Posts tagged ‘Beijing’

03/02/2015

Mines Shut as China Burns Less Coal – China Real Time Report – WSJ

Yu County, a sprawling mountainous area in China’s northern industrial province of Hebei, is known for its ancient temples and coal mines. These days, the temples remain, but the mines are vanishing. As the WSJ’s Chuin-Wei Yap and Rhiannon Hoyle report:

“We used to have around 300 coal mines in the area. Now it’s down to 70-plus,” said a manager of a local pit who identified himself only as Mr. Cheng. Shrinking profit margins and a failure to meet safety standards have led many to close, Mr. Cheng said. His own midsize company, Kanghe Coal Mining Co., was swallowed by a larger competitor, state-owned Kailuan Group Co., last year.

What is happening in Yu County is an illustration of the bleak times for the global coal industry. Tougher environmental standards coupled with shrinking demand have led to the closing of mines across China and sent coal prices to their lowest in six years. China’s coal output likely fell 2.5% in 2014, the first annual decline in 14 years, the China Coal Industry Association said last week. And while full-year data aren’t yet available, official statistics show China consumed 1.1% less coal in the first three quarters of 2014 than a year earlier.

via Mines Shut as China Burns Less Coal – China Real Time Report – WSJ.

03/02/2015

China says 90 percent of cities failed to meet air standards in 2014 | Reuters

Nearly 90 percent of China’s big cities failed to meet air quality standards in 2014, but that was still an improvement on 2013 as the country’s “war on pollution” began to take effect, the environment ministry said on Monday.

The Ministry of Environmental Protection said on its website (www.mep.gov.cn) that only eight of the 74 cities it monitors managed to meet national standards in 2014 on a series of pollution measures such as PM2.5, which is a reading of particles found in the air, carbon monoxide and ozone.

Amid growing public disquiet about smog and other environmental risks, China said last year it would “declare war on pollution” and it has started to eliminate substandard industrial capacity and reduce coal consumption.

In 2013, only three cities – Haikou on the island province of Hainan, the Tibetan capital of Lhasa and the coastal resort city of Zhoushan – met the standards.

They were joined in 2014 by Shenzhen, Huizhou and Zhuhai in southeast Guangdong province, Fuzhou in neighboring Fujian and Kunming in the southwest.

Of the 10 worst-performing cities in 2014, seven were located in the heavy industrial province of Hebei, which surrounds the capital, Beijing, the ministry said. The cities of Baoding, Xingtai, Shijiazhuang, Tangshan, Handan and Hengshui, all in Hebei, filled the top six places.

via China says 90 percent of cities failed to meet air standards in 2014 | Reuters.

31/01/2015

China’s Provinces Lower Their Sights After Most Miss Economic Targets – China Real Time Report – WSJ

Most Chinese provinces missed their economic growth targets for last year, according to figures published Friday, in what would only recently have been an unthinkable event but is another sign of the economy’s rapid deceleration.

Out of 31 provinces and province-like administrative regions, 27 missed their marks, while one met its target and three have yet to report their performance, according to the Beijing News, a state-run newspaper.

Growth targets have been seen for decades as ironbound objectives, by Chinese officialdom, from Beijing on down. Provinces have typically competed to outdo the national target—which has ranged around 7% to 8%–setting their own goals higher and then making sure they exceed them, and with good reason: Growth factors heavily in the performance assessments for mayors, governors and other officials seeking promotions to higher office.

via China’s Provinces Lower Their Sights After Most Miss Economic Targets – China Real Time Report – WSJ.

31/01/2015

5 Things to Know About Turkey and the Chinese Uighurs – WSJ


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1 TURKISH NATIONALISTS CONSIDER UIGHURS KIN.

Many Turkish nationalists regard the Uighurs, who speak a Turkic language, as part of a broad family of ethnic Turks spread across Eurasia. They have lobbied successive Turkish governments to offer refuge to those fleeing Chinese rule and to allow Uighurs to campaign against Beijing’s policies from Turkish soil.

2 TURKEY HAS SHELTERED UIGHUR LEADERS SINCE AT LEAST THE 1950S.

Turkey offered shelter in the 1950s to Isa Yusuf Alptekin, a Uighur nationalist who was a leader of the East Turkestan Republic established in southern Xinjiang from 1933 to 1934. A small park named after him can be found in Istanbul, near the Blue Mosque in the city’s historic center.

3 TURKISH AUTHORITIES HELPED ESTABLISH UIGHUR COMMUNITIES IN TURKEY IN 1965.

In 1965, Turkey offered sanctuary to a group of some 200 Chinese Uighurs who had escaped on foot to Afghanistan. Turkish authorities airlifted them out of Kabul and settled them mostly in the central Turkish city of Kayseri, where many still live today.

4 UIGHURS FLEEING CHINA OFTEN HEAD FOR ISTANBUL.

The Turkish government doesn’t provide official statistics for the number of Uighurs in Turkey. Uighur groups say there are about 20,000, many of whom have never been to China. About 1,500 are in Kayseri, while most others live in Istanbul, especially in the Zeytinburnu neighborhood near old town. There are also hundreds of thousands of Uighurs living in former Soviet Central Asia

5 THE UIGHUR ISSUE MAKES TURKEY-CHINA RELATIONS A DELICATE BALANCE.

After inter-ethnic rioting in 2009 left at least 156 dead in Urumqi, the capital of Xinjiang, Turkey’s then Prime Minister — now President — Recep Tayyip Erdogan described the violence as “genocide,” prompting an angry response from Beijing. In 2012, with relations improving, Mr. Erdogan made his first stop in Xinjiang during an official visit to China.

via 5 Things to Know About Turkey and the Chinese Uighurs – WSJ.

28/01/2015

Car ownership tops 154 million in China in 2014 – Xinhua | English.news.cn

China added a record 17 million new cars on the road in 2014 as car ownership reaches 154 million, said the Ministry of Public Security on Tuesday.


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Strong demand for cars has helped the automobile replace the motorcycle as the main method of transportation. Cars made up 58.6 percent of total motor vehicles, a sharp rise from 43.9 percent five years ago.

The number of people obtaining driving licenses also ballooned from 219 million in 2013 to 247 million as of the end of 2014, said the ministry, adding 29.7 million drivers have fewer than one year’s driving experience.

Of the 35 cities which have more than one million cars each, ten have more than two million cars, including Beijing, Chengdu, Shenzhen, Tianjin, Shanghai, Guangzhou and Chongqing.

The ministry said the number of passenger cars has reached 117 million, 90 percent of which are private cars. Beijing has the highest private car penetration, with 63 private cars for every 100 households, while the average is 25 private cars for every 100 households.

Carmakers have enjoyed strong sales over the years, with more middle-class customers placing orders for their first cars. But with frequent traffic jams, it is yet to be seen whether cars can still ride the booming tide in the years to come. More local governments have begun to limit car use, among them eight cities have quotas for new car plates.

via Car ownership tops 154 million in China in 2014 – Xinhua | English.news.cn.

28/01/2015

China plans to set 2015 growth target at ‘around 7 percent’ – sources | Reuters

China plans to cut its growth target to around 7 percent in 2015, its lowest goal in 11 years, sources said, as policymakers try to manage slowing growth, job creation and pursuing reforms intended to make the economy more driven by market forces.

The growth target, which is set to be announced by Premier Li Keqiang at the annual parliament session in March, was endorsed by top party leaders and policymakers at a closed-door Central Economic Conference in December, said a number of people with knowledge of the outcome of meeting who spoke to Reuters.

The target, which is in line with market expectations, has not been previously reported.

“This year’s economic growth target will be around 7 percent, but the 7 percent should be the bottom line,” said one of the sources, an influential economist who advises the government.

via Exclusive: China plans to set 2015 growth target at ‘around 7 percent’ – sources | Reuters.

26/01/2015

1.39 million Chinese receive legal assistance – Xinhua | English.news.cn

The Chinese government provided free legal aid services for nearly 1.39 million people in 2014 to help them safeguard their rights, the Economic Daily reported on Monday.

More than one-third of them are migrant workers who are vulnerable to job dismissal and withheld wages and know little about the legal system, the report said, quoting the Ministry of Justice.

The ministry’s statistics showed that about 10 percent more migrant workers than last year said they would like to seek legal assistance if their rights are violated.

Legal service centers have been springing up in streets, communities and prisons across China. The number of new legal service centers in 2014 totaled 70,000, the ministry said. The country will guide more legal service agencies to provide assistance to suspects and defendants in prisons.

It also promised to lower the eligibility standard for people to receive legal assistance and expand services for military personnel.

via 1.39 million Chinese receive legal assistance – Xinhua | English.news.cn.

26/01/2015

Govt sells off premium cars- Chinadaily.com.cn

The first group of premium government automobiles to be auctioned off amid the ongoing frugality campaign have gone under the hammer in Beijing.

Govt sells off premium cars

According to Zonto Auction, the 106 vehicles it sold on Sunday were from six central government departments including the China Insurance Regulatory Commission, China Securities Regulatory Commission and State Bureau for Letters and Calls.

The cars were without plates, which would have to be supplied by the purchasers.

A total of 505 bidders from around the country joined the auction, which brought in proceeds of 6.6 million yuan ($980,000).

The highest bid went to a Toyota cross country vehicle for 200,000 yuan.

Li Guanwen, 40, of Hebei province, bought a Skoda bus for 160,000 yuan.

“The market value of this bus is around 500,000 yuan,” said Li.

“I think the reform of official vehicles is a very good thing and is a very good approach to remind civil servants to cut costs and to serve the public well.”

In November 2013, public agencies were told to cut their vehicle fleets, as well as reduce receptions and overseas trips. The use of all vehicles, except those required for law enforcement, emergency duties and essential public services, were scrapped or severely reduced.

via Govt sells off premium cars[1]- Chinadaily.com.cn.

26/01/2015

Urbanisation: The great sprawl of China | The Economist

IN ANCIENT times, Beijing built towering city walls that helped to prevent undefendable sprawl. These days it builds ring roads, stretching built-up areas ever outwards. Near Langfang, a city halfway between the capital and its giant neighbour Tianjin, diggers dip their heads and cement mixers churn, paving the next circular expressway. When complete, the 900km (560-mile) Seventh Ring Road will surround Beijing at such a distance that most of it will run through the neighbouring province of Hebei, to which Langfang belongs, rather than the capital itself. Parts of it are 175km from Beijing’s centre (see map).

The Seventh Ring Road (really the sixth, but for obscure reasons there is no First Ring Road) is emblematic of modern Chinese cities: giant, sprawling and dominated by cars. Even before it is completed in a year or two (and its use assessed), another, even longer, orbital is being plotted. Like many of China’s infrastructure projects, the new road displays engineering prowess. The country’s successes in urban planning are less evident.

Breakneck urban growth has propelled China’s rise in the past three decades. Migration from the countryside has helped expand the urban population by 500m—the biggest movement of humanity the planet has seen in such a short time. Over half the population is now urban. Some live in the basements of apartment blocks, or in shacks built in courtyards. But Chinese cities have mostly avoided the squalor of many developing-world ones.

The result of this urban growth is not just that China has many large cities—more than 100 of them have more than a million people—but that some are supersized. At the end of last year the government at last acknowledged the special nature of these, introducing the term “megacity” to describe those whose populations, including that of their satellite towns, exceed 10m. Of the 30 cities worldwide that match this definition, six are in China: Shanghai (23m), Beijing (19.5m), Chongqing (13m), Guangzhou (12m), Shenzhen (11m) and Tianjin (11m). A further ten Chinese cities contain 5m-10m people. At least one of these, Wuhan, will pass 10m within a decade.

China depends on its cities for economic growth and innovation. But it is failing to make the most of its largest conurbations. Medium-sized agglomerations of 1.5m-6.5m are outperforming bigger ones in terms of environmental protection, economic development, efficient use of resources and the provision of welfare, says McKinsey, a consultancy. Residents are beginning to question whether their quality of life, which for many has improved by leaps and bounds, will continue to do so. The giant cities are polluted, pricey and congested. Average travel speed in Beijing is half that in New York or Singapore.

Most of China’s cities share the legacy of a central-planning mindset in which all life and work was centred on a single “work unit”. Cities were “built as producer centres rather than consumer ones”, says Tom Miller, author of “China’s Urban Billion”. Their planning focus was on industry; not commerce, services or even community. The work units are gone but the tradition of dehumanising architecture persists. Most new developments are built on giant blocks 400-800 metres long.

China has swapped its socialist dream for an American-style one of cars and sprawling suburbs. The number of cars has increased more than tenfold in the past decade, to 64m. The combination of superblocks and car-lust often adds up to a giant jam. Large blocks mean fewer roads to disperse traffic. Guidelines require a main urban road every 500 metres and an eight-lane road every kilometre. In the case of Beijing, a ring and radial system was also created, with the aim of providing speedy road access in and out of town, bypassing city traffic and linking satellite towns. Not a bad idea, except that workplaces have remained concentrated in the centre. The expressways funnel traffic into gridlock.

The ill-defined ownership rights of farmers have encouraged the sprawl. Officials can expropriate rural land easily and at little cost. Doing so is far cheaper than redeveloping existing urban areas. Industrial land is heavily subsidised, so factories have remained in urban areas rather than move to cheaper sites on city outskirts. The amount of land classified as urban has more than doubled since 2000—40% of new urbanites became so when cities engulfed their villages.

Sprawl has resulted in populations becoming more thinly spread. China’s megacities are less dense than equivalents elsewhere in the world (see chart). Guangzhou could contain another 4m people if it was as packed as Seoul in South Korea; Shenzhen could be larger by 5m. Extending outward takes a toll: slow commutes from far-flung suburbs increase fuel consumption and cut productivity.

Massive spending on infrastructure has hugely improved connections within and between cities. Since 1992 China has spent 8.5% of its national income on infrastructure each year, far more than Europe and America (2.6%) or India (3.9%). Yet city residents still complain. Subways are often built as engineering projects, with stops at set distances, rather than where people want them to be, says Sean Chiao of Aecom, an infrastructure firm. Buses, metros and rail networks are poorly integrated because separate agencies manage them.

via Urbanisation: The great sprawl of China | The Economist.

24/01/2015

China’s Risks in Shedding Debt-Fueled, Investment-Led Growth – Businessweek

Few Chinese leaders are as revered as Deng Xiaoping. His late-1970s modernization drive led to an unrivaled run of high-speed growth. Chinese President Xi Jinping, who has big reform ambitions of his own, often evokes the memory of the paramount leader, who died in 1997. In 2012, shortly before he assumed the top government job, Xi signaled his own liberalization agenda by retracing Deng’s famous tour in 1992 of southern Guangdong province to promote economic reform. Last August, in a speech marking the 110th anniversary of the revolutionary leader’s birth, Xi, like his predecessors, recycled Deng-era slogans such as “socialism with Chinese characteristics.”

Is China Coming Down to Earth?

Deng’s legacy as the architect of Chinese modernity rides on a record of 10 percent average annual growth from 1980 through 2012. Xi oversees an economy that’s decelerating and that grew 7.4 percent in 2014, the weakest performance since 1990, when it grew 3.8 percent. The International Monetary Fund predicts that Chinese expansion will steadily decline to 6.8 percent this year and 6.3 percent in 2016, when archrival India is expected to eclipse China at 6.5 percent. All of which raises a question unthinkable a few years ago: Is the China growth miracle winding down for good?

China’s transformation from an agrarian backwater to a $9.2 trillion economy with globally competitive companies, including Xiaomi, Huawei, Baosteel, and Alibaba, has been remarkable. And plenty of countries would be thrilled with 6 percent growth. Yet China is also home to income inequality on par with that of Nigeria and Mexico, a rapidly aging populace, and a world-class environmental crisis. Years of politically driven investment with diminishing returns have led to too much debt and industrial overcapacity, as well as ghost cities with unfinished hotels and absurd ambitions. (You can soon visit Tianjin’s replica of Manhattan, provided you like your replica cities free of actual humans.) Loose credit conditions contributed to an unsustainable six-month, 63 percent stock price increase, prompting regulatory authorities on Jan. 19 to order the nation’s three biggest brokerages to stop adding new margin-trading accounts. The Shanghai Composite index tumbled 7.7 percent on Jan. 19, the biggest one-day drop since the financial crisis in 2008.

The total debt of the world’s No. 2 economy is roughly $18 trillion, or about 200 percent of GDP

China’s investment spending binge is packing less of a punch than it used to, according to the World Bank. From 1991 to 2011, it took $3.60 of investment to generate $1 of GDP growth. At the end of 2012 it required $5.40. Meanwhile, the country’s total debt—government, corporate, and household—is now roughly $18 trillion, or about 200 percent of total gross domestic product. “We’ve got the biggest debt bubble that the world has ever seen, and credit is continuing to grow [about] twice as fast” as the Chinese economy, says credit analyst Charlene Chu, a partner with Autonomous Research Asia in Hong Kong. Chinese officialdom is keenly aware of the problem. The growth model that delivered productivity spurts in the late 1990s—powered by reforms of state-owned enterprises and new technology brought in by foreign investors after the country’s admission into the World Trade Organization in the early 2000s—has lost its edge. As early as 2007, China’s then-Premier Wen Jiabao described his economy to the National People’s Congress as “unstable, unbalanced, uncoordinated, and unsustainable.”

Michael Pettis, a finance professor at the Guanghua School of Management at Peking University, says the Chinese experience has much in common with Brazil in the 1960s, the Soviet Union in the 1970s, and Japan in the 1980s. All resorted to what economists call the financial repression of households to accelerate development. Family savings were channeled primarily into bank accounts with regulated and below-market deposit rates. Banks then recycled the capital into low-interest loans for businesses to build factories at home and to export abroad.

When it works, and it did stupendously for China, the economy hits the fast lane and incomes grow so fast that consumers don’t mind getting low returns on their savings—or being ruled by an unaccountable one-party state. Unfortunately, research by Pettis shows, “every investment-led growth miracle in the last 100 years has broken down.”

Xi and Premier Li Keqiang are trying to avoid that fate by guiding China onto a more sustainable path that would bolster the role of consumer spending (about 34 percent of GDP, vs. 68 percent in the U.S. in 2013, the World Bank reports) and shift the economy to a more services-oriented model. They say they’ve mapped out more than 300 reforms that over time will reduce state intervention in the economy and energy price controls that favor manufacturers; the changes will also improve the social safety net and encourage market-driven deposit rates to get Chinese families saving less and spending more.

via China’s Risks in Shedding Debt-Fueled, Investment-Led Growth – Businessweek.

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