BEIJING (Reuters) - China accused the United States of "prejudice" on Saturday after the U.S. State Department renewed a call for Beijing to fully account for its bloody crackdown on pro-democracy demonstrators in June 1989. The United States should "immediately rectify its wrongdoings and stop interfering in China's internal affairs so as not to sabotage China-U.S.
Reported by Firstpost 1 hour ago.
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China accuses U.S. of "prejudice" over 1989 protest comments
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PMC Presents at OptiNet China 2013
Filed under: Investing
*PMC Presents at OptiNet China 2013*
BEIJING--(BUSINESS WIRE)-- PMC® (NAS: PMCS) , the semiconductor innovator transforming networks that connect, move and store big data, will present at OptiNet China 2013.
*Who:* Tao Lang, senior manager, product marketing for PMC's Communications Business Unit
*What:* Facing the Challenges of 4G/LTE Mobile Backhaul
While the world is embracing a new transition to 4G/LTE, mobile backhaul technology, even with its decades of migration and maturation, is going to face some serious challenges that are big enough to initiate a revolution. Mr. Lang's presentation reviews the changes and the challenges of LTE mobile backhaul compared to existing deployments, with the considerations for both macro cell and small cell. It also proposes solutions to address these challenges.
*When:* June 5, 2013, 2:00 pm CST
*Where:* Presidential Plaza Hotel, Beijing, China
*About OptiNet China*
OptiNet China Conference 2013, taking place in Beijing June 5-6, 2013, offers attendees the chance to learn more about the potential and challenges of optical networking. The conference sessions will provide the insights that network executives, planners and engineers need to make informed decisions about the optical networking business. For more information, visit: http://www.optinetchina.com.
*About PMC*
PMC (NAS: PMCS) is the semiconductor innovator transforming networks that connect, move and store big data. Building on a track record of technology leadership, the company is driving innovation across storage, optical and mobile networks. PMC's highly integrated solutions increase performance and enable next-generation services to accelerate the network transformation. For more information, visit www.pmcs.com. Follow PMC on Facebook, Twitter, LinkedIn and RSS.
© Copyright PMC-Sierra, Inc. 2013. All rights reserved. PMC and PMC-SIERRA are registered trademarks of PMC-Sierra, Inc. in the United States and other countries, PMCS is a trademark of PMC-Sierra, Inc. Other product and company names mentioned herein may be trademarks of their respective owners. PMC is the corporate brand of PMC-Sierra, Inc.
*PMC*
Kim Mason, 1 604.415.6239
Sr Communications Specialist
kim.mason@pmcs.com
or
*US Editorial:*
Sarmishta Ramesh, +1 303.296.4423
pmcogilvy@ogilvy.com
or
*China Editorial:*
Lu Na, +86-10-8520 3026
na.lu@ogilvy.com
*KEYWORDS:* Asia Pacific China
*INDUSTRY KEYWORDS:*
The article PMC Presents at OptiNet China 2013 Reported by DailyFinance 18 hours ago.
*PMC Presents at OptiNet China 2013*
BEIJING--(BUSINESS WIRE)-- PMC® (NAS: PMCS) , the semiconductor innovator transforming networks that connect, move and store big data, will present at OptiNet China 2013.
*Who:* Tao Lang, senior manager, product marketing for PMC's Communications Business Unit
*What:* Facing the Challenges of 4G/LTE Mobile Backhaul
While the world is embracing a new transition to 4G/LTE, mobile backhaul technology, even with its decades of migration and maturation, is going to face some serious challenges that are big enough to initiate a revolution. Mr. Lang's presentation reviews the changes and the challenges of LTE mobile backhaul compared to existing deployments, with the considerations for both macro cell and small cell. It also proposes solutions to address these challenges.
*When:* June 5, 2013, 2:00 pm CST
*Where:* Presidential Plaza Hotel, Beijing, China
*About OptiNet China*
OptiNet China Conference 2013, taking place in Beijing June 5-6, 2013, offers attendees the chance to learn more about the potential and challenges of optical networking. The conference sessions will provide the insights that network executives, planners and engineers need to make informed decisions about the optical networking business. For more information, visit: http://www.optinetchina.com.
*About PMC*
PMC (NAS: PMCS) is the semiconductor innovator transforming networks that connect, move and store big data. Building on a track record of technology leadership, the company is driving innovation across storage, optical and mobile networks. PMC's highly integrated solutions increase performance and enable next-generation services to accelerate the network transformation. For more information, visit www.pmcs.com. Follow PMC on Facebook, Twitter, LinkedIn and RSS.
© Copyright PMC-Sierra, Inc. 2013. All rights reserved. PMC and PMC-SIERRA are registered trademarks of PMC-Sierra, Inc. in the United States and other countries, PMCS is a trademark of PMC-Sierra, Inc. Other product and company names mentioned herein may be trademarks of their respective owners. PMC is the corporate brand of PMC-Sierra, Inc.
*PMC*
Kim Mason, 1 604.415.6239
Sr Communications Specialist
kim.mason@pmcs.com
or
*US Editorial:*
Sarmishta Ramesh, +1 303.296.4423
pmcogilvy@ogilvy.com
or
*China Editorial:*
Lu Na, +86-10-8520 3026
na.lu@ogilvy.com
*KEYWORDS:* Asia Pacific China
*INDUSTRY KEYWORDS:*
The article PMC Presents at OptiNet China 2013 Reported by DailyFinance 18 hours ago.
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↧
Adaptec by PMC Presents and Exhibits at China Cloud Computing Conference 2013
Filed under: Investing
*Adaptec by PMC Presents and Exhibits at China Cloud Computing Conference 2013*
Storage Industry Leader Hosts Technical Seminar on Next Generation Storage System Designs
BEIJING--(BUSINESS WIRE)-- PMC® (NAS: PMCS) , the semiconductor innovator transforming networks that connect, move and store big data, will host a technical seminar at the China Cloud Computing Conference 2013.
*Who:* Executives from PMC and Dell Data Center Solutions
*What:* Speakers and presentations include:
· Global Infrastructure Storage Trends and Architecture Practices for the Cloud Era - Dave Berry, director, data center strategy, PMC
· High Density Solutions with Shared Infrastructure - Bingo Zhang, engineering senior manager, Dell Data Center Solutions
· The Development Path: Challenges and Opportunities in Storage System Design - Dong Zhang, senior development engineer, PMC
· Novel Approaches to Data Center Storage: Severing Cold Data, Cool Data and Hot Data in a Disaggregated Cluster - Heng Liao, fellow, PMC
PMC will also showcase its Series 7 RAID adapters and Series 7H SAS/SATA host bus adapters.
To register, visit: http://huiyi.csdn.net/tech/view/298.
*When:* June 7, 2013, 1:00 - 5:00 pm CST
*Where:* Room 306, China National Convention Center, Beijing, China
*About China Cloud Computing Conference*
The 5th China Cloud Computing Conference, June 5-7, 2013, will look into global cloud computing trends, analyze cloud computing and big data, cloud computing and mobile networks, safety and applications from an international perspective. The cloud computing exhibition area is available to demonstrate recent cloud computing achievements in China and abroad, share knowledge and experience, and create the international cooperation opportunities. For more information, visit: http://www.ciecloud.org/2013/index_en.html.
*About Adaptec by PMC®*
Adaptec by PMC storage solutions protect, accelerate, and condition data as it moves through the I/O path. We deliver high-performance, interoperable and reliable storage solutions combined with leading technical support. Our products enable customers to innovate storage networks for next-generation data centers, cloud services as well as the broader market segments served by our channel partners. For more information, visit www.adaptec.com.
*About PMC*
PMC (NAS: PMCS) is the semiconductor innovator transforming networks that connect, move and store big data. Building on a track record of technology leadership, the company is driving innovation across storage, optical and mobile networks. PMC's highly integrated solutions increase performance and enable next-generation services to accelerate the network transformation. For more information, visit www.pmcs.com. Follow PMC on Facebook, Twitter, LinkedIn and RSS.
© Copyright PMC-Sierra, Inc. 2013. All rights reserved. PMC, PMC-SIERRA and Adaptec by PMC are registered trademarks of PMC-Sierra, Inc. in the United States and other countries, PMCS is a trademark of PMC-Sierra, Inc. Other product and company names mentioned herein may be trademarks of their respective owners. PMC is the corporate brand of PMC-Sierra, Inc.
*PMC*
Kim Mason, 1 604.415.6239
Sr Communications Specialist
kim.mason@pmcs.com
or
*US Editorial:*
Sarmishta Ramesh, +1 303.296.4423
pmcogilvy@ogilvy.com
or
*China Editorial:*
Lu Na, +86-10-8520 3026
na.lu@ogilvy.com
*KEYWORDS:* Asia Pacific China
*INDUSTRY KEYWORDS:*
The article Adaptec by PMC Presents and Exhibits at China Cloud Computing Conference 2013 Reported by DailyFinance 18 hours ago.
*Adaptec by PMC Presents and Exhibits at China Cloud Computing Conference 2013*
Storage Industry Leader Hosts Technical Seminar on Next Generation Storage System Designs
BEIJING--(BUSINESS WIRE)-- PMC® (NAS: PMCS) , the semiconductor innovator transforming networks that connect, move and store big data, will host a technical seminar at the China Cloud Computing Conference 2013.
*Who:* Executives from PMC and Dell Data Center Solutions
*What:* Speakers and presentations include:
· Global Infrastructure Storage Trends and Architecture Practices for the Cloud Era - Dave Berry, director, data center strategy, PMC
· High Density Solutions with Shared Infrastructure - Bingo Zhang, engineering senior manager, Dell Data Center Solutions
· The Development Path: Challenges and Opportunities in Storage System Design - Dong Zhang, senior development engineer, PMC
· Novel Approaches to Data Center Storage: Severing Cold Data, Cool Data and Hot Data in a Disaggregated Cluster - Heng Liao, fellow, PMC
PMC will also showcase its Series 7 RAID adapters and Series 7H SAS/SATA host bus adapters.
To register, visit: http://huiyi.csdn.net/tech/view/298.
*When:* June 7, 2013, 1:00 - 5:00 pm CST
*Where:* Room 306, China National Convention Center, Beijing, China
*About China Cloud Computing Conference*
The 5th China Cloud Computing Conference, June 5-7, 2013, will look into global cloud computing trends, analyze cloud computing and big data, cloud computing and mobile networks, safety and applications from an international perspective. The cloud computing exhibition area is available to demonstrate recent cloud computing achievements in China and abroad, share knowledge and experience, and create the international cooperation opportunities. For more information, visit: http://www.ciecloud.org/2013/index_en.html.
*About Adaptec by PMC®*
Adaptec by PMC storage solutions protect, accelerate, and condition data as it moves through the I/O path. We deliver high-performance, interoperable and reliable storage solutions combined with leading technical support. Our products enable customers to innovate storage networks for next-generation data centers, cloud services as well as the broader market segments served by our channel partners. For more information, visit www.adaptec.com.
*About PMC*
PMC (NAS: PMCS) is the semiconductor innovator transforming networks that connect, move and store big data. Building on a track record of technology leadership, the company is driving innovation across storage, optical and mobile networks. PMC's highly integrated solutions increase performance and enable next-generation services to accelerate the network transformation. For more information, visit www.pmcs.com. Follow PMC on Facebook, Twitter, LinkedIn and RSS.
© Copyright PMC-Sierra, Inc. 2013. All rights reserved. PMC, PMC-SIERRA and Adaptec by PMC are registered trademarks of PMC-Sierra, Inc. in the United States and other countries, PMCS is a trademark of PMC-Sierra, Inc. Other product and company names mentioned herein may be trademarks of their respective owners. PMC is the corporate brand of PMC-Sierra, Inc.
*PMC*
Kim Mason, 1 604.415.6239
Sr Communications Specialist
kim.mason@pmcs.com
or
*US Editorial:*
Sarmishta Ramesh, +1 303.296.4423
pmcogilvy@ogilvy.com
or
*China Editorial:*
Lu Na, +86-10-8520 3026
na.lu@ogilvy.com
*KEYWORDS:* Asia Pacific China
*INDUSTRY KEYWORDS:*
The article Adaptec by PMC Presents and Exhibits at China Cloud Computing Conference 2013 Reported by DailyFinance 18 hours ago.
↧
Europe Faces A Decision On Wednesday That Could Trigger A Trade War With China
The European Commission faces a difficult choice Wednesday -- stick to its principles and impose anti-dumping duties on Chinese solar panel imports, or bow to German-led pressure and avoid a step many believe risks a full-scale trade war with Beijing.The stakes are high, commercially and politically.
On the one hand, EU-China trade is worth more than 500 billion euros annually, a powerful incentive for everyone to keep calm at a time when both sides, and especially the 27-member EU, are looking to trade to boost growth and jobs.
On the other, the Commission, the EU's executive arm, is caught between Germany, the bloc's paymaster and biggest economy which has come out openly against duties, and France, which favours them as a way of showing that the bloc will stand up to Beijing in trade disputes.
Analysts say the Commission is in an uncomfortable place.
"The Commission, given the significant and public divisions among member states, is in a very weak position," said consultant Sergio Marchi, a former Canadian trade minister and ambassador to the World Trade Organization.
"It will probably seek an elegant way to save face but I'm not sure there is such a route," Marchi said, adding: "I think the Commission will need to swallow its pride on this one!"
The Commission, however, does have some limited leeway.
The tariffs to be announced Wednesday will be provisional, lasting six months, and so still allow room for negotiations with all parties.
A final decision would come only in December, when EU member states would have to vote to make them permanent or not.
May has already been a busy month and China upped the ante again Friday when it added an anti-dumping probe into EU chemical exports to an investigation of seamless pipes.
These moves were set against the Commission's probe on solar panels and a possible examination of Chinese telecoms.
German Economy Minister Philipp Roesler said on Monday there was "no longer a need for penalties", a remark all the more pointed for being made in the presence of visiting Chinese Premier Li Keqiang.
"We are against protectionist measures, (we are) for open markets and fair competition," Roesler said while Li commented: "This position, that is what binds China with Germany and earns my appreciation."
EU sources say Germany has mustered 17 other member states against the tariffs just as France insisted they were justified and that far from harming ties with China, would actually put them on a more even keel.
"We will have the chance to tell our Chinese partners that we wish to broadly refashion trade between China and the European Union, including in renewable energy," said French Ecology and Energy Minister Delphine Batho, adding that "the rules of international trade must be applied."
For his part, EU Trade Commissioner Karel De Gucht, who has to make the decision on Wednesday, bluntly warned member states to be wary of China trying to influence the outcome.
De Gucht told visiting Chinese Vice Minister of Commerce Zhong Shan that "he was ready to negotiate a solution on the solar panels case," according to a spokesman.
But De Gucht also said he was aware of the pressure exerted by China on EU member states and was more than ready to resist it.
"It is the role of the European Commission to remain independent, to resist any external pressure and to see the 'big picture' for the benefit of Europe, its companies and workers based upon the evidence alone," he insisted Monday.
"China has become the 28th member state of the EU," commented Daniel Cohn-Bendit, co-leader of the Greens in the European Parliament. "It influences the decision in 18 countries and it knows how to position itself."
Meanwhile at the sharp end of the dispute, EU companies in China were hoping against any turn for the worse.
"Who would not be concerned?" Davide Cucino, president of the European Union Chamber of Commerce said of the prospects of a trade war.
"We urge that both sides engage in friendly negotiations to reach any possible, amicable solutions to the issue."
Copyright (2013) AFP. All rights reserved.
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Join the conversation about this story »
Reported by Business Insider 15 hours ago.
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Obama To Meet With China On Hacking
WASHINGTON -- President Barack Obama will be looking for signs from China's leader at their upcoming meeting that Beijing is ready to address its reported high-tech spying, which the White House sees as a top threat to the U.S. economy and national security.
The talks between Obama and Chinese President Xi Jinping will be followed by a July meeting between U.S. and Chinese officials focusing on cyberespionage, along with other strategic and economic issues. Secretary of State John Kerry announced that session while he visited China in April.
The summit Friday and Saturday at a California estate also is aimed at establishing personal ties between Obama and Xi as relations between the two global powers grow increasingly complex.
Obama needs Xi's help in stemming nuclear threats from North Korea and Iran, combating the violence in Syria, and continuing the U.S. economic recovery.
The meeting at the 200-acre Sunnylands estate once owned by late publishing tycoon Walter Annenberg is their first since Xi took power in March. The talks also are coming months before the leaders originally had planned to meet, underscoring growing concern in both countries about potential fractures in the relationship.
Cybersecurity is likely to be the prickliest issue, given new reports on the extent and regularity of China's cyberhacking and increasing interest in Congress about how the U.S. can punish Beijing for its actions.
The Chinese government denies it engages in such spying against the U.S. But analysts say Beijing has started to indicate some willingness to address the problem during private talks with Kerry, national security adviser Tom Donilon and others.
The Chinese have been "much more positive in private meetings," James Lewis, a cybersecurity expert and former State Department official. The goal during Obama's meeting, Lewis said, will be to "test whether the Chinese have really moved to a better position where they want to engage."
A senior Obama administration official said that in recent talks, the Chinese seem to be less dismissive of U.S. concerns about cyberattacks, but that the matter would be not settled in one meeting.
Despite subtle signs of progress in private talks, security analysts say there's little evidence that Chinese-based hacking has eased.
"If the Chinese government wanted to signal to the United States that it wanted to curb its activity, the U.S. government would see it and we would see it," said Richard Bejtlich, chief security officer at the U.S.-based firm Mandiant. "But it's the same as it's always been."
Defense Secretary Chuck Hagel said Saturday at a security conference in Singapore that the U.S. has expressed its concerns about "the growing threat of cyberintrusions, some of which appear to be tied to the Chinese government and military."
Obama and Xi were not expected to meet until September, on the sidelines of an international economic summit in St. Petersburg, Russia. But the U.S saw signs that Xi was able to organize his government more quickly than previous Chinese leaders, according to the administration official, and that led the U.S. to conclude that it was best for Obama to meet Xi as early as possible.
The official insisted on anonymity in order to discuss internal administration discussions.
The White House hopes the relaxed setting at Sunnylands will lend itself to a more direct and free-flowing discussion. The presidents' wives will join them at the estate.
"The meeting represents a huge investment by both sides in the relationship and the health of the relationship," said Nina Hachigian, a China expert at the Center for American Progress. "This is viewed as extremely special by the Chinese side."
The logistics of Xi's visit have been negotiated intensely, as is the case with all meetings between the U.S. and China. The Chinese government often pushes for limited media access, though the White House said Friday that U.S. officials were working to arrange an opportunity for reporters to ask questions of the two leaders at the end of the summit.
President George W. Bush held a somewhat similar meeting in 2002 when he hosted then-Chinese President Jiang Zemin at Bush's ranch in Crawford, Texas.
There's little expectation the summit will result in any concrete policy decisions. But Kurt Campbell, who until recently served as assistant secretary of state for East Asian and Pacific Affairs, said the discussions on both cybersecurity and North Korea have a "real potential for progress, not because of some enormous good will, but because China is badly positioned on both."
In a shift from his predecessor, Xi has taken a stern tone with North Korea. He has told the North to return to nuclear talks with the U.S. and other world powers, and has warned its young leader that no country "should be allowed to throw a region and even the whole world into chaos for selfish gain."
The U.S. long has pushed China to take more aggressive action against North Korea and welcomed Xi's comments. China is the North's strongest ally and biggest trading partner.
Financial issues also are expected to be a prominent topic in the talks between the leaders of the world's largest economies. Xi probably will press China's claims of business discrimination in the U.S. market.
Xi is likely to express deep discomfort over Washington's shifting of military assets to Asia and renewed emphasis on alliances with other countries within the region. China sees the strategy, referred to by Obama as his Asia "pivot," as an effort to contain Beijing's rising power.
At the Singapore conference, a Chinese military leader questioned the expanded U.S. role in the Pacific after Hagel said he hoped for better military ties between the two countries.
Xi and Obama first met last year when Xi, then vice president, visited the White House. Xi has a warm relationship with Vice President Joe Biden after their travels together throughout China during Biden's 2011 visit.
Xi has deeper ties to the U.S. than his predecessors. He's visited the country frequently, and stays in contact with families he stayed with in Muscatine, Iowa, while a visiting provincial official in 1985. His daughter attended Harvard.
___
Follow Julie Pace at http://twitter.com/jpaceDC Reported by Huffington Post 14 hours ago.
The talks between Obama and Chinese President Xi Jinping will be followed by a July meeting between U.S. and Chinese officials focusing on cyberespionage, along with other strategic and economic issues. Secretary of State John Kerry announced that session while he visited China in April.
The summit Friday and Saturday at a California estate also is aimed at establishing personal ties between Obama and Xi as relations between the two global powers grow increasingly complex.
Obama needs Xi's help in stemming nuclear threats from North Korea and Iran, combating the violence in Syria, and continuing the U.S. economic recovery.
The meeting at the 200-acre Sunnylands estate once owned by late publishing tycoon Walter Annenberg is their first since Xi took power in March. The talks also are coming months before the leaders originally had planned to meet, underscoring growing concern in both countries about potential fractures in the relationship.
Cybersecurity is likely to be the prickliest issue, given new reports on the extent and regularity of China's cyberhacking and increasing interest in Congress about how the U.S. can punish Beijing for its actions.
The Chinese government denies it engages in such spying against the U.S. But analysts say Beijing has started to indicate some willingness to address the problem during private talks with Kerry, national security adviser Tom Donilon and others.
The Chinese have been "much more positive in private meetings," James Lewis, a cybersecurity expert and former State Department official. The goal during Obama's meeting, Lewis said, will be to "test whether the Chinese have really moved to a better position where they want to engage."
A senior Obama administration official said that in recent talks, the Chinese seem to be less dismissive of U.S. concerns about cyberattacks, but that the matter would be not settled in one meeting.
Despite subtle signs of progress in private talks, security analysts say there's little evidence that Chinese-based hacking has eased.
"If the Chinese government wanted to signal to the United States that it wanted to curb its activity, the U.S. government would see it and we would see it," said Richard Bejtlich, chief security officer at the U.S.-based firm Mandiant. "But it's the same as it's always been."
Defense Secretary Chuck Hagel said Saturday at a security conference in Singapore that the U.S. has expressed its concerns about "the growing threat of cyberintrusions, some of which appear to be tied to the Chinese government and military."
Obama and Xi were not expected to meet until September, on the sidelines of an international economic summit in St. Petersburg, Russia. But the U.S saw signs that Xi was able to organize his government more quickly than previous Chinese leaders, according to the administration official, and that led the U.S. to conclude that it was best for Obama to meet Xi as early as possible.
The official insisted on anonymity in order to discuss internal administration discussions.
The White House hopes the relaxed setting at Sunnylands will lend itself to a more direct and free-flowing discussion. The presidents' wives will join them at the estate.
"The meeting represents a huge investment by both sides in the relationship and the health of the relationship," said Nina Hachigian, a China expert at the Center for American Progress. "This is viewed as extremely special by the Chinese side."
The logistics of Xi's visit have been negotiated intensely, as is the case with all meetings between the U.S. and China. The Chinese government often pushes for limited media access, though the White House said Friday that U.S. officials were working to arrange an opportunity for reporters to ask questions of the two leaders at the end of the summit.
President George W. Bush held a somewhat similar meeting in 2002 when he hosted then-Chinese President Jiang Zemin at Bush's ranch in Crawford, Texas.
There's little expectation the summit will result in any concrete policy decisions. But Kurt Campbell, who until recently served as assistant secretary of state for East Asian and Pacific Affairs, said the discussions on both cybersecurity and North Korea have a "real potential for progress, not because of some enormous good will, but because China is badly positioned on both."
In a shift from his predecessor, Xi has taken a stern tone with North Korea. He has told the North to return to nuclear talks with the U.S. and other world powers, and has warned its young leader that no country "should be allowed to throw a region and even the whole world into chaos for selfish gain."
The U.S. long has pushed China to take more aggressive action against North Korea and welcomed Xi's comments. China is the North's strongest ally and biggest trading partner.
Financial issues also are expected to be a prominent topic in the talks between the leaders of the world's largest economies. Xi probably will press China's claims of business discrimination in the U.S. market.
Xi is likely to express deep discomfort over Washington's shifting of military assets to Asia and renewed emphasis on alliances with other countries within the region. China sees the strategy, referred to by Obama as his Asia "pivot," as an effort to contain Beijing's rising power.
At the Singapore conference, a Chinese military leader questioned the expanded U.S. role in the Pacific after Hagel said he hoped for better military ties between the two countries.
Xi and Obama first met last year when Xi, then vice president, visited the White House. Xi has a warm relationship with Vice President Joe Biden after their travels together throughout China during Biden's 2011 visit.
Xi has deeper ties to the U.S. than his predecessors. He's visited the country frequently, and stays in contact with families he stayed with in Muscatine, Iowa, while a visiting provincial official in 1985. His daughter attended Harvard.
___
Follow Julie Pace at http://twitter.com/jpaceDC Reported by Huffington Post 14 hours ago.
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China’s crackdown on corruption is bad news for Gucci
BEIJING—Exports of elegant Swiss watches to China have plunged. Sales of Mercedes-Benz and other premium sedans are slowing. And high-end restaurants, coming off their worst Chinese New Year festival in years, are starting to change their menus to lure ordinary families.At a Montblanc shop in downtown Beijing, sales clerks recall the days when they rang up as many as 10 of the top-selling fountain pens every day. Never mind the $1,400 price tag: the platinum-plated pen capped with a half-carat diamond was a particular favourite. Nowadays the store only sells one such pen every two to three days, said a saleswoman, adding sadly that her pay is commission-based.
Such is the state of living large in the world’s second-largest luxury market. Yet the cause of the downturn isn’t economic — it’s political.
China’s new leader, President Xi Jinping, has been pressing a campaign to rein in the lavish ways of the nation’s political and military elite. Warning that corruption could threaten the Communist Party’s survival, Xi has waged a highly public effort to rid officialdom of ostentatious living.
Ceremonial red carpets and floral decor are out. Flying coach is in. Party cadres are being told to double up in hotel rooms.
And in what has become a particular crowd pleaser, Beijing is going after those who have long abused the privileges of military licence plates, which almost guarantee immunity from traffic laws and other such inconveniences.
It’s much-debated whether this wide-ranging campaign is aimed at the root causes of corruption and income inequality, or is only addressing the most visible symptoms. Whichever, Xi and his lieutenants have good reason for their frugality program.
Beijing has long maintained control in part by tacitly promising that over time everyone will benefit from the country’s new wealth. Rampant corruption and the garish displays of affluence by senior officials and their families strike at the heart of Beijing’s promise that it is working to make life better for all. Ordinary Chinese have increasingly lashed out at what they see as a privileged class of political elites.
Minxin Pei, an expert on Chinese governance at California’s Claremont McKenna College, thinks Xi has two objectives with his anticorruption program: “To appease the Chinese public to show that he has heard their voice . . . (and) to tell officials throughout the system that the new leadership has absolute authority.”
Whatever the purpose, the campaign has affected spending on all kinds of high-end goods and services. Some analysts blame Xi’s crackdown for China’s disappointing economic growth in the first quarter, which has brought financial pain to many workers.
Most purveyors of luxury goods in China are sitting tight for now, betting the freeze will end soon.
“I still believe that gift-giving, as long as it is not conspicuous, will remain an important behaviour in China,” said Pierre Coppere, chairman of distiller Pernod Ricard Asia, reassuring analysts recently after a double-digit drop in revenue from sales of Scotch during the Chinese New Year period.
Gift-giving is a way of life for many Chinese businesses and bureaucrats, as are bribes. Over the years, Communist Party officials have found plenty of ways to pocket gains from land sales, hiring and operation of businesses on the side.
In many cases, the extravagant spending comes from official entertainment funds. Even though the party’s manuals spell out standards for purchases in detailed fashion — specifying, for example, the maximum engine size that each level of government can buy for its fleet — the regulations have seldom been enforced.
Civil servants earn modest incomes — no more than $850 a month for a mid-level central government official, some state media reports say — but many have spruced up their lifestyles by travelling first class, dining at premium restaurants and holding lavish ceremonies, all on the taxpayers’ dime. Officials charged an estimated $57-billion worth of expenses on about 10 million government-issued credit cards last year, according to Emerging Asia Group, a research firm in Shanghai.
Xi has made examples of officials who have been publicly criticized, fired or prosecuted, mostly at low levels of government, for using taxpayer money on banquets and trips, for example, or keeping a public vehicle for personal use.
It’s less clear how effective he has been in going after flagrant cases of corruption in the upper ranks of power, although the deputy head of China’s main economic planning agency, Liu Tienan, was dismissed amid allegations that he had colluded with a private business for personal gain.
State-run media reported that in the first quarter of the year, there were more than 3,600 prosecutions of corruption involving $87.5 million. Those numbers put Xi on pace to outdo his predecessor, Hu Jintao, who also sought to clean up the party in his first year in office, in 2003. But the quarterly report didn’t break down the cases by levels of government. Though Xi’s crusade has already gone on longer and been more sweeping than those of his predecessors, many experts think the frugality fervour won’t last. Once the campaign ends, they say, officials will probably go back to their old ways.
Beyond that, Xi’s actions do little to address what most see as the root of the problem: a lack of public accountability.
“At the end of the day, all this is a charade,” said Pei.
Some officials complain that Xi’s campaign, while good for the economy in the long run, is having the opposite effect at the moment, hampering efforts to bolster domestic consumption.
What’s more, some have responded to the crackdown by taking their spending underground, with state media citing reports of lavish sauna-bath receptions held in farmyards and officials drinking premium liquor disguised in mineral water bottles.
Even merchants know how to play the game.
At a Gucci shop in Beijing recently, a saleswoman showed off a $1,500 handbag for men, boasting its Florence-made leather imprinted with the brand’s double-G logo. Asked whether it would make a good gift for someone in government, she demurred, pointing instead to another model decidedly more understated but nearly as expensive.
“I don’t know if this is suitable,” she said. “The logo is too obvious.” Reported by Toronto Star 11 hours ago.
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China: The Great Economic Transformation
The Great Economic Transformation! The Chinese are suckers for adjectives to describe and give power and eminence to their attributes, actions or constructions. The Long March. The Cultural Revolution. The Great Wall, the Yellow River. A good adjective always makes it sound as if it’s true. The Chinese have taken over as the superlative attributor to everything. The tallest (soon-to-be) building in China, the Shanghai Tower, is the living proof that China plans on making itself into a byword for superlatives it’s ‘–est’ everything these days.
China is rapidly becoming a transformed nation. But, the Chinese are still saving more, while countries like the USA and the UK are spending more and saving very little. Given the western world’s current state of economic affairs, they should get their own house into order and save a little more with the rocky road that seems to be stretching out in front of us. A bit of money put away wouldn’t go amiss, would it? The US and the UK have one of the lowest household-savings rates in the world (according to economic date revealed for 2013 by the OECD), with the USA standing at 4% and the UK amounting to 5.4%. The average Brit puts away just 5.4% of his salary. Maybe he’s not earnng enough, in the consumer-bitten society in which he lives having to fork out for that new smartphone, the internet connection, the kids schooling, the transport, the hike in energy prices and the rest that goes with our lifestyles.
But, will that Chinese tendency to save money and put it away also be part of the Great Transformation that is underway? The Chinese have traditionally saved money because they were worried about the future, because they have little choice but to put the money away for the rainy day. Under Communism, you needed your brolly most days as it tended to rain quite a bit. But, despite the fact that China has done little to change its political regime except welcome with open arms the army of workers that trudge to the factories day-in and day-out and have a growth rate that exceeds expectations of even the best and the most famous, they have little possibility of doing anything else except fending for themselves at retirement age. As things stand right now, the Chinese are however, the ‘savers’ of the world, maybe in more way than one. They will change the way we consume and the way that we produce. Although, it’s debatable as to whether they will actually save the world, or rather plunge us into disarray and disillusion, dragging us kicking and screaming along behind them. But, they are literally, the country that saves the most. Household consumption is the highest in no other country in the world than in China. Yet, another superlative. They have a household-savings rate of 54% (according to figures of the IMF).
But the Chinese state (at a time when we are cutting back at home) is starting to implement a massive retirement pension scheme that will enable 325 million Chinese to benefit from the rural pension scheme. There are 185 million Chinese over the age of 60 and that will end up doubling within the next fifteen years, according to demographers. There had to be a change for the better for those reaching retirement age.
The average savings rate for the world is just 20%. That means that the average Chinese person is putting away more than half their salary every month for the rainy day. The housing boom in China and rising prices has meant that the Chinese are having to save more these days. House prices rose last year by 9.3%. The Chinese government has been trying for ages now to burst the bubble that they are living in concerning the housing market. But, they are far from slamming the breaks on anything at all and even the laws stopping single people from buying more than one house in some cities or increasing down payments (for second-time buyers) elsewhere, little has been done to stop the hike. They are superlative-ing themselves in that market too!
But, what China really needs to become the ‘-est’ in terms of consumption, which will really transform their economy, is to improve the social safety net and improve household incomes. The academic reforms that are also underway will enable people to enter the market with greater skills and command higher salaries. People will earn more. They will save less if they have a better safety net behind them just in case they fall and need to be caught. Those reforms are underway, but still not quite there. This is despite the fact that literacy levels are over 90% today, whereas they were at around 20% in the 1950s. Between 1995 and 2005 the number of doctoral-research degree holders was multiplied by 4. Its education budget stands at $100 billion and has increased by 20£ on average every year for the past 15 years.
China is already the world’s largest contributor to growth in terms of consumption in the world. Consumption (real final) has increased by 8.5% every year since 1995, on average. Growth in GDP means that consumption is on the up. Poverty has been reduced for 400 million Chinese people in 20 years. Living standards have changed for many. To complete the Great Transformation, the Chinese will need to stop saving like money hoarders and start spending some of that cash. To do that, they will need to feel confident. They already have that. Confidence is not lacking. What is lacking is the curb in the housing prices and the insurance that they will be given a helping hand at retirement age and that will mean that they will become the biggest, the best and the largest consumers in the world.
The Great Economic Transformation? It’s on. The March has begun. They will become capitalist consumers just like the rest of us. They will still pull the wool over their eyes and make out that they are doing it for the common good of Communist ancestors that are long dead. But, that’s a white lie. We all know they are on the Great March to Capitalism and Consumer Society. Let’s hope they learn the lessons from our mistakes too.
*Originally Posted China: The Great Economic Transformation*
*You might also enjoy*
*Move Over Marx, Here comes Obama Death of the Dollar *
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*EU27 Youth Unemployment Hits 23.5% Walmart Fined $82 million for Waste Disposal *
*The Dreaded Curse of the IMF! The Biggest Sell-Offs in History *
*HyperInflation - 10 Worst Cases China Fakes Trade Surplus*
*It's Not the Dollar that's dead, It's the USA!* Reported by Zero Hedge 12 hours ago.
China is rapidly becoming a transformed nation. But, the Chinese are still saving more, while countries like the USA and the UK are spending more and saving very little. Given the western world’s current state of economic affairs, they should get their own house into order and save a little more with the rocky road that seems to be stretching out in front of us. A bit of money put away wouldn’t go amiss, would it? The US and the UK have one of the lowest household-savings rates in the world (according to economic date revealed for 2013 by the OECD), with the USA standing at 4% and the UK amounting to 5.4%. The average Brit puts away just 5.4% of his salary. Maybe he’s not earnng enough, in the consumer-bitten society in which he lives having to fork out for that new smartphone, the internet connection, the kids schooling, the transport, the hike in energy prices and the rest that goes with our lifestyles.
But, will that Chinese tendency to save money and put it away also be part of the Great Transformation that is underway? The Chinese have traditionally saved money because they were worried about the future, because they have little choice but to put the money away for the rainy day. Under Communism, you needed your brolly most days as it tended to rain quite a bit. But, despite the fact that China has done little to change its political regime except welcome with open arms the army of workers that trudge to the factories day-in and day-out and have a growth rate that exceeds expectations of even the best and the most famous, they have little possibility of doing anything else except fending for themselves at retirement age. As things stand right now, the Chinese are however, the ‘savers’ of the world, maybe in more way than one. They will change the way we consume and the way that we produce. Although, it’s debatable as to whether they will actually save the world, or rather plunge us into disarray and disillusion, dragging us kicking and screaming along behind them. But, they are literally, the country that saves the most. Household consumption is the highest in no other country in the world than in China. Yet, another superlative. They have a household-savings rate of 54% (according to figures of the IMF).
But the Chinese state (at a time when we are cutting back at home) is starting to implement a massive retirement pension scheme that will enable 325 million Chinese to benefit from the rural pension scheme. There are 185 million Chinese over the age of 60 and that will end up doubling within the next fifteen years, according to demographers. There had to be a change for the better for those reaching retirement age.
The average savings rate for the world is just 20%. That means that the average Chinese person is putting away more than half their salary every month for the rainy day. The housing boom in China and rising prices has meant that the Chinese are having to save more these days. House prices rose last year by 9.3%. The Chinese government has been trying for ages now to burst the bubble that they are living in concerning the housing market. But, they are far from slamming the breaks on anything at all and even the laws stopping single people from buying more than one house in some cities or increasing down payments (for second-time buyers) elsewhere, little has been done to stop the hike. They are superlative-ing themselves in that market too!
But, what China really needs to become the ‘-est’ in terms of consumption, which will really transform their economy, is to improve the social safety net and improve household incomes. The academic reforms that are also underway will enable people to enter the market with greater skills and command higher salaries. People will earn more. They will save less if they have a better safety net behind them just in case they fall and need to be caught. Those reforms are underway, but still not quite there. This is despite the fact that literacy levels are over 90% today, whereas they were at around 20% in the 1950s. Between 1995 and 2005 the number of doctoral-research degree holders was multiplied by 4. Its education budget stands at $100 billion and has increased by 20£ on average every year for the past 15 years.
China is already the world’s largest contributor to growth in terms of consumption in the world. Consumption (real final) has increased by 8.5% every year since 1995, on average. Growth in GDP means that consumption is on the up. Poverty has been reduced for 400 million Chinese people in 20 years. Living standards have changed for many. To complete the Great Transformation, the Chinese will need to stop saving like money hoarders and start spending some of that cash. To do that, they will need to feel confident. They already have that. Confidence is not lacking. What is lacking is the curb in the housing prices and the insurance that they will be given a helping hand at retirement age and that will mean that they will become the biggest, the best and the largest consumers in the world.
The Great Economic Transformation? It’s on. The March has begun. They will become capitalist consumers just like the rest of us. They will still pull the wool over their eyes and make out that they are doing it for the common good of Communist ancestors that are long dead. But, that’s a white lie. We all know they are on the Great March to Capitalism and Consumer Society. Let’s hope they learn the lessons from our mistakes too.
*Originally Posted China: The Great Economic Transformation*
*You might also enjoy*
*Move Over Marx, Here comes Obama Death of the Dollar *
*Phillippines Waiting in the Wings Big Bond Sell-Off*
*EU27 Youth Unemployment Hits 23.5% Walmart Fined $82 million for Waste Disposal *
*The Dreaded Curse of the IMF! The Biggest Sell-Offs in History *
*HyperInflation - 10 Worst Cases China Fakes Trade Surplus*
*It's Not the Dollar that's dead, It's the USA!* Reported by Zero Hedge 12 hours ago.
↧
China and The Biggest Territory Grab Since World War II
Yesterday, the New York Times reported that China’s mapping authority, Sinomaps Press, issued a new map of the country showing 80% of the South China Sea as internal Chinese water. What’s at issue? Each year, more than half of the world’s annual merchant tonnage passes through the South China Sea as well as a third of the global trade in crude oil and over half of LNG trade. Beijing’s assertion of sovereignty over that body of water does not necessarily mean it will close the South China Sea off to international commerce. Yet that would be the next step. Given its extremely broad view of its right to regulate coastal traffic, Beijing will undoubtedly define the concept of “innocent passage” narrowly and require vessels entering that sea to obtain its permission beforehand and similarly require aircraft flying over it to do the same. The South China Sea, bordered by eight nations, has long been considered international water. The New York Times noted Asian diplomats have seen the map with the stunning claim. Its release, the Times article states, was delayed from late 2012 “so that it could be formally authorized by the Chinese senior leadership.” The map is not yet publicly available. Chiang Kai-shek’s Republic of China in 1947 issued maps with dashes at the edge of the South China Sea. The ambiguous markings led to the term “cow’s tongue” because of the shape of the area defined by the dashes. Mao Zedong’s victorious People’s Republic in 1949 adopted as its own Chiang’s expansive South China Sea claims. Hopeful analysts had long maintained that the dashes—nine or ten of them depending on the map—signified China’s claim to only the islands inside the cow’s tongue. Those islands are subject to competing claims by other shoreline nations, specifically, the Philippines, Vietnam, Malaysia, Brunei, Indonesia, and Taiwan. Moreover, there was great optimism when China ratified the U.N. Convention on the Law of the Sea in June 1996. That multilateral treaty includes detailed rules on the calculation of territorial waters—generally limiting territorial claims to waters no further than 12 nautical miles from shore—and those rules were inconsistent with Beijing’s general assertion of sovereignty over the South China Sea. Accordingly, analysts naturally thought—hoped, actually—that China had abandoned its expansive 1947-based claim. Yet Beijing, despite treaty obligations, had long been laying the groundwork to close off the South China Sea to other nations. For instance, in August 2011 the official Xinhua News Agency issued a report stating China had “three million square kilometers of territorial waters.” It was impossible for the country to get to that figure without including its claim to most of the 2.6 million square kilometers of the South China Sea. Moreover, in that same month Xinhua was even clearer when it asserted that the islands in the South China Sea “and surrounding waters” were “part of China’s core interests.” By using “core interests,” Beijing was signaling it could never compromise China’s sovereignty over either the islands or those waters. In any event, Beijing’s new map, according to those who have seen it, removes any ambiguity by converting the dashes into a national boundary. All islands and waters inside the line, therefore, are China’s, at least according to the Chinese. It is the biggest attempted grab of territory since World War II. The new map will roil Asian nations, of course. Last year, Beijing used force to seize Philippine territory, Scarborough Shoal in the South China Sea. The United States, despite its treaty obligations to defend the Philippines, let the Chinese take what they wanted. Nobody in the White House wanted to confront China, and there were voices in the Pentagon saying that China’s aggression served the Philippines right for kicking American forces out of the Clark and Subic bases. Now, the Chinese are going after Ayungin Shoal, long considered Philippine territory. The ongoing seizure of pieces of the Philippines is an indirect challenge to America. Now, however, the issuance of the new map means Beijing has taken on Washington directly. If there has been any consistent American foreign policy over the course of two centuries, it has been the defense of freedom of navigation. Why is this important? The world has prospered because of trade conducted freely over wide seas lanes and air routes. So China’s claim to the South China Sea, if permitted to stand, will mark the end of the open architecture of the Post-War world. At the end of this week, President Obama will meet his Chinese counterpart, Xi Jinping, in Rancho Mirage for two days of intensive talks. The White House, in announcing the meeting on May 20, said it wanted to “discuss ways to enhance cooperation.” The administration is hoping to build an enduring partnership with China’s increasingly militant one-party state and is trying to avoid disagreement. Yet on the Beijing’s sea claims there can be no compromise. Either the South China Sea is Chinese or it is international water. The stakes—for China, for the United States, for the international community—are hard to overstate. Follow me on Twitter @GordonGChang
Reported by Forbes.com 6 hours ago.
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U.S.-China Summit Reveals Beijing's Drive
The California summit this week between Presidents Barack Obama and Xi Jinping reflects the surprising speed with which China's new leader has asserted his authority and laid out his vision for a "great power."
Reported by Wall Street Journal 2 minutes ago.
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PMI pullback adds to China slowdown fears
China's factory activity shrank for the first time in seven months in May as both domestic and external demand softened, adding to concerns that the world's second-largest economy is losing momentum.
Reported by The Age 36 minutes ago.
Reported by The Age 36 minutes ago.
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China Manufacturing Data Soften
HSBC's gauge of manufacturing activity in China slipped into contractionary territory in May, despite the country's official reading showing a slight improvement.
Reported by Wall Street Journal 10 minutes ago.
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China PMIs highlight economic momentum slowing down
BEIJING (Reuters) - China's factory activity shrank for the first time in seven months in May as both domestic and external demand softened, while growth in the services sector cooled, pointing to slowing momentum in the world's second-largest economy.
Reported by Reuters 13 minutes ago.
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China, U.S. Agree To Save Planet From Climate Change
China and the United States agreed to step up joint efforts to save the planet on Friday. Though so far both are doing a -- how do I say this and be impartial -- a subpar job at it when compared to their smaller peers in Europe and Latin America.
Reported by Forbes.com 13 minutes ago.
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Singapore’s water companies aim to quench China’s thirst
Water companies in Singapore are attracting big-name investors as they profit from exporting their expertise to China, which plans to spend US$850 billion over the next decade to improve its scarce and polluted water supplies.
Singapore is a hub for water technology because of its own concerns about water security. With few domestic freshwater resources of its own, the city-state has been trying to reduce its reliance on imports from neighbouring Malaysia, where politicians have in the past threatened to turn off the taps. Reported by S.China Morning Post 24 minutes ago.
Singapore is a hub for water technology because of its own concerns about water security. With few domestic freshwater resources of its own, the city-state has been trying to reduce its reliance on imports from neighbouring Malaysia, where politicians have in the past threatened to turn off the taps. Reported by S.China Morning Post 24 minutes ago.
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Jared Bernstein: The China Dance: It Ain't No One Step
I found this long critique of Chinese expansionary economics in Sunday mornings New York Times to be pretty misguided. Lots of good info and the authors did their homework, but their core thesis seemed wrong to me in the following ways:
· I don't agree with the assertion that "Beijing's essentially unlimited financial resources" support China's pursuit of "... a soft but unstoppable form of economic domination," allowing "... the country to be a game-changing force in both the developed and developing world, one that threatens to obliterate the competitive edge of Western firms, kill jobs in Europe and America and blunt criticism of human rights abuses in China."
· That's both non-economic and over-the-top in ways I'll stress below.
· There's too little of the Michael Pettis/Martin Wolf-style analysis of simple balance-of-payment identities that underlie a lot of what's going on here. These imbalances are highly problematic and damaging for sure, but they're the stuff of demand excesses and shortfalls, not world domination.
· In this regard, let's be very clear that there's a two-step going on, with the U.S. and others as willing dance partners. Our policy makers have happily absorbed excess Chinese (and other surplus countries') savings, exporting scads of demand/jobs and supporting large US trade deficits (meanwhile, obsessing over far less damaging-to the contrary, necessary in the downturn-budget deficits).
· There's a vilification of state-owned capitalism and deification of free market capitalism, when there's no such thing as either -- we all exist on continua. True, China needs more market-driven decisions and particularly, higher living standards through increased consumption of their household sector. But our policy makers need to take more control of our own international accounts in ways stressed below.
Neither China, nor any other country, has "unlimited financial resources." Finite resources are, in fact, the core principle of economics. When you tee up the problem that way, you risk missing the actual problem, which is a combination of state power and the savings imbalances noted above. As the authors note, it has long been the policy of China to suppress household consumption, virtually insuring both excess national savings (Pettis stresses that Chinese household savings are not unusually high) and wide-spread poverty (though they should have noted that there are at least internal noises in China pushing the other way -- we'll have to see what they amount to).
Those national savings must flow somewhere, and flow they do, to countries across the globe that consume more than they produce. This is not long-term functional, to be sure -- remember the quip during the latter 2000s in response to this corner of international finance?: China sends us toxic toys and we send them toxic debt. And, as the authors note, a big part of the problem is China's mercantile stance, suppressing the value of their currency and jealously controlling capital flows.
But that's called "globalization" and it isn't always pretty and not everyone is going to play it the way you want them to. To wring your hands about China's outward investment is a bit like complaining that LeBron just dunked over you. That's what he does. Our job then becomes like that of the Pacers: How do we stop LeBron? Whining about how he keeps slamming it down in our face won't do it.
In that sense, this passage is key:
... when Chinese state-owned companies go abroad and seek to play by rules that emanate from an authoritarian regime, there is grave danger that Western countries will, out of economic need, end up playing by Beijing's rules.
They may have a point with developing economies, but why should that apply to advanced ones? First off, by elevating a strong dollar as a policy goal (which hurts the competitiveness of our tradable sector), refusing to seriously go after currency managers like China, allowing our manufacturing base to erode while promoting "free trade" (whatever that is), consistently and uncritically absorbing savings from abroad -- analytically equivalent to exporting demand, deregulating our financial markets and then watching bubble after bubble (dot.com, housing) inflate to offset the lost demand, we have been co-conspirators. If you'd rather not slog through the balance-of-payments math, a quick look at a two-sided scale should be enough to convince you that imbalances require both sides to offset each other.
But while the math may be unforgiving, the policy set just articulated need not be. It is within our scope to reverse every one of those policies just noted, reduce our trade deficit and promote more internal demand. In fact, it is essential if we ever hope to get back to full employment.
Second, and here I thought the authors landed in the right place -- we must be vigilant in our regulation of foreign investment. As long as the imbalances persist, China and other surplus countries will make acquisitions like Smithfield. The key is that we provide the requisite level of oversight to insure that our standards, not theirs, prevail. In this regard, and in contrast to conservative anti-regulation mantras, globalization requires higher, not lower, regulatory standards in advanced economies. And I would very much extend that to financial markets as unregulated global securitization clearly leads to systemically under-priced risk.
Though I wouldn't bet on the outcome, the Pacers are turning out to be a lot more competitive against the Heat than a lot of folks expected. We should emulate them in the globalization sphere.
This post originally appeared at Jared Bernstein's On The Economy blog. Reported by Huffington Post 2 minutes ago.
· I don't agree with the assertion that "Beijing's essentially unlimited financial resources" support China's pursuit of "... a soft but unstoppable form of economic domination," allowing "... the country to be a game-changing force in both the developed and developing world, one that threatens to obliterate the competitive edge of Western firms, kill jobs in Europe and America and blunt criticism of human rights abuses in China."
· That's both non-economic and over-the-top in ways I'll stress below.
· There's too little of the Michael Pettis/Martin Wolf-style analysis of simple balance-of-payment identities that underlie a lot of what's going on here. These imbalances are highly problematic and damaging for sure, but they're the stuff of demand excesses and shortfalls, not world domination.
· In this regard, let's be very clear that there's a two-step going on, with the U.S. and others as willing dance partners. Our policy makers have happily absorbed excess Chinese (and other surplus countries') savings, exporting scads of demand/jobs and supporting large US trade deficits (meanwhile, obsessing over far less damaging-to the contrary, necessary in the downturn-budget deficits).
· There's a vilification of state-owned capitalism and deification of free market capitalism, when there's no such thing as either -- we all exist on continua. True, China needs more market-driven decisions and particularly, higher living standards through increased consumption of their household sector. But our policy makers need to take more control of our own international accounts in ways stressed below.
Neither China, nor any other country, has "unlimited financial resources." Finite resources are, in fact, the core principle of economics. When you tee up the problem that way, you risk missing the actual problem, which is a combination of state power and the savings imbalances noted above. As the authors note, it has long been the policy of China to suppress household consumption, virtually insuring both excess national savings (Pettis stresses that Chinese household savings are not unusually high) and wide-spread poverty (though they should have noted that there are at least internal noises in China pushing the other way -- we'll have to see what they amount to).
Those national savings must flow somewhere, and flow they do, to countries across the globe that consume more than they produce. This is not long-term functional, to be sure -- remember the quip during the latter 2000s in response to this corner of international finance?: China sends us toxic toys and we send them toxic debt. And, as the authors note, a big part of the problem is China's mercantile stance, suppressing the value of their currency and jealously controlling capital flows.
But that's called "globalization" and it isn't always pretty and not everyone is going to play it the way you want them to. To wring your hands about China's outward investment is a bit like complaining that LeBron just dunked over you. That's what he does. Our job then becomes like that of the Pacers: How do we stop LeBron? Whining about how he keeps slamming it down in our face won't do it.
In that sense, this passage is key:
... when Chinese state-owned companies go abroad and seek to play by rules that emanate from an authoritarian regime, there is grave danger that Western countries will, out of economic need, end up playing by Beijing's rules.
They may have a point with developing economies, but why should that apply to advanced ones? First off, by elevating a strong dollar as a policy goal (which hurts the competitiveness of our tradable sector), refusing to seriously go after currency managers like China, allowing our manufacturing base to erode while promoting "free trade" (whatever that is), consistently and uncritically absorbing savings from abroad -- analytically equivalent to exporting demand, deregulating our financial markets and then watching bubble after bubble (dot.com, housing) inflate to offset the lost demand, we have been co-conspirators. If you'd rather not slog through the balance-of-payments math, a quick look at a two-sided scale should be enough to convince you that imbalances require both sides to offset each other.
But while the math may be unforgiving, the policy set just articulated need not be. It is within our scope to reverse every one of those policies just noted, reduce our trade deficit and promote more internal demand. In fact, it is essential if we ever hope to get back to full employment.
Second, and here I thought the authors landed in the right place -- we must be vigilant in our regulation of foreign investment. As long as the imbalances persist, China and other surplus countries will make acquisitions like Smithfield. The key is that we provide the requisite level of oversight to insure that our standards, not theirs, prevail. In this regard, and in contrast to conservative anti-regulation mantras, globalization requires higher, not lower, regulatory standards in advanced economies. And I would very much extend that to financial markets as unregulated global securitization clearly leads to systemically under-priced risk.
Though I wouldn't bet on the outcome, the Pacers are turning out to be a lot more competitive against the Heat than a lot of folks expected. We should emulate them in the globalization sphere.
This post originally appeared at Jared Bernstein's On The Economy blog. Reported by Huffington Post 2 minutes ago.
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US manufacturing lobby presses Obama on China
Washington (AFP) June 3, 2013The US manufacturing lobby on Monday said President Barack Obama should get tough with President Xi Jinping on alleged Chinese cyber spying and what it sees as predatory economic policies. The Alliance for American Manufacturing (AAM) also pressed Obama to raise claims China manipulates its currency, perceived Chinese trade abuses and intellectual property theft with Xi when they meet Friday Reported by Energy Daily 2 hours ago.
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Death toll rises to 120 in China`s poultry plant fire
The death toll from the fire at a poultry plant in northeast China`s Jilin Province had risen to 120, with about 70 people injured.
Reported by Zee News 2 hours ago.
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World › China blocks Tiananmen anniversary remembrance
Chinese police blocked the gate of a cemetery housing victims of the Tiananmen crackdown on its 24th anniversary Tuesday, part of a sweeping annual effort to bar commemorations of the event. Authorities launch a major push every June 4 to prevent discussion of the violently crushed 1989 pro-democracy protests, China's…
Reported by Japan Today 2 hours ago.
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China poultry plant fire kills 119: local government
Beijing (AFP) June 03, 2013At least 119 people were killed in a fire which swept through a poultry processing plant in northeast China on Monday, local officials said, in what appeared to be the country's deadliest blaze for 12 years. The fire engulfed the Baoyuan poultry plant in minutes following a blast triggered by a suspected chemical leak, according to workers quoted by various state media outlets. More tha Reported by Terra Daily 2 hours ago.
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55 killed in China slaughterhouse fire
Beijing, June 3 : At least 55 people were killed Monday when a major fire swept through a poultry processing plant in northeast China's Jilin province, authorities said.
Reported by newKerala.com 2 hours ago.
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