Posts tagged ‘China’

09/11/2014

China to establish $40 billion Silk Road infrastructure fund | Reuters

China will contribute $40 billion to set up a Silk Road infrastructure fund to boost connectivity across Asia, President Xi Jinping announced on Saturday, the latest Chinese project to spread the largesse of its own economic growth.

A map indicating trading routes used around th...

A map indicating trading routes used around the 1st century CE centred on the Silk Road. (Photo credit: Wikipedia)

China has dangled financial and trade incentives before, mostly to Central Asia but also to countries in South Asia, backing efforts to resurrect the old Silk Road trading route that once carried treasures between China and the Mediterranean.

The fund will be for investing in infrastructure, resources and industrial and financial cooperation, among other projects, Xi said, according to Xinhua.

via China to establish $40 billion Silk Road infrastructure fund | Reuters.

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

Alibaba Looks Ahead to ‘Singles Day’ – Businessweek

So far, Alibaba (BABA) is doing a good job living up to the hype that surrounded its record-setting initial public offering. The Chinese e-commerce company yesterday, Nov. 4, reported its first earnings numbers since its IPO raised a record $25 billion in September, and Alibaba’s sales for the quarter increased 54 percent, to 16.8 billion yuan. Although higher costs for integration of newly acquired businesses and other marketing expenses helped drive its earnings down 39 percent, to 3 billion yuan, that result was still better than many analysts had expected.

Merchandise is prepared for Singles' Day online sales on Nov. 5, 2014 in Wenzhou, Zhejiang province, China

“The China retail business is proving to be a powerhouse,” wrote Rob Sanderson, managing director with MKM Partners, in a report published Nov. 4. China’s market, he added, offers “impressive growth even at a very large scale.”

via Alibaba Looks Ahead to ‘Singles Day’ – Businessweek.

07/11/2014

China’s Solar Power Push – Businessweek

As the world’s largest emitter of carbon, China has decided that one of the best ways to clean up its polluted air is through solar power. The country has led the world in solar installations for the last two years and will likely do so again in 2015. It’s on pace to reach 33 gigawatts of solar power capacity by the end of 2014, 42 times more than it had in 2010 and more than exists in Spain, Italy, and the U.K. combined, according to Bloomberg New Energy Finance. (The U.S. will have 20 gigawatts by the end of this year.)

Most of China’s solar power comes from sprawling utility-scale solar farms in the country’s rural west. Now the idea is to distribute solar panels in urban areas, putting them on top of office buildings and factories and connecting them to the grid without building miles of costly transmission lines. In 2015, BNEF estimates that China will add as much as 15 gigawatts of solar capacity, enough to power roughly 16 million homes. More than half of that increase will come from cheap panels installed on commercial buildings. If the 2015 projection holds, China will have installed twice as much solar power in factories and office towers in one year than currently exists in all of Australia, one of the world’s sunniest countries.

via China’s Solar Power Push – Businessweek.

07/11/2014

China vs. India? It’s India by a Nose, Roubini Says – Businessweek

Nouriel Roubini is an India optimist. The country may have spent years lagging behind fast-growing Asian neighbors, such as China, but the NYU professor and chairman of Roubini Global Economics sees a role switch ahead, he told Bloomberg Television today.

Nouriel Roubini: Indian Tortoise Will Soon Pass Chinese Hare

Economic growth in China, weighed down by an aging population and an obsolete investment-driven economic model, is going to fall to 6.5 percent next year and will drop below 6 percent in 2016, “while in India, with the right reforms, it could go to 7 percent,” he said. “So for the first time ever the tortoise becomes the hare and the hare becomes the tortoise.”

China’s leaders know the problems they face, according to Roubini, who is visiting Hong Kong for a Barclays-sponsored conference, but so far they have been reluctant to follow through on promises to address them. “The Chinese understand their growth model is unsustainable—too much fixed investment, not enough consumption,” Roubini said.

via China vs. India? It’s India by a Nose, Roubini Says – Businessweek.

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

Poetry of a Former Foxconn Worker in China Evokes Images of Factory Life – Businessweek

Before he took his life in late September, 24-year-old Xu Lizhi was a regular contributor of poetry to Foxconn People, the internal newspaper at his sprawling factory complex in Shenzhen. Only after he died did his writing find a wider audience, as factory friends collected his poems for publication in the Shenzhen News.

Safety netting posted around a building in Foxconn City in Shenzhen, China

Like millions of other young Chinese, Xu left his home in rural Guangdong province in 2010 to find work in the big city; he had been working intermittently on Foxconn (2317:TT)’s electronics assembly line for four years.

Following a series of 14 suicides in 2010, the Taiwanese manufacturing giant installed safety nets to prevent workers from jumping off dormitory roofs at its Shenzhen plant. It tried to improve life for its workers: The company raised basic wages and installed basketball courts and Olympic-size swimming pools for recreation. Worker suicides declined but did not disappear.

Xu’s poetry gives voice to the alienation he and many others of his generation feel on the assembly line: “I swallowed a moon made of iron/ They refer to it as a nail/ I swallowed this industrial sewage, these unemployment documents/ Youth stooped at machines die before their time/ I swallowed the hustle and the destitution/ Swallowed pedestrian bridges, life covered in rust / I can’t swallow any more/ All that I’ve swallowed is now gushing out of my throat/ Unfurling on the land of my ancestors/ Into a disgraceful poem.”

A frequent theme is how he felt the monotony of factory life sapping away “the last graveyard of our youth.” In one poem, Xu wrote: “With no time for expression, emotion crumbles into dust/ They have stomachs forged of iron/ Full of thick acid, sulfuric and nitric/ Industry captures their tears before they have the chance to fall.”

Xu also described the desolate conditions of his rented room: “A space of ten square meters/ Cramped and damp, no sunlight all year/ Here I eat, sleep, sh–, and think/ Cough, get headaches, grow old, get sick but still fail to die/ Under the dull yellow light again I stare blankly, chuckling like an idiot.”

via Poetry of a Former Foxconn Worker in China Evokes Images of Factory Life – Businessweek.

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.

05/11/2014

As China Urbanizes, Fears Grow That Cropland Is Vanishing – Businessweek

As China’s leaders continue to pursue sweeping urbanization plans, concerns are growing about the fate of the country’s cropland. The latest sign: a joint ministerial announcement that officials must protect agricultural plots on city outskirts from runaway development.

Farming in Gangzhong, China

Prime arable land bordering municipalities and towns and located near traffic routes will be formally categorized as “permanent basic farmland” and preserved for cultivation, announced the Ministry of Land and Resources and Ministry of Agriculture in a notice issued on Monday. Fourteen cities, including Beijing, Shanghai and Guangzhou, will be first to carry out the policy, which is to be rolled out nationwide by the end of 2016.

“During rapid urbanization, high-yield farmland has been gradually ‘eaten’ by steel and cement,” said Land and Resources Minister Jiang Daming, reported the official Xinhua News Agency on Nov. 3. “It is a pressing problem that the expansion of cities is encroaching on prime farmland,” said the notice.

via As China Urbanizes, Fears Grow That Cropland Is Vanishing – Businessweek.

04/11/2014

Ebola crisis highlights China’s philanthropic shortfall – China – Chinadaily.com.cn

China has contributed over $120 million to fight the spread of the Ebola virus, but its billionaire tycoons – it has more than anywhere outside the United States – have, publicly at least, donated little to the cause, underscoring an immature culture of philanthropy in the world’s second-biggest economy.

Ebola crisis highlights China's philanthropic shortfall

As the ranks of China’s wealthy and the success of its corporations grow, donating to good causes has yet to take off in a significant way. China sits towards the bottom of the list of countries where people give money to charity, volunteer or help a stranger, according to The World Giving Index, compiled by the Charities Aid Foundation.

China rushes help to Ebola-hit countries

Donations to charities totalled 98.9 billion yuan ($16.1 billion) in 2013, according to Chinese government data, recovering from two straight years of declines. For comparison, Americans gave more than $335 billion, according to the National Philanthropic Trust website.

Many big Chinese companies have invested in Africa – China is Africa’s leading trading partner – and several operate in West Africa, where Ebola has been at its most lethal, killing close to 5,000 people. These include construction, infrastructure and telecoms firms such as Huawei Technology Co Ltd, China Henan International Cooperation Group and China Communications Construction Co Ltd.

A Huawei spokeswoman said Africa was an important market, but declined to comment on philanthropy or specific ventures in Ebola-hit countries. China Henan and China Communications Construction did not respond to requests for comment.

The World Food Programme (WFP) last month called on Chinese firms and tycoons to donate more to fighting Ebola.

“No one’s been willing to do anything big yet,” said Brett Rierson, the WFP’s China representative.

via Ebola crisis highlights China’s philanthropic shortfall – China – Chinadaily.com.cn.

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