China, Japan and South Korea are dominating growth in international patent filings in a dramatic demonstration of the shift of scientific and economic power to northeast Asia, figures released on Wednesday showed.
The World Intellectual Property Organization said China had increased its international patent filings in 2010 by an astonishing 56.2 percent to 12,337, triple its 2006 figure and pushing it into fourth place in global rankings.
Showing posts with label Economy of Asia. Show all posts
Showing posts with label Economy of Asia. Show all posts
Wednesday, February 9, 2011
Thursday, December 30, 2010
PayPal plans China expansion
Beijing, China (FT.com) -- PayPal, the world's largest online payment platform, is planning an expansion in China, a move that could strengthen its parent Ebay in the expanding e-commerce market.
Through a co-operation agreement with the government of Chongqing, China's largest municipality, PayPal plans to offer a range of services -- including, for the first time, a foreign exchange settlement solution -- to Chinese entrepreneurs selling to consumers overseas.
China's online payment market had a transaction volume of Rmb725.5bn in the first nine months of this year and is expected to hit Rmb1,000bn ($151bn) for the whole year, according to Analysys, a Beijing-based internet research firm.
Chinese authorities have set a ceiling for individuals to convert foreign currency into local currency of $50,000 a year. PayPal said this regulation hindered small businesses and entrepreneurs from building a cross-border e-commerce business, and its payment platform would help small merchants get quick access to an export licence, which allows a higher conversion ceiling.
"The Chongqing government will be working with the relevant local authorities, like the Safe Administration of Foreign Exchange, to get the necessary regulatory approvals," said Dickson Seow of PayPal Asia Pacific.
The service has begun testing, and PayPal hopes to offer it to merchants all over China in the second half of 2011.
If successful, the platform should attract small Chinese vendors, the main customer base of Alibaba, the world's largest online marketplace for trade between companies, which had proved the nemesis for Ebay on its first foray into the Chinese market. The country has the world's largest online population with 440m users.
Ebay initially entered China with an auction site closely resembling its international service. After losing most of its market share to Taobao, the unlisted affiliate of Alibaba Group which dominates China's consumer-to-consumer e-commerce market, the US group changed strategy in 2006 and offered a platform for cross-border online trade.
Over the past year, Alibaba and Ebay have worked on opportunities for co-operation. However, AliExpress, a site launched by Alibaba this year that allows small online transactions between merchants and customers overseas, again put Alibaba in competition with Ebay's business in China.
Alibaba also has its own online payment service, Alipay, which dominates the Chinese market.
The Chongqing government's partnership with PayPal is an attempt to attract services linked to China's booming e-commerce industry to set up in the city. Hangzhou, the city where Alibaba's headquarters is located, has already succeeded in attracting services such as logistics, boosting the local economy and creating service sector jobs.
PayPal and Chongqing said that, in additional to the foreign currency settlement platform, they would set up five international e-commerce centres providing services such as training and verification to merchants.
The alliance comes as China prepares to regulate its third-party payment services more clearly. Providers of such payment platforms are required to apply for a licence by September next year, according to the central bank.
Source: CNN
http://edition.cnn.com
Through a co-operation agreement with the government of Chongqing, China's largest municipality, PayPal plans to offer a range of services -- including, for the first time, a foreign exchange settlement solution -- to Chinese entrepreneurs selling to consumers overseas.
China's online payment market had a transaction volume of Rmb725.5bn in the first nine months of this year and is expected to hit Rmb1,000bn ($151bn) for the whole year, according to Analysys, a Beijing-based internet research firm.
Chinese authorities have set a ceiling for individuals to convert foreign currency into local currency of $50,000 a year. PayPal said this regulation hindered small businesses and entrepreneurs from building a cross-border e-commerce business, and its payment platform would help small merchants get quick access to an export licence, which allows a higher conversion ceiling.
"The Chongqing government will be working with the relevant local authorities, like the Safe Administration of Foreign Exchange, to get the necessary regulatory approvals," said Dickson Seow of PayPal Asia Pacific.
The service has begun testing, and PayPal hopes to offer it to merchants all over China in the second half of 2011.
If successful, the platform should attract small Chinese vendors, the main customer base of Alibaba, the world's largest online marketplace for trade between companies, which had proved the nemesis for Ebay on its first foray into the Chinese market. The country has the world's largest online population with 440m users.
Ebay initially entered China with an auction site closely resembling its international service. After losing most of its market share to Taobao, the unlisted affiliate of Alibaba Group which dominates China's consumer-to-consumer e-commerce market, the US group changed strategy in 2006 and offered a platform for cross-border online trade.
Over the past year, Alibaba and Ebay have worked on opportunities for co-operation. However, AliExpress, a site launched by Alibaba this year that allows small online transactions between merchants and customers overseas, again put Alibaba in competition with Ebay's business in China.
Alibaba also has its own online payment service, Alipay, which dominates the Chinese market.
The Chongqing government's partnership with PayPal is an attempt to attract services linked to China's booming e-commerce industry to set up in the city. Hangzhou, the city where Alibaba's headquarters is located, has already succeeded in attracting services such as logistics, boosting the local economy and creating service sector jobs.
PayPal and Chongqing said that, in additional to the foreign currency settlement platform, they would set up five international e-commerce centres providing services such as training and verification to merchants.
The alliance comes as China prepares to regulate its third-party payment services more clearly. Providers of such payment platforms are required to apply for a licence by September next year, according to the central bank.
Source: CNN
http://edition.cnn.com
Wednesday, December 29, 2010
China will cut rare earths export quotas
China has said it will cut exports of rare earth minerals by 10% in 2011.
World manufacturers are heavily reliant on China for these minerals, which are essential for making many electronic goods, such as TVs and PC monitors.
China has 97% of the world's known supply of the goods. The US mined none last year.
Rare earth minerals have been a thorny trade topic for some time, and China has previously promised not to cut supplies drastically.
Rare earths are a collection of seventeen chemical elements in the periodic table: scandium, yttrium, and some fifteen lanthanides.
Shares in two Australian companies, which are planning to mine rare earths, jumped more than 10% on the news.
Australia's Lynas Corp , which owns the richest known deposit of rare earth outside China, rose 10.8% while its rival Arafura rose 11.1%.
The US last week said it was "very concerned about China's export restraints on rare earth materials, antimony and tungsten" and could still file a case on that at the World Trade Organisation.
In September, China blocked exports of rare earths to Japan after a territorial row but later resumed them.
The US does have some rare earth supplies and is hoping to start production.
There uses also include the manufacture of wind turbines and hybrid cars.
Growing demand
China has been reducing export quotas of rare earths over the past several years to cope with growing demand at home.
A Commerce Ministry spokesman has also said that China is cutting its supply side too, reining in exploration, production and exports because of what it says are environmental concerns.
The country also plans to raise duties on some rare earths and set up a trade association of suppliers.
China usually issues a second batch of quotas during the year, and it is not known how the figures will change later in 2011.
Japanese manufacturer Sony said Beijing's move was a hindrance to free trade - adding it would work to reduce its reliance on the minerals.
The firm said it was crucial to producing items including magnets, condensers, and abrasives for polishing glass on LCD screens.
Source: BBC
www.bbc.co.uk
World manufacturers are heavily reliant on China for these minerals, which are essential for making many electronic goods, such as TVs and PC monitors.
China has 97% of the world's known supply of the goods. The US mined none last year.
Rare earth minerals have been a thorny trade topic for some time, and China has previously promised not to cut supplies drastically.
Rare earths are a collection of seventeen chemical elements in the periodic table: scandium, yttrium, and some fifteen lanthanides.
Shares in two Australian companies, which are planning to mine rare earths, jumped more than 10% on the news.
Australia's Lynas Corp , which owns the richest known deposit of rare earth outside China, rose 10.8% while its rival Arafura rose 11.1%.
The US last week said it was "very concerned about China's export restraints on rare earth materials, antimony and tungsten" and could still file a case on that at the World Trade Organisation.
In September, China blocked exports of rare earths to Japan after a territorial row but later resumed them.
The US does have some rare earth supplies and is hoping to start production.
There uses also include the manufacture of wind turbines and hybrid cars.
Growing demand
China has been reducing export quotas of rare earths over the past several years to cope with growing demand at home.
A Commerce Ministry spokesman has also said that China is cutting its supply side too, reining in exploration, production and exports because of what it says are environmental concerns.
The country also plans to raise duties on some rare earths and set up a trade association of suppliers.
China usually issues a second batch of quotas during the year, and it is not known how the figures will change later in 2011.
Japanese manufacturer Sony said Beijing's move was a hindrance to free trade - adding it would work to reduce its reliance on the minerals.
The firm said it was crucial to producing items including magnets, condensers, and abrasives for polishing glass on LCD screens.
Source: BBC
www.bbc.co.uk
Friday, December 24, 2010
Japan agrees record 92.4 trillion yen draft budget
The Japanese government has approved a record level of spending of 92.4 trillion yen ($1.1tn; £711bn) for the next financial year.
The cabinet agreed the draft budget, which must still be approved by parliament before 31 March.
Japan's economy has suffered from deflation, a high yen that hurts exports, weak domestic demand and poor consumer confidence.
The budget is aimed at boosting the economy, but adds to public debt.
And some analysts have said the programme was unlikely to offer a big economic boost.
Reined in
Debt-servicing costs and social security spending making up about 55% of the budget.
Aid for local authorities accounts for another 18.2% of the budget. The remainder of the spending is split among defence, public works projects, education and technology.
The Democratic Party-led administration has promised to keep new borrowing at 44.3tn, in line with this year's level.
But Japan was forced to raise spending due to higher debt servicing costs.
Japan's public debt is expected to reach 891tn yen, or 184% GDP, by the end of March 2012, the highest among developed nations.
The government said tax revenues would be about 40.9tn yen in the next fiscal year, with another 7.2tn raised by raiding special reserves.
The government has already reined in spending programmes including handouts to fund childcare.
Source: BBC News
http://www.bbc.co.uk
The cabinet agreed the draft budget, which must still be approved by parliament before 31 March.
Japan's economy has suffered from deflation, a high yen that hurts exports, weak domestic demand and poor consumer confidence.
The budget is aimed at boosting the economy, but adds to public debt.
And some analysts have said the programme was unlikely to offer a big economic boost.
Reined in
Debt-servicing costs and social security spending making up about 55% of the budget.
Aid for local authorities accounts for another 18.2% of the budget. The remainder of the spending is split among defence, public works projects, education and technology.
The Democratic Party-led administration has promised to keep new borrowing at 44.3tn, in line with this year's level.
But Japan was forced to raise spending due to higher debt servicing costs.
Japan's public debt is expected to reach 891tn yen, or 184% GDP, by the end of March 2012, the highest among developed nations.
The government said tax revenues would be about 40.9tn yen in the next fiscal year, with another 7.2tn raised by raiding special reserves.
The government has already reined in spending programmes including handouts to fund childcare.
Source: BBC News
http://www.bbc.co.uk
Friday, November 12, 2010
China at No. 1 -- already
(CNN) -- As this interactive from CNNMoney shows, the U.S. is still by far the world's largest economy, despite the Great Recession and tepid recovery.
But China is coming on strong, passing Japan as the world's second largest economy and predictions that sometime in the next 10 to 15 years it will eclipse the U.S., too.
Some think it's already happened. A Pew Research Center poll last year found that 44 percent of Americans already thought China had become the world's number one economic power. Only 27 percent knew that the U.S. economy is still on top, nearly three times the size of China.
Still, there are several areas where China has already taken the mantle from the U.S. China has become the world's largest car market, a symbolic transition after the recession left Detroit in shambles. But some may not know that before cars, Chinese beer drinkers passed U.S. as top consumers in 2002, and now knock back nearly a quarter of all beer produced in the world.
Beijing is aiming to steer its economy away from exports toward domestic consumption -- and, in doing so, will inevitably supplant the U.S. as the top market destination for consumer goods.
"We expect China will overtake the U.S. as the largest consumer market in 2020," Fan Cheuk Wan, head of research for Credit Suisse Asia Pacific, told CNN.
If so, China will reach its goal of having half its GDP generated by domestic consumption in the next 10 years; currently about 33 percent of China's economy comes from domestic spending, Wan said.
"China cannot rely on the indebted consumers in the developed economies any more as a key growth engine in the next decade," Wan said.
By Kevin Voigt, CNN
Source: CNN
www.cnn.com
But China is coming on strong, passing Japan as the world's second largest economy and predictions that sometime in the next 10 to 15 years it will eclipse the U.S., too.
Some think it's already happened. A Pew Research Center poll last year found that 44 percent of Americans already thought China had become the world's number one economic power. Only 27 percent knew that the U.S. economy is still on top, nearly three times the size of China.
Still, there are several areas where China has already taken the mantle from the U.S. China has become the world's largest car market, a symbolic transition after the recession left Detroit in shambles. But some may not know that before cars, Chinese beer drinkers passed U.S. as top consumers in 2002, and now knock back nearly a quarter of all beer produced in the world.
Beijing is aiming to steer its economy away from exports toward domestic consumption -- and, in doing so, will inevitably supplant the U.S. as the top market destination for consumer goods.
"We expect China will overtake the U.S. as the largest consumer market in 2020," Fan Cheuk Wan, head of research for Credit Suisse Asia Pacific, told CNN.
If so, China will reach its goal of having half its GDP generated by domestic consumption in the next 10 years; currently about 33 percent of China's economy comes from domestic spending, Wan said.
"China cannot rely on the indebted consumers in the developed economies any more as a key growth engine in the next decade," Wan said.
By Kevin Voigt, CNN
Source: CNN
www.cnn.com
Thursday, November 4, 2010
Singapore 'best country in which to run a business'
Singapore remains the best country in which to run a business, according to an annual report by the World Bank.
The Asian nation has come top of the World Bank's Doing Business 2011 study, which rates 183 countries on the ease in which they allow firms to operate.
Judging nations on criteria such as how easy it is to start a business or get credit, the UK came in fourth place, while Chad was bottom.
Kazakhstan showed the most improvement over the past year.
Georgia has seen the biggest improvement over the past five years.
The best countries in which to run a firm
Source: World Bank Doing Business 2011 report
1. Singapore (2010 ranking:
2. Hong Kong (2)
3. New Zealand (3)
4. United Kingdom (4)
5. United States (5)
6. Denmark (6)
7. Canada (9)
8. Norway (7)
9. Republic of Ireland (8)
10. Australia (10)
Published since 2004, the annual Doing Business report studies nine main criteria in total.
The other seven factors evaluated are - paying taxes, trading across borders, registering property, dealing with construction permits, closing a business, enforcing contracts and protecting investors.
It does not study wider conditions including a country's infrastructure, workforce skills, or security.
Hong Kong came in second place, with New Zealand third, and the US behind the UK in fifth place. All of the top five remained in the same position as a year earlier.
Out of the 183 countries surveyed, the World Bank said 117 implemented new business-friendly regulation between June 2009 and May 2010 - the 12 months covered for the 2011 report.
The World Bank said governments were reacting to global economic circumstances.
"Against the backdrop of the global financial and economic crisis, policy makers around the world took steps in the past year to make it easier for local firms to start up and operate," said the report.
It added: "While some economies have been hit harder than others, how easy or difficult it is to start and run a business - and how efficient courts and insolvency proceedings are - can influence how firms cope with crises and how quickly they can seize new opportunities."
On a regional basis, the latest Doing Business report found that countries in Eastern Europe and Central Asia did most to make running a business easier in the 12 months covered, with 84% of countries carrying out at least one pro-business reform.
Kazakhstan, which recorded the most improvements worldwide, carried out several measures including amending its company law, streamlining business start-up procedures, and making it simpler to get construction permits.
East Asia and the Pacific was the next best performing region, with three quarters of all countries introducing at least one reform to make life easier for firms.
Latin America and the Caribbean saw the fewest improvements, with only 47% of countries introducing one or more pro-business measures.
Singapore's 'efficiency'
Report co-author Dahlia Khalifa told the BBC that Singapore continued to lead the way for a number of reasons.
"Singapore has now been top of our survey for the past five years," she said.
"It is simply the most efficient place from which to import and export. For example, you only need four documents to export and import goods, which remains global best practice.
"Singapore is also the leader in protecting investors and minority shareholders."
China, now the world's second-largest economy, trailed Singapore in 79th place.
UK praise
Regarding the UK, Ms Khalifa said the report praised the ease in which firms could get credit, and that it had some of the strongest legal rights for entrepreneurs.
The report also highlighted the UK's efficient system of credit information, and the speed in which commercial disputes were handled in the courts.
In Africa, the report said the best performing country was Mauritius, which it said was the world's 20th best place in which to run a company.
This beat a number of nation's in Western Europe including Germany (22nd in the global ranking), Belgium (25th), France (26th), Switzerland (27th), and Netherlands (30th).
South Africa is the next highest placed African nation (34th), followed by Botswana (52nd).
Rwanda, which came in 58th on the overall list, up from 70th last year, was the second most improved country in both the past 12 months and five years.
Chad was the worst performing country for the second year in succession.
'Loud' message
In Latin America, Mexico (35th) is now the best place to run a business, followed by Peru (36th). They overtake Colombia, which fell one place to 39th.
Venezuela, run by left-wing President Hugo Chavez remains the worst place in which to do business in the region, and is in 172nd place on the global list.
In the Middle East, Saudi Arabia is the best performing (11th globally), followed by Bahrain (28th), and Israel (29th).
"We are very pleased to see that more and more countries are making it easy for companies to do business," added Ms Khalifa.
"The message is loud and clear - countries realise they have to be serious about getting small and medium-sized firms up on their feet and creating jobs."
Source: BBC
www.bbc.co.uk
The Asian nation has come top of the World Bank's Doing Business 2011 study, which rates 183 countries on the ease in which they allow firms to operate.
Judging nations on criteria such as how easy it is to start a business or get credit, the UK came in fourth place, while Chad was bottom.
Kazakhstan showed the most improvement over the past year.
Georgia has seen the biggest improvement over the past five years.
The best countries in which to run a firm
Source: World Bank Doing Business 2011 report
1. Singapore (2010 ranking:
2. Hong Kong (2)
3. New Zealand (3)
4. United Kingdom (4)
5. United States (5)
6. Denmark (6)
7. Canada (9)
8. Norway (7)
9. Republic of Ireland (8)
10. Australia (10)
Published since 2004, the annual Doing Business report studies nine main criteria in total.
The other seven factors evaluated are - paying taxes, trading across borders, registering property, dealing with construction permits, closing a business, enforcing contracts and protecting investors.
It does not study wider conditions including a country's infrastructure, workforce skills, or security.
Hong Kong came in second place, with New Zealand third, and the US behind the UK in fifth place. All of the top five remained in the same position as a year earlier.
Out of the 183 countries surveyed, the World Bank said 117 implemented new business-friendly regulation between June 2009 and May 2010 - the 12 months covered for the 2011 report.
The World Bank said governments were reacting to global economic circumstances.
"Against the backdrop of the global financial and economic crisis, policy makers around the world took steps in the past year to make it easier for local firms to start up and operate," said the report.
It added: "While some economies have been hit harder than others, how easy or difficult it is to start and run a business - and how efficient courts and insolvency proceedings are - can influence how firms cope with crises and how quickly they can seize new opportunities."
On a regional basis, the latest Doing Business report found that countries in Eastern Europe and Central Asia did most to make running a business easier in the 12 months covered, with 84% of countries carrying out at least one pro-business reform.
Kazakhstan, which recorded the most improvements worldwide, carried out several measures including amending its company law, streamlining business start-up procedures, and making it simpler to get construction permits.
East Asia and the Pacific was the next best performing region, with three quarters of all countries introducing at least one reform to make life easier for firms.
Latin America and the Caribbean saw the fewest improvements, with only 47% of countries introducing one or more pro-business measures.
Singapore's 'efficiency'
Report co-author Dahlia Khalifa told the BBC that Singapore continued to lead the way for a number of reasons.
"Singapore has now been top of our survey for the past five years," she said.
"It is simply the most efficient place from which to import and export. For example, you only need four documents to export and import goods, which remains global best practice.
"Singapore is also the leader in protecting investors and minority shareholders."
China, now the world's second-largest economy, trailed Singapore in 79th place.
UK praise
Regarding the UK, Ms Khalifa said the report praised the ease in which firms could get credit, and that it had some of the strongest legal rights for entrepreneurs.
The report also highlighted the UK's efficient system of credit information, and the speed in which commercial disputes were handled in the courts.
In Africa, the report said the best performing country was Mauritius, which it said was the world's 20th best place in which to run a company.
This beat a number of nation's in Western Europe including Germany (22nd in the global ranking), Belgium (25th), France (26th), Switzerland (27th), and Netherlands (30th).
South Africa is the next highest placed African nation (34th), followed by Botswana (52nd).
Rwanda, which came in 58th on the overall list, up from 70th last year, was the second most improved country in both the past 12 months and five years.
Chad was the worst performing country for the second year in succession.
'Loud' message
In Latin America, Mexico (35th) is now the best place to run a business, followed by Peru (36th). They overtake Colombia, which fell one place to 39th.
Venezuela, run by left-wing President Hugo Chavez remains the worst place in which to do business in the region, and is in 172nd place on the global list.
In the Middle East, Saudi Arabia is the best performing (11th globally), followed by Bahrain (28th), and Israel (29th).
"We are very pleased to see that more and more countries are making it easy for companies to do business," added Ms Khalifa.
"The message is loud and clear - countries realise they have to be serious about getting small and medium-sized firms up on their feet and creating jobs."
Source: BBC
www.bbc.co.uk
Monday, October 25, 2010
U.S., China discuss economic ties amid tension
Beijing, China (CNN) -- U.S. Treasury Secretary Timothy Geithner met China's Vice-Premier Wang Qishan on Sunday and "exchanged views" about economic relations between their countries, both sides said.
The meeting came shortly after Geithner publicly hammered China over its currency, which Washington says Beijing keeps at artificially low levels to boost exports.
Geithner had urged the world's leading finance ministers to take strong action to ensure emerging markets nations allow their currency to rise in value in line with the free market.
The worry is that if such currency manipulation continues, it could wreak havoc on international trade.
He insisted that "countries that have traditionally run large trade and current account surpluses" -- which China has done -- needed to move "away from export dependence and toward stronger domestic demand led growth."
He said rich countries like the United States needed to play their part too by saving, investing and exporting more.
He was speaking at a meeting of finance ministers of the G-20 group of nations. Their two-day meeting wrapped up Saturday in Gyeongju, South Korea, with the ministers pledging not to engage in currency wars.
Geithner then flew on to China, where he met Wang at the Qingdao Airport.
They also discussed plans for the G-20 leaders meeting in Seoul, South Korea, next month, the Americans said.
In the G-20 finance ministers' closing statement, they said they would "move towards more market determined exchange rate systems that reflect underlying economic fundamentals and refrain from competitive devaluation of currencies."
The ministers added that the G-20 member nations would "continue to resist all forms of protectionist measures and seek to make significant progress to further reduce barriers to trade."
The G-20 stopped short of outright banning currency manipulation though.
The meeting was a precursor to the larger G-20 meeting taking place in Seoul on November 11 and 12. That summit will involve the heads of state from the G-20 nations. President Obama will attend.
Tensions about currency and trade are likely to be high at that meeting as well.
The G-20 acknowledged in Saturday's statement that the global economic recovery is currently advancing, but it was doing so in "a fragile and uneven way."
The ministers added that "growth has been strong in many emerging market economies, but the pace of activity remains modest in many advanced economies."
As further evidence of that, China announced earlier this week that its gross domestic product for the third-quarter rose at an annual rate of 9.6 percent.
While that's slower than in previous quarters, it is still far higher than the growth rates of the United States, Japan and nations in Europe.
China's central bank also announced earlier this week that it was raising a key interest rate for the first time in nearly three years.
That comes at a time when many expect the Federal Reserve to soon announce more details about how it intends to further ease its own monetary policies.
In a nod to the increased economic clout of China and other emerging markets, such as Brazil, India and Russia, the G-20 ministers also announced a deal Saturday that would give emerging markets countries more seats on the board of the International Monetary Fund.
By the CNN Wire Staff
Source: CNN
www.cnn.com
The meeting came shortly after Geithner publicly hammered China over its currency, which Washington says Beijing keeps at artificially low levels to boost exports.
Geithner had urged the world's leading finance ministers to take strong action to ensure emerging markets nations allow their currency to rise in value in line with the free market.
The worry is that if such currency manipulation continues, it could wreak havoc on international trade.
He insisted that "countries that have traditionally run large trade and current account surpluses" -- which China has done -- needed to move "away from export dependence and toward stronger domestic demand led growth."
He said rich countries like the United States needed to play their part too by saving, investing and exporting more.
He was speaking at a meeting of finance ministers of the G-20 group of nations. Their two-day meeting wrapped up Saturday in Gyeongju, South Korea, with the ministers pledging not to engage in currency wars.
Geithner then flew on to China, where he met Wang at the Qingdao Airport.
They also discussed plans for the G-20 leaders meeting in Seoul, South Korea, next month, the Americans said.
In the G-20 finance ministers' closing statement, they said they would "move towards more market determined exchange rate systems that reflect underlying economic fundamentals and refrain from competitive devaluation of currencies."
The ministers added that the G-20 member nations would "continue to resist all forms of protectionist measures and seek to make significant progress to further reduce barriers to trade."
The G-20 stopped short of outright banning currency manipulation though.
The meeting was a precursor to the larger G-20 meeting taking place in Seoul on November 11 and 12. That summit will involve the heads of state from the G-20 nations. President Obama will attend.
Tensions about currency and trade are likely to be high at that meeting as well.
The G-20 acknowledged in Saturday's statement that the global economic recovery is currently advancing, but it was doing so in "a fragile and uneven way."
The ministers added that "growth has been strong in many emerging market economies, but the pace of activity remains modest in many advanced economies."
As further evidence of that, China announced earlier this week that its gross domestic product for the third-quarter rose at an annual rate of 9.6 percent.
While that's slower than in previous quarters, it is still far higher than the growth rates of the United States, Japan and nations in Europe.
China's central bank also announced earlier this week that it was raising a key interest rate for the first time in nearly three years.
That comes at a time when many expect the Federal Reserve to soon announce more details about how it intends to further ease its own monetary policies.
In a nod to the increased economic clout of China and other emerging markets, such as Brazil, India and Russia, the G-20 ministers also announced a deal Saturday that would give emerging markets countries more seats on the board of the International Monetary Fund.
By the CNN Wire Staff
Source: CNN
www.cnn.com
Friday, October 22, 2010
IMF Sees Strong Growth in Asia Continuing, Further Policy Tightening Needed
Press Release No. 10/393
October 21, 2010
Asia remains firmly in the lead of the global economic recovery and strong growth in the region is set to continue, the International Monetary Fund (IMF) said today in its latest Regional Economic Outlook (REO) for Asia and the Pacific which was released in Jakarta, Indonesia.
The expansion in Asia exceeded expectations in the first half of the year, the IMF said, prompting the Fund to revise up its 2010 growth forecast for the region to 8 percent, nearly 1 percentage point higher than its April forecast. Economies across the region are expanding strongly. China and India are leading the way with projected 2010 growth rates of 10.5 percent and 9.7 percent, respectively, while Indonesia is expected to grow by 6 percent. In Japan, growth is now projected at 2.8 percent. In 2011, regional growth is expected to moderate to a more sustainable pace of 6.8 percent.
Strong economic growth is leading to new policy challenges, according to the REO analysis. Inflationary pressures are continuing to build, while prices in some property markets are growing at double-digit rates. With Asia set to remain an attractive destination for foreign investment given the sluggish recovery in the U.S. and Europe, capital inflows could add further to domestic price pressures in the period ahead.
The time has therefore come for countries in the region to normalize monetary and fiscal policy stances, according to Mr. Anoop Singh, Director of the IMF’s Asia and Pacific Department. “We welcome the steps so far taken by policymakers to control inflation risks and limit the build-up of financial sector vulnerabilities, but more now needs to be done given the continued strong growth in the region,” Mr. Singh said.
The REO points to the need for further tightening of monetary policy in many countries in Asia, including through greater exchange rate appreciation. A faster withdrawal of the fiscal stimulus put in place during the global financial crisis would also help guard against the risks of overheating. The REO notes, however, that should a worsening of global economic conditions negatively affect Asia, there is room to return to a more stimulative policy stance.
Managing capital inflows into the region is a difficult challenge. These inflows present many opportunities, but they also pose potential risks to financial stability. Macro-prudential measures have appropriately been taken in many regional economies to minimize risks, but more action may be needed. These important issues were recently discussed at a high-level conference on “Macro-Prudential Policies: An Asian Perspective” hosted by the People’s Bank of China and the IMF in Shanghai.
Rebalancing Asia’s growth remains the top policy priority over the medium term. With external demand from advanced economies unlikely to return to pre-crisis levels in the foreseeable future, Asia will need stronger domestic demand in order to continue along a robust growth path. A broad range of reforms are needed to support domestic consumption and investment, including strengthening social safety nets, ensuring access to credit, easing restrictions in service sectors, and improving infrastructure. Exchange rate appreciation is an important part of rebalancing. “It is only natural that as Asian economies grow stronger so too will their currencies,” said the IMF’s Singh. “This is very much a sign of Asia’s success.”
Source: International Monetary Fund
www.imf.org
October 21, 2010
Asia remains firmly in the lead of the global economic recovery and strong growth in the region is set to continue, the International Monetary Fund (IMF) said today in its latest Regional Economic Outlook (REO) for Asia and the Pacific which was released in Jakarta, Indonesia.
The expansion in Asia exceeded expectations in the first half of the year, the IMF said, prompting the Fund to revise up its 2010 growth forecast for the region to 8 percent, nearly 1 percentage point higher than its April forecast. Economies across the region are expanding strongly. China and India are leading the way with projected 2010 growth rates of 10.5 percent and 9.7 percent, respectively, while Indonesia is expected to grow by 6 percent. In Japan, growth is now projected at 2.8 percent. In 2011, regional growth is expected to moderate to a more sustainable pace of 6.8 percent.
Strong economic growth is leading to new policy challenges, according to the REO analysis. Inflationary pressures are continuing to build, while prices in some property markets are growing at double-digit rates. With Asia set to remain an attractive destination for foreign investment given the sluggish recovery in the U.S. and Europe, capital inflows could add further to domestic price pressures in the period ahead.
The time has therefore come for countries in the region to normalize monetary and fiscal policy stances, according to Mr. Anoop Singh, Director of the IMF’s Asia and Pacific Department. “We welcome the steps so far taken by policymakers to control inflation risks and limit the build-up of financial sector vulnerabilities, but more now needs to be done given the continued strong growth in the region,” Mr. Singh said.
The REO points to the need for further tightening of monetary policy in many countries in Asia, including through greater exchange rate appreciation. A faster withdrawal of the fiscal stimulus put in place during the global financial crisis would also help guard against the risks of overheating. The REO notes, however, that should a worsening of global economic conditions negatively affect Asia, there is room to return to a more stimulative policy stance.
Managing capital inflows into the region is a difficult challenge. These inflows present many opportunities, but they also pose potential risks to financial stability. Macro-prudential measures have appropriately been taken in many regional economies to minimize risks, but more action may be needed. These important issues were recently discussed at a high-level conference on “Macro-Prudential Policies: An Asian Perspective” hosted by the People’s Bank of China and the IMF in Shanghai.
Rebalancing Asia’s growth remains the top policy priority over the medium term. With external demand from advanced economies unlikely to return to pre-crisis levels in the foreseeable future, Asia will need stronger domestic demand in order to continue along a robust growth path. A broad range of reforms are needed to support domestic consumption and investment, including strengthening social safety nets, ensuring access to credit, easing restrictions in service sectors, and improving infrastructure. Exchange rate appreciation is an important part of rebalancing. “It is only natural that as Asian economies grow stronger so too will their currencies,” said the IMF’s Singh. “This is very much a sign of Asia’s success.”
Source: International Monetary Fund
www.imf.org
Japan business: No rare earths coming from China
(CNN) – China can publicly deny that it has halted exports of rare earth. But Shigeo Nakamura knows what he is seeing: no rare earth has come into his company from his Chinese suppliers.
“Nothing, nothing at this moment. Nothing,” said Nakamura, president of Advanced Material Japan Corporation, a Tokyo-based rare earth and metal trading house.
Nakamura said his company has a year’s supply stockpiled, but he is worried.
“This,” he said, pointing to a tiny, two millimeter cylinder, “is a micro-motor from a mobile phone. If China stops supply of the raw material, you will not use the mobile phone. You will not see the TV. And you will not see any refrigerator.”
Rare earths are minerals used in small amounts on virtually every electronic item for sale around the world.
China has 30 percent of the world’s reserve of rare earths, but mines it cheaply and effectively. More than 90 percent of the world’s available supply is currently mined in China.
That control became clear last month to Japanese rare earth importers, exporters and the government.
In the wake of a collision at sea between a Chinese fishing vessel and the Japan coast guard in September, multiple Japanese rare earth importers tell CNN that China dramatically slowed exports of rare earth.
China denies it stopped exports in retaliation.
But Beijing has been curbing international exports for the last few years amid concerns about supply and growing demand.
Whatever the reason behind the slowdown in rare earth exports, Mizuho Research Institute senior economist Jun Inoue says it highlights what Japanese economists call “China risk.”
That risk involves the world relying too heavily on China, a country whose communist government can rapidly affect the global economy.
“The world is heavily relying on China not only in finance and trade, but also natural resources,” said Inoue. “In the market economy, each economic entity makes decisions by individual will. But under the controlled market economy (like China), the government has plans and targets. There is a risk that such national plans and targets influence the world economy.”
China on Wednesday denied that it has halted export of rare earth materials amid news reports that Beijing started blocking shipments of the crucial minerals to the United States and Europe following similar measures against Japan.
"China will continue to provide rare earth to the rest of the world," the ministry of commerce said in a statement faxed to CNN. "At the same time, to protect exhaustible resources and achieve sustainable development, China will also continue to implement restrictive measures on the mining, production and export of rare earth."
Nakamura said his company has a year of rare earth stockpile. He remains optimistic that Beijing will loosen exports, saying China stands to lose too much money if developed economies like Japan and the U.S. mine for rare earth elsewhere.
“Maybe two weeks” before Chinese exports resume, said Nakamura. “Two weeks, I hope.”
Posted by: CNN Correspondent, Kyung Lah
Source: cnn.com
“Nothing, nothing at this moment. Nothing,” said Nakamura, president of Advanced Material Japan Corporation, a Tokyo-based rare earth and metal trading house.
Nakamura said his company has a year’s supply stockpiled, but he is worried.
“This,” he said, pointing to a tiny, two millimeter cylinder, “is a micro-motor from a mobile phone. If China stops supply of the raw material, you will not use the mobile phone. You will not see the TV. And you will not see any refrigerator.”
Rare earths are minerals used in small amounts on virtually every electronic item for sale around the world.
China has 30 percent of the world’s reserve of rare earths, but mines it cheaply and effectively. More than 90 percent of the world’s available supply is currently mined in China.
That control became clear last month to Japanese rare earth importers, exporters and the government.
In the wake of a collision at sea between a Chinese fishing vessel and the Japan coast guard in September, multiple Japanese rare earth importers tell CNN that China dramatically slowed exports of rare earth.
China denies it stopped exports in retaliation.
But Beijing has been curbing international exports for the last few years amid concerns about supply and growing demand.
Whatever the reason behind the slowdown in rare earth exports, Mizuho Research Institute senior economist Jun Inoue says it highlights what Japanese economists call “China risk.”
That risk involves the world relying too heavily on China, a country whose communist government can rapidly affect the global economy.
“The world is heavily relying on China not only in finance and trade, but also natural resources,” said Inoue. “In the market economy, each economic entity makes decisions by individual will. But under the controlled market economy (like China), the government has plans and targets. There is a risk that such national plans and targets influence the world economy.”
China on Wednesday denied that it has halted export of rare earth materials amid news reports that Beijing started blocking shipments of the crucial minerals to the United States and Europe following similar measures against Japan.
"China will continue to provide rare earth to the rest of the world," the ministry of commerce said in a statement faxed to CNN. "At the same time, to protect exhaustible resources and achieve sustainable development, China will also continue to implement restrictive measures on the mining, production and export of rare earth."
Nakamura said his company has a year of rare earth stockpile. He remains optimistic that Beijing will loosen exports, saying China stands to lose too much money if developed economies like Japan and the U.S. mine for rare earth elsewhere.
“Maybe two weeks” before Chinese exports resume, said Nakamura. “Two weeks, I hope.”
Posted by: CNN Correspondent, Kyung Lah
Source: cnn.com
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