Posts tagged ‘Asia’

24/04/2014

Disillusioned office workers: China’s losers | The Economist

ZHU GUANG, a 25-year-old product tester, projects casual cool in his red Adidas jacket and canvas shoes. He sports the shadowy wisps of a moustache and goatee, as if he has the ambition to grow a beard but not the ability. On paper he is one of the millions of up-and-coming winners of the Chinese economy: a university graduate, the only child of factory workers in Shanghai, working for Lenovo, one of China’s leading computer-makers.

Man wearing suit on escalator

But Mr Zhu considers himself a loser, not a winner. He earns 4,000 yuan ($650) a month after tax and says he feels like a faceless drone at work. He eats at the office canteen and goes home at night to a rented, 20-square-metre (215-square-foot) room in a shared flat, where he plays online games. He does not have a girlfriend or any prospect of finding one. “Lack of confidence”, he explains when asked why not. Like millions of others, he mockingly calls himself, in evocative modern street slang, a diaosi, the term for a loser that literally translates as “male pubic hair”. Figuratively it is a declaration of powerlessness in an economy where it is getting harder for the regular guy to succeed. Calling himself by this derisive nickname is a way of crying out, “like Gandhi”, says Mr Zhu, only partly in jest. “It is a quiet form of protest.”

via Disillusioned office workers: China’s losers | The Economist.

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23/04/2014

Xi’s Corruption Crackdown Hits China’s Restaurants – Businessweek

Dirty officials aren’t the only ones getting slammed as Xi Jinping continues his crackdown on corruption and waste. China’s restaurant industry grew 9 percent, to 2.56 trillion yuan ($411 billion), last year, its slowest growth in more than two decades, according to a report released by the China Cuisine Association on April 19.

Xi's Corruption Crackdown Hits China's Restaurants

Restaurants, particularly the pricier ones, have long been popular venues for China’s bureaucrats and the businessmen wanting to curry favor with them. “This is a sign that the central government’s antigraft campaign against waste and extravagance has been well implemented,” said Feng Enyuan, deputy chairman of the CCA, reported the China Daily on April 21.

Midrange and high-end restaurants have been particularly hard hit, according to the association. China Chuanjude Group, the 150-year-old state-owned roast duck chain, saw its revenue fall 2.13 percent, to 1.9 billion yuan, while net profit dropped 27.6 percent last year, to 110 million yuan. In response, the chain has tried to lure more families and friends, in part by adding more affordable dishes to its menu.

via Xi’s Corruption Crackdown Hits China’s Restaurants – Businessweek.

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19/04/2014

A Panda Watches TV in China: Caption Contest Winners – China Real Time Report – WSJ

How many words is a picture really worth? In an ongoing feature, China Real Time is asking readers to dream up captions for a recent news photo. This week, a giant panda munches bamboo while contemplating a TV screen in Yunnan Province.

UPDATE: We have our winner via Twitter

First runner up is from “Glen” in the comments:

“A rerun! Dang it!”

And the best of the rest, also from the comments section:

Slim: “Chinese TV really IS as bad as everyone says! How can I stream House of Cards?”

Saif Ali: “Hmm, the camera adds 10 pounds.”

_____________________________________

via A Panda Watches TV in China: Caption Contest Winners – China Real Time Report – WSJ.

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11/04/2014

All you need to know about business in China | McKinsey & Company

A lot of people view China business as mysterious. Relax. Consumers behave pretty much the same everywhere. Competition is pretty much the same everywhere. You just need to ignore the hype and focus on the basic fact that in China today, there are six big trends (exhibit). That’s it. Six trends shape most of the country’s industries and drive much of China’s impact on the Western world. They are like tectonic plates moving underneath the surface. If you can understand them, the chaotic flurry of activity on the surface becomes a lot more understandable—and even predictable.

Coauthors Jeffrey Towson and Jonathan Woetzel discuss China’s six megatrends with Nick Leung, the managing partner of McKinsey’s Greater China office.

These trends move businesses on a daily basis. They’re revenue or cost drivers that show up in income statements. Deals, newspaper headlines, political statements, and the rising and falling wealth of companies are mostly manifestations of these six trends, which aren’t typically studied by economists and political analysts. In fact, we happen to think that Chinese politics or political economics are wildly overemphasized by some Westerners in China. So let’s tell a story about each of these megatrends, with some important caveats. They’re not necessarily good things. They’re not necessarily sustainable. For every one of them, we can argue a bull and a bear case. Most lead to profits or at least revenue. Some may be stable. Some lead to bubbles that may or may not collapse. We are only arguing that they are big, they are driving economic activity on a very large scale, and understanding them is critical to understanding China and where it’s headed.

via All you need to know about business in China | McKinsey & Company.

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10/04/2014

Govt declares holiday on B R Ambedkar’s birth anniversary – The Times of India

English: B. R. Ambedkar delivering a speech to...

English: B. R. Ambedkar delivering a speech to a rally at Yeola, Nasik, on 13 October 1935 (Photo credit: Wikipedia)

The Centre has declared a holiday on Monday on account of Dr B R Ambedkar‘s birth anniversary, giving about 50 lakh central government employees an extended weekend.

“It has been decided to declare Monday, the 14th April 2014, as a closed holiday on account of the birthday of Dr B R Ambedkar, for all central government offices including industrial establishments throughout India,” said an office memorandum issued by ministry of personnel.

April 14 is not a compulsory holiday for central government employees. “Every year, the Centre takes a call on whether or not to declare an off for its offices across the country,” a personnel ministry official said.

via Govt declares holiday on B R Ambedkar’s birth anniversary – The Times of India.

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10/04/2014

Chinese Exports Plummeted Last Month. Puzzled? We Have You Covered – China Real Time Report – WSJ

China’s exports were down 6.6% on year in March, confounding economists, many of whom expected growth of over 4%.

What’s going on?

First, it’s important to remember that China’s trade statistics in the first quarter are often skewed by the Chinese Lunar New Year holidays, when activity slows down in much of East Asia.

But economists expected exports to show signs of a pickup in March, the first month not affected by the holidays, which this year fell in late January and early February.

One explanation is the March data was warped by over-invoicing. This is a practice by which Chinese companies dodge capital controls by using fake export invoices to get money into the country to benefit from relatively high onshore interest rates.

Beijing cracked down on the practice last spring, but over-invoicing was still prevalent in March 2013. Since then it has decreased because of tighter regulatory controls. The government’s efforts to guide the yuan currency lower this year also has diminished the attraction of such a carry trade.

That could mean the year-ago comparison was artificially boosted, making March 2014’s numbers look poor by comparison.

“Do not worry about the export data,” wrote Louis Kuijs, an economist at RBS in Hong Kong, in a note to clients.

RBS estimates year-on-year export growth in March 2013 was inflated by 11.8 percentage points due to over-invoicing. The bank also thinks export growth on-year in March this was 5.2% adjusting for over-invoicing.

“The competitiveness of China’s manufacturing sector is still solid, allowing its export sector to benefit from global demand growth,” Mr. Kuijs wrote.

Andrew Tilton, an economist at Goldman Sachs in Asia, agreed with this assessment.

“The main reason is that the over-invoicing distortions were peaking last year around this time,” he said. Now, “the increased currency volatility and deprecation is discouraging that activity from a financial incentive perspective.”

via Chinese Exports Plummeted Last Month. Puzzled? We Have You Covered – China Real Time Report – WSJ.

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08/04/2014

Growth Not Good Enough: Chinese City Changes the Rules – China Real Time Report – WSJ

Fast growth is no longer the fast track on the official career path.  At least that’s what the city of Shenyang is trying to tell its Communist Party cadres.

According to the People’s Daily, the Shenyang government is changing its rating system for officials, lowering the scores for economic development and GDP growth while adding points for “reform and innovation” and  environmental protection (in Chinese).

Shenyang, the capital of Liaoning province and the largest city in northeastern China, used to be the home of the nation’s iron and steel industry and was best known for its forest of smokestacks and chimneys. Now the city is hoping to reduce its dependence on heavy industry and erase its reputation for soot and smog.

The newspaper said that “food and drug safety” and “public health and safety” will be added to improving people’s livelihood, increasing employment and ensuring housing security in the calculations of which officials get promoted – and which fall behind.

An official at the municipal government confirmed that the change had been made though he was unable to provide further details on the actual scoring system.

China’s Communist Party chief Xi Jinping said in November last year that China could no longer “choose its heroes according to economic growth records alone.” Improvements in daily life, social progress, environmental protection and other indicators all had to be taken into account, he added.

Premier Li Keqiang, speaking at the annual session of parliament in March, also tried to address mounting public concerns over the pollution that has accompanied economic growth by saying that China was no longer chasing fast growth at any price. He said employment was now the government’s top concern.

Chen Haibo, mayor of Shenyang, has echoed those sentiments.

“The threshold for environmental protection will be much higher this year,” he said at a meeting of the local legislature early this year.

The mayor also noted that Shenyang’s economic growth target would be 9% this year – its lowest level in over a decade. Last year, growth in Shenyang came in at 10%, down from 11% the previous year, according to the provincial government’s official news site.

China has some of the best environmental laws on the planet, but the rewards for breaking them have long outweighed the penalties. If Shenyang follows through, and other cities follow suit, it could be very good news for China’s environment.

via Growth Not Good Enough: Chinese City Changes the Rules – China Real Time Report – WSJ.

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07/04/2014

Why China Needs Such Rapid GDP Growth: More Jobs – Businessweek

As China frets about meeting its target of about 7.5 percent growth in 2014, it’s time for more stimulus. The State Council, China’s cabinet, announced plans this week to further expand railways across the country, renovate dilapidated urban housing, and provide new tax breaks for small businesses. Many analysts are expecting a return to looser credit policies this year as well.

But what China considers unacceptable levels of gross domestic product growth would be the envy of most other countries. So why do China’s leaders demand such rapid rates of economic expansion?

A clue to that is found in Premier Li Keqiang’s recent work report, China’s version of a state of the union speech. Creating enough jobs—mentioned 11 times in the document released on March 5—is what drives Chinese officials’ obsession with fast-rising GDP.

China needs high levels of growth—at least 7 percent, says Li—to ensure enough jobs for 7.2 million college grads and 10 million people flooding cities from the countryside every year. China’s leaders have set a target of producing at least 10 million jobs this year, and a record-high 13.1 million urban jobs were added last year. “Employment is the basis of people’s well-being,” Li said in the work report. “We will steadfastly implement the strategy of giving top priority to employment.”

The trouble is, new stimulus mainly means more investment-driven expansion, which already accounts for about half of the economy. That’s problematic given industrial overcapacity and soaring debt levels held by local governments and companies. And while it indeed boosts the headline GDP number, it doesn’t always create lots of jobs. Heavy industries such as steel, aluminum, and real estate construction, which have rapidly expanded particularly in the years following China’s 2009 stimulus, tend to be capital-intensive rather than labor-intensive.

The country has struggled in recent years to substantially boost the portion of its economy driven by consumption and the job-creating service sector. The plan to cut taxes may provide some support toward that goal. Unfortunately, more train tracks and urban housing may instead set China back.

via Why China Needs Such Rapid GDP Growth: More Jobs – Businessweek.

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01/04/2014

Dharavi’s once-booming leather industry losing its edge | India Insight

A busy street in Asia’s largest slum Dharavi leads to a quiet lane where Anita Leathers operates its colouring unit. As children play near shops that sell everything from mobile phones and garments to raw meat and sweets, the mood at the leather unit is sombre.

The leather business is one of the biggest contributors to the Mumbai slum’s informal economy, estimated to have an annual turnover of more than $500 million. About 15,000 small-scale industries, spread over an area of 500 acres, deal in businesses such as pottery, plastic recycling and garment manufacturing.

But the leather trade has been hit hard by increasing competition, an influx of cheap Chinese goods, rising raw material costs and labour shortages in recent years, leading to a decline in demand and dimming prospects of the once-flourishing business.

At Anita Leathers, which has been colouring and supplying leather sheets to merchants in Mumbai for more than three decades, annual sales fell from 5 million rupees ($83,000) in 2007 to 500,000 rupees ($8,300) last year. This has forced its owner Babu Rao to put some workers on paid leave.

“In every season our sales are falling, there is no business,” said Rao as he chewed tobacco in his Dharavi office where samples of coloured leather were displayed on the wall. “Even retailers are suffering. If customers come, they will buy bags; if bags are not sold, who will buy leather from us?”

Dharavi has earned its distinction among slums because of the entrepreneurial skills of its estimated 1 million residents. While no official statistics are available for the slum, census data shows India’s slum population grew by a quarter to 65 million between 2001 and 2011. Critics have disputed these numbers.

Leather production was one of the first industries to be established in Dharavi when Muslim tanners migrated from Tamil Nadu to Mumbai in the 19th century. But they had to move to the outskirts because the manufacturing process was considered unsuitable for the growing business centre in south Mumbai, according to a 2010 book RE-Interpreting, Imagining, Developing Dharavi.

Leather manufacturing, polishing, colouring and retail became dominant after tanneries were banned in 1996 because of pollution concerns. Still, most of these businesses are struggling.

Also affecting trade is India’s slowing economic growth, rising interest rates and high inflation, which have weakened consumer sentiment in Asia’s third-largest economy.

via Dharavi’s once-booming leather industry losing its edge | India Insight.

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31/03/2014

10 Vital Things Politicians Should Talk About – WSJ

From: http://blogs.wsj.com/indiarealtime/2014/03/31/10-vital-things-politicians-arent-talking-about/?mod=irt&mod=indiablog

Indian politics is disconnected from what India actually wants. A week before the largest democracy on Earth goes to the polls, here are 10 things the electorate is talking about even though most politicians aren’t.

1.     Unfulfilled Aspiration

If there is one thing two decades of liberalization has given us, it was a sense of hope that things can get better, but not at any cost. People want cheaper food, not cheap food. They want cheaper education, not cheap education. When people in villages have a little money, they prefer to send their children to a private school where there children are taught in English over public school where they learn in Hindi, staff are often absent and standards are low. People across India are aspirational.

They will give their vote to whoever taps into a person’s desire for a better future.

2.     Employability

India’s problem is no longer about employment, it is about employability. The trade association, National Association for Software and Services Companies says 75% of technical graduates and 80% of general studies graduates don’t have the skills to get a technical or call center jobs in a country where more than half of the 1.2 billion population is under the age of 25.

Young people want their lives to get better through the jobs they get. But we have to improve their skill sets first. The government has to take a step back and look at the lack of standards and quality that has overtaken our education system. Why are people still flocking to unaccredited colleges and institutes? Because they don’t have a better choice. It is easy to see where their frustrations come from. Unless someone fixes the lack of skills, a demographic nightmare is on its way.

3.     Food wastage and underweight children

Let us connect the dots between India’s inability to build granaries and cold storage centers and the hunger that exists in large parts of the country. India has the largest number of underweight and malnourished children in the world but it also wastes as much wheat each year  as Australia produces – 21 million tonnes.

People want someone to say they will fix this imbalance. Has a single candidate talked about this? You cannot argue that India cannot fix these things in the 21st century.

4.     Drinking Water

In 2012, the Water Resources Ministry essentially told Parliament that in time,groundwater will not be fit for human consumption. The aquifers are drying up and underground water is increasingly polluted or going saline. With India being the world’s largest user of ground water, there is a huge scarcity in the offing.

Add to that, 80% of untreated sewage in India flows straight to into drinking water sources such as rivers and groundwater.  Be it farmers or people living in the cities, access to clean water is by far one of the biggest issues for people across the country. There are ways to address this, such as rain water harvesting, but has a politician promised that on a war footing we can solve it?

5.     Electricity

Three hundred million Indians have never had access to electricity. So when theblackout in 2012 plunged nearly 600 million in darkness – for at least about half of them, it was just another day.

Meanwhile, in a coal abundant nation, all we have heard about energy in the last two years is that the mismanagement of the allocation of coal blocks to private companies resulted in a presumed loss of 1.85 trillion rupees ($31 billion) to the exchequer.

6.     Healthcare

India has barely one hospital bed per 1,000 population compared to the global average of nearly three beds per 1,000. We have one operating theater per 1,000 people. This at a time when the World Health Organization estimates that India is one of the few countries in the world where people have to pay the maximum proportion of their wages for private healthcare – and the Harvard School of Public Health calculates that the country’s economic losses due to non-communicable disease between 2012 and 2030 will be $6.2 trillion. There is an unprecedented crisis of public health and it cannot be resolved in a hurry.

7.     The Disease Burden

Our disease burden is one of the largest in the world. We lost 9.2 million productive years to heart disease in 2000. By 2030, the number is likely to rise to 17.9 million productive years. There are no immediate solutions for India and it spells potentially huge economic losses.

8.     Civilian Safety

Gun violence is one of the biggest killers in India. Nearly 40 million Indians own guns. Barely 15% of these are registered weapons. India has the second largest civilian ownership of guns, second only to the United States. Around 80% of all murders in India are carried out using these illegal guns. This is one of the biggest security challenges of India – but it is hardly addressed because many of those guns are connected to politics and politicians.

9.     Outdated Justice System

There are 30 million court cases pending in courts across India and a backlog of 66,000 cases in the Supreme Court. The system is sluggish. People don’t feel there is a justice system that can back them up or give them any sense of closure. India needs at least 75,000 new judges in the next 35 years and Indians want a government that can create more courts and hire more judges.

  1.  Inefficient bureaucracy

Communicating with an Indian bureaucrat is a terrible experience. They are unapproachable. You have to argue for your rights. Citizens want a voice and any way for them to be heard now is entirely absent.

Other than the elections, there is no other way for the electorate to show their frustration towards a system that is willfully unresponsive; that does not care about accountability. There is incredible frustration here – people, and businesses, are not willing to put up with such inefficiency much longer.

Hindol Sengupta is a senior editor at Fortune India magazine and author of “100 Things To Know And Debate Before You Vote” (Harper Collins). Follow India Real Time on Twitter @WSJIndia

 

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