Posts tagged ‘Beijing’

07/11/2014

Foreign policy: Showing off to the world | The Economist

THE factories have closed down for a few days, and millions of cars have been ordered off the roads. Clear blue skies appearing over a usually smog-choked Beijing always mean one thing: a big event is about to get under way.

From November 10th President Xi Jinping will welcome world leaders to this year’s Asia-Pacific Economic Co-operation (APEC) summit. Not since the Olympics in 2008 have so many leaders gathered in the capital, and they will include the heads of the United States, Russia and Japan. It is a defining moment for Mr Xi’s foreign policy. Having established himself at home as China’s most powerful leader since Deng Xiaoping, he now seems to want to demand a bigger, more dominant and more respected role for China than his predecessors, Deng included, ever dared ask for.

Respect begins by putting on a good face to guests. Chinese bullying over disputed maritime claims has done much to raise tensions in the region. But now Mr Xi appears to be lowering them. In particular, China’s relations with Japan have been abysmal. The government has treated Japan’s prime minister, Shinzo Abe, with both venom and pettiness, implying he is a closet militarist. The relationship had sunk to such a low that it will count as notable progress if Mr Xi shakes Mr Abe’s hand—even if he does little more—at the summit.

On November 11th and 12th, Mr Xi will host a state visit in Beijing for Barack Obama. It is the second summit with the American president, following one at Sunnylands in California in 2013. It will be a good show, with a scenic walk and all that. But the substance appears less clear. At the time of Sunnylands, there was much Chinese talk of a “new type of great-power relationship” with America. Yet since it implies a diminished role for America, at least in Asia, Mr Obama does not seem inclined to go along. The two men appear likely to co-operate in a few areas, including climate change, trade and investment. They will agree to a bit more communication over respective military movements in and over the seas near China. But hopes that cordiality at Sunnylands might lead the relationship to blossom may come to little.

In truth, Mr Xi does not have much respect left for Mr Obama; the Chinese dismiss him as weak-willed in foreign policy. And so much of Mr Xi’s ambition lies elsewhere. Above all, the dream is to return China to its rightful place in a world in which, according to Bonnie Glaser of the Centre for Strategic and International Studies, a Washington think-tank, “China will be at the centre, and every other nation will have to consider China’s interests.”

This attitude is most familiar to China’s neighbours in the South China Sea and East China Sea. China has upset the Philippines by grabbing a disputed reef; Vietnam, by moving an oil rig into contested waters; Japan, by challenging its control over uninhabited islets; and even South Korea which, though on good terms, was concerned along with others when China declared an “Air Defence Identification Zone” over the East China Sea, demanding that planes inform it when entering it.

Yet Mr Xi has also courted friends under the catchphrase of “peaceful development”. He has pushed multilateral initiatives, including a new Asian Infrastructure Investment Bank, which many of China’s neighbours, including India, have signed up to. A New Development Bank has also been set up with fellow “BRICs”—Brazil, Russia, India and South Africa.

One of Mr Xi’s playmates is President Vladimir Putin. China and Russia have a history of mutual distrust, but Mr Xi’s first trip abroad as president, in March 2013, was to Moscow. Since then the two countries have struck a long-stalled gas deal and, according to Kommersant, a Russian newspaper, a pact on cyber-security. China backs Russia’s pro-Syrian stand in the UN Security Council and has refused to condemn Russia’s territorial incursions in Crimea and eastern Ukraine—though it loves to preach non-interference.

A strong thread that binds the two countries is American dominance in international affairs. “No country”, said Mr Xi at a security summit earlier this year to which Mr Putin was invited, “should attempt to dominate regional security affairs or infringe upon the legitimate rights…of other countries.” Mr Xi did not name America, but a month earlier Mr Obama had in Tokyo emphasised that America’s security pact with Japan extended to the Japan-controlled Senkaku islands, which China claims and calls the Diaoyu.

Is Mr Xi’s foreign policy succeeding? Only in parts. China’s maritime assertiveness has pushed some neighbours closer to Japan and America. But for long China will remain Asian nations’ biggest trading partner. It is busy pursuing regional and bilateral trade agreements while an American-led trade initiative, the Trans-Pacific Partnership, is bogged down. At APEC Mr Xi will seek to build on those economic relationships. And, given China’s heft, by and large he will succeed.

via Foreign policy: Showing off to the world | The Economist.

07/11/2014

Myopia: Losing focus | The Economist

SPARKLY, spotted or Hello Kitty: every colour, theme, shape and size of frame is available at Eyeglass City in Beijing, a four-storey mall crammed only with spectacle shops. Within half an hour a pair of prescription eyeglasses is ready. That is impressive, but then the number of Chinese wearing glasses is rising. Most new adoptees are children.

In 1970 fewer than a third of 16- to 18-year-olds were deemed to be short-sighted (meaning that distant objects are blurred). Now nearly four-fifths are, and even more in some urban areas. A fifth of these have “high” myopia, that is, anything beyond 16 centimetres (just over six inches) is unclear. The fastest increase is among primaryschoolchildren, over 40% of whom are short-sighted, double the rate in 2000. That compares with less than 10% of this age group in America or Germany.

The incidence of myopia is high across East Asia, afflicting 80-90% of urban 18-year-olds in Singapore, South Korea and Taiwan. The problem is social rather than genetic. A 2012 study of 15,000 children in the Beijing area found that poor sight was significantly associated with more time spent studying, reading or using electronic devices—along with less time spent outdoors. These habits were more frequently found in higher-income families, says Guo Yin of Beijing Tongren Hospital, that is, those more likely to make their children study intensively. Across East Asia worsening eyesight has taken place alongside a rise in incomes and educational standards.

The biggest factor in short-sightedness is a lack of time spent outdoors. Exposure to daylight helps the retina to release a chemical that slows down an increase in the eye’s axial length, which is what most often causes myopia. A combination of not being outdoors and doing lots of work focusing up close (like writing characters or reading) worsens the problem. But if a child has enough time in the open, they can study all they like and their eyesight should not suffer, says Ian Morgan of Australian National University.

Yet China and many other East Asian countries do not prize time outdoors. At the age of six, children in China and Australia have similar rates of myopia. Once they start school, Chinese children spend about an hour a day outside, compared with three or four hours for Australian ones. Schoolchildren in China are often made to take a nap after lunch rather than play outside; they then go home to do far more homework than anywhere outside East Asia. The older children in China are, the more they stay indoors—and not because of the country’s notorious pollution.

via Myopia: Losing focus | The Economist.

07/11/2014

China, Japan set aside isle row, paving way for leaders to meet | Reuters

China and Japan agreed on Friday to work on improving ties and signaled willingness to put a bitter row over disputed islands on the back burner, paving the way for their leaders to meet at an Asian-Pacific summit next week.

The agreement, ahead of an expected ice-breaking chat between Japanese Prime Minister Shinzo Abe and Chinese President Xi Jinping at the gathering in Beijing, signals a thaw in ties between the world’s second- and third-biggest economies.

Relations have been soured over the past two years by the territorial row, regional rivalry and the bitter legacy of Japan’s wartime occupation of China.

Abe said the two sides were making final arrangements for one-on-one talks, although neither he nor China’s foreign ministry confirmed that the talks were set.

“Both Japan and China are coming to the view that it would benefit not just the two countries but regional stability if a summit is held,” he told a TV program.

via China, Japan set aside isle row, paving way for leaders to meet | Reuters.

05/11/2014

China Service and Manufacturing Sectors Slowing, Reports Beijing – Businessweek

In another sign that China’s economy is downshifting, an index released on Monday showed China’s service sector growth slowing in October to a nine-month low. The bad news followed Saturday’s poor showing for manufacturing, which grew at its slowest pace in five months.

Manufacturing in China expanded at its slowest pace in five months

The service reading, issued by the National Bureau of Statistics and China Federation of Logistics and Purchasing in Beijing, fell to 53.8, from 54 in September. Manufacturing came in at 50.8, down from 51.1 the month before. (Above 50 shows expansion.) The economy “still faces some headwinds,” Beijing said in a statement on Saturday.

In October, China’s statistics bureau announced that gross domestic product grew 7.3 percent in the third quarter, its slowest pace since the global financial crisis. “The momentum looks weak,” warned Hua Changchun, a China economist at Nomura Holdings in Hong Kong, reported Bloomberg News on Nov. 3.

via China Service and Manufacturing Sectors Slowing, Reports Beijing – Businessweek.

28/10/2014

Talks gather pace on sale of Indian patrol vessels to Vietnam | Reuters

Talks are gathering pace on the sale of Indian naval patrol vessels to Vietnam, an Indian official said, the first significant military transfer to Hanoi as it improves its defences in the South China Sea where it is embroiled in a territorial dispute with China.

Vietnam's Prime Minister Nguyen Tan Dung (C) shakes hands with his Indian counterpart Narendra Modi (R) as Dung's wife Tran Thanh Kien looks on during Dung's ceremonial reception at the forecourt of Rashtrapati Bhavan in New Delhi October 28, 2014.  REUTERS/Adnan Abidi

The four patrol ships will be provided to Vietnam under a $100 million defence credit line and represent a push by the nationalist government in New Delhi to counter Beijing’s influence in South Asia by deepening ties with old ally Vietnam.

Vietnamese Prime Minister Nguyen Tan Dung held talks with counterpart Narendra Modi on Tuesday, the first meeting since the Indian leader took office in May, promising to turn the country into an economic and military power.

An Indian government official said negotiations for the patrol craft had gathered pace since the credit line was announced last month during the visit of India’s president to Vietnam.

“We expect to see progress on this fairly early as negotiations are continuing between the Vietnamese and our defence suppliers,” the government official involved in discussions said.

Vietnam wants the craft for surveillance off its coast and around its military bases in the Spratly island chain in the South China Sea where it is building a credible naval deterrent to China with Kilo-class submarines from Russia.

Claims by an increasingly assertive China over most of the energy-rich sea have set it directly against U.S. allies Vietnam and the Philippines. Brunei, Taiwan and Malaysia also claim parts of the waters.

Beijing’s placement of an oil rig in disputed waters earlier this year infuriated Vietnam but the coastguard vessels it dispatched to the platform were each time chased off by larger Chinese boats.

Since then, the two sides have sought to repair ties and on Monday, top officials agreed to use an existing border dispute mechanism to find a solution to the territorial dispute.

Dung said Vietnamese defence cooperation with India was the pillar of their strategic partnership.

via Talks gather pace on sale of Indian patrol vessels to Vietnam | Reuters.

26/10/2014

Height discrimination: The rise of China | The Economist

WHEN two security guards in Dalian in north-east China got their first month’s pay packet earlier this year, they questioned why each received different amounts for identical work. The company responded that one man was 5cm (two inches) taller than his peer. Workers over 180cm earn more, they said, because bigger guards make people feel safer.

Stature is often a desirable attribute of guards, but in China height requirements are routinely specified for jobs which seem to have no need of them. To study tourism and hotel management at Huaqiao University in Fujian province, men topping 170cm are favoured, and women over 158cm. A post as a female cleaner in Beijing is advertised to women of at least 162cm. Many companies are less explicit about such demands than they used to be, but candidates often list height (and weight) on their curricula vitae.

The height premium is most pronounced for women, according to a study from Huazhong University of Science and Technology. It found that each centimetre above the mean adds 1.5-2.2% to a woman’s salary, particularly among middle- and high-wage earners. A group at China University of Political Science and Law is working on a draft law against employment discrimination for height and other physical characteristics.

Ever more Chinese are rising above such constraints, however. A 45-year-old man in China today is around 5cm taller than 30 years ago, according to the RAND Corporation, a think-tank. Soldiers are growing too tall for the diminutive tanks favoured by the People’s Liberation Army; in 2010 the government raised by 10cm the height under which children in China travel free on trains (a rare scheme that benefits the small).

Greater heights mostly reflect greater incomes. Richer people tend to eat more and live in cleaner, better homes. Meat consumption per person has increased more than fourfold since 1980. Infant mortality is less than a tenth of what it was 60 years ago. Household size has also helped. Historically people from big families have been shorter (not just in China) because food supplies must stretch further. In China the birth rate fell sharply from the 1970s nationwide.

But there are differences across the country which partly reflect the uneven benefits of the economic boom. Eighteen-year-olds from the richest cities are on average 7-8cm taller than those from the poorest ones. The height gap between prosperous and impoverished rural areas is similar. Southerners have long been shorter than northerners. Although the difference between rural and urban heights has narrowed since 1975, other discrepancies persist. The World Health Organisation says around 20% of children in poor rural areas are “stunted”, a common indicator of chronic malnutrition. This compares with 2.5% of city children. Employers’ preference for high and mighty staff exacerbates that inequality. It is time they grew up.

via Height discrimination: The rise of China | The Economist.

26/10/2014

Electricity: Generational shift | The Economist

MUCH of what China has achieved in the past three decades—its impressive economic growth, the rise of its global stature and the considerable improvement of living standards for hundreds of millions of people—is attributable to one decision: ditching the Maoist model of central-planning that had shackled the economy. Yet some important industries have yet to embrace the market. Power generation is one. As China struggles to reconcile its soaring energy demand with its need to clean up an increasingly toxic environment, reform is becoming more urgent.

China knows it must reduce its reliance on dirty coal and increase its use of (more expensive) renewable energy. Of the new power-generating capacity that China built last year, renewables such as wind and solar power for the first time accounted for more than the share made up of fossil fuels and nuclear energy.

China wants to satisfy the surging electricity demands of its increasingly urban population and to keep its industries running smoothly. It does both reasonably well and blackouts are rare. But officials fret about how grumpy—and vocal—people are becoming about the poisonous air that envelops so many Chinese cities. (An annual international marathon race, pictured above, took place in Beijing on October 19th in air that was nearly 14 times more polluted than the safety limit recommended by the World Health Organisation.) China is aware that its standing abroad will partly depend on its efforts to limit carbon emissions. This will involve weaning itself off coal, which supplies nearly 80% of its energy.

Progress is being hampered by a largely unreformed power industry dominated by large state-owned enterprises (SOEs) which operate under a mix of rigid planning, secrecy and poor regulation. Power suppliers have too little incentive to compete on price, efficiency or greenness. Two international NGOs, the World Wildlife Fund and the Energy Transition Research Institute, describe the SOEs that control all transmission and distribution and most non-renewable generation as “unregulated corporate monopolies”. Their bosses are usually appointed by the central government, but they often ally with regional leaders to resist oversight by a variety of largely toothless regulators.

One problem is China’s system for “dispatch”; that is, determining which power sources will supply electricity to the grid at any given time. A report by the Regulatory Assistance Project (RAP), an American NGO, notes that in most countries dispatch decisions are made in order to minimise costs (including environmental ones). In China regulations would appear to encourage a similar approach: grid-operators are supposed to give priority to electricity supplied by more efficient and greener producers. In practice, grid-operators are more inclined to help coal-fired plants recoup the cost of their investments. Both sides are members of a cosy club of energy-related SOEs. Even if the grid-operators were to try to stick to the rules, they would struggle. Coal plants can easily conceal how much they waste and pollute.

Generators of wind and solar energy thus find themselves handicapped by more than just the high cost of their technologies. Much of China’s most cleanly produced energy is wasted. For wind power, rates of “curtailment”, or energy generated but not taken up by the grid, have improved in recent years as grid systems have become better able to cope with the technical challenge of handling such unsteady sources of power. But the rate still stands at about 10% nationwide. In Britain it was less than 2% between 2011 and 2013.

The government launched pilot reforms in five provinces in 2007 to encourage more efficient dispatch, but they achieved little and have not been expanded. Max Dupuy of RAP’s Beijing office says the scheme met opposition because of its failure to compensate coal-fired plants for the revenue share lost to clean producers.

via Electricity: Generational shift | The Economist.

26/10/2014

China GDP Growth of Just 4 percent is possible – Businessweek

China reported on Tuesday that its economic growth fell to a five-year low. But one forecaster says that’s just the beginning. This week the Conference Board issued a 75-page white paper predicting that China’s annual growth will dip below 4 percent in the next decade. Its title: The Long Soft Fall in Chinese Growth.

I met on Monday with the report’s authors, David Hoffman and Andrew Polk, and asked why they’re so pessimistic on China. They said it’s a straightforward projection of recent slowdowns in the growth of capital investment, labor productivity, and the quantity and quality of the labor force.

It’s the optimists who need to defend their case, according to Hoffman, because the only way to project continued 7 percent growth for China is to project major output-enhancing economic reforms. “We just don’t think that will happen,” says Hoffman, who manages the Conference Board China Center for Economics and Business in Beijing.

via China GDP Growth of Just 4 percent is possible – Businessweek.

22/10/2014

Facebook’s Zuckerberg Gets a Toehold in China – Businessweek

In its quest to dominate the social media industry worldwide, Facebook (FB) has long hankered after China, where the company been been banned since 2009. Facebook may have just gained a foothold to help it infiltrate the Chinese market: the appointment of Chief Executive Officer Mark Zuckerberg to the board of one of China’s top business schools, the Tsinghua University School of Economics and Management.

Tsinghua University in Beijing

Tsinghua University announced Zuckerberg’s appointment on Monday to the school’s board, a meeting ground of sorts for Western corporate higher-ups and Chinese officials. In addition to Zuckerberg and top brass from IBM (IBM) , Anheuser-Busch InBev (BUD), and other multinationals, it includes Chinese government officials and entrepreneurs tasked with advising Tsinghua SEM’s development.

To the business school, Zuckerberg is an impressive name to add to a cadre of corporate superpowers. To Zuckerberg, who will fly to Beijing this week to attend the school’s annual board meeting, the appointment could provide an additional way for Facebook to make its case for reentering China, analysts say.

via Facebook’s Zuckerberg Gets a Toehold in China – Businessweek.

22/10/2014

Airbus Helicopters expects China to become biggest market by 2020 | Reuters

Airbus Helicopters, the world’s largest civil helicopter maker, expects China and Hong Kong to become its biggest global market within six years as Beijing starts to lift restrictions on the use of low altitude airspace from 2015.

A general view of an EC145 helicopter being assembled at the Airbus production facility in Donauwoerth, Southern Germany October 9, 2014.    REUTERS/Michaela Rehle

The Airbus Group NV’s (AIR.PA) helicopter division expects to increase its annual sales in China to 150 units by 2020 from around 30-40 helicopters now, its China president Norbert Ducrot told Reuters.

Sales in the United States, the firm’s biggest market, average around 120-150 aircraft per year.

“The China market is very small with a big potential,” Ducrot said in an interview in Beijing. “I am pretty sure around 2020, China will be the first market for Airbus Helicopters.”

“Before (our customers) were mostly state companies, police and fire fighting, but now we can see the emergence of civil private helicopter operators,” he added.

China simplified flight approval procedures for private aircraft late last year, but the fledgling market for helicopters and small aircraft has been constrained by the military’s control of low altitude airspace.

A dearth of small airports, maintenance facilities, mechanics and pilots have also hampered the sector’s growth.

Ducrot said he expects demand for helicopters and small aircraft to pick up gradually when China starts to open up its low altitude airspace next year.

As infrastructure improves and the military opens up more airspace by 2020, Ducrot estimates there will be 50,000 helicopters in China over the next 30 years. There are only about 330 helicopters currently in operation in China, including Hong Kong.

via Airbus Helicopters expects China to become biggest market by 2020 | Reuters.

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