Sunday, 24 November 2013

German parties head warily towards 'grand coalition' deal

 Angela Merkel's conservatives and the Social Democrats (SPD) head into a decisive week of German coalition talks on track to form a government but under fire from their own members for a series of policy compromises.

The chancellor's Christian Democratic Union (CDU) beat the SPD in an election two months ago, but failed to secure a parliamentary majority, forcing her into talks with her arch-rivals.
Negotiations have dragged on, leaving Merkel's outgoing centre-right coalition in charge but unable to move on urgent European policy decisions.
The parties are expected to overcome their remaining differences and divide up cabinets posts this week.
But complaints within the CDU about policy compromises have grown louder in recent weeks as the SPD has demanded and won concessions from Merkel on a minimum wage and other measures conservatives fear could hurt the economy.
Meanwhile, SPD leader Sigmar Gabriel faces a major challenge in convincing the grassroots of his party to back a coalition deal that may not contain the big public spending boost they had called for in the German election campaign.
Source: Reuters

50th anniversary of Golden Horse Awards in Taipei

Films from Singapore, Hong Kong and Taiwan split the honors Saturday at Taiwan’s 50th Golden Horse awards, the Chinese-language equivalent of the Oscars. Singaporean film "Ilo Ilo" beat Hong Kong Director Wong Kar Wai’s film "Grandmaster" to win best feature film, while Zhang Ziyi has won the first Golden Horse of her life.
A-listers grace the red carpet for the 50th anniversary of The Golden Horse Awards in Taipei. As the biggest and most prestigious awards for Chinese language movies, it has attracted a star-studded lineup, including veteran actor and director Jackie Chan, the recipient of many Golden Horse Awards in the past.
Taiwan actress Shu Qi, nominated for best actress for her performance in "Journey to the West; Conquering the Demons" walks the red carpet in a Valentino dress.
The cast of "The Grandmaster" also makes a big entrance. The martial arts film by Wong Kar-wai receives the most nominations of the year - including best film, best director, best lead actor, and best lead actress.
Carina Lau accompanies Tony Leung, up for best lead actor for his role in "The Grandmaster".
Oscar-winning director Ang Lee has returned to his native Taiwan to serve as a judge on the Golden Horse Awards panel.
While the annual event is held in Taiwan, it is Chinese film’s most representative award, drawing jurors from Taiwan, Hong Kong and the Chinese mainland. This year’s 50th Anniversary ceremony has seen a total of 37 films nominated, while Singaporean film "llo llo" is the dark horse of the evening.
The film has won best feature film of the year. Directed by Singaporean director Anthony Chen, "Ilo Ilo" tells the story of the relationship between a Philipina maid and the family she serves in Singapore during the 1997 recession in Asia. Chen has also won the best new director award.
The much hailed "The Grandmaster" is passed over for best film or best director, but still wins five awards, including cinematography and best actress for Zhang Ziyi in the leading role.
Taiwan’s Lee Kang Sheng beats Tony Leung Chiu Wai and Tony Leung Ka Fai to win the best actor award for his leading role in "Stray Dogs". Director Tsai Ming Liang wins best director of the year award.
"Stray Dogs" is a contemplative film about a father and his two sons struggling with poverty and modern day life in Taiwan. It also won the Grand Jury Prize at the 70th Venice Film Festival this year.
"This year I saw so many of my idols. I feel like I’ve been growing up along side them until today, win I won this award. It’s almost like magic, but at the same time it’s not an easy task," said Tsai Ming Liang, director of "Stray Dogs".
Best supporting actress has gone to Malaysian Yeo Yann Yann for her role in the film "llo llo". Best supporting actor went to Li Xuejian for his role as a symphatic Chinese official in the movie "Back to 1942", directed by Feng Xiaogang.
Source:CNTV

With Garuda Robotics, killer apps,not drones

Popular culture and news media have inculcated the masses with the image of drones as weapons of war. Depending on who you ask, they’re either tools against harmful terrorist elements or violators of national sovereignty.
But instead of dropping bombs, Garuda Robotics‘ drones will drop food, parcels, and medical supplies. The Singapore and Palo Alto based startup, founded by 20-year-old Pulkit Jaiswal, aims to provide drones-as-a-service to governments, large corporations, and first responders. Pulkit took the stage to pitch at Tech in Asia’s Startup Asia Jakarta 2013 conference.
Sure, drones have a negative connotation… but we want to slowly turn drones into tangible products that the public can gradually get used to and accept,” says Pulkit.
Garuda is already in talks with potential clients to conduct trials. While a wide range of applications are possible, the company is zoning in on a few: surveillance of oil and gas infrastructure, search and rescue operations, and support for civil defense operations.
These robots are autonomous: once the programming is done, they can be counted on to navigate the terrain, avoid collisions, and even stay out of forbidden areas.
Garuda’s services are available for a six-figure price and a monthly or yearly subscription fee. The platform will also allow developers to create add-ons that extend the basic functionality supplied by the company.
Pushing the startup’s technology will be a network of “forward-deployed engineers” — taking a leaf from CIA-funded big data firm Palantir Technologies — that can serve as a sounding board for potential customers and attempt to create solutions specially tailored for them.
Fronting Garuda is a solid team of drone enthusiasts and engineers that include Billy Clary, founder of Got Aerial, a company that does aerial camera work using drones, and Mathur Vinjamury, a specialist in scalable cloud solutions with seven years of experience in IBM.
Source: TechinAsia

Eurogroup satisfied with member states draft budgetary plan

The Eurogroup on Friday voiced satisfaction over the bloc's fiscal outcomes as no member states' draft budgetary plan came in serious non-compliance with regulations.
In a statement, the Eurogroup noted that member states with deficit close to 3 percent of GDP in 2013 are expected to see drops below the level in 2014.
"Both the debt and deficit projections for the euro area are considerably more positive than for other major economies, including the United States and Japan," Eurogroup added.
Meanwhile, the Eurogroup stressed that setting correct priorities for fiscal policies will lay the foundations for improving bloc's growth and the nascent recovery.
"Structural reforms for growth an essential and no less important complement to fiscal consolidation, as we will continue to stress," said European Union commissioner for Economic and Monetary Affairs Olli Rehn at press a conference.
Under the current regulations, called Stability and Growth Pact (SGP) and Medium Term Objective(MTO), eurozone countries' debt and deficit must not exceed 60 percent and 3 percent of GDP respectively.
"We therefore invite those Member States whose plans are at risk of non-compliance with the rules of the SGP to take measures as appropriate within their national budgetary processes or in parallel to that, to address the risks identified by the Commission and to ensure full compliance of the 2014 budget with the SGP rules," the Eurogroup said.
Source:  Xinhua

NSA Has 50,000 ‘Digital Sleeper Agents’ Via Computer Malware, Says Latest Snowden Leak

Sleeper agents are among the most sinister spy assets: they lie in wait, wolves in sheep’s clothing, and then deliver a critical blow when activated. The NSA has 50,000 of those waiting for the literal push of a button, according to the latest batch of leaked Snowden documents, as seen by Dutch evening newspaper NRC. But these aren’t people, like Keri Russel and Matthew Rhys in The Americans – these are computers, infected with malware and untroubled by conscience or the risk of going native.
The NSA reportedly infected 50,000 computer networks worldwide with malicious software with the sole aim of harvesting sensitive information it wasn’t privy to, which is basically what you’d call textbook spy work in the digital age, from an agency tasked with spying. That’s not to excuse or dismiss the significance of this revelation, but we’ve heard from the Washington Post previously that the NSA was working on this sort of thing and that at least 20,000 computers had been infected by the program as of 2008. So to hear from Snowden documents via the NRC that it’s now climbed to 50,000 is hardly surprising.
New details brought to light indicate that operations from its so-called “Computer Networks Exploitation” program are active around the world, and can remain active for many years without being detected in some parts of the world like Venezuela and Brazil. All the malware can we watched and controlled remotely, and turned on and off “with a single push of a button.” A New York times report published yesterday also asserts that the NSA has been pushing to stretch its surveillance powers even further, with the aim of catching up to the spread and reach of digital technology and online communications.

Source: TechCrunch

Japan's remarks on China's air defense identification zone "unacceptable"

- China's Ministry of National Defense on Sunday called Japan's remarks on the Diaoyu Islands included in the East China Sea Air Defense Identification Zone "absolutely groundless and unacceptable."
The ministry's spokesman Yang Yujun said that China had explained its policy stance on the issue in various ways following its announcement of the setup of the East China Sea Air Defense Identification Zone on Saturday, and Japan's remarks are "utterly groundless and China won't accept them."
Yang made the remarks while responding to questions concerning the Japanese government saying that it couldn't accept the fact that the zone covered the Diaoyu Islands.
According to Yang, the foreign affairs office under the ministry lodged solemn representations with the Japanese Embassy in China.
Yang reiterated that China's move aims to safeguard the country's state sovereignty and territorial and airspace safety and ensure the order for flight.
Yang said the move is a necessary measure for China to effectively exercise the self-defense right and conforms to the Charter of the United Nations and international laws and practices.
Having established its own air defense identification zone in late 1960s, Japan has no right to make irresponsible remarks on China's setup of the East China Sea Air Defense Identification Zone, Yang said.
According to Yang, Japan has frequently sent military planes in recent years to track and monitor Chinese military planes which were conducting normal exercises and patrols above the East China Sea in the name of entering its own air defense identification zone, which severely undermined the freedom of over-flight and made safety accidents and unexpected incidents highly likely.
Yang also accused the Japanese officials of using the media to maliciously report about China's legal and normal flights in an attempt to confound public opinions and create oppositional emotions.
"Facts have proven that it is Japan who has been creating tense situations," Yang said.
Yang stressed that the Diaoyu Islands are an inherent part of China's territory, and the country's determination and volition to safeguard its sovereignty over the islands are "unwavering."
"We strongly require the Japanese side to stop all moves that undermine China's territorial sovereignty as well as irresponsible remarks that misguide international opinions and create regional tensions," Yang said.
At the same day, Yang also made remarks over U.S. Department of Defence's so-called "concern" over the issue.
The Foreign Affairs Office of China's Defense Ministry has lodged solemn representations with the military attache of the U.S. Embassy in China Sunday evening, Yang said.
The establishment of the East China Sea Air Defense Identification Zone by the Chinese government is "totally rational and indisputable," he stressed.
According to Yang, 20-plus countries, including the United States, have set up their own air defense identification zones since the 1950s.
"The United States now raised to China blame and even opposition, which is totally groundless," he said.
"The current situation over the Diaoyu Islands was completely caused by the wrong words and deeds of the Japanese side," he said, adding that the United States "should not choose side" over the issue and "make no more inappropriate remarks or send no wrong signal that may lead to the risky move by Japan."
"We demand the U.S. side to earnestly respect China's national security,stop making irresponsible remarks for China's setup of the East China Sea Air Defense Identification Zone and make concrete efforts for the peace and stability in the Asia-Pacific region," Yang said.

Source: Xinhua

China will start commercial 4G mobile on December 18th

China will start commercial 4G mobile communications services on December 18th, bringing the most advanced telecommunications technology to the country’s more than 1 billion mobile users.
China Mobile, the country’s No. 1 mobile operator with over 700 million users, will start 4G services on that date with a new brand He, meaning harmonious in the Chinese language.
China is expected to issue licences for 4G before the telco’s new services start.
“It will be a national event and users are allowed to apply for 4G services without changing numbers,” said a Shanghai Mobile official.
Users in Beijing, Guangzhou and Chongqing will be the first to enjoy commercial 4G, or fourth generation, services. Shanghai, which is still building a citywide 4G network, will launch the services later.
Though China is the world’s biggest mobile phone market with more than 1 billion users on its mainland, it lacks the 4G technology that is used in some other countries and regions including the United States,South Korea,Japan, Singapore and Hong Kong.
The 4G phone will become rapidly popular on China’s mainland, thanks to the low cost of 4G phones, according to Li Yue, China Mobile’s president, who expects some 4G phones priced below 1,000 yuan (US$162) to appear in the second half of next year.
Apple Inc is also set to introduce iPhones supporting the 4G network in China, industry insiders said. The US giant and China Mobile are in negotiations over the 4G iPhone and they will launch it officially on December 18.
China Telecom and China Unicom are now Apple’s carrier partners for its smartphone on the Chinese mainland.
Source: Shanghai Daily

China 'air defence zone' angers Japan

Tokyo branded as "very dangerous" a move by Beijing Saturday to set up an "air defence identification zone" over an area that includes disputed islands controlled by Japan, but claimed by China.

In a move that raised the temperature of a bitter territorial row between the two countries, China's defence ministry said that it was setting up the zone to "guard against potential air threats".
It later scrambled air force jets, including fighter planes, to carry out a patrol mission Saturday in the newly established zone.
The outline of the zone, which is shown on the Chinese defence ministry website and a state media Twitter account (pic.twitter.com/4a2vC6PH8O), covers a wide area of the East China Sea between South Korea and Taiwan that includes airspace above the Tokyo-controlled islands known as the Senkaku to Japan and Diaoyu to China.
Junichi Ihara, who heads the Japanese foreign ministry's Asian and Oceanian affairs bureau, lodged a protest by phone to Han Zhiqiang, minister at the Chinese Embassy in Japan, the ministry said in a statement.
He said Japan could "never accept the zone set up by China" as it includes the Tokyo-controlled islands, the statement said.
Ihara also told the Chinese side that such move by Beijing would "escalate" current bilateral tensions over the islands, branding it "very dangerous".
Japan's vice foreign minister Akitaka Saiki plans to summon the Chinese ambassador to Japan, Cheng Yonghua, as early as possible on Monday and state Japan's position on the matter, Kyodo news agency reported.

Source: NewsOnJapan

Xinhua Commentary: It is Japan that has altered regional status quo

Japan, rather than China, is the country that has unilaterally "altered the status quo" in the East China Sea region in a longstanding dispute with China over the Diaoyu Islands.
The Diaoyu Islands have been part of China's sacred territory since ancient times -- a claim supported by historical facts and jurisprudential evidence.
There is a long list of historical facts to prove China's sovereignty over the Diaoyu Island and its affiliated islets in the East China Sea.
The Diaoyu Islands were first discovered, named and exploited by the Chinese people. The Chinese book "Voyage with a Tail Wind" recorded the names of the islands that Chinese voyagers passed en route from Fujian to Ryukyu, such as "Diaoyu Islet" and "Chikan Islet," known today as the Diaoyu Island and Chiwei Islet.
In 1561, the "Illustrated Compendium on Maritime Security" compiled by Zheng Ruozeng under the auspices of Hu Zongxian, supreme commander of the southeast coastal defense of the Ming Dynasty (1368-1644) court, included the Diaoyu Islands on the "Map of Coastal Mountains and Sands" and incorporated them into the jurisdiction of the coastal defense of the Ming imperial court.
Volume 86 of the "Recompiled General Annals of Fujian," a book compiled by Chen Shouqi and others in 1871, included the Diaoyu Islands as a strategic location for coastal defense and placed the islands under the jurisdiction of Gamalan, Taiwan.
The territorial dispute around the Diaoyu Islands started with Japan's illegal occupation of the islands in the late 19th century and early 20th century.
In 1895, when the Qing Dynasty (1644-1911) government's defeat in the First Sino-Japanese War was all but certain, Japan illegally occupied the Diaoyu Island and its affiliated islands. After that, Japan forced the Qing government to sign the unequal Treaty of Shimonoseki and cede to Japan "the island of Formosa (Taiwan), together with all islands appertaining or belonging to the said island of Formosa."
On Dec. 1, 1943, China, the United States and Britain issued the Cairo Declaration, which stated in explicit terms that "all the territories Japan has stolen from the Chinese, such as Manchuria, Formosa, and Pescadores" shall be restored to the Chinese. In international law, the Diaoyu Island and its affiliated islands have been returned to China since then.
On July 26, 1945, the Potsdam Proclamation was issued. It reaffirmed that "the terms of the Cairo Declaration shall be carried out."
Therefore, after the end of World War II, China recovered its territory invaded and occupied by Japan.
The United States administered the islands as part of the United States Civil Administration of the Ryukyu Islands after 1945. In 1971, The United States transferred the administration of the Diaoyu Islands to Japan.
As China and Japan were normalizing relations and concluding the Sino-Japanese Treaty of Peace and Friendship in the 1970s, the then leaders of the two countries, acting in the larger interest of the China-Japan relations, reached important understanding and consensus on "leaving the issue of Diaoyu Dao (Islands) to be resolved later."
In 2012, Tokyo took a veritable "unilateral move" to "purchase" and "nationalize" the Diaoyu Islands, in an attempt to legalize its act of theft.
It was this provocative act of Japan that "has altered the status quo" in the region, and is the origin of the current tensions in the East China Sea.
Such an act has severely infringed upon China's sovereignty and runs counter to the understanding and consensus reached between the older generation of leaders of the two countries. It has also rejected and challenged the outcomes of the victory of the World Anti-Fascist War.
However, the United States has just turned a blind eye to this provocative act and, on the contrary, puts the blame on China.
On Nov. 23, the Chinese government issued a statement on setting up the East China Sea Air Defense Identification Zone, which covers the Diaoyu Islands.
The rightful action, aimed at safeguarding China's sovereignty and providing air security, yet drew abrupt criticism from Washington, which has said it does not take sides on the dispute.
U.S. Defense Secretary Chuck Hagel, in a strongly worded statement on the same day, called China's move a "destabilizing attempt to alter the status quo in the region."
According to Hagel, the establishment of the air defense identification zone is a "unilateral action" that will increase the "risk of misunderstanding and miscalculations."
On the contrary to Hagel's irresponsible accusation, historical facts prove that Japan, rather than China, should be blamed for "altering the status quo" in the East China Sea region.
Without Japan's unilateral move to "purchase" and "nationalize" the Diaoyu Islands, there could have never been the current dispute and confrontation over the islands.
All measures taken so far by the Chinese government regarding the region, including the establishment of the air defense identification zone, are justifiable and totally legitimate as their ultimate goal is to protect China's sovereignty and territorial integrity.
As Washington has repeatedly said that it does not take a position on other countries' territorial disputes, it should pin the blame on the real offender for changing the status quo in the East China Sea and undermining regional peace and stability.
Source: Xinhua

Japan to scale back tank forces, focus on island defense

The Defense Ministry plans to slash its tank forces by more than half and redeploy the remaining vehicles to Hokkaido and Kyushu to meet the realities of the post-Cold War world, sources said.

The number of Ground Self-Defense Force tanks will be reduced from the current 741 to 300 within 10 years, they said.
The proposal to reduce tank numbers will be included in the new National Defense Program Guidelines, the government's basic 10-year plan for defense and national security, scheduled for completion in mid-December.
During the Cold War, the Self-Defense Forces put top priority on preventing an invasion by the Soviet Union with its large armored units. The Defense Ministry plans to shift its emphasis from the defense of the mainland to the protection of remote islands, with China's growing naval capabilities in mind.
After all tank regiments are withdrawn from Honshu, the SDF will deploy high-speed, highly maneuverable, lightweight armored vehicles to Honshu in their place.

Source: NewsOnJapan

US criticises new China air defence zone, vows to defend Japan

The US "deeply concerned" and committed to defending its close ally Japan after China unilaterally decided to establish an air defense zone in the disputed East China Sea, Secretary of State John Kerry has said.

"This unilateral action constitutes an attempt to change the status quo in the East China Sea. Escalatory action will only increase tensions in the region and create risks of an incident," Kerry said.
"We urge China not to implement its threat to take action against aircraft that do not identify themselves or obey orders from Beijing," Kerry said yesterday in Geneva.
Kerry and British Defence Secretary Chuck Hagel also urged China to exercise restraint after Japan branded the move as "very dangerous".
China yesterday said it was setting up the "air defence identification zone" in the East China Sea that includes disputed islands administered by Tokyo to "guard against potential air threats". Beijing also scrambled air force jets to carry out a patrol mission in the newly declared zone.

Source: NewsOnJapan

UN climate talks result acceptable but not satisfying: China delegation chief

The results of the United Nations' climate talks, which aims to pave the way for a new global climate pact due to be agreed in 2015, were not satisfying but acceptable, the head of the Chinese delegation to the talks said late Saturday.
"There are many issues that we are not satisfied with but we can still accept," Xie Zhenhua, also deputy chief of China's National Development and Reform Commission, told Xinhua in an interview.
Xie made the remarks as the two-week UN climate negotiations came to an end after approaching the 20th hour of extra time.
Envoys from more than 190 countries and regions reached consensus that all countries should prepare "intended nationally determined contributions" to help cut carbon emissions.
Developed countries were urged to mobilize finance assistance from government channels "at increasing levels" for the 2013-2019 period, from the 10 billion U.S. dollars a year paid out from 2010 to 2012.
Negotiators also agreed to create a mechanism to help vulnerable nations to deal with the losses and damage caused by global warming.
Xie said the Warsaw negotiation had laid "a very good foundation" for the Lima talks scheduled next year and the Paris climate change conference in 2015.
To make the meeting a success and the multi-lateral mechanism effective, China has "shown the biggest flexibility and made concessions on some issues," he said.
"On the surface, the three issues are all solved, but in substance, they are not," said Xie.
During this conference, one of the key demands of developing countries was to let developed countries make funding pledges with specific figures for the Green Climate Fund during the 2013-2019 period.
"They just made a decision to agree to continue to pay for the fund during the period, but had made no commitments on when, how and how much this would be paid," Xie said.
"In the end, what they did is just painting a pie. On this point, developing countries are really disappointed," he added.
The developed countries agreed during the talks to acknowledge that there is such a thing as compensation and agreed to hold negotiations about this, he said.
However, there are no commitments on when and how to set up such a compensation mechanism, Xie said.
On clarifying responsibilities for cutting carbon emissions, all parties agreed to make "contributions", rather than the previous wording "commitments," to this cause.
"Contributions" is a neutral word, which can be interpreted as either "commitments" made by developed countries or "actions" taken by developing countries, Xie said.
Developed and developing countries are expected to negotiate over how to interpret the term of "contributions" next year, according to Xie.
The Chinese delegation chief expected historical responsibility for greenhouse emission to be the most contentious issue for next year's global climate negotiations.
While some developed countries claimed that China's greenhouse gas emission in 2015 would be equal to the total of the United States and the EU, Xie said such a comparison is unfair.
"Our emissions are different from yours, for ours are produced in the process of industrialization while you are already in the post-industrialization era," he said.
While developed countries only started to reduce their carbon emission when their per capita carbon emission reaches 22 metric tons, China began to do so when this figure is about  six metric tons, he said.

Xinhua Commentary: China's setup of air zone legitimate, conducive to regional peace

The Chinese government on Saturday issued a statement on establishing the East China Sea Air Defense Identification Zone.
The move, however, provoked anger inJapan, which accused China of "one-sidedly" setting up the zone that covers the disputed Diaoyu islands , and described the zone as "totally unacceptable."
Having no intention to generate tensions, China's move is to uphold its own legitimate rights and safeguard what has always been its own.
As pointed out by many military experts, the establishment of the air zone is a necessary, rightful and totally legitimate measure taken by China in protecting its sovereignty and providing air security.
Actually, the establishment of the air zone is not only perfectly legitimate, but also in line with current international practice.
An air defense identification zone is established by a maritime nation to guard against potential air threats. Since the 1950s, more than 20 countries, including the United States, Australia,Germany and Japan itself, have successively established such zones.
China's Defense Ministry spokesman Yang Yujun has stressed that the zone "has no particular target and will not affect the freedom of flight in relevant airspace."
Since the zone is both in line with the UN Charter and in respect of relevant international laws and customs, China has every right to decide on its own whether to set up such zones, without getting permission from any other countries.
And Japan should know better than to continue its overreaction and learn to accept the "unacceptable."
On Saturday, U.S. Secretary of State John Kerry also voiced concerns over the zone, fearing it might "constitute an attempt to change the status quo in the East China Sea," and increase tensions and risks in the region.
But is it China to blame for upsetting the status quo over the islands?
The status quo of the Diaoyu islands, which had lasted for decades under the principle of shelving the dispute, has already been broken more than one year ago when the Japanese government launched a unilateral move to "purchase" and "nationalize" the islands.
The farce of "buying" the Chinese territories is a sign of Japan's expanding nationalism and growing belligerence, which should be identified as the real danger in the region.
Instead of "increasing tensions and creating risks," the setup of China's air zone could contribute much to regional peace and security by curbing the increasing rampancy of Japan's right-wing forces, as well as the continuous and dangerous provocations of Japanese politicians, which even Washington should be vigilant against.
The White House has repeatedly said that the United States does not take a position on territorial disputes between China and Japan, a neutral stance the Chinese government has appreciated.
But keeping a blind eye to the dangerous tendency in Japan could prove to be risky and might even jeopardize the U.S. national interests.
Source: Xinhua

China's private sector debt leverage

   According to a Walls Street Journal report,when top officials at the U.S. Federal Reserve want to understand the Chinese financial system, they meet Charlene Chu. Goldman Sachs which isn't short of China experts, interviewed her and sent the transcript to its clients.
"China is the classic story of corporate credit excess, but to an extreme," says Ms. Chu. By Fitch's measure, higher than the government's, China's private-sector debts rose from 129% of the size of the economy in 2008 to 214% at the end of June.
Ms. Chu shined the spotlight on China's shadow banking system, exposing vast amounts of unreported debt. She is credited by fellow China experts with spurring the country's central bank in 2011 to expand its measure of debt in the economy to include lending done through shadow banks—though Ms. Chu says that, even now, not all such debt is included in official figures.
"We are big fans of her work," says James Chanos, one of the loudest negative voices on China. His hedge-fund firm, Kynikos Associates, started placing bets against China in 2009, when Ms. Chu was warning China's debt-led stimulus program, designed to counter the global economic crisis, could build into a debt bubble.
Goldman Sachs sent a research report to clients this month titled "China Credit Concerns." It featured a Q&A with Ms. Chu, on top of a list of articles by seven of Goldman's China experts. Goldman wouldn't comment.

Breakthrough deal curbs Iran's nuclear activity

Iran and six world powers clinched a deal on Sunday to curb the Iranian nuclear programme in exchange for initial sanctions relief, signalling the start of a game-changing rapprochement that would reduce the risk of a wider Middle East war.
Aimed at easing a long festering standoff, the interim pact between Iran and the United States, France, Germany, Britain,China and Russia won the critical endorsement of Iranian clerical Supreme Leader Ayatollah Ali Khamenei.
The agreement was announced in the middle of the night in Geneva after long and tortuous negotiations. U.S. President Barack Obama, who sought to improve ties with Iran even before his first election to the White House in 2008, said it cut off Tehran's possible routes to a nuclear bomb.But Israel, Iran's arch-enemy and a U.S. ally, denounced the agreement as a "historic mistake". Critics in the U.S. Congress were also quick to voice concern, with some raising the spectre of failure to rein in North Korea on its nuclear programmes, but they signalled that Congress would likely give the deal a chance to work.
Obama sought to reassure Israel on this point, telling Prime Minister Benjamin Netanyahu in a phone call on Sunday that the United States would remain firm in its commitment to Israel, the White House said. Obama said he wanted to begin consultations with Israel immediately on reaching a comprehensive solution to Iran's nuclear problem.
The agreement, which halts Iran's most sensitive nuclear activity, its higher-grade enrichment of uranium, was tailored as a package of confidence-building steps towards reducing decades of tension and ultimately creating a more stable, secure Middle East.

Source: Reuters

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