Former Bank of Israel head Stanley Fisher is said to be the leading candidate to replace Janet Yellen as Vice Chairman of the Fed when she is elevated to the top job. Fisher was a World Bank official and a Citbank executive before taking the
The United Kingdom…A country which once had an empire that never set. The brains, work ethic and culture of this island nation enlightened the world from the 17th century until World War I when they started a hundred year plunge into the abyss in starting
For a large telecom company in China it is impossible to not be involved in to surveillance state despite the protestations of Huawei, likewise, its now well known this applies to U.S. tech companies as well. Caijing “If Huawei gets in the middle of U.S-China
Perry Capital’s former Asia chief has achieved the largest hedge fund launch of the year in the region, netting more than US$1 billion for his second fund.Hong Kong-based Asia Research & Capital Management’s existing investors—who number a mere 15 to 20—pledged the full US$1.1 billion
Japan has responded to China’s Nov. 23 announcement of its air defense indification zone (ADIZ) over the East China Sea by holding a television conference to discuss the possibility of dealing with China on three fronts — Taiwan, the Miyako waterway and the disputed Diaoyutai
China is forecast to be Asia’s largest retail economy with sales of $1.7 billion for 2013, according to a report by Cushman & Wakefield, a global real estate services firm. “Retail growth in China has remained vigorous while signs of moderation have surfaced as the
Sha ZuKang is correct of course….but many nations have gone to war over much more silly matters. WTC It is not worth it for China to go to war with Japan over “those two tiny rocks” in the East China Sea, said Sha Zukang, former
More evidence of the rise of the RMB. I can add to this story by telling you that major Fortune 500′s have also converted and started paying suppliers in RMB if they are based in China. This is a new phenomena as everyone was previously
Global demand for gold fell sharply last quartet, but Russia is still accumulating the precious metal. Russia’s central bank added another 20.6 tons to its gold reserves in the first three quarters of the year, and, with 1,237 tons, it has now crossed the 1,204
How many more years can people in the West expect to turn out poorly educated, lazy teenagers hooked on sugar and video games and still expect to compete in the global economy? The answer is they already cannot compete. The USD as the world’s reserve
Housing prices in major Chinese cities continue sizzling, with year
-on-year growths in four of the country’s largest cities exceeding
20 percent in October. Shanghai led the rally as newly-built home
prices soared 21.4 percent in October compared with the same period
last year, following by Beijing, Guangzhou and Shenzhen, the National
Bureau of Statistics said Monday on its website.
Home prices in Beijing rose by 21.2 percent year-on-year while that
of Guangzhou and Shenzhen jumped by 20.7 percent and 20.6 percent,
respectively. Of the 70 cities monitored, 69 have seen home prices rise
from a year ago while Wenzhou in east China’s Zhejiang Province, for
the sixth consecutive month, become the only city to see declining
The pace of growth, however, is slowing down on a monthly basis, as
the NBS data showed average prices of newly-built houses in October
inched up 0.7 percent from a month earlier, 0.2 percentages lower
The slower monthly rise is due to tougher regulations and increasing
supplies in October, a traditional strong season for the housing
market, said Liu Jianwei, a senior statistician with the NBS.
Low base data partially explained the strong year-on-year rally last
month registered, Liu added, citing newly-built houses dropped by
1.1 percent last October compared with a year ago.
$1 trillion in loans and infrastructure projects vs drone
bases. Who will will hearts and minds in Africa? China or
Want China Times
The Chinese government and state-run banks will offer loans of
up to US$1 trillion to Africa until 2025 as the continent emerges
as China’s newest top destination for investment, according to an
analyst with the state-owned Export-Import Bank of China.
At a recent conference in Hong Kong on investments in Africa, Zhao
Changhui said his bank would provide between 70% and 80% of the
US$1 trillion in loans to Africa. “For many enterprises in China,
Africa is poised to become China’s top overseas destination for
commercial activities and investments over the next two decades,
” Zhao stated. “With US$3.5 trillion in foreign reserves, China
should not only buy US debt but should inject its funds into other
overseas investments,” Zhao said.
The analyst said his bank is seeking cooperation with Africa’s
infrastructure projects, including transnational highways, railways
and airports. He estimated work on a railway network linking various
states in Africa would cost US$500 billion.
Jeff Gable, head of the unit of non-equity research in Africa for
Barclays Africa Group, hinted at an area that investors might be
interested in examining, saying there is a huge need for the
electrification of the railway in Africa. The infrastructure is far
from complete in Africa, he remarked.
Another area that might draw funding from the Chinese government is
the agriculture sector, according to Zhao. With fertile lands on the
African continent, Zhao said he believed cooperation between China
and Africa on agriculture may help alleviate starvation in the
continent over the next 10 to 15 years. This view was echoed by Gable,
who pointed out that Africa has the potential to grow into a leading
global exporter of grains in the next 20 years, with output likely
to climb from US$280 billion to US$880 billion during the period.
According to media reports, China Machinery Engineering signed a deal
with the government of Equatorial Guinea in October to develop electric
grids in the central African state.
Under the agreement, inked on Oct. 14, the Chinese company will build
six new grids and expand existing grids in Equatorial Guinea for
US$127 million, with construction expected to be completed in 21 months,
according to the reports.
SINGAPORE (Reuters) – China, set to pass India this year as the
world’s top gold consumer, has imported nearly a fifth more bullion
than data from its traditional conduit HongKong shows as it brings
in the metal via other routes. Gold shipped from Hong Kong to the
mainland, used as a proxy for Chinese demand as bullion imports are
a state secret, nearly tripled to 855 tones in the year to September.
But a surge in China’s gold purchases as prices slumped by a quarter
this year has also seen at least 133 tonnes shipped directly, according
to Reuters calculations based on data from Global Trade Information
Services (GTIS).That figure could be even higher as it does not include
central bank purchases.
One shocking difference between the U.S. and the rest of the world
is in the cost of telecom services. Americans are paying 5 times for
telecom services compared to people in Japan, Korea, or China.
In China, you purchase a cell phone , no subsidizes or trick financing.
There are very small set-up charges. You then pay $10-$15 per month
for unlimited voice, data, and text. You only pay for data that you use
unlike in the U.S. where you pay for data you use and for the “right” to
use the network.
In America, you sign a contract that supposedly subsidizes the phone price
,however, upon your first bill you are charged made-up set-up charges wich
fully recover the costs of the phone for the telecom companies. Meanwhile,
instead of paying $10-$15 per month…you are milked by the telcom companies
and the American captured regulation system to the tune of $70-$80/a month
for phone services which in East Asia costs $10-$15/a month.
More padding for the “Exceptional” American GDP.
It would appear that in the United States a deal has been done between the
Telecom companies and the Government. As long as the telecom companies continue
to violate your civil rights and send all of your conversations to the NSA..
they will be allowed to treat you like a milk cow.
Welcome to the land of the unfree.
It’s not too late for America to regain pre-eminance but
the clock is ticking. What’s worse..like a dug addict that
doesn’t know it has a problem the U.S. has been living off
printed money and welfare both corporate and personal they
no longer even realize they have a problem.
There is no intellectual honesty in American anymore.
The country must collapse before it can reboot and resent.
We can only hope it happens quickly… as Nietszhe said…
“Only the weak fear chaos”
Want China Times
The 19th century may have belonged to England and the 20 century
to the United States, but the 21st century belongs to China,
says American investor Jim Rogers.
Rogers, the billionaire co-founder of the privately owned hedge
fund Quantum, made the comments on Nov. 16 at an economic forum
in Nanjing, the capital of east China’s Jiangsu province, according
to a report from the state-owned China News Service.
During his speech, Rogers said he has strong confidence in China’s
future development based on his personal experiences over the years.
The 71-year-old said he has toured the world twice, the first time
in 1990 when he visited more than 50 countries in nearly two years,
and again in 1999 when he visited 116 countries over three years.
He said he was certain that the 21st century would belong to Asia
— and in particular, China — the first time he visited Nanjing in
1984, when China was undergoing reforms and opening up.
Rogers added that he has two young daughters, both of whom can
speak Mandarin well, and that one day his lifestyle and his US
dollars will follow him to China.
Speaking just days after the conclusion of the pivotal third plenary
session of the 18th CPC Central Committee, Rogers said he is optimistic
about the potential of the Chinese yuan on the international currency
market, predicting that it will replace the US dollar as the global
reserve currency in the next 10 to 20 years.
As for the mainland stock market, Rogers said he has purchased some,
but not a lot of Chinese stocks, though he believes China will become
his biggest investment target if it continues its opening up and becomes
the world’s largest financial state. He revealed that he has not sold
any of the Chinese stock he purchased during visits to the country in
1999, 2005 and 2008.
Repeating remarks he made earlier at a forum in Guangzhou, Rogers said
he feels China’s environmental sector holds a lot of potential as the
government will increase expenditure in reducing pollution by 25% over
the next five years. He also saw a positive outlook for the agricultural,
rail transport and pharmaceutical industries, adding that investment
opportunities will follow the focus of government strategies and policies.
Rogers also said that he will consider buying more gold if prices fall
below US$1000 per ounce.
China’s Tianhe-2, a supercomputer capable of operating as fast
as 33.86 petaflops per second (Pflop/s), remains the world’s
most powerful system, according to a biannual Top500 list of
supercomputers released Monday.
Tianhe-2, developed by China’s National University of Defense
Technology, put China back at the top of the list in June.
It is almost twice as fast as the next computer on the list,
Titan of the US Department of Energy, which has a performance
of 17.59 Pflop/s.
“The Tianhe-2 is a very powerful computing system,” Jack Dongarra,
professor of the University of Tennessee and Top500 editor, told
Xinhua. “It has almost two times the performance of the number 2
system, Titan. I wouldn’t be surprised if it was in the number
1 position for another year.”
Except for its computing chips, Tianhe-2 uses technologies that
have almost all been developed and built in China, including
the interconnect system, operating system, front-end processors
“The major challenge is for China to develop computing chip
technology so it can build the whole computer with Chinese
parts. Application software also presents a great challenge,”
In November 2010, Tianhe-2′s predecessor, Tianhe-1A, took the
first spot but was overtaken by Japan’s K computer six months
later. Tianhe-1A is now No.12 on the list.
Sequoia, installed at the US Department of Energy’s Lawrence
Livermore National Laboratory, is again the No. 3 system with
a performance of 17.17 Pflop/s. Japan’s K computer is the
No. 4 system with 10.51 Pflop/s, followed by Mira, installed
at the department’s Argonne National Laboratory, which has a
performance of 8.59 Pflop/s.
The new entry in the Top10, Piz Daint, is at No. 6. The machine
installed at the Swiss National Supercomputing Center achieved
6.27 Pflop/s. It is now the most powerful system in Europe and
also the most energy efficient system in the Top10.
The total combined performance of all 500 systems on the list
is 250 Pflop/s, according to the list. Half of the total
performance is achieved by the top 17 systems on the list, with
the other half of the total performance spread among the
remaining 483 systems.
Overall, the United States is “clearly the leading consumer”
of the supercomputing systems with 265 entries on the list. As
a nation, China holds the No. 2 position with 63 entries, behind
the United States but ahead of Japan, Britain, France and
Germany, the list showed.
The Top500 list, released twice a year since June 1993, is
considered the authoritative ranking of the world’s supercomputers.
It is compiled on the basis of the machines’ performance according
to the Linpack benchmarks, a method introduced by Dongarra wherein
the time taken to carry out a complex linear equation ranks the
computers, applied by Dongarra and other experts from the United
States and Germany.
Paulson Holds Remaining Gold Horde
Nov 18 2013 | 12:56pm ET
After more than halving its gold investments in the second
quarter, Paulson & Co. stuck by the tarnished precious metal in
the third—and was rewarded.
The New York-based hedge fund owned more than 10 million shares
of the SPDR Gold Trust exchange-traded fund at the end of September,
it said in a regulatory filing. Gold prices are up 9% since the end
of the second quarter.
Still, the metal is on its way to its first annual loss in 13 years,
and a big one, at that. Gold futures are down 23% this year. Paulson’s
own PFR Gold Fund is down 62% through September.
This is one of the first cases of a Fortune 500 moving
their HQ out of China and not into China. GM moved their
HQ from Singapore to Shanghai back in about 2005.
It appears now, they are moving back.
What are the real reasons? My sources tell
me that pollution is making it harder and harder to get
people to take jobs in China. The business climate towards
foreign companies is also much less friendly than it was
even 3-4 years ago. White collar workers are having trouble
getting work visas and things to that affect.
This should be a boom for Singapore and other locations
in competition for regional or international headquarters as
up until this point, the traffic as all been one way which
was into China.
GM shifting international headquarters from China to Singapore
SINGAPORE — General Motors will move its international
operations headquarters to Singapore from Shanghai in the second
quarter of 2014. The shift comes after GM separated its China
operations from its international unit earlier this year, saying
that would make it easier to focus on China’s auto market.
TAIPEI — For the first time in the country’s history, China’s sea-
based nuclear deterrent nears initial operational capability (IOC),
according to a forthcoming report by a US congressional commission
China’s JL-2 submarine-launched ballistic missile could reach IOC
later this year, according to an early draft of the report by the
US-China Economic and Security Review Commission.
With a range of 4,000 nautical miles, the People’s Liberation Army
Navy (PLAN) will have its first credible sea-based nuclear deterrent
against the US mainland, mated with the Type 094 Jin-class nuclear
ballistic missile submarine (SSBN). China has deployed three Jin-
class SSBN and “probably will field two additional units by 2020.”
The report also states that China is pursuing two new classes of
nuclear submarines — the Type 095 guided-missile attack submarine
(SSGN) and the Type 096 SSBN. The Type 096 will likely “improve the
range, mobility, stealth, and lethality” of the PLAN’s nuclear
deterrent. US military facilities on Guam are coming into conventional
missile range for China, according to the report.
Though China does not have the ability to strike land targets with
sea-based cruise missiles, the report states China’s navy is developing
a land-attack cruise missile capability, most likely with the Type-095
SSGN and Luyang-III (Type 052D) guided-missile destroyer. This will
enhance China’s “flexibility for attacking land targets throughout the
Western Pacific, including US facilities in Guam.”
In June, according to the report, the People’s Liberation Army Air Force
accepted 15 new H-6K bomber aircraft. An improved variant of the H-6, the
K variant has extended range and can carry China’s new long-range, land-
attack cruise missile (LACM). “The bomber/LACM weapon system provides the
PLA Air Force with the ability to conduct conventional strikes against
regional targets throughout the Western Pacific,” including Guam.
The report states China is working on extending the range of the DF-21D
anti-ship ballistic missile. With its current range of 810 nautical miles,
it can already threaten US naval vessels throughout the Western Pacific.
At 1,600 nautical miles from China, Guam falls outside the DF-21D’s range.
Other developments cited in the report include progress on China’s first
aircraft carrier, the Liaoning, which conducted its first successful
carrier-based takeoff and landing with the J-15 Flying Shark fighter jet
in November 2012, certified its first group of aircraft carrier pilots
and landing signal officers during the ship’s first operational deployment
in June, and verified its flight-deck operations process in September.
“The PLAN will continue to conduct short deployments and shipboard
aviation training until 2015 to 2016, when China’s first J-15 regiment
is expected to become operational,” the report states. The document
discusses other impressive surface ship developments. In 2012, China
launched two new classes: the Luyang-III guided-missile destroyer and the
Jiangdao (Type 056) corvette. Construction resumed for the Luyang-II
(Type 052C) guided-missile destroyer and serial production continues for
the Jiangkai-II (Type 054A) guided-missile frigate. “Most of these units
will likely be operational by 2015,” according to the report.
Quoting Andrew Erickson and Gabe Collins, both renowned PLA experts, the
report states that “by 2015, China will likely be second globally in
numbers of large warships built and commissioned since the Cold War’s end
… by 2020, barring a US naval renaissance, it is possible that China will
become the world’s leading military shipbuilder in terms of numbers of
submarines, surface combatants and other naval surface vessels produced
One of the many disturbing conclusions in the report is the suggestion
that China’s military modernization is “on track to alter the security
balance in Asia over the next five to 10 years, challenging decades of US
And as the US military and diplomatic community work feverishly to improve
Sino-US ties, China is “rapidly expanding and diversifying its ability to
conduct conventional strikes against US and allied bases, ships, and aircraft
throughout the region.”
Cisco is target #1 across the world as being replaced due to
the Edward Snowden scandal and U.S. telecom companies working
with the NSA.
Cisco is now projecting a decline of 8% to 10% in the current period.
Orders for all emerging markets was down 21%. China was down 18%,
Russia down 30%.
Expect the U.S. government to now have to step in with some more
sweet government contracts to keep the company afloat.
Bill would outlaw U.S. dollar in Russia
MOSCOW — Predicting the imminent collapse of the U.S. dollar, a
Russian lawmaker submitted a bill to the country’s parliament on
Wednesday that would ban the use or possession of the American
Mikhail Degtyarev, the lawmaker who proposed the bill, compared
the dollar to a Ponzi scheme. He warned that the government would
have to bail out Russians holding the U.S. currency if it collapsed.
“If the U.S. national debt continues to grow, the collapse of the
dollar system will take place in 2017,” said Mr. Degtyarev, a member
of the nationalist Liberal Democrat Party who was a losing candidate
in Moscow’s recent mayoral election.
“The countries that will suffer the most will be those that have
failed to wean themselves off their dependence on the dollar in
time. In light of this, the fact that confidence in the dollar is
growing among Russian citizens is extremely dangerous.”
The bill would partially revive a Soviet-era ban on the dollar.
It would prohibit Russians from holding dollars in the country’s
banks, and banks also would be unable to carry out transactions
in the dollar.
However, Russians still would be able to buy or sell dollars while
abroad, as well as hold dollar accounts in foreign banks.The Central
Bank of the Russian Federation and the government would be exempt
from the law.
Russian financial experts were largely critical of the bill, which
they suggested was more about making political capital on the back
of rising anti-U.S. sentiments in Russia than protecting the country’s
“The American financial system, despite all its existing problems,
remains the most stable and low-risk in the world,” financial analyst
Andrei Shenk said. He also warned that the bill would harm Russia’s
investment climate. Another expert warned that the bill would strip
Russians of the ability to flee the country to seek greater political
and social freedoms.
“The right to the free exchange of currencies is a fundamental element
of capitalism,” said Moscow-based economics expert Igor Suzdaltsev.
“It allows citizens to leave the country when a dictatorship is imposed
by selling their property and exchanging their assets for the necessary
Read more: http://www.washingtontimes.com/news/2013/nov/13/bill-would-outlaw-us-dollar-russia/#ixzz2kYsh9IPx
The world must prepare for the 5 yuan era…then the 4 yuan era and
then the 3 yuan era..etc….
Want China Times
Taiwan Must Prepare for the ’5 yuan’ era
The renminbi has kept rising this year, at one point appreciating
enough to break the barrier of six yuan against the US dollar, but
now the currency will enter the “five yuan era,” during which a
comprehensive overhauling of the Chinese financial and economic
environment is expected.
As the overhaul could also impact the current cross-Taiwan Strait
business model, Taiwan should prepare for it as early as possible.
Over the past few months, there have been more instances of the
yuan’s appreciation against the greenback than those of devaluation.
The daily medium rate of the yuan was lingering at the six yuan
against the dollar mark recently.
However, as to when the yuan begins to rise in order to break the
six yuan barrier will be decided by the Chinese authorities, which
are expected to let the appreciation continue because as they seek
the currency’s globalization, Beijing also needs a strong yuan to
back the bid.
Nevertheless, China’s exports have been sluggish this year. In
September, exports recorded a year-on-year growth of minus 0.3%.
The weak export performance has restrained China from devising a
currency policy that is too rash.
In technical terms, exchanges on yuan have seen more bears than
bulls in the sector’s current account (which reflects the national
net income), while there were more bulls than bears in the capital
account (which reflects a net change in the ownership of national
A notable thing is that the capital account’s influence on the
yuan’s exchange rate is getting stronger, owing to Beijing’s active
measures aimed at raising the yuan’s international status. Against
that backdrop, a strong yuan policy is likely to be not pulled
down by the sluggishness of exports.
History has shown that the Chinese financial and economic environment
underwent an overall renovation every time the yuan appreciated to
break a barrier. Since the currency entered the “six yuan era” in April
2008, the international market has experienced a financial storm and
the European debts crisis. The influential events have prompted China
to adopt measures to turn the yuan into one of the world’s key currencies.
Over the past five and half years, the Chinese government also
implemented a policy of balancing foreign trade in yuan and has moved
actively towards signing currency exchange agreements with foreign
countries. Because of these measures, the yuan has assumed a key role
in the international monetary mechanism, triggering a yuan investment
trend in the international market.
Now that the yuan is expected to rise to the level of five yuan against
a US dollar, not only Chinese corporates, but individuals on the mainland
can also afford to engage in financial investments.
Anticipating the possible change in the Chinese financial and economic
environment, we suggest that Taiwanese financial institutions should
make efforts to develop products targeting Chinese private investors.
Meanwhile, the central bank should also map out relevant currency rate
policies as early as possible. Once the yuan rises to break the six
yuan mark, Taiwan will also have to decide whether the Taiwan dollar
will also seek to appreciate against the greenback.
China has for 2 years now been the world’s leader in
online shopping. This is a point I often mention to Americans
when they perceive China has a country that is somehow only
a export economy. Just because your own country has chased
manufacturers offshore and can no longer produce anything for
themselves does not mean that a viable consumer economy does not
exist in the country where your credit and manufactured goods
is coming from
Excerpt from Want China Times..
On Monday, the world saw that largest one-day shopping spree in
history. China’s e-commerce giant Alibaba has seen sales at its
two online platforms Tmall.com and Taobao.com rise more than 83%
from a year ago to 35 billion yuan (US$5.75 billion) as the
Chinese version of Cyber Monday ended midnight Monday.
Alibaba’s founder and chairman Jack Ma said if they wish to seek
a higher turnover, the number could reach 100 billion yuan
(US$16.4 billion). But he said he hoped the 100 billion mark
could be hit naturally, rather than intentionally, in the future.
He said he valued the things behind the numbers and hoped the
Nov. 11 could become a holiday for Chinese consumers. China has
for 2 years now been the world’s leader in online shopping.
The shopping spree falls on Nov. 11, or Singles’ Day, each year,
as young Chinese either celebrate or pray for an end to singlehood.
Thirteen hours into this year’s Singles’ Day, Alibaba had beaten its
own sales record of 19.1 billion yuan (US$3.13 billion) logged on
the same day last year at around 1:00 pm.
The 24-hour shopping spree got off to a strong start as sales at
Tmall and Taobao hit the 100 million yuan (US$16.4 million) mark
55 seconds after midnight and grew more than 67 times about an
hour later, statistics from Alibaba showed. Products ranging from
milk powder and diapers to cellphones
and clothes easily crossed the 100-million-yuan sales threshold.
Xiaomi, a company that sells Android smartphones at budget prices,
became the first company to hit the 100-million-threshold, as
nearly 220,000 smartphones were sold out three minutes after sales
opened at 12:30 am. More than 500,000 cans of milk powder and 66
million diapers were sold on Alibaba’s platforms as of 10:30 am.
Alibaba’s business-to-consumer platform Tmall.com launched its
first Singles’ Day online shopping campaign in 2009. Sales at Tmall
and the consumer-to-consumer Taobao.com on the day have since
ballooned from 52 million yuan (US$8.5 million) to 19.1 billion
(US$3.13 billion) last year.
More than 20,000 tenants on Alibaba’s online platforms promised
massive discounts, mostly half off, across 30,000 brands. In addition
to discounts, Alibaba has worked with a number of bricks-and-mortar
retailers to allow consumers to try out their products before making
a purchase on Tmall.
However, this new marketing strategy has caused a backlash from 19 home
furnishing retailers. Tenants at these stores have been warned against
completing transactions over Alibaba’s third-party payment service Alipay
amid fears of losing revenues to online sales. Journalists from more than
200 news outlets waited at the data broadcast hall of the company’s
headquarters in east Hangzhou early Monday morning to witness its sales
data on a huge electronic screen.
There was applause as revenues topped 10 billion yuan (US$1.6 billion)
at 6 am, when more than 100 million consumers had placed orders via the
online portal. On the same day last year, it took 13 hours for the
company’s sales to top the 10-billion yuan (US$1.64 billion) benchmark.
Alibaba’s data showed that 13.7 million buyers placed orders in the first
minute of the holiday sales.
China Looks at Opening Up More of State Firms to Private Sector
Reforming State-Owned Enterprises Has Been Thorny Because of
Their Size, Political Clout
BEIJING—China is considering letting private investors take larger
stakes in state-controlled companies, according to one official,
in what would likely be a modest move toward greater private-sector
involvement in areas of the economy dominated by Beijing.
“We welcome private capital to invest in the state-owned enterprises.
And there are many ways to do that,” said an official from the State-
owned Assets Supervision and Administration Commission, or Sasac,
in response to queries following a report by the state-run China
Daily newspaper on Monday that said Beijing will allow private
investors to hold up to 15% of state firms.
The person at Sasac—which overseas more than 100 of China’s largest
state enterprises—said an the size of stakes allowed hadn’t been
decided yet. The person also didn’t name sectors that may be affected.
The comments come as top leaders of the Chinese Communist Party
are meeting in Beijing to sketch out an economic roadmap for the
world’s No. 2 economy. China’s state-owned enterprises are widely
believed to be one topic leaders will consider at the gathering,
known as the Third Plenum. Potential changes believed to be under
discussion include lower barriers for private-sector players in
industries dominated by state-owned firms, or raising the share
of profits the companies direct back to the government.
In the months leading up to the party meeting, as Chinese leaders
have discussed potential reforms and drafted documents for
discussion, a number of possible policies have been leaked or
floated as trial balloons. A government think tank, the Development
Research Center, published a 200-page blueprint of liberal-leaning
reforms with recommendations ranging from interest-rate
liberalization to giving farmers the right to sell their land.
How to reform state enterprises has been a particularly thorny issue
because their size and revenues give them enormous political clout,
but as China’s growth slows some economists say it has become more
important to address what they see as the protected businesses’
inefficiencies. Sasac said last month that reform of state firms
could include giving private investors greater access to market
segments that have been dominated by the state.
What ends up winning endorsement by the party’s Central Committee
won’t be clear until Tuesday when the nearly 400 members end their
meeting and release a communiqué. That document, if past practice
holds, is likely to contain broad policy directions, with the
details to be filled in by senior officials in coming months.
Chinese state-owned companies dominate industries ranging from
energy to banking to telecommunications. Economists say their
dominance thwarts private-sector development and leads to
inefficiency and poor service.
Currently, private investors are able to buy shares in major state-
owned companies listed on a stock exchange, but that normally amounts
to small holdings distributed among many investors. Larger stakes
could potentially give private investors a seat at the table of some
of China’s key industries as the companies look for ways to increase
efficiencies or improve corporate governance. Such measures would also
give state enterprises a way to tap private capital.
Still, analysts said it isn’t likely that Beijing could give up
significant control. “Even for listed state-owned companies that are
more transparent in corporate governance, private investors don’t have
a say in them,” said Lu Zhengwei, economist at Industrial Bank.
“The key is not how much private investment is allowed,” Mr. Lu said.
“The key is to improve governance of these state companies.”
The proposal would also depend on details such as whether it would apply
to state-owned enterprises that have already listed shares on public
markets, he said. Many economists predict only modest changes, due to the
political connections of China’s state-owned enterprises. “We expect little
clarity on areas where the political economy is an obstacle, such as
leveling the playing field with SOEs,” said Louis Kuijs and Tiffany Qiu,
economists with RBS, in a note last week.
Guangzhou Evergrande have become the first Chinese team to
win the Asian Champions League. History was made after
Guangzhou Evergrande claimed the Asian Champions League
crown over FC Seoul this weekend.
The victory makes Guangzhou’s Italian coach Marcello Lippi the
first coach to win the Champions Leagues of Asia and Europe,
following his 1996 success with Juventus. Lippi is one of the
highest paid coaches in the word, reportedly on a salary over
$10 million annually.
Guangzhou’s victory means they will be Asia’s representative at
the FIFA Club World Cup in Morocco next month.
Brazilian striker Elkeson put the hosts ahead after 58 minutes,
after the home team had controlled much of the game, sending
the majority of the red-clad 58,000 capacity crowd at the
Tianhe Stadium into raptures in Guangzhou.
North Korea has developed a 1,700-man hacker team to strengthen
the country’s cyberwar capabilities, according to South Korea’s
National Intelligence Service.
During a recent congressional intelligence committee briefing,
the South Korean agency stated that the North had established a
cyber strike command under its General Reconnaissance Bureau and
is now operating seven hacking organizations with 1,700 hackers
in a special department under North Korea’s National Defence
Commission and the Workers’ Party of Korea, the country’s ruling
Based on their analysis, the Korea Computer Center, the North’s
leading government information technology research center, currently
has around 4,200 staffers working for various agencies under the
guise of software developers.
North Korean leader Kim Jong-un was quoted as saying that in
addition to nuclear weapons, the rogue state’s cyber warfare
capabilities are “a magic weapon” that empowers its army to launch
“ruthless strikes” on the South.
North Korea was also accused by the agency of “psychological warfare”
by producing anti-South Korean propaganda to operatives through spy
networks in China and Japan via its State Security Department and a
secretive agency under the Workers’ Party called Bureau 225.
The intelligence service also suggested that Pyongyang has been
manipulating online discourse by posting articles on blogs and
sending emails to South Korean journalists.
A note on this one. No doubt Shanghai may be the best location
in the world for expats and their career, most people I know are
now considering leaving due to the pollution. And for places like
Beijing, forget about it, they can’t even find expats to go work
Two recently released surveys have confirmed what many who live
here already know: China is among the best places in the world to
be an expat, and Shanghai is just the best.
In a survey by HSBC, China was ranked #1 overall among 37 countries as
the best place to be an expat, edging out Germany and Singapore for the
top spot. China also ranked #2 in terms of beneficial economics, and
#3 in terms of “expat experience” or general quality of life
(think chuanr vs smog).
Over 7,000 expats were questioned for the survey, the bank said. 71
respondents were in China; they praised the quality of education,
ease of making friends, and general safety. However, as the Wall
Street Journal points out, the survey does not specifically mention
pollution, a major issue in China for both locals and foreigners.
“While the survey doesn’t ask expats specifically about pollution
levels, the survey does cover a wide range of indicators of expat
quality of life that are relevant to expats across the globe,” an
HSBC spokesperson told the WSJ. “This year’s survey showed that
expats in China reported a range of benefits across all three
elements of expat life: economic, experiential and related to
Concerns about pollution were reflected in one metric: China
ranked 19th in terms of children’s health.
The Washington Post’s Max Fisher has produced this map showing
the “quality of life and employment opportunities for expatriates
” based on the HSBC survey:
By sending a People’s Liberation Army electronic reconnaissance
ship into Hawaiian waters, China is ready to project its
influence to what it perceives as a “third island chain” which
extends from the Aleutian Islands to Australia, what the Chinese
have interpreted to be the “strategic rear” of the US military in
the Asia-Pacific region, reports the Global Times, a tabloid
published under the auspices of the Communist Party mouthpiece
As professor James R Holmes wrote in his article written for the
Diplomat, an online current affairs magazine based in Tokyo, the
concept of a third island chain does not exist from the
perspective of Asia specialists in the United States. However,
the location of this island chain, positioned as it is only 2,400
miles from the coast of San Francisco symbolizes, from a Chinese
point of view at least, the possibility of expanding Chinese
maritime influence to the Eastern Pacific, according to Holmes.
Like the strategic location of Taiwan and Japan within the so-
called first island chain, centered on Taiwan, and the second,
stretching from Japan to Indonesia, China views Hawaii as the
center of the third island chain. As the headquarters of the US
Pacific Command, Hawaii from a Chinese perspective also serves
as the “strategic rear” for Washington to reinforce its allies
in the Western Pacific if a conflict with China were to take
place. The Global Times in typically bombastic style said that
it is time for China to demonstrate its capabilities to the
From the perspective of the Ta Kung Pao, a Hong-Kong based
newspaper funded by the Chinese Communist Party, the deployment
of the US carrier, USS George Washington to the Yellow Sea for
joint naval exercises with the Republic of Korea Navy and the
Japan Maritime Self-Defense Force is an act of provocation. For
this reason, the electronic reconnaissance ship had been deployed
to Hawaiian waters and the Mobile 5 naval exercise was launched
in an undisclosed location in the Western Pacific with the
participation of China’s three major fleets.
The displacement of Chinese electronic reconnaissance ships is
between 500 and 4,000 tonnes and they are equipped with a radio
receiver, a radar receiver, a signal analyzer and even electronic
jamming equipment. The appearance of the electronic reconnaissance
ship in Hawaiian waters was posited as proof that China is able
to conduct intelligence operations within the territorial waters
of the United States, according to the paper, purportedly showing
that the largest naval base in the Pacific is no longer safe from
a potential Chinese naval attack.
Buyers Eye Hong Kong Banks for China Links
Companies That Want to Enter China’s Banking Sector Look to
Hong Kong Lenders with Chinese Licenses
Chinese financial companies eager to break into banking in their
country may have better luck looking outside the mainland, as
the recent offer by brokerage owner Yue Xiu Enterprises
(Holdings) Ltd. for Hong Kong’s Chong Hing Bank Ltd.
Yuexiu said Oct. 25 it has made an offer for a 75% stake in
Chong Hing Bank for 11.64 billion Hong Kong dollars (US$1.50 billion),
in what could be the first sale of a Hong Kong bank since 2010.
The attraction, an official at Yue Xiu said, is less Chong Hing’s
exposure to Hong Kong, a city of eight million, than its Chinese
banking license, through which the family-owned bank has one branch
“While China’s economy has grown significantly over the past 10 years,
the Chinese government hasn’t issued new commercial banking licenses
since 2006,” said an official from Yue Xiu in an interview.