miércoles, 8 de mayo de 2013

China fears a US/EU free trade area could become protectionist; looks to Latinamerica

China has raised concerns about European Union plans to negotiate an ambitious free trade deal with the United States, fearing it is a protectionist move and at the same time Beijing new administration is doubling efforts towards Latinamerica and Africa.


Chinese officials queried EU foreign policy chief Catherine Ashton about the issue when she visited Beijing at the end of April for talks with Foreign Minister Wang Yi and other Chinese leaders.
The 27-nation EU and the United States aim to launch negotiations on a transatlantic free trade deal by the end of June, with discussions set to last at least two years.
China worried about whether the plan was “a pulling of the wagons into a circle to ... insulate the transatlantic economy from the rest of the world or is it, as we argue, even greater opening of both economies?” the EU official said, briefing journalists on condition he was not further identified.
The EU argues that a deal would strongly benefit the United States and the EU but other countries would also profit from the expansion of trade and investment across the Atlantic. “That was the reassurance we gave to the Chinese,” the official said.
The European Union is China's biggest trading partner.
Chinese officials raised the possibility of Beijing negotiating its own free trade agreement with the EU, a prospect that the EU official did not rule out “in the medium to longer term.”
A transatlantic trade deal could add 0.5 and 0.4% respectively to European and US GDP, according to a European Commission report, although it could take a decade to deliver those effects.
Meantime it was announced that China’s recently nominated Vice-president Li Yuanchao begins this week a nine-day tour of Latinamerica, his first overseas trip which includes Argentina and Venezuela where he will be meeting with his peers Amado Boudou and Jorge Arreaza.
It is also the first trip to Latinamerica of a high ranking official since the new administration of China was inaugurated last March, although President Xi Jinping has already held meetings with Mexico’s Enrique Peña Nieto and Peru’s Ollanta Humala during the recent Boao forum last April in China.
Uruguayan president Jose Mujica is also scheduled to visit Beijing next May 25/28, highlighting the significance that Latinamerica has for China.
The Chinese government considers Latinamerica and Africa as its investment priorities as well as an increasing alternative for its exports given the fall of its sales to traditional markets such as the European Union, Japan and United States.

Foreign minister Wang Yi queried EU Catherine Ashton on the plans (Photo AFP)

martes, 7 de mayo de 2013

Russia's foreign policy: Balancing at the backdrop of U.S.-China rivalry


May 3, 2013 Alexey Dolinskiy, special to RBTH
Russia will be able to play a crucial role in the world political architecture provided it clearly defines its policy in the region.


China’s publication of a national Defense White paper in April finished a series of major foreign policy and defense announcements in the first four months of 2013. It followed the U.S. State of the Union address that took place in February and the same month publication of Russia’s new foreign policy concept.
Increased economic, political and, potentially, military competition in the Asia Pacific is becoming a core of global politics. Russia can play a critical role in the world political architecture if it successfully defines its policy in the region.
China’s tremendous economic growth in past decades has long become a conventional part of global agenda.
If current trends continue, the world’s most populous country and the largest exporter is on a fast track to becoming the world’s largest importer next year, the largest economy in terms of GDP in few years and the largest consumer market by 2020.
However, Beijing’s April 2013 announcement that it will continue developing armed forces "commensurate with China's international standing and meet the needs of its security and development interests" attracted a lot of international attention.
Russian international affairs experts and practitioners once again started reconsidering the role of Moscow in the new global power structure centered around Sino-American competition that is expected to last for decades.
In 2010, the U.S. released a Quadrennial Defense Review Report that starts with a description of a changing global situation by admitting China’s rise.
“China is developing and fielding large numbers of advanced medium-range ballistic and cruise missiles, new attack submarines equipped with advanced weapons, increasingly capable long-range air defense systems, electronic warfare and computer network attack capabilities, advanced fighter aircraft, and counter-space systems,” says the report.
Russia has a more considerate view of China’s increasing its military power.
According to the Deputy Head of the Institute of Contemporary International Studies at Russia’s Diplomatic Academy Ivan Safranchuk, “the most likely conflict China may have is a conflict involving U.S. allies and U.S. weapons – that is the reality China lives in. Of course they have to think how to be prepared for it”.
Since publication of a 2010 Quadrennial Defense Review Report, the United States has been reviving relations with allies to balance already existing and potential power of China.
The U.S. network of alliances in the Northern Hemisphere is based on two major pillars: NATO in the Atlantic and bilateral security arrangements with several countries and territories in the Asia Pacific including Japan, South Korea, Taiwan and the Philippines.
Moscow has not been part of a military alliance with the U.S. since World War II, however, it is also reluctant to join security agreements with other great powers.
Russia’s foreign policy concept shows that it envisions itself as an independent pole of power in the multipolar world being equally a member of G8 together with Western powers as well both BRICS and SCO together with China.
According to the Program Director of the Russian Council for International Affairs Ivan Timofeev, “Russia is not interested in joining any of the sides in the U.S.-China competition and it probably won’t unless it is forced to.
Moscow cannot risk its economic ties and good neighborly relations with China by joining Japan and South Korea in an alliance but it is also not going to become China’s junior partner”.
Obama’s administration focused on establishing a network of economic alliances similar to existing security arrangements. A Trans-Pacific Partnership (TPP) is a free trade agreement promoted by the U.S. in the Asia Pacific Region.
During the U.S. presidency in the Asia Pacific Economic Cooperation forum in 2011, it became one of the national foreign policy priorities.
According to a research fellow in the International Security Program at the Belfer Center, Harvard Kennedy School Key Koga, “using TPP, the United States aims at creating certain global economic rules in the region and beyond”.
In the State of the Union address in February 2013, President Obama announced talks on “comprehensive Transatlantic Trade and Investment Partnership with the European Union” to complement the future U.S.-centered free trade zone in the Asia Pacific.
TPP talks are widely seen an alternative to China’s ASEAN+6 integration project that is aimed at fostering its economic development.
“China has been participating in several multilateral fora in East Asia since the 1990s, such as the ASEAN Regional Forum (ARF), ASEAN+3, ASEAN+1, East Asia Summit, ASEAN Defense Ministers Meeting, etc. Their aims are both to increase China's balance of influence vis-a-vis the United States, and to accommodate/reassure those states which might be threatened by China's rise,” says Dr. Koga.
“Russia is not consistent about its East Asia policy. Even though Russia says that it is taking its "rebalancing" or "pivot" policy, it is not clear to what extent Russia can maintain such a policy as the United States.”
Russia has been mildly supporting ASEAN+6 format against TPP although it is not eager to participate fully in either of them.
According to the Director of ASEAN Center at Moscow State University for International Relations Victor Sumsky, “there are no clear benefits for Russia in supporting TPP while negative aspects, including unnecessary complications in the relations with China, are quite obvious”.
Safranchuk agrees that it is too early for Russia to consider taking sides in economic alliances.
“There are many possible options yet beyond those that are on the table. For example, there is a possibility that there will be no agreement on the Transatlantic Partnership as Europeans very well understand that natural gas price in the U.S. is 2-3 times lower than in the EU creating a competitive advantage to US companies”.
Balancing partners, policy and regional priorities in Russian foreign policy is often seen as lack of commitment.
Yet, in the case of the Asia Pacific and global strategy, certain ambivalence may be a productive approach as overall it slows cold-war style coalition building in the region. According to Sumsky, “for its economic development Russia is interested in an evolving status quo, not radical changes in the region”.
Being a smaller economic and conventional military power than the U.S. and China, Russia can still be an important player if it utilizes its soft power potential in the Asia Pacific to be a smart power.






Military and Security Developments Involving the People’s Republic of China 2013


Annual Report to Congress:

A Report to Congress Pursuant to the National Defense Authorization Act for
Fiscal Year 2000
Section 1246, “Annual Report on Military and Security Developments Involving the People’s Republic of
China,” of the National Defense Authorization Act for Fiscal Year 2010, Public Law 111-84, which amends
the National Defense Authorization Act for Fiscal Year 2000, Section 1202, Public Law 106-65, provides that
the Secretary of Defense shall submit a report “in both classified and unclassified form, on military and
security developments involving the People’s Republic of China. The report shall address the current and
probable future course of military-technological development of the People’s Liberation Army and the tenets
and probable development of Chinese security strategy and military strategy, and of the military organizations
and operational concepts supporting such development over the next 20 years. The report shall also address
U.S.-China engagement and cooperation on security matters during the period covered by the report,
including through U.S.-China military-to-military contacts, and the U.S. strategy for such engagement and
cooperation in the future.”



http://www.defense.gov/pubs/2013_China_Report_FINAL.pdf?utm_content=buffera9f38&utm_source=buffer&utm_medium=twitter&utm_campaign=Buffer

China's rental power could save British art galleries


An exhibition of art treasures from Bury, Bolton and other northern English towns has become a success in China. Could booming foreign nations offer cash-strapped British galleries a route out of financial crisis?

When Bury paper tycoon Thomas Wrigley amassed a collection of 200 artworks during the Industrial Revolution, England was known as the "workshop of the world".

Bury Art Museum opened in 1901 to house Wrigley's fine collection.

But the industrial boom is now long gone. Like others across the country, the council-run gallery has faced the prospect of funding cuts.

China is now the "workshop of the world".

Industrial barons
So the jewel in Wrigley's collection, JMW Turner's sublime Calais Sands, has been dispatched, along with around 80 other artworks from Bury and 18 other north-west galleries, on a money-spinning six-city tour of China.

The venture was put together by Bury Art Museum manager Tony Trehy, who saw that art collected by industrial barons across the North West of England could be a big draw overseas.


He corralled other galleries to put their "greatest hits" together and head east.

"Put it this way," Mr Trehy says. "It's sufficiently lucrative that people have stopped talking about cutting us."

The exhibition is titled Toward Modernity: Three Centuries of British Art. As well as the Turner, it includes works by Constable, Lowry, Henry Moore and Lucian Freud, culled from collections in Chester, Carlisle, Salford and Stalybridge.

Chinese galleries pay to host the exhibition, which Mr Trehy is now hoping to take to other countries, and which could provide the template for further themed exhibitions.

"Assuming we can do it on a regular basis, it becomes a significant new source of funding for museums," he says.

Uproar over Lowry
While local council cuts are forcing some galleries and museums to reduce staff and opening hours, Mr Trehy believes income from foreign tours could eventually entirely replace public funding for some such institutions.

"If you've got the right works, if you've inherited the right artists from the Victorians or whoever, it is a licence to print money basically," he says.

"We're in negotiation with various museums in Japan and Taiwan, we're just about to start looking at making proposals to the Americans. I've had meetings in the Gulf about working with Emirates museums, but they're only exploratory meetings.


"The British Council are now talking about Brazil for the future because of the World Cup and Olympics."

Bury Council caused uproar in the art world in 2006 when it sold an LS Lowry painting to plug a budget deficit. The idea of taking a picture on tour is that "rather than sell it, we can essentially rent it", Mr Trehy says.

Foreign touring exhibitions are nothing new, but he says this is the first time it has been done by a consortium of regional British museums rather than a national institution with an established global brand, such as the Tate, British Museum or V&A.

"I think economic circumstances have made us more efficient and entrepreneurial," says Emma Varnam, head of culture for Tameside Council, which has contributed four works to Toward Modernity.

She runs the Astley Cheetham Art Gallery in Stalybridge, which was built in 1901 to house the collection of cotton mill heir John Frederick Cheetham. The gallery is a member of the new Greater Manchester Museums Group.




"China is building museums every week, major things, they're huge”
David ElliottBritish Council
http://www.bbc.co.uk/news/entertainment-arts-22387987


Why China seeks better relations with India


On Sunday, India and China began pulling back troops from disputed territory near their ill-defined border in the Ladakh region of the Himalayas after a stand-off lasting nearly a month. Senior Indian journalist Subir Bhaumik, who was travelling in China last week, reports on the mood in the country.

China has much more to do with India than fight over a de facto border where, as former Indian Prime Minister Jawaharlal Nehru had said, "not a blade of grass grows".

"We have a problem with the border, no denying it. But we want it solved. That may take a while, but we do not want our relations to suffer," says Kong Can, chief of the Development Research Centre in China's south-western Yunnan province and a senior Communist party official.

Kong Can wants border trade with India to flourish, the way it has with some of China's other neighbours.

China is already one of India's top trading partners: the two sides have agreed a new $100bn (£65bn) bilateral trade target for 2015, up from over $66bn in 2012.

"The volume of trade will go up further if we can develop border trade," said Kong Can.

'Huge trading bloc'
With more than a third of the world's population living in India and China, the two countries can be "one huge trading bloc", says Li Zhu of the Yunnan University of Finance and Economics.

Yunnan is China's gateway province, crucial to its strategy to forge close trade and cultural ties with neighbouring countries in south-east and South Asia.


Yunnan is hoping for Indian investments
"From Yunnan we are developing a whole network of highways, rail links and waterways to Vietnam, Laos, Thailand and Burma," said Kong Can's colleague, Yang Ye.

He said China was also keen on reopening the old Stillwell Road, through which the allies used to send supplies to China during WWII.

The road begins in India's tea-producing state of Assam. It passes through the dense forests of the neighbouring state of Arunachal Pradesh and Upper Burma's Kachin state before reaching Yunnan.

But India has security reservations about reopening the road.

China, Mr Yang says, is keen to develop transport links from Yunnan to eastern India and Bangladesh.

Also, Kong Can says, China seeks "Indian investments in Yunnan, mainly in [the] pharmaceutical and information technology [industries]". He would be also happy to see an Indian consulate in the city of Kunming.

Beside boosting trade and business ties, China seeks closer relations with India for other reasons.

(:::)
http://www.bbc.co.uk/news/world-asia-india-22430301

South Beijing Development Plan (2013-2015)


The ongoing and upcoming

Three years have passed, and here we embark on yet another three years of rapid development in southern Beijing, as the capital city recently released its South Beijing Three-Year Development Action Plan (2013-2015).



The plan, a continuation of the one set in motion between 2010 and 2012, vows to pour a total investment of nearly 396 billion yuan (US$62.9 billion) into the further development of its southern areas, according to the municipal commission for development and reform.

The investment will focus on 232 major projects in the fields of public services, infrastructure, eco-environmental and industrial growth, in a bid to narrow the development gap between the lagging-behind southern region and other areas of the city.

The new plan, which covers the five southern districts -- Fengtai, Fangshan, Daxing, former Xuanwu (now part of Xicheng) and former Chongwen (now part of Dongcheng) -- highlights the improvement of social welfare for the people, with 74 percent of the projects and 75 percent of investment closely related to the public's livelihood.

66 of these projects are related to public services, including education, medical treatment and social insurance, with an investment of 50.3 billion yuan(US$8 billion) -- about 13 percent of the overall investment total.

These projects, which include 94 continuing ones and 138 new ones, will continue to receive the government's support in the areas of finance, land and policies.

However, the government is putting more emphasis on the function of market, rather than on the role of government-led efforts as was seen in the first three-year development action plan between 2010 and 2012. The projects will open to woo more social capital.

In addition, the industrial zones' growth trend will shift from spatial expansion to function upgrading and the cultivating of high-end industries, whereas the urban construction will focus more on the coordinated development of population, resources and environment than simply on that of infrastructure.

The new plan also gives priority to the construction of rail transportation, trans-regional expressways, well-developed internal road network, supporting facilities for high-end manufacturing bases and newly-emerging industries with strategic importance, construction of a number of leisure forest parks and better urban environment.

Some of the well-known projects include the international garden expo, construction of the city's second international airport and the airport economic zone, further development of the Lize Financial Business District (FBD) and fostering of the Qianmen-Dashilan-Liulichang historical and cultural business district.



http://beijing.china.org.cn/2013-03/29/content_28393048.htm

lunes, 6 de mayo de 2013

Alemania, imán de los inversionistas chinos


Según un estudio publicado por la fundación de la empresa mediática Bertelsmann, el temor a las inversiones chinas carece de fundamento. El capital proveniente del Lejano Oriente crea cada vez más empleos en Alemania.



La tendencia del empresariado alemán a comprar compañías en China se ha revertido notablemente en los últimos tres años; ahora son los chinos quienes invierten en territorio germano. Eso atiza miedos en Alemania, donde los empresarios temen perder el control de sus firmas y los empleados, sus puestos de trabajo. Pero, ¿tienen fundamento estos recelos o hay más oportunidades que problemas en el hecho de que el país europeo se haya convertido en un imán para los capitales del Lejano Oriente?

Maquinaria alemana en China
La Fundación Bertelsmann –creada por el consorcio mediático detrás de la editorial Gruner+Jahr, la cadena de televisión RTL y la editorial Random House– acaba de publicar un estudio según el cual los beneficios de las inversiones chinas en Alemania pesan más que las desventajas. A juicio de Liz Mohn, ejecutiva de la fundación, los alemanes deberán conocer mejor a los chinos para darse cuenta de que no vienen para frenar el crecimiento económico alemán o desestabilizar el mercado laboral local, sino para todo lo contrario.

En el año 2003, el capital chino en Alemania no superaba los 25 millones de dólares. En 2012, las inversiones llegaron a los 626 millones de dólares y fluyeron, sobre todo, hacia las arcas de las empresas medianas. Para los chinos, lo más atractivo de las compañías alemanas es el know how, las estructuras de distribución y venta, la administración de la popularidad de las marcas y la ubicación geográfica del país en el ámbito europeo. Por su parte, las empresas germanas compradas por los chinos ganan acceso al mercado de Oriente y a capital fresco.

¿Ganancia para todos los implicados?
Además, no pocas familias alemanas se enfrentan a problemas de sucesión y se ven obligadas a vender sus propiedades y empresas. En esos casos, señala Cora Jungbluth, una de las autoras del estudio de la Fundación Bertelsmann, vender a inversionistas chinos puede ser mejor que vender a inversionistas estadounidenses porque los primeros suelen mostrar interés a largo plazo por sus adquisiciones. Norbert Scheuch, jefe de la compañía alemana Putzmeister, coincide con Jungbluth.

En 2012, las inversiones chinas en Alemania llegaron a los 626 millones de dólares.

“¿Por qué venderle nuestra firma a un fondo estadounidense que más tarde la venderá a un empresario chino? Eso puedo hacerlo yo sin intermediarios”, opina Scheuch, cuya empresa fue comprada en 2012 por el fabricante chino de maquinaria para la construcción Sany. De momento, China ocupa el puesto 20 en el ranking de los inversionistas en Alemania. Pero el estudio de la Fundación Bertelsmann estima que las inversiones de China en el país europeo se triplicarán de aquí al año 2020, alcanzando los 2.000 millones de dólares anuales.

Y es que los capitalistas chinos encuentran menos resistencia en Alemania que en Estados Unidos, pese al temor de los alemanes a la transferencia descontrolada de tecnología, a la proliferación de prácticas reñidas con la competencia leal y al espionaje industrial. Para superar estas reservas, el estudio de la Fundación Bertelsmann recomienda “una comunicación abierta y transparencia máxima”. Hasta Armin Schild, director del sindicato del sector metalúrgico de la empresa automotriz Opel y miembro del consejo de administración de esta compañía, saluda las inversiones chinas.

“Hace tres años, la idea de que los chinos pudieran comprar a Opel o a General Motors nos aterraba. Pero la percepción que el sindicato tenía de los inversionistas chinos se ha liberado de esos miedos”, comenta Schild, agregando que, aunque la cultura empresarial china no entiende del todo el hecho de que las condiciones de trabajo deban ser aprobadas por los representantes de los empleados, como lo suelen ser en Alemania, los inversionistas chinos están dispuestos a trabajar con gente que sepa de estas cosas.