Posts tagged ‘Local government’

12/01/2015

Police in China shoot dead six in restive Xinjiang | Reuters

A group of “mobsters” on Monday tried to set off an explosive device in a business district in China‘s troubled western region of Xinjiang, prompting police to shoot six of them dead, the local government said.

Hundreds of people have been killed in resource-rich Xinjiang, strategically located on the borders of central Asia, in violence in the past two years between the Muslim Uighur people who call the region home and ethnic majority Han Chinese.

The government has also blamed attacks elsewhere in China, including Beijing, on Islamist militants from Xinjiang.

Monday’s violence came two months after 15 people were killed when a group threw explosives into a crowded street of vendors selling food in Xinjiang.

Police in Shule county, south of the old Silk Road city of Kashgar, had acted on a tip-off about “a suspicious person carrying an explosive device”, the Xinjiang government said on its official news website.

An axe-wielding individual tried to attack police officers and set off an explosive device, prompting the officers to shoot him, the government said.

via Police in China shoot dead six in restive Xinjiang | Reuters.

Advertisements
28/12/2013

Li drops in to help realize home dream|Politics|chinadaily.com.cn

For Li Zongyi, 77, an unexpected visitor to her home has realized her decades-long dream.

The guest was Premier Li Keqiang. During a one-day trip to Tianjin on Friday, he paid a surprising visit to Li Zongyi\’s home in the Xiyuzhuang community, one of the oldest shantytowns in the city, and promised residents that they will be able to move into new apartments in the next year.

Han Huixia, Li Zongyi\’s daughter, said: \”I have been waiting for this moment for so long. I dare not burn coal to keep warm in winter, in case there is a gas leak or a fire.\”

Like families in the Xiyuzhuang community, hundreds of millions of residents in shantytowns nationwide are expected to move into new apartments, analysts said, as the country pushes ahead with renovation projects for these areas.

Huang Xiaohu, a researcher at a consultancy center affiliated to the Ministry of Land and Resources, said the renovation of some shanty areas can be very difficult, due to the complexity of the local population, a lack of financial support, and disagreements among residents on the relocation plan.

The Xiyuzhuang community, covering 64 hectares and with low-income residents comprising 20 percent of its households, is a typical case, Huang said, as the cost of compensation is too high.

\”The only way out in this case is to let the government play the dominant role and provide residents with low-cost houses, instead of costly commercial apartments,\” he said.

A State Council meeting in June pledged to improve housing conditions for the underprivileged and to promote urbanization by accelerating shantytown reform.

Urbanization will also be pushed for another 100 million people living in the country\’s less developed western areas.

To achieve the target, the government will encourage private capital and enterprises to invest in the shantytown transformation, and will allow local authorities to use corporate bonds to solve the financing problem.

As of 2013, China has solved the housing problems of 2.18 million households living in shantytown areas and embarked on projects that could solve such problems for another 3.23 million households, 6 percent higher than planned.

Tao Ran, a professor at Renmin University of China, said the government has looked to the resettlement of residents in shanty areas to be one of its key economic drives in coming years.

But some fundamental work should be addressed before any steps are taken, he said.

Tao suggested that a universal guideline be introduced for local governments to follow during demolition of homes to avoid misconduct and conflicts.

via Li drops in to help realize home dream|Politics|chinadaily.com.cn.

10/12/2013

China to judge local governments by their debt: Xinhua | Reuters

China will soon rate the performance of local governments partly by how much debt they incur, as Beijing tries to wean the country off heavy government investment, state media said.

A farmer carries a shovel over his shoulder as he walks to tend his crops in a field that includes an abandoned building, that was to be part of an amusement park called 'Wonderland', on the outskirts of Beijing December 5, 2011. REUTERS/David Gray

The central organization department, which oversees the appointment of senior party, government, military and state firm officials, said debt will be key when evaluating performances, according to the state news agency Xinhua.

Large-scale government investment has helped China\’s gross domestic product expand at double-digit rates for the past three decades. But analysts say China\’s economy has now hit a turning point, and domestic consumption must grow and investment fall to ensure a healthy expansion.

via China to judge local governments by their debt: Xinhua | Reuters.

06/09/2012

* China Approves 25 Subway Projects

WSJ: “China has recently approved 25 subway projects by local governments, data from the country’s top economic planning agency show, as part of the central government’s efforts to boost sluggish growth in the world’s second-largest economy.

The National Development and Reform Commission has approved a total of 710.8 billion yuan ($112.1 billion) worth of investments by 18 local governments to build city subways, according to statements posted on its website Wednesday.

Most of the approvals came between June and August, according to the NDRC. The projects are expected to have an average construction time of 4.6 years, with local governments providing 40% of the funding.

Beijing has significantly accelerated approvals for new infrastructure projects by local governments as it seeks a range of avenues to jump-start growth, which slowed to a more-than-three-year-low of 7.6% in the second quarter. Recently-released key economic data from the manufacturing, trade and industrial sectors added to the gloom.

Nomura economist Zhang Zhiwei said the recent number of city subways approved was comparable with the 23 approved in early 2009, when the government unleashed a 4 trillion yuan stimulus package.

“This news suggests that the pace of fiscal policy easing has picked up,” Mr. Zhang said.”

via China Approves 25 Subway Projects – WSJ.com.

China is at it again, using infrastructure spend to boost the economy. At least this time its aimed a specific need, easing urban traffic and speeding urban travellers.

See also: https://chindia-alert.org/economic-factors/chinas-infrastructure/

02/03/2012

* China to boost local govt debt (of over USD 1.5 trillion) clean-up

China Daily: “China will boost the clean-up of thousands of millions of local government’s debt in 2012, so to guard against possible defaults that would hurt its banks, the country’s bankingregulator said Thursday.

The country will focus on cleaning up old loans made to local government financing vehicles(LGFV) while tightening new debt issues and raising cash to debt coverage ratios, China Banking Regulatory Commission (CBRC) said on its website.

The CBRC will strictly control the use of LGFV loans, while giving priority to key projects that are under construction, it said. The regulator will also improve risk monitoring and reclassify LGFV loans to relieve pressure from banks.

Local government debts had risen to 10.72 trillion yuan (1.7 trillion US dollars) by the end of 2010, accounting for about 26.9 percent of China’s gross domestic product, according to data released by the National Audit Office.

Analysts fret that if a certain proportion of the loans have gone sour, it will push up non-performing loan ratios in the banking industry and threaten banks’ credit ratings.

Local governments typically invested the money they borrowed in building infrastructure. They also faced huge repayment pressure in 2011 and now also in 2012.”

http://www.chinadaily.com.cn/china/2012-03/02/content_14735361.htm

China is taking steps to rein in the extraordinary splurge it generated in the aftermath of the 2008-09 financial crisis by encouraging local government initiatives. It is primarily this LG debt that has caused China’s debt to GDP ratio to increase from less than 20% to over 40 % in two years.

Law of Unintended Consequences

continuously updated blog about China & India

ChiaHou's Book Reviews

continuously updated blog about China & India

What's wrong with the world; and its economy

continuously updated blog about China & India