The ICA Institute is pleased to announce that GlobalAtlanta.com, Georgia's top international e-newspaper, has agreed to work closely with the ICA Institute in a number of areas designed to expand the reach of both organizations.

As an initial effort, the growing ICA Institute weekly newsletter summarizing Chindia business events with links to associated articles will be featured and linked-in on Global Atlanta's website as an additional service for GlobalAtlanta.com readers. In addition, GlobalAtlanta.com will serve as a media sponsor for the ICA Institute's Webinar series, publishing Flash announcements on upcoming webinars and reporting on the presentations when the content fits their editorial needs.

In turn, the ICA Institute will establish links to the GlobalAtlanta.com publication to introduce the e-publication to ICA Institute readers and promote the organization during its Webinar series and on CDs of the series offered for sale.

To learn more about GlobalAtlanta.com, visit: http://globalatlanta.com/

Chinese government agency pumps US$20 billion into China Development Bank (IHT, December 31)
China's sovereign wealth fund has made another large investment at home, injecting US$20 billion (EU14 billion) into a state agency that is preparing to become a commercial lender, the central bank said Monday. The move by the China Investment Corp., or CIC, reflects a strategy announced by officials of investing the bulk of its US$200 billion (EU136 billion) in assets in China. That followed initial speculation that the CIC might go on a buying spree abroad.

Hong Kong's foreign-currency reserves hit 152.7 billion USD (The People's Daily, January 7)
Hong Kong's official foreign-currency reserve assets rose to 152.7 billion U.S. dollars in December 2007, up 2.3 billion U.S. dollars from the previous month, revealed the Monetary Authority here Monday. Including unsettled forward contracts, Hong Kong's foreign-currency reserve assets also stood at 152.7 billion U.S. dollars, up 2.1 billion U.S. dollars from November 2007, according to the Monetary Authority's latest statistics.

Why Indian stock market is affected by global economy? (Economic Times, January 8)
Markets across the world are seeing a lot of short term volatility (frequent rise or fall in stock market) mainly driven by news and events in the global markets. For example, news/rumours related to economic recession in USA, soft/hard landing and estimation of losses due to sub-prime crisis in USA, speculation over interest rates cut by FED, rise in global commodities prices, fluctuation in global crude oil prices etc. These are some fundamental reasons why global markets, especially the Indian stock market behave in a volatile manner based on developments in global markets.

China to allow limited foreign investment in securities industry (IHT, December 31)
Beijing is easing a ban on new foreign investment in its securities industry while still trying to ensure Chinese control by limiting investors from abroad to holding a minority stake. A foreign investor may own no more than 20 percent of a Chinese securities firm, and total foreign ownership of any firm is limited to 25 percent, the China Securities Regulatory Commission said on its Web site.

China's consumers let the side down (Asia Times, January 8)
China's consumer spending, which already makes a lackluster contribution to the world's fastest-growing economy compared with investment and trade, may have hit a two-decade low as a share of gross domestic product (GDP) last year, despite anticipated growth in urban income higher than that of the aggregate economy, according to a Chinese government think-tank.

China's central bank chief reaffirms tight money policy for 2008 (IHT, December 30)
China's central bank will implement a tight monetary policy in 2008, using a range of tools to keep a check on liquidity, the central bank governor, Zhou Xiaochuan, reaffirmed. The People's Bank of China has waged a war on excess liquidity and inflation in 2007, raising interest rates six times and increasing the proportion of deposits that banks must hold in reserve 10 times, to a record level.

Analysis
Why the rise of Chindia will be beneficial to the world (The Times of India, Jan 8)
While the 20th century was driven by political ideology of advanced countries, the 21st century will be driven by markets of emerging nations. No matter what ideology one follows to uplift growth of emerging economies, whether Communism, foreign aid, or access to markets, it is not sustainable due to several reasons.

US, China struggle to keep it all smiles(Taipei Times, Dec17)
In three days of talks on economic issues last week, a half-dozen Cabinet members of the administration of US President George W. Bush and their aides sat in rows of tables facing their Chinese counterparts in an ornate conference room. The talk was polite, the atmosphere convivial and the pledges of cooperation profuse. But it was also obvious to the US side that relations with China were going through a difficult phase, with discord sometimes crowding out the areas of agreement. The Chinese frequently threatened retaliation over actions that displeased them, in the political and military spheres as well as the economic.

China's new vice commerce minister urges "long, strategic view" on China-US trade(Xinhua, Dec 11)
China's newly appointed Vice Minister of Commerce Chen Deming has urged China and the United States to take "a long and strategic view" on bilateral trade relations and abandon trade protectionism. Chen made the remarks ahead of the Third China-U.S. Strategic Economic Dialogue (SED), scheduled for Wednesday and Thursday. The vice minister said both countries should face up to challenges brought by globalization such as a widening rich-poor gap, the uneven profit distribution among industries and imbalances of regional development.

Indo-China talks to focus on strategic partnership (The Economic Times, Dec 18)
At the end of a busy calendar year of visits, India and China will round up the year with the third round of strategic dialogue. Foreign secretary Shiv Shankar Menon is expected to hold talks with his counterpart vice-foreign minister Wu Dawei in Beijing later this week. Mr Menon's visit is also a preparatory visit for Prime Minister Manmohan Singh's visit to the neighbour in the middle of January.

India ballistic missile defense capabilities & future threats(India Post, Dec 17)
India carried out a series of anti-ballistic missile tests re-cently starting with an exo-atmospheric anti-ballistic missile (ABM) system test on November 12. This was followed by an endo-atmospheric test of a Prithvi missile defense system on December 1 from Wheeler Island near Balasore in Orrisa. A high-tech instrument was utilized in the test launch which provided precise and accurate data regarding the performance of the interceptor missile.

U.S., China share nuke emergency plans(UPI, Dec 14)
The United States and China have held a meeting on nuclear emergency response cooperation. "U.S. and Chinese experts shared nuclear emergency response capabilities with multiple other countries during a Global Initiative to Combat Nuclear Terrorism Radiation Emergency Response Workshop," the U.S. National Nuclear Security Administration said in a statement Friday.

Tholons sees mega buyouts by Indian IT (Silicon India, January 7)
With the Indian IT looking to globalize its operations, the year 2008 is likely to see the industry going on an aggressive mergers & acquisitions spree outside the country. Releasing top ten trends in services globalization in 2008, Tholons, an investment and advisory firm, said, "This year will see the emergence of a new trend - India based services firms looking at large acquisitions overseas using financing from private equity firms, effectively shedding its traditionally conservative image."

India emerges as a new hub for industrial robots (Silicon India, January 3)
Though many developed countries are making robots that may look cool, act smart and excite kids with their intelligence, Indians are winning accolades for making robots that are efficient in doing all the hard work, reported The Economic Times. India is emerging as a hub for production of industrial robots. Many American, Korean and even Japanese firms are using them. But some companies are also developing consumer robots that can clean homes and keep an eye on intruders.

China Pins Big ($1.4B) Hopes on Nuclear Fusion(The Green Daily, Jan 8)
China has tossed down a $1.4 billion bet on the world energy roulette wheel. China's stake is 10% of a research project, the International Thermonuclear Experimental Reactor, trying to unlock the secret to nuclear fusion, a potentially boundless, clean and cheap form of energy. The United Staes is also a partner, as are the European Union, Japan, India, South Korea and Russia.

India, Predicting $150 Oil, Woos Chevron, Exxon(Bloomberg, Jan 8)
India wants global companies including Exxon Mobil Corp. and Chevron Corp. to explore for oil and gas in the South Asian nation on concern that crude prices may soar to $150 a barrel and curb record economic growth. ``We're trying our best to get the oil majors to bid,'' V.K. Sibal, director general of hydrocarbons, said in Mumbai today at an event offering 57 oil and gas areas for auction.

China not a threat to world energy(China Daily, Dec 27)
China doesn't pose a threat to world energy security because it has depended mainly on domestic resources to power its economic and social development. The government gave this assurance in its first white paper on energy, released by the State Council Information Office yesterday.

China moves to consolidate oil reserves(UPI, Jan 7)
China has set up a national oil reserve center, with the approval of the State Council, the National Development and Reform Commission announced in December. The center will control the country's strategic and domestic oil reserves, and is expected to have a major impact on the allocation of oil for economic development.

US energy bill won't undercut oil prices for years to come(International Herald Tribune, Jan 3)
The energy bill signed into law late last year, just weeks before oil first hit $100 a barrel Wednesday, will have little impact on U.S. oil or gasoline prices for years - if at all. Although two of the biggest components of the wide-ranging bill - a renewable fuels mandate and new vehicle efficiency standards - focus on boosting fuel supply and curbing gasoline demand, they are not likely to ease pressure on tight crude and gasoline markets.

Reliance Power to invest $28 billion in 13 projects(Hindustan Times, Jan 7)
Reliance Power Ltd, part of the Reliance Anil Dhirubhai Ambani Group (RADAG), will generate over 28,000 MW of electricity by building 13 projects in the next 6-7 years with an investment of $28 billion. Lalit Jalan, director, Reliance Power, told a news conference in Hyderabad on Monday that the Indian electricity sector offered huge opportunities as the demand for energy was expected to grow by eight per cent during the 11th plan period (2007-12) and by nine percent during 12th year plan period (2012-17).

Opinion
Oil economics rearrange world's clout(The Salt Lake Tribune, Jan 5) The surging price of oil, from just over $10 a barrel a decade ago to $100 Wednesday, is altering the wealth and influence of nations and industries around the world.These power shifts will only widen if prices keep climbing, as many analysts predict. Costly oil already is forcing sweeping changes in the airline and auto sectors. It is intensifying the politics of climate change and adding urgency to the search both for fresh sources of crude and for oil alternatives once deemed fringe.

Landslides, pollution, migration: China's Three Gorges Dam stirs concerns anew (IHT, December 29)
Wang Zhushu rarely sleeps at night. Instead, the 61-year-old retiree paces, listening to the drone of passing ships that shake the walls of her house on the banks of the Yangtze River. Wang's one-story, brick-and-concrete home rests, she says, on increasingly unsteady earth, weakened and waterlogged as rising waters turn the Yangtze into an ever-broadening reservoir behind China's mammoth Three Gorges Dam.

Chinese Government Determined to Solve the Problems of China's Pharmaceutical Industry (Reuters, January 6)
The global medicine industry maintains rapid growth. It has maintained fast growth since the middle of the 20th century. The total output value increased to USD 602 billion in 2005 from USD 21.8 billion in 1970; the annual growth rate amounted to 8.3%, more than double 3.5%, which is the growth rate of global DGP in the same period. With the further increase of R&D costs for new medicine, it is estimated that the development of companies involved in new medicines will slow down, to a rate far slower than the growth pace of generic drug companies, since the patent of a large number of important medicines will end. In addition, all governments are cutting the expense of hygiene. Moreover, due to the further increase of environment protection and cost pressure in developed regions, we see a trend towards raw material drug production transferring to China, India etc, bringing opportunities for raw material drug companies in China.

Water-starved China begins work on massive water diversion project (IHT, December 28)
China started digging Friday an ambitious water diversion project that will see vast amounts transported from the fertile south of the country to the arid north, state media reported. Work started on a tunnel underneath the Yellow River in the eastern province of Shandong as part of a planned 486 billion yuan (US$66 billion, EU45 billion) network of canals aimed to divert water from the southern Yangtze River, the official Xinhua News Agency said.

India, U.S. to set up Food and Drug Authority (The Hindu, Jan 8)
India and the United States will set up committees that will work together on setting up a Food and Drug Authority-like regulatory body in India, the health leaders of both the nations said on Monday. U.S. Secretary of Health Michael Leavitt said a team of officials would be formed to work with their Indian counterparts to provide technical support to establish quality standards on the basis of best available science.

Cotton on to success(Sify, Jan 8)
Cotton has turned out to be an incredibly good performer in an otherwise uninspiring spell by the country's agricultural sector. The crop's success can be measured from the fact that production in the last five years has increased by a whopping 80 per cent (from 170 lakh bales in 2002 to over 300 lakh bales in 2007). That makes India the world's second largest producer after China, relegating the US to third position. More heartening is the turnaround on the foreign trade front.

Organic farming gains momentum in India(Business Standard, Jan 3)
Organic agriculture movement is gaining in momentum in the country. The area under organic cultivation is likely to cross the 2 million hectare mark by 2012, according to National Centre for Organic Farming (NCOF), a body under the Union Ministry of Agriculture.This means a growth of nearly 4 times from the present 528,000 hectares, which includes both certified and in-conversion lands.

Analysis
New impetus to China-Africa agricultural cooperation(Macau Daily Times, Dec30)
Agricultural cooperation between China and Africa, which dates back to 40 years ago, has seen further development in 2007 with the impetus given by the China- Africa Cooperation Forum Beijing Summit held in November last year.

China's first jumbo aircraft company gets March deadline for take-off (The People's Daily, January 7)
China has set a March deadline to establish its first jumbo passenger aircraft company, as it moves to positions itself among countries technically capable of manufacturing large jets. Huang Qiang, secretary general of the Commission of Science, Technology and Industry for National Defense (CSTIND), told Xinhua
on Monday a director and a chief engineer of research would be appointed by then to make sure "the work goes as planned".

Audi starts car production in India (Silicon India, January 5)
German luxury carmaker Audi said Thursday it has started production of its A6 family saloon in India. Some 300 vehicles are expected to be assembled at the plant at Aurangabad in the western state of Maharashtra this year, with the number increasing to 2,000 by 2015, the company said.

New Indian visa centre in Beijing (The Hindu, January 8)
Less than a week before Prime Minister Manmohan Singh is scheduled to make his first official visit to China, the Indian Embassy in Beijing inaugurated a new Indian visa application centre on Monday. It will be run by a private company, VFS Global Services, a part of the Kuoni Travel Group's India branch. For the embassy the outsourcing of the receipt and delivery of visas to a private company was necessitated by the burgeoning demand for Indian visas in China. Speaking at the inauguration, the Indian Ambassador to China, Nirupama Rao, revealed that 51,473 visas were issued by the Beijing embassy in 2007. This was a sharp increase over the 36,150 visas issued the year earlier.

Chinese railways forecast to carry record 178.6 mln passengers during holiday (The People's Daily, January 7)
China's railways are expected to carry a record 178.6 million passengers in the upcoming 40-day annual peak season when millions are on the move for family-gathering during the Lunar New Year holidays. Chinese railways carried 156 million passengers during last year's travel peak. The Ministry of Railways (MOR) said passenger flow would again narrow down to regions around robust Beijing, Guangzhou and Shanghai prior to the Lunar New Year's Day, which fell on Feb. 7.

Canada mulls WTO protest over lack of tourism pact with China (Financial Post, January 7)
Canada is close to launching a formal complaint with the World Trade Organization at being shut out of the lucrative Chinese package-tour market. "We're at a stage now where we are probably the only major tourism market in the world which does not have such an agreement. We are getting close, in my opinion, to being treated discriminatorily under the rules of the World Trade Organization," International Trade Minister David Emerson said in an interview with CanWest News Service on Monday.

Publisher: Roxanne Russell
Editor of Academic Resources: Dr. S.V. Char
Co-Editor: Abhijit Agrawal
Co-Editor: RJ Paulsick