A weekly sampling of news, analysis and
opinion on economic issues of
India, China and the U.S.
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opinion pieces are from a variety of sources and
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US-Chinese Trade & Investment: What's Ahead? |
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Join us for a Webinar on Tu, May 6 at
11am EDT.
Ask government leaders and senior executives
in the United States, Western Europe or Japan
how they intend to cope with the challenges
of China and India, and you'll get a familiar
response: "We shall move higher in the
value-added chain." In the past, China was
the "world's factory" and India the "world's
back office." Today, new multinationals in
the emerging markets are no longer satisfied
with imitating. In certain cutting-edge
industries, they already seek to convert cost
advantages to more sustainable competitive
advantages-often through innovation.
Foreign multinationals - including U.S.
corporations - play a vital role in the
transition from cost-efficiencies to
innovation in the emerging markets.
As China has become America's most
rapidly-growing export destination, the
debate on the U.S.-Chinese trade and
investment has accelerated. Whether the next
president is a Democrat or a Republican,
pressure is growing on free trade in general
and the U.S.-Chinese trade and investment in
particular. Since these two nations now
account for almost half of global growth, the
future of the bilateral U.S.-Chinese
relationship has worldwide implications.
What is ahead?
The speaker, Dr. Dan Steinbock, is Research
Director of International Business at the ICA
Institute and will conduct this seminar from
Shanghai. He is also Faculty
Spokesman for the Forum to Advance Mobile
Experience (FAME), an initiative by the CMO
Council, representing 2,000 leading
technology firms; Director of the Mobile
Internet initiative at the Columbia Institute
for Tele-Information (CITI) and Visiting
Professor at Helsinki School of Economics. A
senior Fulbright scholar, Dr. Steinbock has
taught in executive education programs in the
US, Europe and Asia. He recently authored the
chapter "Higher Education and Innovation as
Competitive Advantages" in Education for
Innovation: Implications for India, China &
America (Sense Publishers, 2008). His
articles on US-Chinese trade have been
released in the US and China.
Title: US-Chinese Trade and Investment:
What's Ahead?
Date: Tuesday, May 6, 2008
Time: 11:00 AM - 12:00 PM EDT
The only cost is your long distance phone
call to dial-in.
Space is limited.
Reserve your Webinar seat now at:
https://www1.gotomeeting.com/register/166440623
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Emerging Telecom Market Forums: BRIC Opportunities |
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June 5-6, 2008 · Washington, D.C.
Information Gatekeepers Inc. (IGI), in
cooperation with Paul, Hastings, Janofsky &
Walker LLP, will organize the Emerging
Telecom Market Forums: BRIC Opportunities on
June 5-6, 2008 at the offices of Paul
Hastings in Washington, D.C.
The Forums will focus on the opportunities
and challenges in four of the largest telecom
markets in the world - Brazil, Russia, India
and China (BRIC).
For more information or to register, please
visit www.etmforums.com
or contact:
Dr. Hui Pan
Information Gatekeepers Inc.
320 Washington Street, Suite 302
Boston, MA 02135
Toll-free: 1-800-323-1088
Tel: 617-782-5033, Fax: 617-782-5735
hpan@igigroup.com
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Headlines |
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China praises Pakistan's role in regional
stability (Daily Times, Apr 27)
Chinese Foreign Minister Yang Jiechi on
Saturday praised Pakistan's role in promoting
peace, security and regional stability and
its contribution to the fight against terrorism.
He met President Pervez Musharraf and
congratulated him on the smooth transition to
democracy. He said that China would continue
to support Pakistan in its efforts for
economic development and more Chinese
corporations and businesses would be
encouraged to invest in Pakistan.
He said expressed satisfaction over the
continued growth of the bilateral ties of the
two "time-tested" and "all-weather" friendly
countries.
He said that Musharraf's recent visit to
China had further consolidated the strategic
partnership between the two countries. Yang
said that China wanted to enhance
co-operation in the fields of
telecommunication networks, energy, minerals
and education. He urged to intensify the
people-to-people contacts.
Iranian president to visit India, amid US
concern (Radio Australia, Apr 29)
Iran's president, Mahmoud Ahmadinejad, will
arrive in New Delhi on Tuesday for a one-day
working visit.
The brief stay will be dominated by talks on
two multi-billion-dollar energy deals, even
as the United States urged New Delhi to
persuade Iran to curtail its nuclear programme.
Energy issues will top the agenda during the
visit, with nuclear-armed India, hungry to
tap new sources of energy to fuel its booming
economy, is looking to Iran as a long-term
energy partner.
Arms ship exposes Robert Mugabe's link to
Chinese firm (TimesOnline, Apr 27)
The boycott of a Chinese ship laden with
weapons for Zimbabwe has cast new light on
the connections between the African country's
president, Robert Mugabe, and a secretive
Chinese arms-trading firm with a
controversial track record from the Congo to
Darfur.
The ship steamed towards China last week
after dock workers in Durban refused to
unload it and a South African court blocked
the transit of its cargo of mortar and small
arms ammunition.
The 15,000-tonne An Yue Jiang is registered
in the southern city of Guangzhou and has
been operated for about 20 years by Cosco, a
state-owned cargo line.
When Levy Mwanawasa, the president of Zambia,
called on every country in the region to
reject it, the ship became an embarrassment
to Beijing, which has made a huge political
and financial investment in Africa.
Opinion
What kind of China do you want? (Atlanta
Journal Constitution, Apr 29)
While the words "yellow peril" may not be
overtly used today, the sentiment is
reflected in a fear of China that borders on
paranoia. China has become a convenient
symbol for everything we see wrong with our
country. China holds billions of U.S.
government securities, which makes us
supposedly "hostage" to them. China has
"hollowed out our manufacturing" with their
cheap labor, which "Benedict Arnold
companies" from the U.S. exploit. Our
presidential candidates speak about how
they'll keep Chinese companies from selling
us toxic dog food and toys that poison our
children. 'm not some wide-eyed Westerner
infected with "China fever." You don't have
to travel far beyond the gleaming skyscrapers
of Shanghai to see that China is a developing
country with many problems. Despite
significant gains in national living
standards, rural poverty is staggering. The
country's health care system is years behind
what we enjoy, and pollution is a major
problem in almost every major Chinese city.
Which China, however, would you rather have?
Today's China, seeking to join the world
economic order, or yesterday's China, which
walled itself off and characterized the
United States as an enemy?
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Energy |
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China considering relief for power companies
due to rising coal prices (Forbes, Apr
28) The National Development and Reform
Commission (NDRC), China's economic planning
agency, is considering relief for power firms
as coal prices rise, the China Business News
reported.
'The government is paying attention to the
losses of power companies; we are studying
measures' to aid the industry, an
unidentified NDRC official was quoted as saying.
China's top five power producers, including
Huaneng, Huadian, Datang, Guodian and China
Power Investment posted a combined loss of
2.7 bln yuan in the first quarter due to
rising coal prices and caps on electricity
tariffs, the paper said.
Haryana solar project draws in big guns
(Business Standard, Apr 23)
With companies like Reliance Industries
Limited (RIL), EPURON, Admire Energy
Solutions Limited (Moser Baer group company),
Albina Power (an Indiabulls Company), Acme
Telepower Limited and Emco Limited showing
interest in harnessing electricity from solar
energy in Haryana, the state government's aim
to add 10 per cent of the new capacity
addition of power through renewable energy by
2012 seems a possible reality.
The Haryana Renewable Energy Development
Agency (HAREDA), which is the nodal agency to
promote and implement renewable energy
projects, recently invited applications from
independent power producers (IPPs) and other
parties to set up solar photovolatic power
(SPP) plants across the state.
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Information & Communication Technologies |
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India's ten of the best (iol, Apr
27) India's satellite launch vehicle
PSLV-C9 is set to launch 10 satellites in one
go on Monday, officials said.
The PSLV-C9 is scheduled to put in orbit the
Cartosat-2A remote sensing satellite along
with an Indian mini-satellite and eight
foreign nano satellites, S Satish, spokesman
for the Indian Space Research Organization
(ISRO), said.
"The 230-tonne rocket (PSLV-C9) will carry a
luggage of 824 kilograms," he said.
Cartosat-2A weighs about 690 kilograms an
carries a panchromatic camera that can record
high-clarity images covering a swathe of 9.6
kilometres.
The remote sensing satellite will provide
data that would be used for urban and rural
infrastructure management and land
information systems, Satish said.
Lessons from India telecom operators on
rural telephony (Vanguard, Apr
28) INDIA is a sub-continent of more
than one billion people, next only to China
both in terms of population and business
volume, and last week the country hosted the
2nd Connecting Rural Communities Asia Forum,
which attracted operators from not only Asia,
but from the rest of the world.
It was quite a big eye-opener how operators
in the world's largest democracy have
surmounted odds to boost rural telephony. The
lessons are for everyone, operators, industry
regulators and even subscribers on the way to
go about the business of rural telephony
especially in Nigeria.
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Agriculture |
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Agri rebound: Grain output up 4.6%
(Business Standard, Apr 29) Production
surged 10 million tonnes to 227.32 million
tonnes in 2007-08.
After a near-stagnation or modest growth in
output for several years, Indian agriculture
is reckoned officially to have rebound in
2007-08 with foodgrain production surging by
10 million tonnes, or 4.6 per cent, to touch
a new high of 227.32 million tonnes. The
grain output in 2006-07 was 217.28 million
tonnes.
China 'may lease foreign fields' (BBC
News, Apr 29)
Soaring grain prices have encouraged the
ministry of agriculture to consider the
scheme, according to the Beijing Morning
newspaper.
Chinese enterprises would lease or even buy
farmland in Latin America, Australia and the
former Soviet Union.
The land in production could replace Chinese
farmland lost to rapidly growing cities and
industrial zones.
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Education | Workforce Development |
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Help Wanted: Top Managers in China (The
Wall Street Journal, Apr 29)
U.S. companies in China say recruiting
talented managers for their local operations
has become their biggest business challenge,
a finding that highlights the continuing gap
between the skills taught in China's
universities and what businesses here are
actually looking for.
A joint survey by three U.S. chambers of
commerce in China showed "a continued
worsening of human-resource challenges as
companies expand," said J. Norwell
Coquillard, chairman of the American Chamber
of Commerce in Shanghai. Difficulty in
finding, training and retaining managers was
named as the top operational problem by 37%
of the 324 companies responding, more than
issues such as regulation, bureaucracy or
piracy.
China's sci-tech human resources top 42
mln (China View, Apr 29)
China has a human resources reservoir of 42
million in science and technology, said a
report issued on Tuesday.
The report, compiled by the China
Association for Science and Technology, said
65.7 percent of the sci-tech human resources
were below 40 years old, and the ratio of
male to female was 2:1.
The sci-tech human resources formed an
important foundation fora nation's renovation
capacity, and after half a century's efforts,
China now stood at the forefront of the world
in terms of the quantity of sci-tech human
resources, the report said.
In 2005, China's sci-tech human resources
stood at 35 million, according to then
Minister of Science and Technology Xu Guanhua.
According to the report, most of such
resources were now in the secondary and
tertiary industries, and in terms of sector,
education had the most of such resources,
followed by manufacturing, building, public
administration and social organization.
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Industrial Resources | Manufacturing |
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Australia denies telling China to back off
on investments (AFP, April 27)
The Australian government Sunday denied a
report Chinese firms have been told to
withdraw from investing in Australian mining
companies while it reviews foreign investment
rules.
"There's been no suggestion that China or any
other investor should back off," Resources
Minister Martin Ferguson said.
A report last week said that at least 10
Chinese companies had pulled back their
foreign investment applications under
pressure from Prime Minister Kevin Rudd's
government.
The government had made it clear, in private,
to the potential investors it wanted more
time to consider the national interest
implications of greater foreign ownership of
the resources industry, The Australian said.
Dubai Group acquires 40% stake in India's
Chiranjjeevi Wind Energy (Al Bawaba,
April 28)
Mitsubishi Motors Corp. is aiming to nearly
double manufacturing capacity of a powertrain
unit here to 420,000 engines a year by 2010,
as part of the company's strategy to
make Shenyang a global supply center of small
engines. Construction workers are rushing to
finish a second plant in the engine
company's manufacturing facilities in an
industrial park south of this northeastern
Chinese city.
Costs driving US manufacturing firms out of
China: AmCham (AFP, April 29)
China is losing some of its attractiveness to
foreign investors as rising costs are forcing
some US manufacturing firms to leave the
country, the American Chamber of Commerce
(AmCham) said Monday.
More than two-thirds of AmCham's member
companies surveyed in an annual white paper
agreed that China was losing some of its
competitive advantage in global markets due
to rising costs.
Factors with the biggest financial impact
last year included price pressures from
competition and major customers, rising
salaries and wages, changes in raw material
prices, tax expenses and real estate cost
inflation, the survey said.
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Environment | Climate Change |
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New chapter opens in EU-China Climate Change
Partnership (Cordis News, April 29)
China's involvement in global sustainable
cooperation is crucial if the World is to
reduce greenhouse gasses. In recent years,
rapid economic growth has seen a major
lifestyle shift in the country, leading to
the creation of new megalopolises, increased
car ownership, and growing demand for energy.
All this growth has therefore led to
increased carbon emissions, emissions which
the Kyoto Protocol and the United Nations
Framework Convention on Climate Change aims
to curb.
The EU is leading the way in cutting CO2
emissions, and is working at a multilateral
level with countries such as China to achieve
a global response to the issue. In keeping
with this, in 2005, the EU and China first
began its partnership on climate change.
The partnership contains two concrete
co-operation goals, to be achieved by 2020.
The first is to develop and demonstrate, in
China and the EU, advanced 'zero-emissions'
coal technology. This technology will allow
for the capture of CO2 emissions from
coal-fired power plants and its subsequent
storage underground, for example in exploited
oil or gas fields or in sealed geological
strata, thereby avoiding CO2 emissions into
the atmosphere.
India, China should be part of climate
change policy(The Economic Times, April
29)
The US has said post-Kyoto protocols to
tackle climate change will not make any sense
if India and China are given a "pass" and
that Washington will not be a signatory to
any such framework if the two Asian giants
are not on board.
"... the international community has got to
come up with a new plan. And if we give a
pass, again, to India and China, these major
rapidly growing economies -- if we don't get
them on, whatever measures we take are going
to be totally cancelled and overshadowed,"
Deputy Secretary of State John Negroponte
said in an interview on PBS.
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Corporate Responsibility |
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Sonia invites pvt role in health
security (Business Standard, April 29)
"There are difficulties, especially in the
Northern part of the country to successfully
implement the programme. The private sector
has a definite and growing role in rural
healthcare programmes. The government will
encourage such projects", she said.
The CII session also saw the industry chamber
announce the launch of 'CII Healthy Villages
Project' that aims at aggregating the CSR
(corporate social responsibility) efforts of
multiple corporates to create effective
partnerships in selected villages.
Will Social Responsibility Ever Rival SLAs
as Outsourcing Consideration? (IT
Business Edge, April 23)
Last summer's recalls of products made in
China - from pet food to children's toys to
toothpaste - had lots of folks pondering
cultural differences in outsourcing
relationships and how they relate to business
ethics.
But since then, such talk has died down. It
still remains on the minds of
decision-makers, however, based on the
International Association of Outsourcing
Professionals' selection of socially
responsible outsourcing as its top trend in
the outsourcing industry for 2008.
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Innovation |
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The State of European Innovation
(Business Week, April 28)
"China produces more scientists and engineers
every year than we have in all of Europe,"
says John Bessant, a professor of innovation
management at Imperial College London. "We've
got to innovate twice as fast." At first
glance, the 2008 World's Most Innovative
companies ranking from BusinessWeek and
Boston Consulting Group makes depressing
reading for Europhiles. Only 10 European
companies made the top 50, and only
one-Finnish mobile handset maker Nokia
(NOK)-made the top 10. North American
companies dominate the list, with Asian
companies second and coming on strong.
Biotech sector posts 30% growth in
2007-08 (Business Line, April 24)
The domestic biotechnology industry is now a
$3-billion (around Rs 12,000 crore) sector,
registering 30 per cent growth in 2007-08
over the previous year.
Half of the 24 companies that came up were in
Bangalore, that accounts for 60 per cent of
the $1.5-billion exports, the Karnataka IT
and Biotech Secretary, Mr Ashok Kumar Manoli,
said citing an industry survey.
The top five companies by revenue contributed
a third of the $3-billion turnover of the
industry.
Research services touched $500 million and
bio IT (bioinformatics) was $250 million.
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Health | Medicine |
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U.S. official: China's health care reform
provides opportunities for American companies
(Union-Tribune, April 25)
China's efforts to reform its health care
system provide a major opportunity for
American companies to enter the Chinese
market, a top U.S. commerce official said Friday.
As China looks toward revamping a health care
system that currently has hundreds of
millions of uninsured citizens, American
businesses have the chance to be involved
through selling medicine, health services,
and health insurance, Undersecretary of
Commerce Christopher Padilla told reporters
in Beijing.
"We see in China's health care reforms
something that's not only good for Chinese
citizens, but something that is a tremendous
opportunity for U.S. companies to expand
their business in China," he said.
Chinese raw materials may push up common
drug prices (Business Standard, April 28)
Sharp increase in prices of raw materials may
soon force domestic drug firms to raise
prices of a majority of the commonly used
medicines. The main reason is the high cost
of imported drug intermediates from China, it
is learnt.
All major antibiotics, which account for
about 60 per cent of the Rs 35,000-crore
domestic medicine sales, will become
expensive if prices of these imported
intermediates continue to rise, industry
sources say.
Brazil declares anti-AIDS drug to be of
public interest; India's pharma industry may
benefit ne (domain-B, April 28)
The Brazilian government recently declared
the drug Tenofovir, used against HIV/AIDS, to
be of public interest. The announcement
signals the country's interest in using an
option to avoid the patent on the drug and
beginning the process of issuing a compulsory
license for the antiretroviral which is
produced by the Gilead Science
biopharmaceutical company.
A clause in World Trade Organization rules,
to which Brazil is a signatory, allows
nations to flout drug patents in the name of
public health. Other countries, including
Canada, Italy and Thailand, have also taken
this route to gain access to cheaper AIDS
drugs.
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Logistics | Transportation |
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New airports policies get Cabinet nod
(The Financial Express, April 24)
The Union Cabinet late on Thursday cleared
two significant policy initiatives allowing
private developers to set up captive
airstrips and general airports-moves aimed at
decongesting air traffic in cities and
developing aviation infrastructure.
The government has also allowed for
case-by-case approval of greenfield projects
within 150 km of an existing airport, which
could bode well for the proposed airport at
Noida on the outskirts of Delhi.
In a major relaxation, the civil aviation
ministry and the Directorate General of Civil
Aviation (DGCA) will henceforth decide on all
such proposals after security clearance from
the ministry of home affairs.
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Newsletter staff |
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Publisher: L. Roxanne Russell
Editor of Academic Resources: Dr. S.V.
Char
Co-Editor: Abhijit Agrawal
Co-Editor: RJ Paulsick
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ICA
Institute, founded by Dr. Jagdish Sheth,
is a non-profit research institute working to
foster research and dissemination of
knowledge on the rise of China and India and
their impact on global markets, global
resources and geopolitics of the world. The
ICA Institute's mission is to generate new
perspectives on the role of market and
resource driven economic development. ICA
Institute fosters interaction and dialogue
between academic scholars, industry leaders
and policy makers on the impact of emerging
economies in general and China and India in
particular. Specifically, ICA Institute is
positioned to be a catalyst between faculty
and students in International Business and
industry leaders and managers.
Learn more about the ICA institute
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