Posts tagged ‘Beijing’

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17/03/2013

* Chinese state-owned railway giant goes into biz

China Daily: “The China Railway Corporation, which will take over the commercial functions of the former Ministry of Railways (MOR), went into business on Sunday.

Chinese state-owned railway giant goes into biz

The company announced its arrival via Sina Weibo, the Chinese equivalent of Twitter, two days after receiving approval from the State Council, China’s cabinet.

The company will conduct business operations that were previously conducted by the now-defunct MOR, while the newly formed State Railways Administration will handle the MOR’s administrative responsibilities.

With registered capital of 1.04 trillion yuan ($165.73 billion), the China Railway Corporation will take over all of the MOR’s related assets, liabilities and personnel, as well as shoulder the responsibility of running trains for public welfare, according to a statement posted on the government website.

The wholly state-owned enterprise is administered by the central government and supervised by the Ministry of Transport, the statement said.

The move was made as part of the government’s efforts to restructure its cabinet, as well as eliminate a previous situation in which the MOR played roles as both market participant and regulator in the railway sector.

The company is expected to address the MOR’s high remaining debt and improve the country’s massive railway network.”

via Chinese state-owned railway giant goes into biz |Economy |chinadaily.com.cn.

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14/03/2013

* Xi Jinping named president of China

BBC: “Leaders in Beijing have confirmed Xi Jinping as president, completing China’s 10-yearly transition of power.

Mr Xi, appointed to the Communist Party’s top post in November, replaces Hu Jintao, who is stepping down.

Some 3,000 deputies to the National People’s Congress, the annual parliament session, took part in the vote at the Great Hall of the People.

The new premier – widely expected to be Li Keqiang – is scheduled to be named on Friday, replacing Wen Jiabao.

While votes are held for the posts, they are largely ceremonial and the results very rarely a surprise.

Mr Xi, who bowed to the delegates after his name was announced but made no formal remarks, was elected by 2,952 votes to one, with three abstentions.

He was named general secretary of the Communist Party on 8 November and also given the leadership of the top military body, the Central Military Commission.

China’s parliament engaged in a political ceremony that involved all the hallmarks of a real election: a ballot box, long lines of delegates queuing to vote, and a televised announcement of a winner. However, no-one was surprised to hear the results: with a whopping 99.86% of the vote, Xi Jinping was anointed President of the People’s Republic of China and Chairman of the People’s Liberation Army.

In November, Mr Xi was elevated to the top spot in China’s Communist Party. However, he did not become the country’s official head of state until his candidacy was approved by China’s parliament.

According to China’s constitution, almost 3,000 NPC delegates are allowed to “elect” candidates for the state’s top positions. However, in practice, delegates merely endorse the names put forward by the party.

Perhaps the only interesting result of the election is that Mr Xi did not receive 100% of the ballot. One person voted against him and three people abstained. The result leaves some in China to wonder: perhaps, in an act of modesty, Mr Xi voted against himself.

This vote, handing him the role of head of state, was the final stage in the transition of power to him and his team, the slimmed-down, seven-member Standing Committee.

The largely symbolic role of vice-president went to Li Yuanchao, seen as a close ally of Mr Hu and a possible reformist.

The 61-year-old, who is not a member of the Standing Committee, has in the past called for reforms to the way the Communist Party promotes officials and consults the public on policies.”

via BBC News – Xi Jinping named president of China.

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12/03/2013

* Africa told to view China as competitor

CNN: “Africa must shake off its romantic view of China and accept Beijing is a competitor as much as a partner and capable of the same exploitative practices as the old colonial powers, Nigeria’s central bank governor has warned.

As manufacturing in Africa slows, Nigeria's central bank governor cautions against exploitative forms of trade with China.

Reflecting the shifting views of a growing number of senior African officials who fear the continent’s anaemic industrial sector is being battered by cheap Chinese imports, Lamido Sanusi cautions that Africa is “opening itself up to a new form of imperialism”.

“China takes from us primary goods and sells us manufactured ones. This was also the essence of colonialism,” he writes in the Financial Times. His remarks are among the most trenchant yet by a serving African official about the continent’s ties with the world’s second largest economy.

Trade between China and Africa was worth more than $200bn in 2012, 20 times what it was in 2000 when Beijing committed to a policy of accelerated engagement. It has been a period of strong growth partly thanks to Asian demand for African resources . But a boom in commodities, services and consumer spending has coincided with the relative decline of African manufacturing from 12.8 per cent to 10.5 per cent of regional GDP, according to UN figures.”

via Africa told to view China as competitor – CNN.com.

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11/03/2013

* Yuan Flows a More Freely as China Relaxes Controls

WSJ: “The use of China’s yuan abroad is rising as Beijing slowly loosens its grip and allows a wider group of investors to buy the nation’s currency, stocks and bonds.

The offshore yuan in Hong Kong, where the currency is freely traded, is near the highest in a month partly because investors are taking advantage of a slight relaxation in rules on its capital markets. Last week, Beijing allowed Hong Kong units of Chinese banks and insurers, as well as Hong Kong-registered financial institutions, to invest in China’s stocks and bonds for the first time with yuan raised offshore.”

via Yuan Flows a More Freely as China Relaxes Controls – WSJ.com.

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09/03/2013

* Women Gain Ground in China. Or Do They?

WSJ: “On this year’s Women’s Day, a host of Chinese media outlets are trumpeting a new study that finds China’s businesses rank the highest in the world for employing women in senior management roles.

The proportion of women in senior management in China has climbed to 51% this year, up from 25% in 2012 and outpacing the global average of 21%, according to the study, produced by the Beijing arm of accounting firm Grant Thornton. In a survey of 200 businesses in China, 94% of them employed women in senior roles, the study said.

Agence France-Presse/Getty Images

Woman do manual labour in a garden outside an office block on International Women’s Day in Shanghai on March 8, 2013.

The survey’s findings would seem to represent great news for women in a country with a long history of entrenched patriarchy – except they conflict significantly with other studies that show Chinese women have actually been losing ground in the labor force, politics and society.

One recent study by National University of Singapore’s Lee Kuan Yew School of Public Policy and the New York-based Asia Society, for every five Chinese men who rises to a senior position in the workplace only one woman achieves the same level of advancement. The ratio is even more lopsided inside the Communist Party: In the party’s Central Committee, where major policy decisions are discussed, only 10 of the 205 members are women, and no woman has ever held a spot on the Politburo Standing Committee, the party’s top decision-making body.

Things are slightly better in the country’s rubber-stamp parliament, the National People’s Congress, where 23% of the 2,987 delegates are female.

In the World Economic Forum’s gender equality index, an annual ranking of countries by their ability to develop, retain and attract female talent, China’s ranking declined to 69th last year, down from 57th in 2008.”

via Women Gain Ground in China. Or Do They? – China Real Time Report – WSJ.

Posted in China alert, Economics, Gender imbalance, Gender issues, Politics, Women's rights | 1 Comment »

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07/03/2013

* China’s Central Asia Problem

International Crisis Group: “Since the collapse of the Soviet Union, China and its Central Asian neighbours have developed a close relationship, initially economic but increasingly also political and security. Energy, precious metals, and other natural resources flow into China from the region.

Chinese President Hu Jintao and Kazakhstan's President Nursultan Nazarbayev review Chinese honour guardsInvestment flows the other way, as China builds pipelines, power lines and transport networks linking Central Asia to its north-western province, the Xinjiang Uighur Autonomous Region. Cheap consumer goods from the province have flooded Central Asian markets. Regional elites and governments receive generous funding from Beijing, discreet diplomatic support if Russia becomes too demanding and warm expressions of solidarity at a time when much of the international community questions the region’s long-term stability. China’s influence and visibility is growing rapidly. It is already the dominant economic force in the region and within the next few years could well become the pre-eminent external power there, overshadowing the U.S. and Russia.

Beijing’s primary concern is the security and development of its Xinjiang Autonomous Region, which shares 2,800km of borders with Kazakhstan, Kyrgyzstan and Tajikistan. The core of its strategy seems to be creation of close ties between Xinjiang and Central Asia, with the aim of reinforcing both economic development and political stability. This in turn will, it is hoped, insulate Xinjiang and its neighbours from any negative consequences of NATO’s 2014 withdrawal from Afghanistan. The problem is that large parts of Central Asia look more insecure and unstable by the year. Corruption is endemic, criminalisation of the political establishment widespread, social services in dramatic decline and security forces weak. The governments with which China cooperates are increasingly viewed as part of the problem, not a solution, as Chinese analysts privately agree. There is a risk that Central Asian jihadis currently fighting beside the Taliban may take their struggle back home after 2014. This would pose major difficulties for both Central Asia and China. Economic intervention alone might not suffice.

There are other downsides to the relationship. Its business practices are contributing to a negative image in a region where suspicions of China – and nationalist sentiments – are already high. Allegations are growing of environmental depredation by Chinese mines, bad working conditions in Chinese plants, and Chinese businessmen squeezing out competitors with liberal bribes to officials. Merited or not, the stereotype of China as the new economic imperialist is taking root.

Beijing is starting to take tentative political and security initiatives in the region, mostly through the Shanghai Cooperation Organisation (SCO), which, however, has shown itself ineffective in times of unrest. The other major external players in Central Asia are limited by their own interests or financial capacity. The speed of the U.S. military pull-out from Afghanistan is causing concern in Chinese policy circles, and though Russia claims privileged interests in Central Asia, it lacks China’s financial resources. It is highly likely in the near- to mid-term that China will find itself required to play a larger political role.

China’s well-trained and well-informed Central Asia specialists are among those who fear that a disorderly or too rapid withdrawal of NATO troops from Afghanistan could lead to serious regional unrest – civil strife possibly, the dramatic weakening of central governments, or the escalation of proxy battles among Afghanistan’s neighbours leading to their destabilisation and, most worryingly, Pakistan’s. They are critical of Central Asian leaders’ corruption and lack of competence, as well of the criminalisation of political establishments in the region, and privately express great concern about the long-term prospects for the two weakest states, Kyrgyzstan and Tajikistan. They are as anxious as the West, probably more so, about the region’s vulnerability to a potential well-organised insurgent challenge, from within or without.

This concern has led Chinese policymakers to consider engagement with elements of the Taliban, in an effort to induce them to scale back their perceived support for Uighur separatist groups, such as the East Turkestan Islamic Movement (ETIM). The depth of Beijing’s worry over possible threats emanating from Afghanistan was demonstrated when it sent its then security chief, Zhou Yongkang, to Kabul in September 2012, just before China’s once-in-a-decade leadership transition. Zhou, the most senior Chinese official to visit in 50 years, pledged reconstruction assistance and limited security help in the form of police training. Though publicly they support Central Asian leaders and express confidence in their political viability, Chinese policy makers have yet to come up with a clear plan to work toward stability in both Afghanistan and Central Asia.

China has unambiguously ruled out any sort of military intervention in its uneasy Central Asia neighbourhood, even in a case of extreme unrest. In the coming years, however, events may force its leadership to make difficult decisions. It will almost surely need to use at least more active diplomatic and economic engagement to grapple with challenges that pose threats to its economic interests and regional stability.

via China’s Central Asia Problem – International Crisis Group.

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07/03/2013

* Lawmaker calls for pollution liability insurance law

Xinhua: “A Chinese lawmaker has urged the government to create laws enforcing a scheme that makes enterprises pay compensation in cases of polluting accidents.

Insurance

Insurance (Photo credit: Christopher S. Penn)

Such environmental pollution liability insurance, serving as a safety net, will help enterprises that pose heavy risks to better prevent pollution and ensure compensation for victims when they fail, said Zuo Xuwen, director of the Hubei provincial Insurance Regulatory Bureau.

China is in urgent need of implementing the insurance in the face of intensifying pollution pressure recently, Zuo said on Thursday in Beijing on the sidelines of parliament’s annual session.

Pilot environmental pollution liability insurance schemes have already had success in the provinces of Hunan, Hubei and Jiangsu, according to Zuo.

In September 2008, some 120 households in Zhuzhou City of central China’s Hunan Province received compensation from an insurance company after falling victim to leakage from a local insecticide factory that caused great damage to the environment.

Zuo suggested that local legislation should be set up in accordance with each regional situation to encourage enterprises to participate in the insurance.

Zuo also called for the setting-up of pollution compensation funds when there is confusion in identifying polluters. This move would buffer victims from greater losses, and the fund would be entitled to the right of recourse for those eventually proved responsible, the official said.

The Ministry of Environmental Protection and the China Insurance Regulatory Commission jointly issued a guideline in January to promote compulsory insurance pilots in heavy industries and other big-polluting enterprises.”

via Lawmaker calls for pollution liability insurance law – Xinhua | English.news.cn.

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05/03/2013

* China Internet Executives Get a Seat at the Table in Beijing

WSJ: “Between questions of censorship, laws that require complicated listings in U.S. markets, and fierce and often public confrontations between companies, China’s Internet industry has always had an uncomfortable relationship with the government.

So it’s no small thing that this year, for the first time, the government took special steps to ensure more representatives from the industry could join China’s rubber-stamp parliament, the National People’s Congress, and its advisory body, the Chinese People’s Political Consultative Conference.

According to two people who were part of the consultation process to choose delegates, the change primarily reflects the government’s recognition that leaders of the relatively new industry can be counted among China’s most important business leaders. In August, the United Front Work Department, the branch of the party in charge of bringing in useful people who are not party members to cooperate with the party, held a meeting attended by representatives from about 20 of China’s most important Internet companies, according to a person who attended. At the meeting, the representatives were asked about issues facing the industry, what leaders they thought should be nominated and also what other people should be consulted, according to the person.”

via China Internet Executives Get a Seat at the Table in Beijing – China Real Time Report – WSJ.

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01/03/2013

* Hurun rich list stirs Chinese zodiac discussion

English: The carvings with Chinese Zodiac on t...

English: The carvings with Chinese Zodiac on the ceiling of the gate to Kushida Shrine in Fukuoka ) (Photo credit: Wikipedia)

SCMP: “The publication of the Hurun Global Rich List 2013, which revealed the top 10 wealthiest Chinese billionaires, on Thursday has triggered discussion among Chinese netizens about the Chinese zodiac signs of the rich.

 

The dragon is the most common zodiac sign among the billionaires, followed by the horse, said a post by China’s Global Times.

Commenting on the list of billionaires, one netizen wrote, “Chinese officials must be laughing at this so-called ‘rich list’.”

Others chimed in with comments on Chinese zodiac signs. “Dragons are born with a kind of self-confidence. They are destined to play a strong role,” one said.

Another claimed, “I will give birth to a ‘dragon baby’ and a ‘horse baby’!”

A third wrote, “Global Times, mind your own business.”

The report, compiled by the Shanghai-based Hurun Research Institute, showed that Hong Kong entrepreneurs make up the majority of the list, followed by those from Beijing, Shanghai and Shenzhen.

The top industry sector favoured by the Chinese billionaires on the list is real estate, followed by manufacturing, finance and investment, and information technology.”

via Hurun rich list stirs Chinese zodiac discussion | South China Morning Post.

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14/02/2013

* Claims China is world’s No 1 trading economy are nonsense

SCMP: “The high import and export numbers are distorted by domestic firms fiddling taxes and the country’s heavy involvement in processing trade

scm_biz_tom_holland_14-02.art_2.jpg

Mainland imports of goods from the mainland via Hong Kong (left) and foreign value-added content of China’s exports

If you believe the media reports, China passed another milestone last year, overtaking the United States to become the world’s biggest trading economy.

According to data from Beijing’s customs officers, China’s total imports and exports of goods reached US$3.87 trillion in 2012.

In contrast, figures from the US Commerce Department show that America’s international goods trade was worth just US$3.82 trillion.

Hooray! China beats the US by US$50 billion.

Except there’s a problem: the figures are nonsense.

The most obvious way they are wrong is because China’s import and export numbers are heavily distorted by domestic companies fiddling their taxes.

Under mainland regulations, exporters of electronic gadgets and other widgetry can claim a value-added tax rebate worth 17 per cent of the goods’ value.

What’s more, under the Closer Economic Partnership Arrangement, no tariffs are charged on goods imported into the mainland from Hong Kong, provided the importer claims a relatively small component of value was added in the city.

As a result, mainland companies ship huge quantities of goods to Hong Kong, where their value is marked up by around 20 per cent before they are re-imported back into the mainland.

With this dodge, the scammers not only get their tax rebate when they export. By over-invoicing the re-imports, they get to circumvent the mainland’s capital controls and ship money offshore, either to invest in international markets (or Hong Kong’s properties) or to round-trip back into the mainland as foreign direct investment, which qualifies them for yet more tax breaks.

Figures from the Hong Kong government show the city was responsible for re-exporting some US$116 billion worth of stuff from the mainland back to the mainland last year, a 13 per cent increase over the year before (see the first chart).

If we assume the mainland importers claimed that 17 per cent of the value of their purchases was added in Hong Kong, which is in line with the Trade Development Council’s figures, then we can estimate that the value of the mainland’s total goods trade – both exports and imports – last year was exaggerated by some US$212 billion.

As a result, it looks very much as if China still lags some US$160 billion behind the US in terms of its international trade in goods, with just US$3.66 trillion of combined imports and exports in 2012, compared with America’s US$3.82 trillion.

But even those figures are dubious. That’s because much of China’s international commerce consists of processing trade. High-value components from developed economies get imported, bolted together by low-paid workers in China’s factories, and then re-exported to their final markets.

As a result, China’s contribution to the total value of the goods it exports is low by international standards.

Infamously, one 2011 study estimated that China’s share of the value added in a made-in-Shenzhen iPad with a US retail price of US$499 was just US$8.

Overall, according to the trade in value added database compiled by the Organisation for Economic Co-operation and Development, the foreign value-added share of China’s exports amounted to 26 per cent of their face value in 2009. For US exports, the proportion was 11 per cent.

That makes a huge difference to the raw trade numbers. In 2009, the foreign value-added content of China’s exports was worth almost US$400 billion, compared with US$160 billion for US exports (see the second chart).

Adjust the gross trade numbers to allow for this difference, and it soon becomes apparent that China is still a long way from becoming the world’s largest trading economy in any meaningful sense, despite what last week’s headlines may have claimed.”

via Claims China is world’s No 1 trading economy are nonsense | South China Morning Post.

 

See also: https://chindia-alert.org/2013/02/12/6166/

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