China and US see progress on investment treaty
The US and China have agreed to restart stalled negotiations on an investment treaty, with Beijing dropping efforts to protect some economic sectors. But talks struck a sour note over China’s handling of Edward Snowden.
For a while it seemed that the project was doomed, but it was revived during this year’s two-day Strategic and Economic Dialogue talks in Washington. The meeting has “paved the way for substantial negotiations” on a bilateral investment treaty, Chinese Commerce Minister Gao Hucheng told reporters.
The move was praised by both nations as a breakthrough. According to US Treasury Secretary Jack Lew, Beijing agreed for the first time to put all areas on the table on a treaty to govern investments. He said the step would “level the playing field” for US businesses seeking to enter the billion-plus market.
Posted by admin on July 12, 2013
Coalition wants Northern Australia to be an entry portal for Asian business and trade
NORTHERN Australia could draw millions of foreign visitors a year to major cities built at Darwin, Cairns, Townsville and Karratha under Coalition policies released today.
And the Coalition has not ruled out relocation incentives such as income tax cuts to lure people north, even though the proposal was ridiculed when canvassed in a leaked draft in February.
A Coalition government also would look at moving Commonwealth departments such as the CSIRO and the quarantine service from southern capitals to the north.
Posted by admin on June 20, 2013
Asian partners: The future of Australia’s business relationship with Korea
When Chung-Sok Suh arrived in Australia from South Korea in 1979 there were about 3000 Koreans living in Australia. He calls them the “first wave”. Today, the number of Korean Australians has increased to 150,000 or so, most of them based in Sydney. Importantly, many are second-generation Korean Australians, often bilingual, and a key resource in the developing relationship between the two countries.
With Korea now Australia’s fourth-largest trading partner, this new generation has an important role to play as a bridge between the two countries. It is also a trading relationship where Australia enjoys a significant surplus.
Korean brands such as Hyundai, Kia, Samsung and LG are part of everyday Australian life and investors such as POSCO are a strong presence in the Australian resources industry. Around 50 Korean companies are active in doing business with Australia, while 100 Australian companies have activities in Korea.
Posted by admin on June 18, 2013
Foreign direct investment in China fell in August for the ninth time in 10 months and the government indicated a diplomatic spat with Japan will hurt trade, adding to restraints on economic growth.
Spending declined 1.4 percent from a year earlier to $8.33 billion, the ministry said in Beijing today. Shen Danyang, a ministry spokesman, said at a briefing that the dispute over islands claimed by Japan and China will “definitely” have a negative impact on trade, after protesters attacked Japanese cars and shops across China .
China’s economy may grow the least in 22 years this year as Europe’s debt crisis and slowing U.S. expansion crimp exports, and a property crackdown damps domestic demand. Further weakness may prompt the government to build on interest-rate cuts in June and July and accelerated investment approvals, with Premier Wen Jiabao saying last week that the nation has room for fiscal and monetary measures.
“The smaller inflow of foreign investments will exacerbate the nation’s current economic slowdown,” said Joy Yang, chief Greater China economist at Mirae Asset Securities (HK) Ltd., who formerly worked for the International Monetary Fund. China’s leaders, following a political transition set to begin this year, may take further steps to support growth including measures to boost domestic investment and consumption, Yang said.
Posted by byu2012 on September 22, 2012
Beijing on Monday assured New Delhi of resolving the issue of trade highly lopsided in favour of China, by giving greater market access to India in information technology (IT), agriculture and pharmaceutical sectors.
At the ninth session of the joint group of India and China on economic relations, trade, science and technology here, Beijing, on the other hand raised the issue of increase in customs duty by New Delhi on imports of power equipment from that country.
The two fastest growing large economies in the world agreed to set up a joint working group to look into all trade related matters, including data collection, as well as investments. The two sides also decided to work on a five-year plan for economic co-operation.
In another development, nine memoranda of understanding (MoU) were signed between companies of the two countries entailing import intention of $189 million from India, at a function organised by the Federation of Indian Chambers of Commerce and Industry (Ficci) and China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME). Besides, an MoU between Ficci and CCCME for joint cooperation was also inked.
Posted by gngn0 on August 27, 2012
BEIJING (Reuters) — China’s trade outlook for 2012 is worsening, weighed down especially by growing problems in Europe, the Commerce Ministry said on Thursday as it disclosed the longest run of falling growth in inward investment in the economy since the 2008-9 financial crisis.
The ministry singled out problems in the European Union — China’s biggest overseas market — as the core difficulty for exporters. It published data showing foreign direct investment from Europe fell 2.7 percent year on year, to $4 billion, in the first seven months of 2012.
“Right now, the sharp drop of exports to E.U. countries is the biggest important factor weighing on China’s export growth,” a ministry spokesman, Shen Danyang, said at a news conference.
“With the European debt crisis spreading and the global economy recovering at a slower than expected pace, we expect China’s trade situation in the second half will become more severe and we are facing more pressure to meet the annual target for trade growth,” Mr. Shen added.
Posted by byu2012 on August 19, 2012
The Ministry of Commerce in Beijing said foreign direct investment plunged 8.7pc in July to $7.58bn (£4.82bn). Meanwhile China’s export market ground to a mere 1pc expansion from last year, rather than its traditional double-digit growth.
Shen Danyang, spokesman for the ministry told a press conference: “July’s dramatic decline in the growth rate of foreign trade, especially in exports, was mainly attributed to the big fall in exports to the European Union.”
Mr Shen added: “A decline in exports to the EU had been predicted, but the escalation and further deterioration of the EU debt crisis, and plummeting demand from EU countries, were outside of expectations.”
The data is another pointer to a worrying slow-down in the powerhouse economy which could hamper the global recovery. Western governments, particularly in the eurozone, have banked their hopes on a China-led recovery, both through trade and bond-buying programmes
Posted by byu2012 on August 19, 2012
One reads complaints about China trade and the WTO system every day in the U.S. These statements usually concern rule violations by China, limitations of the WTO, and the inability of the U.S. to enforce WTO law.
Howard Schneider, who covers international economics for the Washington Post, went even further in an article yesterday, saying that even though the U.S. has won a lot of cases recently, the WTO system still doesn’t work. The article’s title, “At WTO, a growing U.S. record of wins against China, but a less than certain benefit,” sums up Schneider’s thesis. The U.S. has been chalking up quite a few wins against China these days at the WTO, but the gains are difficult to ascertain.
Before we get to specifics, my response is to question those expectations. Who said that WTO wins would directly translate to specific gains for U.S. companies? That may be true, but not necessarily. If that is what industry and government believe the system promises, then I’m not surprised at all the recent grousing.
Posted by byu2012 on August 19, 2012
House Minority Leader Nancy Pelosi
Democrats and Republicans don’t agree on much in this polarizing election year, but one exception is trade with China. Nearly every politician seems eager to claim on the stump that the scheming Asian giant is hurting U.S. living standards.
So it’s worth noting a new analysis by the U.S.-China Business Council that shows how America’s individual Congressional districts gain from trans-Pacific trade. The results show a striking dissonance between the anti-China rhetoric and business on Main Street.
Republicans such as Frank Wolf of Virginia, John Shimkus of Illinois and Joseph Pitts of Pennsylvania have all signed onto the latest legislative effort to punish Beijing for its alleged currency manipulation. But their districts’ goods exports to China have increased by 536%, 686% and 640%, respectively, over the past decade—much faster than exports to the rest of the world.
On the Democratic side, Jim McDermott of Washington, Nancy Pelosi of California and Louise Slaughter of New York also have co-sponsored currency legislation despite their districts’ booming China exports. Voters can check their own districts’ reality on the Council website and compare it to stump-speech rhetoric.
Posted by byu2012 on August 18, 2012
LONDON/HONG KONG — World stock markets fell Monday after a slowdown in Japan’s growth gave investors another reason to worry about the health of the global economy.
Japan’s economy grew at a slower-than-expected annual rate of 1.4 percent in April-June as Europe’s debt crisis and the strong yen weighed on the country’s powerhouse export sector. That was a sharp drop from a revised 5.5 percent in the previous quarter. The news comes on top a slew of reports out of Asia that point to a region losing momentum.
On Friday, China released weaker-than-expected trade data. Export growth in July plunged to just 1 percent from the previous month’s 11.3 percent, well below forecasts of about 5 percent. Meanwhile, Hong Kong and Singapore, both Asian financial centers that are highly exposed to global trade, reported weak second-quarter growth. And India’s industrial output fell a worse-than-expected 1.8 percent in June amid a manufacturing and investment slump.
European stocks opened lower. Britain’s FTSE 100 lost 0.3 percent to 5,826.91. Germany’s DAX lost 0.1 percent to 6,935.06 while France’s CAC-40 lost 0.3 percent to 3,426.26. Wall Street futures signaled a lower opening. Dow Jones Industrial Futures fell 0.2 percent to 13,148 and S&P 500 futures shed 0.3 percent to 1,398.70.
Asian stock markets closed mostly lower. Japan’s Nikkei 225 fell marginally to close at 8,885.15, with traders taking Japan’s growth figures in stride.
Posted by stekunan on August 13, 2012