1. WP: U.S., China pledge cooperation on climate change
The United States and China said Saturday they have agreed to intensify efforts to address climate change and to work together on forging a common platform ahead of a global summit on the issue at the end of next year. The agreement was announced during a visit by U.S. Secretary of State John F. Kerry, as some of the worst air pollution in almost a year brought visibility down to two or three blocks in Beijing.
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2. Bloomberg: Pritzker bridges business-Obama rift while pressing trade agenda
U.S. Commerce Secretary Penny Pritzker sees herself as the administration’s ambassador to the business community. The corporate world is banking on the reverse, that she’ll represent them. “The first thing I know about being a business person and leading a business is, you listen to your customer,” Pritzker said in an interview during Detroit’s January auto show. “Our customer at the Department of Commerce is the business community.” Pritzker strolled among the latest versions of Ford Motor Co.’s iconic Mustang and F-150 pickup truck as Mark Fields, the company’s chief operating officer, and Ziad Ojakli, one of its lobbyists, followed along and urged her to back efforts to prevent currency manipulation in trade deals. Pritzker listened and took notes on her “Office of the Secretary” stationery. Two words she penned: “currency” and “
trainwreck.” Pritzker “may not be the point person, but with a seat at the table she can convey that this is a real concern,” Ojakli said in a later interview.
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3. WSJ - Chuck Hagel and Penny Pritzker Oped: America is committed to Asia
We will continue to promote security, prosperity and cooperation. For decades, security and prosperity have flourished throughout the Asia-Pacific region, each reinforcing the other. The astounding growth of trade and industry across the Pacific Rim has transformed nations and lifted millions of people out of poverty, surpassing all expectations while strengthening many crucial relationships. This progress was no accident. America's security presence in the region and our strong alliances, economic ties and people-to-people contact with nations like Japan, the Republic of Korea, Australia, Thailand and the Philippines have provided the necessary stability for Pacific nations to focus on giving their people a more inclusive, peaceful and prosperous future. Today, as more and more of America's trade and defense activities shift toward the Asia-Pacific, and as the region undergoes dynamic changes with the rise of China, Indonesia and India, the United States Departments of Defense and Commerce are working side by side to help keep trends moving in the right direction and promote greater security and prosperity. As part of the Obama administration's comprehensive strategy for
rebalancing toward the Asia-Pacific, the Departments of Defense and Commerce will intensify our dialogue with regional leaders and pursue innovative ways to collaborate. For example, in April, the Defense Department will host a meeting of the 10 Association of Southeast Asian Nations defense ministers in Hawaii, where the ministers will visit the Commerce Department's Inouye Regional Center, home to the bulk of NOAA's assets in Hawaii, and discuss ways to enhance humanitarian assistance and disaster relief efforts, among other issues. The Asia-Pacific's dynamic growth cannot be taken for granted. Security, stability and prosperity require constant attention, a commitment to shared principles, and the combined efforts of the United States and all Asia-Pacific nations. When nations work together for the benefit of all their people, everything is possible.
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4. WSJ: China fund shifts focus away from commodities to U.S., European recovery plays
Sovereign fund China Investment Corp.
trims stakes in energy, resource firms.
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5. WSJ: China unveils new bank liquidity rules after repeated cash squeezes
Move comes after China's financial system was hit by a series of credit squeezes last year.
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6. Reuters: China says it will win West over to its view on Tibet, Xinjiang
China has "time on its side" to win over Western opinion to its point of view on the restive regions of Tibet and Xinjiang, a senior official wrote on Wednesday, vowing with unusually strong language to ignore foreign pressure on human rights. Zhu Weiqun, chairman of the ethnic and religious affairs committee of the top advisory body to parliament, acknowledged this would be a difficult
task but said dissenting voices were beginning to be heard in the West. "As China becomes more involved in international affairs, and as Tibet and Xinjiang further open to the world, more and more Westerners will have an understanding of Tibet and Xinjiang that better accords with reality," Zhu wrote in a lengthy article on the government-run website Tibet.cn.
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7. Bloomberg: China cuts Treasury holdings most since 2011 amid taper
China, the largest foreign U.S.
creditor, reduced holdings of U.S. Treasury debt in December by the most in two years as the Federal Reserve announced plans to slow asset purchases. The nation pared its position in U.S. government bonds by $47.8 billion, or 3.6 percent, to $1.27 trillion, the largest decline since December 2011, according to U.S. Treasury Department data released yesterday. At the same time, international investors increased holdings by 1.4 percent, or by $78 billion, in December, pushing foreign holdings to a record $5.79 trillion.
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8. Bloomberg: China probes former Zhou Yongkang secretary Ji Wenlin
China is probing a one-time aide to Zhou Yongkang for discipline violations, the latest official to be ensnared by corruption investigations surrounding the retired Politburo Standing Committee member.
Ji Wenlin, vice governor of southern China’s Hainan province, is under investigation for alleged “serious violations of discipline and laws,” the Communist Party’s Central Commission for Discipline Inspection said yesterday on its website. There were no other details in the statement, released two weeks before the annual meeting of China’s legislature, the National People’s Congress, begins on March 5. The announcement means at least five people with ties to Zhou are now under party investigation over graft allegations, and follows reports that the country’s former security chief is himself being targeted. The probe of Zhou is in its “final stage,” the South China Morning Post reported Jan. 29, citing two unidentified people who received the information. Any lag in prosecuting Zhou may reflect divisions between President Xi Jinping, who started an anti-corruption campaign when he came to power more than a year ago, and other party factions, according to Joseph Cheng, a political science professor at the City University of Hong Kong. “We expect that there will be people pleading on his behalf because there is speculation that if Zhou Yongkang can be prosecuted, then there will be others,” Cheng said by phone. “This is why Xi Jinping can certainly expect a lot of resistance.”
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9. WSJ: Sinopec to allow some outside ownership of distribution activities
China's largest oil refiner open to third-party participation of up to 30% Share. China's largest oil-refining company plans to open up its domestic marketing and distribution operations to outside investors, in a nod to Beijing's latest efforts to reform state-owned companies and encourage a mixed-ownership economy. However, China Petroleum & Chemical Corp., known as Sinopec Corp., stopped short of fully opening up its gasoline stations and other distribution lines to third parties by capping the amount of outside investment at 30%, highlighting the gradual pace of such reforms. Sinopec didn't give details about the outside investment program. It has some joint ventures with other companies in that segment. "
Sinopec's lead in diversified-ownership reform and introducing social and private capital is another step toward building a mixed-ownership entity," the company said on Wednesday. It said it was following directives laid out in China's landmark reform blueprint issued in November, which called for private companies to play a larger role in a mixed-ownership economy.
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10. WP: ‘House of Cards’ finds avid audience in China
Frank Underwood — the scheming U.S. Congressman in the Netflix drama “House of Cards” — may be the most murderous, morally corrupt, conniving politician in Washington. And the Chinese can’t get enough of him. Some viewers here stumble over references to filibusters and struggle to follow Underwood’s thick-as-molasses South Carolina drawl. But the darkly cynical television show, an American hit now in its second season, has attracted a sizable following in Beijing anyway. Among its most avid fans? Top leaders in China’s Communist Party. It’s little surprise that a show devoted to political machinations would resonate in a country with a long history of back-stabbing leadership purges and inner-party struggle. Many in the Chinese public perceive their leaders as brazenly unscrupulous, with the only goal in governance to consolidate power and wealth. But another reason the show may be a success here, some China experts in the United States fear, is because its unflattering portrayal of U.S.
politics affirms Chinese government propaganda about American hypocrisy and bullying. In the show, actor Kevin Spacey plays Underwood, a congressional leader who is rejected for a Cabinet appointment, then claws his way to revenge and higher office. “For Chinese, America is the big bugaboo in the world, so it makes sense that there’s interest in the intrigue and the power behind Washington,” said Michael Auslin, Asia expert at the American Enterprise Institute. “That said, it’s probably not a great thing if this is the only side they’re seeing. . . . To truly understand U.S.
politics, I would prefer they watch C-SPAN, but that’s probably not realistic.”
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11. WSJ: 'House of Cards' breaks barriers in China
Edgy online show, with a major Beijing plot line, airs uncensored. As Hollywood tiptoes into China with tame plots, one U.S.
television program is drawing online viewers with story lines about Chinese corruption, intrigue and sex. That show is "House of Cards," whose new season opened Friday on Netflix Inc. NFLX -1.20% '
s paid online-video service in the U.S.
and on Sohu.com Inc. SOHU -0.67% 's ad-sponsored service in China. The second season—which follows fictional U.S. Vice President Frank Underwood, played by Kevin Spacey—includes a significant story line about China. (Attention, viewers: Mild spoilers follow.) In the latest season, Mr. Underwood tackles politically sensitive issues like Chinese
cyberespionage, currency manipulation, a trade war over rare-earth minerals and escalating tensions between China and Japan in the East China Sea. In one scene, Mr. Underwood says to a corrupt Chinese businessman: "Mao is dead, and so is his China." The popularity of "House of Cards" in China comes at a time when U.S.
filmmakers and TV-show creators are looking to China to broaden their audiences. Talk-show host Ellen DeGeneres became the first to air a U.S.
talk show in China this January on Sohu, which also signed on
comedy sketch program "Saturday Night Live."
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12. CD: China needs consumption growth: expert
China made no headway last year toward its goal of growing through domestic consumption, as investment accounted for more than half the nation's economic activity, a US expert on China's economy said. "We just didn't see any progress," David Dollar, a former US Treasury Department economic and financial emissary to China, told China Daily in an interview. Dollar said that although China's gross domestic product grew 7.7 percent in 2013, beating the government's 7.5 percent target, the nation's economy still hasn't seen the changes that many economists say would set it on a sustainable course for growth - chiefly greater domestic consumption and less investment and export-driven growth. "My main concern is the majority of growth (in 2013) came from investment," said Dollar, who held the Treasury post from 2009 to 2013 and now is a senior fellow at the Brookings Institution's John L. Thornton China Center in Washington. Government data last month showed capital formation accounted for 54 percent of China's economic growth last year, exceeding the 50 percent share taken up by consumption. Public investment accelerated during the second half of the year as the government sought to boost lower than expected growth
from the first half of the year.
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13. SD: New rules lure foreign firms to FTZ
More than 400 foreign enterprises have been lured to the Shanghai pilot free trade zone by soon-to-be-released financial rules and an updated negative list, a senior zone official said yesterday. Overseas investors are accelerating their investments in the zone as the rules and the updated negative list will provide more transparency and wider opening for the foreign companies, Jian Danian, deputy director of the China (Shanghai) Pilot Free Trade Zone Administration, said in a speech to AmCham Shanghai members yesterday. The financial details covering cross-border and third-party payment services, management of foreign exchange as well as interest rate liberalization will be released “very soon,” Jian added but gave no timetable. He noted regulators are working on a 2014 version of the negative list for foreign investment in the zone, which may be unveiled in the first half of this year.
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14. SD: Surge in inward investment as capital from US rises by 34.9%
China’s foreign direct investment surged 16.11 percent in January compared with a year earlier, with cash infusions from Asian economies and the United States showing the steepest rises. This was due to the country’s greater efforts in opening up and stronger investor confidence, the Ministry of Commerce said yesterday. Foreign investors channeled US$10
.76 billion into China, extending
growth momentum for a 12th consecutive month. The increase was bolstered by investment from the US, which jumped 34.9 percent to US$369 million. The group of 10 Asian countries and regions raised their investment by 22.16 percent to US$9
.54 billion, with South Korea nearly tripling its input. However, investment from the European Union fell 41.25 percent to US$482 million. Shen Danyang, a ministry spokesman, said January’s double-digit growth confirmed foreign investors’ confidence in China’s economy and the quality of the nation’s investment climate. “China’s new leadership has put much emphasis on reforms to allow the market a bigger role,” Shen said. “Such a strategy helps to strengthen investor confidence and enhance the charm of China for foreign investors.”
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15. SD: FTZ helps Shanghai’s trade expand 16.5%
Shanghai’s trade expanded 16.5 percent from a year earlier in January, better than the national average of 10.3 percent, due to the pilot free trade zone, the Shanghai Statistics Bureau said yesterday. Exports rose 9.8 percent to US$19
.6 billion last month, compared with a 2.5 percent rise a month earlier. Imports jumped 22.9 percent to US$22
.8 billion, compared with December’s 13.8 percent. Li Maoyu, an analyst at Changjiang Securities Co, said Shanghai’s trade benefited from the upturn in the global economy and the city’s FTZ facilitated that process. “Ever since the inauguration of the FTZ program, the city has attracted attention from various traders and investors,” Li said. At the annual session of the Shanghai People’s Congress last month, Mayor Yang Xiong said the city would focus on reform and opening-up this year, with the China (Shanghai) Pilot Free Trade Zone as one of its priorities.
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16. Bloomberg: Fosun to acquire China hospitals operator Chindex with TPG
Shanghai Fosun Pharmaceutical Group Co. (600196) teamed up with private-equity firm TPG Capital to acquire Chindex International Inc. (CHDX), in a deal valuing the New York-listed operator of hospitals in China at $369 million. The buyers are offering $19.50 a share for the outstanding stock, a 14 percent premium to its closing price on Feb. 14, Chindex said in a statement today.
Fosun Pharma, a maker of drugs and traditional Chinese medicine, will own 48.65 percent and TPG will own 48.14 percent after the deal, the drugmaker said in a release to the Shanghai Stock Exchange. The deal will boost Chindex’s working capital and enhance its scale and profitability amid an expansion of its medical-services network, Fosun Pharma said. China has been easing controls on foreign investments and participation in the country’s hospitals in an effort to boost
health-care standards for an aging population. “
Chindex has encountered limitations on its ability to unlock projected value without substantial capital expenditures and funding currently unavailable to the company,” Chairman Kenneth Nilsson said in the statement.
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17. Bloomberg: Herbalife boosts forecast as China growth helps profit
Herbalife Ltd. (HLF), the
nutrition company that hedge fund manager Bill Ackman has accused of being a pyramid scheme, posted a 10 percent rise in fourth-quarter profit and boosted its forecast as sales gained in China. Net income increased to $123.5 million, or $1.15 a share, from $112.2 million, or $1, a year earlier, the Cayman Islands-based company said yesterday in a statement. Excluding some items, profit was $1.28 a share, matching the average of three analysts’ estimates compiled by Bloomberg. Chief Executive Officer Michael Johnson, who earlier this month rewarded shareholders by boosting Herbalife’s buyback, is working to expand sales of vitamins, skin creams and meal-replacement shakes while fending off Ackman’s accusations. Revenue rose 20 percent to $1.27 billion, helped by sales more than doubling in China and climbing 43 percent in South and Central America.
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18. NYT: Chinese developer envisions a future for abandoned London docks
Known for ambitious plans in China for business parks the size of cities, Xu Weiping says he cannot wait to start work on his first project abroad: turning an abandoned London dock into Europe’s main hub for Chinese companies. “I’m a man with a vision and the ability to turn my dream into reality,” said Mr. Xu, dressed in a yellow-and-white Versace shirt, a black velvet jacket and patent-leather shoes with gold buckles. Mr. Xu last year agreed to invest $1.6 billion to turn London’s derelict Royal Albert Dock back into a vibrant global trading hub. But instead of ships he is betting on Chinese companies that are seeking a foothold in Europe. Mr. Xu said that more than 60 Chinese businesses, many already tenants of his empire in China, have signed up to take space in the development, about nine miles east of London’s city center. Construction on what is planned as 4.5 million square feet of office space, to be done in phases through 2022, could start as soon as this summer.
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19. Fast Company: With glittering new set design, CCTV news takes aim at the world
How Jim Fenhagen, the American set designer behind The Colbert Report, The Daily Show, and Martha Stewart, navigated a raft of cultural differences to give China's favorite newscast a set design that could capture the program's global ambitions.
Although the advanced LED technology used in the sets was manufactured in China, the
sets themselves were built in New Jersey and shipped to Beijing, when it became apparent that the skill to produce them wasn’t available locally
.
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20. FT: Sticky or sweet – China’s tricky choice
It hadn’t happened in a generation: Valentine’s day, that most mercenary and occidental of holidays, coincided in China last week with
Lantern Festival,
culmination of the lunar new year holiday, oriental and traditional. Talk about culture clash. Sticky rice dumplings with the family, or Lafite and Louis Vuitton with the girlfriend? The choice was clear: east or west. Nobody could choose both. The last time the two holidays coincided was 1995 – but that was before Cupid was
canonised in China. These days Valentine’s day is celebrated at least as enthusiastically in Beijing as in Boston. Even I got an avalanche of Valentine greetings; the last time I got that lucky was in 1960, when sending a Valentine to each child was a requirement for graduation from kindergarten. So who won this latest culture quarrel? Surveys published by
Chinese media and social networking sites found a clear majority – and sometimes as many as 70-90 per cent – of young people claiming to have celebrated with parents rather than lovers. Even allowing for a certain amount of filial piety inflation in the results, it looks like dumplings beat bonbons hands down.
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21. Bloomberg: Pesek on Asia: China's economist clampdown
China's economist crackdown. It used to just be the Internet and foreign media, but China's censorship efforts now extend to economists try to shed daylight on the scale of its challenges. If this South China Morning Post scoop is right, and I'll bet it is, China is making a colossal blunder. China is already too much of a black box for an economy that could surpass the U.S.
over the next decade. It will become even more opaque if researchers telling the truth about
risks to the outlook are silenced. The International Monetary Fund and Group of Seven nations should publicly condemn any move by Beijing to hide its troubles from a world that needs to know.
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