Posts tagged ‘China’

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10/02/2013

* China’s Focus on Aerospace Raises Security Questions

NY Times: “When Airbus executives arrived here seven years ago scouting for a location to assemble passenger jets, the broad, flat expanse next to Tianjin Binhai International Airport was a grassy field.

A worker in an Airbus facility in Tianjin, China, that completes four planes a month, mostly for state-run carriers.

Now, Airbus, the European aerospace giant, has 20 large buildings and is churning out four A320 jetliners a month for mostly Chinese state-controlled carriers. The company also has two new neighbors — a sprawling rocket factory and a helicopter manufacturing complex — both producing for the Chinese military.

The rapid expansion of civilian and military aerospace manufacturing in Tianjin reflects China’s broader ambitions.

As Beijing’s leaders try to find new ways to invest $3 trillion of foreign reserves, the country has been aggressively expanding in industries with strong economic potential. The Chinese government and state-owned companies have already made a major push into financial services and natural resources, acquiring stakes in Morgan Stanley and Blackstone and buying oil and gas fields around the world.

Aerospace represents the latest frontier for China, which is eyeing parts manufacturers, materials producers, leasing businesses, cargo airlines and airport operators. The country now rivals the United States as a market for civilian airliners, which China hopes to start supplying from domestic production. And the new leadership named at the Party Congress in November has publicly emphasized long-range missiles and other aerospace programs in its push for military modernization.

If Boeing’s difficulties with its recently grounded aircraft, the Dreamliner, weigh on the industry, it could create opportunity. Chinese companies, which have plenty of capital, have been welcomed by some American companies as a way to create jobs. Wall Street has been eager, too, at a time when other merger activity has been weak.”

via China’s Focus on Aerospace Raises Security Questions – NYTimes.com.

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09/02/2013

* Mysterious China blogger comes out

SCMP: “For weeks, a mysterious microblog has been lifting a veil from around China’s new leader, Xi Jinping, with candid snapshots from his travels that defy the typically stiff and staged images of the leadership presented in state media.

Xi Jinping 习近平

Xi Jinping 习近平 (Photo credit: Wikipedia)

Ordinary Chinese, foreign reporters and even China’s own state media have speculated over who or what might be behind the blog – ostensibly registered to a female tech school graduate. Is Xi’s own team surreptitiously trying to humanise the leader in the guise of citizen journalism? Is this a crusader’s attempt to bring China’s leaders down a notch and send them a message?

It turns out it’s the brainchild of a male college dropout and migrant worker, Zhang Hongming, who said in an exclusive interview that he is both a genuine fan of China’s new leader and intent on making him more accessible to the country’s people.

“It is just me. It’s completely an individual act,” said Zhang, who started the “Fan Club of Learning From Xi” on China’s Twitter-like Sina Weibo on November 21 with a simple thought: Like other foreign leaders in these times, Chinese leaders should have an online following.

Zhang said he initially wanted to keep a low profile, but now wants to come forward to end the rampant speculation about his identity and intentions.

The account shares photos gathered from citizen volunteers and local reports throughout the country of Xi on his visits out in the field – and the candid images aren’t always flattering. There are shots of him visiting a vegetable market, serving food to the elderly, looking sideways. One shows him napping in a van.

The microblog even tracked Xi’s recent trip to Gansu province step by step, beating state media in reporting Xi’s activities. National broadcaster CCTV complained on its own microblog: “What happened? The Study Xi Fan Club is quicker and closer to him than us.”

The unexpected popularity of the microblog speaks to the Chinese public’s demand to humanize their typically aloof leaders.

“Our leaders used to appear to be out of reach for the masses. They always appeared to be mysterious. Now the public can feel closer to their leader with timely and transparent information,” Zhang said. “Xi is a national leader, but take his official title away, he’s an ordinary person.””

via Mysterious China blogger comes out | South China Morning Post.

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09/02/2013

* China to compensate woman for detention in old morgue

China seems determined to allow its citizens to petition central government and to stop local authorities from preventing this from happening.

Reuters: “China will compensate a woman who was held in a disused morgue as punishment for going to Beijing to petition against her husband’s jailing, state media said on Friday, in an unusual case of the government overturning an extra-judicial detention.

Chen Qingxia was held for three years in an abandoned bungalow once used to store bodies in northeast China’s Heilongjiang province after being abducted from Beijing by security officials, the official Xinhua news agency reported.

She had gone to the capital to seek redress for her husband, Song Lisheng, whom she said had been mistreated while serving an 18-month sentence at a re-education through labor camp, Xinhua added.

While China routinely dismisses Western criticism of its human rights record, the government does respond to some abuses, especially the more egregious ones reported by domestic media, in an effort to show that authorities are not above criticism

Chen’s plight came to public attention in December after media reported that people found posters she had put on a window of the building pleading for help, it said.

Four officials, including three police officers, had been fired in connection with the case, Xinhua added.

The government will pay medical bills and living expenses for her and her husband and step up efforts to find their young son, who became separated from Chen when she was abducted in Beijing, it said.

The amount of compensation has yet to be decided.

Chen’s case is the second reported in a week of the authorities taking action over illegally detained petitioners. A court in Beijing sentenced 10 people to up to two years in jail for illegally detaining petitioners from another city, state media said on Tuesday.

Petitioners often try to take local disputes ranging from land grabs to corruption to higher levels in Beijing, though only small numbers are ever able to get a resolution.

In many instances, they are rounded up by men hired by provincial authorities to prevent the central government from learning of problems in outlying regions, forced home or held in “black jails“, unlawful secret detention facilities.”

via China to compensate woman for detention in old morgue | Reuters.

See also: https://chindia-alert.org/2012/07/14/china-top-leaders-vow-to-better-handle-peoples-petitions/
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Posted in China alert, Good news, Human rights, Illegal practices, Justice, labour camp, Petition, Politics, public protest, Reform, Rule of law | 1 Comment »

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09/02/2013

* China Steps Up Buying in U.S.

WSJ: “The made-in-China label isn’t such a deal breaker anymore.

After being burned by a series of high-profile failures, Chinese companies are learning to navigate the delicate political and regulatory landscape for takeovers in the U.S.

[image]

Major U.S. companies remain essentially unattainable to Chinese buyers. So are many firms that can be tied to national security or critical technologies. Still, Chinese firms are stepping up their investments in the U.S. by targeting smaller companies, going after minority stakes and avoiding the most sensitive acquisition targets.

Wanxiang America, a unit of China’s Wanxiang Group, is paying $257 million to buy A123 Systems, a U.S. government-backed maker of lithium-ion batteries, after an early attempt at a purchase collapsed.

China hasn’t given up on big deals. The Committee on Foreign Investment in the U.S., a government group that reviews foreign acquisitions, is expected to decide in coming weeks whether to approve two multibillion-dollar deals by Chinese firms. A Cfius spokeswoman declined to comment.

The deals getting the green light so far are smaller. Last week, U.S. regulators approved the Chinese acquisition of a U.S. battery maker despite political resistance and an initially icy reception. Wanxiang America Corp., a unit of China’s Wanxiang Group, is paying $257 million to buy A123 Systems, AONEQ -3.57% a U.S. government-backed maker of lithium-ion batteries, after an early attempt at a purchase collapsed.

“You just need to understand the rules, follow the rules, be very transparent and let them make the decision,” says Pin Ni, president of Wanxiang America, who started the U.S. offshoot out of a home office in Chicago.

 

[image]Last year, Chinese buyers agreed to spend more than $10 billion in 46 deals to acquire U.S. companies or stakes in U.S. firms, according to Dealogic. The volume was higher than the Chinese total from 2009 through 2011 combined. The tally included the sale of Kansas City, Mo.-based movie-theater chain AMC Entertainment Holdings to Wanda Group for $700 million.

The U.S. still trails Canada, where Chinese firms announced $23 billion worth of deals for Canadian companies or stakes last year. The total includes the pending $15.1 billion acquisition of Canadian oil-sands operator Nexen Inc. NXY.T +1.39% by Cnooc Ltd., 0883.HK -0.13% the Chinese state energy giant.

via China Steps Up Buying in U.S. – WSJ.com.

 

 

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07/02/2013

* China, Malaysia Plan $3.4 Billion Industrial Park in Kuantan

Bloomberg: “Chinese and Malaysian companies agreed to invest 10.5 billion ringgit ($3.4 billion) on an industrial park in the Southeast Asian nation which will include steel and aluminum plants as well as a palm oil refinery.

China’s Guangxi Beibu Gulf International Port Group will jointly build the park in Kuantan with Malaysia’s Pahang state government and property developer SP Setia Bhd. (SPSB), according to a statement from the East Coast Economic Region Development Council. Jia Qinglin, chairman of China’s top advisory body, attended a ground-breaking ceremony with Malaysia’s Prime Minister Najib Razak today.

Jia, chairman of the Chinese People’s Political Consultative Conference, is on a four-day visit aimed at boosting business ties with the commodities-rich Southeast Asian nation. Najib proposed building the Malaysia-China Kuantan Industrial Park after the countries agreed last year to develop a similar estate in Qinzhou in southern China’s Guangxi region. Both cities have ports.

“A distinct and competitive supply chain will emerge between them,” Najib said in a speech. “There will be cross- border movement of manufactured goods with Kuantan Port and Qinzhou Port serving as trans-shipment hubs redistributing goods to markets around the world.”

Guangxi Beibu, SP Setia and the Pahang state government will invest 2.5 billion ringgit to develop the Malaysian park, according to the statement. The Chinese company will spend another 5 billion ringgit to build a steel plant, aluminum processing facilities and a palm oil refinery within the estate, plus 3 billion ringgit to expand Kuantan’s port with IJM Corp. (IJM)

The palm oil refinery will be a joint venture with Malaysia’s Rimbunan Hijau Group, it said.

“This year, we expect more than 1 billion ringgit of Chinese foreign direct investment in Malaysia,” Najib said, adding that the Kuantan projects should create 8,500 jobs. “Over the next five years, we expect two-way trade to reach $100 billion.””

via China, Malaysia Plan $3.4 Billion Industrial Park in Kuantan – Bloomberg.

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06/02/2013

* China Province to Stop Sending Dissidents to Camps

WSJ: “A Chinese province said it is suspending use of a harsh, gulag-like prison system commonly used around the country to stifle dissent, in the strongest signal yet that officials may be phasing out the widely criticized practice.

Workers in the Shayang Re-education Through La...

Workers in the Shayang Re-education Through Labor (Shayang Farm), a re-education through labor camp in Liaoning province. Photo part of the archives of the Laogai Museum, used with permission of the Laogai Research Foundation. (Photo credit: Wikipedia)

State media on Wednesday reported authorities in the southwestern Chinese province of Yunnan said they would immediately suspend a practice known as re-education through labor, or laojiao in Chinese. The camps allow local authorities to detain those suspected of wrongdoing for up to four years without an open trial. Human-rights groups allege those detained in re-education-through-labor camps are subjected to physical abuse.”

via China Province to Stop Sending Dissidents to Camps – WSJ.com.

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06/02/2013

* India concerned by China role in Pakistan port

Reuters: “China’s role in operating a strategically important port in Pakistan is a matter of concern for India, its defense minister said on Wednesday, as New Delhi and Beijing jostle for influence in the region.

India's Defence Minister A.K. Antony waits to speak at a plenary session of the 11th International Institute of Strategic Studies (IISS) Asia Security Summit: The Shangri-La Dialogue in Singapore in this file photo taken June 2, 2012. REUTERS/Tim Chong

Indian policy-makers have long been wary of a string of strategically located ports being built by Chinese companies in its neighborhood, as India beefs up its military clout to compete with its Asian rival.

Management of Gwadar port, around 600 km (370 miles) from Karachi and close to Pakistan’s border with Iran, was handed over to state-run Chinese Overseas Port Holdings last week after previously being managed by Singapore’s PSA International.

“It is a matter of concern to us,” Indian Defense Minister A.K. Antony told reporters when asked about Chinese control of the port.

When complete, the port, which is close to the Strait of Hormuz, a key oil shipping lane, is seen opening up an energy and trade corridor from the Gulf, across Pakistan to western China, and could be used by the Chinese Navy, analysts say.

“It will enable (China) to deploy military capability in the region,” said Jay Ranade, of the Centre for Air Power Studies and a former additional secretary at the government of India. “Having control of Gwadar, China is basically getting an entry into the Arabian Sea and the Gulf.”

China has also funded ports in Hambantota, Sri Lanka, and Chittagong in Bangladesh, both India’s neighbors.

“Gwadar is a more serious development than the others,” Ranade said, as the Pakistani port gives China base facilities.”

via India concerned by China role in Pakistan port | Reuters.

See also: https://chindia-alert.org/political-factors/geopolitics-chinese/

Posted in China alert, Chindia Alert, Defence, GeoPolitics, India alert, Military, Neighbour conflict, Politics, Territorial dispute | Leave a Comment »

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06/02/2013

* China bans luxury gift adverts in austerity push

Interesting, China links austerity with anti-corruption, rather than – as in the West – with  a difficult economy.

BBC: “China has announced a ban on radio and TV adverts which encourage extravagant gift-giving, saying they promote incorrect values, state media report.

A woman shops for handbags at a Gucci luxury boutique at the IFC Mall in Shanghai June 4, 2012

The move is part of a government campaign to crack down on corruption and extravagance.

Expensive watches, gold coins and liquor are among the items affected, said the Xinhua news agency.

The giving of gifts, often to gain favour with officials, is common during lunar new year, which begins next week.

But China’s TV watchdog, the State Administration of Radio, Film and Television (Sarft), said that adverts on some channels had been encouraging people to give luxury items.

This, it said, had promoted “incorrect values” and encouraged a bad social ethos, Xinhua reports.

It quoted a Sarft official as saying that the move was in response to repeated calls by the authorities for people to practise thrift and shun extravagance and waste.

New Communist party leader Xi Jinping has repeatedly stressed the need to tackle corruption and has banned displays of extravagance at party and army functions.

The new restrictions coincide with a pledge by the government to tackle the growing and politically sensitive gap between rich and poor in the country.

Its plan includes raising the minimum wage to 40% of average urban salaries by 2015.

The government says that the reforms are necessary to make income distribution fairer. Correspondents say the move reflects Communist party concern that growing inequalities could threaten political stability.”

via BBC News – China bans luxury gift adverts in austerity push.

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06/02/2013

* China OKs sweeping tax reforms to tackle inequality

First the talking – now the walking.

Reuters: “China unveiled sweeping tax reforms on Tuesday to make wealthy state-owned firms, property speculators and the rich pay more to narrow a yawning gap between an urban elite and hundreds of millions of rural poor.

A family arrives at Beijing West Railway Station February 5, 2013. REUTERS/Jason Lee

The plans approved by the State Council – China’s cabinet – also included commitments to push forward market-oriented interest rate reforms to give savers a better return and more security.

Chief among the reforms is a requirement to raise the percentage of profits contributed by state-owned firms to the government by about 5 percentage points by 2015.

Together with measures to raise wages and improve households’ return on assets, the reforms signal an attempt to shift economic growth towards increased consumption and away from the current reliance on investment spending.

“The State Council is not just talking about the gap between rich and poor, they’re talking about the whole economy and how income is distributed among various actors – the households, the corporations and the government,” said Andrew Batson, research director of GK Dragonomics, an economic consultancy in Beijing.

“It’s about changing the entire flow of income around the national economy.””

via China OKs sweeping tax reforms to tackle inequality | Reuters.

See also: https://chindia-alert.org/2012/12/10/china-wealth-gap-continues-to-widen-survey-finds/

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05/02/2013

* The party may be over, but the hangover is only just beginning

The Times: “12 (or 6) is the number of bottles of fantastically fine vintage claret (or, possibly, dismally mundane bottles of table plonk) consumed in a private room of the Huafa private members’ club in Zhuhai.

drinking wine

There are two very distinct versions of what happened around the table that night in mid-January. Wine investment around the globe may depend on which is the more credible.

In one version, Zhou Shaoqiang, the general manager of the state-owned Zhuhai Investment Holdings Group, hosted a full-bore knees-up for a select gang of local finance officials and state-owned bank executives. In a show of baronial largesse, Mr Zhou poured some of the world’s finest wines down his guests’ necks.

As the collection of emptied Latour and Haut-Brion bottles swelled, so did the bill, with the cost of booze alone hitting somewhere well above the £8,000 mark by the time the party started to wrap up and the Chinese taxpayer (via Mr Zhou’s state-owned company wallet) picked up the tab. The Huafa club, of which Mr Zhou is thought to be a member, has only five private rooms: each comes with a minimum charge of £1,000. As Chinese internet users have pointed out, the cost of those officials’ Premier Cru hangover was the equivalent of an annual white-collar wage.

All of this might have remained Zhou’s little secret, except that one of the diners, a senior local official called Chi Tengfei, snapped a picture of the impressive row of empties, posting the evidence on the internet with the faintly sozzled message: “Drank 12 bottles this evening. What am I going to do tomorrow?”

So far, so outrageous. The Chinese public has all but run out of patience with lavish abuse of the state coffers by officials and state-run companies. Xi Jinping, the incoming president, is well aware of this and twice now has called for a big show of thrift. No more opulent banquets, no more pricey booze has been his mantra and recent weeks have suggested that some were taking it to heart. Including, it seems, Mr Zhou.

Because, after a two-week inquiry by the Zhuhai State-owned Assets Supervision and Administration Commission, a second version of the evening has emerged. In it, Mr Zhou did, indeed, host a banquet, but he was ever so responsible about it. Before the evening began, he had made arrangements with the Huafa club to waive its minimum charge and, when the wine list was brought around, he ordered only six bottles of the cheapest red they had — a dreary draught costing about £18 a bottle. The six bottles of extraordinarily good Bordeaux names were brought — empty — to the table so that the guests could “study great wines from the club sommelier” by staring at empty bottles.

The dinner itself was a staid affair of simple dishes. The only reason the bill was paid by the State, it has since emerged, was because Mr Zhou had forgotten his cash. He rectified that by coming back two weeks later (just before the inquiry’s results were announced) to settle up from his own pocket.

Chinese internet users find this second version of events less plausible than the first, but is their scepticism justified? There is a great deal riding on the answer. China, as everyone in the high-end wine trade knows, has become a monstrously big buyer of the great vintage names. A sizeable chunk of that appetite arises from a tangle of business and bureaucratic relationships where gifting and largesse are the currency.

Mr Xi’s edicts about frugality have already hurt the share price of Moutai, China’s biggest domestic liquor brand. If he really means business, and business dinners more resemble the second version of Mr Zhou’s dinner than the first, the top-end wine market might feel a bump, too.”

via The party may be over, but the hangover is only just beginning | The Times.

Posted in China alert, Economics, Illegal practices, Inequalities, Politics, social media | Leave a Comment »

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