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China Focus: Chinese exporters see limited impact from weakening yuan

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SHANGHAI, Aug. 12 (Greenpost) — China’s renminbi extended its sharp drop against the U.S. dollar on Wednesday from the previous day, but exporters say a weakened yuan has a limited effect on their business.

The official guidance rate of the Chinese currency shed 1.6 percent, or 1,008 basis points, on Wednesday, following Tuesday’s sharp fall of 1.9 percent.

Such a sharp decline against the greenback is unusual for the Chinese currency, which has been moving within a narrow range this year despite a firming dollar on expectations of the U.S. Federal Reserve’s rate hikes.

Analysts have largely attributed the correction in the exchange rate to China’s response to the IMF’s call for the currency to better reflect market forces, but the yuan’s weakening came on the heels of weak July export data. Yet exporters have shown a mixed response to the yuan’s drop in value.

“The depreciation does benefit Chinese exports, but to a limited effect.” said Liang Hong, chief economist at China International Capital Corporation.

Liang said that the depreciation that came as a result of tweaking the formation of the renminbi’s central parity rate will only marginally relieve the pressure on growth brought by slowing exports.

China’s July exports slid 8.3 percent from a year ago, far below the street consensus of -1.5 percent.

“The depreciation will boost confidence among exporters after the sluggish July export data,” said Lu Dong, deputy manager at the Shanghai branch of China Export & Credit Insurance Corp. “But that is not the purpose for the yuan’s slide and it won’t be the start of massive depreciation against the dollar.”

According to Julian Evans-Pritchard, China economist at Capital Economics, the change in how the reference rate is set is primarily intended as a move toward greater liberalization of the foreign exchange market ahead of the IMF’s decision about whether or not to include the renminbi in the SDR basket.

Though the yuan has depreciated significantly against the dollar, the drop in value is not as pronounced compared to other currencies.

Still, the yuan’s largest single day drop in almost two decades has some exporters cheering.

“Nothing makes me happier than seeing the yuan weaken against the dollar,” said Jiang Zhencheng, general manager of Shanghai Tianmao Stationary Co. Ltd.

“A strong yuan has blunted our competitiveness in the international market. The correction is such a relief for us as the United States is our key market,” Jiang said.

“The depreciation will benefit textiles and light industry as the two sectors in China are very export-oriented,” said CITIC analyst Ju Xinghai.

However, the actual positive impact of the depreciation is not as much as in theory because change in the exchange rate will lead to price adjustment, Ju added.

“The devaluation of the renminbi does work to our advantage. However, as a weaker yuan pushes up trade volume, our export price will also have to readjust,” said Li Qi, director of production at Licheng Clothing Group.

“Even if we don’t, our overseas clients will demand it anyway,” Li said. Enditem

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China to make law to get tax from property

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IN-DEPTH

China Focus: Property tax legislation moving forward, though slowly

BEIJING, Aug. 6 (Xinhua) — China’s long discussed and often stagnated property tax plan has once again come under the public spotlight following its inclusion in the national legislation plan this week.

The Standing Committee of the National People’s Congress (NPC), China’s legislature, included a property tax law in its legislation plan, signalling lawmakers’ determination to push ahead with the reform, although progress has been extremely slow.

“Conditions to enact these laws are ripe,” said the Standing Committee website. “The 12th NPC plans to review them within its tenure [which ends in early 2018].”

Prof. Shi Zhengwen of fiscal and financial law at the China University of Political Science and Law expects the law to be passed by the end of 2017.

But the passing of the law does not necessarily mean it will be put into effect right afterwards, analysts said, citing the timing and specific clauses in the law as possible obstacles for its implementation.

The coverage, tax rates and possible exemptions for houses under a certain size are among the most debated topics that need a serious balancing of interests, insiders involved in the legislation said.

China’s current housing tax mechanism mainly taxes development and sales of a property, without taxing home ownership or the market value of homes.

The low cost of holding property has led to speculation as investors tend to purchase multiple houses and hold them off the market in hopes of further appreciation, which has fuelled price rises in major cities already wrestling with tight supply.

As part of efforts to cooling the property market amid growing public complaints over runaway housing prices, China introduced a trial property tax in cities like Chongqing and Shanghai in 2010.

The Chongqing tax tryout focused on high-end housing while the Shanghai method mainly targeted ownership of multiple houses.

Due to limited rates ranging from 0.5 to 1.2 percent, however, the taxes were seen as too low to be effective in keeping local housing prices in check.

Rumors later spread that more cities, including Wuhan, Hangzhou and Xiangtan, were “technically ready” to join the pilots, but none made any concrete moves, which some analysts have blamed on a lack of legal backing.

In a first sign of the central leadership’s determination, a reform plan approved by the Third Plenary Session of the 18th Communist Party of China Central Committee in 2013 made clear that the legislation of taxes in the property sector would be accelerated.

As the country’s growth started to face increasing downward pressure in recent years and the property market began to cool, discussions on property tax have gradually died down as more attention has shifted to supporting growth.

Balancing the relationship between the property tax’s possible impact on the market and economic development will be central to the reform agenda, said Zhang Bin, a researcher at the Chinese Academy of Social Sciences.

“In the longer term, the aim of the property tax legislation is to increase taxes on home ownership to improve the price mechanism,” he said.

Zhang Dawei, chief analyst at Centaline Property, pointed out another factor that may hamper the implementation of the tax — property registration.

Given that property registration has yet to be finished, there will be a very low possibility of the property tax being implemented in the short term, which in turn will have limited impact on the market, Zhang said.

With a clear reform roadmap and transparent policies, the public could be more prepared for possible policy changes to help stabilize market expectations to avoid wild swings in prices, analysts said.

China’s real estate market took a downturn in 2014 due to weak demand and a surplus of unsold homes. The cooling has continued into 2015, with both sales and prices falling and investment slowing.

The persistent weakness in the sector, combined with shrinking exports due to uneven global economic recovery, dragged China’s growth to 7 percent in the first half of the year, prompting the government to introduce an array of policies such as easing mortgage rules and removing purchase restrictions to activate the market.

On the back of the policies, new home prices have continued to rise for the third consecutive month in July, with average prices in a sample of 100 cities rising 0.54 percent month on month to 10,685 yuan (1,747 U.S. dollars) per square meter, according to a survey conducted by the China Index Academy, an independent research institute. Enditem

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China’s supreme court validates private loans for rightful purposes

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   BEIJING, Aug. 6 (Greenpost) — Companies will be allowed to lend and receive private loans for the sake of production management, according to the Supreme People’s Court (SPC) Thursday.

Defining “private loans” as financial exchanges among individuals, legal entities and other organizations, the judicial explanation clarifies that private loan contracts signed by companies for production management should be recognized by courts as long as they do not violate the Contract Law, and such financial exchange activities should be protected.

Chinese courts closed more than 1 million private loan cases in 2014, a year-on-year increase of 19.9 percent, making private loans the second most common civil case after family.

“Allowing companies to conduct financing activities does not mean that they can do whatever they want for a loan,” said Du Wanhua, a senior SPC official, at a press conference Thursday, adding that the document aims to ensure loan security and justice in pace with finance market reform.

The document specifies conditions in which private loan contracts should be deemed invalid, including a borrower knowing the loan is granted by financial institutions to the lender who then lends it out as usury, as well as knowingly lending funds for criminal activities.

Courts should reject cases on private loans involved in criminal activities and pass evidence to police or judicial organs.

According to the SPC, a borrower is obligated to pay interest in its entirety if the annual interest rate is not above 24 percent. If the rate is above 36 percent, a borrower has the right to demand lenders return the part of interest accrued over the 36 percent threshold if it has already paid for.

“Interest based on an annual rate between 24 and 36 percent is not legally valid either, but if it has already been paid, courts will turn down the borrower’s request to demand it back,” Du said.

The rules will take effect on Sept. 1. Enditem

Source Xinhua

Editor Xuefei Chen Axelsson

China, Chinese circle, culture, Indepth, Opinion

What my Chiedish Child Teaches Me Every Day (1)

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By Xuefei Chen Axelsson

Stockholm, Aug4(Greenpost)–My Chiedish(Chinese-Swedish) daughter Annie was born in December, 2007, my Chinese friend said it was a wonderful Christmas present for me. Indeed, she completely changed my life and I got something new every day.

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When she was two years old and three months, we sent her to the kindergarten. There she began to learn the Swedish thinking. Before that I was very proud that she stayed most of the time with me and could be able to speak in Chinese and recite Chinese poems.

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But after going to the kindergarten, she was like a little mirror to vividly imitate the teacher. For example, she could use her little hand to put on my forehead and said, “Alla barn måste sova nu meaning All the children must sleep now.”

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She learnt the rules that man should not use violence and if anybody uses it, the other should not hit back, but say “stop”.

 

One evening I was tired and lay in bed, my husband also lay in bed reading a book. By accident I threw a book to Jan’s hips and he felt the pain and threw the book to the floor angrily.

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Annie cried immediately and said to Dad, “Pappa, du får inte slanga, du kan saja stoppa, (Dad, you shouldn’t throw the book to the floor, if you are not happy, you can say stop)!”

 

We both felt a little bit embarrassing and felt glad that she learnt a good solution from school. It was really a good lesson for me.

 

Of course, I feel she has too much freedom. Not long after she went to the kindergarten she began to talk at the table, I decide. She brought all her rules at the kindergarten to our home table. Anyone who wants to speak must raise his or her hand.

 

This reminds me of my childhood. The only thing I remember is that children should not talk at the dinner table. Only my dad talked a lot loud and sometimes only my mother could criticize him for talking too much and too loud.

 

We learnt to obey whatever Mom and Dad said. But now Annie began to speak what she thinks. There were a few times she cried so fiercely that she said it was always the parents decide and as a child, she never made any decision. Afterwards we have to give in.

 

In Stockholm, any child can find a kindergarten within 500 meters. There is a good website where people can see where a school sits and how it is like. The same rules for primary school. In comparison with Beijing, many parents in Beijing wish their children to go to the best school and in that way it needs a lot of sponsorship from parents. But in Stockholm, it is the city that pays for every child. A school is good or bad, depends on how many students it can recruit.

 

If it has too few students, it will bankrupt. And Annie’s new school came from her own classes and in combination with another bankrupted school.

 

Annie speaks Swedish with Dad and Chinese with Mom. After years of listening to our conversation in English and watching TV, she can speak English too.

 

She is proud of being trialingual, but sometimes she feels it is too much to read and write the Chinese characters.

 

Thus it is still a long way to go to really master the Chinese language, but she has had a good foundation of speaking the language.

Business, China, Chinese circle, Energy, Environment, Exchange, Indepth, News, Opinion, World News

Congratulations to Beijing for winning the right to hold 2022 Winter Olympics

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By Xuefei Chen Axelsson

Stockholm, Aug. 4(Greenpost)-Chinese people all over the world are happy for Beijing and Zhangjiakou to win the right to host 2022 Winter Olympics.

   Vice Premier Liu Yandong, head of the Beijing 2022 Winter Olympics bidding delegation returned to Beijing on August 2 and welcomed by various circles of the people in Beijing. Photo by Xinhua, Yao Dawei.

The news came out on July 31st. Immediately after that I saw my Wechat friends circle spread out this news.

I sat in front of my computer and watched Swedish SVT finding out that they got an one hour and 22 minutes live broadcasting program to specially live cover the voting site in Kuala Lumpur Malaysia.

I felt very excited when I heard the news and tears almost came out of my eyes. It was as if I won the world championship or in other words that I could feel the happiness of a winner in sport.

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Liu Yandong with delegates in Lausanne for Beijing’s bidding briefing for 2022 Winter Olympics Games.

It was such a short notice type of happiness. I heard the news last month that my former colleague Yang Binyuan who was a project leader during 2008 Oympic Games in Beijing were in Lausanne to participate in the bidding process with Chinese Vice Premier Liu Yandong, famous TV host Yang Lan, Sport star Yao Ming,  Beijing Mayor Wang Qishan and many others.

 

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The tallest in the middle is Yao Ming and the third from left Yang Binyuan. Photo from Yang Binyuan’s facebook.

According to SVT, Sweden also bid for 2022 Winter Olympics, but when it heard China also bid for it, it withdrew hoping for 2026. In fact, many countries withdrew at the news that China wanted to bid.

This time China seemed to prepare for the bidding not that long time ago, however many work has been done long time before thinking of bidding for Olympics. For example the skiing site was built many years ago just for people’s sports recreation so that people around Beijing can enjoy the pleasure similar to that in Northeast China’s Heilongjiang and Jilin provinces.

But I think this bid has great to do with the support of President Xi Jinping’s idea of cleaning the environment in Beijing, developing the surrounding areas. So he said if Beijing and Zhangjiakou can hold 2022 Olympic Games, it will drive a consumption population of 300 million. That is a great business opportunity.

http://www.tudou.com/programs/view/6v6h1NnzgBY/

His words moved many people.

“Beijing is like a vampire absorbing all the talented people and various resources while the surrounding province was deprived of these resources. It is time to help the surrounding city to develop. I believe the 2022 Winter Olympics will help Zhangjiakou to develop for the better, congratulations,” said Huang Nan, an independent English  language professor in his Wechat circle.

Professor Wu Wenzhong from Beihang University also congratulated Beijing.

“Talking about Olympics, I was the English judge for 2008 Beijing Summer Olympics judges. I will be 68 years old by 2022, I like to be a volunteer for the 2022 Winter Olympics if possible,” said Professor Wu in his Wechat friends circle.

Swedish Olympic Committee President Stefen Lindberg said in a telephone interview that Beijing’s winning is not unexpected.

“It’s not unexpected. Beijing has the basis from 2008 Olympic Games and Zhangjiakou can be a good place for skiiing. Sweden will be preparing for 2026,” said Lindberg.

photo (31)In Beijing, Lin Mei sent me a photo saying that she and Swedish Ice Hocky Coach were invited to celebrate the victory of bidding.

Geely Group P.R. chief Michael Ning said Volvo made a good decision to choose Zhangjiakou as one of its production bases. The 2022 Winter Olympics will definitely be beneficial for them.

Of course the greatest benefit for Beijing will be the blue sky. It is a dream for many to have the blue sky and white cloud.  Beijing has created Olympics blue and Apec blue. Unfortunately it is very difficult to keep it for the long term.

According to British Stern report, China’s greenhouse gas emission is expected to decrease by 2025. With the efforts to hold 2022 Winter Olympics, the blue sky is expected to be able to continue by then.

 

中国温室气体排放总量可望2025年出现拐点

 

 

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News Analysis: Information Silk Road brings regional enterprises closer

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BEIJING, July 19 (Xinhua) — When Damir Karcas, who markets drinks from Serbia, came to southeastern China to promote his products a month ago, he knew little about selling on Chinese e-commerce sites, an increasingly popular venue for food and beverage sales.

“I paid little attention to market information in this field before, but it seems necessary to keep yourself tuned in to changing market conditions in China,” said Karcas.

As infrastructure development progresses steadily along the China-proposed Belt and Road, a trade and infrastructure network that connects Asian, European and African countries, breaking invisible barriers of information asymmetry stands out as a key task.

Failures haunt many firms that venture overseas due to misunderstandings with local stakeholders and ignorance of the local regulatory and cultural environment.

Information asymmetry has become the top issue facing overseas investment by businesses as many firms are ignorant of possible risks, according to Jia Huai, deputy head of the economic information department of the China Council for the Promotion of International Trade.

“It is reality that information and communication gaps create differences among individuals, groups and countries and misunderstandings about specific issues or projects when there is little or incorrect information,” said Aman Ullah Khan, Chairman of the Pak-China Business and Investment Promotion Council.

Jia suggested that enterprises at home and abroad establish an information exchange platform to develop trade and investment strategies according to the target country’s political, economic, cultural and social conditions.

An open and sound information-sharing mechanism should be based on big data and include databases, business connection platforms, consulting services as well as information collection, publication, screening and other customized services to help investors gain insight and expand their influence in their targeted markets.

Chinese government organizations and media groups are working to bridge the information gap and build an Information Silk Road. The State Information Center is constructing databases of countries involved in the initiative, and Xinhua News Agency rolled out a new line of information products to help global investors form better partnerships under the Belt and Road Initiative.

China’s bilateral trade with countries along the Belt and Road Initiative remained robust amid downward economic pressure and reached close to three trillion yuan (490.2 billion yuan) in the first half of 2015, about one-fourth of total trade volume.

“To avoid misconceptions and misunderstandings and to increase trust among stakeholders, partners, and investors, there should be fair and accurate flow of information. With the passage of time, economic and financial information will be as important as investment and other projects,” Khan added. Enditem

Business, China, Chinese circle, Exchange, Indepth, News, Opinion, World News

Xinhua Insight: A wave of startups raises tide of entrepreneurship

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   Xinhua Insight: A wave of startups raises tide of entrepreneurship

 

BEIJING, July 20 (Xinhua) — Guo Xin, 23, an undergraduate at Nankai University, feels no pressure from China’s economic slowdown. Instead, he sees positive changes encouraging startups.

“The economy is facing great downward pressure, but for entrepreneurs, the business environment has never been better,” Guo told Xinhua.

Guo is CEO of a an Internet finance company and has established a start-up each year for the past three years.

Like Guo, hundreds of thousands of young Chinese have started their own companies or projects in the past year or two as a startup frenzy grips the nation. Partly thanks to serious reforms, especially business registration reform, it is easier than ever to start a business.

China is entering a new stage of slower but more resilient growth, which President Xi Jinping has called the “new normal.” The essence of the “new normal” is an improved economic structure that relies on services, consumption and innovation.

STARTUPS SHOOT UP

China’s GDP growth held steady at 7 percent in the first half this year, but another figure — the number of newly registered enterprises — is even more impressive. New registrations jumped 19.4 percent from a year ago to 2.1 million in H1.

“Creative, entrepreneurial spirit has been stoked by business reform,” said Yu Fachang with the state administration for industry and commerce (SAIC).

By the end of June, there were around 74.2 million businesses in China, including agricultural concerns and individual traders, up 7 percent from the end of 2014, SAIC data showed.

The number of new firms registered in the service sector accounted for 80.3 percent of the increase, or 1.6 million during the first six months, 22.6 percent more than in the same period last year.

This, Yu said, reflects a better economic structure, with the service sector playing its prescribed “bigger role” in growth and job creation. The sector has become the biggest driver of growth, expanding 8.4 percent in H1 and accounting for 49.5 percent of GDP.

Wang Bao’an, head of the National Bureau of Statistics, believes that a new wave of mass entrepreneurship and innovation is in the offing, given the huge success of many startups. The drive for mass entrepreneurship and innovation along with repeated cuts to red tape are feeding creativity and market vitality, Wang told the People’s Daily last week.

CONTINUOUS REVOLUTION

Premier Li Keqiang has repeatedly promised that the government will revolutionize itself to promote mass entrepreneurship and innovation.

In streamlining business registration since 2014, China has removed minimum capital requirements, replaced annual company inspections with a reporting system and loosened site requirements for businesses. Last month, the government announced that those wishing to start their own business would only need to apply to one office for the three essential business certificates, rather than the current regime of visits to three different offices. Business licenses, tax registration certificates and organization code certificates will all now be issued by the SAIC.

Guo Xin already feels the better business environment. “Entrepreneurship and innovation are state policies and there are many new government business incubators to assist new firms or projects,” he said, adding that other changes included easier financing, clearer procedures for starting a business, a much larger number of new entrepreneurs and an easier get-out processes for those who fail.

“Encouraging mass entrepreneurship and innovation has activated hundreds of thousands of cells in the market, which helped macroeconomic stabilization,” Premier Li told a conference earlier this month.

THE FOURTH WAVE

Economist Gu Shengzu believes that lowering the threshold for starting businesses, removing restrictions and the rise of the Internet economy may have created a “perfect storm” of entrepreneurship in China.

“Entrepreneurship and innovation are twins. To the Chinese economy, they mean not only a better today, but a better tomorrow and the day after tomorrow,” Gu told Xinhua.

The innovative power of the Chinese people is an important engine for stable growth and a smooth transition to the new normal, he said, calling this “the fourth wave” of mass entrepreneurship in nearly 40 years.

The first wave began in 1978 when reform and opening-up began, with farmers setting up township enterprises and urban dwellers starting small businesses. The second wave swept China after 1992, with about 100,000 public servants resigning from their “jobs for life” to go into business for themselves. The third came when China joined the World Trade Organization in 2001.

The past three waves gave rise to numerous top Chinese entrepreneurs who rose from nobodies to tycoons, including Alibaba founder Jack Ma, Tencent’s Pony Ma and smartphone manufacturer Xiaomi’s CEO Lei Jun.

Gu said the difference between the first three waves and this fourth wave is that the government has actively worked to bring about the arrival of the fourth through aggressive policies.

Wang Bao’an, the statistics chief, wants future reform to focus on four areas: price controls, market entry, R&D and invigorating State-owned firms. He maintains that only more reforms will guarantee future growth. “The policy goals of stabilizing growth, restructuring the economy and achieving innovation-driven growth can be reached only through more reform… The key is to leave the market to allocate resources,” he said. Enditem

Indepth, Opinion

Addicted to Iphone

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By Xuefei Chen Axelsson

I am addicted to iphone. I feel sad if I could not touch my phone. I feel lost if I do not touch my phone for two hours. And if it is with me, I will touch it every five minutes.

On the contrary my husband get alergic when he sees me touch the phone. He couldn’t help reminding me that I should not touch the phone in front of him. When I am with him, I should not touch the phone. And even we are listening to lectures, he will remind me that it is time to shut the phone and listen.

And maybe he touched my Achilles heel, I was more sensitive to his reminding. I became irritated and even very angry because it is as if he disclosed some secret of me. I felt horrible and shriek at him. So he turned himself and went away.

Can we survive without the phone? Can we stop thinking of someone from far away? Can we stop longing for something surprising which might never be?

There was a saying in Chinese, can we die for iphone? No we cannot, but we can become mad. And that is true. I became mad, irritated and unfocused. It is as if I wanted to have a drug.

What should I do?  Tell me, let me know and write to me emails to give me some advice.

chenxuefei7@hotmail.com

chenxuefei@greenpost.se

In fact, I have another question to discuss too. Can serious journalism survive long in the current society?

Should I change and change for the society or should I stay as who I am? How can I survive in this new world?

write to me about your opinion at  chenxuefei@greenpost.se

Business, China, Indepth, News, World News

AIIB agreement signed, China-led bank takes key step forward

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BEIJING, June 29 (Xinhua) — A China-initiated multilateral bank that has dominated media headlines for months took a key step forward on Monday, with the signing of an agreement that outlines the framework and management structure for the institution.

Representatives of the 57 prospective founding countries of the Asian Infrastructure Investment Bank (AIIB) gathered in Beijing for the signing ceremony in the Great Hall of the People. Australia was the first country to sign the document.

The 60-article agreement specified each member’s share as well as the governance structure and policy-making mechanism of the bank, which is designed to finance infrastructure in Asia.

Seventy-five percent of the bank’s share is distributed among Asian and Oceanian countries while the remaining 25 percent is assigned to countries outside the region. As the bank expands its membership, countries outside of the region can expand their stake, but the portion cannot exceed 30 percent. Each member will be allocated a share of the quota based on the size of their economy.

China, India and Russia are the three largest shareholders, taking a 30.34 percent, 8.52 percent, 6.66 percent stake, respectively. Their voting shares are calculated at 26.06 percent, 7.5 percent and 5.92 percent.

China’s stake and voting share in the initial stage are a “natural outcome” of current rules, and may be diluted as more members join, China’s Vice Finance Minister Shi Yaobin said in an interview with Xinhua.

“China is not deliberately seeking a veto power,” Shi stressed.

Being the largest shareholder does not mean China will have veto power over major issues. Instead, China will closely watch and balance other members’ interests, said Tang Min, with Counselors’ Office of the State Council, who previously worked for the Asian Development Bank (ADB).

Speaking at Monday’s ceremony, Finance Minister Lou Jiwei said the new bank will uphold high standards and follow international rules in its operation, policies and management to ensure efficiency and transparency.

The bank, headquartered in Beijing, will possibly set up regional offices in other countries. It will be led by a president with a five-year term that can be extended once.

The articles do not say who will be the president, but said the president will be chosen from Asian member countries using an “open, transparent and excellent” selection process.

Jin Liqun, former vice finance minister of China, is secretary-general of the interim multilateral secretariat for establishing the AIIB.

After signing the agreement, representatives from prospective founding countries will return home with the document for legal adoption.

The AIIB was proposed by President Xi Jinping in October 2013. A year later, 21 Asian nations, including China, India, Malaysia, Pakistan and Singapore, signed an agreement to establish the bank.

After the new bank garnered support from countries like Britain and Germany, much focus has been trained on whether the U.S. and Japan, the world’s largest and third largest economies, will join.

While stating that the U.S. will not join the AIIB at present, U.S. President Barack Obama said the country looked forward to collaborating with the new development bank “just like we do with the Asia Development Bank and with the World Bank”in April.

Despite outside worries that a new investment bank will challenge the established order of multilateral lenders, the IMF, World Bank and other leading global lenders have welcomed collaboration with the new bank to fill Asia’s infrastructure gap.

Statistics from the ADB show that between 2010 and 2020, around 8 trillion U.S. dollars in investment will be needed in the Asia-Pacific region to improve infrastructure.

“We view the AIIB as an important new partner that shares a common goal: ending extreme poverty. With strong environment, labor and procurement standards, the AIIB will join us and other development banks in addressing the huge infrastructure needs that are critical to ending poverty, reducing inequalities, and boosting shared prosperity,” World Bank Group President Jim Yong Kim said in a statement after the signing ceremony.

Chinese officials have reiterated that rather than being a competitor, the new bank will complement the current international economic order and enable China to take more global responsibility.

The bank will start operation at the end of the year under two preconditions: At least 10 prospective members sign the agreement and the initial subscribed capital is no less than 50 percent of the authorized capital.

“We are confident of working with related parties to accelerate legal procedures and push for the official set up of the AIIB before the year end,” Lou said.

 

TIMELINE

October 2013, Chinese President Xi Jinping proposed the bank.

October 2014, 21 Asian nations, including China, India, Malaysia, Pakistan and Singapore signed an agreement to establish the bank.

March 12, 2015, Britain applied to join the AIIB as a prospective founding member, the first major western country to do so. France, Italy and Germany quickly followed suit.

March 31, 2015, China announced that 57 countries joined or applied to join the AIIB as prospective founding members before the deadline.

Until May, five rounds of talks were held and consensus was reached on all key elements, such as the bank’s purpose, membership, capital subscription, voting powers and decision-making structures.

June 29, 2015, delegates of the 57 prospective founding countries of the AIIB gathered in Beijing for the signing ceremony of an agreement to lay the legal framework and management structure for the bank. Enditem

Source Xinhua

Editor  Xuefei Chen Axelsson

 

Business, China, Energy, Environment, Green-tech, Indepth, News, Opinion

Roundup: China’s methanol car maker invests Iceland’s leading new energy producer

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REYKJAVIK, July 3 (Greenpost) — China’s Geely Holding Group, known as the world’s leading methanol vehicle manufacturer, inked a deal on Friday to make an investment of 45.5 million U.S. dollars in three years to Iceland’s Carbon Recycling International (CRI), known as the world leader in power to methanol technology.

Addressing the agreement signing ceremony, Li Shufu, founder and chairman of Geely Holding Group, said, “it is no doubt that methanol will be widely used as its advantages compared with gasoline fuel will be more and more prominent. I believe the cooperation with CRI will greatly promote Geely’s development in clean energy for vehicles.”

CRI produces renewable methanol, marketed under the Vulcanol brand, from carbon dioxide, hydrogen and electricity for energy storage, fuel applications and efficiency enhancement.

Methanol is a clean burning, high octane fuel that can be blended with gasoline for automobiles and used in the production of biodiesel or fuel ethers and reduces carbon emissions by more than 90 percent compared to fossil fuels.

“The investment of Geely to CRI will enable carbon recycling expand into China as well as into Europe. It will accelerate the deployment of our technology in China as well as in Europe. It will facilitate the development of methanol fuel cars,” said K-C Tran, chief executive officer of CRI.

Geely became the first auto manufacturer in China to begin conducting research and development into methanol vehicle solutions in 2005, and has since acquired dozens of patents.

It’s Englon SC7 sedan was the first methanol-fuelled car to receive approval from China’s ministry of industry and information technology.

Scientific studies indicate that methanol-fuelled cars generate as much as 80 percent fewer fine particulate matter (PM2.5) emissions than traditional gasoline-powered equivalent and cost an average of 40 to 50 percent less to fuel.

“In this sense, Geely group is a natural investment partner for CRI. With the deepening of this partnership, we will explore the possibility of promoting methanol vehicles that will meet local standards here in Iceland and other European countries,” Li added.

Describing Geely’s cooperation with CRI as an important practice to realize their commitment to the global sustainable development, Li said, “Geely is unique in researching and manufacturing methanol vehicles around the world, and so is CRI in converting carbon dioxide into methanol. The cooperation between these two companies will promote the development of the clean energy and the carbon cycle economy.” Enditem

 

Source Xinhua

Editor  Xuefei Chen Axelsson

 

Business, China, Indepth, Opinion, World News

Xinhua Insight: China adopts new law on national security

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Xinhua Insight: China adopts new law on national security

BEIJING, July 1 (Greenpost) — China’s top legislature on Wednesday adopted a new national security law highlighting cyber security and demanding the establishment of a coordinated, efficient crisis management system.

Of the 155 lawmakers present at a bimonthly session of the National People’s Congress (NPC) Standing Committee, 154 voted for the legislation. One abstained.

The new law, which will be signed into force by President Xi Jinping later Wednesday, covers a wide spectrum of areas including defense, finance, science and technology, culture and religion.

Outer space activities and assets, as well as those at ocean depths and in polar regions, were also brought under the national security umbrella.

A national security review and regulatory system and relevant mechanisms would be set up to censor items that have or may have an impact on national security, including foreign investment, particular materials and key technologies, network and information technology products and services, projects involving national security, it said.

Security is a top issue in China. A National Security Commission headed by Xi was established in 2013. An overall national security outlook put forward by Xi was also incorporated in the new law.

Speaking to reporters at a press conference, Zheng Shuna with the Legislative Affairs Commission of the NPC Standing Committee said the law was crucial in the face of “ever-growing security challenges”.

“We are under dual pressures […] Externally speaking, the country must defend its sovereignty, security and development interests, and internally speaking, it must also maintain political security and social stability,” Zheng said.

Thus, overarching legislation is needed to guide responses to national security threats and risks, she said.

Ma Huaide, vice president of China University of Political Science and Law, also said the law could provide a sound framework for future legislation on national security.

The first national security law took effect in 1993 and primarily regulated the work of national security agencies, whose major duty is counterespionage. It was renamed the Counterespionage Law in November.

The new law, meanwhile, said national security means that “the country’s state power, sovereignty, unity, and territorial integrity; its people’s wellbeing; its sustainable economic and social development; and other major interests are comparatively in a state of being in no danger and free of any threat from both within and without, and that the aforementioned state can be constantly guaranteed.”

Zheng rejected the notion that the definition was “too broad”.

“The definition does not cover broader areas compared with other countries,” she said.

“Any government will stand firm and ensure that there is no room for dispute, compromise or interference when it comes to protecting their core interests,” she said. “China is no exception.”

When asked to comment on the inclusion of activities and assets in space, deep sea and in polar regions in the new law, Zheng pointed to similar legislation in the United States, Japan, Russia and Europe.

China’s explorations and development in outer space, the international sea bed and polar regions have contributed to better understanding and utilization of resources, and was “conducive to the common interests of mankind,” she said, adding that China had the right to protect its activities, assets and personnel in these “new frontiers”.

One key element of the new law is a clause on cyberspace sovereignty. China will make Internet and information technology, infrastructure,information systems and data in key sectors “secure and controllable”, it read.

The country will strengthen its capability to protect cyber and information security, and enhance Internet and IT research, development and application.

Zheng said cyberspace sovereignty was the embodiment and extension of national sovereignty, adding that the Internet is an important aspect of the nation’s infrastructure.

“Internet space within the People’s Republic of China is subject to the country’s sovereignty,” she said.

China is willing to cooperate with other countries in safeguarding cyber security, building a peaceful, secure, open and cooperative cyberspace, and establishing a multilateral, democratic and transparent international Internet management system, Zheng said.

The new law also vowed that an Internet and information security system would be established to ensure cyberspace security, enhance innovation, speed up development of “strategic” technology and beef up intellectual property protection and application.

A coordinated, efficient crisis management system under a centralized leadership will be set up, it said, adding that national security crises-related information must be published in a timely manner.

Chinese citizens are obliged to report anything that undermines national security, and protect national secrets in line with the Constitution and laws, it read. Enditem

 

 

 

 

Indepth, Opinion

Commentary: Cooperation in production capacity to benefit China, Europe

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Commentary: Cooperation in production capacity to benefit China, Europe

BEIJING, July 1 (Xinhua) — International cooperation in production capacity offers huge opportunities for participating in a country’s economy. China and Europe, at different stages of development and with their respective strengths and demands, have a lot to share in this regard.

The world economy is undergoing a profound readjustment, and expansive monetary policies such as the quantitative easing (QE) measures applied in certain parts of the world offer no effective way out of sluggish growth.

Many developing countries including China find themselves in the process of industrialization and urbanization, while the rich nations are confronted with the challenge of re-industrialization.

“It is the right time to push for international cooperation in production capacity,” said Chinese Premier Li Keqiang while addressing a China-EU business summit in Brussels on Monday.

China has hoped to match its advantages in production capacity with demands in infrastructure updates in the rest of the world.

The European Union last week reached a deal to create a 315-billion-euro (345-billion-U.S. dollar) fund to upgrade infrastructure, stimulate the EU’s sluggish economies and ignite job growth.

China has a full-fledged construction material production capacity and relevant made-in-China equipment is widely adaptable, which make China a qualified candidate to be part of this ambitious plan.

Europe, meanwhile, boasts the most advanced and valuable technologies urgently needed by China to update its equipment and manufacturing capacities.

China encourages its best enterprises to participate in infrastructure construction projects such as the Trans-European Transport Networks, China-Europe Land-Sea Express Line and New Euro-Asian Continental Bridge.

European enterprises are also encouraged to join the “Silk Road Economic Belt and the 21st Century Maritime Silk Road” initiatives proposed by Chinese President Xi Jinping in 2013 with the aim to revive the ancient trade route between Asia and Europe.

Cooperation between China and Europe would also facilitate their expansion into the third-party market and lead to better performance both at home and abroad.

China will have to buy some of Europe’s advanced equipment while giving full play to its manufacturing and assembly capacities in its cooperative projects with other developing nations and in the regions of Central and Eastern Europe.

China-Europe cooperation involving third-party markets is destined to be an all-win situation, as excessive production capacity in China will be used to galvanize developing countries’ real economies while pressing for industry updates back home in China.

Europe is in the position to provide China with the elements it needs to grow, and in turn be rewarded with China’s strengths to realize its re-industrialization.

Financial cooperation is also indispensable. China has announced plans to expand its purchase of bonds issued by the European Investment Bank (EIB) and improve the Renminbi Qualified Foreign Institutional Investor (RQFII) system.

In addition, China encouraged bigger roles of other investment and financing arrangements in the revitalization of the European economy, including the China-initiated Asian Infrastructure Investment Bank (AIIB).

Under the “Belt and Road” initiative, a Silk Road Fund has been set up by China to improve infrastructure connectivity between Asia and Europe.

The fund, according to Chinese Premier Li, will be used for cooperating with Europe in hi-tech development, infrastructure construction and financial services.

To promote their cooperation, China and Europe also need to further liberalize trade and investment and properly handle trade frictions.

All these measures would ensure a continued leap forward in their bilateral trade. It’s highly feasible that China-Europe bilateral trade will exceed one trillion U.S. dollars by 2020, as Premier Li said he hoped it would during his ongoing European tour. Enditem

 

Business, China, Chinese circle, Energy, Green-tech, Indepth, News, World News

China, France prioritize partnership in industry, energy, third-party markets

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China, France prioritize partnership in industry, energy, third-party markets

PARIS, June 30 (Greenpost) — Chinese Premier Li Keqiang on Tuesday agreed here with his French counterpart Manuel Valls on expanding cooperation in industry, energy and third party markets.

Li, who is on a four-day official visit to France, said China is willing to advance practical cooperation and cement mutual trust with France.

Li suggested that the two sides should deepen industrial cooperation in fields including aviation and space, high-speed railway, steel, nuclear, oil and hydro power while increasing added value and jointly exploring third-party markets.

The Chinese premier also noted China and France should step up their cooperation in such areas as agriculture, food, health, digital economy, ocean and polar region development as well as energy efficiency.

Meanwhile, Li called for more favorable conditions to facilitate trade and investment so as to push for a dynamic balance in bilateral trade. “China backs domestic enterprises to invest in France and welcomes French businesses to expand Chinese market with their leading technology.”

Li said the two countries should deepen financial cooperation to provide support for exploring third party markets and enhance exchanges and cooperation in supervising their banking sectors.

France is a core member of the European Union and a partner of special importance for China within the organization, Li noted. “A healthy growth of China-France ties will be exemplary for China-Europe relations.”

He urged France to continue to play an active role in this regard so as to inject new vigor into China-Europe relations.

For his part, Valls said the two countries enjoy fruitful practical cooperation and a broad prospect.

He expressed his hope that France and China could strengthen their economic dialogue and deepen their cooperation in traditional areas including nuclear energy, aviation and space, agriculture and food production while speeding up interaction in such new areas as trilateral cooperation and eco-city building.

Valls called for more two-way investment and exchanges in sectors of culture and tourism.

The French side, he said, appreciated China’s actions in tackling climate change and is grateful for its efforts in working with France to prepare for the 2015 Paris climate change conference.

Li, who arrived here from Belgium after meeting with Belgian leaders and attending the 17th China-EU leaders’ meeting, is now on an official visit to France.

During his stay, he will also pay a visit to the headquarters of the Organization of Economic Cooperation and Development. Enditem

Source Xinhua

Editor Xuefei Chen Axelsson

Business, Indepth, News, World News

China, Africa to strengthen industrial cooperation

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China, Africa to strengthen industrial cooperation

ADDIS ABABA, June 30 (Greenpost) — Officials from China, Africa, and the World Bank (WB) on Tuesday pledged efforts to strengthen industrial cooperation between China and Africa to boost the continent’s economic development at a two-day investment forum held in Addis Ababa, the capital of Ethiopia.

Chinese Deputy Minister of Finance Liu Jianhua said as Chinese businesses are investing abroad and African countries are attracting foreign capital, technology, and development experience, there is huge room for cooperation.

She said China is willing to help Africa build infrastructure network, achieve industrialization by scaling up financial, technological, and human resources support to Africa.

Liu also said China will increase its cooperation with multi- lateral institutions like the WB in its engagement with Africa. She revealed that China is planning to set up a 50-million-U.S.- dollar trust fund with the WB to support infrastructure development in developing regions including Africa.

According to official statistics, China has been Africa’s largest trading partner for six consecutive years, with trade in 2014 reaching 222 billion U.S. dollars. Chinese invested a record high of 4 billion U.S. dollars in Africa last year, up 14 percent from a year earlier. At least 2,500 big and medium Chinese companies have registered to be operating in Africa, across a broad variety of sectors.

A WB report shows that Chinese investment in Africa is increasingly shifting towards the manufacturing sector as the Asian nation diversifies out of primary sectors such as agriculture and mining. Manufacturing is key to Africa’s future development, the report notes.

In his opening remarks, Prime Minister Hailemariam Desalegn of Ethiopia noted that his government sees the forum embodying three important themes, including Africa’s commitment to economic transformation, strong partnership between Africa and China, and the power of industrialization to deliver development results.

The Premier said China-Africa partnership, which has mutually beneficial results across Africa, has expanded rapidly and taken new momentum.

“As China-Africa trade cooperation moves into its next phase, there will be significant scope for diversification of our economies and exports, particularly into agriculture and manufacturing,” he said. “Chinese investment can be instrumental in addressing structural and logistical constraints that impact the competitiveness of African exports.”

Makthar Diop, WB Vice President for Africa, highlighted China’s experience of dedication, long-term planning, and pragmatism as three major lessons for Africa to learn in order to industrialize. He said Africa’s economy has been growing averagely 5 percent over the past decade and proved itself resilient during the 2008-2009 global economic crisis. However, the negative impacts on the economy brought by recent months’ drop of commodity prices signifies the need for Africa to diversify its economy, Diop said.

One of the key issues discussed at the forum was the role industrial parks and special economic zones play in the process of industrialization.

Since 2007, the Chinese government has been supporting six Chinese company-initiated industrial zones in Africa, located in Egypt, Zambia, Nigeria, Ethiopia, and Mauritius. Economists including WB former chief economist Justin Lin highlighted the success of this innovation especially the Eastern Industrial Park in Ethiopia for facilitating the relocation of China’s labor- intensive light manufacturing.

He said Africa, with 1.1 billion population and low labor costs, is an ideal place to relocate the light manufacturing sector of China as the trend of global value chain moves. Lin urged the governments of China and African countries to seize this opportunity that can help both China and Africa move a step up the global value chain.

Source Xinhua

Editor Xuefei Chen Axelsson

Business, China, Indepth, News, Opinion, World News

Volvo Cars: children are not small versions of adults

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Children are not small versions of adults and need special restraints

Gothenburg, June 30(Greenpost)– Lotta Jacobsson, child  safety specialist in Volvo Cars stressed that children are not small version of adults and needs special restraints.

“The differences in anatomy between children and adults are considered in Volvo Cars’ child safety development – of inbuilt features as well as accessories. Children are not small versions of adults, which is why children need special restraints when travelling in cars,” said Jacobsson in a presentation in Gothenburg’s Volvo Design center.

She said a child’s neck is under development and not as strong as an adult’s neck. Also the head is proportionally bigger than that of an adult. Children therefore need special restraints, facing the rear for as long as possible until at least three-four years of age. When travelling facing the rear the crash forces are spread over the back and head, which reduces the load on the neck in frontal impacts.

” A child’s head weighs a lot more in proportion to the body, and the neck is weak. That is why we strongly believe that children should travel in rearward facing child restraints until they are three-four years old”, says Lotta Jakobsson, Child Safety Specialist at Volvo Cars.

 Rearward facing child restraints are designed to support the neck and help spread the forces over a larger area in frontal impacts. Frontal impacts are the most frequent and usually the most severe impact situation.
– In a frontal impact a rearward facing child’s whole body is supported, which minimises relative movements between the head and torso, says Lotta Jakobsson.

Since more than 35 years, Volvo Cars is doing extensive research based on real life accidents. These studies show beyond doubt that the safest way for small children to travel in cars is facing the rear.

 Physical evidence why children should travel facing the rear

The head of a newborn baby makes up half the total body weight, where an adult’s head weighs only about six percent of the total. This oversized head – in combination with not fully developed neck vertebrae, muscles and ligaments – makes the baby’s neck a weak point.

Forward facing in a frontal impact, the body is restrained by the safety belt while the head moves forward and puts load on the neck. Depending on crash severity and size of the child, this load can be injurious.

– In one severe frontal impact in central Europe two girls were sitting forward facing in the rear seat. The five-year-old sustained a broken leg and spent two weeks in hospital. Her little sister, just ten months old, died from neck injuries. This is a clear example that it is much too early for a ten month old child to travel forward facing, says Lotta Jakobsson.

When the child has outgrown its rearward facing seat

Rearward facing is the safest way for children to travel in cars until they have outgrown the seat and have reached an age of three-four years. Then the neck has become stronger and the child can be turned to face forward, using the standard safety belt in combination with a belt-positioning booster cushion. The booster cushion guides the lap belt across the pelvis, as low as possible towards the thighs and not over the soft belly. The torso belt runs diagonally across the chest. Pull the safety belt tight, as close to the body as possible. It does not affect the safety if the torso belt rests on the child’s neck, but if the safety belt is tucked under the arm or behind the back, the child is not as protected in an accident.

 Volvo Cars’ policy is that children should use a booster cushion until they are 140 centimetres tall and ten years old. Booster cushions come in different models and sizes, with or without a backrest. Some cars can be equipped with an integrated booster cushion.

– An integrated booster cushion is always available and can not be accidentally left behind, says Lotta Jakobsson. It makes it easier to position the safety belt correctly and blends in with the car interior, which can make older children more interested in using a booster. It is important to fit the child restraint according to the manufacturer’s instructions. Most importantly, children must never be placed in the passenger seat if the airbag is active.

 Myths and truths about travelling facing the rear

There are a number of myths that can stop parents from choosing the safer rearward facing child restraint for their children. Lotta Jakobsson at Volvo Cars Safety Centre responds to a few of them:

 Myth: Children do not want to travel rearwards.

Truth: Small children are usually as happy facing any direction in the car.

Advice: If the child restraint is fitted in the back seat, place a mirror so that the child can see you. This will help the child feel safe and you can check on it easily with a glance in the interior mirror.

 Myth: The child restraint will not fit.

Truth: All child restraints are not suitable for all cars.

Advice: Read up on child restraints to see which one would meet your needs. Also get a staff member to teach you how to fit it properly before purchase.

 Myth: There are no rearward facing child restraints available.

Truth: It can still be difficult to find rearward facing child restraints on some markets. In the Nordic countries they are readily available, and more countries join in the recommendation that small children should travel facing the rear.

Advice: Check with your national road safety organisation. They should be able to give you further information or refer you to someone who can.

How children of different ages should travel in cars

 A newborn baby should use an infant seat. Do not let it sit upright for too long, take frequent breaks and pick up the baby for a while or let it rest lying flat while the car is parked.

 An infant or toddler should be fastened in a rearward facing infant seat or a larger rearward facing child restraint until the child has outgrown the larger seat and is three-four years old. The neck is weak and needs all the support it can get in the event of an accident. It does not matter if the child has to bend its legs or touches the back rest with its feet. Take breaks often to let the child stretch and play.

 An older child who has outgrown the rearward facing seat but is shorter than 140 centimetres and has not reached the age of ten, should use a booster cushion. The booster gives the child an increased height and directs the safety belt over the stronger parts of the body during a crash. The lap belt should be placed tightly across the pelvis, as low as possible towards the thighs and not over the soft tissue of the abdomen. The torso belt should run across the chest and also be pulled tight. It does not matter if the belt touches the neck. Never place the torso belt under the arm or behind the back.

Do’s & Don’ts for children in cars – six simple rules that can save lives

Do

  • Always make sure the child is properly restrained – during short trips as well.
  • Choose a child restraint that is suitable for your child and car model.
  • Remove bulky clothes so that the safety belt is tight and the child does not get too hot.

Don’t

  • Never drive with an unrestrained child in the car.
  • Never place a child in the passenger seat with the airbag active.
  • Never fasten a child shorter than 140 centimetres with just the standard safety belt. It must be used in combination with a booster cushion and only by children who have outgrown their child seats.

Children in car crashes

– A heavy head and weak neck structure make small children extremely vulnerable in frontal impacts when facing forward.

– Head, abdomen, extremities, chest and spine injuries are the most common to children.

– Prevention is better than treatment. Use a child restraint that is recommended for your child’s age and use it properly.

– A rearward facing child seat provides firm support behind the child’s head and back.

– Older children should use a booster cushion to allow proper positioning of the safety belt.

Important

  • Never fit a child restraint in the passenger seat with an active airbag.
  • Remove bulky clothes so that the safety belt can be pulled tight as close to the body as possible.
  • Remove or unzip warm clothing if necessary to prevent overheating and subsequent dehydration.