Monday, 26 May 2014

Asian Stocks Gain Fourth Day, Extending 2014 High

Asian stocks climbed for a fourth day, with the regional benchmark index extending a six-month high, as industrial shares and health-care firms rose.
The MSCI Asia Pacific Index (MXAP) added 0.2 percent to 141.79 as of 9:40 a.m. in Hong Kong. The gauge rebounded 8.7 percent through yesterday from this year’s low in February amid optimism the U.S. economy can withstand a reduction in Federal Reserve stimulus and that Chinese policy makers will step in to bolster slowing growth.
China Premier Li Keqiang’s comments last week that the nation will fine-tune policy when needed showed a significant change in his tone, and may lead to incremental stimulus such as looser borrowing conditions and support for the property industry, Goldman Sachs Group Inc. economists led by Yu Song wrote in a note dated yesterday.
Japan’s Topix (TPX) index added 0.6 percent as the yen was little changed at 101.93 per dollar, holding near a 1 1/2-week low. South Korea’s Kospi index lost 0.4 percent. Australia’s S&P/ASX 200 Index and New Zealand’s NZX 50 Index both slid 0.1 percent.
Hong Kong’s Hang Seng Index dropped 0.2 percent. The Hang Seng China Enterprises Index of mainland companies traded in the city fell 0.4 percent. The Shanghai Composite Index slid 0.1 percent. Taiwan’s Taiex index and Singapore’s Straits Times Index both added 0.1 percent.
Source: Bloomberg

WSJ: Taiwan Data Suggest China, Rest of Asia Will Soon See Pickup

As economists scramble for clues to predict when China will emerge from its recent slowdown, some of them are looking opposite the mainland: Taiwan.

Taiwan’s economy is only 5% the size of China’s (based on 2013 nominal GDP), but the island’s trade data—particularly export orders—have long been on economists’ radar. That’s because about half the orders counted in the Taiwanese data are actually filled in factories in China, and thus count as Chinese exports when shipped.

       the WSJ reports,historically, Taiwan’s export orders for overseas factories “picked up well the turning points in China’s exports, and tended to lead the evolution of China’s exports by around two months,” RBS economist Louis Kuijs wrote in a recent research report.
April export orders rose 8.9% on-year – their fastest pace in 14 months – and showed growth to all regions.
The result “bodes well for a modest trade rebound” in the second quarter, Bank of America Merrill Lynch economist Marcella Chow wrote of the Taiwan export-order reading. It also “reinforces recent indications that a gradual recovery in the developed economies is gathering pace.”
Taiwanese manufacturers have flocked to China since the 1990s, when Beijing began offering tax incentives to help modernize the country’s manufacturing and provide jobs and training for a large pool of relatively unskilled labor.
Exports from China also enjoy lower tariffs in many countries, as Beijing has struck far more trade deals with other markets than Taipei.
Aside from its implications for China, the recent Taiwan data suggest the West’s recovery increasingly is feeding through to Asia.
April industrial production surprised on the upside, with Barclays Capital citing notable strength in personal computers and mobile phones, segments that had been weak for the past two years.
“The strength suggests that Taiwan’s until-recently narrowly based recovery led by semiconductors is broadening to finished consumer goods, and bodes well for the sustainability of the recovery,” Barclays’ Wai Ho Leong wrote.
With a slew of new consumer electronic devices hitting the market later this year, coupled with better demand from advanced and Southeast Asian markets, economists believe Taiwan is set to receive more orders in coming months —mostly for electronics–from overseas clients.
Still, the recovery is likely to be tame by Taiwanese standards: From 2002-2007, the island’s exports grew by an average of 12% a year and its gross domestic product by 5.3%, ING economist Tim Condon notes. This year, he expects GDP to grow just 2.6%.
Source: WSJ

China says Vietnam claims to disputed islets 'ridiculous'

(Reuters) - China described Vietnam's claim to disputed SouthChina Sea islands as "ridiculous" on Monday, as tension rises over competing claims of sovereignty in waters believed to be rich in oil and natural gas.
China claims almost the entire South China Sea, rejecting rival claims to parts of it from Vietnam, the Philippines, Taiwan, Malaysia and Brunei in one of Asia's most intractable disputes and a possible flashpoint. It also has a separate maritime dispute with Japanover islands in the East Sea.

The row with Vietnam intensified this month after China dispatched an oil rig to an area near the disputed Paracel islands.
 
Vietnam's Foreign Ministry held a press conference on Friday when officials stressed the country's historical claim to the Paracels.
"Historical and legal evidence shows that Vietnam has absolute sovereignty in the Paracel and Spratly archipelagos," said Tran Duy Hai, deputy head of Vietnam's National Border Committee.
Chinese Foreign Ministry spokesman Qin Gang disagreed.
"Seeing that the Vietnamese Foreign Ministry held a press conference last Friday on the subject, I felt it was extremely ridiculous," he said at a briefing on Monday. "The Paracels are the indisputable territory of the Chinese people."
Qin said the Paracels had been part of Chinese territory since the Han dynasty, and that Chinese explorers had first discovered the islands.

Hanoi says Chinese boat sinks Vietnamese fishing vessel in disputed waters

A Chinese boat rammed and sank a Vietnamese fishing vessel not far from where China has stationed a massive oil rig in disputed waters of the South China Sea, the head of Vietnam's coastguard said on Tuesday.
Vietnamese fishing boats operating nearby rescued the 10 fishermen on board following the incident on Monday, said coastguard commander Nguyen Quang Dam.
He said the ramming occurred 17 nautical miles from the rig, which has been deployed between the Paracel islands occupied by China and the Vietnamese coast.
"A Vietnamese boat from the central city of Da Nang was deliberately encircled by 40 fishing vessels from China before it was attacked by a Chinese ship," Dam told Reuters by telephone.
There was no immediate comment from China on the latest incident to flare up since the rig was towed to waters that Hanoi also claims.
Scores of Vietnamese and Chinese ships continue to square off around the rig despite of series of collisions earlier this month.

Vietnamese Prime Minister Nguyen Tan Dung last week said his government was considering various "defence options" against China, including legal action, following the deployment of the rig.
Source: Reuters

Xi Jinping’s Shanghai Free-Trade Zone Remarks Seen as Mild, but Welcome Endorsement

The Shanghai zone opened with few solid policies that might fundamentally recharge the broader economy or unlock its heavily regulated financial system. Even supporters have been frustrated by the policy inaction, leaving many to wonder how serious authorities are about true reform. The fact that no top Chinese leader seemed to have time to schedule a visit to the Shanghai zone was taken by China watchers as a sign of bureaucratic battles in Beijing.
Economists found reasons to doubt the impact. A list of what isn’t permitted is seen as too long. More than 16,000 businesses have registered to do business in the zone, though many firms applying for licenses there are companies already established in the area that authorities encouraged to re-register.
Mr. Xi’s visit came at the tail-end of a weeklong visit to Shanghai, where he also welcomed dozens of Asian leaders to a security summit that groups non-western nations. He signed a deal withVladimir Putin to import hundreds of billions of dollars’ worth of gas from Russia and observed military drills between the two countries.
Over the weekend, Mr. Xi also toured Shanghai plane-making facilities operated by Commercial Aircraft Corporation of China and sat in the cockpit model for its C919 passenger jet.
The Shanghai pilot free-trade zone is considered financial-sector-oriented, and a litmus test of the Xi-run government’s appetite for reform.
Financial analysts say hints of positive change are appearing, in particular ways to move money into and out of China using business entities registered in the zone. The adjustments are highly technical; one set of rules relates to a corporate balance sheet management strategy known as “cash pooling” not allowed elsewhere in China and another deals with how certain bank accounts can be used. But they do suggest to analysts nascent efforts to introduce a more market-oriented currency-exchange policy that is currently governed by knotty rules.
“The financial reforms for the FTZ are clearly a further step on the road to internationalization and ultimately full liberalization of the” Chinese yuan, said a recent analysis of the experimental rules being introduced there by law firm Hogan Lovells.
Mr. Xi’s visit should reduce doubts that he never liked the idea of a Shanghai zone.
“He’s the No. 1 guy in China, and there were reports before that he was worried about the risk control,” said Chang Chun, executive dean of the Shanghai Advanced Institute of Finance.
Moreover, the president’s cautionary remarks dovetail with another view of Mr. Deng that helped allow China’s economy to develop: his preferred strategy for introducing potentially destabilizing economic reforms, dubbed “crossing the river by feeling the stones.”
Source: WSJ

BP Chief Economist Christof Ruhl to Join Abu Dhabi Sovereign Fund

Christof Ruhl, a German academic who specializes in energy economics and has been with BP since 2005, will start at ADIA in July, the fund said in an emailed statement Tuesday. He’ll start and lead an independent research team that provides the fund’s senior executives with proprietary research, the statement said.
ADIA is one of the longest-established and largest sovereign wealth funds in the world, with assets estimated at $773 billion by the U.S.-based Sovereign Wealth Fund Institute. It invests excess energy revenues for Abu Dhabi, the capital of the United Arab Emirates.
The appointment comes as ADIA continues a years-long shift toward managing more of its assets in-house and hiring its own portfolio-management talent instead of relying on external asset managers. In an annual review covering 2012, the fund said 25% of its assets were managed internally, up from 20% the previous year.
Mr. Ruhl taught at universities in Germany and the U.S. before working at the European Bank for Reconstruction and Development and then as the chief economist for Russia and Brazil at the World Bank, ADIA’s statement said. He subsequently joined BP, providing economic analysis that played into the energy giant’s business decisions.
At ADIA, he will report to Khaleefa Al Qamzi, the director of the fund’s evaluation and follow-up division. He’ll be based in Abu Dhabi.
Source: WSJ

EU Parliament Elections, "echo chamber for politicians who want to tear it apart"

Protest parties racked up gains across the 28-nation European Union in elections to the bloc’s Parliament, turning the assembly designed to unite Europe into an echo chamber for politicians who want to tear it apart.
The wave hit hardest in France,Greece and the U.K., undermining the leaders of those countries and making it more difficult to steer the EU as a whole. In all, fringe parties won 31 percent of the Europe-wide vote, up from 20 percent in the current Parliament, according to official EU projections.
The protest vote “will have a huge impact on the parties and policies back home,” said Pieter Cleppe, head of the Brussels office of U.K.-based think tank Open Europe. “They will make it harder to centralize powers in the EU, especially when it comes to managing the euro crisis.”
In France, Marine Le Pen’s National Front parlayed complaints about too many immigrants and a lenient penal system into 26 percent of the vote. The breakthrough by the National Front, which has just three out of 577 lawmakers in the national parliament, dealt a further blow to President Francois Hollande, the least popular leader in France’s modern history.
Proclaiming “politics of the French, for the French, with the French,” Le Pen said the election was a “humiliation” for Hollande. She called on him to dissolve the French parliament and submit to new national elections -- an appeal that was dismissed by Hollande’s camp.
Voters in Greece, the epicenter of the euro crisis, handed first place to Syriza, a party which chafed at the budget cuts demanded by German-led creditors in exchange for international aid. A near-final count gave it 26.6 percent. Prime Minister Antonis Samaras’s New Democracy party, which has a two-seat majority in the national parliament, trailed with 22.7 percent.
Samaras’s junior coalition partner, Pasok, got 8 percent, keeping the ruling parties on top and avoiding an electoral embarrassment. Samaras is now counting on an easing of terms for the repayment of Greece’s debt. Expectations that he will stay in power buoyed Greek bonds today, pushing the 10-year yield down 27 basis points to 6.23 percent at 3:25 p.m. in Athens.
The 751-member European assembly will have a voice in naming the next president of the European Commission, the EU’s executive arm. On that point, the mainstream parties still hold sway. The latest count gave center-right parties 214 seats, leading their standard-bearer, former Luxembourg Prime Minister Jean-Claude Juncker, to claim the commission post. The Socialists, led by Germany’s Martin Schulz, got 189 seats. A deal between the two political groups may be the only avenue to a majority.
Source: Bloomberg

2014 Art Basel Hong Kong, The art of urbanity. by Rebeca Lo

This year's Art Basel Hong Kong included a weeklong extravaganza of creative activities, some of which stir debate about city living. Rebecca Lo looks back at some of the highlights.
By all accounts, the second edition of Art Basel Hong Kong was a resounding triumph. It has been five years since Art Basel acquired a 60 percent stake in the Art Hong Kong fair and made it the third on its worldwide calendar of contemporary art events. This year, with UBS as its lead partner, the Hong Kong Convention and Exhibition Center saw more than 65,000 visitors gaze at the art from 245 galleries from 39 countries over the four-day session. That's a lot of champagne.
Along with the show within, Art Basel inspired a public program such as a three-day film section with 49 films by 41 artists screened at Agnes b. Cinema, including films by Hong Kong's Kwan Sheung Chi and Christopher Doyle.
In addition, the audio-visual light presentation Alpha Pulse customized for the facade of the 490-meter-high ICC by German artist Carsten Nicolai ensured everyone within view of Victoria Harbor caught a glimpse of the city's biggest art installation.
"This is the first time we've included film," says Magnus Renfrew, Art Basel's director for Asia and the founder of Art Hong Kong.
"We commissioned the Berlin artist Carsten Nicolai to create an app with an audio component to go with his light display at ICC. Alpha Pulse is an emotional response to the different frequencies of light and sound."
One of the highlights on the sidelines of the fair was a debate organized by the Hong Kong office of Intelligence2 entitled Asia Should House its Poor Before it Houses its Art: The Funding of Museums is Best Left to Private Patrons.
It's a controversial topic, as Hong Kong's West Kowloon Cultural District continues to see star architects being commissioned to build government-funded galleries and museums. Meanwhile, China's museum software of curators and art critics lags behind its hardware of shiny new buildings.
Somewhat ironically moderated by West Kowloon's CEO Michael Lynch, the motion was argued by South China Morning Post financial columnist Jake van der Kamp and Mumbai-based features editor Vishwas Kulkarni. Tate Modern curator Jessica Morgan and Beijing's Ullens Center for Contemporary Art's director Philip Tinari debated against the motion. The audience got a chance to challenge each of the speakers and to vote before and after hearing their arguments.
Both van der Kamp and Kulkarni played the emotion card.
"Art is a toy for the very rich in very poor countries," Kulkarni says.
Van der Kamp says: "Museums are for beautiful people with wine glasses. Government-funded art is stuck in the 19th century. Artists today meet in Starbucks and show their work online."
Morgan and Tinari stressed that without government-funded education in the form of museums, culture and knowledge, art would be reduced to whatever is in fashion.
"Education is a fundamental way of reaching conflict resolution," Morgan says.
"Sharing information led to the origin of public museums. If museums are left to private investors, it allows the free market to decide what's worth collecting."
Swarovski commissioned a PMQ site-specific work by British sculptors Patrik Fredrikson and Ian Stallard for Art Basel Hong Kong. Prologue juxtaposes raw industrial steel with the sophistication of amber-colored precision-cut crystals suspended within its circular cradle. The hundreds of crystals sparkle with different effects, depending on the amount of natural or artificial light available during the course of a day.
Local galleries exhibiting at Art Basel Hong Kong also offered meticulously curated shows in their permanent galleries across the city.
Fuxin native Sun Xun, one of China's rising young artists, has a solo show entitled Brave New World at Edouard Malingue Gallery.
It features drawings and installations referencing Aldous Huxley's dystopian view of the future. The centerpiece is Sun's animated film What Happened in the Year of the Dragon, housed within a farmyard-animal inspired installation.
Meanwhile, de Sarthe Gallery presents Pioneers of Modern Chinese Painting in Paris, a collection of 12 first- and second-generation Chinese painters who studied Western techniques in Paris during the early to mid-20th century.
Painters such as Xu Beihong and Pan Yuliang returned to China with their newly acquired knowledge only to see most of their works destroyed during the "cultural revolution" (1966-76).
The extremely rare works on display collectively show China's first break from its long history of calligraphic brushwork and provide food for thought about emerging talent.
ChinaDailyUSA

Performance art festival hits Beijing

The past four years of the Beijing Nanluoguxiang Performing Arts Festival has marked it as an eventwhere experimental ideas and art meetThis yearthere will be a   noticeable Japanese tinge to the annual event.



Over the course of the festival's 10-week run48 performances anda score of workshops and screenings will be held aroundNanluoguxiang, one of eastern Beijing's coolest districts.
The festival will open on May 23, with Shugen-Celebration/Expression, a Japanese, Korean and Chinese jointproduction that responds to the massive 2011 Tohoku Earthquakein the typical Japanese "quiet theater language" of theater, dance,music and photography.
Makoto Satothe veteran Japanese theater artistwill pay tribute toChinese literary   legend Mao Dun's book China in A DayHe willcollaborate with his Chinese    counterparts for a performance artpiece that takes a look at events in China on May   21, 2014, almost 80 years after the day that is examined in Mao's classic bookThematerials they work with will come from submissions solicited fromaround the country.
Hirada Orizathe renowned Japanese playwrightdirector and leader of the theater   company Seinendan who championed playsin the Japanese vernacularwill conduct  workshops with Chinese audiences for a deeper understanding of an artist's social  responsibilities.
"We've been working with Japanese artists for a long timeBut there is a particular    focus thisyear," says Lai Huihuithe festival's program director. "It's naturalas we've found more and more in common with them.
"We're both oriental civilizations that value interpersonal relations above personal conditions - thephilosophies are similarWe've both gone through stages when Western influences come into conflict
"So it's only natural that we both are more accepting and come tobe inspired by what the other brings."
For the first time in the festival's historya section called "socialrealityhas been put togetherNine of the country's emergingdirectors will stage plays that reflect their takes on society.
They will focus on the lives of migrant workersthe country'senvironmental conditions and big-city dividessuch as residents'living standards.
"My very distinct feeling this year is that artists have gone out oftheir own world and out of their way to take into account the biggerenvironmentthe society they're in," Lai says. "They're taking onmore social responsibility."
The festival also has puppet performances for childrendanceworkshops aimed at the untrained as well as traditional Chineseopera adaptations lined up for the coming weeks.
Source: ChinaDailyUSA

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China's bank card issuance at 4.39 bln

Total bank cards issued by China's financial institutions reached 4.39 billion at the end of the first quarter, putting average per capita bank card ownership at 3.24, the latest data from the central bank showed on Monday.
In breakdown, debit card issuance amounted to 3.98 billion, and credit cards totaled 414 million, according to a report released by the People's Bank of China.
As of the end of March, financial institutions had extended 4.8 trillion yuan in credit to credit card owners, increasing 31.12 percent year on year.
Credit card loans that were more than six months overdue rose to 28.2 billion yuan at the end of March, accounting for 1.5 percent of the total credit loans outstanding, up 0.13 percentage points from the percentage seen at the end of last year, the central bank said.
Source: Xinhua

China: Beidou to help safeguard fishermen on high seas

The Beidou navigation satellite system will help establish a security system to protect fishermen in Hainan province, industry insiders said.
Qi Chengye, manager of the engineering technology center of BDStar Navigation, a company that provides the Beidou service to 80 percent of China's fishing vessels, said that BDS mainly provides instant alarms and unique short messaging services, as well as positioning devices for fishing vessels.
"The alarm button installed in the client terminals enables fishermen to instantly report emergencies to fishery departments," Qi said.
"The vessel management system based on BDS can also request assistance from nearby vessels, which will greatly help protect fishermen."
According to the Ministry of Agriculture's South China Sea fishery bureau, more than 380 conflicts between Chinese fishermen and some neighboring countries' fishery departments occurred from 1989 to 2010.
Of the more than 750 fishing vessels and 11,300 fishermen involved in the conflicts, 25 people died or vanished and more than 800 were jailed.
"Compared with the GPS developed by the United States, which allows customers only to receive messages, the BDS short messaging service enables customers to send texts on the high seas where there is no cellphone signal," said Qi. "The cost of each text will be less than one yuan (16 US cents), which is much cheaper than making satellite phone calls."
"The Chinese government is giving large subsidies to encourage fishermen to install BDS," Qi said.
"The government pays for most of the cost of the client terminals, and gives fishermen diesel subsidies according to the distance and frequency of their vessels heading out to sea."
But Qi said that there still remains room for improvement with the current BDS weather forecasting service.
According to BDStar Navigation, China has about 310,000 marine fishing vessels and 8 million people engaged in fishing.
By December 2013, more than 50,000 fishing vessels in China had been equipped with BDS terminals, according to Ran Chengqi, director of the China Satellite Navigation Office.
"Five experimental satellites will be deployed before 2015 to help establish global coverage to provide better services," said Sun Jiadong, an academician with the Chinese Academy of Sciences and chief designer of BDS.
According to Sun, the 16 navigation satellites that have been sent include two experimental ones.
"The 14 satellites, sent from 2007 to 2012, operate well and enable BDS to work for pelagic fishing and in areas with complicated landforms," Sun said.
In May, the Ministry of Transport's Beihai Navigation Safety Administration announced that a major breakthrough had been made in the marine application of BDS, with positioning accuracy improved to one meter.
It said that the Beidou Radio Beacon-Differential Beidou Navigation Satellite System, or RBN-DBDS, is an augmentation system that improves the positioning accuracy of BDS by broadcasting differential corrections to Beidou receivers in the medium frequency radio beacon band (285-325 kHz), according to Xinhua News Agency.
The RBN-DBDS system can be applied in sailing, marine exploration and rescue, as well as maritime charting and monitoring.
Source: Xinhua

Report slams "unscrupulous" U.S. surveillance over world, China

 A Chinese Internet information body has complained of "unscrupulous" surveillance by U.S. intelligence agencies over the rest of the world, and called for an immediate cessation of the practice.
A report by China's Internet Media Research Center published on Monday said the U.S. has taken advantage of its political, economic, military and technological hegemony to spy without restraint on other countries, including its allies.
The operations have gone "far beyond the legal rationale of 'anti-terrorism' and have exposed the ugly face of its pursuit of self-interest in complete disregard for moral integrity," the report read.
It added that the spying "flagrantly infringed international laws, seriously impinged on human rights and put global cyber security under threat."
In particular, it described China as a main target of the U.S. secret surveillance.
Chinese authorities have looked into the U.S. National Security Agency (NSA)'s secret surveillance program codenamed PRISM, which is revealed by former NSA contractor Edward Snowden.
An investigation carried out by various Chinese government departments over several months "confirmed the existence of snooping activities directed against China," the report said.
Citing the Snowden documents, the report said U.S. secret surveillance targeted the Chinese government and its leaders, Chinese companies, scientific research institutes, ordinary netizens, and a large number of cell phone users.
Foreign media reports suggested that Washington had spied on China's current and former leaders, the ministries of commerce and foreign affairs among other government departments, as well as banks and telecommunication companies.
The U.S. magazine Foreign Policy reported in June last year that an "Office of Tailored Access Operations", created in 1997, under the NSA had successfully penetrated Chinese computer and telecommunications systems.
Earlier the South China Morning Post also reported U.S. hacking of China's telecommunication companies to access text messages, and sustained attacks on network backbones at Tsinghua University, the country's most prestigious university.
Even computer games and social networking software were watched, the report said citing the Guardian and the New York Times reports. It added that Chinese telecommunications giant Huawei is also a target of U.S. surveillance, according to the websites of Der Spiegel and the New York Times.
The report came days after the U.S. slapped ungrounded cyber-espionage charges against five Chinese military officers.
However, according to the report, it is the U.S. itself that is conducting "unscrupulous" surveillance over the rest of the world, adding that Washington must "cease spying operations that seriously infringe upon human rights, and refrain from causing stress and antagonism in global cyber space."
"The revelations about PRISM and other programs demonstrate that the U.S. has mounted the most wide-ranging, costly, long-term surveillance operation in the history of the Internet," the report said.
An article in the Washington Post on Aug. 30, 2013, reported that the budget request of the National Intelligence Program for fiscal 2013 had boasted 52.6 billion U.S. dollars, of which spending on cyber operations accounted for 4.3 billion U.S. dollars, nearly 8 percent of the total.
Targets of the widespread secret surveillance by the U.S. government include, according to the Guardian, 35 world leaders such as Ban Ki-moon, Secretary-General of the United Nations, German Chancellor Angela Merkel and Brazilian President Dilma Rousseff.
Citing documents leaked by Snowden, Germany-based Der Spiegel revealed that the NSA surveillance might have snooped on as many as 122 foreign leaders.
The U.S. secret surveillance also targets ordinary citizens worldwide, as documents leaked by Snowden suggested that the NSA collects location data from nearly five billion cell phones and some two billion short messages each day.
The Washington Post revealed that the NSA also infiltrated into the data centers of Yahoo and Google around the world and collected at will data of hundreds of millions of user accounts.
Reports from The Guardian and The New York Times revealed that the NSA also tapped smartphone apps such as Angry Birds and Google Maps to gather personal data including age and location.
Monday's report stressed that the seamless cooperation among the intelligence agencies, government and the private sector, with their big-data processing capabilities, allows the surveillance to extend in scope, seemingly without limit.
The NSA has reportedly planted software and devices into some 100,000 computers worldwide since 2008, giving it the capability to monitor them around the clock and launch attacks even when they are offline.
Citing a top secret presidential directive issued in October 2012, foreign media reported that Barack Obama has ordered his senior national security and intelligence officials to draw up a list of potential overseas targets for U.S. cyber-attacks.
The directive also stated that what it called Offensive Cyber Effects Operations (OCEO) offered unique and unconventional capabilities to advance U.S. national objectives around the world with little or no warning to potential adversaries or targets.
The report said the U.S. government does not just target the Internet, but also key industries such as finance, transport, electricity and education, and the NSA's eavesdropping targeted overseas politicians, international organizations and business leaders.
The Der Spiegel reported in December last year that the NSA had broken almost all the security architectures designed by major companies, including those of Cisco, Huawei, Juniper and Dell.
The report noted that the exposure of the PRISM program prompted worldwide criticism of the U.S., even from its allies. Angela Merkel said, "We need trust among allies and partners. Such trust now has to be built anew."
"The irony is that exactly what they are doing to us is what they have always charged that the Chinese are doing through us," said William Plummer, a senior Huawei executive, in March when commenting on reports that the U.S. National Security Agency hacked into the company's systems.
Snowden said exposing the PRISM program is to show the "hypocrisy of the U.S. government when it claims that it does not target civilian infrastructure, unlike its adversaries."
Source: Xinhua

China Voice: Public should prepare for long war on terror

While China is knitting an anti-terrorist security network with patrols by armed police, or even helicopters and vehicles loaded with riot guns, the nation needs still to prepare its people to fight the war on terror, thereby mobilizing its most powerful weapon.
The latest terrorist bombing in Urumqi, capital of Xinjiang Uygur Autonomous Region, in which 39 innocent people were killed, prompted the nation to heighten its security.
On Sunday, the Ministry of Public Security said the police will start a year-long nationwide anti-terrorism operation, asking police across the country to cooperate and launch a joint offensive against terrorism.
Three people were killed and 79 injured in an attack at a railway station in Urumqi on April 30. In March, assailants killed 29 civilians and injured another 143 at a railway station in the southwestern city of Kunming.
Terrorist activities have extended from the Xinjiang region to major cities across China, and from violence against law enforcers to carnage affecting civilians. That terrorist activities can happen anywhere, anytime highlighted the fact that the guard can never be let down.
To keep the momentum of counterstrikes, the country needs to wage war on terror. Given the ubiquitous and uncertain nature of terrorist threats, preparing the general public is not only necessary but also effective to defeat the enemy.
To do so, first of all, China should raise people's awareness of terrorism, and inform the public, in means of school or public education, of constitutes terrorism and its various forms.
The public response following the Kunming attack revealed a lack of awareness, as some Internet users spread rumors about similar knife attacks striking other cities.
They should have been aware that by rumormongering, they were merely playing into terrorists' hands by creating panic, whetting terrorists' appetite for orchestrating more violence.
Secondly, public safety awareness needs to be raised. The general public cannot be too cautious in the face of such a biting and prolonged war against terror.
If the public can report any irregularities in their neighborhood, public places or cyberspace, they will provide essential aid to intelligence collecting.
Also, whereas the Wenchuan earthquake in 2008 prompted the nation to equip citizens, particularly minors, with quake relief skills, few anti-terrorism civilian exercises have yet been organized.
More such drills and public education sessions need to take place, so as to show the public how to respond to a terrorism emergency.
One thing needs special attention: as China's battle with terrorism is going to be a day-to-day reality, some fine lines need to be toed carefully, for example, the crackdown should not override people's legitimate rights.
China's police authority noted this in its instruction to local police, requiring them only to target terrorists and religious extremists and to protect the legal rights and interests of people of ethnic minorities.
With this as a premise, the "people's war" on terror needs to be fought fiercely. Preparing the people for terrorist threats is not a sign of fear, rather, a show of determination.
Source: Xinhua

WSJ: China, Middle East Economic Partnership to Develop Beyond Oil, HSBC Says

    
As the world’s second-largest consumer of oil, China in the past decade has relied heavily on the Middle East to secure the resources required to fuel its ascendancy to become an economic superpower. In doing so, it overtook the U.S. as principal investor in the Middle East and played a pivotal role in transforming the region by lifting its economic and living standards.
Those strong economic ties are now broadening beyond China’s demand for commodities and will further shape the Middle East – and Africa – for at least another generation to come, according to an HSBC report on the impact of China’s economic globalization on the region.
    The gross domestic product of the Gulf region’s exporters has risen by $1 trillion to $1.7 trillion in the past decade alone, lifting per capita GDP to an average of $35,000 and close to $100,000 in Qatar and Abu Dhabi, according to the report.
HSBC expects the economic partnership between China and the Middle East to further develop in sectors such as construction, transportation and banking with the emirate of Dubai serving as the main regional hub.
But despite the impressive contribution of China to the Middle East, HSBC says there are a few hurdles that both blocs need to overcome to deepen their relationship.
“The Middle East’s ties with China are uneven, and further development faces significant structural obstacles,” according to the report whose authors argue that because the Gulf and China generate current account surpluses, capital flows remain constrained. Chinese investors are not actively participating in the region’s equity and debt markets, while demand for non-oil goods from the Middle East remains low.
HSBC also highlights the lack of “deep and longstanding” social ties, noting the absence of a single Chinatown in the region, while pointing to the relatively low-key political and military cooperation between the regions.
Still, with China importing almost three quarters of its oil from the Middle East and Africa and its appetite for resources the fastest-growing in the world, economic cooperation is likely to further strengthen. Trade between the MENA region and China stood at $300 billion in 2013, a 50-fold increase in the last decade.
“In a region that was once led by US investment, it is now China that sets the rhythm for economic growth – a structural shift to a new era that we think will persist for a generation to come,” HSBC said.

Sony, Panasonic Mull OLED Panel Tie-Up With Japan Display

         The WSJ reports,"Sony Corp.  and Panasonic Corp.  are in early talks to form a joint venture in next-generation panel technology for smartphones and tablets with Japan Display Inc.,  a key Apple Inc. supplier, people familiar with the negotiations said Monday.
Both companies have been struggling for years to find a low-cost way to develop the organic light-emitting diode display, or OLED, technologies to make big and ultrathin televisions. Sony and Panasonic formed an alliance in 2012 to jointly develop OLED technology, but decided to call off the venture late last year.
While Sony was the first to develop and release the world's first OLED TV in 2007, Korean makers including Samsung Electronics Co. and LG Electronics Inc. have driven the OLED market, applying these screens in smartphones".
Cracking the cost formula for big OLED TVs is still a challenge for the industry as a whole, but Japanese manufacturers hope they may still have chance to compete against South Korean rivals in smaller-size panels through a three-way tie-up, one of the people said.
Japan Display, owned around 35% by a government-backed fund, is the world's biggest maker of smartphone and tablet displays and has a pilot line at its plant to develop OLED screens. Having listed its shares in March, the company itself was formed two years ago through a merger of the LCD units of Sony, Hitachi Ltd. and Toshiba Corp.
Sony and other manufacturers world-wide are increasingly focused on rolling out 4K TVs, which promise four times the resolution of existing high definition TVs and are more affordable than OLED TVs.
In a media session Monday, Sony Chief Executive Kazuo Hirai declined to comment on the reports of setting up the joint venture with Japan Display. Still, speaking generally on OLED technology, he added it made more sense for Sony to focus on offering 4K TVs to consumers considering the pricing level.
He added that Sony will continue to offer and make investments in professional OLED monitors for the film and broadcasting industries as well as for the medical field.
The Japanese electronics and entertainment giant is expecting its sixth annual loss in seven years as it ramps up restructuring of its personal computer and television businesses. The company decided earlier this year to split off its TV division into a separate, though wholly owned, unit.
The new TV subsidiary, to be launched in July, will focus on turning the business profitable after a decade of bleeding losses. If the TV division doesn't turn around, Mr. Hirai said the company may explore an outside partnership, but added a complete withdrawal from TVs wasn't "realistic" considering the costs of pulling out of such a large business.

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