Category - China

China stuns financial markets by devaluing yuan for second day running

Stocks, currencies and commodities fall sharply across region as investors fear a stalling China economy and possible currency war despite Beijing’s assurances.

The Guardian, By Martin Farrer & Fergus Ryan, August 11

Beijing – China stunned the world’s financial markets on Wednesday by devaluing the yuan for the second consecutive day, triggering fears the world’s second largest economy is in worse shape than investors believed.

The move sent fresh shockwaves through global markets, pushing shares sharply lower and sending commodity prices further into reverse as traders feared the move could ignite a currency war that would destabilise the world economy.

There were widespread losses in Asia, and in Europe stock markets suffered falls of about 1%, with the FTSE 100 tumbling almost 2% at one stage.


The unexpected yuan devaluation saw Chinese stocks slump in Hong Kong, with the Hang Seng China Enterprises Index sliding 2.6%, extending its loss this quarter to 15%. The Shanghai Composite Index lost 1% to 3,886.32 and the CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 1.2% to 4,016.13 points.

Over a million people evacuated from China east coast as typhoon Chan-hom hits

RT, July 11

A heavy storm forced more than a million people to leave their homes on the Chinese east coast not far from Shanghai on Saturday. Typhoon Chan-hom might be the strongest to hit the region in over 60 years, the national weather service said.

Some 1.07 million people were evacuated from coastal areas of Zhejiang and the Jiangsu provinces south and north of Shanghai, ahead of the typhoon that reached the coast on Saturday, the Xinhua News Agency reported.

Although China’s National Meteorological Center downgraded the storm from super typhoon to strong typhoon on Saturday, it still whipped up winds of up to 160 kilometers (100 miles) per hour, CCTV reported. Dumping over 100 millimeters (4 inches) of rain since late Friday, the storm made landfall in the city of Zhoushan in Zhejiang province.

Why Is The U.S. Desperate To OK Slavery In Malaysia?

Huffington Post, By Akbar Shahid Ahmed, Ryan Grim & Laura Barron-Lopez, May 26

Washington – On Friday night, in an impressive display of dysfunction, the U.S. Senate approved a controversial trade bill with a provision that the White House, Senate leadership and the author of the language himself wanted taken out.

The provision, which bars countries that engage in slavery from being part of major trade deals with the U.S., was written by Sen. Bob Menendez (D-N.J.). At the insistence of the White House, Menendez agreed to modify his language to say that as long as a country is taking “concrete” steps toward reducing human trafficking and forced labor, it can be part of a trade deal. Under the original language, the country that would be excluded from the pending Trans-Pacific Partnership pact is Malaysia.

But because the Senate is the Senate, it was unable to swap out the original language for the modification. (The chamber needed unanimous consent to make the legislative move, and an unknown senator or senators objected.) So the trade promotion authority bill that passed Friday includes the strong anti-slavery language, which the House will now work to take out to ensure that Malaysia (and, potentially, other countries in the future) can be part of the deal.

Observers are left with a deeper question: Why, in the year 2015, is the White House teaming up with Republican leaders essentially to defend the practice of slavery?


But Malaysia also borders what is effectively China’s jugular vein: the Strait of Malacca.

Via Naked Capitalism: America’s First Black President Throwing Slaves Under the Bus on TPP

China: Massive Protest in Linshui Intense Repression and Resistance

Revolution News, By Jennifer Baker, May 16

Linshui County, China – Tens of Thousands of residents of the southwestern county of Linshui gathered in the morning and marched about 3km. Photos posted by the protesters on social media also showed violent attacks by a police tactical team(SWAT)and the resistance that followed lasted all day and well into the night.

The residents want (need) to have a proposed railway linking Dazhou to Chongqing pass through their county in the centre of Sichuan. The county currently has no railway, waterway, or airport.

Rage built up last week after residents found out that the authorities favor another plan – that the railway stretching more than 200km will instead by-pass Linshui and be routed through the late paramount leader Deng Xiaoping’s hometown Guangan, to the west of Linshui.

China rates its own citizens – including online behaviour

The Chinese government is currently implementing a nationwide electronic system, called the Social Credit System, attributing to each of its 1,3 billion citizens a score for his or her behavior. The system will be based on various criteria, ranging from financial credibility and criminal record to social media behavior. From 2020 onwards each adult citizen should, besides his identity card, have such a credit code., By Fokke Obbema, Marije Vlaskamp, Michael Persson, April 25

The regulations were announced last year, but have attracted almost no attention thus far in China and abroad. This week Rogier Creemers, a Belgian China-specialist at Oxford University, published a comprehensive translation of the regulations regarding the Social Credit System, which clarifies the scope of the system. In an interview with Dutch newspaper de Volkskrant he says: ‘With the help of the latest internet technologies the government wants to exercise individual surveillance’.

In his view this surveillance will have a wider scope than was the case under the former East German system: ‘The German aim was limited to avoiding a revolt against the regime. The Chinese aim is far more ambitious: it is clearly an attempt to create a new citizen.’

The intentions of the new system are not only economical, fighting fraudulent practices, but also moral. ‘This is a deliberate effort by the Chinese government to promote among its citizens “socialist core values” such as patriotism, respecting the elderly, working hard and avoiding extravagant consumption’, says Creemers. A bad ‘credit code’ can result in being not eligible for certain jobs, housing or credit to start a company. ‘On the labour market you might need a certain score to get a specific job.’

Via MathBabe: China announces it is scoring its citizens using big data

China makes big cut in bank reserve requirement to fight slowdown

Reuters, April 20

Beijing – China’s central bank on Sunday cut the amount of cash that banks must hold as reserves, the second industry-wide cut in two months, adding more liquidity to the world’s second-biggest economy to help spur bank lending and combat slowing growth.

The People’s Bank of China (PBOC) lowered the reserve requirement ratio (RRR) for all banks by 100 basis points to 18.5 percent, effective from April 20, the central bank said in a statement on its website

“Though the growth in the first quarter met the official target of around 7 percent for 2015, the slowdown in several areas, including industrial output and retail sales, has caused concern,” said a report published by the official Xinhua news service covering the announcement.

The latest cut, the deepest single reduction since the depth of the global crisis in 2008, shows how the central bank is stepping up efforts to ward off a sharp slowdown in the economy.

“The size of the cut is more than expected,” said Shenwan Hongyuan Securities analyst Chen Kang.

“It’s going to release around a trillion yuan (in liquidity) at least.”

Institute: China now world’s third-biggest arms exporter

AP, By Christopher Bodeen, March 15

China has overtaken Germany to become the world’s third-biggest arms exporter, although its 5 percent of the market remains small compared to the combined 58 percent of exports from the U.S. and Russia, a new study says.

China’s share of the global arms market rose 143 percent during the years from 2010-2014, a period during which the total volume of global arms transfers rose by 16 percent over the previous five years, the Stockholm International Peace Research Institute said in a report released Monday.

Its share of the world market was up from 3 percent in the 2009-2014 period, when China was ranked ninth among exporters of warplanes, ships, side arms and other weaponry, said the institute, known as SIPRI.

US anger at Britain joining Chinese-led investment bank AIIB

US statement says of UK membership that it is ‘worried about a trend of constant accommodation’ of China, in a rare public breach in the special relationship.

The Guardian, By Nicholas Watt, Paul Lewis & Tania Branigan, March 12

The White House has issued a pointed statement declaring it hopes and expects the UK will use its influence to ensure that high standards of governance are upheld in a new Chinese-led investment bank that Britain is to join.

In a rare public breach in the special relationship, the White House signalled its unease at Britain’s decision to become a founder member of the Asian Infrastructure Investment Bank (AIIB) by raising concerns about whether the new body would meet the standards of the World Bank.

The $50bn (£33.5bn) bank, which is designed to provide infrastructure funds to the Asia-Pacific region, is viewed with great suspicion by Washington officials, who see it as a rival to the World Bank. They believe Beijing will use the bank to extend its soft power in the region.

The White House statement reads: “This is the UK’s sovereign decision. We hope and expect that the UK will use its voice to push for adoption of high standards.”

China’s Tensions With Dalai Lama Spill Into the Afterlife

New York Times, By Chris Buckley, March 11

Hong Kong — Chinese Communist Party leaders are afraid that the Dalai Lama will not have an afterlife. Worried enough that this week, officials repeatedly warned that he must reincarnate, and on their terms.

Tensions over what will happen when the 14th Dalai Lama, who is 79, dies, and particularly over who decides who will succeed him as the most prominent leader in Tibetan Buddhism, have ignited at the annual gathering of China’s legislators in Beijing.

Officials have amplified their argument that the Communist government is the proper guardian of the Dalai Lama’s succession through an intricate process of reincarnation that has involved lamas, or senior monks, visiting a sacred lake and divining dreams.

Party functionaries were incensed by the exiled Dalai Lama’s recent speculation that he might end his spiritual lineage and not reincarnate. That would confound the Chinese government’s plans to engineer a succession that would produce a putative 15th Dalai Lama who accepts China’s presence and policies in Tibet. Their anger welled up on Wednesday, as it had a day earlier.

Zhu Weiqun, a Communist Party official who has long dealt with Tibetan issues, told reporters in Beijing on Wednesday that the Dalai Lama had, essentially, no say over whether he was reincarnated. That was ultimately for the Chinese government to decide, he said, according to a transcript of his comments on the website of People’s Daily, the party’s main newspaper.

“Decision-making power over the reincarnation of the Dalai Lama, and over the end or survival of this lineage, resides in the central government of China,” said Mr. Zhu, formerly a deputy head of the United Front Department of the Communist Party, which oversees dealings with religious and other nonparty groups. He now leads the ethnic and religious affairs committee of the Chinese People’s Political Consultative Conference, an advisory body that meets at the same time as the Legislature, or National People’s Congress.

Chinese president Xi Jinping to visit US, says diplomat

Chinese ambassador to US says officials from both countries are discussing Xi making first state visit to US later this year

AP, February 8

A top Chinese diplomat has said President Xi Jinping plans to make his first state visit to the US later this year, Chinese state media reported on Monday.

The official China Daily newspaper quoted China’s ambassador to the US Cui Tiankai as saying Chinese and US officials were discussing the visit. Cui told Chinese reporters on Sunday that no date had been determined yet.

The US national security adviser Susan Rice said on Friday that the US had invited both Xi and the Japanese president, Shinzo Abe, for state visits.