Posts tagged ‘China’

05/03/2014

How Committed Is China to Reform? A Tip From ‘The Old Perfessor’ – China Real Time Report – WSJ

One of the most important questions in the global economy is the commitment to reform by China’s new leaders. Are they more reform-oriented than the last crew, who talked a lot about economic reform but often didn’t carry through?

China Real Time did a quick analysis based on the philosophy of Casey Stengel, the garrulous former manager of the New York Yankees and Mets known by the nickname “The Old Perfessor.” As Stengel often said, “You can look it up.” So we did.

In his just-delivered 2014 work report, Premier Li Keqiang, used the word “reform” 84 times in his lengthy address.  Last year, former Premier Wen Jiabao used “reform” a mere 51 times.

“Transformation?” Mr. Li, 17; Mr. Wen, 5.

What would Mr. Li like to reform? Among many other things: socialism, markets, government, agriculture, science, investment, taxes, finance and schools.

And what would he transform? Industry and foreign trade mostly.

It won’t be easy to do all this, Mr. Li warned:  “China’s reform has entered a critical stage and a deep water zone,” he told delegates to China’s rubber-stamp parliament, the National People’s Congress. “We  must rely fully on the people, break mental shackles and vested interests with great determination.”

Or as  Mr. Stengel reportedly said: “Without losers, where would the winners be?”

via How Committed Is China to Reform? A Tip From ‘The Old Perfessor’ – China Real Time Report – WSJ.

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05/03/2014

* China to ‘declare war’ on pollution, premier says | Reuters

China is to “declare war” on pollution, Premier Li Keqiang said on Wednesday at the opening of the annual meeting of parliament, with the government unveiling detailed measures to tackle what has become a hot-button social issue.

Chinese Premier Li Keqiang gives an address during a news conference with French Prime Minister Jean-Marc Ayrault (not pictured) in the Great Hall of the People in Beijing December 6, 2013 file photo. REUTERS/Mark Ralston/Pool

It is not uncommon for air pollution in parts of China to breach levels considered by some experts to be hazardous. That has drawn much public ire and is a worry for the government, which fears any discontent that might compromise stability.

“We will resolutely declare war against pollution as we declared war against poverty,” Li told the almost 3,000 delegates to the country’s largely rubber-stamp legislature in a wide-ranging address carried live on state television.

Curbing pollution has become a key part of efforts to upgrade the economy, shift the focus away from heavy industry and tackle the perennial problem of overcapacity, with Li describing smog as “nature’s red-light warning against inefficient and blind development”.

“This is an acknowledgement at the highest level that there is a crisis,” said Craig Hart, expert on Chinese environmental policy and associate professor at China’s Renmin University.

“Their approach is going to have to be pro-economy. I think they will pump money into upgrading plants. This could be another green stimulus although it is not being packaged that way.”

China has published a series of policies and plans aimed at addressing environmental problems but it has long struggled to bring big polluting industries and growth-obsessed local governments to heel.

Li said efforts would focus first on reducing hazardous particulate matter known as PM 2.5 and PM 10 and would also be aimed at eliminating outdated energy producers and industrial plants, the source of much air pollution.

China will cut outdated steel production capacity by a total of 27 million tonnes this year, slash cement production by 42 million tonnes, and also shut down 50,000 small coal-fired furnaces across the country, Li said.

The 27 million tonnes of steel, equivalent to Italy’s production capacity, amounts to less than 2.5 percent of China’s total, and industry officials have warned that plants with another 30 million tonnes of annual output went into construction last year.

The targeted cement closures amount to less than 2 percent of last year’s total production.

The battle against pollution will also be waged via reforms in energy pricing to boost non-fossil fuel power. Li promised change in “the way energy is consumed and produced” through the development of nuclear and renewables, the deployment of smart power transmission grids, and the promotion of green and low-carbon technology.

The National Development and Reform Commission (NDRC), the country’s economic planner, said in its report that new guidelines would be issued on relocating key industries away from urban centers to help tackle smog.

via China to ‘declare war’ on pollution, premier says | Reuters.

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05/03/2014

* China signals focus on reforms and leaner, cleaner growth | Reuters

China sent its strongest signal yet that its days of chasing breakneck economic growth were over, promising to wage a “war” on pollution and reduce the pace of investment to a decade-low as it pursues more sustainable expansion.

An attendant serves tea for China's President Xi Jinping during the opening session of the National People's Congress (NPC) at the Great Hall of the People in Beijing, March 5, 2014. REUTERS-Jason Lee

In a State of the Union style address to an annual parliament meeting that began on Wednesday, Premier Li Keqiang said China aimed to expand its economy by 7.5 percent this year, the highest among the world’s major powers, although he stressed that growth would not get in the way of reforms.

In carefully crafted language that suggested Beijing had thought hard about leaving the forecast unchanged from last year, Li said the world’s second-largest economy will pursue reforms stretching from finance to the environment, even as it seeks to create jobs and wealth.

After 30 years of red-hot double-digit growth that has lifted millions out of poverty but also polluted the country’s air and water and saddled the nation with ominous debt levels, China wants to change tack and rebalance its economy.

“Reform is the top priority for the government,” Li told around 3,000 hand-picked delegates in his first parliamentary address in a cavernous meeting hall in central Beijing.

“We must have the mettle to fight on and break mental shackles to deepen reforms on all fronts.”

Idle factories will be shut, private investment encouraged, government red-tape cut and work on a new environmental protection tax speeded up to create a greener economy powered by consumption rather than investment, Li said.

via China signals focus on reforms and leaner, cleaner growth | Reuters.

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04/03/2014

Xi vows opposition against words, actions damaging ethnic unity – Xinhua | English.news.cn

Chinese President Xi Jinping (R), also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, visits members of the 12th National Committee of the Chinese People’s Political Consultative Conference (CPPCC) from ethnic minority groups and joins their panel discussion in Beijing, capital of China, March 4, 2014. Yu Zhengsheng, chairman of the National Committee of the CPPCC and a member of the Standing Committee of the Political Bureau of the CPC Central Committee, also attended the event. (Xinhua/Ding Lin)

Chinese President Xi Jinping (R), also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, visits members of the 12th National Committee of the Chinese People's Political Consultative Conference (CPPCC) from ethnic minority groups and joins their panel discussion in Beijing, capital of China, March 4, 2014. Yu Zhengsheng, chairman of the National Committee of the CPPCC and a member of the Standing Committee of the Political Bureau of the CPC Central Committee, also attended the event. (Xinhua/Ding Lin)

BEIJING, March 4 (Xinhua) — Chinese President Xi Jinping on Tuesday called for resolute opposition to any words and actions that damage the country’s ethnic unity.

“We will build a ‘wall of bronze and iron’ for ethnic unity, social stability and national unity,” he said while joining a panel discussion with members from the minority ethnic groups of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC).

Xi said the tradition of all ethnic groups in the country “breathing the same air and sharing the same fate” should be handed down from generation to generation.

“Unity and stability are blessings, while secession and turmoil are disasters,” he said. “People of all ethnic groups of the country should cherish ethnic unity.”

via Xi vows opposition against words, actions damaging ethnic unity – Xinhua | English.news.cn.

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04/03/2014

Is China Siding With Putin in the Ukraine Crisis? – Businessweek

China’s leaders are struggling to come up with a comprehensible position on the crisis in Ukraine. The Chinese might naturally sympathize with Vladimir Putin, someone willing to stick it to Western leaders such as President Obama. However, China has long opposed actions that smack of interference in other countries’ internal affairs, in part to keep outsiders away from such sensitive issues as Tibet and Chinese dissidents.

Chinese Foreign Minister Wang Yi

So for now, the government’s solution seems to be simple: obfuscate. The Chinese and Russian foreign ministers spoke by telephone today, and while Russia’s Sergei Lavrov said afterwards that the two countries are in agreement about the crisis, China’s official spokesman shied away from taking a stand.

First, the Russian take: According to the Voice of America, Putin’s foreign ministry said today, “Russia and China have coinciding views on the situation in Ukraine.”

via Is China Siding With Putin in the Ukraine Crisis? – Businessweek.

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03/03/2014

* China punishes 829 judges, court staff for corruption in 2013 – Xinhua | English.news.cn

China investigated and punished 829 judges and other court staff for corruption in 2013, up 42.3 percent year on year, the Supreme People’s Court (SPC) said on Sunday.

The main entrance to the Supreme People's Cour...

The main entrance to the Supreme People’s Court of the People’s Republic of China. (Photo credit: Wikipedia)

Among the 829 court officials, 157 were transferred to judicial organs for prosecution, 294 punished for violation of Party disciplines, and 531 punished for breaching government disciplines, the SPC said in a statement.

The SPC said 683 judges and court staff turned over illegal gains including cash, securities and payment documents, to the value of 3.32 million yuan (540,000 U.S. dollars), in 2013.

The authority will continue the “high-handed posture” in the fight against judicial corruption, said the statement.

via China punishes 829 judges, court staff for corruption in 2013 – Xinhua | English.news.cn.

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03/03/2014

What’s in a Number? For China’s Leaders, a Lot – China Real Time Report – WSJ

After years as a planning formality, China’s official target for economic growth is posing a problem for the country’s leaders amid confusion about the signals the goal sends — and whether it even matters.

Premier Li Keqiang will announce the annual GDP target in a speech Wednesday to the legislature.

Some economists see the growth target as a holdover from the days of the planned economy and a symbol of short-term thinking. They say officials naturally will try to exceed the goal, generating growth without regard to environmental and social ills.

“Targeting has achieved the goal of providing economic development incentives, but it also created a whole host of problems with land policy, with local government debt, with the banking system and generally rising debt levels,” said Li Wei, an economics professor at Beijing’s Cheung Kong Graduate School of Business.

At issue for Chinese leaders is where to set the target, given that overall growth is slowing – perhaps even faster than Beijing would like. Setting a high target would show that the government still places a premium on growth. A lower target would signal that the government’s focus has shifted from growth at any cost to tackling debt, tax and other structural problems.

Local media, citing unidentified sources inside the government, say this year’s target is likely to repeat last year’s aim of “about 7.5%” growth. Officials may opt to soften their wording, calling the figure an “expectation” rather than a target, Mr. Li said.

For most of the past 20 years the target has been set between 7%-8%. In most years China exceeded it handily, on average by two percentage points. It missed only once, in 1998, by a whisker.

China’s gross domestic product grew 7.7% in 2013, the same as the year before. But with mounting debt and recent signs of weakness in the manufacturing sector, many economists doubt the economy can keep up a similar pace.

“I think fixing it at 7.5% will prove to be a very awkward situation for the government,” said Yao Wei, an economist at Société Générale. “It would be better to give themselves some leeway.”

via What’s in a Number? For China’s Leaders, a Lot – China Real Time Report – WSJ.

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03/03/2014

India to investigate suspected kickbacks in Rolls-Royce deal | Reuters

India’s defence ministry said on Monday it had ordered a bribery investigation over state-run Hindustan Aeronautics Limited‘s (HAL) purchase of jet engines from Britain’s Rolls-Royce Holdings (RR.L) in a deal worth at least $1.2 billion.

Hindustan Aeronautics Limited

Hindustan Aeronautics Limited (Photo credit: Wikipedia)

The Central Bureau of Investigation, the country’s top crime-fighting agency, will look into more than 5 billion rupees ($80 million) in alleged kickbacks in the deal that was signed in 2011, a ministry official told Reuters.

No comment was immediately available from Rolls-Royce’s office in India.

Suspicions of corruption in India’s defense procurement program have for years delayed the modernization of the armed forces of the world’s most populous nation that continue to rely heavily on outdated Soviet-designed equipment.

The air force has been dogged by a series of crashes of its Russian-built MiG fighter jets, while an accident aboard a Soviet-made submarine that killed two officers last week led the navy’s chief of staff to resign.

India’s Congress party-led government is keen to be seen as tough on graft before parliamentary elections due by May. The party, lagging in the polls, has faced rising public anger over a string of corruption scandals in its current term.

The probe into the HAL deal follows the arrest in Britain last month of Indian-born businessman Sudhir Choudhrie and his son in a bribery investigation by the Serious Fraud Office into Rolls-Royce’s dealings in China and Indonesia.

Both men denied any wrongdoing and have been released on bail, their spokesman said last month.

via India to investigate suspected kickbacks in Rolls-Royce deal | Reuters.

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03/03/2014

China’s bloody train station attack shows how terrorism is spreading out of Xinjiang

The map does seem to show that terrorism is moving well outside of Xinjiang into major urban areas.

03/03/2014

China’s media says deployment of troops for war with Japan is now complete; waiting for opportune time to attack

Let’s hope this is mere “sabre ratling” rather than real. But given China’s past conflicts with neighbours around border/territorial issues (India, Russia, Vietnam – see https://chindia-alert.org/political-factors/chinese-tensions/) this may be genuine preparation.

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