SlashAsia » Business & Technology

China tightens Internet security, Google takes a hit

Alexandra Stevenson — Mon, 22 Jun 2009 04:07:47 +0000

Under the guise of cleaning the Internet, the government suspended Google’s Chinese portal for linking to pornographic sites, and implemented regulation requiring computers sold after July 1 contain Green Dam Internet filter software. Xinhua reports an “army of tens of thousands of volunteers” will be registered officially and tasked with the responsibility of reporting questionable content and “uncivilized behavior”. Several conspiracy stories are afoot as to the severity of Google’s punishment, questioning ties between Baidu, Google’s biggest China competitor, and state run media CCTV, which lambasted Google in three different news programs this week. Baidu has reportedly invested large sums into CCTV ads.

China filters Google in war on “uncivilized behaviour”, Bloomberg

Who profits from Google’s misfortunes?, ChinaStakes

Beijing to recruit tens of thousands of “Internet surveillance volunteers”, Xinhua News

Analysis of the Green Dam Censorware system, University of Michigan

IIF in Beijing, discusses new global financial order

Alexandra Stevenson — Sun, 14 Jun 2009 17:20:11 +0000

All eyes were one China at an international finance association this week in Beijing. The International Institute of Finance held its Spring meeting in the capital where global financial powers gathered to discuss how to reshape the global financial system and define what a new one would look like. Lui Mingkang, China Banking Regulatory Commission Chairman, highlighted the key to China’s development will be the “scientific development” of capital markets. In response to several members’ comments that the financial system has simply detoured at the moment but will return to the old financial blueprint, Lui was blunt: the response to the crisis is not enough, a new road map has to be drawn up. The IIF predicted a more optimistic 7.5 percent GDP growth for China this year, as compared with the World Bank forecast of 6.5 percent.

China’s GDP will grow 7.5 % this year, finance association forecasts, The Wall Street Journal

China a new architect for global finance?, Beijing Briefs

Central bank head says the Philippines may avoid recession

Alexandra Stevenson — Mon, 08 Jun 2009 00:59:23 +0000

The head of the Philippines central bank has announced the economy will not go into recession, unlike neighboring countries Singapore, Thailand, Taiwan and Hong Kong. The central bank has slashed rates a total of 175 basis points since last December in an attempt to boost the economy, and analysts now say inflation is finally slowing down, despite the economy having contracted at its fastest pace in 20 years. The country’s inflation rate is now at an 18- month low of 3.3 percent. The bank will likely execute one final rate cut.

Philippine inflation at 18-month low in May, Business Week

Philippine c.bank signals rate cut, could be last, Forbes

Philippines spared recession, The Straits Times

Investors look to Indonesia as slowdown bottoms out

Alexandra Stevenson — Mon, 01 Jun 2009 00:32:26 +0000

With inflation decreasing and a key interest rate cut expected next week, Asia’s strongest economic performer next to China and India may be a new hot spot for foreign investment, according to the Financial Times. This coming week the central bank is expected to cut the interest rate 25 basis points to seven percent and Indonesian GDP growth, less dependent on exports, is doing well next to neighboring countries like Singapore and Malaysia . Upcoming elections look set to keep President Susilo Bambang Yudhoyono in the leader’s spot, which is seen as a good thing by investors, because of his success with implementing stable economic reform. Some analysts speculate Indonesia’s economic slowdown may be bottoming out, and suggest high returns on investments in mineral and coal sectors.

Indonesia a hot spot for investors, Financial Times

Indonesia’s central bank sees scope for rate cuts, Alibaba News Channel

Guest Post: Indonesia - a must own emerging market, Forex Hound

Beijing to release new renewable energy projections, announces its stance on climate policy

Alexandra Stevenson — Sun, 24 May 2009 16:12:35 +0000

The Chinese government issued a statement Thursday saying rich nations should cut emissions 40 percent from 1990 levels by 2020, and provide 0.5 to 1 percent of economic wealth to help other countries curb carbon emissions. The statement was issued by the National Development and Reform Commission, and indicates China’s climate stance ahead of the UN Climate Conference in December. About 80 percent of energy power still comes from coal and the government projects greenhouse emissions will keep growing until 2035. But it is also trying to make headway in its own capacity to curb global warming; a new plan for renewable energy is said to have raised targets from a previous 2007 plan in areas such as wind power, biomass power and solar power. For example, a previous target for wind energy of 30 million kilowatts will be raised to 100 or even 150 kilowatts.

China to announce renewable energy blueprint, Caijing Online

China tells rich nations to cut emissions by 40 percent, Planet Ark

IMF says “Severe recession”, Vietnam expected to be best performer

enrico — Tue, 12 May 2009 16:03:56 +0000

The IMF slashed its growth outlook for Asia from last year’s 2.7 percent to a new 1.3 percent, saying chances for immediate economic rebound are “weak”. It advised “forceful” fiscal and monetary policies, and encouraged countries to focus on jump starting domestic demand. The severe drop in growth forecasts is a stark contrast with 2008 Asian growth of 5.1 percent. Growth in China for 2009 is expected to be 6.5 percent, 4.5 percent for Hong Kong, a stark 10 percent for Singapore, and 6.2 percent for Japan. Despite a low predicted growth of 3.3 percent, Vietnam is expected to be one of the top Asian performers for this year. Signs of hope are showing in its construction and retail sectors.

IMF sees Vietnam strength, even after cutting growth forecast, Bloomberg
Asia to grow 1.3% in 2009, Wall Street Journal
IMF slashes Asia forecast, expects ’sever recession’, The Taipei Times

China can have its Green cake and eat it too

enrico — Tue, 05 May 2009 06:19:03 +0000

Cutting back on greenhouse gases doesn’t have to mean limiting China’s economic development, says a report submitted to Chinese officials this week. The report, written by economists at British Tyndall Center for Climate Development, argues that low carbon development is a realistic goal for China, but that the country needs to focus on energy efficiency. The authors also argue that a limit must be placed on China’s carbon emission peak, at the very latest by 2030, otherwise the world’s largest carbon emitter will have a far greater challenge to deal with. Large investments into renewable energy are urged and foreign countries will have to contribute. The report offers four possible scenarios for a low carbon future, all of which involve nuclear energy. Three involve carbon capture and technology to reduce coal-burning energy.

CO2 need not slow China’s growth , China Dialogue Blog

China can achieve low carbon growth, Tyndall Centre for Climate Change Research

Anti-dumping charges slow export in Vietnam

enrico — Tue, 05 May 2009 06:19:03 +0000

Foreign investment into Vietnam could move to other countries as the number of overseas anti-dumping lawsuits rack up against the country. The Vietnamese government has denied allegations that it has subsidized any industry, such as the plastics industry which has been under attack most recently by US plastic bag companies Hilex Poly Co., LLC and Super Corporation. In the shoe sector, Canadian Association of Shoe Producers and a Brazilian shoe industry group, Abicalcado have also pressed charges for imported soles. India charged the highest anti-dumping tax rates on fibre imported from Vietnam, Thailand and China. Anti-dumping charges are based on accusations that imports are priced suspiciously low so that local industry is protected from unfair competition.

Anti-Dumping Lawsuits Hampering Exports
Vietnam rejects US’s claims for plastic bags, Vietnam

Green investment boom in Asia?

enrico — Tue, 05 May 2009 06:19:03 +0000

Renewable energy and environmental sectors in Asia are expected to boom as analysts predict green-related investments, like energy efficient power grids, will account for $272 billion, or 20 percent, of economic stimulus spending in Asia. Regional governments have sprinkled incentives for investment, particularly in solar and wind power industries. If forecasts are accurate, Asia will surpass both the US and Europe in being the largest market for renewable projects. Analysis comes as governments encourage environmentally friendly investment alongside stimulus budgets that focus on efficient energy, low carbon technology and infrastructure development. China alone has allotted $200 billion of its $584 billion recovery plan to development of waterways infrastructure, low carbon vehicles and energy efficient building. The situation is more urgent in Vietnam, Indonesia, Thailand and the Philippines. An Asian Development Bank report issued this week emphasizes the importance of green investment in these countries, which could see economic contraction of six percent by 2100 due to the impact of environmental change on their agriculture-driven economies and dense populations in coastal areas.

Climate change hits Vietnam’s poorest areas , Bernama
RP, 3 other Asian countries face costly climate change risks , ABS-CBN news
Asia govts dangle carrots to attract green money , The Economic Times
Clean energy pitched, Business Mirror

Indonesia great potential for green energy

enrico — Sun, 19 Apr 2009 20:55:48 +0000

As the world’s largest crude oil producer and fourth biggest rice producer, Indonesia has great potential for green energy. This is according to World Bank’s International Finance Corporation. IFC has helped to set up the Indonesian Sustainable Energy Finance Project, and has offered to help companies through technical expertise and arranging domestic project funding. IFC claims palm oil and rice waste are both greener and cheaper options; the cost of generating electricity through such biomass waste could cost US 5 cents per kilowatt hours, as opposed to state electricity selling price of US 6 cents per KWH.

Palm oil, rice waste potential for generating electricity, Jakarta Post

Asian stocks continue to rally 6 weeks on

enrico — Sun, 19 Apr 2009 20:47:07 +0000

The longest stretch in over two years, Asian stocks continue to gain, providing increasing confidence in the region. While China’s Wen Jiabao announced a significant drop in growth to 6.1 percent this year, officials like Zheng Xinli say this may be the bottom. And it may be, as stocks rally for a sixth week. Regional investors echo this claim, and the MSCI Asia Pacific Index rose 2%, the longest run of gain since 2006, according to Bloomberg. Asian markets have shown growth in corporate markets, leading some to believe it will help boost tech and finance sectors. The good news isn’t just coming from regional analysts either. A JPMorgan Chase & Co report shows emerging markets will jump another 39 % this year. The MSCI Index for emerging markets is also up 36% since March.

SE Asia stock-markets rise, even Thailand despite violence, Reuters

Asian stocks rally for sixth week as recession concern eases

China lodges first trade complaint against US to WTO

enrico — Sun, 19 Apr 2009 20:45:02 +0000

China’s Ministry of Commerce announced the Chinese government has filed a complaint to the WTO about the nature of a US ban on Chinese poultry. The US Senate Tuesday passed an act which included a ban of chicken parts from China. The Chinese government claims this ban violates global commerce rules and Ministry of Commerce Yao Jian called it “discriminatory”. Trade of poultry resumed in 2004 after a suspension during the bird flu outbreak.

China slashes US measure of banning poultry import, Isria

China hauls US to WTO in 1st case vs. Obama admin, Jakarta Post

China sees 40% drop for iron ore

enrico — Sun, 19 Apr 2009 20:42:26 +0000

Despite global slowdown in demand for iron ore, China has imported 131 million tons in the first quarter, up 18.8% from last year. As Japan, South Korea and China engage in price negotiations with BHP Billiton, Vale and Rio Tinto, it appears that iron ore prices will drop 30%, 50% and 40% respectively. China is now relying mainly on imported iron ore, with 70% of China’s own mining capacity out of commission. Domestic mines that tend to be small scale and produce low grade iron can’t compete with significant price drops in materials and freight cost. Analysts say China could import as much as 100 million additional tons for the current listed price.

China iron-ore imports hit record 51 Mt, Mining Weekly

China increase China may expect iron ore prices to drop 40%, China Stakes

Singapore prepares for growth in Compressed Natural Gas market

enrico — Sun, 12 Apr 2009 17:56:52 +0000

With one of the world’s largest refueling centers for CNG, and government rebates for greener cars (GVRs), gas supplier Union Energy has pumped $1 million (SGD) into the CNG market. The city-state has more than 500 CNG taxis, and is expected to expand to another 2000 over the next two years. Estimates say the city-state already has more than 3000 CNG vehicles. Hybrid cars have gained recent popularity too, with close to 2100 cars on the island, but they are more expensive. Analyists are predicting another ten refueling stations need to be set up to accomodate a projected 30,000 new CNG cars in the future. Singapore’s population is just over 4.6 million.

Singapore holds largest refueling center for Compressed Natural Gas, Today Online
Singapore’s hybrid highway, Asia One

Asian markets showing optimism?

enrico — Sun, 12 Apr 2009 17:55:50 +0000

A drop ease in figures for China’s trade and South Korean growth have spurned optimism that markets may be bottoming out. Chinese exports in March fell 17 percent from last year, but the fall is significantly softer than February’s 25.7 percent drop. South Korea’s central bank said the economy managed a 0.2 sequential growth in the first quarter, good news after last year’s rapid contraction by 5.1 percent in the fourth quarter. In Beijing, government measures like cutting tax for exporters and clamping down on a yuan currency rising against the US dollar may have contributed to recent figures. In South Korea, i massive fiscal spending and severe interest rate cuts may have contributed to a new optimistic Bank of Korea forecast of 3.5 percent growth for the next year. The economy is still expected to contract by 4.2 percent in the first half of the year compared with a year ago. Japan’s Nikkei looked good at the close of this week, up 3.7 percent, after a new US $150 billion stimulus package was announced. New optimism came as a recent Organisation for Economic Co-operation and Development report dispelled any notions of global recovery. It didn’t, however, take into account take into account most recent figures.

China’s trade decline eases in March, AP
China, Korea data add signs of optimism
S korean economy set to contract

China auto sales at a pitch?

Asia stocks still rally, now time to invest?

Alexandra Stevenson — Mon, 06 Apr 2009 04:08:02 +0000

For the fourth week in a row, Asian stocks seem to be doing well as governments increase spending and G20 summit concludes with US$ 1 trillion pledge to help economies globally. The Indonesian government has cut interest rates to 7.5%, and the Malaysian government recently pumped an additional US$2.70 billion into a second stimulus package. The Shanghai composite closed down 0.23%, Taipei up 1.02%, Seoul’s Kospi up 0.53%, Bangkok closed 0.70% higher, Jakarta 0.1% and Manila 2.3%. Japan’s Nikkei saw it’s best finish in nearly 3 months, closing up 0.34%. Some analysts say now is time to invest in small Asia companies.

Links and sources:
Asian Small Caps: A Real Deal?, Brett Arends of the Wall Street Journal advises.
Asia roundup: stock marts climb modestly, Business Times

Asia: Markets rally, currencies at 2009 high

Alexandra Stevenson — Mon, 16 Mar 2009 00:01:56 +0000

Asian currencies strengthened this week following an announcement that American banks could stand without government buyout, and optimism about new Chinese and Japanese stimulus packages. Japan’s Nikkei rose 5.15%, South Korea’s Kospi 6.7%, while Singapore’s Strait Times Index rose 5.6%. The Malaysian ringgit increased by 0.3% after the government announced a US $16 billion stimulus plan. The Taiwan dollar rose 0.8%, and the Thai baht 0.4%. Despite a regional rally, the Philippines peso and Vietnam dong were unaffected, and China’s Shanghai Composite actually dropped by 0.2%, after Wen Jiabao expressed concern about the stability of US Treasuries.

The Bank of America Corp., JP Morgan Chase & Co. and Citigroup Inc. announced this week that they do not need government support and may even see profits this year, boosting confidence in the Asia region as well as Europe. While analysts say this is just a temporary respite, things may be looking up in Southeast Asia. Citigroup has indicated it’s confidence that Southeast Asian countries will come out of the crisis soon, announcing plans to start equity brokerage business in Malaysia, Vietnam and Indonesia

Links and sources:

Citigroup to boost Asian equity trade , Gulf Daily News

Nikkei surges 5% as US bank hopes lift Asian markets , CNBC News

Asian stocks lifted , The Straits Times

Asian currencies best of week 2009, led by won, rupiah , Bloomberg

Indonesia: New regulation to protect domestic steel industry

Alexandra Stevenson — Sun, 22 Feb 2009 15:48:24 +0000

In a move stimulate more growth in its domestic steel sector, the Indonesian government has issued a regulation requiring steel manufacturers and importers to register with the Ministry of Industry of Trade. This is part of what could be a larger “Buy Indonesian” trend, after a recent government order required civil servants to buy local-made products. Officials deny the policy is protectionist, but director general of the steel sector at the industry ministry, Ansari Bukhari, has argued that an over-dependence on foreign imported raw materials has caused Indonesia’s steel industry to lag behind. According to reports, local property developers and other consumers said they prefered cheaper and better quality imported steel, a reality that has resulted in imported raw materials being purchased in U.S. dollars and later sold in Indonesian currency, the rupiah.

Imported steel products such as hot-rolled coil and plate, wire rod, cold-rolled coil and coated steel products will now be subject to new regulations.

“Buy Indonesian” policy, Straits Times

Indonesia clamps down on steel import to protect local market, Reuters/Forbes

New trade regulation on steel to protect RI steel, Jakarta Post

Asia: ASEAN countries to demonstrate self-sufficiency and open trade

Alexandra Stevenson — Sun, 22 Feb 2009 15:35:08 +0000

Finance ministers in the Asia region are holding bilateral talks in the lead up the 14th Association of South-east Asian Nations (Asean) summit, in a show of greater strategic cooperation to prevent trade protectionism. Malaysia held bilateral talks with Indonesian and Chinese finance ministers this weekend, to promote trade. Officials from Japan, China and Korea met Saturday afternoon to discuss counter-measures to economic slowdown. Finance chiefs from Asean countries and Japan, China and South Korea will gather at the summit on February 27 in Thailand to discuss concrete and collective response to financial woes.

Asean will speak out against using trade protectionism as a way to cope with the current financial crisis, Thai Prime Minister Abhisit Vejjajiva has said. Mr. Abhisit has encouraged Asean countries to seek aid from other regions, acknowledging that the IMF ” simply does not have the resources, money and time to look into the various problems in different regions.” The Asia Development Bank will participate in the summit as Asean members determine the details of a foreign reserve fund pool agreed upon last May. Contributing countries will discuss management and size of fund.

Links and sources:

Asean to resist protectionism, Straits Times

China, Indonesia and China trade talks, Malaysia Star

Asea foreign reserve pool, Xinhua

Vietnam: Steel exchange e-platform to strengthen distribution

Alexandra Stevenson — Sun, 15 Feb 2009 14:18:57 +0000

Vietnam Steel Corporation (VN Steel) announced plans to speed up an electronic steel exchange platform for 2009 to help build up local distribution channels, according to Vietnam News Agency. The e-platform will facilitate transactions between vendors and buyers, getting rid of traditional channels notorious for high investment costs and low efficiency output. VN Steel also plans to streamline logistics through the construction of a central logistics and steel materials center in Hanoi and Ho Chi Minh City. The Vietnamese government has just announced it is seeking $12 billion USD to upgrade infrastructure in 15 cities and provinces across the country.

Links and Sources:

Vietnam News Agency

Xinua/AsiaNews.Net

China: Government to launch global media network with Chinese characteristics

Alexandra Stevenson — Sun, 01 Feb 2009 14:36:05 +0000

Chinese state run media corporations CCTV, Xinhua news agency and People’s Daily will receive 45 billion yuan (US$6.58 billion) from the central government to expand their news services. It’s part of what party officials call waixuan gongzuo “overseas propaganda”. One project is to develop a 24 hour English news channel modeled on al-Jazeera, providing Western audiences and Asians with the Chinese perspective. Each media entity is set to receive approximately 15 billion yuan each. CCP overseas propaganda division head Chen Wang: “We must strive to set up a top-line global media arm that covers the entire world and which is multi-lingual, enjoys a large viewership, has a large volume of information and is strongly influential.”

Source: Asia Times Online
http://www.atimes.com/

Japan: Prime Minister Aso pledges $17 bln in aid for Asia region

Alexandra Stevenson — Sun, 01 Feb 2009 13:42:46 +0000

Prime Minister Taro Aso announced Japan would pledge over $17 billion in aid to help Asian countries cope with the global financial crisis in an address Saturday at the annual World Economic Forum in Davos, Switzerland. This move is a break from former prime minister Junichiro Koizumi’s vow in 2006 to cut back on Japanese foreign aid between two and four percent each year. In September of last year Aso offered to donate $100 billion to the International Monetary Fund to assist with the financial crisis.

Source: Kyodo News Agency

Indonesia: Government to pay subsidies to biofuel manfacturers

Alexandra Stevenson — Sun, 01 Feb 2009 13:17:26 +0000

The Indonesian government has announced plans to promote biofuel as an alternative energy source, saying it will pay subsidies in an effort to boost this new industry. The government also plans to make biofuel mandatory over 2009. Crude oil prices are at a current low, making biofuel products significantly higher. Due to large government subsidies petrol diesel in Indonesia is among the cheapest in Asia, making it hard for palm biofuel and bioethanol to compete.

Source: The Business Times http://www.btimes.com.my