China: Local government seeks eco-compensation from oil producer

 A long-running spat between Changqing oil field and Yulin government in northwest China's Shaanxi Province has moved a step closer to being resolved after 21 of the oil and gas producer's 22 bank accounts were unfrozen. A Yulin government official confirmed the decision to Xinhua earlier this week.

Yuyang district court of Yulin City froze the oil field's 22 bank accounts in October because it refused to pay compensation for water and soil losses worth 850 million yuan (139.7 million U.S. dollars), including an overdue fine of 110 million yuan.

The losses were caused by Changqing's exploitation of oil and gas in Yulin between July 2009 and March 2012, according to the court.

Changqing oil field, a subsidiary of China's top oil and gas producer PetroChina, has operations in five provinces and autonomous regions, including Gansu, Shaanxi, Ningxia, Inner Mongolia and Shanxi.

Last month, PetroChina negotiated with Shaanxi Province to tackle the eco-compensation issue.

Yulin unfroze 21 of Changqing's accounts in late November, with one still blocked until the issue is fully resolved, the official, surnamed Gao said.

LEGAL BATTLE

The nine-month-long legal battle began with Changqing lodging a lawsuit against Yulin's decision to seek compensation for water and soil losses from it.

The Yuyang district court verdict said that Changqing claimed Shaanxi provincial regulations were illegal and its compensation assessment unreasonable.

According to Shaanxi provincial regulations on water and soil conservation, if companies engage in resource development and cause water and soil losses, they should compensate, the court verdict said.

"China does not have a single standard on eco-compensation. Since local regulations were approved by Shaanxi Provincial People's Congress, a local legislative body, they are legally binding," said He Yuhui, a lawyer at Beijing Deheng law firm.

Besides, in accordance with local compensation regulations on water and soil losses, how much a company pays is based on its output, specifically, 30 yuan per tonne of crude oil and 0.008 yuan per cubic meter of natural gas.

If state-owned enterprises doubted the assessment methods, they could suggest relevant departments revise them rather than hinder its implementation, He said.

So the court ruled against Changqing oil field, but the latter still refused to pay the compensation.

Changqing set up in Yulin in the 1970s. After decades of development, it has seven production units in Yulin to exploit crude oil and natural gas, said Qiu Jianguo, an official from the local energy bureau.

Yulin started to seek compensation in January 2009. "State-owned, provincial and private enterprises in Yulin have all paid compensation for water and soil losses on time. Changqing is an exception," Qiu said.

INTERESTS CONFLICT

Resource development uses huge amounts of water and impacts the environment, so it is reasonable for local governments to ask for compensation, said oil industry expert Han Xiaoping.

"Insiders all know that behind the legal battle are conflicts of interests between local governments and state-owned companies," he said, adding that if not tackled properly, the case will cause more problems.

Employees of Changqing oil field never expected a city like Yulin would dare freeze their bank accounts, a worker surnamed Fan from Changqing said.

"There have been tensions between Yulin and us," he said. "One underlying reason is that we exploit resources here, but pay taxes to central rather than local government."

In 2012, the Changqing oil field produced 8.3 million tonnes of crude oil, accounting for 71 percent of Yulin's total output, while its natural gas output amounted to 11 billion cubic meters, 86 percent of the city's overall production.

Qiu Jianguo said local companies contributed more than 500 yuan to Yulin when exploiting one tonne of crude oil, but Changqing only devoted about 30 yuan.

"It holds a monopoly of the market, but contributes less locally," Qiu said. "Besides, growing tensions are also owing to some lagging national policies."

Changqing transmits natural gas from Yulin to its registered place Beijing, where taxes are levied. "It is unfair to the resource exporting regions," Qiu added.

To ease tensions between local governments and state-owned enterprises, China should work out the ownership and management of natural resources, said Zhou Daidi, a researcher with Energy Research Institute of the National Development and Reform Commission.

"Resource tax should reflect local interests," he added.

In Yulin, coal mining companies are committed to livelihood projects, such as immigrant relocation, poverty relief and employment.

We hope state-owned enterprises could take more responsibility for the local people, said Liu Xiaohui, assistant researcher with Shaanxi Provincial Academy of Social Sciences.

"Their relationships with local governments should be built on cooperation rather than contradiction," Liu said.

ECO-COMPENSATION FUND

Located in the Loess Plateau, Yulin City is ecologically vulnerable. Oil and gas exploitation would further weaken the local environment, environmental experts said.

"Its influence is not obvious right now, but damage to the earth's surface as well as vegetation will lead to water loss and soil erosion," said Zhang Jiping, an expert from Shaanxi institute of sand control.

China assesses the performance of local authorities not only through economic indices like gross domestic product, but also through their efforts in protecting the environment.

People must pay to use natural resources and those resulting in environmental damage must compensate, according to a decision approved by the Third Plenary Session of the 18th CPC Central Committee last month.

So the legal battle between Changqing oil field and Yulin government highlights the urgency of making known unified laws and regulations on eco-compensation in China, said Zhang Yan, a sociology researcher with Shaanxi Provincial Academy of Social Sciences.

"But it requires scientific and systematic assessment methods, involving the evaluation of enterprises' profits and degrees of pollution," she said.

Zhang added that Chinese local governments are changing development mode. But the first step is to treat pollution. "Government finance is not enough. It is time for enterprises to pay back."

"Building an eco-compensation fund may be a good idea but fees should not be used to build houses or buy vehicles," said Zhou Dadi.

Further discussion is needed as to which parties manage and monitor the fund, Zhou added.

According to the consensus reached between Changqing oil field and Yulin government, Changqing promised to increase oil refining in Yulin and provide enough resources for local liquefied natural gas enterprises.

In return, Yulin agreed to unfreeze its bank accounts. But how to deal with the eco-compensation issue is yet to be decided.

"We hope eco-compensation will not serve as a counterweight when both sides scramble for their own interests," Liu Xiaohui said.

Source: Xinhua

Smog not to smother road toward Chinese Dream: experts

 Smog these days has covered most of China with visibility in some regions lower than 50 meters, and its the hot topic at home and abroad.

Shanghai mayor Yang Xiong told a two-day forum called International Dialogue on the Chinese Dream on Saturday that Shanghai had the worst air pollution, "but it will be fine in the following days."

The Air Quality Index (AQI) topped 500 in certain areas of Shanghai on Friday. AQI of over 300 is defined as "serious pollution".

More than 100 entries to expressways in east China's Shandong Province were temporarily closed due to haze on Saturday, and some flights were canceled or delayed at Jinan and Qingdao airports.

Hundreds of experts gathered in Shanghai to discuss on the Chinese Dream. Proposed by President Xi Jinping last November, the Chinese Dream is "realizing the nation's great rejuvenation."

For Kenneth Lieberthal, senior researcher at the Brookings Institution, the meaning of Chinese Dream also includes "beautiful China", that is to build an ecological society.

Kenneth listed challenges as the staggering resource scarcity and the tension between economic development and environmental protection. One such extreme shortage is usable water in the North China Plain.

"I raise the above issues not to suggest that pessimism is warranted but rather to indicate the types of objective, major obstacles that must be handled in order to satisfy national aspirations to achieve the Chinese Dream," he said.

According to Mohamed Noman Galal, former Egyptian Ambassador to China and Member of the Egyptian Council for Foreign Relations, environmental pollution is the second most serious weakness in a rapid growing society like China.

China has recognized that the condition of the environment has a close tie with the wellbeing of ordinary people.

In a plan unveiled in September, the government will clean up the air by cutting coal use, closing polluters and promoting cleaner production. The plan aims to cut the density of inhalable particulate matter by at least 10 percent in major cities nationwide by 2017.

Also at the Third Plenary Session of the 18th CPC Central Committee, the Decision on Major Issues Concerning Comprehensively Deepening the Reform was adopted to respond to people's concerns and requests.

Pan Jiahua, director of the Institute of Urban and Environmental Studies, the Chinese Academy of Social Sciences, said that low or zero carbon could help speed up the process of transformation from an industrial into an ecological society.

"However, we must face up to the realities," said Qiang Ying, a researcher at the Shanghai Academy of Social Sciences, adding that the mayor's reference to the haze and difficulties in haze control shows the city's frank attitude, which will help to reach a global consensus.

The treatment of smog will be a long battle. It is rather difficult for one single department or single nation to tackle air pollution, said Hu Angang, a professor with the School of Public Policy and Management of Tsinghua University.

"Chinese Dream is now merging into the dream of the world, as Chinese aim for a green and sustainable world but not a world with natural and environmental disasters, that global cooperation is required," Hu said

Source: Xinhua

The 30th Thailand International Motor Expo

Thailand has two major auto shows on its calender, being the Bangkok Auto Show  in March and the Thailand International Auto Expo in early December, and as Thailand continues its rise as both a global top 10 national consumer and producer of automobiles, the two shows held in the "Detroit of the East" grow in importance every year.

The importance of the Thai Market on the Global Stage
Seven concept models appeared on the floor of the Challenger Impact Convention Center in Bangkok, despite the concurrent running of two globally important auto shows (Tokyo Motor Show and Los Angeles Auto Show ), emphasizing Thailand's emergence as a global automotive player.

Last year Thailand produced 2.45 million cars, (up 68 percent on 2011), sold 1.43 million locally (up 80 percent), and moved into the top 10 auto producing countries in the world.

This year's show is being staged in the shadow of political unrest in Thailand, but expectations are still high that more than 50,000 cars will be purchased by the event's expected 1.6 million visitors.

Though 85,000 cars were sold at last year's event, those figures are still remarkably high in comparison to the number of cars sold at events such as the aforementioned Tokyo and Los Angeles Motor Shows, held in much stronger economies with far larger, more affluent populations.

Thailand's local new car sales have already exceeded 1.12 million in the first ten months of 2013, and providing political stability is maintained, 1.3 million new vehicle sales look possible for the year.

Developed countries such as the United States (79.7 cars for every hundred people), Australia (71.7), Canada (60.7), Japan (59.1), and almost all European countries already have more than one car for every two people.Vehicles per head of population,  is one of those indicators which reflects the status of a nation along the development and prosperity continuum, and the effects of buoyant sales and manufacture of automobiles on a nation are a key drivers of economic growth and the development of technological capability for the nation as a whole.

There is a point though, of diminishing returns. Once more than half of the population has cars, it gets a lot tougher to sell a new car because the most prosperous inhabitants already have one.

Large still-developing countries will make up the majority of global car sales over the next decade as their populations grow rich. Countries such as India, which still has only 1.8 cars for every 100 people, Indonesia (6.0), China (8.5), Russia (29.3), Brazil (24.9), Mexico, (27.5) and Thailand (20.6) will be where the action is for automotive companies wishing to sell their wares.

The United States produced most of the world's cars for the last century, still making more than half of the world's cars each year into the late 1960s. Then Japan's automotive industry boomed during the seventies and helped create a global economic powerhouse, and more recently, China has done likewise, with India not far behind. 

One of the many fascinations in the global automotive game of thrones is the blurring of formerly national brands – brands selling cars we all assume are made in a particular country because of the nationality of the brands they bear, and the A:Wind is a prime example.

The A:Wind Suzuki may carry the brand of a Japanese company, but it will be produced in Thailand, at least initially.

The announcement of the Suzuki A:Wind in Thailand and not in Los Angeles or Tokyo is a sign of the time because it is a very significant vehicle.

Suzuki sees it as a global car which will go into many overseas markets including the massive Indian marketplace where Suzuki is the automotive market leader.

Market leadership in India is very important for Suzuki's global aspirations as the country's 1,237 million population makes up 17.4 percent of the global population and is growing far faster in population than China (1,361 million) and the United States (317 million). The numbers are so large, they're difficult to comprehend. India has added 208.4 million citizens in the 12 years since its 2001 census – more than the entire population of the world's fifth most populous country, Brazil (201 million people).

What's more, Suzuki will reap massive sales over the coming decade thanks to its dominance of the small car market in a country with so many people who aspire to freedom of mobility and don't have it.

Rumors have immediately broken out following the announcement of the A:Wind that it will replace Suzuki's current offering in India, the three-cylinder, DOHC, four-valve, 1000cc A-Star. The A-Star (pictured below) doesn't look all that different, but the A:Wind is a far more sophisticated machine.

Leading international management consulting firm Booz & Company rates India as a "key pillar of the global automotive market," that will by 2015, "exceed every major European market including Germany, France and UK in automotive sales" and 20 years from now, "will be one of the top three markets for automotive sales worldwide."

 The Vitally Important A-segment

The A-segment is industry terminology and doesn't translate directly into every national car category definition.

The United States automobile industry, for instance, developed using the assumption that if it made cars that Americans wanted, they'd suit the rest of the world too. Thinking the world had as much money, resources, oil, road infrastructure and public space as the United States worked fine for a long time, but the dominance of the American industry has been on the wane since the mid-sixties. Old habits persist though, and America still lumps A- and B-segment cars into the sub-compact category.

The A segment includes cars like the MINI, Fiat 500 and Panda, Volkswagen up!, Smart forTwo, Toyota Aygo, Mitsubishi i-MiEV, Ford Ka, Renault Twingo and Zoe, Chevrolet Spark, Peugeot 107, Citroen C1, Scion iQ and the Opel Adam.

So let's use the term "city car."

City cars make up a small percentage of the automobiles sold in most developed economies, but a significant proportion in developing economies where space on the less robust road infrastructure is limited, and running costs (the costs of running a car rise roughly at the square of the size) can make the difference between having a car or a scooter or walking.

Accordingly, this class of vehicle will be the most important class globally in the near future, if it isn't already.

Honda's just-released Fit is a new player in this category and is currently causing problems for Honda as sales have far exceeded supply and production is maxed out. The Fit, like the A:Wind, uses a Constantly Variable Transmission (CVT).

The Suzuki A:Wind concept will be needed by Maruti Suzuki in India to maintain its market dominance against an influx of new highly-efficient city cars such as the Fit.

The Suzuki A:Wind uses a three-cylinder, one liter motor and Constantly Variable Transmission (CVT) and it is due to begin production in 2014, though the delineation between concept and production model appears blurred in this instance. It's Suzuki's way of saying it reserves the right to change certain specifications, but that this concept car is the fundamental blueprint. Whilst the yellow beauty on display certainly appeared production-ready, there may be minor changes as it is readied for some serious mass production.

Source: Gizmag

Nasa successfully tested its new BE-3 hydrogen/oxygen rocket engine

NASA announced on Tuesday that Blue Origin had successfully test fired its new BE-3 hydrogen/oxygen rocket engine at the company’s West Texas facility in Van Horn. The test, which took place on November 20, was a series of static firings to simulate the engine sequence of an actual suborbital flight from lift off to landing and is part of the development of Blue Origin’s manned Orbital Launch Vehicle for carrying passengers and cargo into low Earth orbit.

During the test, the BE-3 engine was fired for 145 seconds to simulate a launch, reaching 110,000 lbs of thrust, It then “coasted” for four minutes on the static test stand before firing again for one minute to simulate a vertical landing maneuver with the engine throttled down to 25,000 lbs of thrust.

The November test follows on from a series of static firings previously carried out last year at NASA's Stennis Space Center in Mississippi. According to NASA, developing the engine is especially difficult because it must operate under temperatures ranging from that of liquid hydrogen’s -423º F (-253º C) to 6,000º F (3,315º C) when firing.

The BE-3 is notable as the first new liquid hydrogen engine since the RS-68 engine for the Delta IV booster went into service in 2002. The BE-3 is part of a Reusable Booster System, which will allow the spacecraft to fly again rather than be disposed off after one mission, as is the case with the Russian Soyuz.

The Kent, Washington-based Blue Origin is a partner in NASA’s Commercial Crew Program (CCP), which is helping with the engine’s development as well as reviewing the Orbital Launch Vehicle’s design. Blue Origin is one of several private companies developing low-Earth orbit spacecraft for NASA.

"Working with NASA accelerated our BE-3 development by over a year in preparation for flight testing on our New Shepard suborbital system and ultimately on vehicles carrying humans to low-Earth orbit," says Rob Meyerson, president and program manager of Blue Origin. "The BE-3 is a versatile, low-cost hydrogen engine applicable to NASA and commercial missions."

Source: NASA

Dymant Crafts And Sells The Most Luxurious Products Online

Publisher of craftsmanship Dyman just opened its doors to fashion enthusiasts and more generally fans of beautiful objects. Each month, the French startup works with luxury craftsmen to design, produce and sell limited edition objects to a demanding clientele.

“What gift can you make to someone who already has everything?” co-founder and CEO David Alexandre Klingbeil told me in a phone interview. “All of our creations are limited and numbered editions so that you know that you won’t find the same object at your friend’s house,” he continued.

Objects will range from $500 to tens of thousands of dollars. Yet, even if you have enough money, you have to be invited by an existing user to become a member of the club. With those two key elements, Dymant will remain an exclusive experience for a while.

Instead of simply selling the objects on a private website, Dymant has a strong editorial focus. Every month, the startup will select a new theme and find craftsmen to create objects around this topic. Then, everything is put together in a digital magazine — Volume 0 is named “The Secret”.

Dymant asks an artist to make the cover for each volume. For example, for this first cover, a video artist made a one-minute video showing hidden doors, keys and other dreamy images. You flip the page and find a foreword written by a famous luxury person —L'éclaireur founder Armand Hadida wrote the first one.

And of course, you can see the objects of the month. Every page comes with an explanation about how each object was made. Craftsmen have a story to tell and Dymant wants to be the platform to unleash those stories. The volume is available on Dymant’s website and works well on a computer, a tablet and a phone.

When I asked Klingbeil what were the objects available this month, he didn’t want to answer me — Dymant is a secret club after all. But he said that the company works with leather craftsmen, woodworkers and jewelers (you can expect black diamonds for example).

The team of four has raised $1.35 million from Partech Ventures and IDinvest. Now available in Europe and the U.S., Asia is already the next target. Early next year, the startup will expand to Asian markets.

“It’s a great advantage to be located in France,” Klingbeil told me. “It would be impossible to do a luxury startup somewhere else. All the best craftsmen are around me. When it comes to craftsmanship, the two biggest countries in the world are France and Italy.”

But all of this wouldn’t be possible without the web as well. Selling these goods online allows Dymant to bring together a diverse group of wealthy people interested in a new form of luxury. Klingbeil compares Dymant’s objects to a form of patrician luxury. Patricians held political power in ancient Rome. “They like elegant low-key luxury, the kind of luxury that shows that you have nothing to prove. What do you give your wife when she already has three Hermes handbags?”

Source: techcrunch

China corporate mood discussed by business leaders. Long way to go in terms of ease to do business.

The World Bank released its ranking of countries in terms of ease of doing business. China has improved slightly, but as the world's number 2 economy, it still has a long way to go. Now that 2014 is around the corner, it's time to ask Chinese companies their wish list for the new year.

Business is booming, but is China an easy place to do it?

That's part of a debate at The Economist's China Summit in Beijing on Thursday.

China only ranks 96th among the 185 countries and regions surveyed in the World Bank's 2014 Doing Business report, up slightly from the 99th place in 2013.

Although China is slowly moving up the ranks, talking to people here, there are still lots of things causing headaches. Mostly dealing with construction permits, getting electricity, and the tedious process of paying.

David Wei, former CEO of Fortune 500 company Ali Baba, says things will take time.

"This is the first generation for the government and for the local entrepreneurs to do a real business. So the legal framework may not be that transparent, the execution may not be perfect. But why do people still rank China? It is still the best opportunity in the world. You can make money, and you can see the changes, and we are changing. I have been doing business for more than 20 years in China. I think if you ask me if it's more difficult now, compared to 20 years ago, the answer is obviously no, it's getting easier and easier," Wei says.

At the third plenary session of the 18th CPC Central Committee, the Chinese government pledged to speed up reforms and reduce the state's role in the economy. This is expected to sweeten the mood in 2014.

"In the third plenum, the government has come out to say that while the state sector still remains a major pillar in the Chinese economy, the non-state sector will actually play a similarly important role. This is also the first time that the government has come out to give a truly legitimate status to the non-state enterprises in China," Edward Tse, Chairman for Greater China of Booz & Company, says.

The country's flagship carrier sees business flying high next year thanks to strong domestic demand and a rapid expansion to foreign destinations.

"Air China will face several challenges in 2014, including cost control and market competition. But in the meantime, we can see great opportunities as China is becoming more and more internationalized. A lot of foreign firms come to China, while plenty of Chinese go abroad, which means big business for us," Zhang Mao, Brand Manager of Air China, says.

But fact remains that marks are still low in the ease of kicking off a business. With start-ups mushrooming across the country, many regulatory and financial hurdles yet have to be removed to create a more business-friendly environment.

 Source: CCTV

North Korea: DPRK leader's uncle Jang Song-thaek stripped of all posts, expelled from WPK

The Democratic People's Republic of Korea (DPRK) announced Monday Jang Song-thaek, uncle-in-law of DPRK leader Kim Jong Un, was removed from all posts and expelled from the Workers' Party of Korea (WPK) for his "anti-Party and counterrevolutionary crime," the official news agency KCNA reported.

The KCNA said the Political Bureau of the Central Committee of the Workers' Party of Korea (WPK) held an enlarged meeting and adopted a decision Sunday of stripping Jang of all posts, depriving him of all titles and expelling him and removing his name from the WPK.

"Jang and his followers committed criminal acts baffling imagination and they did tremendous harm to our party and revolution," the KCNA said in a report following the WPK's enlarged meeting Sunday.

Jang was also described as a double-dealer who abused his power and challenged the "sole leadership system," and had gravely hindered the role of the Cabinet by taking control of major economic development sectors, and had allegedly committed irregularities and corruption and "led a dissolute and depraved life," said the resolution from the meeting.

Jang, 67, who was married to Kim's biological aunt, was senior general and vice chairman of the National Defense Commission (NDC), and secretary of administration department of the WPK.

The resolution also accused Jang of desperately working "to form a faction within the party by creating illusion about him and winning those weak in faith and flatterers to his side." It said Jang and his followers violated the WPK's guiding principles and disobeyed "the order issued by the supreme commander of the Korean People's Army," and "the discovery and purge of the Jang group ... made our party and revolutionary ranks purer ..."

"Our party will never pardon anyone challenging its leadership and infringing upon the interests of the state and people in violation of the principle of the revolution, regardless of his or her position and merits," said the resolution, calling on all the party members and the Korean People's Army to be united under the leadership of Kim Jong Un for "final victory."

 Source: CCTV

China: ADIZ in line with international law & practice

South Korea has been taking a more measured approach, compared with Tokyo and Washington, since China announced the establishment of its air defense identification zone last month.

On Sunday, Japan’s defense minister called on the international community to oppose China’s air zone, during his meeting with the Philippine Defense Secretary in Tacloban. On Friday, Japan’s lower house passed a resolution urging China to scrap its ADIZ.

The Foreign Affairs Committee of the China’s National People’s Congress says Japan has no right to make irresponsible remarks on the issue. It also says China’s actions are reasonable, legitimate and in line with international law and practice. Washington expressed concerns on the zone, while advising its commercial flights to follow China’s regulations.

Source: CCTV

CCTV Africa: Talk Africa introduction

In recent years, Africa has been undergoing tremendous economic and political growth. Some analysts seethe African continentasthe next frontier in global trade. Sadly, this positive image of Africa has always been pushed to the back burner by negative reports about the continent. This has cast Africa in bad light, discouraged many potential investors and by and largeundermined the continent’s political and economic growth.

Talk Africa seeks to change this negative perception of Africa by showcasing the continent as a potential investment destination, where investors can tap into abundant and cheap labour supply, a huge reservoir of raw materials and mineral resources, and all-year-round favourable climatic conditions to reap maximum profits. However, this isn’t to say that Africa doesn’t have its share of problems. Africa is always actively seeking homegrown solutions to its social, political and economic problems but remains part of a globalized world and open to change. By providing a platform for open and frank discussions and deep reflection on issues that affect the continent whether political, social or economic, Talk Africa seeks to influence leaders, policy and decision makers by being a source of thought-provoking interaction that generatevaluable suggestions, recommendations and solutions that implementers may find useful.

Each episode of Talk Africa deals with just one issue, but quite comprehensively. In terms of structure, the show comprises of an anchor’s intro, a 1-2 minute video package that serves as a backgrounder, followed by a robust studio discussion involving high-level guests drawn from all sectors of society. The debates are quite insightful and informative, and offer a glimpse into Africa’s uniqueness—that aspect of Africa that only CCTV Africa can bring out!

Backed by CCTV News Beijing headquarters and CCTV America broadcasting center in Washington DC, Talk Africa utilizes a state-of-the-art studio in Nairobi and has access to equally sophisticated studios in Cairo, Johannesburg, Khartoum, and Abuja to facilitate its three-way live satellite links.

Source: CCTV

South Korea announces air defense zone expansion

South Korea said Sunday it will expand its air defense identification zone, a move that could become a new source of tensions in the East China Sea.

The expanded zone, set to take effect on Dec. 15, will include a submerged rock claimed by both South Korea and China while partially overlapping those of Japan and China.

Source: Jiji Press

WTO ministers reach first ever trade deal

A ministerial conference of the World Trade Organization has reached an agreement on some points for global trade liberalization.

Ministers from 159 member nations and territories closed their meeting on Bali, Indonesia on Saturday after unanimously adopting a declaration. The session was extended by one day.The agreement came after wording for the declaration was modified in response to requests by some countries including Cuba.
The declaration says WTO members reached agreement in 3 areas -- agriculture, development and simplifying customs procedures.
Japan's Senior Vice Trade Minister, Midori Matsushima, said the WTO director-general and others managed to salvage the talks when they seemed on the verge of breaking down on the last day. She said the agreement is favorable for Japan.

Source: NHK

Anti-government protesters in Kiev topple Lenin statue

A group of anti-government protesters have toppled a statue of Vladimir Lenin in Kiev, to vent their anger toward their government’s decision to seek closer economic ties with Russia instead of the European Union.

The move came after hundreds of thousands held an anti-government rally in Kiev, the biggest protest since the country’ pro-democracy Orange Revolution in 2004. The government’s continued hard-line stance of threatening harsh measures against demonstrators and arresting opposition activists has only fuelled the protests.

In a letter to the crowd read by her daughter, jailed former Prime Minister Yulia Tymoshenko called on protesters to continue their fight. She spoke against holding any talks with the government unless they allow early elections, even though her top ally signalled the day before that talks were possible if the president fires his prime minister.

A much smaller pro-government rally was held dangerously close to the opposition march. Police have cordoned off the two rallies, and no clashes have been reported between the two groups so far.

Source: CCTV

Apple flexes its muscles in Japan

Recently, research firm Kantar detailed just how dominant Apple has become in Japan. According to Kantar, Apple's iPhone accounted for an amazing 76% of all smartphone sales in Japan in October. Furthermore, Apple's iPhone made up 61% of all smartphone sales on NTT DoCoMo in October.

Apple's success at NTT DoCoMo, and in Japan more broadly, is impressive enough. However, this sweeping success could also serve as a positive case study for what could potentially be the single greatest growth driver for Apple in the months to come: a deal with Chinese telecom giant China Mobile.

Source: newsOnJapan

OLs also profiting from illicit photo sessions

Tokyo Metropolitan Police in November announced the bust of a studio for allowing photography of school girls in seductive poses. According to Shukan Jitsuwa (Dec. 19), the trade in illicit private photography is varied, with office ladies among those in the biz.

NewsOnJapan

China plans exam reform, multi-evaluation system

The national college entrance exam, known as the "Gaokao" has been used to evaluate Chinese students for three decades. The Ministry of Education has worked out a plan for reforming exams and enrollment. The Ministry will solicit public opinions before its release.

For too long, the "Gaokao" has been the only exam that determines a student’s destiny.

"Currently, the education system in China is all about scores... No matter the evaluation system or the way we select talents. That’s the key problem of the education system, as far as many people are concerned." Vice Minister of Education Liu Limin said.

The Ministry of Education wants to change that through reforms. It will reduce the number of exam subjects. English will be removed from the Gaokao. Instead, students can take English exams more than once a year. Only the best result will be counted. China will also set up a multi-evaluation system. Admissions will not be based solely on test performance.

"We hope to release an integrated plan of examination and enrollment reform in 2014. Through pilot programs in some cities, we hope to publicize it to the whole country in 2017. Finally in 2020, we can set up a well-rounded education system.” Liu said.

Beijing is one of the pilot cities to see less English, more Chinese in the Gaokao. Starting from 2016, Beijing will reduce the point value of English from 150 to 100. More points will be given to Chinese.

Students will be able to take the English exam twice a year. The best score in three years will be counted to the Gaokao total score.

Source: CCTV

Top Chinese leaders hail major progress at water diversion project

China's top leaders on Sunday welcomed major progress at the south-to-north water diversion project and called for further efforts to ensure the success of following construction work.

The project, one of the country's largest infrastructure schemes, is designed to take water from the south to drought-prone areas in the north, including Beijing. Water will flow northward via three routes -- eastern, middle and western.

The first-stage of the eastern route, with an investment of over 50 billion yuan (8.2 billion U.S. dollars), has recently started to supply water to the provinces of Jiangsu, Anhui and Shandong.

While congratulating on the progress, Chinese President Xi Jinping asked related personnel to learn from the experience for the smooth running of following tasks.

"We should strengthen management and keep working to ensure steady progress on the project and stable water quality," Xi instructed.

Premier Li Keqiang and vice premier Zhang Gaoli who is also head of the project's construction committee, stressed the importance of following work, including ensuring water quality, protecting environment and avoiding safety issues, to fully tap the economic and social benefits.

Major work on the first-stage construction of the middle route is expected for completion at the year end.

Source: Xinhua

South Korea expands air defense zone southward

South Korea on Sunday announced a southward expansion of its air defense identification zone (KADIZ), encompassing submerged rocks within the overlapping exclusive economic zones (EEZ) of China and South Korea.

"The Republic of Korea (ROK) government decided to change the KADIZ range after considering the specialty of air military operations, the flight information region (FIR) range under the aviation law and international practices," Defense Ministry spokesman Kim Min-seok told an emergency press briefing.

The ministry said the new zone included the nation's two southernmost islands of Marado and Hongdo, as well as the Suyan Rock of China, a submerged reef within the overlapping EEZ of China and South Korea.

The ministry said its eastern and western boundaries remained the same as before, and that the new zone would take effect from Dec. 15.

It marks the first change in more than six decades to the KADIZ, which was drawn in 1951 by the U.S. Air Force during the 1950-53 Korean War.

The spokesman said the new KADIZ would not restrict flights by international civilian airliners or encroach on territorial air and interests of neighboring countries.

He said the ROK government had provided sufficient explanations about the expansion to neighboring countries through defense and diplomatic channels ahead of the announcement.

"I don't think the relations between South Korea and China will deteriorate seriously because of this," Yonhap news agency quoted a South Korean official as saying.

But the official, who requested anonymity, admitted reactions from the United States, China and Japan varied.

On Seoul's attempt to expand the KADIZ, Chinese Foreign Ministry spokesman Hong Lei said Friday the move should be in line with its national laws and international norms.

An ADIZ is not part of a country's territorial airspace and has nothing to do with the administrative rights over sea and airspace, Hong said, adding "We are ready to maintain communication with the ROK side under the condition of equality and mutual respect."

U.S. State Department spokeswoman Jennifer Psaki later said in a statement that U.S. officials appreciated Seoul's commitment to implementing the KADIZ "in a manner consistent with international practice and respect for the freedom of overflight and other internationally lawful uses of international airspace."

When meeting with visiting U.S. Vice President Joe Biden on Friday, South Korean President Park Geun-hye explained her country's stance on the KADIZ issue, to which Biden responded vaguely, saying he "appreciated President Park's explanation and South Korea's efforts."

South Korea finalized its position on the expansion after the meeting.

At the same time, considering flight safety, a South Korean transport ministry official was quoted by Yonhap as saying that South Korea had started talking about the possibility of the country's airlines voluntarily informing Chinese authorities before entering China's ADIZ that was announced two weeks ago.

"While expanding the air defense and identification zone, we've also been discussing with related agencies about the issue of airlines giving notification to China," the official said, adding that discussions would be concluded in the next few days.

Seoul's Foreign Ministry expressed earlier its official regrets over China's ADIZ, but signs were detected in the presidential office Cheong Wa Dae that South Korea might seek to take cautious stance on the issue.

Source: Xinhua

China's November exports better than expected

China's exports outperformed market expectations in November due to improved data in the United States and the European Union.

Exports went up 12.7 percent year on year in November and imports gained 5.3 percent year on year, according to the General Administration of Customs on Sunday.

November's export growth is above the market expectation of 7.0 percent, thanks to improved data in the United States and the European Union, said Liu Ligang, chief Greater China economist at ANZ Banking Group.

Foreign trade stood at 370.6 billion U.S. dollars in November, including 202.2 billion U.S. dollars of exports and 168.4 billion U.S. dollars of imports.

Trade surplus hit 33.8 billion U.S. dollars in November, the second month for China to report more than 30 billion U.S. dollars of trade surplus, Liu said.

In the eleven months, foreign trade gained 7.7 percent year on year to 3.8 trillion U.S. dollars.

China targeted foreign trade growth of 8 percent year on year in 2013. The target is higher than last year's real growth but below the 10 percent target set for last year.

Peng Wensheng, chief economist of China International Capital Corporation, said the Christmas season contributed to the rebound in November's exports.

Another reason for the year-on-year growth was the relatively low basis in November 2012, Peng said.

Chen Hufei, an expert with the Bank of Communications, warned "inflated export growth" was another possible factor to boost exports.

"Inflated export growth" basically involves arbitrage trading. It means that companies may misreport exports to obtain tax rebates or bypass government fund controls to channel fund into the mainland to profit from gaps in foreign exchange rates and interests rates.

"Inflated export growth" existed in exports of the first half year, Liu echoed.

But Zhao Jinping of the State Council's Development and Research Center took it as "negligible", though it might have existed.

Such behavior has prompted authorities to tighten supervision on trade flow.

The foreign exchange regulator on Saturday vowed to intensify supervision of commercial banks' trade finance to curb fake financing and prevent abnormal flows of cross-border foreign exchanges.

It will also step up supervision on companies with abnormal trade balances, especially those with abnormal rises in long-term trade financing and having typical traits of arbitrage.

Despite the upbeat data, Chinese manufacturers will still face difficulties as they are losing traditional competitive edges in prices because of higher costs and rising yuan, Zhao said.

The sharp trade surplus in November may further aggravate pressure for the yuan to appreciate, Chen echoed.

The November data is in line with China's official figures on its manufacturing expansion.

The purchasing managers' index stood at 51.4, the same as October, the National Bureau of Statistics said.

A reading below 50 indicates contraction, while that above 50 signals expansion.

China's economic growth in the first nine months stood at 7.7 percent, well above the government's full-year target of 7.5 percent.

Its next quarterly release on economic performances will be due in January 2014.

Source: Xinhua

Bankrupted by a mobile phone bill

Beware mobile users! If you loose your mobile phone, you should report it immediately.
Along with millions of other mobile users,Chris Newlove Horton lost his mobile phone during a Saturday night out, he gave little thought, as he looked around the pub the following day, of the potentially catastrophic effect on his finances, he is being chased by EE's(phone company) debt collectors for £4,107. It turns out that the phone was stolen and used to make calls to Algeria almost round the clock. He was unaware his contract made him liable for every call until the handset was reported missing – irrespective of the size of the bill. He says he has no prospect of repaying the money, and Citizens Advice has suggested he look at a debt relief order – a cheaper and easier form of bankruptcy.

Following a long campaign by Guardian Money (we first wrote about this issue more than a decade ago), the government is finally tackling the problem. After years of discussions between the mobile providers and the regulator Ofcom – and just days after Labour said it would introduce the same measure – culture secretary Maria Miller told journalists in Beijing this week that a deal had been struck to introduce a bank card-style limit to a consumer's liability – possibly as low as £50.

An agreement with EE, Three, Virgin Media and Vodafone (O2 was noticeably absent) had been done, she said, and a cap would follow. "Government, Ofcom and the mobile operators will undertake detailed work to determine the level of the cap and the conditions that will apply to it with the ambition of introducing it in spring 2014," says the formal agreement, since published by Miller's department.

Despite the promise, mobile phone insiders are already questioning whether it will be ready that soon. The providers have been desperate to avoid a cap and fought off the regulator's half-hearted attempts to introduce one in the past. Guardian Money understands that the exact terms – the size of a liability cap and whether it should be linked to a time limit – are undecided and being hurriedly looked at.

Source: theguardian

End to China's solar edge in EU as tariff kicks in

  As the EU begins to impose punitive tariffs on Friday on a number of Chinese solar exports, the world's largest solar market, which once fueled China's wild solar expansion, is now behind the industry's slim-down.

The dust has finally settled on a long-standing spat between China and the EU -- a spat which once put the multi-billion-dollar solar trade at stake. Thanks to a compromise reached in mid-August, 121 Chinese solar makers, which together account for roughly 80 percent of China's solar exports to the EU, will continue to export their products to the bloc, but at prices and volumes that reduce their formerly dominant position in the market.

For Chinese firms not included in the deal, Friday effectively marks their departure from the once lucrative EU market, as a punitive tariff will price their solar products out of favor with European buyers.

"We have decided to give up the EU market," said Wang Yanli, general manager of Jiangxi Wafer New Energy and Technology Company Ltd., a solar maker with a production capacity of 300 megawatts, which has not been exempted from the EU tariff.

"The tariff will push our silicon module to five yuan per watt, much higher than the 4.2 yuan in the domestic market," Wang said.

Wang said the company has yet to lay off any of its 500 employees and is looking to sell in Japan and Australia, among other emerging solar markets.

Yet recovery may prove difficult as demand from these markets, though rising steadily, is far from enough to consume the massive photovoltaic (PV) capacity Chinese companies have accumulated over the years.

Inside an industrial park in east China's Jiangxi Province, two small solar makers cannot hold out any longer to wait for the market to turn around. A staff member with the industrial park's management committee told Xinhua that months of losses have brought production to a halt at these two firms.

In Jiujiang, 145 km away, the city's 20 solar makers are now empty shells of their former glory. Some of the firms' owners told Xinhua they were "too sad to talk about it."

Yet all of these failures pale compared with Suntech's demise. The company was among China's top solar makers until a high-profile bond default earlier this year sent its shares spiraling down and forced it into liquidation.

Analysts say the wave of bankruptcy that has hit Chinese solar firms highlights the increasingly hostile business environment companies face worldwide. Chinese authorities had previously deemed the solar industry an emerging sector and extended cheap credit for its expansion.

But that expansion was met with shrinking solar subsidies from governments in Europe, the largest solar market, and followed by trade sparring with Europe and the United States over the last two years. As a result, Chinese firms have been left with mounting debt and solar products with no place to go.

"Suntech's failure is very symbolic of the casualties caused by overcapacity and trade rows with major solar markets," said Wang Bohua, Secretary General of China Photovoltaic Industry Alliance.

Chinese companies have learned a lesson the hard way, as the sector is in the midst of mergers and restructuring to readjust to a changing market landscape.

Though the process may prove painful, the industry will eventually emerge healthier from the transition, Wang added.

This is the view held by Lux Research, a Boston-based research firm, which in May of this year predicted China would transform from the world's largest manufacturer of solar products to the biggest market in the next five years.

Projections from the research firm also suggest that the size of the global PV market will double in 2018 to nearly 62 gigawatts, driven mostly by demand from the United States, China, Japan and India.

"Manufacturers' nightmare is turning into a long-term boon for the industry. Record low prices pushed gross margins to near zero or below, but they have made solar installations competitive in more markets," said Ed Cahill, lead author of the Lux Research report.

"The solar crisis does not mean 'game over' for the entire industry," said Miao Liansheng, chairman and CEO of Yingli Green Energy Holding Company Ltd., another leading solar maker based in north China's Hebei Province.

Companies that survive the reshuffle will be those with strong market demand, brand and technologies, while small, inefficient players will be weeded out, Miao noted.

As a result, the success of companies trying to break the current conundrum depends on their ability to diversify into other emerging solar markets, including China.

The State Council, China's Cabinet, vowed in July to nearly quadruple solar generating capacity to 35 gigawatts in 2015 in a bid to open the domestic market for excess solar capacity that is now shut out of Europe and the United States.

It also said it would encourage mergers and acquisitions in the sector and promised financing for large and efficient solar makers.

Other markets are catching up as well, albeit slowly. Statistics from the China Chamber of Commerce of Machinery and Electronic Products (CCCME) show Asia has replaced Europe as the largest overseas market for Chinese solar products, accounting for 37.99 percent of total Chinese solar exports in the first half of this year.

Wang Guiqing, vice president of CCCME, said the share of exports to Europe and the United States combined has shrunk from 90 percent to around 40 percent in the first eight months of this year.

Active deployment to emerging markets has rewarded companies' finances. Trina Solar Ltd. in east China's Jiangsu Province swung back to profits after eight consecutive quarters of losses. Others, like LDK Solar, have seen their losses narrowed this year.

"Silicon and wafers have seen a surge in price since the beginning of this year, and this speaks to rising demand for solar products," said Tong Xingxue, president and CEO of LDK Solar.

"The worst days are over, and we are confident about the recovery." Tong said.

Source: Xinhua

Skype’s Suspicious Absence From Microsoft’s Anti-NSA Promises

Microsoft’s public relations department was on encrypted cloud nine yesterday, riding a wave of high-five press reports for their swift action to protect consumers from National Security Agency surveillance.

“We are taking steps to ensure governments use legal process rather than technological brute force to access customer data,”raged Microsoft General Counsel Brad Smith, writing about revelations that U.S. and British spy agencies are secretly tapping the data flows of top tech firms.

Following Yahoo and Google, Microsoft will begin encrypting data in 2014, including services like Outlook, Office, SkyDrive and their signature operating system, Windows.

Noticeably absent from their victory lap was any mention of Skype, the wildly popular communication service that has been a favorite target for surveillance.

“I agree that Skype’s absence here is extremely interesting and concerning,” wrote the Electronic Frontier Foundation’s Kurt Opsahl to us in an email. “Microsoft, as the owner of Skype, has totally failed to be transparent about this and it’s not surprising that users and security experts come to believe that it has something to hide.”

A spokesman for Microsoft says that the announcement does “not exclude” Skype; it just wasn’t mentioned because they didn’t feel the need to mention all products. That’s an odd excuse, given that the communication has been headline news for many NSA stories.

The Center for Democracy and Technology’s Joe Hall explained to me in an email that real transparency from Microsoft means “demonstrating that independent review from folks respected by the security community have examined Skype’s cryptographic methods and implementation, and said good things about it.”

“I think Microsoft must be very transparent to make encryption in Skype meaningful,” Hall told me. “That means detailing the way Skype works technically, and demonstrating that independent review from folks respected by the security community have examined Skype’s cryptographic methods and implementation and said good things about it. Hopefully then anointing it as robustly ‘end-to-end.’ (Meaning only the parties at the ends of the conversation have access to the communication).”

The real reason Skype likely won’t offer spy-resistant (end-to-end) encryption is because digital communications carry delicious amounts of user data. The who, what, where, and when of our phone calls helps Skype target feature upgrades and advertising opportunities.

Lucrative user data is partly why Skype is more than happy to give its service away for free, while competitors, such as Silent Circle, charge users who are willing to pay for end-to-end encrypted communications. Skype doesn’t even give users the option to pay for such personal security.

Quite reasonably, Microsoft’s choice to encrypt some data is a business calculation to appease customers. Evidently, there has not been enough #outrage to tip the cost-benefit analysis to extend this encryption to Skype. The cheerleading yesterday isn’t helping that fact.

Source: techcrunch