Tuesday, December 28, 2010

US should learn from Germany and successful economies rather than blame China

The US economy would be out of the doldrums more quickly if the Treasurer paused to think and chart out a workable strategy than to find convenient scapegoats for its problems.

Economies such as Canada, Japan, and Germany which have savings surpluses, typically run trade surpluses.  Perhaps the USA should learn to do things more like them than to be a spoiler.

http://www.msnbc.msn.com/id/21134540/vp/40564662#40564662

" BERLIN - CHANCELLOR Angela Merkel has defended her nation's trade surplus as evidence of the quality of German products and warned that distortion of currency exchange rates would dampen global economic recovery.

In comments to Die Welt's online edition released on Tuesday, a day before she departs for the Group of 20 economic summit in South Korea, Dr Merkel said her nation's trade surplus of 16.8 billion euros (S$29.9 billion) reflects 'how competitive German products are.'

Dr Merkel echoed her finance minister's criticism of the US Federal Reserve's recent cash injection, and compared it with China's currency policy.
She said that currency rates should not be held artificially low in an effort to boost trade and that the euro should not be forced to support a 'one-sided adjustment.' -- AP "

http://www.straitstimes.com/BreakingNews/Money/Story/STIStory_601434.html

The allegation that China's currency manipulation was the "cause" of US trade deficit is oversimplifying economic theory.  This is a lame excuse for one's own inefficiency and mismangement. '

On the contrary, the "undervalued" yuan has benefitted many poor and middle class Americans who could afford cheap imports of basic necessities (that don't bother the rich as much because they only spend a fraction of their income on or on other expensive substitutes).

Moreover, with everyone protecting its national interests (including the Japanese yen manipulators), it is understandable and unsurprising that China has to cushion global crises and safeguard unemployment for its billion workforce.

Saturday, December 25, 2010

Asians rote learning score merits if complemented by creativity - Shanghai's success in PISA

It is not an achievement that is easy to replicate. The Shanghaiese must have got things right somehow. Combining acquisition of knowledge with stimulation of creativity seem to be the right formula for success. 

These bright kids will reap the most benefits when they go to America and Europe for their tertiary and post-graduate education. All owing to the strong foundation and knowledge acquired  in the early years of their education.

http://www.asianweek.com/2010/12/10/shanghai-owns-the-international-pisa-science-math-test/

http://www.nytimes.com/2010/12/07/education/07education.html

Wednesday, December 22, 2010

Smart and Green - Made in China and the real inside story behind currency manipulation allegations and trade deficits

While China is entering the brave new world at breaking neck speed and setting new records every year, many of us in the developed who have been lulled into complacency have developed a penchant for blaming others for our own slack.    

Smart and green - and made in China

Excerpts

The beat goes on about America's massive trade deficit with China, China's mountain of accumulated greenbacks, and its unwillingness to let its currency rise against the staggering US dollar.

But the headlines about the world's biggest and most unbalanced bilateral economic relationship obscure what is really going on in US-China economic relations.

These imbalances are no doubt an enormous political problem. Americans complain that unfair Chinese trade costs them millions of manufacturing jobs. Beijing is spooked by the prospect of a hot money asset bubble. The G20 thinks US-China-led global imbalances threaten a sustainable recovery.
But the world economy is way ahead of the politics. Enter Apple's iPhone and BYD's E6 electric car.

The trade statistics show that last year more than 11 million iPhones were "made in China" and shipped to the US at a total value of just over $US2 billion. There were about $US100 million in American parts in these iPhones. So iPhones added about $US1.9 billion to the official US trade deficit with China.

But research by the Asian Development Bank uncovers the economic reality written on the back of every iPhone, "designed in California, assembled in China". It says components from Germany, Japan and Korea make up about two-thirds of the $US200 wholesale price of an iPhone. Chinese assembly of them is worth only about $US6 per iPhone, less than half the cost of the American parts.

As a result iPhones were a net export of about $US50 million from the US to China, not the $US2 billion deficit in the trade statistics. Germany, Japan and Korea were net exporters to China. And none of this takes into account the 50 per cent or so profit Apple made on iPhone retail sales.

If Americans want to complain about the evils of iPhone globalisation, they should be worrying about why the disk drives, memory and screens come from Germany, Japan and Korea rather than the US.

In fact, iPhones are a perfect example of where China no longer wants to be in the global economy. For the past 25 years, China has been a low-cost assembler of products like Apple's. This has helped lift hundreds of millions of Chinese out of poverty.

Now Chinese citizens in coastal mega cities, such as Shanghai and Shenzhen, earn too much and want better working conditions than Apple assembly jobs. Cheap assembly jobs are moving to countries such as Vietnam. Protests against working conditions in Chinese factories are rising.

This is why China is trying to position itself as a global greentech leader. BYD, "build your dream", offers a window into the transformation that is taking place in the Chinese economy.

The US is BYD's first target market for the E6, through its new Los Angeles headquarters for marketing and distribution. The E6 will sell in the US for about $US40,000, more expensive than the hybrid Prius but about half the cost of a Tesla, the Silicon Valley electric sports car that competes for attention with Porsches rather than the Prius.

BYD E6 electric car sales in the US will be tiny next year. Americans may demand more creature comforts than BYD offers. But the fact that a Chinese company is pioneering what could be the must-have consumer durable of the next decade is extraordinary.

Rather than fretting about low-tech Chinese assembly of goods often designed in America, the US should be worrying about mass Chinese production of high-tech electric cars to get ahead in the coming green race.

-  written by Professor Geoffrey Garrett is chief executive of the United States Studies Centre at the University of Sydney. 

Published on December 23, 2010

http://www.smh.com.au/opinion/politics/smart-and-green--and-made-in-china-20101222-195ho.html

China's latest Hormone Milk Scandal Update

Following the major upheaval over domestically manufactured melamine tainted milk powder in 2008, recent news reports are not more platable to consumers. 

China's Health Ministry orders probe into milk powder hormone claims. 

Parents and doctors in Hubei were reported earlier this month voicing fears that milk powder produced by Syrutra had caused at least three infant girls to develop prematurely.

Ministry spokesman Deng Haihua said at a regular press conference that food safety authorities were already testing samples of milk powder made by Syrutra, a dairy company set up in Qingdao, a coastal city in east China's Shandong Province, in 1998.

Causes for sexual prematurity of children were complicated and could be caused by a wide range of factors, and experts had no way to definitely determine if food or environmental factors were involved yet, he said.
Deng said a 2008 regulation banned sales and reproduction of products made from livestock under the influence of drugs, or those failing to pass health and quarantine inspection standards.

He said estrogen hormones were forbidden in milk powder products and the Ministry of Agriculture had formulated test procedures for estrogen hormones and had provided them to Hubei authorities.

Syrutra's stock prices at Nasdaq fell by almost 27 percent on Monday.
The statement said it was "unscientific and unreasonable for some media to blame premature puberty on the milk formula."

Syrutra's claim was backed by some experts.

Yao Hui, deputy head of the endocrine department of Wuhan Children's Hospital, said among the latest cases treated for the condition at the hospital, three of the four children had never eaten baby formula made by Syrutra. The other baby used to eat Syrutra formula, but switched to other brands last year.


Unlike the melamine case, dairy companies would gain no commercial benefit from adding hormones to its products, Monday's Beijing Times quoted Wang as saying.

But that did not make the milk formula hormone-free, Wang said, adding the substance might have entered the food chain when cattle were reared by farmers.

http://news.xinhuanet.com/english2010/china/2010-08/10/c_13438812.htm

Owing to the benefit of its quick modernisation, surely China could learn from past mistakes and skip the scandals that plagued the USA milk industry in the last century.

The Birth of America’s Dairy Industry

During the early years of commercial dairy production in the US, most dairies were in cities - and they were filthy. Stables held up to 2,000 cows that were fed the waste residues from grain used in nearby liquor distilleries and breweries. The milk produced by these urban dairies was known as “swill milk,” which would later be referred to by historians as “white poison.”

Because of the close relationship between alcohol production and swill dairies, some of the first reformers to call for stricter standards in the dairy industry were the anti-alcohol temperance groups. These early reformers pushed for the importation of “country milk” into the cities, taking advantage of new railroads and other transportation improvements. v Milk was transported into the cities by rail, but because it was transported without refrigeration, it was no healthier than swill milk.


The High Price of Factory Farmed Milk

With each passing year, more small to mid-sized dairy farmers go out of business. Worn down by production costs that always go up and income that is unpredictable at best, dairymen and women who have been in the business for generations are calling it quits, and are selling off their herds to corporate operations or selling their land for development. Others have tried to adapt by getting big instead of getting out—increasing production through the use of artificial hormones, antibiotics, and highly-concentrated feed, and moving cows off pasture and into large confinement facilities.

Meanwhile, consumers are buying low-quality milk that is potentially harmful to their health. The only winners in this system are the dairy corporations that are willing to go to great lengths to cut costs and increase profit, regardless of the consequences for consumers, animals and the environment.

http://www.sustainabletable.org/issues/dairy/
Breeding, Artificial Hormones and Feed

Because it’s cheaper to produce more milk from fewer cows (smaller herds require less space, feed and other inputs), the corporate dairy industry aims to maximize efficiency by increasing the amount of milk that each cow produces. As a result, the use of breeding, feeding inputs and new technology led to a quadrupling of the average amount of milk produced per dairy cow between 1950 and 2005.

With the invention of artificial insemination, farmers have been able to take tight control over the breeding and genetic makeup of their dairy herds. Using this technology, a single bull may sire tens of thousands of cows, thus minimizing the diversity of the dairy cow gene pool.

Not only are cows bred to produce maximum quantities of milk, their feed consists of fat, energy, and protein-rich grains to increase milk production and replace the energy lost by giving off such large quantities of milk. However, since cows are naturally grass-eaters, they develop digestive problems when they feed on primarily grains like corn and soy. xxi But perhaps the most drastic measure that dairies take to boost milk production is the use of artificial growth hormones such as rBGH - said to increase per-cow milk yield by 10-15 percent.

All of these practices do not only result in health problems in cows, they may also be dangerous to humans that consume their milk.

Food Safety - Chinese authorities must clamp down on unsafe

Food hygiene and safety have beeen serious concerns in a massive country where some immoral and ignorant businesses have exploited loopholes and cause detriment to human lives.  A country can only be strong if its citizens are of good health - both physical and soul.  What is the point of showing off achievements in technology, economics and space when harm is done to the people on earth.


It may be theoretically and scientifically plausible to make of recycled human protein waste but to use hair in food is yucks!  The rumour about extracting amino acids from human hair for fermenting soy beans to make soy sauce has been around for a while. It was not until recently that the authorities have stepped up efforts to close down such factories and punish the perpetrators. Other negative publicity have been made of fake eggs and plastic milk.  In the latter, the victims are babies! More action needs to be done and quickly to prevent more innocent people from falling sick.

Interfax reports that media exposure has forced the government to respond to a scandal about soy sauce that was being made from human hair:

"The Chinese government has shown an unusually high level of concern as a result of a bold media exposure towards a scandal in which human hair was used to make soy sauce. The government has now ordered an immediate inspection of all domestic food seasoning plants before the end of January.

China Central Television (CCTV), the state television station, first raised public worries over the quality of domestic soy sauce by uncovering a substandard workshop in central China's Hubei Province, where piles of waste human hair were found. The hairs were treated in special containers to distill amino acid, the most common substance contained in soybean sauce.

Human hair is rich in protein content, just like soybean, wheat and bran, the conventional and legally accepted raw ingredients for the production of soy sauce."

http://www.danwei.org/internet/soy_sauce_made_from_human_hair.php

Saturday, December 18, 2010

Musicians on Invisble Chairs at Closing Ceremony of Shanghai Expo - illusion or levitation

Amazing performance at the Shanghai Expo closing ceremony!





Does it make you wonder how the musicians are able to levitate in the cross legged position for the whole performance?

http://www.youtube.com/watch_popup?v=6HfDeTVpinU&vq=medium

Check this out :

KLM Royal Dutch Airlines captured the imagination of travelers when they hired magician Ramana to perform his famous trick at Skipol Airport in Amsterdam last December to advertise the benefits of the airline’s new economy comfort option.

The marketing stunt continued at Manchester Airport T2 in February where English passengers seen a guy sat on what appeared to be an invisible chair, legs crossed, casually reading a newspaper.

http://www.djmick.co.uk/travel/klm-economy-comfort-invisible-chair-illusion-video/

Another video clip in spanish :

http://www.metacafe.com/watch/3496870/invisible_chair/

It is possibly a "chair" resting on a slanted pole that is aligned to his shoes that runs up his pants to the buttocks.  What say you?

Invisible chair trick explained?

http://www.invisiblepr.com/search/klm%20invisible%20chair%20trick%20explained/

Inspiration for artistic ideas - invisible or disappearing legs of chairs.

http://cdn.dornob.com/wp-content/uploads/2009/11/invisible-disappearing-chair.jpg

http://dornob.com/invisible-chair-disappearing-designs-hidden-structures/

Saturday, December 11, 2010

China model : western democratic model not at this stage, or never

A frank opinion and balanced assessment from a Norwegian academic which exposes the prejudices of the Nobel prize Committee.

Judge for yourself.  If you read widely and weigh the odds, you won't believe everything that the mass media (profit driven and backed by powerful interest groups) feeds its readers.  But of course, certain powers would also try to conceal the truth, spread false rumours, in order to cast doubts on the credibility of others and make their own kind look noble and impeccable.

Quotes :

Big mistake to award Nobel Peace Prize to non-contributor to peace: Norwegian professor

Ironically, Kolstad said, many in the West still believe that their system is the best in the world and has to be exported to all other countries, "in some countries by force and wars, and in other countries by supporting those who are believed to represent these values and ideas."

"To state that parliamentary democracy and freedom of speech is a guarantee for peace and end of armed aggression is a mistake," he said.

Commenting on the Nobel Committee's claim that it is independent of political influence, the professor said: "There is definitely relationship to the official political system in Norway." He noted that the committee leader is also a former Norwegian prime minister and president of the parliament.

China has made remarkable progress in human rights, such as plugging starvation, curbing crimes and promoting food safety, which are "important not only for a developing and still poor country like China, but for developed countries as well," Kolstad said.

"In this way, the Western world can learn human rights from China," he added.
Meanwhile, China carries a "relational" culture where people seek relationships and harmony and are less inclined to stay out as independent and autonomous human beings than those in Western societies, Kolstad said.

It is also simply unfair to label China as an undemocratic country, he stressed, explaining that China adopts "another kind of relationship between those in power and the people."

"The parliamentary system with more parties is not the only way to give people influence on political decisions and the future of their country. We have to accept that other countries choose other political and democratic solutions, based on their culture and level of development," he said.

"I do not know if it is more democratic to have a system where presidential candidates have to be extremely rich to run for presidency," he added.
Lurking underneath the West's uneasiness and faultfinding with China, Kolstad pointed out, is that many in the West do not like to see a big and in many way successful country like China having another political system, based on other cultural values than is accepted in the West.

"I look at China as a peaceful, not aggressive country compared with most developed countries in the world. China does not take part in wars, it tries to solve international problems with dialogue," he said.

"I therefore think it is unfair to give a Peace Prize to the opposition and dissidents in China instead of giving it to the president, as in the U.S.

http://www.english.news.cn/


"Liu Xiaobo has, as far as I know, never contributed in any conflict-reducing activity or take part in peace-related activities," Professor Arnulf Kolstad of Norwegian University of Science and Technology told Xinhua.
"I therefore cannot see that the peace prize winner fulfills the most important criteria in Nobel's testament. Therefore it is a mistake," added the professor of social psychology and China expert.

The professor explicitly rejected the Norwegian body's argument that Liu's struggle for human rights, especially the freedom of speech, and a Western parliamentary democratic system in China is a prerequisite to world peace.
Many countries that have long followed the Western political system, such as the United States, Britain and Norway, have been among the most aggressive military powers in the last 50 years, occupying and starting wars in others countries like Iraq and Afghanistan, he noted. 

To state that parliamentary democracy and freedom of speech is a guarantee for peace and end of armed aggression is a mistake," he said.

http://www.chinadaily.com.cn/xinhua/2010-10-13/content_1000948.html

Clarification

A Norwegian professor explicitly rejected a claim he “denounced China for slander” during an interview by the Voice of Germany (Deutsche Welle) on October 17, 2010. Arnulf Kolstad, a professor with the Norwegian University of Science and Technology, stressed that he had never made such statement and insisted he had been dissatisfied with the Nobel Peace Prize committee during interviews from both Norwegian and foreign media.

On October 8, professor Kolstad said “This is a wrong decision (to give Liu Xiaobo the 2010 Nobel Peace prize)” while he accepted an interview with the World’s Road (Verdens Gang).

The Oslo bureau of Xinhua new agency interviewed professor Kolstad on Oct 12 and completed a story with the headline “Big mistake to award Nobel Peace Prize to non-contributor to peace”. After the publication of the article, a post claimed professor Kolstad made a quick statement once he heard of the Xinhua’s report that “it’s a complete rumor and a trick of Joseph Goebbels.”

In a telephone interview with the Voice of Germany (Deutsche Welle, DW), Arnulf Kolstad confirmed that he had given an interview to Xinhua, and that the views he voiced in the interview were nothing special. He also said that he had not issued a statement accusing Xinhua of fabrication afterwards, and was not aware of news about such a statement. As early as the day the prize was announced, the DW reporter also noted, Norwegian media had published his interview and its contents are much the same as the Xinhua report.

Kolstad also expressed in an interview with the Oslo bureau of Xinhua News Agency that his views have not changed. He said, "I have never published the so-called statement. I stand by everything I say, I did not withdraw anything I said. The statement online is not correct and is pure rumor."

http://www.washingtontimes.com/news/2010/oct/15/after-peace-prize-china-targets-winners-friends/

Thursday, December 9, 2010

China's Confucius Peace Prize versus Nobel Piss Price

Zeng Yuhan accepted China's first peace prize today. There was not much fanfare and probably not as "prestigious" as the better known Nobel peace prize.  Nevertheless, it has certainly caused quite a stir and challenges the existing order. Should the western influenced Nobel committee continue to determine and impose its values and aspirations on less developed countries?  Apparently, China's economic power allows it to reject ideas that has passed through the western prism.

Quote :

" Zeng was chosen to accept the award on behalf of Lien Chan, the real winner and Taiwan's former vice president, because "children symbolize peace and future."

Members of the prize jury said Lien, who they deemed had made major contributions to bridging the gap between Taiwan and mainland China, could not attend the event for "reasons known to everyone" -- but apparently not to the recipient himself. "

http://edition.cnn.com/2010/WORLD/asiapcf/12/09/china.confucius.peace/?hpt=T1


The Nobel Peace Prize is not like before. It has even been called a "piss" price by some commentators. This may be attributed to the inclination to subscribe strictly to standards set by liberal democrats, yet tarnished by hypocrisy and inconsistency.

Mahatma Gandhi did not win an international peace prize though he was nominated five times. But we are aware of his opposition to British colonial rule over India.

Deng Xiaoping deserves to win a human peace award for opening up China to the world, business, capitalism and freed a billion Chinese people from poverty and hunger.

If Tiananmen was a blemish for Deng, why wasn't Guantánamo a hindrance to President Obama receiving the Nobel Peace Prize? 

 http://www.nytimes.com/2010/11/12/opinion/12iht-edmahbubani.html?_r=1&ref=liu_xiaobo

Stop arresting terrorist suspects and rioters in the name of freedom!  Must one only gain respect by following the rules and path dictated by those who have dominated and set the rules in the last two centuries? 

Unless there is mutual respect and level playing field, it looks like the Nobel Committee must review the conduct of affairs and decisions or else other contenders will give them a good run for its money.

The heroic Liu Xiaobo portrayed in the western media probably has more supporters outside mainland China than among the people he supposedly championed for.  Even a generous estimate of a million Chinese supporters represent barely 0.1 per cent of the total Chinese population.  The reality is probably much less. 

The People's Republic of China is made up of ethnically diverse communities and huge land mass with disparity in development.  China must bide time for an educated middle class to develop and evolve into a broad based democratic system that suits local context.  A free for all and complacent sort of democracy that has failed many developed countries would unravel all the economic gains and nation building efforts achieved  in the last 30 years. 

Wednesday, December 8, 2010

Wikileaks : Advice to the US on China -- what Lee Kuan Yew told Steinberg

It is well known that many US officials who are keen to learn more about Asia, especially the rise of China, has sought the views of elder statesman Lee Kuan Yew, the former Prime Minister of Singapore. Much of the speculations from dubious sources (also stemmed from Wikileaks) do not have the connections and profound understanding of Chinese history, system of government, economy and people.

WikiLeaks: What Minister Mentor Lee Kuan Yew told Deputy Secretary of State James Steinberg (on May 30, 2009)


MM Lee said he believes Japan may well ‘go nuclear’ (if North Korea becomes a nuclear power).

MM Lee said the Chinese do not want North Korea to have nuclear weapons. At the same time, the Chinese do not want North Korea, which China sees as a buffer state, to collapse. The ROK (South Korea) would take over in the North and China would face a U.S. presence at its border. If China has to choose, Beijing sees a North Korea with nuclear weapons as less bad for China than a North Korea that has collapsed ... 

MM Lee expressed worry about the effect on Iran if the DPRK (North Korea) persists (in its nuclear ambitions). MM Lee said he believes the DPRK can be contained and will not proliferate, but Iran has very high ambitions, ties to Shiite communities outside Iran, and oil wealth.

MM Lee said the ROK (South Korea), after seeing what had happened with German unification, does not want immediate unification with the DPRK (North Korea). There is ‘nothing there’ in the DPRK, other than a military organization. Kim Jong-Il has already had a stroke. It is just a matter of time before he has another stroke. The next leader may not have the gumption or the bile of his father or grandfather. He may not be prepared to see people die like flies. China is calculating all this. They have their best men on the job. They want to help the United States to advance common objectives. But they do not want the South to take over the North, MM Lee said.

...  in the absence of a social safety net in China, the Chinese savings rate is 55 percent, exceeding even Singapore’s 50 percent level. Consumption accounts for only 35 percent of Chinese GDP, as opposed to 70 percent of U.S. GDP. The Chinese leadership may be loath to shift permanently to a more consumption-oriented economy, but the leadership will do so temporarily, if only to avoid unrest… The pragmatists are in charge. There is nothing Communist about it. They just want to preserve one party rule…  
 
MM Lee said China is following an approach consistent with ideas in the Chinese television series The Rise of Great Powers. The mistake of Germany and Japan had been their effort to challenge the existing order. The Chinese are not stupid; they have avoided this mistake. China’s economy has surpassed other countries, with the exceptions of Japan and the United States. Even with those two countries, the gap is closing, with China growing at seven-nine percent annually, versus two-three percent in the United States and Japan. Overall GDP, not GDP per capita, is what matters in terms of power. China has four times the population of the United States. China is active in Latin America, Africa, and in the Gulf. Within hours, everything that is discussed in ASEAN meetings is known in Beijing, given China’s close ties with Laos, Cambodia, and Burma, he stated.

... the best course for the US is to build ties with China’s young people. China’s best and brightest want to study in the United States, with the UK as the next option, then Japan. While they are there, it is important that they be treated as equals, with the cultural support they may need as foreigners…Why not have Chinese cadets at West Point alongside Vietnamese cadets and Indian cadets?… MM Lee noted that his own experience as a student in the UK had left him with an enduring fondness for the UK. When he spent two months at Harvard in 1968, an American professor had invited him home for Thanksgiving. This was not the sort of thing that happened in the UK, and Lee had realized he was dealing with a different civilization. In the future, China’s leaders will have PhDs and MBAs from American universities, he predicted.

http://www.pressrun.net/weblog/2010/11/wikileaks-what-lee-kuan-yew-told-steinberg.html

(The document which was originally posted on whistleblowing site http://cablegate.wikileaks.org/cable/2009/06/09SINGAPORE529.html  has been disabled by the powers that be.)



Two leaders but with totally different assessments. You would recall that in another Wikileaks revelation, Australia's Foreign Minister Kevin Rudd (last Prime Minister) talked tough and told his US counterpart Hilary Clinton that Australia to go to war with China should the latter fail to integrate with the international order.  The US despite being a strong miliary ally of Taiwan, Japan and North Korea would not fathom this as a likely scenario.  Given that China enjoys economic properity under peaceful circumstances, alternative avenues have been built to avoid using force for reunification and foreign policies. Rudd has been described as a boastful Mandarin speaking control freak by his own colleagues. His belligerent advice is uncalled for. There is much the western world could learn from LKY who is seen as the bridge between East and West.