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PM to Meet Leading Businesspeople at World Econ Forum

PM to Meet Leading Businesspeople at World Econ Forum

The prime minister is attending the World Economic Forum in Switzerland and meeting with leading business people to clarify Thailand’s flood recovery plan. Prime Minister Yingluck Shinawatra is in Davos, Switzerland today to take part in the 42nd World Economic Forum. She’s scheduled to take part in a round-table luncheon with leaders and leading business people to discuss sustainable economic growth.

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PM to Meet Leading Businesspeople at World Econ Forum

A severe drought and a decline in rice prices in early 2010 do not bode well for agricultural production and consumption, although increased employment in manufacturing will partly offset the impact to agriculture.
All in all, a more favorable external environment should help boost real GDP growth to 6.2 percent in 2010. After this year, slower growth in developed countries, emerging capacity constraints as capacity idled during the crisis is quickly put to use, and the weight of the ongoing political turmoil on new investment, should likely keep growth below Thailand’s historical average of 5.1 percent. On the whole, Thailand’s fiscal and financial picture remains solid

The relative strength and power of sovereign wealth funds is massively increasing, and the money has to go somewhere.
But another factor is likely the presence of larger, institutional investors in large-cap stocks who are more concerned about long-term performance than short-term market movements.

In 1972 the Government took a further step in this direction by amending the “Announcement of the Executive Council No. 58 on the Control of Commercial Undertakings Affecting Public Safety and Welfare”. The changes extended Government control and regulation over the operations of finance and securities companies, which until then had operated fairly freely. Following these amendments, in May 1974, long-awaited legislation establishing “The Securities Exchange of Thailand” (SET) was enacted. This was followed by revisions to the Revenue Code at the end of the year, allowing the investment of savings in the capital market. By 1975 the basic legislative framework was in place and on April 30, 1975, “The Securities Exchange of Thailand” officially started trading. On January 1, 1991 its name was formally changed to “The Stock Exchange of Thailand” (SET).

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Burma Ready to Play Ball With US

Burma Ready to Play Ball With US

The release of more than 200 political prisoners on January 13 and the subsequent decision by Washington to announce its readiness to send an ambassador to Burma are the latest steps taken by both governments to normalize relations.

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India trying to find ways to pay for Iran oil: RBI

Mumbai: Reserve Bank of India Deputy Governor KC Chakrabarty on Friday said efforts were being made to explore ways to pay for oil imported from Iran, which has been subjected to international sanctions. Chakrabarty termed the issue as one arising purely out of international sanctions on Iran and not a financial one. “We are finding, something is happening,” he said when asked about the way ahead to pay Iran for the crude which the country imports. When asked about the recent visit by an Indian team to the Gulf nation for settling the issue, he said, “They have to find a way out. “It is very difficult. It is international diplomacy. It has nothing to do with finance,” Chakrabarty said, speaking on the sidelines of an event here this evening. “The problem is we are not able to route the transactions through some banks because of international sanctions,” he added. Iran is the country’s second largest supplier of crude after Saudi Arabia. Earlier, payments for crude were made through multi-lateral settlement mechanisms which stopped about a year ago due to UN-imposed sanctions. Later, a novel way of payment was worked out wherein the Iranian Central Bank opened rupee accounts with Indian commercial banks, but that also is reportedly in trouble. US President Barack Obama on December 31 signed into law measures that deny access to the US financial system to any foreign bank that conducts business with the central bank of Iran. A report earlier this week said Iran was exploring the idea of increasing imports from India to compensate for its export of oil.

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India trying to find ways to pay for Iran oil: RBI

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What Next for Taiwan’s Opposition?

What Next for Taiwan’s Opposition?

Agence France-Presse/Getty Images
Tsai Ing-wen, the presidential candidate of Taiwan’s opposition Democratic Progressive Party, waves to supporters at her campaign headquarters in New Taipei City on January 14, 2012 after losing her bid to challenge incumbent Ma Ying-jeou.

Taiwan’s opposition Democratic Progressive Party leader Tsai Ing-wen made history by being the island’s first female presidential candidate, but her wider-than-expected defeat last Saturday to incumbent Ma Ying-jeou of the Kuomintang has raised questions about the future of her moderate approach.

Ms. Tsai finished with 45.6% of the vote to Mr. Ma’s 51.6%, a loss that prompted her to say she would resign as DPP leader.

A professor before she became a politician, Ms. Tsai is often credited with lifting the pro-independence DPP out of the mire after former president Chen Shui-bian’s rocky and scandal-ridden tenure at the helm.

“She brings gentleness and sensibility to the party,” Joseph Wu, a former Taiwan envoy to the U.S. and a top advisor to the DPP, said shortly after the election. “She is also very capable in facilitating talks between the factions in the party and consolidating opinions.”

That conciliatory leadership style and approachable personality were what drove her surging popularity both within and outside the party, he added.

But Ms. Tsai also won support by dialing back the DPP’s pro-independence rhetoric, analysts said. An example of that more moderate China policy was her appeal for further dialogues with Beijing and her promise to accept all 16 cross-strait trade agreements signed under Mr. Ma’s leadership.

Although she adamantly rejected the 1992 Consensus—a tacit understanding between the KMT and the Chinese Communist Party that Taiwan and China are one country but each is free to define the term as they see fit—her proposal of a new “Taiwan Consensus” did not completely shut out the option of an eventual unification, a sharp detour from the policy pursued by Mr. Chen.

Despite that softening, Ms. Tsai’s candidacy still did not appear sit well with leaders in Beijing, who warned that any deviation from the 1992 Consensus would compromise the growing harmony on the Taiwan Strait. During the campaign, the “Taiwan Consensus” became one favorite points of attack for Mr. Ma and the KMT, who pointed to it as evidence that Ms. Tsai was naïve to the realities of cross-strait relations.

Yet some analysts said they expected Beijing might still be open to dialogue with a Tsai administration — a notion considered far-fetched during the previous DPP regime.

What effect Ms. Tsai’s loss will have on the party’s platform remains to be seen. The fact that she lost by six percentage points – late polls had her losing by between 3% and 5% — is already being interpreted by some as an indictment of her decision to emphasize social equality and her deviation from the party’s anti-China orthodoxy.

“Obviously, a campaign focused on social justice was not enough to excite the traditional DPP supporters,” said Wu, adding in the future, the party should incorporate more of the possible threats to Taiwan’s sovereignty under the KMT such as China’s continual interference in Taiwan’s quest for more international participation.

Shelley Rigger, a professor of political science at Davidson College expressed similar views, saying that while Ms. Tsai should be lauded for restoring burnishing the DPP’s image, she might have overlooked a key constituency – the “green” pro-independence die-hards—who might constrain the DPP from moving to the center.

“[Tsai] did as well as anyone could have done at pacifying the deep greens, by refusing to accept the ’92 consensus, and at the same time minimizing the role of those ideological issues in the elections, by trying not to talk about that anymore than she had to. The result was still hitting that 45% ceiling,” she said.

Ms. Tsai’s tenure as party leader will officially terminate on March 1, the DPP said, and it’s unclear what she plans to do next. She has said she plans to maintain an office and rumors suggest she may take the reins at a think tank she helped set up.

Analysts say Beijing is concerned less about Ms. Tsia’s future and more about who her successor might be and whether that person will continue the moderate stance she has championed.

“Beijing takes a great interest in the DPP’s leadership because there is always a chance that the DPP might return to power. But I think no matter who becomes the next DPP chairman, the party will retain the more moderate stance,” said Shih Cheng-feng, a dean at National Dong Hwa University.

Party heavyweights Frank Hsieh and Su Tseng-chang are widely speculated to be vying for the seat, though some political commentators on the island say the party should allow up-and-coming stars, such as some of the current DPP county magistrates, to have a shot.

Whether or not Ms. Tsai tries her luck again in 2016, her contribution to the DPP seems likely to be remembered as revolutionary, in a moderate way.

– Jenny W. Hsu

Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2009 stood as the second-largest economy in the world after the US, although in per capita terms the country is still lower middle-income.

In 2009, the global economic downturn reduced foreign demand for Chinese exports for the first time in many years.

The People’s Republic of China is the world’s second largest economy after the United States by both nominal GDP ($5 trillion in 2009) and by purchasing power parity ($8.77 trillion in 2009).

Available energy is insufficient to run at fully installed industrial capacity, and the transport system is inadequate to move sufficient quantities of such critical items as coal.

The two most important sectors of the economy have traditionally been agriculture and industry, which together employ more than 70 percent of the labor force and produce more than 60 percent of GDP.

A report by UBS in 2009 concluded that China has experienced total factor productivity growth of 4 per cent per year since 1990, one of the fastest improvements in world economic history.

The market-oriented reforms China has implemented over the past two decades have unleashed individual initiative and entrepreneurship, whilst retaining state domination of the economy.

China now ranks as the fifth largest global investor in outbound direct investment (ODI) with a total volume of $56.5 billion, compared to a ranking of 12th in 2008, the Ministry of Commerce said on Sunday.

In 2009, global ODI volume reached $1.1 trillion, and China contributed about 5.1 percent of the total.

China reiterated the nation’s goals for the next decade – increasing market share of pure-electric and plug-in electric autos, building world-competitive auto makers and parts manufacturers in the energy-efficient auto sector as well as raising fuel-efficiency to world levels.

In large part as a result of economic liberalization policies, the GDP quadrupled between 1978 and 1998, and foreign investment soared during the 1990s.

Even with these improvements, agriculture accounts for only 20% of the nation’s gross national product.

In terms of cash crops, China ranks first in cotton and tobacco and is an important producer of oilseeds, silk, tea, ramie, jute, hemp, sugarcane, and sugar beets.

Horses, donkeys, and mules are work animals in the north, while oxen and water buffalo are used for plowing chiefly in the south.

Coal is the most abundant mineral (China ranks first in coal production); high-quality, easily mined coal is found throughout the country, but especially in the north and northeast.

There are also deposits of vanadium, magnetite, copper, fluorite, nickel, asbestos, phosphate rock, pyrite, and sulfur.

China also has extensive hydroelectric energy potential, notably in Yunnan, W Sichuan, and E Tibet, although hydroelectric power accounts for only 5% of the country’s total energy production.

Other leading ports are rail termini, such as Lüshun (formerly Port Arthur, the port of Dalian), on the South Manchuria RR; and Qingdao, on the line from Jinan.

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What Next for Taiwan’s Opposition?

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Terrorism in Thailand: the Swedish connection

Terrorism in Thailand: the Swedish connection

hailand terror suspect married to Swede, believed to have used passport to aid HezbollahThai police led Atris Hussein, a 48 year-old Lebanese man with suspected links to a Hezbollah to search a commercial building in Samut Sakhon province, adjacent to the capital, where they discovered chemical substances which could be used in making explosives.

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Terrorism in Thailand: the Swedish connection

On the demand side, the importance of external demand can be fully appreciated by recognizing that the bulk of inventories in Thailand are primarily inputs and finished goods for the export-oriented manufacturing. In the fourth quarter of 2009, for example, net exports and the change in inventories contributed 44 percent of the quarterly growth.
The continuation of certain government policies, especially the pension to the elderly and free education should also support higher consumption levels for the poor. The longer-term goal of reducing reliance on external demand will take time, especially given political uncertainties that hinder the government’s ability to implement not only its investment program but also needed structural reforms.

Chinese investment funds, Middle Eastern petrodollars — there is a huge amount of new money being channeled into the Asian capital markets.
The 2009 market rally reflects the perception that valuations are about long-term potential, and that political crises in Thailand rarely have a dramatic impact on the fundamentals of the economy. If we look at the EV/EBITDA multiples of the oil and gas sector, for example, valuations are still low compared to regional peers : this is partly a reflection of regulatory risks and political instability in Thailand.

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China’s Stats Bureau in Odd Ownership Spat Over Important Index

China’s Stats Bureau in Odd Ownership Spat Over Important Index

European Pressphoto Agency

As if the reputation of China’s economic data wasn’t shaky enough already, an odd bureaucratic tug of war is casting new doubt on one of the country’s more closely watched indicators.

China’s official Purchasing Managers Index (PMI), a gauge of the nation’s manufacturing activity, has been jointly released by the National Bureau of Statistics and an industry association called the China Federation of Logistics and Purchasing (CFLP) since 2005. Now, however, each body is trying to claim the data for itself.

The dispute originated with a statement posted on the Bureau of Statistics website on January 6 (in Chinese) saying it was the bureau that conducted the manager surveys that underpin the index conducted by the bureau. According to the statement, the CFLP merely published the survey under the authorization of the bureau.

The statement also quoted Pan Jiancheng, deputy director of the bureau’s China Economic Monitoring & Analysis Center, as saying the bureau planned to integrate all economic climate surveys and publish them as a group because “whoever conducts the survey should be the one to publish it.”

Three days later, the federation said in a statement on its own website (in Chinese) that PMI would not be part of the official climate surveys to be published by the statistics bureau.

“Somebody from the Bureau of Statistics is unhappy that we are doing such a good job with the PMI and decided to get tricky,” Cai Jin, deputy director of the CFLP, told the Shanghai-based Oriental Morning Post this week (in Chinese). “This has very negative influence on China’s PMI data.”

CFLP said in its statement that it submitted a request to establish the index in 2004 and that the NBS said it supported the proposal but asked the federation can make use of bureau’s existing enterprise survey resources to avoid redundancy. “Our federation is responsible for the release, analysis and interpretation of the survey,” CFLP said in its statement, adding that it is common practice for independent organizations to publish PMI to ensure objectivity.

According to its website, the CLFP, which claims to have thousands of purchasing manager members, is the only purchasing industry association approved by the State Council, China’s cabinet.

In the days since the Bureau of Statistics published its statement, Mr. Cai said, financial institutions and news media have pelting the CLFP with questions, expressing concern that the bureau might manipulate PMI based on other macroeconomic data.

“That’s why we have to clear things out,” Oriental Morning Post quoted Mr. Cai as saying.

China’s Purchasing Managers Index rose to 50.3 in December compared with 49.0 in November, indicating an increase in manufacturing activity. The rise came after HSBC Holdings PLC’s survey of purchasing managers showed manufacturing activity contracting in December, though at a more moderate pace than in the previous month.

The HSBC PMI has showed contractions in manufacturing in all but one of the past six months, painting a significantly less optimistic picture than the Chinese government’s competing PMI. Analysts say the HSBC PMI has been weaker because it surveys more purchasing managers from smaller firms, which have had difficulty accessing loans from banks.

– Liyan Qi

Reforms started in the late 1970s with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, the foundation of a diversified banking system, the development of stock markets, the rapid growth of the non-state sector, and the opening to foreign trade and investment.

In 2009, the global economic downturn reduced foreign demand for Chinese exports for the first time in many years.

China is the world’s fastest-growing major economy, with an average growth rate of 10% for the past 30 years.

Available energy is insufficient to run at fully installed industrial capacity, and the transport system is inadequate to move sufficient quantities of such critical items as coal.

Agricultural output has been vulnerable to the effects of weather, while industry has been more directly influenced by the government.

China has acquired some highly sophisticated production facilities through trade and also has built a number of advanced engineering plants capable of manufacturing an increasing range of sophisticated equipment, including nuclear weapons and satellites, but most of its industrial output still comes from relatively ill-equipped factories.

China’s ongoing economic transformation has had a profound impact not only on China but on the world.

Both forums will start on Tuesday.

But “this is just a beginning.

It also aims to sell more than 15 million of the most fuel-efficient vehicles in the world each year by then.

Although China is still a developing country with a relatively low per capita income, it has experienced tremendous economic growth since the late 1970s.

Agriculture is by far the leading occupation, involving over 50% of the population, although extensive rough, high terrain and large arid areas – especially in the west and north – limit cultivation to only about 10% of the land surface.

Except for the oasis farming in Xinjiang and Qinghai, some irrigated areas in Inner Mongolia and Gansu, and sheltered valleys in Tibet, agricultural production is restricted to the east.

China ranks first in world production of red meat (including beef, veal, mutton, lamb, and pork).

Oil fields discovered in the 1960s and after made China a net exporter, and by the early 1990s, China was the world’s fifth-ranked oil producer.

China is among the world’s four top producers of antimony, magnesium, tin, tungsten, and zinc, and ranks second (after the United States) in the production of salt, sixth in gold, and eighth in lead ore.

China also has extensive hydroelectric energy potential, notably in Yunnan, W Sichuan, and E Tibet, although hydroelectric power accounts for only 5% of the country’s total energy production.

There are railroads to North Korea, Russia, Mongolia, and Vietnam, and road connections to Pakistan, India, Nepal, and Myanmar.

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Economic Life Slowly Returns to Indonesia’s Mount Merapi

Economic Life Slowly Returns to Indonesia’s Mount Merapi

For many, the foot of one of the most active volcanoes in the world is not considered as a desirable place to live. Yet, residents living near Mount Merapi in Indonesia have chosen to face the risks rather than to move further away from the mountain.

Tens of thousands of Indonesians typically live the slopes of the volcano, with agricultural activities being the economic backbone of these villages due to the rich volcanic soil.

However, residents near the mountain are prone to evacuations and a loss of their livelihood. A lethal eruption in November, 2010 claimed more than 200 lives and displaced about 278,000 people.

Government officials reported economic losses from the eruption will surpass $600 million (5.5 trillion Rupiah), due to the death of livestock and damage to the tourism, manufacturing and agricultural sectors.

More than a year has passed, but some areas leading toward Mount Merapi are still filled with half buried houses and burned trees set against a gray landscape of volcanic ash serve as grim reminders of the devastation.

But this has not deterred many from returning to their homes and starting economic activities almost immediately after the government declared volcanic activity had declined.

In Srunen, a village of 150 households in the Cangkringan district, villagers have already rebuilt their homes, made of concrete and bricks, signifying that they are here to stay.

Locals say Srunen is one of many small villages that face a high likelihood of being totally devastated by the next massive eruption.

They say the government has discouraged them from returning to Srunen . As an incentive, the Indonesian government has proposed providing more than $3,200 (30 million Rupiah) and a small plot of land elsewhere.

However, Jumilah, 39, a cattle farmer, said no one in the village took up the government’s offer because the compensation was too low. “At the mountainside, we have ample land for farming and cattle-rearing, as well as to build our homes,” he said. “Why should we settle for smaller plots of land?”

Jumilah, who lost five cattle and her home in the eruption, recently bought two cattle from the compensation she received. But it will take time before the cattle produces enough milk to be sold. To get by, she sells fruits at a roadside stall leading toward the volcano.

Jumilah said she once earned between $21 (200,000 Rupiah) and $38 (350,000 Rupiah) monthly from selling milk, but her income is even lower from selling fruits now, as she has to buy the produce from growers.

Dargo, 45, who was also a cattle farmer, said it is not unusual for the villagers to return to their devastated villages after an eruption. “This is our home. What is there to be afraid of? But, if we move, where will we go?”

However, not all residents have gotten to choose.

Yoto, 63, is still living in a makeshift camp after more than a year since the volcano erupted. She is among the thousands of villagers who are permanently displaced. During the 2010 eruption, her village of Glagahmalang was entirely buried in sand.

She said the camp is likely to be her home for the rest of her life. “The government has declared our village to be too dangerous to live in, and hence, all villagers are ordered to move to this campsite,” she said.

From owning two large houses and five cattle and land for farming, Yoto now lives in a two-room house measuring six meters by six meters in the campsite, and is dependent on donations for living. She is also uncertain of her future should the donations be depleted, which is expected to end this year.

Peering over the site where her village once stood, Yoto said despite the bleak outlook, she has since accepted her fate for living beneath the volcano. “I have lost everything, but I choose not to think about it, as it will make me even sadder,” she said.

Yet, Yoto’s fate does not deter the optimism of villagers who have chosen to return to their homes.

Indonesia, which is made up of 17,000 islands in Southeast Asia, has some of the world’s most active volcanoes, being situated in the Pacific Ring of Fire.

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Economic Life Slowly Returns to Indonesia’s Mount Merapi

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The Wukan Protests and the Rule of Law

The Wukan Protests and the Rule of Law

Associated Press

By Stanley Lubman

The recent Wukan protest has faded from the media, but one issue continues to percolate in its wake: the role of Chinese law, which some protesters invoked.

Two Chinese intellectuals have since spoken up about the need to strengthen the rule of law around property rights and, more importantly, about the need for a “paradigm shift” in the way officials think about rights and handle related disputes.

Some of the Wukan protesters were indeed conscious of their rights, as evidenced by one villager’s exclamation that “we must use the weapons provided by the legal system to fight corruption to the end.” Another protestor said he was confident that the central government would assist villagers who had lost land due to the corrupt actions of local officials because “the country is ruled by law.”

The protest was resolved, not by law, but by the administrative actions of provincial Party officials. It’s possible that the village officials responsible for the land transaction that sparked the protests will be accused of corruption, tried and punished, but even that legal process, if it occurs, would likely be a fait accompli following a prior Party decision on their punishment.

The protests nevertheless prompted some interesting commentary on Chinese legal issues, including from economist Hu Deping, the son of former CCP General Secretary Hu Yaobang.

In a commentary posted to a forum discussing a People Daily’s editorial on Wukan, Hu observes that rural land is often treated as if it belongs to the state rather than by collectives as provided by law — an erroneous conviction that helps justify forced demolitions. Disregard for rural collective rights, he writes, “is enough to change the character of reform.” In a single powerful sentence – all the more powerful because it comes from a princeling — he declares his hope “that the Wukan incident can push society into establishing a system that takes democracy and the rule of law as its foundation.” He ends with the hope that similar issues will be solved “using rule of law and negotiations.”

A lengthier and even more provocative commentary was posted to the same forum by Wu Si, editor of the party history magazine Yanhuang Chunqiu.

In analyzing the protests, Wu contrasts two “modes of thought” that appeared in Wukan. One was a hostile “us-versus-them” mentality that assumed a zero-sum conflict. Wu argues that such thinking is common in situations like Wukan’s owing in part to the failure of the courts, which are generally reluctant to take up cases involving land and “the political regime.” He notes that the Party Secretary of Shanwei, the prefectural city in which the village of Wukan is located, was ready to blame outsiders and the media for deepening the conflict.

Wu’s second “mode of thought,” which he proposes as an alternative approach to social conflict, is the ”civil rights mode of thinking,” or rule of law. This, he argues, should be the only basis for the government’s approach, and ought to lead to decision by an independent court without the government being “disturbed” by administrative agencies. He goes on to note that the provincial working group that eventually negotiated an end to the process promoted five principles for resolving the crisis, two of which were “total transparency” and “rule of law.” Wu argues the weakness of China’s courts makes the involvement of administrative working groups necessary. That, in turn, invites administrative interference. In the future, he writes, there must be “independent court rulings” and constitutional government.

Wu traces the “us-versus-them mentality” to the historical emphasis placed by the CCP on class warfare. He argues that shifting the emphasis to other CCP principles — serving the people and putting the people first — would expand political rights and economic freedom and lead to a prosperous society that would be “relatively stable” and “harmonious” as well. Wu concludes by urging the property rights must be clarified, village elections improved and laws enforced.

Wu offers no sure path to attain the goal he advocates, but his conclusion is most dramatic: “To solve problems with civil rights and the rule of law in mind, there must be a paradigm shift for cadres,” who need to change the way the way they “mediate crises.” In solving social conflicts, he writes, new ways of thought “will open a new road” for Chinese society.

Invocation of the rule of law has been a ritual for some years in China, but it is usually only activists and law reformers who are willing to suggest it is an entirely distinctive approach to ordering society. The call for a “paradigm” change in a party magazine suggests something more radical than the usual slogans and formulas.

Some Western observers, including this writer, have tried to incorporate into their analyses of Chinese law the idea of “legal culture” — the way people in a society, from top to bottom, think about where law comes from, its aims and its methods. That is what Wu Si touches on when he suggests that cadres rethink about how they address social conflict. He is proposing that in practice they consciously place a much greater reliance on law and on legal institutions, which could become “a force for reform” leading to “systemic changes.”

Wu also suggests that Guangdong and Shanwei might initiate reforms. In recent years, a number of important reforms have been initiated locally. Among them is the 2003 adoption in Guangzhou of an open government law, which preceded adoption of a similar law by the central government. Even more important was the adoption by Sichuan Province of China’s first provincial-level administrative procedure law in 2008, followed by Shandong’s adoption of a similar law that became effective on January 1, 2012. There is hope that these two laws will also eventually provide a model for reform of existing national legislation.

If thoughtful reflections like those discussed here inspire local reforms, the Wukan villagers will deserve credit for having struck a chord that could continue to resound.

Stanley Lubman, a long-time specialist on Chinese law, is a Distinguished Lecturer in Residence at the University of California, Berkeley, School of Law and is the author of “Bird in a Cage: Legal Reform in China After Mao,” (Stanford University Press, 1999).

China’s economy during the past 30 years has changed from a centrally planned system that was largely closed to international trade to a more market-oriented economy that has a rapidly growing private sector and is a major player in the global economy.

One demographic consequence of the “one child” policy is that China is now one of the most rapidly aging countries in the world.

The country’s per capita income was at $6,567 (IMF, 98th) in 2009.

The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978.

Its mineral resources are probably among the richest in the world but are only partially developed.

China has acquired some highly sophisticated production facilities through trade and also has built a number of advanced engineering plants capable of manufacturing an increasing range of sophisticated equipment, including nuclear weapons and satellites, but most of its industrial output still comes from relatively ill-equipped factories.

By the early 1990s these subsidies began to be eliminated, in large part due to China’s admission into the World Trade Organization (WTO) in 2001, which carried with it requirements for further economic liberalization and deregulation.

The growth in both outbound investment from, and inbound investment to, China reflects the nation’s rising economic power and attractiveness as an investment destination.

“China is now the fifth largest investing nation worldwide, and the largest among the developing nations,” said Shen Danyang, vice-director of the ministry’s press department.

China is aiming to be the world’s largest new energy vehicle market by 2020 with 5 million cars.

In large part as a result of economic liberalization policies, the GDP quadrupled between 1978 and 1998, and foreign investment soared during the 1990s.

Even with these improvements, agriculture accounts for only 20% of the nation’s gross national product.

In terms of cash crops, China ranks first in cotton and tobacco and is an important producer of oilseeds, silk, tea, ramie, jute, hemp, sugarcane, and sugar beets.

Sheep, cattle, and goats are the most common types of livestock.

Coal is the most abundant mineral (China ranks first in coal production); high-quality, easily mined coal is found throughout the country, but especially in the north and northeast.

China is among the world’s four top producers of antimony, magnesium, tin, tungsten, and zinc, and ranks second (after the United States) in the production of salt, sixth in gold, and eighth in lead ore.

China’s exploitation of its high-sulfur coal resources has resulted in massive pollution.

After the 1960s, the emphasis was on regional self-sufficiency, and many factories sprang up in rural areas.

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The Wukan Protests and the Rule of Law

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