Posts tagged ‘South Korea’

22/08/2016

Capturing China’s $5 trillion productivity opportunity | McKinsey & Company

It won’t be easy, but shifting to a productivity-led economy from one focused on investment could add trillions of dollars to the country’s growth by 2030.

After three decades of sizzling growth, China is now regarded by the World Bank as an upper-middle-income nation, and it’s on its way to being one of the world’s advanced economies. The investment-led growth model that underpinned this extraordinary progress has served China well. Yet some strains associated with that approach have become evident.In 2015, the country’s GDP growth dipped to a 25-year low, corporate debt soared, foreign reserves fell by $500 billion, and the stock market dropped by nearly 50 percent. A long tail of poorly performing companies pulls down the average, although top-performing Chinese companies often have returns comparable with those of top US companies in their industries. More than 80 percent of economic profit comes from financial services—a distorted economy. Speculation that China could be on track for a financial crisis has been on the rise.

The nation faces an important choice: whether to continue with its old model and raise the risk of a hard landing for the economy, or to shift gears. A new McKinsey Global Institute report, China’s choice: Capturing the $5 trillion productivity opportunity, finds that a new approach centered on productivity could generate 36 trillion renminbi ($5.6 trillion) of additional GDP by 2030, compared with continuing the investment-led path. Household income could rise by 33 trillion renminbi ($5.1 trillion), as the exhibit shows.

Pursuing a new economic model

China has the capacity to manage the decisive shift to a productivity-led model. Its government can pull fiscal and monetary levers, such as raising sovereign debt and securing additional financing on the basis of 123 trillion renminbi in state-owned assets. China has a vibrant private sector, earning three times the returns on assets of state-owned enterprises. There are now 116 million middle-class and affluent households (with annual disposable income of at least $21,000 per year), compared with just 2 million such households in 2000. And the country is ripe for a productivity revolution. Labor productivity is 15 to 30 percent of the average in countries that are part of the Organisation for Economic Co-operation and Development (OECD).

A new productivity-led model would enable China to create more sustainable jobs, reinforcing the rise of the consuming middle class and accelerating progress toward being a full-fledged advanced economy. Such a shift will require China to steer investment away from overbuilt industries to businesses that have the potential to raise productivity and create new jobs. Weak competitors would need to be allowed to fail rather than drag down profitability in major sectors. Consumers would have more access to services and opportunities to participate in the economy.

Making this transition is an urgent imperative. The longer China continues to accumulate debt to support near-term goals for GDP growth, the greater the risks of a hard landing. We estimate that the nonperforming-loan ratio in 2015 was already at about 7 percent, well above the reported 1.7 percent. If no visible progress is made to curb lending to poorly performing companies, and if the performance of Chinese companies overall continues to deteriorate, we estimate that the nonperforming-loan ratio could rise to 15 percent. This would trigger a substantial impairment of banks’ capital and require replenishing equity by as much as 8.2 trillion renminbi ($1.3 trillion) in 2019. In other words, every year of delay could raise the potential cost by more than 2 trillion renminbi ($310 billion). Although such an escalation would not lead to a systemic banking crisis, a liquidity crunch among corporate borrowers and waning confidence of investors and consumers during the recovery phase would have a significant negative impact on growth.

Our report identifies five major opportunities to raise productivity by 2030:

  • unleashing more than 39 trillion renminbi ($6 trillion) in consumption by serving middle-class consumers better
  • enabling new business processes through digitization
  • moving up the value chain through innovation, especially in R&D-intensive sectors, where profits are only about one-third of those of global leaders
  • improving business operations through lean techniques and higher energy efficiency, for instance, which could deliver a 15 to 30 percent productivity boost
  • strengthening competitiveness by deepening global connections, potentially raising productivity by 10 to 15 percent

Capturing these opportunities requires sweeping change to institutions. China needs to open up more sectors to competition, enable

corporate restructuring, and further develop its capital markets. It needs to raise the skills of the labor force to fill its talent gap and to sustain labor mobility. The government will need to manage conflicts among many stakeholders, as well as shift governance and incentives that rewarded a single-minded focus on rising GDP, even as it modernizes its own processes.

Exactly how can China’s economy become more productive? Go to Tableau Public to examine how six industry archetypes contribute to the country’s growth by province.

Source: Capturing China’s $5 trillion productivity opportunity | McKinsey & Company

02/08/2016

India to impose temporary anti-dumping duty on some steel products | Reuters

An Indian government body has recommended provisional anti-dumping duty on imports of hot-rolled steel products, a government statement said on Tuesday, to reduce overseas purchases of the alloy and shield local mills.

The anti-dumping duty will come into effect after New Delhi formally notifies the tax.

The Directorate General of Anti Dumping recommended the duties on steel products from China, Japan, South Korea, Russia, Brazil and Indonesia, the statement said.Indian steelmakers such as the Steel Authority of India (SAIL.NS) , JSW Steel (JSTL.NS) and Tata Steel (TISC.NS) had lobbied for protectionist measures to prevent cheap overseas purchases that were undercutting local mills and squeezing margins.

Source: India to impose temporary anti-dumping duty on some steel products | Reuters

29/07/2016

China Steels Its Resolve, But ‘Zombies’ Abound – China Real Time Report – WSJ

China’s steel industry is a test case for the nation’s ability to restructure overbuilt parts of the economy, and so far it’s not going very well.

Seven months into 2016, China has cut just 30% of the 45 million tons of steel capacity it has pledged to pare this year. And a Renmin University study found that more than half of China’s steel companies are “zombies.

”They define zombie firms as companies that have received below-market interest rates for two years running — a sign that they are being artificially propped up by their local governments or other government financing. Essentially, they are dependent on cheap financing to stay alive.Steel firms led the list, with 51.4% zombies in the sector, followed by the property sector, with 44.5% zombies and construction with 31.2%.

Renmin economists said local governments long nurtured sectors such as steel with the central government’s blessing. Now that the pressure is on to scale back, they tend to resist central government calls for cuts, given the impact on jobs, local economic growth and officials’ promotions, economists say.

An indication of that resistance is seen in recent data. Despite calls from Prime Minister Li Keqiang on down to turn off blast furnaces and shutter steel production lines, the industry posted record daily crude steel production in June, driven by easy money policies and a speculation-fueled upturn in the property market — which is itself suffering from overcapacity. Industry Vice Minister Fei Feng told reporters this week he didn’t expect a recent rebound in steel prices to last.

“For the purpose of political performance and maintaining stability, local governments continued to give blood to those zombie firms in various forms that were on the brink of bankruptcy,” the Renmin report said, adding that governments should interfere less in how companies operate and accelerate reform of state companies.

Officials have blamed this year’s slow progress on capacity trim on the lengthy negotiations required to allocate those cuts among China’s 28 provincial governments.

China, which accounts for half of global steel production, remains confident it will fulfill capacity cut targets for 2016, industry Vice Minister Feng told reporters, adding that the reductions so far this year are in line with expectations.

In all, China has vowed to cut up to 150 million tons of extraneous steel production over the next five years. Even that goal targets only 10% of the nation’s excess steel capacity, which is currently around 30%, according to industry analysts. This comes as rising exports fuel tension with overseas companies and labor groups alleging that China is selling steel at prices below its cost of production.

Beijing’s counter argument is a bit of a circular one: The problem isn’t that China is making too much steel, but that global demand is inadequate.

A disproportionate number of steelmakers are state-owned enterprises, a group that accounts for some 55% of China’s corporate debt but only produces 22% of economic output, according to International Monetary Fund data. China’s corporate debt hit approximately 145% of gross domestic product in 2015, up from less than 100% in 2007, according to the International Monetary Fund, a level it characterized as “high by any measure.

”Across all sectors, zombie firms make up 7.5% of the 800,000 industrial companies between 2005 and 2013 that Renmin studied, down from a peak of about 30% in 2000 shortly before China embarked on its last serious reform of the state sector. President Xi Jinping has called for state companies to remain a core part of China’s economy.

As companies age, they are increasingly likely to become zombies. About 30% of firms founded more than three decades ago qualify as zombie firms, according to Renmin’s research, compared with just 3% among firms with less than five years’ history.

Source: China Steels Its Resolve, But ‘Zombies’ Abound – China Real Time Report – WSJ

01/07/2016

Our bulldozers, our rules | The Economist

THE first revival of the Silk Road—a vast and ancient network of trade routes linking China’s merchants with those of Central Asia, the Middle East, Africa and Europe—took place in the seventh century, after war had made it unusable for hundreds of years. Xi Jinping, China’s president, looks back on that era as a golden age, a time of Pax Sinica, when Chinese luxuries were coveted across the globe and the Silk Road was a conduit for diplomacy and economic expansion. The term itself was coined by a German geographer in the 19th century, but China has adopted it with relish. Mr Xi wants a revival of the Silk Road and the glory that went with it.

This time cranes and construction crews are replacing caravans and camels. In April a Chinese shipping company, Cosco, took a 67% stake in Greece’s second-largest port, Piraeus, from which Chinese firms are building a high-speed rail network linking the city to Hungary and eventually Germany. In July work is due to start on the third stage of a Chinese-designed nuclear reactor in Pakistan, where China recently announced it would finance a big new highway and put $2 billion into a coal mine in the Thar desert. In the first five months of this year, more than half of China’s contracts overseas were signed with nations along the Silk Road—a first in the country’s modern history.

Politicians have been almost as busy in the builders’ wake. In June Mr Xi visited Serbia and Poland, scattering projects along the way, before heading to Uzbekistan. Last week Russia’s president, Vladimir Putin, made a brief visit to Beijing; he, Mr Xi and Mongolia’s leader promised to link their infrastructure plans with the new Silk Road. At the time, finance ministers from almost 60 countries were holding the first annual meeting in Beijing of an institution set up to finance some of these projects, the Asian Infrastructure Investment Bank (AIIB). Like a steam train pulling noisily out of a station, China’s biggest foreign-economic policy is slowly gathering speed.

Chinese officials call that policy “One Belt, One Road”, though they often eviscerate its exotic appeal to foreigners by using the unlovely acronym OBOR. Confusingly, the road refers to ancient maritime routes between China and Europe, while the belt describes the Silk Road’s better-known trails overland (see map).

OBOR puzzles many Western policymakers because it is amorphous—it has no official list of member countries, though the rough count is 60—and because most of the projects that sport the label would probably have been built anyway. But OBOR matters for three big reasons.

First, the projects are vast. Official figures say there are 900 deals under way, worth $890 billion, such as a gas pipeline from the Bay of Bengal through Myanmar to south-west China and a rail link between Beijing and Duisburg, a transport hub in Germany. China says it will invest a cumulative $4 trillion in OBOR countries, though it does not say by when. Its officials tetchily reject comparison with the Marshall Plan which, they say, was a means of rewarding America’s friends and excluding its enemies after the second world war. OBOR, they boast, is open to all. But, for what it is worth, the Marshall Plan amounted to $130 billion in current dollars.

Next, OBOR matters because it is important to Mr Xi. In 2014 the foreign minister, Wang Yi, singled out OBOR as the most important feature of the president’s foreign policy. Mr Xi’s chief foreign adviser, Yang Jiechi, has tied OBOR to China’s much-touted aims of becoming a “moderately well-off society” by 2020 and a “strong, prosperous” one by mid-century.

Mr Xi seems to see the new Silk Road as a way of extending China’s commercial tentacles and soft power. It also plays a role in his broader foreign-policy thinking. The president has endorsed his predecessors’ view that China faces a “period of strategic opportunity” up to 2020, meaning it can take advantage of a mostly benign security environment to achieve its aim of strengthening its global power without causing conflict. OBOR, officials believe, is a good way of packaging such a strategy. It also fits with Mr Xi’s “Chinese dream” of recreating a great past. It is not too much to say that he expects to be judged as a leader partly on how well he fulfils OBOR’s goals.

Third, OBOR matters because it is a challenge to the United States and its traditional way of thinking about world trade. In that view, there are two main trading blocs, the trans-Atlantic one and the trans-Pacific one, with Europe in the first, Asia in the second and America the focal point of each. Two proposed regional trade deals, the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership, embody this approach. But OBOR treats Asia and Europe as a single space, and China, not the United States, is its focal point.

Source: Our bulldozers, our rules | The Economist

14/12/2015

‘Spice-Girl Diplomacy:’ North Korean Girl Band’s Beijing Shows Abruptly Cancelled – China Real Time Report – WSJ

The Moranbong band’s shows at China’s National Center for the Performing Arts have been cancelled “due to some reasons,” an employee at the venue told China Real Time Saturday night.

A person who had a ticket to one of the band’s invitation-only shows confirmed that he received a cancellation notice late Saturday afternoon. Short hair, glittery miniskirts, electronic pop music and perhaps even the theme song from the 1976 Hollywood hit “Rocky” were expected to grace the stage of Beijing’s top music hall Saturday night as the Moranbong band was set to kick off three days of shows in the Chinese capital.

The group — which was accompanied by an army orchestra, the State Merited Chorus – arrived in Beijing on Thursday and was expected to stay until next Tuesday on what the North Korean official news agency KCNA described as a “friendship visit” to China.

Zuma Press China’s state-run media lit up with news reports on the group’s visit in recent days, with the official Xinhua News Agency publishing a slideshow showing the women arriving in Beijing dressed in military-style frocks and fur hats. It was unclear Saturday evening whether the band was still in Beijing.

Japan’s Kyodo News Service reported that band members were seen at Beijing’s Capital International Airport and had flown back to Pyongyang late Saturday afternoon. But no updates were forthcoming from Xinhua and other Chinese state-run media. The visit was to have been the group’s first overseas tour — although no one, it seemed, knew how to obtain a ticket.

Neither the concert venue nor China’s foreign ministry was able to provide instructions on buying a ticket when asked by China Real Time this week. A ticket agent at the National Centre for the Performing Arts said before Saturday’s cancellations that the performances were being treated as a national-level foreign affairs activity and that the concert hall was responsible only for providing the venue. “We don’t have a single ticket on hand; we even don’t know yet which room will be offered for the performance,” the ticket agent said.

Chinese foreign ministry spokeswoman Hua Chunying said Friday that she had no details on the show or its audience — and had not been invited herself. ”This performance is not organized by the foreign ministry so I have no more information to offer,” she said at a regular briefing. “As for where to buy the tickets, I have no information. I myself have no ticket to the performance.”

Some speculated that the tour was being organized by another official organ, the International Department of the Chinese Communist Party’s Central Committee. Neither that department nor the North Korean Embassy responded to requests for comment. China has long been North Korea’s economic and diplomatic lifeline. Yet the traditional alliance between the two has come under strain in recent years, particularly after Pyongyang conducted its third nuclear test in 2013 and North Korean forces seized a Chinese fishing boat later that year.

Even so, both countries have played up their ties again since this fall when senior Chinese official Liu Yunshan stood alongside Mr. Kim at a military parade in Pyongyang to mark the 70th anniversary of North Korea’s ruling Workers’ Party. Mr. Liu, who is a member of the Standing Committee of the Chinese Communist Party, also passed along to Mr. Kim a letter from Xi Jinping in which the Chinese president called for closer relations.

Whether Moranbong’s short-lived visit to Beijing was intended to show a further warming of ties between China and North Korea — also known as the Democratic People’s Republic of Korea, or DPRK — remains open to debate. Asked Friday about the group, Ms. Hua called the tour “a major event showing the friendship between the DPRK and China.” “We believe it contributes to our mutual understanding and the sound and sustainable development of bilateral ties,” she added.

Zhang Yushan, a researcher at the Jilin Social Science Academy who studies North and South Korea, cautioned against reading too much into the visit. “This spice-girl diplomacy doesn’t really mean China and North Korea’s relations really will become warmer,” he said. This week, a top United Nations official called for the Security Council to refer North Korea to the International Criminal Court over “gross human rights violations.” China called a vote to stop the meeting, although it failed to halt it. “North Korea was seeking help from China”, Mr. Zhang of the move. “We are both very practical.”

Members of the Moranbong Band are believed to have been selected by Kim Jong Un himself. The group has become the most well-known girl band in North Korea since its debut in 2012. In addition to anthems urging listeners to “support our supreme commander with arms,” Moranbong’s repertoire also includes a surprising number of foreign pieces, including the “Rocky” theme song

Source: ‘Spice-Girl Diplomacy:’ North Korean Girl Band’s Beijing Shows Abruptly Cancelled – China Real Time Report – WSJ

01/11/2015

Japan, China and South Korea ‘restore’ fraught ties – BBC News

The leaders of Japan, China and South Korea say they have “completely restored” trade and security ties, at their first meeting in three years.

Japanese Prime Minister Shinzo Abe, South Korean President Park Geun-hye and Chinese Premier Li Keqiang meet for trilateral meeting in Seoul - 1 November

They said in a statement they had agreed to resume regular trilateral meetings, not held since 2012. They also agreed more economic co-operation.

The talks in the South Korean capital Seoul were an attempt to ease ill-feeling fuelled by territorial disputes and historical disagreements. China and South Korea say Japan has not done enough to atone for its troops’ brutality in World War Two.

The BBC’s Stephen Evans in Seoul says the real significance of the talks is that they happened. They were held regularly until three-and-a-half years ago, when they were called off as bad feeling towards Japan intensified. “We shared the view that trilateral cooperation has been completely restored on the occasion of this summit,” South Korean President Park Geun-hye, Chinese Premier Li Keqiang and Japanese Prime Minister Shinzo Abe said in a joint statement, quoted by AFP.

Ms Park said the three leaders had agreed to work together to conclude the Regional Comprehensive Economic Partnership (RCEP), a 16-nation free trade area favoured by Beijing. She said they maintained their goal of “denuclearising” North Korea, AFP reported.

Our correspondent says that South Korea and Japan are torn between their allegiance to the US and their need to get on economically with Beijing. Mr Li met Ms Park on Saturday and the two agreed to try to increase trade, particularly through more Korean exports of food to China and co-operation on research into robotics. The two leaders were joined by Mr Abe on Sunday.

Source: Japan, China and South Korea ‘restore’ fraught ties – BBC News

26/05/2015

The Top 10 Successes of Narendra Modi’s First Year – India Real Time – WSJ

Opinions differ on what Indian Prime Minister Narendra Modi has accomplished in his first year but most observers agree he has been busy since taking over last May.

Opinions differ on what Indian Prime Minister Narendra Modi has accomplished in his first year but most observers agree he has been busy since taking over last May.

He’s been relentless, offering constituents of world’s largest democracy a constant flow of policy speeches, international trips, colorful photo opportunities and ambitious new programs.

His charismatic style of governing has had mixed results.

While he has had some failures–including his party’s defeat in the Delhi elections and its inability to calm concerns within minority communities as outlined in this accompanying post about Mr. Modi’s misses—he has also had some impressive successes.

Here are 10 that stood out:

More Foreign Direct Investment: There was no big-bang busting India open to international competition and deregulation in Mr. Modi’s first year, but the prime minister has to get credit for allowing more FDI in the insurance, defense and other sectors.

Diesel Deregulation: This politically unpopular move was delayed for years but Mr. Modi just ripped the Band-Aid off and freed up diesel prices to move with the global market, potentially saving the government billions of dollars.

Global Diplomacy: Though he made little headway with India’s biggest rival–Pakistan–Mr. Modi’s globetrotting brought the country closer to most of its other neighbors and raised the nation’s profile around the world. Getting President Barack Obama to India for Republic Day was a brilliant public relations coup even if the U.S. President voiced concerns about how India treated its minorities while here.

GDP Growth: Some time during Mr. Modi’s reign, India overtook China as the fastest- growing large economy in the world. Although most of the jump in GDP came from a reworking of how the number is calculated, the revised figure produced a new point of pride for many.

Direct Subsidy Payments: Replacing leaky, expensive-to-administer and badly-targeted subsidies with direct payments to the poor is a more efficient way to help the country’s needy. Mr. Modi started direct payments for cooking gas in some places and is hoping to expand them to subsidize food and fertilizer purchases for the poorest.

Coal and Telecom Auctions: Coal mining rights and telecommunications bandwidth were at the center of the biggest scandals that helped to sink the Congress party in general elections in 2014. Mr. Modi’s Bharatiya Janata Party did not shy away from putting them back on the block to help raise money for the government and kick-start growth in these crucial sectors.

Media Management: Prime Minister Modi starved the media of access at the same time as flooding the airwaves. Speeches broadcast on every news channel, a regular radio show, carefully curated photo opportunities in weird outfits and wonderful places and an unprecedented barrage ofsocial media messages through Facebook, Twitter and even Weibo in China have all been used to let the world know what Mr. Modi is doing and thinking.

Scandal Free: Of course it’s early in the game, but so far in his premiership, there has been no huge scandal to suggest that the latest people in power are more corrupt than the last batch.

This Outfit: When the prime minister greeted President Obama, wearing this dapper suit in January, he wrecked the Internet. Mr. Modi’s vanity pinstripes had the worldwide web buzzing for weeks after Mr. Obama left and then sold at auction for close to $700,000. The money went to charities that work to educate girls.

Mr. Modi hugs Barack Obama while wearing a pinstrip suit with his name in the stitching.

AFP/Getty

He’s been relentless, offering constituents of world’s largest democracy a constant flow of policy speeches, international trips, colorful photo opportunities and ambitious new programs.

His charismatic style of governing has had mixed results.

While he has had some failures–including his party’s defeat in the Delhi elections and its inability to calm concerns within minority communities as outlined in this accompanying post about Mr. Modi’s misses—he has also had some impressive successes.

Here are 10 that stood out:

More Foreign Direct Investment: There was no big-bang busting India open to international competition and deregulation in Mr. Modi’s first year, but the prime minister has to get credit for allowing more FDI in the insurance, defense and other sectors.

Diesel Deregulation: This politically unpopular move was delayed for years but Mr. Modi just ripped the Band-Aid off and freed up diesel prices to move with the global market, potentially saving the government billions of dollars.

Global Diplomacy: Though he made little headway with India’s biggest rival–Pakistan–Mr. Modi’s globetrotting brought the country closer to most of its other neighbors and raised the nation’s profile around the world. Getting President Barack Obama to India for Republic Day was a brilliant public relations coup even if the U.S. President voiced concerns about how India treated its minorities while here.

GDP Growth: Some time during Mr. Modi’s reign, India overtook China as the fastest- growing large economy in the world. Although most of the jump in GDP came from a reworking of how the number is calculated, the revised figure produced a new point of pride for many.

Direct Subsidy Payments: Replacing leaky, expensive-to-administer and badly-targeted subsidies with direct payments to the poor is a more efficient way to help the country’s needy. Mr. Modi started direct payments for cooking gas in some places and is hoping to expand them to subsidize food and fertilizer purchases for the poorest.

Coal and Telecom Auctions: Coal mining rights and telecommunications bandwidth were at the center of the biggest scandals that helped to sink the Congress party in general elections in 2014. Mr. Modi’s Bharatiya Janata Party did not shy away from putting them back on the block to help raise money for the government and kick-start growth in these crucial sectors.

Media Management: Prime Minister Modi starved the media of access at the same time as flooding the airwaves. Speeches broadcast on every news channel, a regular radio show, carefully curated photo opportunities in weird outfits and wonderful places and an unprecedented barrage of social media messages through Facebook, Twitter and even Weibo in China have all been used to let the world know what Mr. Modi is doing and thinking.

Scandal Free: Of course it’s early in the game, but so far in his premiership, there has been no huge scandal to suggest that the latest people in power are more corrupt than the last batch.

This Outfit: When the prime minister greeted President Obama, wearing this dapper suit in January, he wrecked the Internet. Mr. Modi’s vanity pinstripes had the worldwide web buzzing for weeks after Mr. Obama left and then sold at auction for close to $700,000. The money went to charities that work to educate girls.

Mr. Modi hugs Barack Obama while wearing a pinstrip suit with his name in the stitching. AFP/Getty

This Solo: Mr. Modi needed only a few minutes watching a Taiko drum performance during his visit to Japan before he grabbed the sticks and proved he could bash it out with the best of them.

via The Top 10 Successes of Narendra Modi’s First Year – India Real Time – WSJ.

18/05/2015

Narendra Modi arrives in South Korea on final leg of tri-nation tour – The Hindu

Prime Minister Narendra Modi arrived in Seoul on Monday on the last leg of his three-nation visit during which he will hold talks with the South Korean leadership aiming to give a fillip to economic and trade cooperation.

Prime Minister Narendra Modi at the Seoul National Cemetery. Photo: PIB

A slew of agreements are expected to be signed during the visit including one on Double Taxation Avoidance Convention, cooperation in shipping and logistics, audiovisual co-production, transport, highways and electric power development in new energy industries.

The Prime Minister, who flew in from Mongolia after his three-day visit to China, will hold talks on the entire gamut of bilateral, regional and global issues with President Park Geun-hye and explore ways to upgrade cooperation in diversified areas.

He will have a hectic schedule that will start with a wreath—laying ceremony at the Seoul National Cemetery.

Mr. Modi will address a community reception where about 1,500 members of the Indian community are expected to attend before getting into talks with the Korean President.

Mr. Modi, who is keen to woo Korean investments in India, will address India—Republic of Korea CEOs Forum, which would also be attended by the Korean President.

The Prime Minister will follow this up with meetings with some of the heads of Korean companies that are willing to invest in India or have already invested in India.

He will also visit the Hyundai Heavy Industries shipyard in the backdrop of shipbuilding emerging as an important area of cooperation between the two countries.

via Narendra Modi arrives in South Korea on final leg of tri-nation tour – The Hindu.

19/04/2015

The marriage squeeze in India and China: Bare branches, redundant males | The Economist

KHAPs are informal local councils in north-western India. They meet to lay down the law on questions of marriage and caste, and are among India’s most unflinchingly conservative institutions. They have banned marriage between people of different castes, restricted it between people from the same village and stand accused of ordering honour killings to enforce their rulings, which have no legal force. India’s Supreme Court once called for khaps to be “ruthlessly stamped out”. In April 2014, however, the Satrol khap, the largest in Haryana, one of India’s richest states, relaxed its ban on inter-caste marriage and made it easier for villagers to marry among their neighbours. “This will bring revolutionary change to Haryana,” said Inder Singh, president of the khap.

The cause of the decision, he admitted, was “the declining male-female sex ratio in the state”. After years of sex-selective abortions in favour of boys, Haryana has India’s most distorted sex ratio: 114 males of all ages for every 100 females. In their search for brides, young men are increasingly looking out of caste, out of district and out of state. “This is the only way out to keep our old traditions alive,” said Mr Singh. “Instead of getting a bride from outside the state who takes time to adjust, we preferred to prune the jurisdiction of prohibited areas.”

The revision of 500 years of custom by its conservative guardians symbolises a profound change not just in India. Usually dubbed the “marriage squeeze”, the change refers both to the fact of having too many men chasing too few brides and the consequence of it in countries where marriage has always been nearly universal. Sex selection at birth is common in China and India. The flight from marriage—with women marrying later, or not at all—is long established in Japan and South Korea. But until recently, Asia’s twin giants have not felt the effects of sexual imbalance in marriage. Now they are.

The marriage squeeze is likely to last for decades, getting worse before it gets better. It will take the two countries with their combined population of 2.6 billion—a third of humanity—into uncharted territory. Marriage has always been a necessary part of belonging to society in India and China. No one really knows how these countries will react if marriage is no longer universal. But there may be damaging consequences. In every society, large numbers of young men, unmarried and away from their families, are associated with abnormal levels of crime and violence.

via The marriage squeeze in India and China: Bare branches, redundant males | The Economist.

02/04/2015

Why China May Have the Most Factory Robots in the World by 2017 – China Real Time Report – WSJ

Having devoured many of the world’s factory jobs, China is now handing them over to robots.

China is already the world’s largest market for industrial robots—sales of the machines last year grew 54% from 2013. The nation is expected to have more factory robots than any other country on earth by 2017, according to the German-based International Federation of Robotics.

A perfect storm of economic forces is fueling the trend. Chinese labor costs have soared, undermining the calculus that brought all those jobs to China in the first place, and new robot technology is cheaper and easier to deploy than ever before.

Not to mention that many of China’s fastest-growing industries, such as autos, tend to rely on high levels of automation regardless of where the factories are built.

“We think of them producing cheap widgets,” but that’s not what they’re focused on, says Adams Nager, an economic research analyst at the Information Technology & Innovation Foundation in Washington. Mr. Nager says China is letting low-cost production shift out of the country and is focusing instead on capital-intensive industries such as steel and electronics where automation is a driving force.

via Why China May Have the Most Factory Robots in the World by 2017 – China Real Time Report – WSJ.

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