Wandering China

An East/West pulse of China's fourth rise from down under.

Asia accounts for 3rd of world output in five years: IMF [China Daily]

Asia accounts for 3rd of world output in five years: IMF
Source – China Daily, published June 16, 2010

CANBERRA – Asia’s economy, including Australia and New Zealand, will be about 50 percent larger in five years, accounting for more than a third of world output, Australian Associated Press (AAP) quoted IMF as saying on Wednesday.

The Finance & Development Magazine of the International Monetary Fund (IMF) for June released in Washington on Tuesday also said in 20 years’ time, Asian gross domestic product (GDP) will exceed that of the Group of Seven (G7) major industrial economies — the United States, Japan, Britain, France, Germany, Canada and Italy.

“The possibility that Asia could become the world’s largest economic region by 2030 is not idle speculation,” IMF’s director of Asia and Pacific Development Annop Singh said in his article Asia – Leading the Way.

“It seems very plausible, based on what Asia has already achieved in (two) decades.”

This included Asia’s emerging economies doubling their share of world trade and tripling their share of world gross domestic product (GDP).

China and India, Australia’s No 1 trading partner and its third export destination, respectively, have been leading the way.
But the “phenomenon” is by no means limited to these two countries, Singh said, adding that Asia’s economic importance is ” unmistakable and palpable”.

Asia has been making a stronger contribution to the global recovery than any other region and, in contrast to previous episodes, recovery in many Asian countries was being driven by two engines, exports and strong domestic demand.

This in part reflects policy stimulus, but also resilient private demand.

Read the rest of this entry »

Filed under: Australia, China Daily, Economics, Finance, India, Influence, International Relations, xinhua

[Singapore’s Eddie Kuo] He’s worried about putting cyberspace in a corner [Straits Times]

Singapore’s Professor Eddie Kuo is a principal instigator for the field of mass communication and new media in Singapore. He made some comments on the new media and China in this interview with the Straits Times.

“The rising nationalism among China’s netizens is scary. All it takes is 1 per cent of them to exert pressure on the government. You could see all the forces at work in the recent bagong (strike) among factory workers there. They were able to organise through SMSes. The factory had no Internet but cellphones can now play the role of the Net. China has to tackle this problem. Maybe Singapore too, if it were in such a situation.”

– – –

He’s worried about putting cyberspace in a corner
By Cheong Suk-Wai, Senior Writer
Source – Straits Times, published June 15, 2010

Professor Eddie Kuo, 69, is the founder of NTU's Wee Kim Wee School of Communication and Information as well as its School of Humanities and Social Sciences. -- ST PHOTO: ASHLEIGH SIM

SOCIOLOGIST Eddie Kuo was chuffed when he chanced upon a Celtic shield knot in the Oxford City Museum a while back.

Professor Kuo, 69, recalls: ‘It was very similar to a Chinese knot, and showed these cultures’ common threads.’

The married father of two likes using the Chinese knot as a metaphor for his view that all cultures are formed from a single, unending string in open weaves.

In his 37 years here, the Xiamen-born Singaporean has founded not one but two schools within Nanyang Technological University (NTU): namely the Wee Kim Wee School of Communication and Information and the School of Humanities and Social Sciences.

He also set up the mass communications programme at the National University of Singapore (NUS) in 1991.

He has enhanced his communications school’s standing by founding and editing the Asian Journal of Communication for the past 20 years. The school’s profile helped Singapore win the right to host the International Communication Association Conference, a first for South-east Asia, which will begin next week.

Prof Kuo is retiring shortly, so I asked him to look back on his busy life:

Read the rest of this entry »

Filed under: Communications, Influence, International Relations, Media, Nationalism, Singapore

Beijing boosts holdings of US Treasury debt [China Daily]

To a good measure, it is interesting how China and Japan are now the largest holders of US Treasury debt. Both have had serious military engagement against the US, and it stretches beyond to include clash of ideas, belief systems, and above all, civilizations.

– – –

Beijing boosts holdings of US Treasury debt
By Martin Crutsinger
Source – China Daily, published June 16, 2010

WASHINGTON – China has boosted its holdings of United States Treasury debt for the second straight month as total foreign holdings of US debt increased.

The development should help ease concerns that lagging foreign demand will force the US government to pay higher interest rates to finance its debt.

China’s holdings of US Treasury securities rose by $5 billion to $900.2 billion in April, the US Treasury Department said on Tuesday. Total foreign holdings rose by $72.8 billion to $3.96 trillion.

China is the largest foreign holder of Treasury securities. The monthly gains in March and April came after six consecutive months when China was either reducing its US holdings or keeping them constant. The stretch raised concerns that China might shift money away from Treasury securities.

The 1.9-percent rise in total holdings of US debt in April followed an even bigger 3.5-percent increase in March.

The sizable gains are being driven by fears that Greece and other European governments could default on their debt. On Monday, Moody’s Investors Service slashed Greece’s credit rating to junk status, the latest blow to the debt-ridden nation.

Fear of possible defaults has sparked a flight to safety, which has benefited US Treasury securities. Treasuries are considered the world’s safest investment – the US government has never defaulted on its debt.

The US Treasury reported that net purchases of long-term securities, covering US government debt and the debt of US companies, increased by $83 billion in April. It follows a record monthly gain of $140.5 billion in March.

Higher interest in US bonds has helped push interest rates lower, a welcome development for the US government, which faces the task of financing record federal budget deficits. The federal deficit hit an all-time high of $1.4 trillion last year. It is expected to remain above $1 trillion this year and in 2011 as well.

Japan, the No 2 foreign holder of US Treasury securities, also increased its holdings in April. It boosted them by $10.6 billion to $795.5 billion.

Associated Press

Filed under: China Daily, Chinese Model, Economics, Finance, Influence, International Relations, Nationalism, Politics, Trade, Yuan

Currency conflict [China Daily Opinion]

This opinion piece indicates a representative Chinese view that the yuan’s revaluation is a misplaced belief. To a large extent, I agree, an inflated yuan will serious damage global production and have serious mid-term consequences. With so many countries’ economies (Australia is a prime example) dependent on China’s hopefully enlightened and well-‘managed’ ascension, the China also needs to learn to work with the world to get the formula right.

– – –

Currency conflict
Source – China Daily, published June 16, 2010

Fresh pressure from US politicians to expedite the yuan’s revaluation only exposes their misplaced belief that an increase in the Chinese currency’s exchange rate is the panacea for all their domestic economic ills.

If these people look at hard trade figures, they will realize that they have been shooting themselves in the foot by politicizing the yuan revaluation issue.

On one hand, long-term trade figures compellingly prove that the exchange rate is not the decisive factor behind a country’s trade growth. Since July 2005, the Chinese currency has risen by about 20 percent against the US dollar. But this rise in the yuan’s value has neither improved the US trade deficit with China much nor stopped China from becoming the world’s biggest exporter last year.

For instance, with almost no change in the yuan’s value against the dollar, US exports to China in the first quarter of this year increased by about 50 percent year-on-year.

In the teeth of a recent 20 percent rise of the yuan against the euro, China’s exports to Europe in May jumped 34.4 percent over the same month last year.

For those who are quick to say that the European debt crisis may hurt Chinese exporters in coming months, the rise of the yuan against the dollar five years ago could be a useful guide.

Some US politicians may try to placate angry voters by playing up the myth of a revaluated yuan solving all their major economic problems, but hard trade figures have a different story to tell.

The US has to export more to cut its trade deficits and restore balanced growth. Blaming China’s exchange rate policy will not help raise US exporters’ competitiveness, instead it will poison the environment for them to export to one of their largest and fastest growing markets.

(China Daily 06/16/2010 page4)

Filed under: Beijing Consensus, China Daily, Chinese Model, Economics, Influence, International Relations, Politics

Chinese nationals flee Kyrgyzstan ‘war zone’ [China Daily]

A quick look at the photo below might prove a disconnect as these Chinese nationals really look nothing like the Han majority. China is as vast and wide as its peripheries, in this instance, these are probably natives from Xinjian Autonomous Region. Nevertheless with this article (underlying its dominant message), China also sends the message quite strongly here that all Chinese nationals are under their care, regardless of race.

– – –

Chinese nationals flee Kyrgyzstan ‘war zone’
By Cui Jia and Qin Jize
Source – China Daily, published June 16, 2010

Photo: China Daily

URUMQI – After six hours of anxious waiting and a few dozen cigarettes, 47-year-old Liu Yun felt a wave of relief as his 23-year-old daughter walked through the terminal at Urumqi International Airport and into his arms on Tuesday.

Liu’s daughter was among the first group of 111 Chinese citizens evacuated from the southern city of Osh in Kyrgyzstan, where ethnic violence has led to at least 171 people being killed in the past several days.

“I am so glad I am out of the war zone,” said Liu’s daughter, who did not want to be identified.

“Like everybody in Osh, I was so scared as the situation is out of control,” she said, adding she plans to continue her studies in Kyrgyzstan when the trouble dies down.

Wang Baoqiang, 36, who has run a building materials business in Osh for the last three years, was also on the flight.

“I was trapped in my house for days and was running out of food,” he said. “Many shops or businesses run by Chinese were torched by rioters. But financial losses are no longer important, we just wanted to come home alive.”

China dispatched two Boeing 737-700 aircraft owned by China Southern Airlines (each with passenger capacity of about 120) to Osh on Monday night from Urumqi, capital of the Xinjiang Uygur autonomous region, which borders Kyrgyzstan.

The first flight arrived in Urumqi at 4:25 am after a three-hour delay. The second, which had 84 Chinese nationals on board, landed an hour later.

Liu’s daughter said armored vehicles escorted the Chinese citizens to the airport. Read the rest of this entry »

Filed under: China Daily, Chinese overseas, International Relations

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June 2010

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