Tag Archives: China

International, U.S.

World War 3: China condemns U.S. attack on Pakistan, pushes to build bases in Pakistan

“China is deeply shocked by these events, and expresses strong concern for the victims and profound condolences to Pakistan.”-Hong Lei, Chinese Foreign Ministry spokesman

China is condemning the recent U.S. led NATO/ISAF attack on Pakistani troops. China and Pakistan are steadfast allies, with China being Pakistan’s number one military supporter.  The United States is still Pakistan’s second biggest military supporter, even after canceling $800 million in military aid back in July.

China and Pakistan just finished joint war games days before the NATO/ISAF attack.

China is also negotiating with the Pakistani government to set up Chinese army bases in areas of Pakistan that border China’s Xinjiang province.   The Pakistani government has also asked China to build a naval base at the southwestern seaport of Gwadar, in Balochistan province.

Business/Economics, International, Technology, U.S.

Global Economic War: Start calling it Amazon China

“The Chinese e-commerce market will have a lot of winners, and Amazon China will be one of them.”-Wang Hanhua, president of Amazon China

In 2004 U.S. based Amazon entered the Chinese market, by taking over Joyo.com, a Chinese online book store.  They now have a new name: Amazon China.

The new name is a result of explosive growth thanks to the domestic Chinese economy.  Amazon China just opened the largest operations center outside of the United States, in Kunshan, Jiangsu province.  According to Chinese media it covers 120,000 square meters (1,291,669 square feet)!

“We are fully aware of the potential of this business, but we need to be prepared in logistics, packing center and operation systems.”-Wang Hanhua, president of Amazon China

Amazon China accounts for one third of all of Amazon’s global sales!

Wang Hanhua says one of the secrets to Amazon’s success in China is continued investment into marketing innovations: “Amazon China’s strategy is to invest continuously and focus on the long term market; that’s the reason why Amazon didn’t question its investment into China when it didn’t produce high returns.”

Now why can’t more Corporate America companies do that here in the United States?

Business/Economics, Idaho, International, Technology, U.S.

Global Economic War: Chinese owned Hoku about to start operations in Idaho. Will U.S. investigation into Chinese solar products put the brakes on Hoku’s operations?

“We believe the Department of Commence investigation will show that Chinese government and Chinese solar manufacturers are, and have been, engaged in illegal practices that threaten to decimate a vitally needed renewable energy industry.”-Gordon Brinser, SolarWorld Industries

After many problems affecting construction and causing long delays, on November 21, Hoku’s CEO, Scott Paul, announced they cleared a milestone in getting their Pocatello, Idaho, polysilicon factory up and running; connection to permanent electrical power supplied by Idaho Power.

Hoku also announced they will now be selling finished photovoltaic modules through a subsidiary called Tianwei Solar USA.  The finished products are made in China, by a company called Tianwei New Energy.  While Tianwei Solar USA is a subsidiary of Hoku Corporation, Hoku is actually a subsidiary of Tianwei New Energy, in China.

Now comes the U.S. Department of Commerce and the International Trade Commission.  They are investigating claims by seven U.S. based photovoltaic manufacturers, that Chinese based companies (like Tianwei, which controls Hoku) are breaking trade laws.

The International Trade Commission will render a decision around December 5.

Now comes China’s Ministry of Commerce.  In retaliation for the U.S. investigation into Chinese companies dumping their finished photovoltaic products on the U.S. market, the China Photovoltaic Industry Alliance claims the U.S. is dumping polysilicon at below cost prices in China!

So, Hoku’s polysilicon production for Chinese customers, mainly their majority owner Tianwei, is being threatened by an investigation by the Chinese government, AND, Hoku’s selling of Tianwei’s photovoltaic products is being threatened by an investigation by the U.S. government!

Hoku is trapped between a rock and a hard place.

WHAT ECONOMIC RECOVERY? HOKU, IDAHO, FINALLY TO START POLYSILICON PRODUCTION?

International, U.S.

World War 3: “Long live China, long live Pakistan!”, new battle cry heard in Pakistan

On November 24, just one day before U.S./NATO helicopters attacked and killed at least 24 Pakistani soldiers, Chinese and Pakistani forces concluded a massive joint war game in Punjab Province.

During the Cold War, China and Pakistan were close allies, it looks like they still are.

Punjab province is one of the largest geographically, and has about 56% of Pakistan’s population.  It borders India, and is very close to the border areas of Afghanistan.

The joint China/Pakistan war games involved 540 troops, mainly airborne units. It’s the fourth joint China/Pakistan exercise since 2006.

China is Pakistan’s number one military backer.

The reason for the Chinese supporting Pakistan is the same as during the Cold War; to counter the growing power of India.

Pakistani officials say it will help them deal with the U.S.: “It’s not a zero-sum game. You further strengthen your relations with China, then you increase your importance. You use this as a leverage to improve your relationship with the U.S.”-Talat Masood, retired Pakistani general

 

Business/Economics, International, Technology, U.S.

Global Economic War: Apple now takes the Chinese Yuan, over the U.S. Dollar. Chinese buyers dominate the internet!

“The service has been there since last Friday. It’s really good news for our customers and local application developers.”-Apple China statement

California based Apple Incorporated decided to accept the Chinese yuan (aka Renminbi, or RMB) in an unannounced move last week. One reason is that China is now the world’s biggest internet market!!!

The App Store will now accept yuan credit and debit cards issued by more than 20 Chinese banks.  Another reason for the move is that many Chinese customers using credit and debit cards issued from outside China, were getting their info ripped off.

Apple’s fiscal 4th quarter revenues from China hit $4.5 billion. Their U.S. operations had more revenue, but revenue from China is growing so fast it will soon pass up the revenues made in the U.S.

Business/Economics, International, U.S.

Global Economic War: Chinese Yuan could replace the U.S. Dollar within 10 years

“Chinese financial authorities are laying the groundwork for these ambitions via a series of bilateral arrangements with foreign companies and financial centers. While dollar denominated financial markets retain a substantial advantage over their RMB denominated counterparts in terms of new issuances, the RMB markets have made remarkable progress in less than one year.”-U.S.-China Economic and Security Review Commission

RMB; aka renminbi, aka yuan.

“Chinese economic dominance is more imminent and more broad-based, encompassing output, trade and currency, than is currently recognized. By 2030, this dominance could resemble that of the United States in the 1970s and the United Kingdom around 1870.  And this economic dominance will in turn elevate the renminbi to premier reserve currency status much sooner than currently expected.”-Arvind Subramanian, economist

 

Business/Economics, International, Opinion, U.S.

Global Economic War: China playing ping pong game with U.S. & European bonds

A report in the Chinese media got me thinking.  There’s a definite pattern to China’s buying and selling of U.S., and European, government bonds (sovereign debt).

In the first three months of 2011 China sold off U.S. bonds.  Then, from April through July bought U.S. bonds.  In August China sold off U.S. bonds big time; $36.5 billion worth! Now they’re back to buying.

The U.S. bond sell offs happen when news of the performance of the U.S. economy is really bad, and Europe is looking better.  In August, the big sell off came when the credit rating for the U.S. got downgraded.  For the past few months the really bad economic news is coming from Europe countries, and China has been buying U.S. bonds big time.

China is playing a sovereign debt investment ping pong game.  The ball is their money, and the paddles are the United States and Europe.

The Chinese media even reports that the Chinese holding of foreign exchange reserves must be flexible and ever adjusting to market conditions.

But I wonder, which is coming first, the chicken or the egg?  I’ve also noticed that Chinese officials tend to lead European and U.S. officials into thinking China is about to make big strides towards bailing out their economies, then the Chinese back off.  So, from here on out it would be wise to watch the timing of offers of economic help, then backing off of those offers, with the buy ups and sells offs of U.S. and European bonds.

Business/Economics, Fukushima

Global Economic War: Japanese industry moving to China

Since the 11 March 2011 disasters, Japanese industries moving to China has increased 65%.  That’s according to the Chinese Commerce Ministry.

There are two big factors why Japanese industries are moving to a mortal enemy’s territory: Money and Electrical Power.

Since the March disasters, including the ongoing Fukushima Daiichi meltdown, about half of Japan’s nuclear power plants are shut down.  The problem is that Japan built it’s current industries around nuclear power.  There just isn’t enough alternative electricity sources to power Japan’s factories.

Also since March, the Japanese yen has been going up in value.  This makes it more expensive to build things in Japan; Japan has no significant resources so it must import everything.

Japanese media are finally getting concerned about the growing unemployment there, mainly because so many factories have shut down and moved out of the country.

I wounder how this will affect the plans to create a TPP (Trans Pacific Partnership), especially since one of its goals is to block out China.

International, U.S.

World War 3: Peaceprize winner, Obama, sending thousands of U.S. Marines to Australia. Prep for war with China, or trying to save money?

“With my visit to the region I am making it clear that the United States is stepping up its commitment to the entire Asia-Pacific region.  But the second message I’m trying to send is that we are here to stay. This is a region of huge strategic importance to us.  Even as we make a whole host of important fiscal decisions back home, this is right up there at the top of my priority list.  And we’re going to make sure that we are able to fulfill our leadership role in the Asia-Pacific region.”-Barack Obama, Noble peace prize winner & President of the United States

After nearly four years as President of the United States, Barack Obama finally makes an official visit to Australia, where he announced the deployment of 2,500 Marines!

U.S. officials claim it’s partly at the request of the Australian Prime Minister, Julia Gillard.  Foreign policy analysts say it’s really about surrounding China with U.S. forces, in preparation for war.

Currently the U.S. and dozens of Asian/Pacific countries have been discussing the creation of a TPP (Trans Pacific Partnership, or free trade zone).  China has been deliberately left out of those TPP negotiations.  In fact, many of the governments of the smaller Asian countries are pushing for the TPP as a way of protecting themselves, economically, from China.

Another possibility is that the U.S. Department of Defense is trying to cut costs, shutting down state side bases.  Part of this move, to send the USMC to Australia, includes training of U.S. military pilots in Australia, rather than the U.S.  Obama said U.S. forces will jointly train with their Australian counterparts.

The important thing is that this is definitely an overt move of expansion on the part of the struggling U.S. Empire: “…the first long-term expansion of the American military presence in the Pacific since the end of the Vietnam War.”– New York Times

 

Business/Economics, Idaho, International, Technology, U.S.

U.S. increases embassy staffing in Brazil & China. Officially it’s to help foreign students come to the U.S. Unofficially it’s to bring in cheaper labor to the U.S., and help U.S. citizens leave the U.S.

“Idaho’s the last state that should say we don’t want to do business with Asia. Asia’s where the money is.”-Brad Little, Lieutenant Governor of Idaho

Recently the U.S. Department of State announced they were increasing staffing in China and Brazil.

Most U.S. and Chinese media reports suggested this was due to the increasing number of foreign students wanting to go to school in the United States.  The Chinese media even said it was a money making scheme for U.S. colleges: “A number of state governments in the U.S. are tightening their grip on education spending, which means smaller subsidies for public colleges to pay teachers and fund research. International students on average pay far more for tuition expenses than U.S. residents.”-ChinaDaily

According to U.S. Department of Commerce (yes it’s a “department”, not an “agency” as Rick Perry said), it’s also about the money Chinese tourists bring to the U.S.  In 2010 those visitors contributed more than $5 billion to the U.S. economy.

What about Brazil? In 2008 there were reports that Brazilians working in the U.S. wanted to go back to Brazil.  Now the U.S. State Department claims they can’t keep up with demands from Brazilians wanting to come to the U.S.

In September a report showed that the U.S. government has been wooing new Brazilian companies to move to the U.S.

EverWrite and DeskMetrics were two companies mentioned.  Young Brazilian entrepreneurs say it’s much too hard to start a new company in their home country, so they move to the United States (that’s funny ’cause just this past week Idaho business leaders told our U.S. Congress that it’s too hard to maintain a business in the United States).

Chinese businesses are being wooed here as well.  This brings me to one of two points; that increasing U.S. Embassy staffing in China and Brazil is really about bringing foreign workers into the U.S.  You see, many of those Chinese and Brazilian companies are bringing their own employees.

In fact, here in Idaho our state leaders have made a deal with the Chinese.  They will have their own 10,000 to 30,000 acre industrial and housing zone south of the Boise Airport, with their own Chinese employees, and even some level of national sovereignty.

“I think China’s coming over here shows they are willing to collaborate on the re-invigoration of the American industrial base.”-Jeff Don, Idaho representative for the Chinese company, called Sinomach

Here in southeast Idaho the Chinese have already moved in.

Sinomach is China’s third-largest contractor, and pressured Southeast Idaho Energy for a contract to build SIE’s $2 billion goal gasification fertilizer plant in Power County.  In May, 2011, SIE closed its American Falls, Idaho, office claiming they were trying to reduce operating expenses.

A polysilicon factory is just about to start up in Pocatello.  It’s run by Hoku International, which is now a subsidiary of a Chinese company.  The few local employees hired went to China to learn about their job duties.  So far no more word on anymore local hires, which makes you wonder if the main Hoku labor force will be coming from China?

Officials in Boise, Idaho, admit they’re working with more Asian corporations: “We’re getting calls from investors from all across Asia who are interested in Idaho.”-Cece Gassner, assistant to the mayor of Boise, for economic development.

The other point (regarding increased U.S. Embassy staffing) is that U.S. citizens are flocking to China and Brazil.

Japanese, and even PBS, media reports show that many U.S. citizens aren’t waiting until they’ve been hired to move to China; there’s a growing number of U.S. citizens who’ve moved to China, and are still looking for employment.  In fact many U.S. job seekers in China, are finding that they’re competing not only against Chinese job seekers, but their fellow U.S. citizens.

In Brazil, the current population, according to the World Bank, is more than 194 million people. That’s an increase of almost 3 million since 2008!  Most of those people moved to Brazil, many from the United States.