PRC Economy and Industry: News and Discussions

rundstedt · Post by **rundstedt** » 07 Jun 2009 22:34

Akshut wrote:
rundstedt wrote:
That's a totally fake news.
I don't think that the news is from Xin-hua

Withdrawing Burma and Sudan.

Yogi_G · Post by **Yogi_G** » 08 Jun 2009 09:19

China Burma Sudan all deserve each other, how can they separate. While China and Burma are police states Sudan is a thief state

completely lawless and without a proper government

vsudhir · Post by **vsudhir** » 08 Jun 2009 21:42

So much for the 'China Price'

A new study says rising mainland wages and higher shipping costs, among other things, make Mexico a better choice for manufacturing.

A growing number of companies are moving beyond the usual considerations of labor and raw material costs in deciding where to produce goods to calculate the "total cost of ownership." That means tallying expenses associated with things such as storage and delays. By this light, the so-called China price, which always seemed to be at least 40% below U.S. costs on everything from bedroom furniture to telecom gear, isn't so low. In fact, China's once-formidable edge in manufacturing has all but disappeared in some industries, according to a new study by Southfield (Mich.) firm AlixPartners, which researches and consults on outsourcing.

Vipul · Post by **Vipul** » 09 Jun 2009 04:41

Chinese passing off fake drugs as 'Made in India'.

Are fake drugs manufactured in China being pushed into various African countries with the `Made in India' tag? The Indian government has long suspected this to be the case, but it now has definite evidence for the first time.

Last week, the National Agency for Food and Drug Administration and Control (NAFDAC) of Nigeria issued a press release stating that a large consignment of fake anti-malarial generic pharmaceuticals labelled `Made in India' were, in fact, found to have been produced in China.

New Delhi has registered ``strong protest'' with the Chinese mission and China's foreign trade ministry, according to sources in the commerce ministry.

India's High Commissioner in the Nigerian capital of Abuja, Mahesh Sachdev, had earlier written to then commerce secretary GSK Pillai, alerting him to the large seizure: ``While this is a case of a Chinese company exporting fake `Made in India' labelled medicines which has been accidentally exposed, it is unlikely to be an isolated incident. Indeed there is no reason for Nigeria to be the only country to be receiving such consignments.''

His letter went on to say: ``Fake foreign-made generics carrying `Made in India' label can do tremendous harm to our interests. It not only dents our image and takes our legitimate market share, it also erodes the distinction between generic and fake medicines that we have been campaigning for at WHO and WTO''.

Commerce ministry sources said: ``We have had many complaints about such fake drugs from China being offloaded as Indian drugs in countries like Ghana, South Africa, Ivory Coast and West Africa, in general, where India has a substantial market share. But so far there has been no formal complaint. This is the first time that such a large international consignment has been seized and this will be taken up strongly with the Chinese side.''

Sachdev in his letter said that he had spoken to the director-general of NAFDAC Dr Paul Orhii who said that the Nigerian preference for generics made such cases of fake drugs more common. He expressed NAFDAC's determination to curb circulation of substandard fake medicines.

India and China have been held primarily responsible for fake drugs in the Nigerian market in particular and Africa in general. About 60% of drugs in Nigeria are imported. Between 2001 and 2007, more than 30 Indian and Chinese companies were banned in Nigeria for exporting fake drugs to the country.

However, Dr Mira Shiva of the Initiative for Health Equity and Society (IHES) told TOI that both India and China being large manufacturers of generics, multinational firms would look to discredit the two countries and label their drugs as substandard, so that they would have greater access to the African markets. She warned against the two countries trying to run each other down before ascertaining the full facts in the case to rule out any orchestration, but added that India ought to be more careful to ensure the quality of the drugs exported as well as sold domestically.

The Bloody B@#!*^%S.

Purush · Post by **Purush** » 09 Jun 2009 11:48

F******g lowlifes...

just when you think they couldn't stoop any lower.

Note: Edited out additional comments that were reported by other posters

Akshut · Post by **Akshut** » 09 Jun 2009 13:47

Oh shit!! What paki-equal mo-fukrs..... These lizards are true to their colour

.
Let us export some dog-sh*t as packaged food and labelled as 'Made in China'. But! I dont think people will notice any difference.

derkonig · Post by **derkonig** » 09 Jun 2009 17:52

^^^^

Seriously, GoI & Indian industry has to take steps to protect IP & trademarks. Something has to be done regarding the 'Made in India' branding.

rundstedt · Post by **rundstedt** » 10 Jun 2009 20:09

Deleted flamebait

Akshut · Post by **Akshut** » 10 Jun 2009 20:46

rundstedt wrote:
Yogi_G wrote:China Burma Sudan all deserve each other, how can they separate. While China and Burma are police states Sudan is a thief state completely lawless and without a proper government
The most lawless country must be this one -- Delhi judges face 466 years' hard labour

A citizen from a country where there is no Judiciary system, need not tell us about our system. Go and try to stop those factories making lead filled toys, adulterated milk, FAKE DRUGS WITH "MADE IN INDIA" TAGS, Cell-Phones without IMEI numbers, fake watches, copy of Bajaj Pulsar and Rolls' Royce, weapons for terrorists, and what not!!
.
Oh I forgot how r u gonna do that, you ain't got any Judiciary System for that!!
.
Tell u runde-stud, it's very hard to maintain an equal Judiciary and Law system for Billion+ people. Just because it is hard, we are not going to turn away from it, like only other country with billion+ people. Maintaining Law does not mean to have police in abundance at every nook and corner, so that you can stop people talking to Foreign Media, but, it means that a small farmer has equal right as a big businessman. We know how poor Chinese farmer can oppose, only with his silted throat. So cut the BS and get out of here if you don't know the values of the nation, of which you are using the forum to spread your vile Commie propaganda.

rundstedt · Post by **rundstedt** » 10 Jun 2009 21:04

Akshut wrote:
rundstedt wrote: The most lawless country must be this one -- Delhi judges face 466 years' hard labour
A citizen from a country where there is no Judiciary system, need not tell us about our system. Go and try to stop those factories making lead filled toys, adulterated milk, FAKE DRUGS WITH "MADE IN INDIA" TAGS, Cell-Phones without IMEI numbers, fake watches, copy of Bajaj Pulsar and Rolls' Royce, weapons for terrorists, and what not!!
.
Oh I forgot how r u gonna do that, you ain't got any Judiciary System for that!!
.
Tell u runde-stud, it's very hard to maintain an equal Judiciary and Law system for Billion+ people. Just because it is hard, we are not going to turn away from it, like only other country with billion+ people. Maintaining Law does not mean to have police in abundance at every nook and corner, so that you can stop people talking to Foreign Media, but, it means that a small farmer has equal right as a big businessman. We know how poor Chinese farmer can oppose, only with his silted throat. So cut the BS and get out of here if you don't know the values of the nation, of which you are using the forum to spread your vile Commie propaganda.

virtual concept vs concrete wildness.
polices with rods or machine guns in india streets vs bare-handed police in china streets.
Who are the freemen?

Akshut · Post by **Akshut** » 10 Jun 2009 21:13

rundstedt wrote: virtual concept vs concrete wildness.
polices with rods or machine guns in india streets vs bare-handed police in china streets.
Who are the freemen?

Tanks on city Squares, and guns used against unarmed students, no case registered, no report made of how many died, state controlled media, filtered internet, no one can speak against the government, no one can talk to Foreign Media without permission, only in China!!
.
No Rundi-stud we dont use tanks against our citizens in our own Capital, and that too against those demanding more freedom and democracy. Thnaks, we are not slaves of few thousand Commies.

rundstedt · Post by **rundstedt** » 10 Jun 2009 21:23

More flamebait. You've earned the warning you so crave.

vsudhir · Post by **vsudhir** » 10 Jun 2009 21:32

deleted by self

rundstedt · Post by **rundstedt** » 10 Jun 2009 21:38

vsudhir wrote:rundisted,

Sure. must be true because you say so. Next you will ferret out pics of the yindian versions of the long march and the great leap and cultural revolution also, am sure.

In any case, this is OT to the thread topic. Post on the PRC economy or take it somewhere else.

TIA.

These were sheme of china, Maozedong was preserved as bacon. culpable of punishment

Suraj · Post by **Suraj** » 10 Jun 2009 21:47

vsudhir, please stop feeding the troll. You'll earn a warning yourself if you persist. Thanks.

This thread has been cleaned up, and several off topic posts have been deleted, with just a few left behind to serve as the gist of the debate.

Folks, just report an offending post and keep away. You're not being smart by feeding trolls; you are being toyed with.

rundstedt · Post by **rundstedt** » 10 Jun 2009 21:56

Deleted. User banned.

John Snow · Post by **John Snow** » 10 Jun 2009 22:00

Admins lets get to fundementals is the name human sounding? to me inhuman to ignore him, give him eternal peace sitting in forbidden city.

atma · Post by **atma** » 11 Jun 2009 00:09

PLA martyr #2317831

shynee · Post by **shynee** » 14 Jun 2009 01:10

China's shoppers learn 'Made in China' hazard

rsingh · Post by **rsingh** » 14 Jun 2009 01:18

Expolts low by 25% in May because of Chinese govt regulation prohibiting expolts to Pig flew affected countries.

Chinmayanand · Post by **Chinmayanand** » 14 Jun 2009 03:16

shynee wrote:China's shoppers learn 'Made in China' hazard

When the Chinese govt kills its infants with infected milk, there is less reason to believe that it might be supplying quality medicines.Would like to see some "quality report" on chinese drug companies.

Katare · Post by **Katare** » 14 Jun 2009 23:38

I hate it when posters turn a serious economic thread into nukkad psyop bojitive news dhaga

Ameet · Post by **Ameet** » 16 Jun 2009 02:24

FDI in China tumbles

http://www.bloomberg.com/apps/news?pid= ... sDZV9.NkVs

Highlights:

Foreign direct investment in China fell for an eighth month from a year earlier as companies cut spending to weather the worst economic slump since the Great Depression.

Investment slid 17.8 percent in May to $6.38 billion, the commerce ministry said at a briefing in Beijing today, after falling 22.5 percent in April.

The Chinese economy expanded 6.1 percent in the first quarter from a year earlier, the slowest pace in almost a decade. Full-year growth may be 7.5 percent, according to a Bloomberg News survey of economists last month.

Foreign-invested businesses account for 30 percent of industrial output, 55 percent of trade and 11 percent of urban jobs, according to the commerce ministry.

shynee · Post by **shynee** » 17 Jun 2009 09:40

China to Chennai is the new route for spurious medicines

CHENNAI: Close on the heels of Nigerian authorities unearthing Chinese-made drugs with fake ‘Made in India’ labels, the Central Drugs Standard Control Organisation (CDSCO) here has stumbled upon a racket at Chennai port involving the use of fake labels and invoices to ship spurious Chinese drugs into Indian cities.

rsingh · Post by **rsingh** » 19 Jun 2009 00:52

I hate it when posters turn a serious economic thread into nukkad psyop bojitive news dhaga

Information is correct. You get the massage or not..........that is another question. Where were you when Chini were shiting around with flimsy reasons for lower exports in Jan 2009 and Feb. I post one per month with correct information with satirical content. Take it easy.

Sanjay M · Post by **Sanjay M** » 19 Jun 2009 11:41

Chinese Electric Car Coming to USA

Katare · Post by **Katare** » 21 Jun 2009 09:39

rsingh wrote:
I hate it when posters turn a serious economic thread into nukkad psyop bojitive news dhaga
Information is correct. You get the massage or not..........that is another question. Where were you when Chini were shiting around with flimsy reasons for lower exports in Jan 2009 and Feb. I post one per month with correct information with satirical content. Take it easy.

Singh,

I did not address my post to any one individual, I am sure whatever information you are talking about might be correct.

vsudhir · Post by **vsudhir** » 22 Jun 2009 06:23

x-post

Andy Xie: Chinese Banks Funding Commodities Speculation, Casting Doubt on Recovery

Worthwhile read, IMHO.

Some excerpts:

China's credit boom has increased bank lending by more than 6 trillion yuan since December. Many analysts think an economic boom will follow in the second half 2009. They will be disappointed. Much of this lending has not been used to support tangible projects but, instead, has been channeled into asset markets.

Many boom forecasters think asset market speculation will lead to spending growth through the wealth effect. But creating a bubble to support an economy brings, at best, a few short-term benefits along with a lot of long-term pain. Moreover, some of this speculation is actually hurting China's economy by driving asset prices higher.

nutshell : good part of the vaunted 'stimulus' is by leaning on banks to lend, and state-owned banks lent by guangxi to party favorites who're now dabbling in speculative commodity trades.

The current surge in commodity prices, for example, is being fueled by China's demand for speculative inventory. Damage to the domestic economy is already significant. If lending doesn't cool soon, this speculative force will transfer even more Chinese cash overseas and trigger long-term stagflation.

Commodity prices have skyrocketed since March....The weak global economy can't support high commodity prices. Instead, low interest rates and inflation fears are driving money into commodity buying.
...
The iron ore market has been brutal for China, partly due to China's own inefficient system. China imports more ore than Europe and Japan combined. Skyrocketing prices have cost China dearly.

For four decades before 2003, fine iron ore prices fluctuated between US$ 20 and US$ 30 a ton. As ore was plentiful, prices were driven by production costs. After 2003, Chinese demand drove prices out of this range. Contract prices quadrupled to nearly US$ 100 per ton, and the spot price reached nearly US$ 200 a ton in 2008.....

China's local governments have been obsessed with promoting steel industry growth....But the spot market is relatively small, and mines can easily manipulate spot prices by reducing supply. On the other hand, numerous Chinese steel mills simultaneously want to buy ore to sustain production so their governments can report higher GDP rates, even if higher GDP is money-losing. China's steel industry is structured to hurt China's best interests.

As steel demand collapsed in the fourth quarter 2008 and first quarter 2009, steel prices fell sharply. That should have led to a collapse in ore demand. But the bank lending surge armed Chinese ore distributors, giving them money for speculating and stocking up....

What is happening in the commodity market is glaring proof that China's lending surge is hurting the country. Even more serious is that it is leading Chinese companies away from real business and further toward asset speculation – virtual business...

xie lays out the algorithm rather plainly, mussay.

As the economy weakened in late 2008, private lenders began demanding money back from distressed private companies. Loans from state-owned enterprises may have kept many private companies from going bankrupt. It has served to re-channel bank lending into cash for individuals and businesses that were in the lending business. This money may have flowed into asset markets. It is part of the phenomenon of the private sector withdrawing from the real economy into the virtual one.

It's worrisome that businessmen have become de facto fund managers and speculators. This happened 10 years ago in Hong Kong, and since then the city's economy has stagnated. Some may argue that China has SOEs to lead the economy. However, private companies account for most employment in China, even though SOEs account for a larger portion of GDP.

Now, the government is spending huge amounts of money to provide temporary employment for 2009 college graduates. If private sector employment doesn't grow, the government may have to spend even more next year. The government is using fiscal stimulus and bank lending to support economic recovery. But the recovery may be a jobless one. China needs a dynamic private sector to resolve the employment problem.

We are seeing a dark side to the lending surge as commodity speculation hurts the economy. More lending may lead to higher commodity prices, threatening stagflation. Cheap loans benefit overseas commodity suppliers, not necessarily the Chinese economy. Lending policy should consider this self-inflicted damage.

Many analysts argue GDP growth follows loan growth, and inflation is a problem only when the economy overheats. This is naive. Borrowed money channeled into speculation leads to inflation. And China may face a lasting employment crisis if private companies don't expand.

Last line is bang on. Exactly what happened in japan post 1990 and in the greenspanian US in the 21st century.

This lending surge proves China's economic problems can't be resolved with liquidity. China's growth model is based on government-led investment and foreign enterprise-led export. As exports grew in the past, the government channeled income into investment to support more export growth. Now that the global economy and China's exports have collapsed, there will be no income growth to support investment growth. The government's current investment stimulus is tapping a money pool accumulated from past exports. Eventually, the pool will dry up.

And that is the bottomline.

vsudhir · Post by **vsudhir** » 23 Jun 2009 07:31

Despite Law, Job Conditions Worsen in China

The 17-year-old son of Wang Xingqiong (left) and Liu Hong died in a machine accident at a paper factory in Dongguan, China. Safety has long been a neglected issue in China's manufacturing regions.

DONGGUAN, China — Liu Pan, a 17-year-old factory worker, was crushed to death last April when the machine he was operating malfunctioned.

Somehow Mr. Liu became stuck in the machine, his sister Liu Yan recalled during a tearful interview in a village near the factory.

“When we got his body, his whole head was crushed,” Ms. Liu said. “We couldn’t even see his eyes.”

Investigating the accident, inspectors found a series of labor and safety violations at the factory, Yiuwah Stationery, which supplies cards, gift boxes and other paper goods to Disney, the British supermarket chain Tesco and other companies.

The investigators also discovered that Mr. Liu was hired illegally, at 15, below the legal age limit here. Disney has called the situation at the factory “unacceptable.”

In a statement issued Wednesday, Disney said it had instructed its vendors and licensees to “cease new orders of any Disney-branded products in the Yiuwah factory” until conditions were improved.

A spokesman for Tesco said that company was also working to improve conditions at the factory.

Tragic. An accident, worse a record of accidents in a desi factory would have brought the national media and netas and trade unions there in a jiffy, IMHO.

sampat · Post by **sampat** » 25 Jun 2009 22:08

Chinese going shopping with 2 Billion USD

China's government to send to Finland contracting and investment delegation on 10 July. China's Vice Prime Minister Li Keqiang said a moment ago that the trade delegation's investment is worth about two billion U.S. dollars.

Li does not even accurately tell potential investment destinations, but the delegation comprises of 200-300 businessmen.

Nokia and Telia Sonera seems to have done some deal.

vina · Post by **vina** » 29 Jun 2009 10:27

The iron ore producers Brazil, Australia and India have China by the balls and are squeezing real hard. Panda is yelping in pain and desperately looking for some way to get prices down.

Here they float a desperate trial balloon / totally planted/ unverifiable "news" here is TOI let in all it's glory spinning it away as possibly hurting India!.

China's Iron Ore Discovery May Hit India's exports

putnanja · Post by **putnanja** » 29 Jun 2009 21:42

China Shows Signs of Asset Bubbles: Researcher

China is showing signs of asset price bubbles as a surge in new lending pushes up prices in the stock and real estate markets, the official Shanghai Securities News quoted a government think tank official as saying.

...
Separately, the People's Daily reports that China's torrent of bank credit is pouring too much money into big infrastructure projects and government-backed investments that sometimes have been poorly vetted.
...
Among the problems, the paper said, is the concentration of credit going to railways, highways, airports and other big government-sponsored undertakings, diverting loan opportunities from the small and medium-sized businesses that generate the most jobs.

The paper adds that banks see loans to government projects as sure bets, and have sometimes become lax in assessing risks and likely returns.

...

kmkraoind · Post by **kmkraoind** » 29 Jun 2009 21:58

http://blogs.wsj.com/chinajournal/2009/ ... rly-intact

Probably Chinese economy is also built on weak base.

vsudhir · Post by **vsudhir** » 30 Jun 2009 00:20

x-post frm the persp thread.

uh-oh. Sri Ambrose E Pritchard targets PRC banking sector this time.

China's banks are an accident waiting to happen to every one of us

China's banks are veering out of control. {I disagree. They're firmly under state control thanQ. Now if you're saying the chini state is veering out of control.... that would be news.}

The half-reformed economy of the People's Republic cannot absorb the $1,000bn (£600bn) blitz of new lending issued since December.

Money is leaking instead into Shanghai's stock casino, or being used to keep bankrupt builders on life support. {Predictably so, IMVHO}.

It is doing very little to help lift the world economy out of slump.
{Huh? And why is China obliged to help the world ekhanomy, pray? Weird presumptions these foreign barbarians have}

Fitch Ratings has been warning for some time that China's lenders are wading into dangerous waters, but its latest report is even grimmer than bears had suspected....

"Future losses on stimulus could turn out to be larger than expected, and it is unclear what share the central and/or local governments ultimately will be willing or able to bear."

Note the phrase "able to bear". Fitch's "macro-prudential risk" indicator for China threatens to jump from category 1 (safe) to category 3 (Iceland, et al). This is a surprise to me but Michael Pettis from Beijing University says China's public debt may be as high as 50pc-70pc of GDP when "correctly counted".

The regime is so hellbent on meeting its growth target of 8pc that it has given banks an implicit guarantee for what Fitch calls a "massive lending spree".

Bank exposure to corporate debt has reached $4,200bn. It is rising at a 30pc rate, even as profits contract at a 35pc rate...Roll-over risk is rocketing. China's monetary stimulus since November is arguably more extreme than the post-Lehman printing of the US Federal Reserve, though less obvious to the untrained eye....

Aha to the last one.

Andy Xie, a Sino-bear and commentator for Caijing, said Western analysts are in for a rude shock if they think that China's surging demand for raw materials implies genuine recovery.

Commodity speculators have been using cheap credit to play the arbitrage spread between futures and spot on the oil markets. They have even found ways to trade lumber to iron ore by sheer scale of leverage. "They've made everything open to speculation," he said.

Mr Xie thinks the spring recovery is an inventory spike, to be followed a double-dip downturn into next year as stimulus wears off.

So the regime is resorting to hazardous methods to keep excess factories humming: issuing a "Buy China" decree: using a plethora of export subsidies; holding down the price of coke, bauxite, zinc and other resources to lower production costs (prompting a complaint from America and Europe); and suppressing the yuan, again.

Protectionism is a risky game for a country that lives off global trade and runs a surplus near 10pc of GDP. Mr Pettis said he fears China is nearing its "Smoot-Hawley moment", repeating the US tariff blunder of 1930 that brought the world crashing down on Washington's head.

Two facts stand out about China's green shoots. While the Shanghai composite index is up 70pc since November, Chinese imports are down 25pc from a year ago. China is still draining real stimulus from the global economy.

Huh? wow. Funny how that works, eh?

Turbulent times ahead folks. China will goto war with someone, anyone, to distract masses' attn from their coming economic crisis.

svinayak · Post by **svinayak** » 01 Jul 2009 09:19

Please! Chinese Banks like all else Chinese is never out of control. This is a planned coup against the US. The Communist leaders are back to old style Communism. Kill the enemy while it is down.

I own a small manufacturing company. After watching our industry be decimated by cheap, government sponsored, product from china, the customers have now woke up and smelled the coffee. Everyone we speak to is worried about getting product from china, wants a local source to guarentee product, but have looked round and they aint there!!

This is now driving a rethink in the buying chain that I have heard is being replicated in other products.

All you buyers who buy from china ask yourselfs what happens when the pound drops further and your imports cost lots more, what happens when you cant get your supplies from china, what happens when the EU and Britain want to purchase green product. (a shoe made in china uses has twice the carbon footprint)

You need to fix your local supply NOW because you wont be able to do this 12 months from now.

Chinmayanand · Post by **Chinmayanand** » 01 Jul 2009 14:45

China warns of tit-for-tat over dairy ban

China is annoyed with India's decision to extend the ban on its milk and milk products, which expired on June 24, by another six months until December 24. It has threatened to ban Indian products in retaliation.

Liu · Post by **Liu** » 01 Jul 2009 19:32

kmkraoind wrote:http://blogs.wsj.com/chinajournal/2009/ ... rly-intact

Probably Chinese economy is also built on weak base.

well, the flat's toppling is a wonder!

have you noticed that the glasses of windows still intact,after such a toppling?

what high-quality glass~

kmkraoind · Post by **kmkraoind** » 02 Jul 2009 11:23

Liu wrote:
kmkraoind wrote:http://blogs.wsj.com/chinajournal/2009/ ... rly-intact

Probably Chinese economy is also built on weak base.
well, the flat's toppling is a wonder!
have you noticed that the glasses of windows still intact,after such a toppling?

what high-quality glass~

What the value of structure when the super structure design itself is flawed. No doubt, China's development is miraculous
, but that miracle will wades down once western countries pull out their FDI and stop buying Chinese projects.

The building resembles the foreseeable Chinese economy state.

Rishirishi · Post by **Rishirishi** » 02 Jul 2009 16:34

Liu wrote:
kmkraoind wrote:http://blogs.wsj.com/chinajournal/2009/ ... rly-intact

Probably Chinese economy is also built on weak base.
well, the flat's toppling is a wonder!
have you noticed that the glasses of windows still intact,after such a toppling?

what high-quality glass~

Wonder what will happen to rest of the buildings, built by the same builder. Would not want to move in there

krishnan · Post by **krishnan** » 02 Jul 2009 16:49

Chinese Goods = Built to last until transfer of ownership.