Tag: china

  • China confirms Li Keqiang as premier

    China confirms Li Keqiang as premier

    China’s leaders have named Li Keqiang premier, placing him at the helm of the world’s second-largest economy.

    Mr. Li, who already holds the number two spot in the Communist Party, takes over from Wen Jiabao.

    Mr. Li was elected for a five-year term but, like his predecessor, would be expected to spend a decade in office, BBC reports.

    On Thursday, Xi Jinping was confirmed by legislators as the new president, completing the transition of power from Hu Jintao.

    Li Keqiang’s widely-signalled elevation was confirmed by 3,000 legislators at the National People’s Congress, the annual parliament session, in Beijing. He received 2,940 votes to three, with six abstentions.

    As premier, he will oversee a large portfolio of domestic affairs, managing economic challenges, environmental woes and China’s urbanisation drive.

    The appointments seal the shift from one generation of leaders to the next. A raft of vice-premiers and state councillors will be named on Saturday, before the NPC closes on Sunday.

    Mr. Li, 57, who is seen as close to outgoing leader Hu Jintao, speaks fluent English and has a PhD in economics.

    He has called for a more streamlined government, eliminating some ministries while boosting the size of others.

    The son of a local official in Anhui province, he became China’s youngest provincial governor when he was tasked to run Henan.

  • Cost of war between China and Japan

    Global economists are keeping their eyes glued to the Asia-Pacific region, where a bitter feud is brewing between two of the world’s most powerful nations over a small collectivity of islands in the East China Sea.

    The Chinese government argues that a treaty signed during the first Sino-Japanese War (1894-95) conferred ownership of the islands to China while Japan has long disputed these claims, and today argues that the islands are integral to its national identity.

    The argument came to a head last September, when a boycott of Japanese products led Chinese demonstrators to target fellow citizens who owned Japanese cars. Three months later, the situation escalated when when Japanese jets confronted a Chinese plane flying over the islands; no shots were fired, but the act of antagonism has set a troubling precedent between the military forces of both nations.

    What is the economic implication  of  a war between China and Japan if the crisis persist? Click the link below for a perspective on the issue.

    http://www.onlinemba.com/blog/economic-war-between-china-japan

  • Ekweremadu makes case for ties between Nigeria, China

    Ekweremadu makes case for ties between Nigeria, China

    Deputy Senate President Ike Ekweremadu yesterday called for collaboration between the parliaments of Nigeria and China.

    He said that such has become imperative given the emerging primacy of parliamentary diplomacy in the world.

    In a statement by his Special Adviser (Media), Uche Anichukwu, Ekweremadu made the call when he received the Ambassador of the Peoples’ Republic of China to Nigeria, Mr.Deng Boqing in his residence.

    Ekweremadu noted that the establishment of a closer parliamentary relationship between the two nations was not only desirous given the leadership role they play in their respective continents, but also important in accelerating the pace of development of both countries.

    He said:“We are prepared to develop more areas of cooperation with you and one such area is parliamentary relationship between Nigeria and China; as representatives of the people, it is important that we develop some parliamentary relationship because parliamentary diplomacy is a new set of diplomacy that is working in the world today.

    “Nigeria and China, being big countries in Africa and Asia, respectively, it is important that we develop our parliamentary relationship so as to take full advantage of this new vista of international relations.”

    Ekweremadu was quoted to have noted China’s prominent role in world politics and applauded the excellent relationship the Asian nation has developed with Africa and Nigeria in particular.

  • China executes four killers of Mekong fishermen

    Four foreign men have been executed in China for the murder of 13 Chinese fishermen on the Mekong River in 2011, state media report.

    The men were put to death by lethal injection in Kunming, Yunnan province.

    CCTV News broadcast live footage of the men being taken from their cells to the execution site, though it did not show the moment of death.

    BBC says many social media users in China have reacted angrily, condemning the broadcast as insensitive.

    Among the prisoners was Naw Kham, a Burmese man thought to have been one of the most powerful warlords in the Golden Triangle of Thailand, Laos and Burma.

    The fishermen were found dead inside two Chinese cargo ships in October 2011 on the Thai side of the river.

    State media said Naw Kham and his subordinates had collaborated with Thai soldiers in launching an attack on the ships, the Hua Ping and Yu Xing.

    The other men were Hsang Kham from Thailand, Yi Lai, who is stateless, and Zha Xika from Laos, said the Xinhua news agency.

    Social media users in China spoke out against the men being paraded in front of cameras, in what some are saying was a throw-back to the execution rallies of China’s past.

    The group were arrested in Burma and brought to China in May last year, after Beijing said the attack had happened on board Chinese-flagged ships.

    In November, they were found guilty of intentional homicide, drug trafficking, kidnapping and hijacking.

    Two other members of the gang were also convicted – one received a death sentence with reprieve and the other eight years in prison.

  • Regus Survey: Nigerian exporters well positioned for profit

    Regus Survey: Nigerian exporters well positioned for profit

    Export- focused Nigerian and other West African companies with links to China and other BRIC nations are particularly well positioned to record better profits and revenues.

    This indication emerged from the latest research by Regus, the leading provider of flexible workplaces which will be celebrating its Lagos Mulliner Towers centre’s 7th anniversary at the end of the year.

    Brazil, Russia, India and China make up BRIC countries.

    The Chinese ambassador to Nigeria, Ambassador Deng Boqing described Nigeria’s economy as promising while highlighting Nigeria’s potentials for greatness as most populous country in Africa.

    He said: “Nigeria’s economy has been performing well in the past 11 months. The GDP grows at a rate of over 6 percent, the crude production stays at around 2.4million barrel per day and your foreign reserve increased to $45 billion.

    Regus’ second Global Survey report on export business, which canvassed opinion from more than 20 000 senior business managers in over 90 countries, shows that firms that trade internationally are more profitable than businesses that stick to their domestic markets.

     

    • 50% of global firms that export say they’ve increased profits over the last 12 months compared with 38% of companies that only trade domestically
    • 59% of companies that export said their revenues had grown compared with 37% of firms focused domestically

     

    • China is the most popular market with 48% of businesses exporting there, ahead of Europe (41%), North America (36%), India (31%) and South America (31%)

     

    • The most profitable areas for export are emerging markets and Europe

     

    The company’s report according to Joanne Bushell, VP Africa & Middle East not only spotlights the advantages of export orientation for West Africancompanies, it also highlights exporter concerns.

     

    “These include worries about property and paperwork; an issue raised by 78% of respondents and the challenge of building an image abroad, a concern for 35% of respondents while risk management is an issue for 40%.

     

    “Regus has the network, resources and expertise to help current and potential exporters with challenges such as this,” Bushell stated.

     

    She said  Regus office centres in locations worldwide are positioned in upmarket business areas and are equipped with the latest office and computer technology – bestowing substantial image benefits on client firms and ensuring market newcomers have the support necessary to make a strong impression.

     

    “Property concerns are obviously outsourced to the solution-providers at Regus as clients do not have to invest in bricks and mortar or sign lease agreements that lock them into sometimes onerous conditions.

     

    “This obviously mitigates many of the risks faced by a new entrant to a chosen export market.

     

    “In addition, Regus products like Virtual Office and Businessworld bestow great agility and enable clients to gradually build critical mass and rightsize their operations in specific markets,” Bushell said.

     

    Regus operates in Lagos and Abuja.  It  is also  represented in Ghana, Senegal and Ivory Coast. In a desirable export destination like China – which according to South African based Standard Bank, is Africa’s single biggest trading partner[2]– Regus has a presence in 52 centers in China. Worldwide, the business is represented in over 1500 locations, 600 cities and 99 countries.

     

    Over 24,000 business respondents from over 90 countries sourced from Regus’ global contacts database of over 1 million business-people worldwide which is highly representative of senior managers and owners in business across the globe were interviewed in September 2012 for the survey.

    Respondents were asked which they felt were the biggest challenges to productivity when working from the home. The survey was managed and administered by the independent organisation, MindMetre, www.mindmetre.com

     

    Regus is the world’s largest provider of flexible workplaces, with products and services ranging from fully equipped offices to professional meeting rooms, business lounges and the world’s largest network of video communication studios.

     

    Regus enables people to work their way, whether it’s from home, on the road or from an office. Customers such as Google, GlaxoSmithKline, and Nokia join hundreds of thousands of growing small and medium businesses that benefit from outsourcing their office and workplace needs to Regus, allowing them to focus on their core activities.

  • Millions welcome ‘Year of the Snake’

    Millions of people are celebrating Lunar New Year, also known as Chinese New Year, the most important annual holiday in much of Asia, BBC reports.

    The New Year began in China at midnight, with firework displays and family gatherings.

    It marked the opening of the year of the snake, taking over from the dragon.

    In China, an estimated 200 million people have travelled to be with their families in what is considered the biggest mass human migration on Earth.

    The holiday will continue throughout the week, with government offices and businesses shut down.

    The snake has a mixed reputation in China. It is associated with wisdom, beauty and intelligence but also pride and anger.

    Residents of Beijing braved freezing temperatures on Saturday night to let off fireworks, which are believed to ward off evil spirits.

    However, the displays in the capital were reportedly more muted than in previous years, starting later at night than usual and ending earlier on Sunday morning.

    The city authorities had asked people to set off fewer fireworks because of dangerous levels of air pollution and a high number of smoggy days during the past month.

     

  • China’s $1.7tr debt weighs on economy

    Chinese companies are spending more than ever to service debt after their borrowing almost tripled over five years, prompting strategists to warn of rising default risk and a threat to economic growth.

    Total short- and long-term borrowing by 3,895 publicly traded non-financial companies rose to almost $1.7 trillion in their latest filings, from $604 billion at the end of 2007, data compiled by Bloomberg show.

    Financing costs, including interest, on all forms of debt climbed to the highest level as a percentage of gross domestic product last year, according to Sanford C. Bernstein & Co.

    For China’s real economy to expand at eight per cent this year, growth in non-loan credit would have to accelerate to 33 per cent from 25 per cent in 2012 if the credit-to-GDP efficiency remains at last year’s level.

    For China’s real economy to expand at eight per cent this year, growth in non-loan credit would have to accelerate to 33 per cent from 25 per cent in 2012 if the credit-to-GDP efficiency remains at last year’s level.

    Bernstein says that means less cash for investment to fuel the world’s second-largest economy, while Royal Bank of Scotland Group Plc says the threat of defaults will hold back interest- rate liberalisation. The average 10-year yield for top-rated company bonds is near a 13-month high at 5.27 per cent, compared with the 2.6 per cent yield in a Bank of America Merrill Lynch global corporate index.

    “There’s just a lot more debt in China today than there was really ever in the past, relative to nominal GDP,” said Mike Werner, a Hong Kong-based analyst at Bernstein. “More and more of the country’s resources have to be put to just financing outstanding debt, and that itself is a headwind for economic growth.”

    While the nation exited a seven-quarter slowdown in October-December as the government eased monetary policy, incoming Premier Li Keqiang may need to confront the fading effects of government support, a likely pickup in inflation and rising risks from shadow banking. Price growth accelerated to a seven-month high in December, driving up benchmark bond yields. GDP grew 7.8 per cent in 2012, the slowest in 13 years.

    On stimulus lending, Chinese banks doled out 8.2 trillion yuan ($1.3 trillion) of new loans in 2012, 10 per cent up from a year earlier and the second-highest level on record, central bank data show. The government quota for new lending may be set at 9 trillion yuan this year, Caixin reported on January 22.

  • China to champion green light project

    China to champion green light project

    The Chinese government has assured that it would extend the green light project to the country next year.

    It was learnt that the green light campaign, which will ensure that every home is lit with an environment-friendly green bulb that will help reduce the effect of climate change, is already operational in China.

    Officials of the Chinese government gave the hint at the climate change conference (COP 18) held at the Qatar national conference centre in Doha.

    The conference with the theme Phasing out of incandescent lamp and energy saving lamps promotion held between November 26 and December 7.

    The participants from Lagos at the summit were the Chairman of Oshodi Local Government Area, Hon. Bolaji Ariyoh,; his counterpart in charge of Lagos Island LGA, Mayor Kamal Salau-Bashua and Hon. Shamsideen Olaleye, Chairman of Isolo LGA.

    Director, Division of International Cooperation, Department of Climate Change, National Development and Reform Commission, People’s Republic of China Huang Wenhang, said his country’s government attaches great importance to lighting electricity conservation and has been attempting to address the problem since 1996.

    Wenhang said that in the intervening period, green lightning projects are listed in the last three, “five-year plan”.

    “A major subsidy programme for efficient lamps was initiated in 2008 which is still on-going. Over this period, the Chinese government has worked with the international community and has implemented China Green Light I and II, and most recently the “phasing of incandescent lamps and energy saving lamps promotion”, she said.

    She said after years of unremitting efforts, China has carried out a great deal of effective practices in Green Light field which has been highly praised and unanimously approved by the international community, adding that it has made an important contribution to reducing global carbon emissions and mitigating Climate Change.

    The conference facilitator for Lagos State, Mr. Adesiji Benjamin Jordan, said the local governments will be signing a Memorandum of Understanding (MoU) with the National Centre for Climate Change Strategy and International Cooperation under the direct supervision of the Federal Government soon.

  • In defence of how China picks its leaders

    In defence of how China picks its leaders

    The coverage in the western media of leadership changes at the Chinese Communist party’s 18th congress has been almost uniformly negative. Critics say corruption pervades the upper echelons of the party, policy issues are not publicly discussed and the Chinese people are completely left out of the process.

    There is some truth to such criticisms but they miss the big picture. The Chinese political system has undergone a significant change over the past three decades and it comes close to the best formula for governing a large country: meritocracy at the top, democracy at the bottom, with room for experimentation in between.

    There is a good case for popular participation at local levels. People usually know what’s needed in their communities and they have a good sense of the competence and character of the leaders they choose. In fact, most Chinese participate in local-level elections.

    In a big country, however, one person, one vote is problematic. From a moral point of view, citizens should vote for the common good because their votes affect not just themselves but other people. Yet voters tend to vote with their pocketbooks. Many can’t even do that well, since they lack economic competence. One group of voters – the rich – has a better understanding of economics and finds it easy to skew the system in their favour.

    To remedy the problem the economist Bryan Caplan proposes tests of voter competence, but that’s a non-starter in democracies because nobody wants to give up the vote once they have it. Hence, it really is the end of history, but in the bad sense that no improvements are possible once the system of one person, one vote is in place.

    There is a deeper problem with democracy. It confers voting rights only to adults within national borders. But it’s not just voters who are affected by the policies of the government: non-voters such as future generations and people living outside the country are also affected. In Europe and the US, the public repeatedly votes for lower taxes and higher benefits, recklessly mortgaging the future of their countries. And let’s not mention global warming.

    So how leaders should be chosen at the central level? Ideally, the process should be meritocratic: the mechanism should be explicitly designed to choose leaders with superior competence and virtue. Over the past three decades or so, the CPC has gradually transformed itself from a revolutionary party to a meritocratic organisation.

    Today, universities are the main recruitment grounds for new members. Students need to score in the top percentile of national examinations to be admitted to an elite university that grooms future leaders. Then they compete fiercely to be admitted into the party. Only high-performing students who have undergone thorough character checks are admitted.

    Those who want to serve in government then usually need to pass government examinations, with thousands of applicants competing for a single spot. Once they are part of the political system, further evaluations are required to move up the chain of command. They must perform well at lower levels of government and pass character tests. Then there are more position-specific exams that test for specialised skills.

    The advantages of Chinese-style meritocracy are clear. Cadres are put through a gruelling process of talent selection and only those with an excellent performance record make it to the highest levels. Instead of wasting time and money campaigning for votes, leaders can seek to improve their knowledge and performance. China often sends its leaders to learn from best practices abroad.

    Yes, meritocracy can only work in the context of a one-party state. In a multi-party state, there is no assurance that performance at lower levels of government will be rewarded at higher levels, and there is no strong incentive to train cadres so that they have experience at higher levels because the key personnel can change with a government led by a different party. Hence, less talent goes to the bureaucracy, because the real power-holders are supposed to be chosen by the people.

    In practice, Chinese-style meritocracy is flawed. Most obviously, there is widespread corruption in the political system. Term and age limits help to “guard the guardians”, but more is needed to curb abuses of power, such as a more open and credible media, more transparency and an effective legal system, higher salaries for officials, and more independent anti-corruption agencies.

    When it comes to political systems, western opinion leaders are still stuck in a narrative of dichotomy: democracy versus authoritarianism. But the competition in the 21st century, as the scholar Zhang Weiwei writes, is between good and bad governance. The Chinese regime has developed the right formula for choosing political rulers that is consistent with China’s culture and history and suitable to modern circumstances. It should be improved on the basis of this formula, not western-style democracy.

    • The writers are a professor of political theory at TsinghuaUniversity and a Shanghai-based venture capitalist.

    – Financial Times

     

  • China and the emergence of Xi Jinping

    China and the emergence of Xi Jinping

    Whatever anyone may say, China’s single-party political structure has served the country well in quite a remarkable way. It has ensured stability, unity, and since 1978, enviable and measurable progress. The bitter memory of the turbulent years when the iconic leader, Mao Zedong, unleashed the disastrous Great Leap Forward (1958-1961), has faded. That experiment led to the death of an estimated 45 million people and the impoverishment and malnourishment of more than 200 million others. China only began to make steady recovery when Deng Xiaoping, who held the position of paramount leader between 1978 and 1992, enunciated and implemented a different developmental paradigm. Mr Deng, it will be recalled, was himself a victim of the Cultural Revolution that began in 1966 and lasted until Mao’s death in 1976.

    In the past three decades, the Chinese economy has grown at more than 10 percent, and that growth rate was sustained through the exemplary leaderships of Hu Yaobang, Zhao Ziyang, Jiang Semin, and Hu Jintao. China’s story since Mr Deng has been one of decades of stability and phenomenal growth. That stupendous growth has seen China emerge as the second-largest economy in the world, a feat that has made it an industrial society, of course with all the accompanying contradictions and challenges, some domestic, and others international.

    While China’s economic indicators continue to dazzle, what thrills observers more is the ease with which the country has managed its leadership succession for so long. Thus, after a very successful 10-year presidency of Hu Jintao, China is once again poised for a fresh 10 years of the 59-year-old Xi Jinping. He is expected to navigate the treacherous social, economic, political and international undercurrents the country’s rising influence and power will throw up. Having assumed the highest Communist Party of China (CPC) position of General Secretary of the Central Committee after last week’s convocation of the 18th National Congress, Mr Xi, who was vice president to Mr Hu, will in March 2013 when he formally assumes office inherit a slowing economy that is growing at about eight percent instead of the more than 11 percent they had been used to for more than a decade. Britain’s by comparison is projected to grow at one percent next year.

    According to the Daily Mail of London, China, since Mr Deng, “Consumes nearly half the world’s concrete every year, and the country now bristles with skyscrapers and high-speed railways. China’s defence spending has quadrupled in 10 years, it has cyber-warfare capabilities, anti-satellite missiles and is developing the Shenlong passenger spaceplane, capable of travelling at supersonic speeds on the edge of the Earth’s atmosphere. Incomes in the past decade have tripled and the number of Chinese with basic health care and pensions has reached 95per cent. The country boasts a million millionaires and several billionaires, while the middle class has expanded to 500 million people. In that decade, a segment of Chinese society equivalent to the entire population of America has bought a smartphone. It is only a matter of time before the country overtakes America as the world’s pre-eminent superpower.”

    But beyond its enviable economic and strategic profiles, China is doubtless a well-governed society. Its leaders have ruled with far more discipline and patriotism than Nigeria has ever enjoyed. Its foreign policy may lack what some describe as a moral core, but the country has nonetheless projected power and, to some extent, even ideology, quite admirably. By ensuring relatively smooth leadership succession since 1978, minus the hiccups in the 1980s that led to the ouster of Hu Yaobang, his eventual death, and the Tiananmen Square protests, China has assured stability that only monarchies seem capable of and many democracies dream of. The country has grown so rapidly in every measurable area that the West now sees it as the major rival in the near future, much more than Russia.

    Though it has not really tried to export its politico-economic ideology of ‘socialist market economy’, many African countries, especially Nigeria, could borrow a leaf from Mr Deng’s brilliance and originality by formulating unique hybrid of altruistic economic and political ideologies. China may not fit into our general understanding of popular or participatory democracy, however, the fact is that that country evidently works and has proved to be much more transforming than Nigerian leaders’ sloganeering. The Chinese model offers huge lessons for Nigerian leaders who may wish to study the history of China since Mao. For sure, they will appreciate anew the rigour that goes into conceptualising developmental paradigms that really work. In particular, by studying the symbiotic leadership of Deng Xiaoping and Hu Yaobang, Nigerian leaders may begin to recognise why critics berate their half-hearted attempts at making structural changes that do not go beyond tinkering with the tenure system and wastefully balkanising the country.