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China’s Yangtze river closed to ships by severe drought
The Yangtze river, the longest waterway in Asia and China’s most important shipping route, has been closed by the worst drought in 50 years that has left cargo ships stranded and 400,000 people without drinking water.
Water-levels have sunk as low as 10ft in the main thoroughfare of the 3,900-mile long river that stretches from the glaciers of the Tibetan plateau to the coastal city of Shanghai.
The Yangtze river basin is home to one-third of China’s population and is responsible for 40 per cent of the country’s economic growth.
Emergency teams have been sent to the river’s middle reaches around Wuhan in the central province of Hubei, to rescue two ships Read more…
Is our debt to China a national security risk?
China is the largest foreign holder of U.S. debt (with estimated holdings of $1.16 trillion) — and, according to a newly proposed U.S. military spending bill, this constitutes a national security concern for America.
The 2012 Defense Authorization Bill proposed Monday by Rep. Howard McKeon, the California Republican who chairs the House Armed Services Committee, includes a section on China. Why would China feature in a 2012 military budget? The answer is leverage. As the AFP noted, the question the bill poses is whether “Beijing could draw a military advantage from its status as a major U.S. creditor.”
There is some precedent for this concern. In early 2010, as Reuters reported, senior Chinese military officials urged that China sell some U.S. government bonds as a punishment of sorts for Washington having sold arms to Taiwan (although the threat was not Read more…
China’s yuan at record ahead of Washington talks
HONG KONG (MarketWatch) — China’s yuan rose to a fresh record against the U.S. dollar on Monday, edging up a fraction from its close in the previous trading session ahead of senior-level talks between Chinese and U.S. officials, slated for later Monday in Washington. China’s central bank set the official central parity rate for the U.S. dollar at 6.4988 yuan, compared to Friday’s setting of 6.5003 yuan. The level represented a record high against the dollar, according to the state-run Xinhua news agency. The U.S. dollar dropped below the 6.50-level for the first time on April 29, and was at 6.4955 around midday in East Asia on Monday, according to FactSet data.
Russian resources fuel China’s economic growth
China has increased high tech exports to Russia 300% in the past five years, while its imports from Russia are dominated by commodities, the Economic Development Ministry said.
China accounted for the bulk of Russia’s bilateral trade, which reached $60 billion in 2010. Russia has increased equipment exports by only 30% since 2005, according to a ministry report on economic relations with China.
No government documents pertaining to Russia’s relations with economic partners are ever published. There is a confidential part to Russia’s foreign economic strategy through 2020, which gives a detailed description of goals and risks related to contacts with each of Russia’s economic partners. Based on this strategy, two years ago the Economic Development Ministry worked out very specific country plans through 2012.
The 2010 report on the China plan progress is addressed to Deputy Prime Minister Alexander Zhukov, who chairs the Russian-Chinese Commission.
In 2009 Zhukov said shortly before Prime Minister Vladimir Putin’s visit to China: “Unfortunately, the share of machinery and equipment in our exports to China is sparse. Our plan is to increase exports of products with a high level of processing.”
However, the ministry report indicates that the progress has been unimpressive so far. Russia’s imports from China are $19bn Read more…
Osama bin Laden dead: hi-tech secret may end up in China
There are growing fears that top-secret stealth technology taken from the helicopter that crashed during the raid on the home of Osama bin Laden could be smuggled into China and cause a diplomatic row.
The American troops used thermite grenades to destroy the helicopter’s main body but its rear section was left intact and taken away by the Pakistani military soon after the night raid on Monday. It is feared that if Islamabad refuses a request from Washington for the return of the tail section that the issue could turn into a diplomatic rift Read more…
Why Is the U.S. Bankrolling IMF’s Bailouts in Europe?
humanevents
The World Bank and International Monetary Fund held their spring meeting April 14 to 18 in Washington, D.C. Both financial titans were created after World War II to foster economic cooperation and development around the globe. With 16.2% of the International Monetary Fund (IMF) shares, the United States is the largest shareholder among the 187 nations who belong to the fund—even though its managing director has always been a European.
Remote to most Americans, the IMF has been in the headlines recently because of its role as one of the financial rescuers of three European nations whose economies collapsed last year. Under Managing Director Dominique Strauss-Kahn (the former French finance minister, who is considered the leading Socialist candidate for president of France in 2012), the IMF has joined with the European Union to sculpt bailout packages for Greece, Ireland, and Portugal. Coupled with loans from the EU, the price tags on the bailout packages come to $157 billion for Greece, $122 billion for Ireland, and most recently, $116 billion for Portugal.
Obviously, these are quite substantial packages for the three economically devastated countries. They will become very relevant to U.S. taxpayers when they realize that, because we are the largest single contributor to the organization, and with Spain and Italy now Read more…
Global Press Freedom at Lowest Level in More Than Decade
Photo: Reuters
Journalists and activists participate in a rally calling for press freedom in central Ankara, Turkey, March 19, 2011 (file photo)
Freedom House, a U.S.-based group that monitors human rights around the world says the number of people with access to free and independent media has declined to its lowest level in more than a decade. In its newly released annual survey, the group says several key countries saw significant declines last year and that only one-in-six people live in countries with a press designated as free.
In this year’s annual index of global media freedom of 196 countries and territories, Freedom House says it rated 68 as “free” and the remaining two thirds as “partly free” or “not free.”
Freedom House Senior Editor Karin Karlekar says this is roughly an even breakdown, but a closer look reveals a different picture. “If you look at the population statistics, they are much bleaker, only Read more…
China unveils rival to International Space Station
Less than a decade ago, it fired its first human being into orbit. Now, Beijing is working on a multi-capsule outpost in space. But what is the political message of the Tiangong ‘heavenly palace’?
Visitors to the Airshow China exhibition look at a model of the Tiangong-1 space station. Photograph: Ranwen/Imaginechina
China laid out plans for its future in space yesterday, unveiling details of an ambitious new space station to be built in orbit within a decade.
The project, which one NASA adviser describes as a “potent political symbol”, is the latest phase in China’s rapidly developing space programme. It is less than a decade since China put a human into orbit for the first time, and three years since its first spacewalk.
The space station will weigh around 60 tonnes and consist of a core module with two laboratory units for experiments, according to the state news agency, Xinhua.
Officials have asked the public to suggest names and symbols for the unit and for a cargo spacecraft that will serve it.
Professor Jiang Guohua, from the China Astronaut Research and Training Centre, said the facility would be designed to Read more…
Chinese Know Real Value
The International Monetary Fund reported without fanfare recently its projection that the candidate who wins the 2012 U.S. presidential election will be the last U.S. President to lead the world’s richest super power.
The IMF prediction is based on its calculation that within the next five years China will surpass the United States as the world’s largest economy.
The IMF forecast differs from that of most traditional forecasts, which put the date China’s economy outstrips the U.S. at least a decade or two into the future. However, those traditional forecasters are looking at value as calculated in currency—and as we at WealthCycles.com have reiterated many times, currency lies.
US, China to hold economy meeting in May
WASHINGTON — Top officials from the United States and China will meet in Washington early next month, the Treasury Department said Monday, as tensions between the two economic superpowers simmer.
Treasury Secretary Timothy Geithner and Secretary of State Hillary Clinton will host Chinese Vice Premier Wang Qishan and State Councilor Dai Bingguo, amid continued tensions over debt, exports and the value of China’s currency.
The Treasury Department has delayed the publication of a report that could lead to sanctions against Beijing until after the meeting, despite US lawmakers complaining that China is still manipulating its currency for trade advantage.
The semi-annual report, which was due on April 15, has become a focal point for critics who accuse Beijing of unfairly keeping the yuan weak against the dollar to boost Chinese exports.
The US government said it would wait until a meeting of the Group of 20 finance chiefs, the IMF’s annual spring Read more…
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