Thursday, March 31, 2011

Most commonly use 100 Words in English

 100 words

China white paper highlights US military 'competition'


File image of a Chinese submarine, on 23 April 2009 China says military competition in the Asia-Pacific region remains fierce
China says the United States is increasing its military presence in the Asia-Pacific region, which is becoming more "volatile".
It also says there has been a rise in operations directed against China.
The views were made in China's National Defence white paper, issued by the government.
The paper outlines the country's current views on security issues and gives an overview of its military forces.
Fierce competition
In the document, released on Thursday, China gives a downbeat assessment of the regional security situation.
"Profound changes are taking shape in the Asia-Pacific strategic landscape. Relevant major powers are increasing their strategic investment," it says.
"International military competition remains fierce."
The document singles out the United States. According to China, it is reinforcing military alliances and getting more involved in regional affairs.
Beijing also says foreigners are now more suspicious of China - and have increased "interference and countering moves" against it.
Relations between China and the United States, particularly on military matters, have been strained over recent years.
That tension eased slightly following Chinese President Hu Jintao's state visit to the United States earlier this year.
But the potential for disagreement remains high.
"We admit that our military ties continue to face difficulties and challenges," said Colonel Geng Yansheng, spokesman for the Ministry of Defence, at a press conference to launch the white paper.
No issue threatens the relationship more that US support for Taiwan, a self-governing island off China's eastern coast that Beijing considers its own.
"The United States continues to sell weapons to Taiwan, severely impeding Sino-US relations," says the white paper.
Col Geng made it clear that the two countries must respect each other's core interests. For China, that includes Taiwan.
"China is willing to work with the US, based on respect, trust, equality and mutual benefits," he said.
The United States and some of China's neighbours occasionally express their concerns about the ultimate aim of Beijing's military modernisation.
But the white paper reiterates that no one has anything to fear.
It says China's armed forced, known as the People's Liberation Army, are there purely to defend the country.
China, it says, has a strategy of "attacking only after being attacked".
Graphic

Wednesday, March 30, 2011

China Tops global clean energy table

China tops global clean energy table


PV panel (Image: Reuters) Globally, solar energy enjoyed the "strongest growth" within the clean energy sector during 2010

Related Stories

China remains the world's leading investor in low-carbon energy technology, a global study has shown.
The table, published by the US Pew Environment Group, showed that the Chinese invested $54.4bn (£34.1bn) in 2010, up from $39.1bn in 2009.
While the US saw investment increase by 51% to $34bn, it still slipped from 2nd to 3rd in the ranking, behind Germany's $41.2bn.
However, the UK slipped outside the top 10 as investment fell by 70% in 2010.
Globally, the sector - which does not include nuclear power - attracted $243bn of investment, a 30% increase from 2009 and a whopping 630% rise since 2004.
The authors also said that 40 gigawatts (GW) of wind and 17GW of solar energy were installed during 2010, taking the global clean power capacity to 388GW.
The report Who's Winning the Clean Energy Race, using data compiled by Bloomberg New Energy Finance, examined the clean energy sector's investment and technological trends in the G20 leading economies.
"Looking at global trends, the solar sector experiences the strongest growth among the various technologies," observed Michael Liebreich, chief executive of Bloomberg New Energy Finance.
"Declining prices and generous government support in key countries helped the solar sector achieve 40% of total clean energy investment in 2010," he added.

Clean energy investment top 10

Wind turbine, China (Image: AP)
NationTotal ( in US$)
1. China54.4
2. Germany41.2
3. US34.0
4. Italy13.9
5. Rest of EU-2713.4
6. Brazil7.6
7. Canada5.6
8. Spain4.9
9. France4.0
10. India4.0
(13. UK3.3)
(Source: Pew Environment Group; Bloomberg)
The report outlined that as well as attracting the most investment, China was also the world's leading producer of wind turbines and solar energy units.
The authors also pointed out that the country in 2009 overtook the US as the nation with the most installed clean energy capacity.
In terms of year-on-year growth, Argentina topped the rankings as it saw investment grow by 568% in 2010 compared with 2009.
Regionally, Europe remained the largest recipient of investment, attracting $94.4bn of investment. Asia/Oceania was the second most attractive region for investors, securing $82.2bn.
Explaining the UK's slip in the rankings, Mr Liebreich suggested that it was a result of "policy uncertainty during a substantial part of the year".
In May, the UK general election resulted in a coalition government involving the Conservative Party and the Liberal Democrats. However, the deal was only struck after five days of intensive negotiations.
"With a new government in the UK, investors appear to be waiting on the sidelines until there is more certainty in the market," suggested Phyllis Cuttino, director of Pew's Clean Energy Program.
"Our research consistently demonstrates that strong policies attracts investments," she added.
"Nations like China, Germany and India, which all saw increases, were attractive to financiers because they have national policies that create long-term certainty for investors."
Looking ahead to this year, Mr Liebreich said that he expected to see a slowing in the growth rate of investment in clean energy, yet he did expect to see a marked increased in generation capacity.
"Another thing worth watching is new technologies coming through," he told reporters.
"There was a surge in venture and private equity investment during 2005-08; and those companies have been under the radar because of the (economic) crisis. But you are now starting to see companies that have survived the difficult years... establish some commercial scale in their activities."
He concluded by saying that there had been a number of "black swans rocking the energy sector", such as the unrest in Middle Eastern nations and the aftermath of the Magnitude 9.0 earthquake in Japan.
"These things do change the landscape for clean energy," Mr Leibreich said.
"It is hard to recall the last time that clean energy caused a catastrophe of any magnitude. As thoughts about risk pervades policymakers' and investors' thinking, you are likely to see another strand of support for the clean energy industry."

Sarkozy in China for G20

Sarkozy in China for G20 talks but yuan not on agenda

Chinese currency - the yuan China is accused of keeping its currency artificially undervalued

Related Stories

French President Nicolas Sarkozy will convene a meeting of some of the biggest names in world finance in Nanjing, China on Thursday.
The gathering will take place under the auspices of the G20 and will aim to smooth out global currency issues.
It is the first time China has hosted a G20 event.
But the country's leaders have played down its importance and say that one of the most controversial topics, its currency, will not be on the agenda.
Mr Sarkozy is the current G20 president and the only head of state to attend.
But other heavy hitters from the world of international finance will be there, including US Treasury Secretary Timothy Geithner, European Central Bank Governor Jean-Claude Trichet, UK Chancellor George Osborne and the head of the International Monetary Fund (IMF), Dominique Strauss-Kahn.

Start Quote

China will be sensitive to discussing the yuan, especially on its own ground”
End Quote Mitul Kotecha Credit Agricole
Yuan pressure
China has long been under pressure to allow its currency to strengthen, with many key trading partners claiming it is undervalued, giving the country an unfair advantage in international trade.
"China will be sensitive to discussing the yuan, especially on its own ground, but given what's happened in the world economy in the past few weeks, I think exchange rate complaints will be on the back burner," said Mitul Kotecha, global currency strategist at Credit Agricole.
The earthquake in Japan, the widening debt crisis in Europe and rising oil prices amid military action in Libya have all buffeted the global economy and are likely to be discussed during bilateral meetings on the sidelines of the event.
President Sarkozy will visit Japan after his China trip, becoming the first head of state to visit the country after the massive earthquake and tsunami earlier this month.
Ambitious agenda
The seminar's formal agenda is ambitious.
The first session is on the current state of the international monetary system and its shortcomings.
Volatile capital flows or "hot money" and global imbalances will also be addressed.

CURRENCY RESERVES

  • Foreign currency held by a government or a central bank
  • Used to pay foreign debt obligations or influence exchange rates
  • The dollar is viewed as the world's reserve currency as the vast majority of reserves are held in the US currency
Another topic will be the IMF's Special Drawing Rights (SDRs) and whether they could be used as a reserve currency.
China has suggested in the past that the SDR, which was created in 1969 as a unit of account and is based on basket of currencies, could be used more widely.
France had seen China as an ally in its quest to reform the international monetary system, which overwhelmingly relies on the dollar as the primary reserve currency.
But while China would like to see the dollar's dominance reduced, it has gone cold on many of the more ambitious proposals to create a new world currency order.
It is instead forging ahead with its own plans to make the still tightly controlled yuan a more international currency, including allowing it to be used to settle cross-border trade transactions.

Monday, March 28, 2011

BBC survey says people fear China's economic power

A BBC World Service survey has found that developed nations are increasingly fearful over China's economic power.
The survey was carried out by the international polling firm GlobeScan/PIPA among more than 28,000 people in 27 countries.
It revealed that the numbers of those who say that China becoming more powerful economically is a bad thing have increased substantially.
That economic success helped the Chinese energy giant Sinopec's profits to surge.
The company reported a jump in profits driven by an increase in domestic demand and rising oil prices.
Asia's biggest refiner by capacity said its net profit grew by 13.7% to 71.8bn yuan ($10.9bn; £6.8bn) last year.
Meanwhile, in Hong Kong, investors who lost money after the collapse of investment bank Lehman Brothers will be repaid by Hong Kong banks.
Sixteen banks have agreed to buy back financial instruments they sold to investors for up to 96.5% of their value.
Business headlines

Saturday, March 26, 2011

Travelling to China to Teach

If you're a US American or Canadian, Australian, British or European adult looking to travel or live in China for any length of time, read ahead and arm yourself with this knowledge, from packing your bags to dealing with the government.

1. Bring light clothes made from thin fabrics, and wash your laundry before you run out of clean clothes. Why? It's not the weather: although in many parts of China the weather is warm most of the year, it's a huge country, so look up the forecast for where you're going.

But even in winter, don't bring heavy canvas pants. Instead, pick light fabrics and a heavy coat, and layer smartly. It's easy to find washing machines for hire, but almost impossible to find a clothes dryer in most of China. So make certain to plan ahead, and wash your clothes a day early to allow for clothesline drying time!

2. Get your visa well in advance. Only a few areas in the US have their own Chinese consulates, and the turnaround time for visa paperwork by mail is typically long. There are visa expediting agencies - I used one - but they're expensive to use.

If you are traveling to China to work, rather than as a tourist, you'll want to make sure the papers from your employer are in order. Never go in on a tourist visa and expect to "get it changed" later - you'll end up needing to leave the country sooner than you planned!
3. While you're at it, get immunized. Typhoid and Hepatitis A shots are recommended for anyone who'll be in China longer than a couple of weeks.

  It's also good to protect yourself against Hepatitis B, though this is harder to contract. Hepatitis vaccinations are performed as a series, so if you're staying long and you don't do it ahead of time, you'll need a booster while you're abroad. If you need any injections while in China, make sure to watch as they unwrap a fresh needle and syringe.

Malaria will be a hazard only in certain places and in certain seasons. Mosquitoes can be put off by the use of repellant and in-room "mosquito incense".

4. Eat carefully - and eat the street food. It's great. This may sound odd, but the dodgy-looking street restaurants can sometimes be the safest, especially in Eastern and Northern China. The key is how thoroughly the food is cooked. If it's cooked in front of you, you can watch to see that everything's well done. Also watch for these signs of a safer outdoor hotspot: a line of locals buying their food there (meaning fast turnover, and fresher food), bowls that are either lined with disposable plastic or sanitized with boiling water, and plastic-wrapped disposable chopsticks.

It's easiest to get a stomachache in Southern China, or elsewhere in the summer, where the local weather conditions can make food hygiene difficult. Be extra cautious in hot weather.

5. BYOTP, and prepare to squat. The Chinese-style squat toilet is the greatest surprise to most foreigners, and even in large cities is often unavoidable. Your hotel is likely to have Western-style toilet seats, and so will any Starbucks, but even American fast food chains usually have ground-level fixtures where you will have to balance carefully while doing your business.

And, unless you've stopped into a KFC, you'll need a packet of tissue in your pocket. This is why every convenience store sells tissue packets!

6. Drink bottled water. Many restaurants will offer you boiled tap water: it's free of germs, but I found after a while that it gave me indigestion, probably due to bad sources and mineral or chemical contamination that isn't removed by boiling. Stick to bottled water, and make sure the seal on the cap isn't broken.



7. Bring aspirin and deodorant. Most of your basic toiletry needs will be served by a Chinese supermarket, but aspirin is hard to come by, and antiperspirant deodorant is as well. When you go to China, make sure


 you've stocked up on these Western essentials for the length of your stay. Tampons are another item that hasn't made a hit in the country yet, so if you need them, see that you have your supply.

8. Don't stress about the government. The last thing the Chinese government wants to do is offend any of the powerful, rich countries from which you're probably visiting. This isn't Soviet Russia; in fact, it's a wildly capitalistic place, with friendly opportunistic strangers trying to sell you goods at every street corner! The regime of the Chinese Communist Party may be oppressive, but it's growing less so. Nobody is going to disappear you, though if you do something blatantly illegal, you will probably be kicked out of the country, temporarily or permanently.

Just because you won't be shot for talking about politics, though, doesn't mean you should. The people around you may find it quite rude. Never bring up the three T's - Tibet, Taiwan or Tiananmen Square - except to someone you know very, very well.

In my many months of living in China, I did enter some conversations on these topics, but they were always started by locals, after we had taken time to build a little trust. Many locals will agree with their government's policies; a few will not; but the majority, in my experience, simply want to get on with their lives, and don't want to hear about politics at all. In all cases, be polite.

As a side note, internet access is restricted, around sensitive political topics but also around blogging and social networking sites. You can get around it easily enough by using a proxy, either a program like Tor or a website like Anonymouse. You won't get in trouble for this. However, avoid trying to bring in books promoting Tibet or Taiwan as independent countries, or religious tracts.

9. Watch your wallet and wear a money belt. As a tourist or expat, you're unlikely to suffer violent crime, but I had my camera plucked from my purse while navigating an underground street crossing in Shenzhen, an area infamous for pickpockets. Especially if you're white or dark-skinned and thus don't resemble a local, you'll be a target. Keep your hand on your possessions, and always keep your passport, credit cards, and the majority of your cash in your money belt under your clothes. And while you're at it, don't use those credit cards too much - especially in large cities, you never know who's going to copy down the number.

Also be careful of scammers. Anyone who comes up to you and offers a free or bargain tour - often these people will claim to be students, and sometimes it's true! - is probably trying to lead you into an overpriced shop, or a situation leading to theft. Avoid them with a polite but firm "bu yao xie xie" (pronounced boo yow shay shay): even if they have approached you in English, they'll only take no for an answer in Mandarin.

10. Expect stairs, and stares! You'll climb flights of stairs to get in and out of your hotel and across any major street, but you'll stay in shape. If you have limited mobility, however, stick to Shanghai or Beijing and find a reliable tour company.

As a foreigner in China, you'll attract lots of attention. Many people will say "hello" to you in the streets. Some of them are just gawking, but some are genuinely interested in talking with you. You'll make friends if you stay any length of time.

Despite all the challenges for a visitor, China can be a friendly, fascinating and remarkable place. I've gotten badly lost and found friends in the strangest situations. Look for young people if you're in need of help; they're most likely to speak English. Whenever I went awry, someone always came to my aid.

For more information, read the Wikitravel China travel guide, an article which I both used as a resource and worked on personally during the course of my stay.

Look for my follow-up article, on finding teaching jobs abroad, coming soon!










Thursday, March 24, 2011

China 'to overtake US and dominate trade by 2030'

construction of a new financial district A huge new business district being built near Tianjin is a sign of the extent of China's expansion

Global Economy China will overtake the US and dominate global trade by 2030, a leading accountancy firm says.

China's global trade is set to surge past the US' by 2030, according to a report by PricewaterhouseCoopers (PwC).
Currently, China's international trade is worth $2.21 trillion (£1.36tn), compared with the $2.66tn (£1.64tn) for the US.
China was confirmed as the world's second-biggest economy earlier this year, overtaking Japan.
According to the report by PwC, the coming years will see global trade undergo "fundamental change" as emerging economies such as China and India begin to "dominate the top sea and air freight routes".
Race to the top
PwC's findings are in line with the World Bank's prediction that China's economy will eclipse the US by 2030, if it can sustain its growth. Its chief economist Justin Lin said on Wednesday that, if China continued to grow at an annual rate of 8%, it would be twice the size of the US economy in 20 years. China is responsible for much of the world's production of material goods, helping to maintain the country's position as an economic superpower.
According to data by PwC, China is in a dominant position in terms of bilateral trade. It appeared in 17 of the top 25 bilateral trade pairings in 2009.
The country has used its huge labour force to cut the costs of production to maintain a competitive edge against other countries.China is the world's largest goods producer, with 19.8% of all manufactured products coming from the economic heavyweight.

Wednesday, March 23, 2011

China high-speed rail funds 'embezzled'

February 21, 2011 a high-speed train departs a railway station in Beijing China has ambitious plans for high-speed rail links across the country
Officials said 187m yuan ($28.5m; £17.5m) had been stolen by individuals and construction companies. The judicial authorities are investigating.
China's railways minister was sacked last month over corruption allegations.
Work on the high-speed rail link began in 2008 and is due to be completed in June - a year ahead of schedule.
The 1,318 km (820 mile) rail link is the centrepiece of China's rapid expansion of high-speed railways networks across the country.
It will be able to carry 80 million passengers a year - double the current capacity, and will cut travel time between the two cities from 10 hours to about four.
Fake invoices With its huge budget the project has attracted corruption - a pervasive problem in China, says the BBC's Martin Patience in Beijing.
"This year we will continue to focus on uncovering major violations of laws and regulations and economic crimes [in the project]," said Xu Aisheng, a senior official at the National Audit Office.
He said the embezzlement had been carried out by some construction companies and individuals.
Auditors also found evidence of improper bidding processes and the filing of fake invoices for accounting purposes, he said.
The revelations come just a month after the Railways Minister Liu Zhijun was fired for allegedly embezzling more than 800m yuan.
Mr Liu is alleged to have received huge bribes when handing out contracts for the new rail network.
He has not publicly commented on the allegations against him.

Tuesday, March 22, 2011

Yuan hits record level against the dollar

US Dollar v Chinese Yuan

Last Updated at 22 Mar 2011, 12:00 ET *Chart shows local time USD:CNY intraday chart
$1 buyschange%
6.5535 -
-0.01
-
-0.19
China's currency has risen to a record high against the dollar, in a sign that Beijing intends to use the currency to fight inflation.
There were official reports that China should let its currency appreciate more quickly to head off inflationary pressures from soaring oil prices.
Oil prices are close to two-year highs and Beijing is concerned that energy-hungry China is importing inflation.
This has led to complaints among the population about rising prices.
On Tuesday, the yuan traded in a range from 6.5552 - a record high - to 6.5596. The currency ended at 6.5561 versus the dollar.
The currency has now risen about 4.1% since June 2010 and 0.2% so far this week.

Monday, March 21, 2011

Is China blocking email through Google

Google said Monday the Chinese government is interfering with its email services in China, making it difficult for users to access its Gmail program, amid an intensified internet crackdown following widespread unrest in the Middle East.
"There is no technical issue on our side; we have checked extensively. This is a government blockage carefully designed to look like the problem is with Gmail," the company said in a brief statement.
China has some of the world's strictest internet controls and blocks many popular social media sites, including YouTube, Facebook and Twitter. The government intensified those efforts after pro-democracy protest erupted across the Middle East in January.
Around that time, anonymous calls for protesters to gather for a "Jasmine Revolution" in China triggered a crackdown by Chinese authorities, who stepped up web censorship and deployed huge numbers of police to planned protest sites. No protests happened.
A Google spokesperson said users in China, the world's most populous internet market, have reported having intermittent problems with the service since the end of January.
Problems include difficulty accessing the home page for Gmail and problems sending emails when logged into the service. The instant messaging function is often not working as well.
Google officials said the blocking appears to be more sophisticated than other problems experienced by users in the past because the disruption is not a complete block.
In addition, a March 11 blog post by Google about security said the company had "noticed some highly targetted and apparently politically motivated attacks against our users. We believe activists may have been a specific target." In the posting, Google declined to elaborate on which activists had been targetted or where the attacks had come from.
A company spokesperson refused to say if Google has raised the issue directly with Chinese government officials.
China's Foreign Ministry had no immediate comments on Google's accusation.
Google has had highly public run-ins with the Chinese government.
In January last year, Google announced that it would no longer co-operate with the government's requirement to censor search results for banned sites. It also complained about major attacks on its website by Chinese hackers, suggesting the government may have instigated the attacks.
Attacks were also mounted against email accounts by activists working on human rights in China at that time.
Google moved its Chinese-language search engine to Hong Kong, which operates under separate rules from the rest of mainland China.

Sunday, March 20, 2011

Clean water methods

Bejing's Hukou system of housing

Beijing will stick to its household registration, or hukou system, due to the current state of the booming population, the Beijing News reported on Tuesday.

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The permanent population in Beijing has increased by 500,000 every year during the recent times, Zhao Lei, vice director of Beijing municipal commission of development and reform told the paper. As an economic center, the capital has provided more job opportunities and higher wages, which is a main attraction for the population influx, he said.

However, frictions between the massive population and the environmental resources have become increasingly significant during these years, including traffic congestions, lack of medical service and education resources. Therefore, Beijing will improve its management of the population and keep the household registration system, the paper quoted Zhao as saying.
Zhao also told the paper that migrants in Beijing have long played a positive role in the capital's development.

New Tick Born Killer Virus in Hubei and Henan provinces

BEIJING - Chinese scientists have discovered a previously unknown virus carried by ticks which led to at least 36 deaths in six provinces by last September, according to the latest issue of the New England Journal of Medicine published Thursday.
The virus SFTSV (severe fever with thrombocytopenia syndrome bunyavirus) was recently discovered by scientists at the Chinese Center for Disease Control and Prevention (CDC).
People with the virus can experience fever and multiple organ failure.
The presence of the virus was confirmed in 171 patients from six provinces in China. It resulted in at least 36 deaths by September 2010.
CDC Director Wang Yu said between late March and mid-July 2009, symptoms of the infectious disease in humans were reported in rural areas of central Hubei and Henan provinces, but the cause of the symptoms were unknown then.
Major clinical symptoms included fever, thrombocytopenia, gastrointestinal symptoms, and leukocytopenia, and there was "an unusually high initial case fatality rate of 30 percent," Wang said.
Li Dexin, director of the CDC's virus institute, said farmers living in mountainous areas were most prone to tick bites which were prevalent between May and July.
The virus institute had conducted test on more than 600 shares of patients' blood serum, which showed that the SFTSV was the killer.

Saturday, March 19, 2011

Viewpoint: HK yuan trade



Chinese and Hong Kong flags outside hk stock exchange Renminbi denominated deposits are on the rise in Hong Kong
The Stock Exchange of Hong Kong is testing out its system for trading yuan-denominated securities on Saturday and Sunday.
If all goes as planned, it should pave the way for more listings. One expert tells us why that matters.
Hong Kong is full of Chinese money.
According to the special administrative region's de facto central bank, The Hong Kong Monetary Authority, deposits denominated in renminbi, or the yuan, have surged.In January 2011, they totalled 370.6bn ($56.4bn; £35.2bn), up sixfold from November 2009. That increase is down to Beijing slowly encouraging the liberalisation of a currency that has, in the past, remained pretty much isolated.
'Dim Sum' bonds
One of the main ways it has opened up the currency is through "dim sum" bonds, or yuan-denominated debt securities. Corporates and banks have issued about 36bn yuan's worth of these bonds in Hong Kong 2010.
At the same time, yuan-denominated bank deposits have also grown apace, as the currency is increasingly used to settle international trade transactions and is expected to appreciate against the US dollar by some 3% to 5% per annum over the next five years.
"The issue with the offshore deposits has always been what to spend that wall of money on”
But while more of China's currency has been flowing to Hong Kong, the issue with the offshore deposits has always been what to spend that wall of money on.Not least because the Chinese government has been concerned in particular that some of it might be repatriated to the mainland and fuel inflation, which currently is running at about 4.9% a year.
So, at present, holders of offshore yuan savings accounts can only deposit foreign currency, and enjoy the benefits of the foreign exchange appreciation of the yuan.
For current accounts, cheques can be issued in Hong Kong and to retailers in Guandong province on the mainland for consumer spending, but there are significant caps and limitations on the amount of renminbi that can be remitted to China.
Hence, the idea behind the sale of yuan-denominated securities in Hong Kong.
Man outside the Hong Kong stock exchange Issuers could sell about $10bn-worth of dim sum bonds this year
Trading simulation
Issuers are expected to sell some $10bn-worth of dim sum bonds this year, and the market is then likely to also extend to equities, with a proposed initial public offering (IPO).
Earlier this year, Cheung Kong Holdings, a Hong Kong-listed conglomerate controlled by Li Ka-shing, the territory's richest man who has been nicknamed "superman" by locals, was said to be working on an IPO denominated in renminbi.
The timing of the deal has not been publicly announced, although there has been speculation that it might come to market as early as the end of March 2011.

“These steps are modest and there is a still a long way ahead before Beijing fully floats its currency and opens up its capital markets”

The decision by the Stock Exchange of Hong Kong to do the trading simulation now would seem to indicate a reasonably close timetable for the launch of the transaction.But rather than sell simple shares worth billions of yuan, the company wants to do it via a real estate investment trust (or REIT).
A REIT enables a company to transfer to institutional and retail investors, through a stock exchange listing, its ownership of physical property, while receiving ongoing fees for the management of these real estate assets.
The idea behind the proposed sale of a REIT, rather than of a more a straightforward share listing, is that REITs pay a high dividend - so many investors will be encouraged to buy and hold the stock, rather than actively trade it.
It is hoped that by doing this, the market can get past one of its biggest stumbling blocks; a lack of liquidity that would stop an active offshore market from developing in renminbi equities.
Modest steps 

US Dollar v Chinese Yuan

Last Updated at 18 Mar 2011, 19:36 ET USD:CNY twelve month chart
$1 buyschange%
6.5704
0.00
0.00
As of early March 2011, only 60% of Hong Kong's brokers had opened yuan trading accounts, and the main worry is that the market for yuan IPOs in Hong Kong may end up mirroring that for China's "B" shares.
These are listed and traded by domestic investors in Shanghai and Shenzhen, but denominated in US and Hong Kong dollars respectively.
An active market failed to develop in B shares as there were few investors in the mainland with access to foreign currency.
Accordingly, Hong Kong's stock exchange unveiled earlier this month a facility to support trading in yuan-denominated securities.
The plan is that Chinese currency would be obtained from banks by the stock exchange, and provided in turn to brokers, who could then offer it to their clients.
Investors are currently restricted under Chinese regulations from exchanging more than 20,000 yuan per day.
These steps are modest and there is a still a long way ahead before Beijing fully floats its currency and opens up its capital markets.
But as the testing on the stock market in Hong Kong shows, there is no doubt that China will increasingly become a noted player on the global financial stage.

Friday, March 18, 2011

What you need to know before earning income abroad

TAX SEASONTax rules for Canadians abroad

Tax season 2011

Income earned abroad — whether it be in Chinese yen as above, euros or other foreign currencies is subject to taxes in the country where it is earned and in Canada if the worker is still a resident — although there are ways to avoid being taxed twice.Income earned abroad — whether it be in Chinese yen as above, euros or other foreign currencies is subject to taxes in the country where it is earned and in Canada if the worker is still a resident — although there are ways to avoid being taxed twice. (Eugene Hoshiko/Associated Press)

As more students and young adults take time out to indulge in longer-term international travel, income tax filing is probably the last thing they think about.
When weeks abroad stretch into months, however, picking up some extra income is often the best way to make ends meet. At that point, it pays to know the ins and outs of what types of income you need to report — and how — when filing tax returns.
If you don't pay attention, you could end up paying double taxes on income earned in foreign countries or simply end up mired in more paperwork than you need to be. Worse yet, you could get caught out for non-payment and be saddled with all the headaches that go with it.
How you manage your income reporting depends on the laws of the country you're working in, says Philippe Brideau, a spokesperson for the public affairs branch of the Canada Revenue Agency in Ottawa.

Ways to avoid double dipping

Scenarios can differ depending on your location, your tax status at home and the conditions of the treaty agreement, if any, the country has with Canada.
For example, your foreign income — even if it's a few hours a week serving coffee at a local café — may be taxed at source in that country. In all likelihood, you will also have to report that same income on your Canadian tax return because you are still a resident of Canada.
"In such a circumstance, the individual could be subject to tax in both countries on the same income," Brideau said.
However, there are provisions to help you avoid paying tax twice on the same income if you are earning income in a country that has a tax treaty with Canada.
For example, there may be a provision that will restrict or exempt you from income taxation in a given country, but you will still be required to report that income on your personal income tax return in Canada under the foreign-sourced income section.
In other cases where both countries retain the right to tax your income, you may be able to deduct foreign tax paid on your Canadian income tax form. (See sidebar.)
To avoid the risk of double taxation, Brideau advises individuals to consult the provisions of the treaty in question before they go abroad to make sure they know what to expect and what paperwork needs to be filled out in advance.

No one-size-fits-all approach

Pramen Prasad, managing partner with Toronto CA Solutions Inc., a business advisory services firm, says that when it comes to reporting foreign income, there isn't a one-size-fits-all approach.
"It's important to be aware of the tax implications of earning income worldwide," Prasad said. "But there are also different scenarios depending on your work/education status, what type of work visa you have, the jurisdiction you're in, etc."
There are some general rules of thumb that can provide the baseline for making the right filing decisions, he said.
"The first thing to look at is your present filing position," says Prasad. "The key issue is that taxation is based on residency, not citizenship. If you are not severing your residency ties with Canada while abroad, you are still considered a resident for taxation purposes and must prepare and file a Canadian tax return reporting all income earned."
In some cases, a person will break ties with Canada. This may apply if you are spending extensive time abroad and perhaps working in a "tax friendly" jurisdiction. Ties can be reinstated on your return.
This can be a major undertaking, however, since you have to ensure you don't have Canadian bank accounts or residence and that you have cancelled your health coverage. Cancelling your driver's licence is optional.
While it all seems like a lot to take in when you're caught up in the excitement of planning an extended trip abroad, staying ahead of the game is not as complicated as it sounds. It just means a bit of homework ahead of time, Prasad says.
"If someone is looking to study or work abroad, it pays to get some tax advice or do some web research," he said. "There is plenty of information out there."

China plane maker Comac targets global market

The C919 is expected to be 15% more fuel efficient than similar existing models.
Chinese plane maker Commercial Aircraft Corporation of China (Comac) is planning to take on established players such as Boeing and Airbus as it targets the global aircraft market.
The company is expecting orders from international clients to start arriving as early as this year, its general manager Chen Jin told the BBC.
Comac is promoting its narrow-body C919 jet at the Hong Kong airshow.
It is due to have its first flight in 2014 and enter service two years later.
Regional growth
US and Europe have traditionally been the biggest air travel markets in the world.
It is no surprise then, that US and European plane manufacturers are among the biggest players in the industry.
But as the air travel industry in the Asia-Pacific region grows, the situation could change.
 “Over the next 20 years, for the Chinese market alone, we are forecasting an increase of 2,900 aircraft” Chen Jin Comac
Passenger numbers in the region are forecast to grow by 5.8% in the next two decades, according to Airbus, which will mean growing demand for planes to carry them.
Airbus estimates that Asia will account for 33% of all aircraft orders in the next two decades, compared with a 26% share between 1990 and 2009.
Domestic demand
While it harbours international ambitions, Comac is fully aware of the potential for growth on its home turf.
China is forecast to be the fastest-growing market for air travel by 2014, according to the International Air Transport Association.
Mr Chen told the BBC that the company had very clear priorities.
"We are going to serve the China market first," Mr Chen said. "Over the next 20 years, for the Chinese market alone, we are forecasting an increase of 2,900 aircraft," he added.
Comac's first customers have been the main Chinese carriers.
Last year, it announced that Air China, China Eastern Airlines, China Southern Airlines and Hainan Airlines were the among six companies that had signed deals to buy the C919 planes.
The company said it had received orders for 100 aircraft.

Thursday, March 17, 2011

China slows nuclear power plant programme

BEIJING — China, the world’s leader in construction of new nuclear power plants, announced that it was suspending new plant approvals until it could strengthen safety standards. It also announced stepped-up inspections at its existing plants.
China plans to add more than 25 reactors, but most are already under construction, and it was unclear how many would be affected by the new order.
The announcement came after Premier Wen Jiabao discussed Japan’s nuclear crisis with the State Council, a body roughly equivalent to the White House cabinet.
“We must fully grasp the importance and urgency of nuclear safety, and development of nuclear power must make safety the top priority,” the government said on its Web site. “Any hazards must be thoroughly dealt with, and those that do not conform to safety standards must immediately cease construction."
The government also said that levels of radiation remained normal in China and that experts had concluded that the wind would scatter the radiation from Japan’s stricken Daiichi nuclear complex to the east over the Pacific Ocean, away from China. “This will not affect the health of our public,” the statement said. Officials have portrayed nuclear energy as a way for the nation to reduce its reliance on coal and cut its carbon dioxide emissions while at the same time meeting its surging demands for electricity. The country has never had a serious nuclear accident, though the speed of its construction program has raised safety concerns.  
International experts complained in 2009 that China was short on nuclear inspectors, a problem the government pledged to remedy by quintupling the number of staff at its safety agency by the end of that year.
Also in 2009, the government-appointed head of China National Nuclear Corp., which overseas China’s nuclear program, was detained because of allegations of bid-rigging in nuclear power construction contracts. That scandal raised fears that contractors were being allowed to cut corners and evade safety standards. 
Some specialists also worried that China was building plants too close to urban areas or earthquake fault lines. In late February, just a few weeks before the crisis at Japan’s Daiichi nuclear complex began to unfold,  the Ministry of Environmental Protection announced new regulations prohibiting the construction near earthquake zones or major cities. 
As recently as Saturday, before the gravity of the nuclear disaster in Japan was clear, a top Chinese official restated China’s commitment to nuclear power.
“Some lessons we learn from Japan will be considered in the making of China’s nuclear power plans,” Zhang Lijun, vice minister of Environmental Protection, said then. “But China will not change its determination and plan for developing nuclear power.”
He also said that China uses a more modern design for its plants than Japan’s stricken reactors.

Wednesday, March 16, 2011

Saving Money on a Trip to Asia

PLANNING a trip to Asia this year? Better get booking.
Victo Ngai
International tourist arrivals to the region increased 11 percent in 2010, according to the Pacific Asia Travel Association. And tour operators that cater to United States travelers say bookings this year are already well ahead of last year.
“Our most popular 14-day tour of China already has more passengers booked to travel in 2011 than the entire 2010 season,” Marty Seslow, vice president for sales and marketing at Gate 1 Travel, based in Fort Washington, Pa., said a few weeks ago.
That means bargains will be harder to come by for travelers who are only now planning vacations. Rising jet fuel costs aren’t helping matters. And stronger Asian currencies, from the Taiwan dollar (up about 8 percent against the dollar compared with a year ago, according to Travelex, a currency exchange company) to the Malaysian ringgit (up roughly 11 percent), means Americans have less buying power. (One exception is Vietnam — where United States travelers are getting about 12 percent more for the dollar than a year ago.) But it’s still possible to save on your Asian vacation if you plan carefully.
Getting There
One of the biggest expenses of any trip to Asia, whether a whirlwind tour of China or a beach holiday in Bali, is simply getting there. During high season, flights from the United States can cost $1,600 or more round trip, and that’s in coach. Discounts, offered sporadically, aren’t as deep as they were a few years ago. George Hobica, founder of Airfarewatchdog.com, which scours the Web for airfare bargains, noted a recent discount — flights to Korea and Japan on American Airlines for $700 round trip, including tax. “In past years, we saw fares for half that amount,” he said. His advice: “Sign up for frequent flier programs, and airline e-mails, even if you won’t really be doing it for the miles.” Asian airlines often reserve their best fares for their own Web sites, he said, noting that Singapore Airlines recently slashed fares by $300 to $400 on more than two dozen routes — a sale it disclosed first to AirfareWatchdog and via e-mail to its frequent flier members.
If you have a stockpile of frequent flier miles on an airline that doesn’t fly to your Asian destination, you still may be able to use those miles, thanks to airline alliances. For example, American Airlines does not fly to Hong Kong, but Cathay Pacific, a OneWorld alliance member, which has a code-share agreement with American Airlines, does and accepts American miles.
Jetting Around Asia
Once in Asia, use budget airlines like AirAsia or Tiger Airways to jet around. “They have ridiculously low fares,” said Stephanie Trzaska, an American expatriate who has been living in Asia for the last four years, including in Tokyo, Hong Kong and Singapore. She recently paid $226 total for round-trip flights on Tiger Airways from Singapore to Kuala Lumpur, Malaysia, for herself; her husband, Will Karlin; and their 1-year-old-daughter, Lena. The same flight on a mainstream airline, she said, would have been at least double that amount.
She added that Zuji.com, Travelocity’s Singapore-based affiliate, can be helpful when searching for budget carriers. But be sure to check the airline site directly before you book in case the fare is lower on the carrier’s site.
Many Asia-bound travelers have several destinations on their itineraries. If you fall into this category, consider an air pass. Cathay Pacific, OneWorld, SkyTeam and Star Alliance are among the airlines and alliances that offer passes, which allow travelers to fly to multiple cities within a country or region, often for hundreds of dollars less than if you bought individual tickets. But read the fine print since the tickets often come with booking restrictions and hefty change fees.
One with fewer restrictions, said Simone Farbus, air travel manager at Asia Transpacific Journeys, is the Discover Asia Airpass, operated by SilkAir, a subsidiary of Singapore Airlines, which offers flights between 22 Asian destinations, ranging from $145 to $345 per segment. “There are no minimum or maximum restrictions on the amount of coupons or segments, and there’s also no minimum stay requirement,” she said. “We also like the fact that if circumstances change and the client has to cancel or change their ticket it will only cost $25.” One drawback: because the air pass uses Singapore as a hub, travelers who want to fly to, say, Siem Reap in Cambodia from Yangon, in Myanmar, must first fly to Singapore. But that additional flight can shave a lot off your costs. A trip in late April along that route starts at $980 when using the air pass, versus $2,885 if booked as individual tickets, Ms. Farbus said.
One air pass that doesn’t require backtracking is the Discovery Airpass, operated in a joint venture by Bangkok Airways, Lao Airlines and Berjaya Air, with flights between Thailand, Cambodia and Laos and many of the small island resorts in the region. Flights between countries are typically $120 per segment, according to Ms. Farbus, and domestic flights range from $65 to $113.
Hotels
Agoda.com, which was purchased by Priceline in 2007, is a good place to begin your search. It offers deals at more than 10,000 hotels in the Asia-Pacific sphere, including specially negotiated last-minute rates that can offer savings. For example, a “family” room, which comes with a double and a single bed, at the Yeng Keng Hotel, a 20-room boutique hotel in the City of George Town in Penang, Malaysia, was offered for $118 in mid-March on Agoda versus the promotional rate of 380 ringgit, or about $125, listed on the hotel’s own site.
You can also bid for hotels in major Asian cities on Priceline.com.hk, choosing trip dates, hotel star rating and the general neighborhood you wish to stay in, and then naming your own price — just as you do on the United States site but this time in Hong Kong dollars. As on Priceline’s United States hotel site, you learn the name of the hotel after you pay.
Packages that combine air and hotel are another way to save. For example, Singapore Airlines Vacations’ Amazing 5 Nights Bali Package offers five nights at the Nusa Dua Beach Hotel, round-trip flights from Los Angeles for two, airport transfers and daily breakfast for $3,028, including taxes, in early May. If booked separately, five nights at the Nusa Dua Beach Hotel ($640) and the airfare for two ($3,068) came to $3,708 for the same trip.
You’ll get the best rates in the off-season, of course, but there are tradeoffs. You can have the Forbidden City practically to yourself in Beijing in December, but you’ll have to bundle up, with daytime temperatures hovering around freezing.
The so-called shoulder season offers something of a sweet spot for travelers looking for deals. For example, the 10-day Taste of China Tour offered by Friendly Planet Travel based in Jenkintown, Pa., costs $1,649 during peak summer season. But travelers who go in April, when the weather is milder, pay $1,399. “All the components for the various prices are the same,” said Peggy Goldman, president of Friendly Planet Travel. “The only thing that changes is the departure date.”

Tuesday, March 15, 2011

China overtakes UK in art market

China overtakes UK in art market league

China has overtaken the UK as a global art market for the first time, a report suggests.
The UK was knocked from second spot to third place as a global market for antiques and arts, according to The European Fine Art Foundation.
The US continued to dominate the market in 2010, with a global share of 37%.
China's share is 23%. The UK's is 22%. The British Art Market Federation - which represents many UK dealers - said the figures made "alarming reading".
The UK remains Europe's biggest market, followed by France.
"The period from 2008 through 2010 has been one of crisis and recovery for the market for art and antiques," the report said.
The report also shows that an EU art tax due to be extended in the UK, Ireland, the Netherlands and Austria next year risks further damaging those markets by encouraging vendors to sell elsewhere

Monday, March 14, 2011

China asks New Zealand for higher compensation for their lost students

NZ quake: China wants higher payments as Inquiry opens

Japan Disaster Relief Team observes a moment of silence near at the collapsed CTV building in Christchurch, New Zealand, Sunday, March 6, 2011 This Japanese relief team helped find the dead in the CTV building in Christchurch

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The Chinese embassy in New Zealand has requested that extra compensation be paid to parents of Chinese students lost in the Christchurch earthquake.
An embassy official, Cheng Lee, said China's one-child policy made those lost lives more valuable.
More than 60 foreign students died out of a total toll of at least 166 people.
The New Zealand government has opened a Royal Commission of Inquiry into how entire office blocks collapsed in the 22 February quake.
Prime Minister John Key said the inquiry would focus on why two buildings - the CTV and Pyne Gould office blocks - failed to withstand the magnitude 6.3 earthquake.
"So many lives have been lost as a result of the February 22 earthquake that we must find answers, particularly about why such a significant loss of life occurred in two buildings," Mr Key said in a statement.
Fair treatment
Seven Chinese nationals have been confirmed dead and another 20 remain missing. They were among more than 60 staff and foreign language students killed in the CTV building.
The King's Education language school has held a memorial to remember all the dead.
Both the Chinese ambassador Xu Jianguo and embassy officials were reported by Radio New Zealand to have asked for higher compensation payments because the one-child policy made China unique.
"You can expect how lonely, how desperate they are, not only losing loved ones, but losing almost entirely their source of economic assistance after retirement," embassy official Cheng Lee said.
Higher payments would be "a demonstration of the importance the New Zealand government attaches to the Chinese international" students, he added.
Rail line buckled by an earthquake in Christchurch on February 23, 2011. The impact of the Christchurch quake is still visible
New Zealand's minister for tertiary education, Steven Joyce, said it would be difficult under New Zealand law to provide special compensation to one group of victims.
The opposition Labour Party leader Phil Goff said all the dead must be treated equally.
"I'm sorry, you can't base your policy on that, there may be many students here that are only children in their families whether they be Chinese, Japanese, Thai, Filipino," Mr Goff said.
The families of visitors killed in New Zealand are eligible for a one-off funeral grant of up to NZ$4,500 (£2,071;$3,327) and a one-off survival grant of $4,700 (£2,163;$3,473) for a spouse and $2,351 (£1,082; $1,737) per child or dependent.
Meanwhile, more than 70 owners of businesses in the city centre were allowed into the central devastated zone of Christchurch for three hours on Monday, to salvage what they could.
Some business owners said they hoped to retrieve hard disks that would enable them to continue operating from other locations.
The number of names of the dead released so far is 117.
Quake recovery is expected to cost the country at least NZ$15bn ($11bn; £7bn).