Posts tagged ‘United States’

13/11/2014

US, India end impasse that threatened WTO pact – Businessweek

The United States and India said Thursday they reached agreement on stockpiling of food by governments, clearing a major stumbling block to a deal to boost world trade.

India had insisted on its right to subsidize grains under a national policy to feed its many poor, while the U.S. and others in the World Trade Organization were more focused on liberalizing agricultural trade.

The two countries did not announce details of their new deal, which will be reviewed by the WTO’s general council.

Both countries said, however, their agreement should clear the way for immediate implementation of a global deal that’s designed to increase trade by reducing customs red tape.

“We are extremely happy that India and the U.S. have successfully resolved their differences related to the issue of public stockholding for food security purposes,” the Indian Ministry of Commerce and Industry said in a statement.

The WTO has said the Trade Facilitation Agreement could boost global trade by $1 trillion, but the possibility of failure in the negotiations had threatened to render the WTO irrelevant as a forum for negotiations after a decade of inertia in trade talks.

via US, India end impasse that threatened WTO pact – Businessweek.

13/11/2014

China, U.S. agree limits on emissions, but experts see little new | Reuters

China and the United States agreed on Wednesday to new limits on carbon emissions starting in 2025, but the pledge by the world’s two biggest polluters appears to be more politically significant than substantive.

U.S. (L) and Chinese national flags flutter on a light post at the Tiananmen Square ahead of a welcoming ceremony for U.S. President Barack Obama, in Beijing, November 12, 2014. REUTERS/Petar Kujundzic

As China’s President Xi Jinping agreed to a date for peak CO2 emissions for the first time and also promised to raise the share of zero-carbon energy to 20 percent of the country’s total, President Barack Obama said the United States would cut its own emissions by more than a quarter by 2025.

via China, U.S. agree limits on emissions, but experts see little new | 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

Myopia: Losing focus | The Economist

SPARKLY, spotted or Hello Kitty: every colour, theme, shape and size of frame is available at Eyeglass City in Beijing, a four-storey mall crammed only with spectacle shops. Within half an hour a pair of prescription eyeglasses is ready. That is impressive, but then the number of Chinese wearing glasses is rising. Most new adoptees are children.

In 1970 fewer than a third of 16- to 18-year-olds were deemed to be short-sighted (meaning that distant objects are blurred). Now nearly four-fifths are, and even more in some urban areas. A fifth of these have “high” myopia, that is, anything beyond 16 centimetres (just over six inches) is unclear. The fastest increase is among primaryschoolchildren, over 40% of whom are short-sighted, double the rate in 2000. That compares with less than 10% of this age group in America or Germany.

The incidence of myopia is high across East Asia, afflicting 80-90% of urban 18-year-olds in Singapore, South Korea and Taiwan. The problem is social rather than genetic. A 2012 study of 15,000 children in the Beijing area found that poor sight was significantly associated with more time spent studying, reading or using electronic devices—along with less time spent outdoors. These habits were more frequently found in higher-income families, says Guo Yin of Beijing Tongren Hospital, that is, those more likely to make their children study intensively. Across East Asia worsening eyesight has taken place alongside a rise in incomes and educational standards.

The biggest factor in short-sightedness is a lack of time spent outdoors. Exposure to daylight helps the retina to release a chemical that slows down an increase in the eye’s axial length, which is what most often causes myopia. A combination of not being outdoors and doing lots of work focusing up close (like writing characters or reading) worsens the problem. But if a child has enough time in the open, they can study all they like and their eyesight should not suffer, says Ian Morgan of Australian National University.

Yet China and many other East Asian countries do not prize time outdoors. At the age of six, children in China and Australia have similar rates of myopia. Once they start school, Chinese children spend about an hour a day outside, compared with three or four hours for Australian ones. Schoolchildren in China are often made to take a nap after lunch rather than play outside; they then go home to do far more homework than anywhere outside East Asia. The older children in China are, the more they stay indoors—and not because of the country’s notorious pollution.

via Myopia: Losing focus | The Economist.

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

India vs. China: The Battle for Global Manufacturing – Businessweek

With its chronic blackouts, crumbling roads, and other infrastructure woes, India should have no appeal for John Ginascol. A vice president at Abbott Laboratories (ABT), Ginascol is responsible for ensuring that the company’s food-products factories run smoothly worldwide. He can’t afford surprises when it comes to electricity, water, and other essentials. “People like me,” he says, “dream of having existing, good, reliable infrastructure.”

Yet Abbott has just opened its first plant in India, and Ginascol says there haven’t been any nightmares so far. In October the company began production at a $75 million factory in an industrial park in the western state of Gujarat. The factory is producing Similac baby formula and nutritional supplement PediaSure, which Abbott plans to sell to the growing Indian middle class. The plant will employ about 400 workers by the time it’s fully up and running next year. As for India’s infrastructure, Ginascol has no complaints. The officials in charge of the park “were able to deliver very good, very reliable power, water, natural gas, and roads,” he says. “Fundamentally, the infrastructure was in place.”

Indian Prime Minister Narendra Modi is hoping other executives will be similarly impressed with the ease of manufacturing in his country. Before Modi took charge in New Delhi, he headed the state government in Gujarat, and during his 13 years in power there he made the state an industrial leader. Manufacturing accounts for 28 percent of Gujarat’s economy, compared with 13 percent for the country as a whole, and a touch less than the 30 percent figure for manufacturing titan China.

via India vs. China: The Battle for Global Manufacturing – Businessweek.

26/10/2014

Electricity: Generational shift | The Economist

MUCH of what China has achieved in the past three decades—its impressive economic growth, the rise of its global stature and the considerable improvement of living standards for hundreds of millions of people—is attributable to one decision: ditching the Maoist model of central-planning that had shackled the economy. Yet some important industries have yet to embrace the market. Power generation is one. As China struggles to reconcile its soaring energy demand with its need to clean up an increasingly toxic environment, reform is becoming more urgent.

China knows it must reduce its reliance on dirty coal and increase its use of (more expensive) renewable energy. Of the new power-generating capacity that China built last year, renewables such as wind and solar power for the first time accounted for more than the share made up of fossil fuels and nuclear energy.

China wants to satisfy the surging electricity demands of its increasingly urban population and to keep its industries running smoothly. It does both reasonably well and blackouts are rare. But officials fret about how grumpy—and vocal—people are becoming about the poisonous air that envelops so many Chinese cities. (An annual international marathon race, pictured above, took place in Beijing on October 19th in air that was nearly 14 times more polluted than the safety limit recommended by the World Health Organisation.) China is aware that its standing abroad will partly depend on its efforts to limit carbon emissions. This will involve weaning itself off coal, which supplies nearly 80% of its energy.

Progress is being hampered by a largely unreformed power industry dominated by large state-owned enterprises (SOEs) which operate under a mix of rigid planning, secrecy and poor regulation. Power suppliers have too little incentive to compete on price, efficiency or greenness. Two international NGOs, the World Wildlife Fund and the Energy Transition Research Institute, describe the SOEs that control all transmission and distribution and most non-renewable generation as “unregulated corporate monopolies”. Their bosses are usually appointed by the central government, but they often ally with regional leaders to resist oversight by a variety of largely toothless regulators.

One problem is China’s system for “dispatch”; that is, determining which power sources will supply electricity to the grid at any given time. A report by the Regulatory Assistance Project (RAP), an American NGO, notes that in most countries dispatch decisions are made in order to minimise costs (including environmental ones). In China regulations would appear to encourage a similar approach: grid-operators are supposed to give priority to electricity supplied by more efficient and greener producers. In practice, grid-operators are more inclined to help coal-fired plants recoup the cost of their investments. Both sides are members of a cosy club of energy-related SOEs. Even if the grid-operators were to try to stick to the rules, they would struggle. Coal plants can easily conceal how much they waste and pollute.

Generators of wind and solar energy thus find themselves handicapped by more than just the high cost of their technologies. Much of China’s most cleanly produced energy is wasted. For wind power, rates of “curtailment”, or energy generated but not taken up by the grid, have improved in recent years as grid systems have become better able to cope with the technical challenge of handling such unsteady sources of power. But the rate still stands at about 10% nationwide. In Britain it was less than 2% between 2011 and 2013.

The government launched pilot reforms in five provinces in 2007 to encourage more efficient dispatch, but they achieved little and have not been expanded. Max Dupuy of RAP’s Beijing office says the scheme met opposition because of its failure to compensate coal-fired plants for the revenue share lost to clean producers.

via Electricity: Generational shift | The Economist.

26/10/2014

China’s Rising Wages and the ‘Made in USA’ Revival – Businessweek

It wasn’t long ago that China was the cheapest place on earth to make just about anything. When China joined the World Trade Organization in 2001, the average hourly manufacturing wage in the Yangtze River Delta was 82¢ an hour. Oil was $20 a barrel, so no matter where you were ultimately selling your Chinese-made goods, it didn’t cost much to get it there.

A technician prepares a VIPturbo Modem at the SRT Wireless satellite communications manufacturing plant in Davie, Florida on Aug. 18

China’s still cheap, but it’s nowhere near the deal it was just a few years ago. Workers in the Yangtze make almost $5 an hour today, and oil costs about $85 a barrel. Suddenly the benefits of making things in China aren’t so apparent, especially if you’re selling those things to consumers in the U.S. A new survey by Boston Consulting Group found that 16 percent of American manufacturing executives say they’re already bringing production back home from China. That’s up from 13 percent a year ago. Twenty percent said they would consider doing so in the near future.

American manufacturing’s increased competitiveness against China is a story that’s been told for a few years now, giving rise to the term “reshoring.” But it’s not just China that the U.S. is gaining against. For companies making goods for sale in the U.S., Mexico has long been the place to go—and that’s slipping, too. The BCG survey shows that the U.S. has passed Mexico as the place where companies are most likely to build a new plant to make things to sell in the U.S.

via China’s Rising Wages and the ‘Made in USA’ Revival – Businessweek.

26/10/2014

Frustrated Multinationals Look to Trim China-Based Staff – Businessweek

Slightly less than half of European companies operating in China plan to expand their mainland-based workforce in the next year—down from 61 percent in 2012, according to a recent survey by the European Chamber of Commerce. A quarter of these entities are looking for other ways to trim costs in China, and 51 percent believe doing business in China “has become more difficult” over the past few years.

The workshop of Bernard Controls, a French business that manufactures electric components in Beijing

Business isn’t typically bad—61 percent said their China operations were profitable—but it’s less spectacular than in past years. That’s due in part to China’s economic slowdown, in part to real and perceived hostility against foreign companies in China, and in part to problems or layoffs in their home offices.

American companies expressed similar concerns in a recent survey by the U.S. Chamber of Commerce. Fully 60 percent of U.S. businesses said they felt “less welcome” in China than in the previous year. Anticorruption and pricing probes in wide-ranging industries have seemingly singled out foreign companies, from Microsoft (MSFT) to Abbott Laboratories (ABT), as targets. Almost half of those surveyed said they thought the pattern of harassment was deliberate.

via Frustrated Multinationals Look to Trim China-Based Staff – Businessweek.

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