Posts tagged ‘Li Keqiang’

10/02/2015

Pollution: The cost of clean air | The Economist

A DESOLATE scene surrounds Little Zhang’s Tyre Repair in the dusty rock-mining township of Shijing, in the northern province of Hebei. Zhang Minsheng, the owner, still gets some business from passing traffic. But the recent closure of nearby rock quarries, because of air-pollution restrictions, has taken its toll. He reckons his monthly income has fallen by 30-40% to around 4,000 yuan ($640). Next door a wholesale coal business has closed. So too have a small family-owned barbecue restaurant and an alcohol, tobacco and grocery store. Red characters posted by their entrances still forlornly proclaim their “grand opening”.

Last year on a typically smoggy day in Beijing, Li Keqiang, the prime minister, declared “war” on air pollution—a problem that has become a national fixation. Smog remains a grave danger in most Chinese cities, but environmental measures are beginning to show teeth. Regulators in the most polluted provinces are ordering mass closures of offending enterprises. In some areas officials are being punished for failing to control pollution. Policymakers are placing less emphasis on GDP growth—long an obsession of officials at all levels of government—and talking up greenness.

The transformation will be painful. China’s new toughness on polluting quarries, mills and factories coincides with an economic slowdown that will make it harder to create new jobs for those laid off. Slower growth is in line with the government’s efforts to curb wasteful investment, and with it a dangerous build-up of debt. The slowdown also happens to be helpful in curtailing pollution: China’s consumption of coal, a huge contributor to smog as well as to climate-change emissions, fell slightly in 2014 after 14 years of growth.

Mr Li’s war is especially bloody in Hebei, which is blamed for much of the smog in Beijing. Keeping the air of the capital clean is a political priority. Chinese leaders have been embarrassed by the damage caused to China’s international image by the city’s relentlessly grey skies. They worry that the smog could fuel dissatisfaction with the government and undermine stability in the capital, as well as affect their own and their families’ health. Dutifully, Hebei, which surrounds Beijing, has been trying to clean up. Since the beginning of 2013 it has reported closing down 18,000 polluting factories. In January Hebei Daily, a state-run newspaper, said that in Mancheng county, to which Shijing township belongs, 37 rock quarries and rubble pits had been shut.

via Pollution: The cost of clean air | The Economist.

29/01/2015

China eyes mass innovation, entrepreneurship as new engine – Xinhua | English.news.cn

China’s State Council pledged to take various steps to create an amicable environment for innovation and entrepreneurship in order to power growth and generate jobs.

China should embrace the trend of mass entrepreneurship and innovation in the Internet age, a statement released after an executive meeting of the State Council presided over by Premier Li Keqiang said.

The statement said China will foster a platform offering low-cost services in a variety of areas to micro businesses and individual start-ups that show innovation.

The government will also step up policy support, such as simplifying registration procedures and giving subsidies, to innovative businesses. They will improve financing systems to give special support to start-up companies, according to the statement.

Although China’s broader economy is slowing, China’s young entrepreneurs are driving a wave of startups that has become a bright spot for the economic landscape and an important engine for future growth.

The number of newly founded companies in China surged almost 46 percent year on year to 3.65 million in 2014, the latest data showed.

via China eyes mass innovation, entrepreneurship as new engine – Xinhua | English.news.cn.

28/01/2015

China plans to set 2015 growth target at ‘around 7 percent’ – sources | Reuters

China plans to cut its growth target to around 7 percent in 2015, its lowest goal in 11 years, sources said, as policymakers try to manage slowing growth, job creation and pursuing reforms intended to make the economy more driven by market forces.

The growth target, which is set to be announced by Premier Li Keqiang at the annual parliament session in March, was endorsed by top party leaders and policymakers at a closed-door Central Economic Conference in December, said a number of people with knowledge of the outcome of meeting who spoke to Reuters.

The target, which is in line with market expectations, has not been previously reported.

“This year’s economic growth target will be around 7 percent, but the 7 percent should be the bottom line,” said one of the sources, an influential economist who advises the government.

via Exclusive: China plans to set 2015 growth target at ‘around 7 percent’ – sources | Reuters.

12/12/2014

China opens key section of massive water project | Reuters

China on Friday opened a key section of a massive and ambitious plan to transport water from wetter central and southern parts of the country up to its arid north, including the capital Beijing, state media reported.


Embed from Getty Images

The $62 billion undertaking – dreamed up by former Communist Party leader Mao Zedong in the 1950s – is designed to supply China’s parched and pollution-ridden north, home to more than 300 million people and countless water-intensive businesses.

The latest section opened begins at Danjiangkou reservoir in central China’s Hubei province and runs for 1,432 km (890 miles), the official Xinhua news agency reported.

It can supply on average 9.5 billion cubic meters of water annually for about 100 million people in places like Beijing, Tianjin and the nearby provinces of Henan and Hebei, Xinhua said.

Some provinces in northern China have less freshwater per person than the desert countries of the Middle East. Of the country’s total, water-intensive industries such as clothing and electronics manufacturing consume a quarter – a share the think-tank 2030 Water Resources Group expects to grow to a third by 2030.

The first stage of China’s south-to-north transfer brought water to the industry-heavy northeast, but it was barely useable when it reached Tianjin because it picked up pollutants and sediment while flowing north through polluted soil.

That has raised concerns about the latest phase – a decade in the making – bringing water via a different, less polluted route.

Some experts have also voiced concern that the project’s extensive tapping of water from the Yangtze River and its tributaries may damage one of China’s most important water ways.

via China opens key section of massive water project | Reuters.

25/11/2014

China’s Railroad Ventures Abroad Project Soft Power – Businessweek

Last week state-owned China Railway Construction Corp. (CRCC) signed a lucrative contract with Nigeria to build an 870-mile coastal railroad from Lagos to Calabar, two of the West African nation’s leading cities. The price tag: $12 billion. That makes it the largest single overseas engineering contract awarded to any Chinese company, according to state-run Xinhua newswire.

Chinese and Venezuelan construction workers build an elevated platform at China Railway Engineering Corporation's (CREC) Tinaco-Anaco railway project in Los Dos Caminos, Venezuela in 2012

Beijing hopes many more deals will follow. In recent months, Chinese leaders on overseas missions have often bragged of the country’s prowess in building railroads, including high-speed bullet trains.

In May, Li Keqiang made his first diplomatic trip as China’s premier to Africa, visiting Ethiopia, Nigeria, Angola, and Kenya. At the headquarters of the African Union in Addis Ababa, Ethiopia, he said he envisioned a bright future for the continent when African capitals would be connected by high-speed rail. And China, he added, according to Xinhua, could “help make this dream come true.”

In early November, a consortium of Chinese companies led by CRCC won a $3.7 billion contract to build a bullet train in Mexico; that contract was canceled a few days later due to suspected corruption on the Mexican side. But the aborted deal is still a sign of overseas demand for China’s rail technology.

Nor are rail deals limited to developing nations: In October, Boston’s transit authority signed a $567 million contract with China’s CNR Corp. to build 284 subway cars.

In addition to stimulating domestic manufacturing demand for steel and rail equipment exports, China’s leaders hope the flurry of railway deals will have soft power benefits as well. The Nigerian railroad will be “a mutually beneficial project,” as CRCC Chairman Meng Fengchao told Xinhua. He pledged to hire at least several thousand workers from Nigeria; in the past, Chinese companies have been criticized for bringing in Chinese workers to complete large engineering projects, thus denying work opportunities to local populations.

via China’s Railroad Ventures Abroad Project Soft Power – Businessweek.

20/11/2014

China Railway Construction wins $12 billion Nigeria deal: Xinhua | Reuters

China Railway Construction Corp (601186.SS) (1186.HK) has signed a deal worth nearly $12 billion with Nigeria to build a railway along the West African nation’s coast, Chinese state news agency Xinhua said on Thursday.

The announcement comes shortly after Mexico abruptly scrapped a $3.75 billion high-speed rail contract with a consortium led by the Chinese firm over transparency concerns.

China is pushing to win railway construction projects around the world as part of plans to export its high-speed technology and lift its manufacturing sector up the value chain.

Beijing is also pumping money into the sector, with more than $100 billion worth of infrastructure projects approved in late October and early November in a bid to bolster slowing growth in the world’s second largest economy.

“It is a mutually beneficial project,” CRCC Chairman Meng Fengchao told Xinhua. He added the railway project will lead to equipment exports from China worth $4 billion, including construction machinery, trains and steel products.

via China Railway Construction wins $12 billion Nigeria deal: Xinhua | Reuters.

13/11/2014

China offers ASEAN friendship treaty as South China Sea tension bubbles | Reuters

China’s Prime Minister Li Keqiang proposed a “friendship” treaty with Southeast Asian countries on Thursday but reiterated that territorial disputes in the South China Sea should be settled directly between the countries involved.

(L-R) Australian Prime Minister Tony Abbott, Cambodian Prime Minister Hun Sen, Indian Prime Minister Narendra Modi, Brunei's Sultan Hassanal Bolkiah, China's Premier Li Keqiang, Myanmar's President Thein Sein, U.S. President Barack Obama, Malaysia's Prime Minister Najib Razak and Russia's Prime Minister Dmitry Medvedev pose for a photo before the East Asia Summit (EAS) plenary session during the ASEAN Summit in Naypyitaw November 13, 2014. REUTERS/Soe Zeya Tun

China, Taiwan and four Association of Southeast Asian Nations (ASEAN) have competing claims in the sea where concern is growing of an escalation in disputes even as the claimants work to establish agreements to resolve them.

“China … stands ready to become the first dialogue partner to sign with ASEAN a treaty of friendship and cooperation,” Li told leaders at a summit of East Asian countries in Myanmar.

The treaty is seen as an attempt by Beijing to dispel any notion it is a threat.

Li added China was willing to sign legal documents with more countries in the region on good-neighborliness and friendship.

Still, the Chinese premier reiterated Beijing’s resolve to safeguard its territorial sovereignty and its position that disputes concerning the South China Sea should be settled directly rather than collectively or through arbitration.

The competing maritime claims have formed an undercurrent of tension at the East Asian and ASEAN summits in Myanmar this week.

The Philippines, one of the ASEAN claimants, has previously irked Beijing by seeking international arbitration over China’s claims to about 90 percent of the South China Sea.

Diplomatic sources from the Philippines reacted coolly to China’s treaty proposal, saying that it lacked substance and was similar to a 2012 proposal made by Manila and ignored by Beijing.

Li will meet the heads of ASEAN countries behind closed doors later on Thursday, with Southeast Asian leaders hoping to persuade their giant neighbor to take a less bellicose approach to overlapping claims in the South China Sea.

The Philippines and Vietnam have sought closer U.S. ties to counter what they see as China’s aggression in the region.

via China offers ASEAN friendship treaty as South China Sea tension bubbles | Reuters.

29/10/2014

China’s Jobs Picture Not As Rosy As It Looks – China Real Time Report – WSJ

China’s Premier, Li Keqiang, has said repeatedly how happy he is with the strength of the country’s job market, despite a slowing economy. That’s the main reason he sees little need to ease policy aggressively to spur growth, he says.

Officials attribute low unemployment to a drop in the working-age population, along with the development of the service sector, which is more labor-intensive than manufacturing.

But a deeper look into the government’s jobs data shows that the current employment situation is more worrisome than it appears. Across China’s cities, 10.82 million new jobs were created over the first nine months of the year, up 1.5% from the same period of 2013, according to official data released on Friday. That’s slowest rise in five years.

Migrant workers are normally the first to take the brunt of an economic slowdown, since more than one fifth of them work in the construction sector, which is highly sensitive to economic cycles. Employers also tend fire migrant workers first if business is bad rather than laying off urbanites with permanent resident status, economists have said.

“Over the past few years, especially after 2009, the government stepped up investment in infrastructure and property market. That has created many job opportunities for migrant workers,” said Li Shi, an economics professor at Beijing Normal University. “But now a sluggish property market has affected migrant workers.”

The global financial crisis cut China’s economic growth from double-digit rates to 6.6% in early 2009, and left some 200 million migrant laborers facing unemployment and a fraying safety net.

The government responded with a four trillion yuan ($650 billion) stimulus package that helped China rebound rapidly from the global downturn, but also resulted in a series of problems such as industrial overcapacity and environmental pollution.

This time around the economic situation is less dire, and the reaction has been more restrained. Since economic growth started to falter earlier this year, policy makers have contented themselves with a series of targeted easing measures like accelerated spending on infrastructure and special lending programs from the central bank. They have also brought in measures to spur mortgage lending and reduce financing costs and tax burdens for small firms.

via China’s Jobs Picture Not As Rosy As It Looks – China Real Time Report – WSJ.

16/09/2014

Xi’s India visit highlights changing power dynamic – Businessweek

Chinese President Xi Jinping’s trip to India this week highlights subtle shifts in the regional power dynamic that are bringing warmer ties between the two Asian giants, challenging China’s traditional relationship with Pakistan, and opening a new chapter in Beijing’s ongoing competition for influence with arch-rival Japan.

Xi is due in New Delhi on Wednesday for a three-day visit focused on trade, investment and the resolution of decades-old border disputes. With the world’s second-largest economy and a proven track record at building highways, railways, and industrial zones, China has much to offer India as it seeks to upgrade its creaky infrastructure.

The visit is the latest sign of easing suspicions between the two huge countries — which between them have 2.6 billion people — dating from a month-long border war in 1962 that left around 2,000 soldiers dead. That conflict ended in a standoff with both sides accusing the other of occupying its territory.

Xi’s visit “will definitely enhance the bilateral political mutual trust,” Chinese Assistant Foreign Minister Liu Jianchao told reporters in Beijing last week.

While ties have been steadily growing for years, they’ve been given a major boost under new Indian Prime Minister Narendra Modi, who’s signaled he wishes to pursue a more vigorous foreign policy. Xi is the first Chinese head of state to visit in eight years, while the country’s prime minister, Li Keqiang, made India his first overseas visit shortly after taking office last year.

“Good relations with India are a key part of China’s regional strategy and Xi’s visit creates the opportunity for direct face-to-face communication on the problems that still exist, such as the border issue,” said Zhao Gancheng, Director of the Asia-Pacific Center of the Shanghai Institute for International Studies.

via Xi’s India visit highlights changing power dynamic – Businessweek.

11/07/2014

Logistics: The flow of things | The Economist

TWO examples of the infrastructure that has helped make China a mighty trading power can be found on the outskirts of Shanghai: Yangshan, the world’s busiest container port, and Pudong airport, the world’s third-biggest handler of air cargo. Radiating out across the country are more than 100,000km (62,000 miles) of expressways and a comparable length of railways. Given all this new infrastructure, you might expect China to have a world-class logistics industry, too. It does not.

Logistics covers transportation, warehousing and the management of goods. Its Chinese translation, wu liu, literally means “the flow of things”. But that flow within the country is costly and cumbersome. Much of the investment in infrastructure has gone to lubricate exports. Now, as China’s government shifts its focus to consumption at home it is finding that the domestic logistics industry is woefully inefficient.

Logistics spending is roughly equivalent to 18% of GDP, higher than in other developing countries (India and South Africa spend 13-14% of GDP) and double the level seen in the developed world. Li Keqiang, the prime minister, recently echoed industry’s complaints that sending goods from Shanghai to Beijing can cost more than sending them to America.

Most warehouses are old and unmechanised. Goods are transferred up to a dozen times from vehicle to vehicle as they make their way across the country. There are no cargo hubs that help link freight from rail to road. The decrepit and overloaded lorries that ply the new highways are unable to find a return cargo on more than one third of their trips.

China has over 700,000 trucking operators, most of them one-man outfits. (America has about 7,000.) Scale is essential to the business, but the top 20 firms together make up barely 2% of the market. Nancy Qian of KXTX, a logistics firm, observes that companies compete so fiercely on price that most barely make any money, and so lack the funds needed to modernise or achieve economies of scale.

The industry is carved into niches, making it hard for integrated service providers to emerge. Sleepy state-owned enterprises such as Sinotrans and China Post control the markets for air freight and domestic post. Foreign express-delivery firms are salivating over the market but FedEx and UPS, for example, have been granted only limited licences for domestic delivery. More importantly, foreign firms are burdened with high costs that make it hard to compete for frugal customers against lean local rivals.

For all firms, local or foreign, a tangle of regulations, local protectionism and corruption makes getting goods across China a problem. Logistics, broadly defined, falls under the authority of nine ministries and commissions. Local governments often levy taxes on operators and demand they obtain special licences to operate. There are also heavy tolls on China’s roads, and lorries are restricted from entering most urban areas so must transfer goods onto smaller vehicles.

via Logistics: The flow of things | The Economist.

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