A weekly sampling of news, analysis and
opinion on economic issues of
India, China and the U.S.
Articles and
opinion pieces are from a variety of sources and
viewpoints and do not necessarily reflect
those of
ICA Institute. Access to some articles may
require
free registration to the site or may not be
cited to the
original
source.
Chinese/Lunar New Year Reception |
|
The China Business Alliance Committee of the
World Trade Center Atlanta is organizing on
January 31, 2008 a Chinese/Lunar New Year
networking and reception celebration event,
jointly with the Association of Chinese
Professionals-Atlanta (ACP), at the World
Trade Center Atlanta from 6-9pm EST.
Mr. Craig Lesser, Managing Director
International Public Affairs Group of
McKenna, Long & Aldridge LLP and former
Commissioner of the Georgia Department of
Economic Development, will address Georgia's
renewed efforts in furthering trade and
commerce with China. Ambassador Wenzhong Zhou
of the Embassy of the People's Republic of
China in Washington D.C. has also been
invited to speak.
The cost is $25 per person for members of the
World Trade Center and ACP organizations and
$35 for non-members. Corporate Sponsorship
opportunities available. RSVP is required by
January 28th to Lilia Postolachi,
404-813-6672 or [email protected], or
Crystal Hall, [email protected].
|
Chindia Rising |
|
Prof. Jagdish Sheth's new book Chindia
Rising: How China and India will Benefit your
Business has recently been published by
Tata McGraw-Hill, New Delhi.
Advance praise for Chindia Rising from
Azim Premji,
Chairman and Managing Director of Wipro, Ltd:
"Business Leaders in East and West will
surely read with interest Jagdish Sheth's
thought provoking assessment of how the rise
of China and India (Chindia) will prove to be
an enormous boom to the worldwide economy.
With his profound insight into global
business trends, Prof. Sheth shows how
Chindia's rise will not only stimulate the
mature economies of the West but will also
help birth economies in Asia, Africa and
Latin America."
Chindia Rising is available online at
Oxford
Book Store.
|
Economy | Finance | Trade |
|
China's
volatile markets reflect growing investor uncertainty
amid a booming economy
(IHT, January 28)
Chinese stock investors took a beating Monday as
the Shanghai Composite Index
sank 7.2 percent to its lowest close in nearly six
months. The benchmark's decline
came as regional markets plunged following
malaise on Wall Street at the end
of last week. But it also reflected jitters among
Chinese investors over how
their country will weather a global slowdown when it
is facing daunting economic
strains of its own.
Reserve
Bank of India Keeps Rates On Hold (Forbes,
January 29)
India’s central bank, the Reserve Bank of
India, on Tuesday left policy
rates unchanged in its quarterly review and reiterated
its economic growth forecast
of 8.5% annually. But inflation remains a concern.
“Liquidity management
will assume priority in the conduct of monetary
policy,” the bank remarked
in its statement. Inflation, based on the wholesale
price index, dropped to
3.8% as of Jan. 12, down from its peak of 6.4% at the
beginning of the financial
year. The bank’s target for the year is below
5%.
American
consumers prove a keystone for the global
economy (IHT, January 25)
Not long ago, many experts were convinced that a
vibrant world economy would
prevent an American recession. Even if the
beleaguered American consumer suddenly
turned thrifty, they reasoned, healthy spending on
other shores was supposed
to keep the expansion rolling. But now, with the
turmoil in financial markets
resonating around the world, those same experts
see signs that economic growth
abroad will probably not be strong enough to prevent
the United States from
slipping into a recession.
India's
economy strong enough to weather global crisis:
PM (The Economic Times,
January 25)
Prime Minister Manmohan Singh on Friday sought to
allay fears of a possible
US slowdown affecting Indian economy, saying that
the country's economic foundation
was strong enough to sustain 9-9.5 per cent
growth.
China's
companies start to feel pinch of looming US
slowdown, scramble to adapt
(IHT, January 24)
Oyimay Sofa Co. is already feeling the pain of a
looming U.S. economic slump.
Orders from skittish American retailers, who buy
nearly two-thirds of Oyimay's
output, are down 10 percent this month from the
same time last year, said general
manager Zhou Feng. He said the 1,000-employee
company in China's export-driven
southeast is scrambling to recover by switching to
more appealing, profitable
models but expects to see profits slashed this
year.
Economies
of China and India are not invulnerable (Taipei
Times, January 30)
It is so nice when a consensus forms among
economic commentators. There is going
to be a recession in US, the pack says, and probably
in Britain too, for they
have both sinned with their debt, deficits and soaring
house prices. But the
world as a whole won't suffer, as the great emerging
economies of Asia -- China
and India -- will carry on booming regardless. News
that China's output expanded
by an extraordinary 11.4 percent last year, its fastest
rate for 13 years, only
strengthened this view.
China
grows 11.2 percent in 4th quarter, says strong growth
likely to continue
(IHT, January 24)
China's economy expanded by a robust 11.2 percent
in the fourth quarter and
fast growth should continue, the government said
Thursday, in a possible positive
sign for the world economy amid worries about a
U.S. recession. A top official
and economists warned that China, far from any
danger of a slowdown, faces a
risk of overheating as it tries to cool a surge in
inflation, which the government
said Thursday was stuck at nearly decade-high
levels in December.
Sino-Indian trade:
It's helping only China (Rediff, January 28)
A purely statistical analysis can be misleading. The
current euphoria over the
expanding Sino-Indian economic relations, the
galloping bilateral trade and
the mushrooming analytical studies triggered off by
this euphoria are coming
in the way of an adequate focus on certain emerging
characteristics of these
relations, which have already started redounding
more to the benefit of China
than of India.
China
says December inflation 6.5 percent despite
government price controls (IHT,
January 24)
China's inflation rate eased to 6.5 percent in
December but was still near decade-high
levels despite government efforts to curb a surge in
politically sensitive food
costs, according to official data reported Thursday.
December's increase in
prices over the year-earlier period brought total
inflation for 2007 to 4.8
percent, well above the official target of 3 percent, the
National Bureau of
Statistics reported.
Columbia
seeks to strengthen trade relation with India
(Times of India, January 28)
To strengthen its trade relations with India, the
Columbian Association of Micro,
Small and Medium enterprises on Tuesday entered
into an agreement with Merchant
Chamber of Commerce. The Memorandum of
Understanding (MoU), signed in the presence
of the Colombian Ambassador Juan Alfredo Pinto
Saavedra and state Industry minister
Nirupam Sen, was aimed at increasing participation
in trade, investment, economic,
commercial and technological and boost friendly
relations between India and
Columbia.
|
Politics | Diplomacy | Security |
|
Olympics-China says will not submit to
political pressure(Reuters, Jan
29) China will never submit to taunting or
political pressure from groups or governments
wishing to use the Beijing Olympics to change
Chinese policy, a leading state-run newspaper
said on Tuesday. Activists around the globe
are seizing on this year's Olympics to
pressure Beijing on a range of issues, from
freedom of religion to Taiwan and Tibet.
Bolivia to Open Embassies in S.Africa, India
and China
(Prensa Latina, Jan 28)
As part of the so-called peoples' diplomacy,
Bolivia will open embassies in India, South
Africa and China, according to Foreign
Ministry sources.
Deputy Foreign Minister Hugo Fernandez said
the government has the necessary resources to
open these three embassies, whose ambassadors
will be appointed in due time.
A Bill for Bush(Frontline, Jan 29)
JAPAN is once again veering towards a
political orbit around the United States,
while beginning to recognise the emergence of
China as a major star on the international
stage. This impression is evident from the
manner in which Japanese Prime Minister Yasuo
Fukuda successfully piloted a pro-U.S. Bill
through the Diet, Parliament, in early
January after having paid a "feel-good" visit
to China in December.
Opinion
India's vision blurs over China(Asia
Times, Jan 29)
On concluding his recent visit to China,
Indian Prime Minister Manmohan Singh
remarked, "President Hu [Jintao] recognized
the problems in Pakistan and agreed that a
strong, stable, moderate Pakistan is in
India's interests and in the interests of
Asia," and it was "necessary for both India
and China to consult each other more
frequently". Earlier, a Chinese Foreign
Ministry spokesman, on the Hu-Manmohan talks,
noted, "The two leaders agreed to strengthen
their consultation and communication for the
peace and stability in the South Asia region
so as to make joint efforts for the stability
there." If one takes the long view of the
many geopolitical futures for South Asia, the
above comments reflect a strategic
opportunity for New Delhi to consider -
namely, the possibility for the two giant
neighbors to discuss and perhaps even
collaborate to stabilize a piece of strategic
real estate that if it spirals out of control
will influence both states adversely.
|
Technology | Communications |
|
Indian
agency to aggressively
market satellite launches (Silicon India, January
29)
The launch of Israeli satellite Tecsar by an Indian
rocket has boosted the morale
of Antrix Corporation - the commercial arm of the
Indian Space Research Organisation
(ISRO) - which now plans to market this service more
aggressively. "The
latest launch reinforces the confidence that
customers have in India's Polar
Satellite Launch Vehicle (PSLV)," K.R. Sridhara
Murthi, executive director
of the Rs.6.6-billion ($167 million) Antrix, told
IANS.
Study
says: China rivaling U.S. in tech competiveness
(TechJournal South, January
29)
A new study by Georgia Institute of Technology
researchers says China may soon
surpass the United States in technological
competitiveness worldwide. It predicts
that China will soon pass the United States in both
developing basic science
and technology and in transferring new technology to
products and services.
Infosy
s to increase patent
filings (Silicon India, January 29)
Infosys, an Indian IT Service Company expects that
its patent filings will increase
with its primary R&D) centre, Software
Engineering and Technology Labs (SET
Labs), expanding the research to new areas,
reported Business Standard. During
the current financial year Infosys applied for a total of
16 patents in the
U.S. and India. Infosys has filed an aggregate of 109
patent applications (pending)
both in the U.S. and in India and has been granted 2
patents by the U.S. Patent
and Trademark Office.
|
Energy | Resources |
|
Coal still rules ahead of crude oil and
natural gas(The Economic Times, Jan 29)
There are recoverable coal reserves in
around 70 countries - enough to last around
155 years according to most estimates. It is
easy to produce, low tech, and relatively
cheap to transport. The World Coal Institute
says that coal provides around 25% of global
primary energy needs and is used to generate
40% of the world's electricity. Two, coal is
far from being oh-so-Third World. Most big
industrialised nations, including USA, South
Africa and Australia, get up to 45% of their
current energy from coal. Uncle Sam gets a
quarter of his electricity from coal-based
power plants. With so much at stake, you can
be sure no one is going to slag off coal any
time soon.
Bush moots fund to help India, China on
clean energy sources(newindpress.com, Jan
30)
President George W Bush has proposed a new
international clean technology fund to help
developing countries like India and China
make greater use of clean energy sources. In
his State of the Union address, Bush said the
United States was committed to working with
major economies and the United Nations to
complete an international agreement with the
potential to "slow, stop and eventually
reverse the growth of greenhouse gases".
Scramble for coal shares in China reflects
growing thirst for resources(Times, Jan
29)
A Chinese coalminer has attracted $433billion
(�218billion) in share applications for its
flotation on the Shanghai Stock Exchange. The
scramble by private investors for shares in
China Coal Energy occurs as coal prices surge
to record levels worldwide and Chinese power
stations struggle to keep the country warm
and lit in an extraordinary winter chill.
Mozambique stays in talks with China for
energy investment(Reuters, Jan 28)
Mozambique has begun talks with China for
financing, including investment into its
burgeoning energy sector, two of the
country's officials said on Monday.
Mozambique's Minister of Energy, Salvador
Namburete, said the Chinese have shown
interest in the country's energy resources,
which include natural gas and coal reserves.
Opinion
Energy security: A new buzzword for
Europe(Turkish Daily News, Jan 29)
Without ensuring its energy security,
Europe's ability to be a serious global
player is at risk. The answer to the question
"is Europe ensuring its energy security?" is
negative. If current trends continue, Europe
will be more energy hungry and more dependent
on unreliable suppliers. On the other hand,
attempts to build alternative energy supply
routes for European markets face opposition
by Russia. The EU should develop a common
European Energy policy, collaborate with NATO
in securing routes of supply from asymmetric
threats, integrate energy rich countries like
Azerbaijan and Kazahkstan into Euro-Atlantic
structures, and develop stronger dialogue
with Russia
|
Health | Science | Environment | Education |
|
For
FDA, a major backlog overseas (IHT, January 29)
The Food and Drug Administration is so understaffed
that, at its current pace,
the agency would need at least 27 years to inspect
every foreign medical device
plant that exports to the United States, 13 years to
check every foreign drug
plant and 1,900 years to examine every foreign food
plant, according to government
investigators.
Olympic teams
vie to find ways to deal with Beijing pollution
(IHT, January 24)
As the lead exercise physiologist for the U.S. Olympic
Committee, Randy Wilber
has been fielding one bizarre question after another
from Americans training
for the Games in Beijing. Should I run behind a bus
and breathe in the exhaust?
Should I train on the highway during rush hour? Is
there any way to acclimate
myself to pollution? Wilber answers with a steadfast
no.
|
Agriculture |
|
China weather crisis may lift January
inflation(Market Watch, Jan 29)
China's brutal and deadly winter weather and
related power crises may not have a major
impact on economic growth, but could further
raise inflation and force Beijing to make
additional monetary tightening measures,
according to analysts.
The risks have increased in the wake of the
worst snowfall faced by China in decades,
which has affected power supplies in several
parts of the country, forced the closure of
several manufacturing plants and thrown air,
rail and road transportation into disarray.
China to set up agricultural technology
center for Sudan(China View, Jan 25)
China will assist Sudan in establishing an
agricultural technology demonstration center,
according to a cooperative protocol signed
here by the two countries Thursday. The
center, covering about 60 hectares in
Al-Qadarif in eastern Sudan, is designed to
boost agriculture in Sudan by breeding
improved strains, production demonstration
and personnel training.
Agri-biotech sector grows at
30%(Business Standard, Jan 29)
The agri-biotech sector in India is growing
at 30 per cent for the last five years, and
it is likely to maintain the growth in the
future as well, says a Rabobank report titled
"Indian agri-biotech sector: Emerging
scenario, issues and challenges".
The country made its entry into agri-biotech
in early 2002 with the government giving its
nod for commercial cultivation of Bt cotton.
Since then, agri-biotech continues to be the
fastest growing industry among all the
biotech industries in the country.
China stresses sufficient supply of
agricultural products(China View, Jan 27)
Chinese Vice-Premier Hui Liangyu on Sunday
urged agricultural producers' cooperatives
across the country to guarantee a sufficient
supply of agricultural products while
providing adequate materials needed in farming.
Those organizations should step up reform
in rural logistics and help stabilize the
prices of agricultural products, Hui told a
meeting of All-China Federation of Supply and
Marketing Cooperatives.
|
Manufacturing | Transportation |
|
Top
China chip maker SMIC swings to Q4 loss
(Reuters, January 29)
China's biggest contract chipmaker, Semiconductor
Manufacturing International
Corp (SMIC), swung to a quarterly loss amid
punishing price declines in the
global computer memory chip market. SMIC, which
has made a net loss for much
of the past three years, expects to spend $700
million in 2008 enhancing technology
and converting some production from plain-vanilla
memory chips to higher-end
logic microchips in Beijing.
Maru
ti
Profit Increases on Higher Car Demand in India
(Bloomberg, January 29)
Maruti Suzuki India Ltd., maker of half the cars sold in
the country, reported
third-quarter net income gained 24 percent after it
sold more Swift hatchbacks
and SX4 sedans. Net income in the three months
ended Dec. 31 rose to 4.67 billion
rupees ($119 million), or 16.17 rupees a share, from
3.76 billion rupees, or
13.03 rupees, a year earlier, the Indian unit of Suzuki
Motor Corp. said in
a statement today. Revenue rose 27 percent to 48.45
billion rupees.
DuPont
Opens Fluoropolymer Production Plant in China
(CNN Money, January 29)
A new DuPont fluoropolymer production plant has
begun operations here. The plant,
which produces polytetrafluoroethylene (PTFE) fine-
powder and dispersion for
global customers, with focus on Asia Pacific, marks
a significant milestone
in the company's strategic plan to establish a
broader fluoroproducts manufacturing
base in China. "The opening of the Changshu
plant supports our belief that
it is a very good time to invest in PTFE production in
China," said Cynthia
Green, vice president and general manager, DuPont
Fluoroproducts. "DuPont's
advanced, high-quality PTFE products already have
established a leading position
in the market and are delivering benefits to our
customers around the world."
|
Newsletter staff |
|
Publisher: Roxanne Russell
Editor of Academic Resources: Dr. S.V.
Char
Co-Editor: Abhijit Agrawal
Co-Editor: RJ Paulsick
|
|
|
|
ICA
Institute, founded by Dr.
Jagdish Sheth, is a non-profit
institute with the vision
of providing a sustainable, non-governmental
platform to identify and
drive synergies among India, China
and America in the areas
of emerging markets, commercial growth
and alignment of policies
for the benefit of a vast number
of people. This is
accomplished through knowledge creation
and the delivery of
knowledge-based services to policy makers,
business executives,
thought leaders and other stakeholders.
Learn more about the ICA institute
|
|