just the Beginning

WSJ: “As the script now reads, Wanxiang — China’s largest auto parts maker — plays the role of a clever opportunist in the unfolding tragedy of American competitiveness.

Here is an excerpt from the most recent episode:

A leading American maker of batteries for electric vehicles, A123 Systems, secures hundreds of millions of dollars in grants from Washington D.C and the State of Michigan.

A123 Systems, recently offered a $450 lifeline by China’s Wanxiang Group, makes lithium-ion car batteries at this plant in Michigan.

A123 quickly earns awards for both its innovative culture and its technical advances. But before long, the company encounters business difficulties, faces imminent bankruptcy and scrambles for money.

Wanxiang arrives with fistfuls of cash, takes control of A123 and inherits some of the world’s most advanced battery technology. Wanxiang is further encouraged as policy makers in Beijing promise $10,000 rebates to Chinese electric car buyers. The future is bright.

It is fair to say that Wanxiang, a private company based in Zhejiang, has broken no rules. Wanxiang sees a straight-up business deal in which it pays market price for a cash-starved company that is on the verge of failure.

However, what many American taxpayers see is bad business, a sham. And they sense a deeply troubling pattern for the future: America develops technology – subsidized with generous tax dollars – only to see it purloined, borrowed or, in this case, purchased on the cheap by firms from competing nations.

How can America possibly sustain its culture of innovation when assets are so vulnerable to cherry picking by cash-rich Chinese companies? This issue — not last month’s unemployment rate — should be the central issue as the U.S. tries to decide who will be its president for the next four years.”

via China Deal to Acquire U.S. Battery Maker A123 is Just the Beginning – China Real Time Report – WSJ.

10/08/2012

* China starts construction on 5.8 mln low-income housing units

Xinhua: “China started building 5.8 million low-income housing units in the first seven months of this year, the Ministry of Housing and Urban-Rural Development said Friday.

Construction on 3.6 million affordable homes has been basically completed in the period, the ministry said in a brief statement on its website.

The government vowed to start construction on more than 7 million low-income housing units this year, part of its five-year plan to build 36 million such units by 2015.

The government has stepped up its efforts in the construction of affordable housing in recent years, aiming to cool the country’s runaway property prices.”

via China starts construction on 5.8 mln low-income housing units – Xinhua | English.news.cn.

10/08/2012

* India can win gold for corruption, Guru Ramdev says

Times of India: “If the Olympics gave a medal for corruption, India could have won a gold, yoga guru Baba Ramdev said on Friday as thousands poured into the Ramlila Grounds here for day two of his fast.

Calling on all of India to support his agitation against black money and graft, Ramdev said: “India could have won gold if there was a competition for corruption in the Olympics.

The crowds, which had started gathering since 8am, cheered and clapped enthusiastically, to which Ramdev said, “This is not a matter to applaud.””

via India can win gold for corruption, Ramdev says – The Times of India.

Both India and China are in the middling levels of Transparency International index of corruption, though amongst the top of the larger economies.  However, whereas China appears to be trying to tackle it at the national level, it is far from obvious that India is trying to do so.

See also:

10/08/2012

Once again, some signs that China is ‘softening’ on contovertial cases. Question is: is it a general policy or only for this year, the year of leadership change?

09/08/2012

* Defects found on 12 rail lines

China Daily: “Seven of the 12 lines have been put into service, including high-speed passenger railways between Wuhan and Guangzhou and between Zhengzhou and Xi’an, according to the document.

The problems were discovered during routine inspections. The construction defects on the seven lines included cracks and leaks on tunnel arches, tilted communications towers and poorly arranged electronic cables, the Chinese news portal eeo.com.cn reported on Tuesday.

Other problems were found on five lines currently under construction, including one linking Lhasa and Xigaze in the Tibet autonomous region, which is an extension of the Qinghai-Tibet railway.

The ministry severely criticized some contractors for building with low-quality materials and not using enough iron bars in reinforced concrete.

Media reports quoted anonymous experts as saying the defects might threaten railway safety.

Cracks on the railway tunnel’s arch could cause concrete chunks to break off when a high-speed train passes, destroying the train’s power supply equipment, they said.

A ministry official who spoke to China Daily on the condition of anonymity confirmed the authenticity of the document, saying it was meant to be circulated inside the ministry and to relevant parties.

He said the ministry is paying great attention to quality issues, and has organized regular inspections on railway construction and operations.”

via Defects found on 12 rail lines |Society |chinadaily.com.cn.

Good news: in the past such information would not have seen the light of day; bad news: too many defects in a key transport and communications system.

See also: 

09/08/2012

* Agni-II successfully test-fired

the Hindu: “India successfully test-fired nuclear weapons capable strategic ballistic missile, Agni-II, for its full range of more than 2,000 km from Wheeler Island off the Odisha Coast on Thursday.

The launch was carried out by Strategic Force Command personnel from a mobile launcher. The Intermediate Range Ballistic Missile, which carried a dummy payload of 1,000 kg, was fired at 8.46 a.m. from a rail mobile launcher. Agni-II has already been inducted into the services and belongs to the group of Agni class of strategic missiles which form the bulwark of India”s nuclear deterrence policy.

Top Defence Research and Development Organisation (DRDO) officials told The Hindu from Wheeler Island that the two-stage solid-propelled missile followed a text-book trajectory and zeroed in on to a pre-determined target point in the Bay of Bengal with a single to two digit accuracy after a 700-second flight.

They said the re-entry systems worked well and all other systems functioned perfectly.The electro-optical systems and telemetry stations tracked and monitored the missile’s flight path. Two ships stationed in the vicinity of the target point witnessed the terminal event.

The SFC personnel conducted the trial as part of regular user exercise. Agni-II is 20 metres long and capable of carrying a nuclear warhead weighing one ton.

It was the third success in a row for Agni variants following the launch of Agni-V in April and Agni-1 recently.”

via The Hindu : News / National : Agni-II successfully test-fired.

09/08/2012

* Indian Govt to pick up medical tab for poor

Times of India: “It’s raining sops for the poor. The government is making treatment of people below the poverty line suffering from mental disorders and diabetes free at government or public super speciality hospitals like AIIMS.

Yesterday, TOI had reported the government’s plan to gift cell phones to the poor.

In the maiden endorsement of India’s swelling burden of patients suffering from mental disorders, the ministry has included it under the Rashtriya Arogya Nidhi (RAN) — the scheme that till now provided financial assistance to only those BPL patients suffering from major life-threatening diseases like cancer.

All BPL patients suffering from mental disorders like depression, anxiety, adjustment and personality disorders will be given a free one-time grant of upto Rs 1 lakh for treatment.

In cases where the quantum of financial assistance is likely to exceed Rs 1.5 lakh, they will be referred to an expert committee headed by the DGHS for consideration.”

via Govt to pick up medical tab for poor – The Times of India.

09/08/2012

* China factory output growth at three-year low, spurs easing hopes

Reuters: “Annual growth in China’s factory output slowed to its weakest in more than three years in July, missing market forecasts and increasing expectations that Beijing will take further policy steps to support an economy that has been sliding for six straight quarters.

Official data released on Thursday also showed China’s annual consumer inflation fell to a 30-month low in July, suggesting that the central bank has ample scope to ease policy again after rate cuts in June and July to keep the economy on track to meet an official 2012 growth target of 7.5 percent.

China’s economy faces powerful headwinds as the euro zone debt crisis and a sluggish U.S. recovery keep global growth at a low ebb, the main factor that pushed China’s new export orders in July into their steepest fall in eight months.

“The government underestimated the pace of slowdown and there needs to be more aggressive stimulating policies,” said Alistair Thornton, an economist at IHS Global Insight in Beijing.

“The government has signaled that it’s taking a more aggressive line on stimulus measures … But it’s yet to feed into the real economy, which is why we are seeing such weak activities data for July.”

Hopes of further easing from China boosted riskier assets, with Asian shares rising to a three-month high and the commodity-sensitive Australian dollar testing a 4-1/2-month peak.

China’s industrial output growth slowed to 9.2 percent year-on-year in July, its weakest since May 2009, down from 9.5 percent in June and below the 9.8 percent forecast in a Reuters poll.

Annual growth in fixed-asset investment, in the likes of real estate, roads and bridges, came in at 20.4 in January-to-July, unchanged from the January-to-June period and just below the 20.5 percent forecast.

Growth of retail sales, the biggest driver of the economy’s expansion in the first quarter, eased to 13.1 percent, short of the forecast of 13.7 percent.”

via China factory output growth at three-year low, spurs easing hopes | Reuters.

09/08/2012

* China inflation rate dips to a 30-month low in July

BBC News: “China’s inflation dipped to a 30-month low in July, giving policymakers a bigger cushion to boost stimulus measures to spur economic growth.

Consumer prices rose by 1.8% in July, from a year earlier. That was down from a 2.2% growth rate in June and a 3% rise in May.

China has been looking to spur domestic consumption amid a slowing global demand for its exports.

China’s economy grew at its slowest pace in three years in second quarter.

The drop in prices of pork and meat and poultry products, which fell by 18.7% and 6.1% from a year earlier respectively, were the key drivers of the slowdown in the rate of inflation.

China’s economy grew at an annual rate of 7.6% in the April to June period, down from an 8.1% expansion in the previous three months.

There are fears that growth in the world’s second-largest economy may slow further in the coming months.

As a result, Beijing has taken various measures to spur growth.”

via BBC News – China inflation rate dips to a 30-month low in July.

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