The country of France is planning to boost their export of agriculture and food products to the world’s most populated country, China. This has emerged from the French Minister of Foreign Trade, Nicole Bricq during a news briefing in Beijing, the capital of China. Two of the French officials including the French Finance Minister Pierre Moscovicis have visited China. Both of the visits are said to have paved the way for the visit of the French President, Francois Hollande also within this year.
According to the Minister during the news briefing, her purpose of visiting the country was to explore the trade areas like agriculture and food processing. France would also include strengthening their cooperation in the nuclear and the power aviation. The Minister also said that the country of France hopes to boost the trade of various dairy and meat products with China, including wine.
In response to France export plans with China, Chen Xingdong, the managing director and chief economist at the BNP Paribas China Ltd. said, “China’s agricultural industry has entered a transformation period. More technology will be introduced to increase output and solve food safety concerns, and France has advanced agricultural technology.”
Minister Bricq together with the French Minister for Agriculture and Food, Guillaume Garot formed an Asian Committee for the purpose of promoting French food export products because the world’s demand would be expected to increase by a quarter by the year 2022 and China’s imports will also grow annually by 10 %.
The French Ministry of Finance said that France trade deficit with China has reached 27 billion euros in the year 2011 and according to the General Administration of Customs, “In 2012, trade between China and France dropped 2 percent year-on-year to $51.02 billion.”
Posted in China.
Tagged with agriculture, China, exports, France.
By admin
– May 15, 2013
The Bank of Japan has decided to increase the economic forecast for growth in Japan with expectations that it will grow from 2.3% to 2.9% from March 2013 to March 2014. They have also estimated that consumer demand will escalate before tax rises meaning that sales taxes will, by 2015, reach as high as 10%.
A representative of the Bank of Japan believes that “Japan’s economy has stopped weakening and has shown some signs of picking up.”
Japan’s economy had suffered severe deflation with the worst debt-to-GDP ratio in the world whilst still being the third biggest economy.
In order to combat deflation the Bank of Japan will be investing 270 trillion yen to boost their declining economy. However the effectiveness of this approach has been questioned as there is a likelihood that this will increase prices. This method has been attempted before in 1997 where the Bank of Japan invested 50 trillion yen which at some points did stop deflation, but resulted in people being less likely to seek credit, which caused the economy to stagnate. This approach has in the past only had very short term effects on the economy with deflation occurring again as soon as investment from the Bank stopped.
The deflation of prices within Japan provides an incentive for consumers to wait for prices to fall even further resulting in less money flowing throughout the economy as people wait to get the best deal. This decision by consumers directly affects business investment choices who choose to invest less due to reduced sales which repeats, having a devastating effect on the stability of the economy, being the main cause of the crisis of property prices in Japan in the 1990s.
If this venture of quantitative easing does succeed, along with the UK and US attempts at this policy it could have severe ramifications for other countries who have problems with inflation as it does not provide a true assessment as to how the economy would have recovered without the intervention.
Posted in Japan.
Tagged with Bank of Japan, deflation, economic forecast, GDP, japan, yen.
By admin
– April 29, 2013
China’s arms exports have risen by 162% between 2008-2012 in comparison to the last 5 years. This rise has meant that Britain is no longer in the top 5 arms suppliers as stated by the Stockholm International Peace Research Institute. The reason for this increase is because of sales to Pakistan, which accounted for just over a third of the 162%.
Paul Holtom of SIPRI commented “China’s rise has been driven primarily by large-scale arms acquisitions by Pakistan, A number of recent deals indicate that China is establishing itself as a significant arms supplier to a growing number of important recipient states.”
There is a growing demand throughout Asia for arms as a means to defend themselves in the face of territorial quarrels with neighbours. The largest arms importer is India, along with other notable importers, Pakistan, Singapore, South Korea and even China itself.
China has guidelines on who they sell arms to however, foreign ministry spokesperson Hong Lei confirms that “China has three principles on arms exports. Firstly, they must relate to legitimate defence purposes. Secondly, they must not threaten regional and global stability. Thirdly, they must not interfere with countries’ internal affairs.”
America currently holds 30% of arms trade market shares while Russia has 26%, the market has grown by 17% from 2008-2012 with European countries ranking high in the trade given the economic crisis they are facing. Countries such as Portugal and Spain seek to sell their aircraft in order to decrease maintenance costs and to help ease the debt they are facing in the Eurozone.
Following sanctions on China by its military importers in the West due to its aggressive reaction to the 1989 Tiananmen Square protests, the country has looked to itself to increase domestic weapons production. Hong Lei also states that China adopts “a responsible and prudent attitude towards international arms sales”. Although no exact figures have been provided by Beijing they assure that their arms trade is in accordance with UN Security Council resolutions.
Posted in China, Finance.
Tagged with arms manufacture, arms trade, China, export, Stockholm International Peace Research Institute.
By admin
– March 24, 2013
Most people have the habit of carrying multiple credit cards in their pocket and this is the reason why they will use them whenever they want to buy anything. The main problem that arises is these people hardly remember to pay off the outstanding balance on time. This puts them into serious debt problems. Under such circumstances, you look for a possible solution as to how you can free yourself from unnecessary debt problems. With the help of various debt plans, you get an opportunity to pay off credit card bills soon and, in turn, become debt free.
Two Types of debt plans to choose from
There are definitely effective plans that can help you reduce credit card bills that you have accumulated. Read on know about 2 types of debt relief plans with which you can repay the credit card dues easily.
1. Debt consolidation – One of the most suitable debt relief plans is debt consolidation. Debt consolidation is merging up multiple credit card bills into one and allowing you to make a single payment every month. When you decide to enroll with a debt consolidation program, the company provides you with a debt consultant. You need to speak up with the debt consultant about the financial problems that you’re facing due to which you can’t make the debt payments on time. The debt consultant will then assess your financial situation by taking into consideration your income and expenses. With his negotiation skills, he’ll convince the creditors so that they may reduce the rate of interest on your outstanding dues. With reduction in the interest rate, you will find it much convenient to pay down the bills. It can be said that debt consolidation enables you to come out of debt problems with ease.
2. Debt settlement – When your financial condition is not strong, you find it difficult to make the credit card bill payments in full. In this situation, enrolling with a debt settlement program is the right option for you. You do not have to pay the entire debt amount in case of debt settlement. Rather, you pay only a certain part of the original amount as full payment. In this program, the consolidator negotiates with your creditors so that they may reduce your outstanding balance by 40-60% than what you owe. The consolidator needs to have convincing capability so that he can convince your creditors to reduce the outstanding balance. Once they realize that you cannot afford to make the entire debt payment, they’ll agree to the decreased amount. You have to pay the amount to the debt settlement company and once the amount gets accumulated, it is then disturbed by the debt settlement company amongst the creditors.
If you are spending sleepless nights thinking as to how you will manage credit card bill payments, it is advisable that you enroll with a suitable debt relief plan. Debt is undoubtedly a major headache for everyone and so you should take the necessary steps to eradicate your debt problems as soon as possible and live a peaceful life.
Posted in Finance.
Tagged with debt consolidation, debt plans, debt settlement.
By admin
– February 13, 2013
Chinese authorities have begun to tackle the income gap between the rich and the poor, namely the minimum wage.
The authorities plan to increase the minimum wage to 40% of the average urban salary by 2015. State-owned firms would also need to begin to increase their share of profits with the government which would use the money to help fund social security. The widening gap in China has sparked concern over stability. China’s Gini coefficient, which is a gauge of income disparity in a country, rose to 0.474 in 2012, higher than the 0.4 that analysts believe could lead to social unrest. The Chinese cabinet explained, “Deepening the income distribution reform is a systematic project that is arduous and complicated and concerns the reallocation of various interests.”
Economists such as Zhang Zhiwei, chief China economist at Nomura, believe the government has had plans for similar reforms but proved “ineffective,” he went on to say “The plan suggests the government puts more weight on income growth than on income distribution,” explaining the government had not set a “explicit target” for the gini coefficient but offered an objective to “reduce population in poverty and increase size of middle class”. Other plans announced include steps to boost incomes of farmer, improve healthcare and increasing affordable housing among plans.
China’s considerable economic expansion in recent years has seen massive increase in income level especially in urban areas, but it has not benefited everyone, with numerous people living below the poverty line. According to the People’s daily, almost 128 million people in rural areas were defined as poor and have an income of less than 2300 Yuan ($368; £235) in 2011.
China has been trying to assist domestic demand to try and rebalance its economy to offset a decline in demand for its exports, it planned to double the average of real income of both rural and urban residents by 2020 from 2010 levels. The government said it latest plan targeted to remove 80 million people out of poverty by 2015 – stating these are immense and complicated plans and so changes cannot happen overnight.
Posted in China, Finance.
Tagged with China, income disparity, income levels, minimum wage, wealth gap.
By admin
– February 6, 2013
This January the four major banks in China – the Bank of China, the Industrial and Commercial Bank, Agricultural Bank, and the China Construction Bank – had an increase in new loans that would reach up to three hundred seventy billion (370) Yuan. The said banks acquired loans amounting to 59.4 billion Yuan also in January of last year.
The Chinese market has been very flexible in finding their sources to have more supply of money and included here are the said loans and bonds that different Chinese banks have offered. Moreover, the Chinese banks like the China Construction Bank have already made another venture and it is the undertaking to join the E-commerce business. This means that they have widely used the internet for buy and sell businesses similar to E-bay and Amazon.
There’s no wonder that throughout these kinds of ventures the banks can gain more money and expand markets. In the United States, the widely known bank of America also established an online shopping portal. Since the competition is tough the mentioned banks have already jump to other alternatives to add on the money that gets into the particular banks even if it would seem so surprising to the clients. The changes that have occurred in the Chinese banks are a stepping stone to make improvements and cater more to the needs of their clients. That’s the reason why virtual stores and online banking is made accessible to the bank clients for their own convenience.
Posted in China, Finance.
Tagged with Agricultural Bank of China, Bank of China, China, China Construction Bank, Industrial and Commercial Bank of China, Yuan.
By admin
– January 29, 2013
For some, uttering the word “robot” may conjure up images of a gun-toting Arnold Schwarzenegger hunting a terrified John Connor. Though the plot line may be science fiction, the concept – robots becoming intelligent enough to enter the workforce – may be about to become actual science.
China’s demographics are changing. Better medical care means older citizens are living longer, while the government’s one-child policy is causing the size of new generations to shrink.
Traditionally, societies function in a manner whereby younger generations support the elderly and retired. In 2000 in China, there were six workforce members for every retiree; 20 years from now there will only be 2. China’s youth will be forced to seek higher-paid jobs to support the ageing population, leaving behind minimum-wage work in factories and retail stores. In light of this labor crisis on the horizon, robots may be a solution for filling in the gap.
The Chinese government is throwing its support behind the robotics industry. Shanghai’s municipal government says robotics is “one of its major industries”, while the vice-minister for human resources and social security Yang Zhiming highlighted that the country must “upgrade equipment and technology.”
China’s interest in robotics extends outside the realm of industry. In 2000, China’s National University of Defense Technology gave the world the first glimpse of the country’s first humanoid robot. Chinese farmer Wu Yulu became famous overnight in 2009 upon revealing that he had built robots that could climb walls and pull rickshaws.
In 2010, the Dalu Robot Restaurant in Shandong province advertised that it employed twelve robots as servers and entertainers, in a project set up by the Shandong Dalu Science and Technology Company.
March of 2012 saw a Chinese restaurant owner, Cui Runguan, create a robot that could make sliced noodles out of raw dough.
Replacing human labor with robotic workers is expected to free up young, talented Chinese citizens to pursue higher-paying jobs.
Posted in China.
Tagged with ageing population, China, employment, labour.
By admin
– December 19, 2012
The forecast is: the Rise of Asia will remain and become the primary driver of global trade growth.
According to a new report from HSBC, China, India and Vietnam are among the countries best positioned. Their exports are set to increase at a significant rate for decades: “The pattern of global trade will be increasingly influenced by the rapidly growing Asian economies whose export and imports will continue to grow strongly,” the report explains.
Ultimately global trade is set to increase by about 5% in 2013 before increasing to 6%-7% annually until 2016. Chinas’ growth rate is currently 7.8%, for the world’s second economy equalling in 2,048.93 billion dollars in money terms of money. The economy of the United States, the biggest economy in the world only rose by 2.2%. It is estimated the Chinese economy will overtake the American economy in 2017.
But hurdles remain. Europe, one of the Asia’s biggest trade partners is mired in debt, and its growth prospects remain weak. Simon Constantinides, regional head of trade and receivables finance for HSBC, said that Europe’s fiscal situation is one of the biggest risks examined by the bank, going on to explain how they cannot ignore the problems in Europe, saying it is one of the biggest concerns facing the global economy.
However, in a finding that details global nature indicates that Europe’s prospects will be helped by the developing economies of Asia. One of the biggest destinations for European goods China as the world’s second largest economy is trying to move from an investment dependant model to one based on consumer spending, which will increase exports of Europe to China. Other bright spots include Bangladesh, which is expected to benefit greatly from trade with India, with its total projected to increase by about 20% between 2013 and 2015.
Posted in China, Finance, India.
Tagged with Asia global trade, economic forecast, economy, growth, HSBC.
By admin
– November 15, 2012
90% of Chinese believe they live and endeavour in a higher standard of life than their parents. According to a Global Attitudes Survey by PEW, despite this- corruption and social inequality concerns are brewing in China.
Although China’s Gross Domestic Product is growing, and at a pace faster than any other country’s, the prosperity is slowing down. The Chinese successor to be, Xi Jinping, may well be concerned by the economic forecasts not being as optimistic as previously.
Be that as it may, a survey suggests 70% of the Chinese certainly are enjoying the effect economic growth has on them and are happier in the state they are now than the state they were 5 years ago. The survey also suggests that 92% of people asked stated that they are much better off now than their parents were at their age.
Although this must be taken into account, this survey was taken in urban parts of China, and to an extent, the urban part of China is better off than the rural proportion. 6 out of 10 state that inflation should be considered as a very critical problem in China, 1 out of 3 say this about air and water pollution. And more notably, 70% of Chinese believe their way of life must be safeguarded from foreign influences.
From 39% in 2008 to 50% in 2013 Chinese believe corrupt politicians in China are a very serious risk and must be dealt with in order to insure a safe future for China and its people.
About 48% today, from 41% in 2008, believe the gap between the rich and the poor of china is huge and should be regarded as a colossal problem. 81% of Chinese believe that this saying is true in their context “rich just get richer while the poor get poorer”.
Posted in China, Finance.
Tagged with China, Chinese attitudes, GDP, PEW survey, social inequality.
By admin
– October 19, 2012
The Goldman Sacs Group Inc (GS) plans to grow its real estate investment trust to 300 billion yen (3.7 million dollars) to purchase Japanese properties. This is a response to the Wall Street forecasts in lowering of prices. The management of the REIT is scheduled to begin in August with 30 billion yen. It includes equity and is aimed to increase the prices to around 300 billion yen in five years.
Goldman Sachs has been working with Mitsubishi Estate Co., Mitsui Fudosan Co. and Nomura Real Estate holdings in setting up their private REIT’s in the past 12 months in anticipation of price declining. The situation, while grew better after a decade of depression, finally seems to slow both growth and declination nowadays.
The REIT is to increase a 4 to 5% dividend yield with a leverage of 50%. The company intends to expand the REIT to 100 billion yen in two years.
“We are close to the bottom of the real estate cycle,” said Taro Squires, head of real estate investment management at Goldman Sachs Asset Management Co. in Tokyo. in an interview. “I expect the market to bottom out within the next six to 12 months.”
Office buildings will account for more than 60 percent of the trust, while residential and retail will represent the rest, he said, adding that a majority of assets will be in Tokyo.
The Tokyo Stock Exchange REIT Index rose the most in more than two months, gaining 1.4 percent. That compares to the 0.1 percent drop in the benchmark Topix index.
“Japan is in a different cycle compared with other markets in Asia-Pacific,” said Christopher Lee, Hong Kong-based managing director of corporate ratings for the region at Standard & Poor’s. “The other markets are coming off from a cyclical top so they are well under way for correction. Japan has been in correction for some time now, so it’s on its way for a recovery.”
Goldman Sachs, the first non-Japanese company to start a private REIT, is looking to raise money from financial institutions and corporate pensions in Japan, Squires said.
Source: Bloomberg
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Posted in Japan.
Tagged with finance, goldman sachs group, japan, mitsubishi, mitsubishi real estate, real estate investment trust, stock market, stocks.
By admin
– July 2, 2012
