Sunday, 23 March 2014

China March HSBC flash PMI falls for fifth month in row

Activity in China's factories shrank for a fifth straight month in March as output and new orders both weakened, a preliminary private survey showed on Monday.
The flash Markit/HSBC Purchasing Managers' Index (PMI) fell to an eight-month low of 48.1 in March from February's final reading of 48.5.
A reading below 50 indicates a contraction while one higher than that shows expansion.
The preliminary March index showed new orders slid for a fourth consecutive month, to 46.9 -- its lowest point since July 2013, while output fell to 47.3, the lowest since September 2012.
New export orders grew for the first time in four months, suggesting that the mild slowdown China is facing, which has caused some jitters in global markets, has been driven primarily by weak domestic demand.
Another encouraging sign was a substantial increase in the employment sub-index, though the number remained below 50.
Chinese Finance Minister Lou Jiwei said in early March that a healthy labour market is more important than reaching the government's 2014 growth target of about 7.5 percent.
"Weakness is broadly-based with domestic demand softening further," said Hongbin Qu, chief economist for China at HSBC, in a comment accompanying the PMI data.
"We expect Beijing to launch a series of policy measures to stabilise growth. Likely options include lowering entry barriers for private investment, targeted spending on subways, air-cleaning and public housing, and guiding lending rates lower."

A string of weak economic indicators so far this year, including surprisingly weak exports in February, has reinforced concerns about a slowdown in the world's second-largesteconomy.
Premier Li Keqiang said last week that China will speed up investment and construction plans to ensure domestic demand expands at a stable rate.
The government has said it would like to reduce the economy's dependence on exports and enhance the role of domestic consumption, but it is unclear how much growth it might be willing to sacrifice to reach that goal.
The Chinese yuan hit a 13-month low on Friday, which traders and analysts attributed in part to attempts by the central bank to curb betting on the currency's appreciation. A weak yuan also helps exports, which stumbled in February.
The Markit/HSBC PMI is weighted more towards smaller and private companies than the official index, which contains more large and state-owned firms.
Both the final Markit/HSBC manufacturing PMI and the official manufacturing PMI for March are due on April 1.
Source: Reuters

WSJ: Apple in Talks With Comcast About Streaming-TV Service

        The Wall Street Journal reports,"Apple Inc.  is in talks with Comcast Corp.  about teaming up for a streaming-television service that would use an Apple set-top box and get special treatment on Comcast's cables to ensure it bypasses congestion on the Web, people familiar with the matter say.
The discussions between the world's most valuable company and the nation's largest cable provider are still in early stages and many hurdles remain. But the deal, if sealed, would mark a new level of cooperation and integration between a technology company and a cable provider to modernize TV viewing".
Apple's intention is to allow users to stream live and on-demand TV programming and digital-video recordings stored in the "cloud," effectively taking the place of a traditional cable set-top box.
Apple would benefit from a cable-company partner because it wants the new TV service's traffic to be separated from public Internet traffic over the "last mile"—the portion of a cable operator's pipes that connect to customers' homes, the people familiar with the matter say. That stretch of the Internet tends to get clogged when too many users in a region try to access too much bandwidth at the same time.
Apple's goal would be to ensure users don't see hiccups in the service or buffering that can take place while streaming Web video, making its video the same quality as Comcast's TV transmissions to normal set-top boxes.

Chinese internet giants move into the U.S.

As China’s e-commerce giant Alibaba prepares for an IPO in the U.S, other Chinese internet heavyweights are also considering IPO destinations, with America remaining a hot spot.
The titans of the world’s biggest Internet markets are lining up to take their battles to the U.S. Alibaba Group, JD.com, Weibo. Here in China you can’t get away from them.
JD.com. started as they go to place for electronics but now sells just about everything. It’s China’s second largest online retailer and has market leader, Alibaba, in its sights.
JD.com is investing in a massive logistics network, so its biggest challenge in the near-term may be profitability.
The Internet giant hitched its wagon to WeChat -- China’s most popular mobile messaging app. WeChat is owned by Tencent, which is already listed in Hong Kong. There’s talk that Tencent is considering an IPO for WeChat too.
WeChat started as a straight messaging service like WhatsApp but is quickly morphing into a one-stop mobile Internet shop.
Moments: it’s like a Facebook for sharing. Bank Card: link it to WeChat and spend away, even pay cab drivers. Games. It’s missing a good map app.
But it’s unclear how many of these innovations can actually make money. Tencent’s ad revenues are weak compared to international peers. Weibo is owned by New York-listed Sina and Alibaba’s also scooped up a stake. It’s been the microblog to beat and a force for change in China with hundreds of millions of users trading news and views.
So do these firms hold long-term promise for investors?
"2014 is going to be a year of mobile land grabs. So you’re a little bit more aggressive in terms of fighting for the users. After two years when China’s smartphone penetration reaches 70-80 percent, I think the market competition will be relatively more stabilized and we’ll see better revenue and earning growth for these companies," CLSA head of telecom and internet research Elinor Leung said.
All of China’s big Internet players are likely to benefit as the market’s blistering growth continues.
But expect some blood -- and red ink -- to be shed as the companies move into each others’ territory.

China: ZPMC completes first offshore drilling platform

Zhenhua Heavy Industries, also known as ZPMC, the world's biggest port machinery manufacturer, completed its first rig on Friday. It is the most advanced self-developed offshore drilling platform in the nation.
The rig, called KS Java Star 2, is the outcome of collaboration between ZPMC, formerly known as Shanghai Zhenhua Port Machinery Co, and Friede Goldman United Ltd, the US-based designer and service provider for drilling platforms.
ZPMC's parent China Communications Construction Co Ltd acquired Friede Goldman in 2010 for $125 million.
Built at a cost of US $165.65 million, the KS Java Star 2 is capable of working in water 300 up to feet deep. A notable feature is a cantilevered "envelope" that can provide accommodation for 110 persons.
The rig is owned by Singapore's KS Energy Ltd and will be delivered to Vietnam shortly to work on a contract there, according to Kris Wiluan, chairman and chief executive officer of KS energy.
About one-third of ZPMC's total orders were from marine engineering businesses last year. "And we are ambitiously looking forward to having more than half of our orders derived from marine engineering in the coming years," said Song Hailiang, chairman of ZPMC.
Source: ChinaDailyUSA

China's CCTV: Ukraine economy needs bailout

The ongoing Ukraine crisis has jolted the country's trade and energy markets. Ukrainian businessmen are going through hard times. Analysts say the economy needs bailout funds immediately.
The Seventh-Kilometer Market is the biggest outdoor market in Odessa, Ukraine. There are many independent traders at the market selling everything from pricey luxury goods to all sorts of cheap consumer products. But now, the market sits nearly empty because of the Ukraine crisis that started at the end of last year.
"It's a tough time to do business as the hryvnia has lost its value. That means that commodities prices keep rising these days. My business is down almost by half," a dealer said.
Apart from the vulnerable foreign exchange, oil prices are also a main issue facing businesses. Oil and gasoline prices have spiked on the unfolding Ukraine crisis, which has also driven up commodity prices. Importers worry that the tensions in Ukraine may affect domestic supplies.
"There are some problems with contract payments due to the existing Ukrainian foreign exchange crisis. The country's central bank has carried out the policy to restrict buying foreign exchange," said Professor Sergey Yakubovskiy at Odessa Mechnikov National University.
The European Commission has agreed to give nearly 500 million euros worth of trade benefits to Ukraine. Analysts say that's the only way to prop up the troubled country's economy.

PBOC: no grounds for large swings in the yuan

The recent drop in the yuan triggered speculation that China's central bank is depreciating the Renminbi on purpose. But newly released figures show the real reason.
The increase in funds outstanding for foreign exchange in February was 128 billion yuan, 71% lower than January's figure.
Industry insiders say the drop was due to the Chinese New Year holidays and volatility in external markets.
The yuan dropped over 1,000 basis points against the U.S. dollar since mid-February. The exchange rate is now at an 11-month low.
The central bank reiterates the yuan rate depends on the supply and demand of foreign exchange which is based on balance of payments. A PBOC spokesperson says as China has ample forex reserves, there are no grounds for large swings in the yuan.
Source: CCtv

China to ensure funding for urbanization

China's Ministry of Finance said on Wednesday that it will speed up reforms in the urbanization process, such as fiscal, taxation, investment and financing.
Vice Minister of Finance, Liu Kun, said they will ensure funding for urbanization by innovating financial services and opening up market entry.
He also said that China will encourage social capital to take part in infrastructure construction, prevent and resolve financial risks, and strengthen controls on local government's borrowing behavior.
"We will support urbanization through local government bonds, and allow local governments to have rights to borrow money at a suitable level. Meanwhile, we will also improve the system of local government bonds, and explore a financing measure that combines both general bonds and designated bonds," Liu said.
Source:  CCTV

Chinese New Year distorts Feb. FDI data

Growth in China’s foreign direct investment slowed significantly in February due to seasonal factors. Meanwhile, investment in the services sector grew quickly while investment in manufacturing slowed.
China drew 19.3 billion US dollars in foreign direct investment in the first two months of 2014, up 10.4 percent from the same time last year.
FDI in February grew 4.1 percent from a year earlier, slowing sharply from a 16.1 percent increase in January. Ministry spokesman says that the data for February alone was not released due to seasonal distortion caused by the Chinese New Year. FDI from Asian and US economies rose faster than average.
"FDI from 10 Asian economies rose 11.6 percent, FDI from the U.S grew 43.3 percent from the same period last year. Investment from the EU dropped close to 14 percent year on year." said Shen Danyang, Spokesman, Ministry of Commerce.
The government has shifted its focus on attracting FDI inflows to high-end manufacturing, services sector and energy saving industries. Investment into the services sector has shown faster growth rate.
"Investment in the services sector accounts for more than half of the total investment in the first two months of this year. China’s services sectors received 10.6 billion dollars in FDI, up 25 percent from the same time last year." said Shen Danyang, Spokesman, Ministry of Commerce.
Outbound direct investment by Chinese firms totalled 11.5 billion dollars in the January-February period, down 37.2 percent from a year earlier. The sharp drop was due to a high comparison base caused by oil and gas producer CNOOC’s 15 billion dollar acquisition of Nexen in early 2013.

Alibaba's U.S. IPO estimated at $15 bln

Chinese e-commerce giant Alibaba Group has decided to hold its long-awaited IPO in the United States. The decision ends months of speculation after a Hong Kong listing didn't push through last year. But right now neither the NYSE nor the Nasdaq would comment on where exactly Alibaba would list.
Analysts say Alibaba could raise up to 15 billion U.S. dollars in the IPO. That would be the highest profile public offering since Facebook's 16 billion dollar listing in 2012.
This is seen as the second wave of major Chinese internet IPOs - Weibo and JD.com are two other key internet firms heading for U.S. listings.
Alibaba said on its website it might consider a future A-share listing so Chinese investors can share in the growth.

Source: CCTV

Moody's: China's growth to remain strong

Credit ratings agency Moody's expects China's economic growth to slow to the 7 and 7.5 percent range in 2014-15. But Moody's warns rising debt at the local government and corporate level may drag on growth.
Moody's says in a report that investment will be less crucial to China's sustainable growth but will remain an important driver.
The report also says the possibility of the central government having to offer financial assistance to local governments may constrain sovereign creditworthiness.
Moody's has changed China's outlook from positive to stable, and affirmed China's government's bond rating of Aa3.

China urbanization level expected to reach 60% by 2020

China on Sunday unveiled an urbanization plan for 2014 through 2020. The blueprint, called The National New-type Urbanization Plan, aims to assist rural residents moving to cities in an orderly manner.
The plan aims to have permanent urban residents make up 60 percent of the population by 2020, also at that time, registered residents who hold "hukous" should account for about 45 percent.
The government hopes that raising the number of legitimate urban residents will boost consumption and the service sector. To fund the urbanisation drive, the State Council will allow local governments to issue municipal bonds.
Source: CCTV

Xinhua In-Depth News Analysis: U.S. weighs further options with Russia in response to Ukraine crisis

 The United States is mulling its next steps toward Russia as Moscow seems unperturbed by what many have described as tepid U.S.-imposed sanctions over the crisis in Ukraine.
The United States sharply criticized Russia for its actions in Crimea earlier this month, and U.S. President Barack Obama will head to the Netherlands next week to press European leaders to get on board with harsher sanctions on Russia while attending the 2014 Nuclear Security Summit.
So far, the U.S. sanctions have consisted mainly of asset freezes and restrictions on travel to the West for a handful of Russians. Obama's critics said the move has given a green light to Russia to do whatever it pleases, as thus far no harsh punishment has come from Washington.
Indeed, the Kremlin took to Twitter earlier this week to mock Obama, with Deputy Russian Prime Minister Dmitry Rogozin tweeting out: "Comrade @BarackObama, what should do those who have neither accounts nor property abroad? Or U didn't think about it?"
Others said there is very little the United States can do, believing that harsher sanctions are unlikely to force Russia to reverse course and pull out of Crimea, which last weekend voted overwhelmingly to separate from Ukraine and become part of Russia.
Those sentiments were echoed by former U.S. Defense Secretary Robert Gates, who holds a PhD in Russian and Soviet history. He said recently U.S. sanctions are unlikely to deter Russian President Vladimir Putin.
Experts said Washington is highly unlikely to take any sort of military action after more than a decade of conflicts in Iraq and Afghanistan and with a public averse to involvement in crises that do not directly involve the United States.
Republican Strategist Ford O'Connell held the same opinion, but told Xinhua that if Washington did take that route, it would be a coordinated NATO effort.
Still, there are whispers on Capitol Hill about possible arming forces in Ukraine, Latvia, Estonia and Poland, but whether that becomes official policy depends on what Putin does next, O'Connell said.
David Clark, chairman of the Russia Foundation, told Xinhua that measures aimed at the Russian banking system and the stability of the ruble could have an immediate impact on Russia's economic interests.
The United States could also damage Russian interests by making more gas available for export as liquefied natural gas, reducing European prices and dependency on the Russian oil giant Gazprom, he said.
Russia currently supplies around a quarter of Europe's oil and natural gas, not to mention 40 percent of economic powerhouse Germany's gas, and Moscow has a deep trade relationship witheurozone nations, which some experts said could make Europe hesitant to impose harsh sanctions.
David Adesnik, visiting fellow at the American Enterprise Institute, told Xinhua that Obama has made "poor decisions" that may have emboldened Putin.
Putin's actions in Ukraine may have in part been because of a perception of American weakness, he said.
Meanwhile, Russia's Deputy Foreign Minister Sergei Ryabkov told Russian media on Wednesday that while Moscow does not want to use the Iran nuclear talks as leverage, Russia may have to.
Putin could theoretically share advanced nuclear and missile technology, effectively giving Iran what the United States wants to deny it, but such a move would be risky, as no nuclear power wants to admit a new member to the club, Adesnik said.
"More plausibly, Russia could subvert the sanctions against Iran," he added.

CPC meeting underlines further reform

Participants at a meeting of the Communist Party of China (CPC) on Monday decided that deepening reform would help China reach its economic and social development targets this year.
The meeting of the Political Bureau of the CPC Central Committee was convened to discuss the government work report to be submitted for deliberation at the annual plenary session of the National People's Congress, the top legislature, in early March.
China achieved better-than-expected results last year, despite experiencing more difficulties than expected, according to the meeting.
Participants concluded that China will continue to implement a proactive fiscal policy and prudent monetary policy, stabilize and improve its macro-control policies, keep economic growth "within a rational zone" and elevate growth quality and efficiency in order to achieve this year's goals.
The country has a solid foundation to attain medium and high-speed economic growth in the near future, according to the meeting, presided over by General Secretary of the CPC Central Committee Xi Jinping.
A decision was made to strive for new breakthrough in major areas of reform, construct an open economy, push forward "high-level" opening up and foster new world-class competitive edges, with the emphasis on restructuring the economic system.
It was also decided that the role of domestic demand as a "major engine" to drive economic growth should be bolstered, agricultural modernization and reform should be advanced, and more efforts should be devoted to protect the environment and fight air pollution.
The meeting also stressed the importance of urbanization, innovation, healthcare reform, the development of education and cultural sectors, and improving people's living standards.

SOURCE:   XINHUA

Challenging GDP Obsession. China's leadership takes "big exam" Part II

CHALLENGING GDP OBSESSION
Within 24 hours on Dec. 17, 2013, a total of 18 cement plants in Hebei were demolished, just one of the ways the province is slashing overcapacity. The target is to reduce cement production by 60 million tonnes by the year of 2017.
Cuts are also in the offing in steel production (60 million tonnes), coal production (40 million tonnes) and flat glass (30 million weight boxes).
Setting these targets is no easy job. For years, increasing industrial capacity meant a better place in the regional GDP rankings, even though production may already have been redundant. This resulted in dwindling profits and aggressive pollution.
Changes to the mindset of provincial officials came out of the "mass-line" campaign, which is not only a moral movement but addresses pragmatic concerns.
At the criticism and self-criticism session in Hebei last September, Xi described how determination was the key to structural adjustment. "Do you think the GDP winner takes all? Does a higher ranking make problems seem more decent?" Xi asked. "Over a half of the ten cities with the most serious pollution are in Hebei. Strap yourselves in for some adjustments. That is what you owe the public and history."
Xi's demands might be challenging for local governments, but many officials are relieved to be freed from the yoke of GDP obsession, said Hebei Governor Zhang Qingwei.
"We believe green GDP is a long-term, fundamental solution," Zhang added.
Luquan, a small city in Hebei, was once dubbed a "city of cement" and boasted a cement production capacity of 50 million tonnes. With cuts to overcapacity, Luquan slashed four fifths of its cement output. As the cement industry wanes, information, logistics and recreational services wax.
In 2013 Luquan's industrial electricity consumption fell by 130 million kwh, thanks to cuts in production, but fiscal revenue did not shrink. On the contrary, it increased by 360 million yuan (58 million U.S. dollars).
Since Xi took over as CPC general secretary, the economy has been under pressure and doubts about the sustainability of growth have been heard from abroad.
"It is not impossible for China to secure a faster growth, but we are refraining from seeking it," Xi said. "We would rather take initiative and gear down a little to handle the matter of long-term development with a fundamental solution."
It is not just officials who have changed their perspective. Ordinary people are seeing things differently too.
On an inspection tour about poverty alleviation in December 2012, Xi told Tang Rongbin, a 70-year-old farmer from a Hebei mountain village, that confidence could turn sand into gold. "The General Secretary told me to pay attention to my grandson's education, as hope always lies with the next generation," Tang recalled.
The 70-year-old also sees hope for himself. "I have joined with other villagers and obtained a loan to raise cattle. Selling a calf can bring in about 15,000 yuan," he said.
Xi's visit and the ensuing campaign have brought about changes to the county in many aspects, said Hao Guochi, local Party chief in Fuping.
The most obvious one, he said, happened in people's minds.
The Strengh of People and Party
During its 65 years of power, the CPC has made China into the world's second largest economy, but the Party, with its 85 million members, is well aware that legitimacy does not spring solely from economic development.
According to the constitution of the CPC, "the Party has no special interests of its own, apart from the interests of the working class and the broadest masses of the people."
"Winning or losing public support is an issue that concerns the CPC's survival or extinction," Xi said in June last year. According to Xi, the mass-line is the "lifeline of the Party" and a "fundamental route of work."
The campaign requires the Party gives top priority to the interests of the people; maintains the closest possible ties with them; exercises power on their behalf; shows concern for them; and works in their interests.
An ardent advocate of the campaign, Xi has been to Hebei many times over the past year to learn about public concerns and stay in touch with the masses. For impoverished Fuping County, Xi's visit in Dec. 2012 has indeed been a game changer and the Party-people bond there has never been stronger.
"Xi came into my house, sat down and didn't care if the place was dirty at all," 69-year-old farmer Tang Zongxiu who lives in Luotuowan, a village in Fuping, said as she recalled the President's visit more than a year ago.
"He asked about how much we earned each year, whether we had enough to eat, whether we had enough to get through the harsh winter, how long it took for the kids to get to school and whether we had easy access to health care," Tang said.
Only about three hours from Beijing, Fuping County has been on a national poverty alleviation plan since 1994. Xi spent over 20 hours in the village and his visit has kindled hope that the county might make its way off that list before long, as an influx of funds followed the visit.
"The General Secretary knows life here is difficult," she said, adding that she was astonished by Xi's affability when they chatted to each other.
In like manner, a later visit to Tayuan in Zhengding County Xi not only brought joy to the hamlet, but also called back old memories.
Xi was Party chief of Zhengding County from 1983 to 1985. Many former county officials still remember him as the young man in his late 20s, who would squat down under the tree outside the government canteen just like all his colleagues and eat with everyone.
"The tide of time has not washed away his rustic charm," said Yin Xiaoping, current Party chief in Tayuan. "The General Secretary remains, by nature, one of the masses."
Mass-line means the CPC doing everything for the people, relying on people in every task, and putting the principal "from the masses, to the masses" into action. Nonetheless, a considerable distance does exist between the Party and the people.
Sun Ruibin, Party chief of the city of Shijiazhuang, the capital of Hebei, was embarrassed during a trip to a village in northern Hebei, where his visit literally surprised the locals.
"I remember one villager said 'Hey, I can barely see you these days. This time, I finally got you,'" Sun said, "It just struck me how distant I had been from the people I had vowed to serve."
The mass-line campaign should put an end to such embarrassing episodes.
The new leadership has repeatedly warned that alienating itself from the masses constitutes the biggest threat to the Party. Xi expects Party officials to reflect on the questions of whom they serve and rely on, and from whom they draw power during their daily work. Failing to answer these questions correctly will cut the Party off from the people, says Xi, just as if they were behind a glass wall.
As the Party constitution reads, the biggest political advantage of the Party lies in its close ties with the masses while the biggest potential danger for it as a governing party comes from its divorce from them.
To serve the people and meet their expectations, Hebei has solicited public opinion through interviews, questionnaires, e-mails and hotlines, and invited grass-root representatives to advise provincial officials on those issues. To date, authorities have received more than 460,000 suggestions from the public, and have tried to turn them all into concrete action.
Gao Feng, 63, a citizen of Shijiazhuang, was delighted when the rubbish heap in his neighborhood was turned into a public green space last summer, soon after locals complained online.
"I don't really understand the 'mass-line' campaign, but I know that the CPC has done good deeds for the people, and that's good enough for me," Gao said.
Source: Xinhua

Xinhua Insight: China's leadership takes "big exam" Part I

When the leaders of Communist Party of China (CPC) packed up and left the village of Xibaipo in north China's Hebei Province on March 23, 1949, the world changed forever.
Their destination was Beijing, about 350 km away. The journey from a mountain village to the city where emperors had ruled the Middle Kingdom for more than five centuries was epoch-making.
The question on everyone's lips was how long they would stay there. Today, the CPC leaders are still beating themselves up over the same question.
Party archives suggest that in 1949 the Party leaders were not dizzied by their success, following a string of military success against Kuomintang troops: They were alert.
Mao Zedong compared the trek to "going in for a big exam in the capital city" and pledged not to fail as Li Zicheng, a farmer who led an insurrectionist army in the seventeenth century did. Li only keep his grip on the city for 42 days after he deposed the Ming emperor.
Sixty-five years after leaving Xibaipo, the CPC is still in power, and the People's Republic of China, founded six months after Mao arrived in the capital, is the world's second largest economy.
Xi Jinping, elected general secretary of the CPC Central Committee in November 2012, brought up "the big exam" again when he visited Xibaipo in last July.
"Six decades have passed. We have made great progress. Chinese people are becoming independent and affluent, but we still face complicated challenges and severe problems. To be honest, the Party has a long way to go to pass the big exam," Xi told the people of Xibaipo.
The 18th CPC National Congress in November 2012 was in no doubt that the Party still had plenty of tests to face in governance, reform, opening up and developing a market economy. "The Party is confronted with increasingly grave dangers: lack of drive, incompetence, being out of touch with the people, corruption and other misconduct," read the congress report.
To deal with the problems, the new leadership has borrowed some wisdom from the old. What Mao's had said on Party members' work prior to the founding of New China in 1949 still has ideological and historical significance today, Xi said in Xibaipo.
In March 1949, Mao called on the whole Party to display modesty and prudence while guarding against conceit and impetuosity, to work hard and live simple lives.
Xi believes that Mao's remarks echoed lessons learnt from ups and downs in Chinese history, summarized the process of the CPC's development and showed profound thoughts about how to keep the CPC's advanced nature and purity as a ruling party and maintain long-term stability of a new nation.
The current leadership's attempt to sustain and improve Party's rule is a national campaign that has been underway since last June, the "mass-line", a renewal of the bond between people and Party.
The campaign was expected to be a thorough cleanup of undesirable practices by civil servants and Party officials. The targeted behavior was formalism, bureaucratism, hedonism and extravagance: essentially, misuse of power.
Each of the seven members of the Standing Committee of the Political Bureau of the CPC Central Committee was assigned to supervise the campaign in a province. Xi got Hebei, where he made an inspection tour in July, paying tributes to Xibaipo, meeting local people and explaining why the Party needs such a campaign.
Two months later, he met members of the Party provincial committee, listened to them criticize one another and themselves about their lives and work, and told them what needed to be corrected. Then he made sure that they put their ideas into practice.
The feedback from the people in Hebei seemed positive.
"I will give him 100 (the highest score in Chinese school tests)," said Liu Chao, a Hebei villager from Tayuan where Xi went in July. "I met Xi. He is very down-to-earth."
He Yu, a resident of Zhengding County in Hebei, gave a score of 80: "I would like to leave room for improvement. People still worry that the campaign is a one-off thing. We expect the Party to continue improving its working practices."
Xi Jinping has called belief the "master switch" for the CPC. "Ideals and belief are like vitamins for communists," said the president of the second phase of the "mass line" campaign in January this year.
Without ideals and belief the Party will suffer from "vitamin deficiency" and consequently get "rickets". Cultivating belief in every Party member is the foremost task of the mass-line campaign.
It was unprecedented for a CPC leader to take part in the session in Hebei last September where provincial officials talked their problems.
Xi shared his thoughts with the CPC Hebei provincial committee in August: "I don't want to hear fancy words from you when I take part in your sessions. I want real criticisms and self-criticisms."
And the criticisms were for real. They analyzed their own conduct, exposed their failings, analyzed the causes and made plans to set things right. Shortcomings confessed to included obsession with show off work performance, slackness and self-indulgence.
Zhou Benshun, secretary of the Hebei committee believes that frailty of belief and poor theoretical study as the root causes of bad working practices.
Xi told Hebei officials never to waver in their faith and strive for "the common ideal of socialism with Chinese characteristics".
"If you cannot rouse yourself and our Party cannot rouse itself, then who will wake you up?" Xi asked.
The Hebei session was covered by state news institutions nationwide and became a textbook case of how criticism sessions should be conducted.
Previous Chinese leaders have expounded the importance of faith to the CPC and set examples as models of firm belief.
In 1925, Mao Zedong wrote, "I have faith in communism and advocate a proletarian social revolution."
Deng Xiaoping, who orchestrated reform and opening-up, told a CPC national conference in 1985 that: "In the past, however small or weak our party was, and whatever difficulties it faced, we maintained a great fighting capacity thanks to our faith in Marxism and communism. With common ideals we have strict discipline. Now, as in the past and in the future, that is our real strength."
Addressing a symposium in 1999 to mark the 78th anniversary of the CPC, Jiang Zemin, then general secretary of the central committee, said "Communists should adhere to socialism and communism as their fundamental political convictions, as well as Marxist dialectical materialism and historical materialism as their outlook on the world."
In 2006, Hu Jintao, Xi's predecessor, told a ceremony for the 70th anniversary of the Long March that, "a lofty ideal and firm belief should be upheld as a great banner for pooling cohesive force and inspiring people to advance, as well as the source of strength for overcoming difficulties and winning battles."
In the CPC's 93 years, communists have shed their blood and sacrificed generation after generation in their pursuit of national independence and liberation. Faith has guided and supported the CPC through decades of revolution and construction in peaceful times. In the face of temptations and challenges, Xi has called on all Party members to use their faith to make themselves "indestructible."
Once communists cast aside their ambitions, it is easy for them to get lost, become utilitarians and begin to pursue immediate pleasure. Some will use official positions to seek personal gain, the president warned.
The mass-line campaign has taken CPC members and officials on a purifying journey by teaching them to "look in the mirror, straighten their attire, take a bath, and seek remedies."
It has inspired CPC members to face up to their weak faith and spiritual "vitamin deficiency". It has blown the dusty cobwebs from their minds.
In an exhibition at Xibaipo about its revolutionary past, there is a display of six restrictions the CPC imposed on officials 65 years ago: do not celebrate one's birthday; do not give gifts; fewer toasts at dinners; less clapping at meetings; do not name a place after a person; do not honor a CPC official in the same way as prominent communist leaders such as Karl Marx and Vladimir Lenin.
In his visit last July, Xi stood in front of the board and crosschecked the rules with what the Party does today. His conclusion was that not all rules are fully observed.
The CPC has always believed the behavior of its members, officials in particular, plays a serious part in its rule. The current CPC leaders introduced an eight point rule a month after they were elected in November 2012 as the first battle in the war against corruption and bureaucracy.
The rule tells CPC officials to adopt a no-nonsense approach without ceremony and with less visits and meetings.
The rule may have its origins back in the early 1980s, when Xi was party chief of Zhengding County in Hebei. Locals still recall how Xi reacted to officialdom when he was a county official.
In the summer of 1983, Xi's jeep got stuck in the mire on a rural road. When they noticed that the passengers were officials, villagers refused to lend a hand and swore at them. Xi stopped one of the officials from berating the villagers and told them to reflect on why villagers might react this way.
The incident was a prelude to a regulation requiring officials to reject bureaucracy, take the lead in eschewing unhealthy practices, cut meetings and receptions; and value work efficiency.
Cheng Baohuai, a retired official from Zhengding, said the eight point rule "reflects the same revolutionary tradition" as the Zhengding regulation of 30 years ago.
The eight point rule preceded the mass-line campaign. Reflecting on their work and correcting bad practices are main contents of criticism and self-criticism sessions for Party officials during the campaign.
Over the past year, Party discipline has repeatedly barred officials from giving and receiving gifts bought with public money, and stopped them from going to fancy dinners during festivals and holidays. Xi has taken the lead in these measures. There are no traffic controls nor closure of public places during Xi's domestic inspection tours.
Since 2013, the number of official meetings, documents and news reporting for the Political Bureau of the CPC Central Committee were reduced. The efficiency of administrative approval has been raised. Spending on receptions, overseas trips, and vehicles have been reduced. Festival exhibitions were cut by more than a half. In 2013, more than 30,000 Chinese officials were punished for violating the eight point rule.
During his visits to Hebei for the mass-line campaign, Xi told the officials to treat themselves as ordinary Party members in implementing the rules. All people are equal in enforcing work style regulations, Xi told them.
Locals felt the changes. Chen Sumei runs a restaurant at Xibaipo, now a famous tourist site. A large number of visitors here are Party and government officials from across the country.
She told Xinhua that fewer and fewer of her customers paid for their dinners with public money. "More and more customers pay out of their own pockets, so they prefer less expensive dishes," she said.

Le boom de l’énergie menace les ressources en eau

"Pour rendre l'eau accessible – c'est-à-dire la pomper, la traiter, la transporter, ladistribuer – il faut de l'énergie. Et, pour fournir de l'énergie, il faut de l'eau, beaucoup d'eau même : 600 milliards de mètres cubes par an". Ces deux ressources sont intrinsèquement liées « pour le meilleur et pour le pire », prévient l'ONU dans son cinquième rapport mondial sur « La mise en valeur des ressources en eau », rendu public le 21 mars, à Tokyo.

A la veille de la Journée mondiale de l'eau, plutôt que de dresser le tableau traditionnel des régions pauvres de la planète où les populations n'ont pas accès à l'eau, les Nations unies ont décidé, cette fois-ci, de se concentrer sur l'interdépendance eau-énergie, annonçant des « défis majeurs ». Le « bien-êtrehumain » en dépend tout comme le développement (durable ou pas), expliquent les experts des 31 entités de l'ONU-Eau qui ont travaillé sur le rapport.
Certes, l'agriculture reste de loin l'activité la plus consommatrice d'eau puisqu'elle capte 70 % de la ressource, à comparer aux 10 % destinés aux usages domestiques. Mais cette proportion pourrait diminuer Ã  condition, insistent les spécialistes, de réaliser des progrès dans l'irrigation notamment, pour limiter les gaspillages. En revanche, croissance mondiale oblige – démographique et économique –, l'industrie est appelée à peser de plus en plus lourd sur les prélèvements hydriques. Or les trois quarts des 20 % d'eau qui lui reviennent servent à produire de l'énergie.
Déjà, aux Etats-Unis et dans certains pays d'Europe du Nord, l'eau utilisée pourfaire fonctionner les centrales thermiques pèse autant, voire plus (50 %) que celle captée par l'agriculture. Ce pourcentage tombe à 10 %, environ, en Chine. Mais qu'en sera-t-il dans quelques années ? On s'attend en effet à voir grimper la demande en électricité de 70 % d'ici à 2035 pour combler majoritairement les besoins des deux géants d'Asie, la Chine et l'Inde.
Qu'il s'agisse d'extraire charbon, gaz, pétrole ou d'irriguer maïs et colza destinés àêtre transformés en agrocarburants, ou encore de refroidir des centrales thermiques et nucléaires qui fournissent 80 % de l'électricité mondiale, l'industrie va devoir composer avec une ressource qui se raréfie. Dans plusieurs régions du globe, des nappes phréatiques ont vu leur niveau baisser ou leurs eaux devenirsaumâtres.
Déjà, un aquifère sur cinq est surexploité aujourd'hui et ne renouvelle plus sesréserves. D'ici à 2050, alerte l'ONU, 2,3 milliards de personnes vivront dans des zones soumises à un stress hydrique sévère, surtout en Afrique du Nord et en Asie.
Le secteur de l'énergie ne sera pas épargné. En août 2012, la sécheresse qui a sévi dans plus de la moitié des Etats-Unis a opposé fermiers qui essayaient depréserver leurs ressources hydrauliques et industriels du gaz de schisteempêchés de réaliser des fracturations hydrauliques pour aller chercher le pétrole. Une pénurie que subissent déjà de nombreux grands barrages dans le monde.
En France, des centrales nucléaires installées le long du Rhône ont dû freiner leur activité au cours d'épisodes caniculaires : la chaleur des eaux du fleuve rendait plus complexe le refroidissement des réacteurs.
Le changement climatique, qui provoque aussi une surexploitation des aquifères, va accentuer les menaces et les coûts financiers. La Californie s'inquiète du montant de la facture énergétique nécessaire au fonctionnement des dix-sept usines de dessalement qu'elle a prévu de construire, afin de remédier Ã  la pénurie en eau potable.
Et ce cercle infernal n'est pas prêt de s'arrêter. La consommation Ã©nergétique mondiale a crû de 186 % en quarante ans. Depuis les années 1980, l'homme prélève 1 % de ressource hydrique supplémentaire chaque année. Au rythme qui se dessine actuellement, il faudrait trouver 55 % d'eau en plus d'ici à 2050 pourrépondre Ã  l'ensemble des besoins.
Si les modes de production d'énergie, de chauffage, de carburant ne sont pas tous aussi gourmands en eau, ce sont les plus « hydro-intenses » qui devraientcontinuer Ã  dominer, selon l'Agence internationale de l'énergie. « Nous allons vers davantage de gaz de schiste et de sables bitumineux, résume Richard Connor, principal auteur du rapport. Plus d'agrocarburants également. On en fait partout, y compris dans les régions où il est nécessaire d'irriguer ! »
En dépit des ses grands besoins en eau et de sa capacité à la polluer, le charbon devrait conserver sa première place dans la région Asie-Pacifique. Les experts notent que 15 à 18 milliards de m3 d'eau douce sont contaminés chaque année par la production de combustibles fossiles. « Le risque de conflit entre les centrales énergétiques, les autres utilisateurs de ressources en eau et les défenseurs de l'environnement est croissant », estiment-ils.
DES ÉNERGIES RENOUVELABLES
Si ces technologies progressent – le secteur photovoltaïque a augmenté de 42 % depuis 2000, le solaire de 27 % –, la tendance n'est pas prête de s'inverser, tant que la question du stockage de l'électricité n'est pas réglée. Et que les combustibles fossibles restent fortement subventionnés au niveau mondial (380 milliards d'euros en 2012).
In fine, l'ONU souligne à quel point l'eau, considérée comme un don de la nature, est gaspillée. Son prix, d'abord, ne reflète pas sa valeur. Quant à sa gestion, deux logiques s'opposent : celle des gouvernements qui l'abordent essentiellement en termes de santé publique et de bien-être. Et celle des industriels de l'énergie, pressés de répondre Ã  la demande mondiale d'électricité.
« L'interdépendance des ressources en eau et en énergie appelle de la part de tous les acteurs une coopération beaucoup plus étroite, car il est clair qu'il n'y aura pas de développement durable tant qu'il n'y aura pas de meilleur accès à l'eau et à l'énergie pour tous », affirme la directrice générale de l'Unesco, Irina Bokova.

Source: Le Monde

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