Posts tagged ‘China’

20/01/2013

* China’s R&D expenditure expected to top 1 trln yuan

Xinhua: “China’s spending on research and development (R&D) in 2012 is expected to surpass 1 trillion yuan (160.8 billion U.S. dollars) as the country has been pushing for a more innovation-driven economy, according to official statistics released Saturday.

The expenditure will bring the proportion of R&D funds in the country’s gross domestic output (GDP) to 2 percent, Minister of Science and Technology Wan Gang said at a national science and technology work conference.

Businesses invested the most in R&D, accounting for 74 percent of the total, according to official statistics.

Wan said that China’s innovation capability has been greatly boosted in the past five years, with scientific progress contributing 51.7 percent to the nation’s economic growth in 2011, compared with 48.8 percent in 2008.”

via China’s R&D expenditure expected to top 1 trln yuan – Xinhua | English.news.cn.

20/01/2013

* In China, Discontent Among the Normally Faithful

NYT: “Barely two months into their jobs, the Communist Party’s new leaders are being confronted by the challenges posed by a constituency that has generally been one of the party’s most ardent supporters: the middle-class and well-off Chinese who have benefited from a three-decade economic boom.

A Jan. 9 demonstration in Guangzhou, where people protested the censorship of a paper known for investigative reporting.

A widening discontent was evident this month in the anticensorship street protests in the southern city of Guangzhou and in the online outrage that exploded over an extraordinary surge in air pollution in the north. Anger has also reached a boil over fears concerning hazardous tap water and over a factory spill of 39 tons of a toxic chemical in Shanxi Province that has led to panic in nearby cities.

For years, many China observers have asserted that the party’s authoritarian system endures because ordinary Chinese buy into a grand bargain: the party guarantees economic growth, and in exchange the people do not question the way the party rules. Now, many whose lives improved under the boom are reneging on their end of the deal, and in ways more vocal than ever before. Their ranks include billionaires and students, movie stars and homemakers.

Few are advocating an overthrow of the party. Many just want the system to provide a more secure life. But in doing so, they are demanding something that challenges the very nature of the party-controlled state: transparency.

More and more Chinese say they distrust the Wizard-of-Oz-style of control the Communist Party has exercised since it seized power in 1949, and they are asking their leaders to disseminate enough information so they can judge whether officials, who are widely believed to be corrupt, are doing their jobs properly. Without open information and discussion, they say, citizens cannot tell whether officials are delivering on basic needs.

“Chinese people want freedom of speech,” said Xiao Qinshan, 46, a man in a wheelchair at the Guangzhou protests.”

via In China, Discontent Among the Normally Faithful – NYTimes.com.

18/01/2013

Another week, another example of creative, personal outsourcing. Where will it go next?

See also: https://chindia-alert.org/2013/01/16/us-employee-outsourced-job-to-china/

17/01/2013

* China’s Ambitious Goal for Boom in College Graduates

NY Times: “Zhang Xiaoping’s mother dropped out of school after sixth grade. Her father, one of 10 children, never attended.

But Ms. Zhang, 20, is part of a new generation of Chinese taking advantage of a national effort to produce college graduates in numbers the world has never seen before.

A pony-tailed junior at a new university here in southern China, Ms. Zhang has a major in English. But her unofficial minor is American pop culture, which she absorbs by watching episodes of television shows like “The Vampire Diaries” and “America’s Next Top Model” on the Internet.

It is all part of her highly specific ambition: to work some day for a Chinese automaker and provide the cultural insights and English fluency the company needs to supply the next generation of fuel-efficient taxis that New York City plans to choose in 2021. “It is my dream,” she said, “and I will devote myself wholeheartedly to it.”

Even if her dream is only dorm-room reverie, China has tens of millions of Ms. Zhangs — bright young people whose aspirations and sheer numbers could become potent economic competition for the West in decades to come.

China is making a $250 billion-a-year investment in what economists call human capital. Just as the United States helped build a white-collar middle class in the late 1940s and early 1950s by using the G.I. Bill to help educate millions of World War II veterans, the Chinese government is using large subsidies to educate tens of millions of young people as they move from farms to cities.

The aim is to change the current system, in which a tiny, highly educated elite oversees vast armies of semi-trained factory workers and rural laborers. China wants to move up the development curve by fostering a much more broadly educated public, one that more closely resembles the multifaceted labor forces of the United States and Europe.

It is too early to know how well the effort will pay off.”

via China’s Ambitious Goal for Boom in College Graduates – NYTimes.com.

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17/01/2013

* U.S., Japan review defense guidelines amid tension with China

We hope that this revision does not fall onto the ‘Law of Unintended Consequences‘ and exacerbates rather than alleviates the current high tensions.

Reuters: “The United States and Japan began on Thursday the revision of defense cooperation guidelines for the first time in 15 years as Prime Minister Shinzo Abe faces a territorial dispute with China and North Korea’s missile and nuclear programmes.

Shinzo Abe

The revision to the guidelines, which set rules on how Japanese and U.S. forces work together in or near Japan, comes after a hawkish Abe led his Liberal Democratic Party to power in an election last month.

“We would like to discuss Japanese Self Defence Forces‘ role and U.S. forces role with eyes on the next five, 10, 15 years and on the security environment during those periods,” a Defence Ministry official told reporters, without elaborating.

The revision is due because of drastic changes in the security environment over the past 15 years including China’s maritime expansion and North Korea’s missile development, the Japanese government has said.

North Korea has also twice tested nuclear devices.

Japan is locked in a territorial dispute with China over a group of tiny East China Sea islets called Senkaku in Japan and Diaoyu in China, with both countries sending patrol ships and planes to areas near the isles.

The review started with a working-level meeting in Tokyo between U.S. and Japanese officials. It will likely take a year or more to complete and coincides with a U.S. “pivot” in diplomatic and security focus to Asia.

“One issue that’s prevalent is whether the Abe government will reinterpret the constitution to exercise the right of collective self defence,” said Nicholas Szechenyi, senior fellow at the Center for Strategic and International Studies.

“Should that policy decision be taken, it will obviously have an impact on the way the Self Defence Forces and U.S. military coordinate.”

Japan recognizes it has what is known as the right of collective self-defence, meaning a right to defend with force allies under attack even when Japan itself is not being attacked.

But Japanese governments have traditionally interpreted the pacifist constitution as banning the actual exercise of the right, creating a sore spot in Tokyo’s security ties with Washington. Abe wants to change the interpretation to allow Japan to exercise the right.

via U.S., Japan review defense guidelines amid tension with China | Reuters.

See also: https://chindia-alert.org/2012/08/12/beijing-reasserts-its-claims-in-south-china-sea-nytimes-com/

17/01/2013

* China Loses Edge As Worlds Factory Floor

WSJ: “China is losing its competitive edge as a low-cost manufacturing base, new data suggest, with makers of everything from handbags to shirts to basic electronic components relocating to cheaper locales like Southeast Asia.

imageThe shift—illustrated in weakened foreign investment in China—has pluses and minuses for an economy key to global growth. Beijing wants to shift to higher-value production and to see incomes rise. But a de-emphasis on manufacturing puts pressure on leaders to make sure jobs are created in other sectors to keep the worlds No. 2 economy humming.

Total foreign direct investment flowing into China fell 3.7% in 2012 to $111.72 billion, the Ministry of Commerce said Wednesday, the first annual decline since the fallout from the global financial crisis in 2009.

Then, a 13% fall in foreign investment into China reflected dire conditions for business in the U.S. and Europe, and global risk aversion, which choked off capital flows. Economists say the drop in 2012 is partly cyclical, driven by slowing overall growth in China and Europe’s prolonged debt crisis.

But it also is the result of a long-term trend of rising wages and other costs that have made China less attractive, especially for basic manufacturing, economists say.

By contrast, foreign direct investment into Thailand grew by about 63% in 2012, and Indonesia investment was up 27% in the first nine months of last year.

Coronet SpA, an Italian maker of synthetic leather with production in the southern Chinese province of Guangdong, plans a new factory in Vietnam to take advantage of lower labor costs and to be closer to its customers in the shoe and handbag businesses, many of which have already moved there.

via China Loses Edge As Worlds Factory Floor – WSJ.com.

See also: https://chindia-alert.org/2012/12/07/apple-to-return-some-mac-production-to-u-s-in-2013/

16/01/2013

* US employee ‘outsourced job to China’

Ultimate outsourcing – very personal. Shows real enterprise and initiative. Wonder how many others are doing the same and not been found out yet!

BBC: “A security check on a US company has reportedly revealed one of its staff was outsourcing his work to China.

lazywork

The software developer, in his 40s, is thought to have spent his workdays surfing the web, watching cat videos on YouTube and browsing Reddit and eBay.

He reportedly paid just a fifth of his six-figure salary to a company based in Shenyang to do his job.

Operator Verizon says the scam came to light after the US firm asked it for an audit, suspecting a security breach.

According to Andrew Valentine, of Verizon, the infrastructure company requested the operator’s risk team last year to investigate some anomalous activity on its virtual private network (VPN) logs.

“This organisation had been slowly moving toward a more telecommuting oriented workforce, and they had therefore started to allow their developers to work from home on certain days. In order to accomplish this, they’d set up a fairly standard VPN concentrator approximately two years prior to our receiving their call,” he was quoted as saying on an internet security website.

The company had discovered the existence of an open and active VPN connection from Shenyang to the employee’s workstation that went back months, Mr Valentine said.

And it had then called on Verizon to look into what it had suspected had been malware used to route confidential information from the company to China.

“Central to the investigation was the employee himself, the person whose credentials had been used to initiate and maintain a VPN connection from China,” said Mr Valentine.”

via BBC News – US employee ‘outsourced job to China’.

15/01/2013

Another spur to the New Orient Express.

See also: https://chindia-alert.org/2013/01/14/5857/

14/01/2013

Interesting view.

14/01/2013

Central government appears determined to let the people’s voice be heard and not censored by local authorities. Good news – if enforced.

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