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Showing posts with label Economy and Business. Show all posts
Showing posts with label Economy and Business. Show all posts

Monday 24 June 2019

US technology sector faces triple threat

Uncertainty over the future of US-China economic relations has derailed the once high-flying global equity market, which rose almost 15 per cent in the January-April period.

Clive McDonnell, head of Equity Strategy at Standard Chartered Bank, looks at the causes behind the decline.

The technology sector, now facing challenges on a number of fronts, is supposedly the main cause behind the decline.

While President Trump’s policies get blamed for a lot of events impacting global equity markets, he is probably less responsible for the upset in the technology sector than many would have you think.

There are three primary challenges facing the US technology sector:

      1. The sector’s high overseas revenue share: over 60% of total revenue comes from abroad.

      2. The threat of regulation on accessing and using personal data.

      3. Monopoly powers and the risk of an antitrust investigation.

Let’s consider each factor. US economic growth appears resilient in the face of weaker growth prospects in the euro zone and emerging markets.

However, since US technology companies generate more than 60% of their revenue from overseas, they are acutely sensitive to slower growth prospects outside the US. In the past, they have been able to offset slower growth in the euro zone with robust growth in emerging markets led by China.

The next downturn may witness slower growth in both regions, which would leave US technology companies exposed relative to US banks and utilities which have the lowest overseas revenue exposure amongst US companies.

Additionally, there is a risk that China responds in kind to the US President’s targeting of Chinese technology companies. There is also a risk that US dollar strength creates a negative effect on US technology sector earnings once overseas revenue is converted into US dollars.

The threat of regulation on accessing and use of personal data looms large for technology companies, particularly those in the social media space. Europe has been at the forefront of regulating use of personal data via the General Data Protection Regulation (GDPR).

These regulations changed the balance of power between individuals and companies over the use of personal data. The rules give EU citizens more control over their personal data held by companies and the right to have their data removed from databases, the so-called “right to be forgotten” law.

The challenge for US companies is these rules cover their processing of personal data in Europe, regardless of the residential location of the individual generating the data.  

The rules give EU citizens more control over their personal data held by companies and the right to have their data removed from databases.

Similar to the long arm of US financial regulators – which impact banks regardless of where they are incorporated once they engage in US dollar transactions – European rules on personal data are impacting US technology companies in ways that are not covered by domestic laws.

The central business challenge for US technology companies, in particular those in the social media sector, is their business models are built on free access to consumer data in exchange for free use of their software, including search, email and productivity tools, such as those available on Google Drive.

If these companies lose unfettered access to personal data, they would likely start charging consumers for use of the same software.

This, in turn, will have a significant impact on their advertising revenues, as the precision they have been able to offer companies targeting customers would decline. No doubt their business models would evolve, but this could be at the cost of lower net margins relative to the near-20% margins they currently enjoy.

Finally, the perceived monopoly power of some of the sector’s leaders and the resultant risk US technology companies face from antitrust investigations is probably the biggest risk to the sector.

The definition of monopoly power in the US, focusing on the short-term price impact on consumers from company actions, has been unchanged for over 40 years.

Specifically, if company actions lead to higher prices, it could be designated as a monopoly (and importantly, the reverse also applies). This is relevant for technology companies as many have helped to lower prices for consumers.

The definition of monopoly power is changing. This is led by Lina Khan, a Legal Fellow at the Federal Trade Commission and an academic Fellow at Columbia Law School.

In a paper, entitled “Amazon’s Antitrust Paradox (1)”, she challenged the current interpretation of antitrust law which is designed to curb monopolistic power. She proposed that lower prices were not necessarily good for consumers if prices were used as a tool to choke off competition and eventually restrict consumer choice.

The primary tool available to technology companies to manipulate consumer choices (and some would say restrict competition) is their search algorithm.

Whenever a social media or e-commerce company implements a change to their search algorithm, the ensuing uproar amongst its users and customers is a measure of the importance this tool has to drive sales and choices for consumers.

The search algorithm assumes unique power once a platform becomes dominant in an industry and consumers no longer look at other platforms as they believe that their chosen one offers them all the choice they need.

The risk is: their choices are being determined by companies who pay more to appear higher up the search results than those which pay less, even though the latter companies may offer lower prices.

If regulators’ definition of monopoly power evolves, as Lina Khan suggests, there is a risk of antitrust investigations against US technology sector leaders, with penalties ranging from fines to reversal of prior acquisitions.

The challenges facing the US technology sector have converged at a time when valuations are elevated and earnings growth has weakened.

They are shining a light on their business model, which can undoubtedly evolve, but may require changes that the market is not currently anticipating.

Clive McDonnell is Head of Equity Strategy at Standard Chartered Private Bank.

The views expresssed here are entirely the writer’s own.

Read more:

US block spurs tech independence drive by Chinese companies

The latest US blacklisting of the Chinese supercomputing companies will not reduce domestic technology companies' resolve to pursue innovation and research and development (R&D) as they strive to make up for shortcomings in certain segments to pursue further growth despite “irrational assaults” by Washington, industry insiders said.


Innovation is a driving force within China's economy today. Yet behind that innovation, what's the role of research and development?


https://youtu.be/xo_OLlL7XqI
https://youtu.be/xo_OLlL7XqI?t=199

Wednesday 19 June 2019

Minds without borders: A coffee with Huawei Ren: We will be reborn by 2021

https://youtu.be/7_kKAiHjJyY

They say a good conversation could be just like drinking a cup of black coffee and as stimulating as it is hard. Today's conversation is certainly stimulating intellectually and thought-provoking. The panelists on stage are trailblazers in their respective fields and certainly very outspoken about the challenges that we are facing today. First up, Ren Zhengfei, the founder and CEO of Huawei. Next, Catherine Chen, the senior vice president and director of the board of Huawei. Also on stage are George Gilder, a tech guru and futurist and Prof. Nicholas Negroponte, a tech visionary who's the co-founder of the MIT Media Lab.

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Category:  News & Politics

Read more:

 Amid debilitating trade war, silent majority key to stabilizing China-US ties

With trade disputes and Huawei row in the forefront of ties, China-US relations have seen unprecedented tensions.


China's semiconductor industry will come out stronger from US crackdown

Painful lessons have taught us time and again that strength is the only thing that matters.

The US trade war against human rights

If the trade war goes on, it will exert an overwhelming impact on the world industrial chain. The US cannot remain unaffected. Its supply and marketing network, which plays a significant role in American people's living standards, will be hit hard. 

Tariffs to wipe out US profits

Proposed US tariffs on Chinese imports will hurt US companies and consumers more than they might imagine and will damage an industrial chain that connects the world's two largest economies, industrial representatives from both China and the US said on Tuesday

Huawei founder:We will be reborn by 2021 - Business News



US companies fight against Trump's tariffs - Business News



 
Related post:

Why does the West fail to understand China? The West misreads, China is rising, said Cambridge Prof 

 

A phoenix has risen from the ashes - THE RISE OF CHINA


The oppression of a civilization:

The world was turned into an ocean of colonies of subject people during the few centuries of ‘friendly’ European conquest. The Africans were turned into slaves, the natives of both Americas massacred. The ancient civilization of China was crippled and dismantled into pieces. After the Western powers brought down the decadent Qing Dynasty with the might of modern firearms, the Chinese civilization was turned into a pariah race of nothingness by the invaders in their country. The foreigners did not bring anything good but oppression, bullying and raiding China ’s wealth and dignity by all kinds of barbarian and deceptive means, and by the barrel of the gun. The Japanese joined in and even thought of conquering and ruling the whole of China as their colony.

There was a moment of salvation when Japan attacked Pearl Harbour and declared war on the Western power. China and its peasant soldiers were needed to open another front to sap the fighting power and resources of the Japanese. A large part of the Japanese Imperial Army was held down in China by the peasant soldiers. History would not be the same if the Japanese could run through China without resistance and conquer the whole of Asia .

After the war there was a brief moment of equality for China as a key member of the Allied Forces that fought against the Japanese. Chiang Kai Shek was seated with the Allied leaders like Churchill, Stalin and Roosevelt in Potsdam and Cairo to divide the world among the victorious Allied Powers. China was lucky to have its lost territories back. But Chiang was more like a flower vase and inconsequen-tail, would not be deserving of any war loot. His presence among the leaders of the big powers was a consolation that gave China a little recognition as a big nation.

This little moment of dignity did not last long when Mao Zedong defeated Chiang and China adopted communism as a state ideology. This turn of event led to a renewed and concerted Western effort to brand and condemn the Chinese civilization as peasants, rogues, dumb, uncivilized, aggressive and the pariahs of the human race, a good for nothing race that was lack of talent, unproduc-tive and unimaginative, and unfit to join the advanced nations of the West.

This was the hopeless China painted by the West. They kept repeating the misinfor-mation daily in all western media, like they are doing to North Korea today, that the whole world simply believed so. Chinese are useless, Chinese are lame, Chinese are bad.

Cold Wars, containment policies, encirclement, depriving China of its rightful seat in the UN, blocking China from joining international organizations like the WTO and the Groupings of rich nations, were history now. In the last 40 odd years, China came storming back on its own despite all the sanctions and barriers and threats against its rise as a nation and the Chinese people as a civilization, old, ancient, but not useless and remote of talents.

Throughout the two hundred years of Western oppression and suppression, the Chinese civilization was not allowed to surface, no opportunity to break out and be the equals of other nations. The Chinese civilization was down and out, the Chinese in despair. Many Chinese had doubts in themselves, and were ashamed to be Chinese. The Westerners reinforced this belief by sneering at them, contributing negative literature furiously to debase the Chinese, discriminated against them in practically every human endeavour and industry. In the USA there were racist laws forbidding the Chinese from higher skill jobs. The image and perception of useless and untalented Chinese became a self fulfilling prophecy. The Chinese civilization was a joke, a condemned race that was lacking in industry and innovation.

On its own, slowly and steadily the Chinese rebuilt their nation and their civilization, with little foreign talents and assistance, China has overtaken Japan and is closing in on the US as the number Two world power, economically and militarily. They have proven that they could match the West in every field of industry. The oppression and suppression of a civilization have failed, and a revitalized China has assumed its rightful place as a proud nation among nations. The Chinese civilization is no longer to be spitted at, to be kicked around by the Western powers or by teeny weeny little Asian states. It is now a force to be reckoned with and to be respected on its own merits.

The tag of being the Sick Man of Asia, a semi colony of the West, a broken country with nothing, no inventions, no modern industries, no talents except poverty and all the trappings of a poor and backward third world country vanished over a few decades. There is renewed pride as a people, a nation and a civilization in the new China. A phoenix has risen from the ashes. There is no turning back. The Chinese have found their way back and will leap frog over the West in science and technology and in all things, while the West are still trying to restrain their advances by hook and by crook.

Today, the overseas Chinese are also starting to rediscover themselves, their pride and dignity as a respectable people. They too find some renewed confidence that they are not rubbish and useless as the West wanted to hole them in, to be bullied by even little third world people, to be told to go home in western countries. They too share the pride of an ancient civilization seeking a second chance in renaissance, to achieve in whatever they seek to do, to be a respectable people and civilization on par with the best in the world. They no longer lower their heads in shame as they go about their lives. They are standing tall, heads and shoulders to the Western civilization with the knowledge that they are just as good if not better. The Chinese civilization is reviving and will no longer be oppressed and suppressed again.

After reading this, you can now benefit from a short history lesson of mankind and their actions on earth and the generations to come....DONT BE DECEIVED ANYMORE BY THE WEST…

Thursday 23 May 2019

Huawei ban: Risk or opportunity for M'sian tech companies? US-China trade war a boon


KUALA LUMPUR: It looked like the start of semiconductor manufacturers’ nightmare when US President Donald Trump fired another salvo in the escalating US-China trade war by blacklisting China’s mobile phone equipment giant, Huawei Technologies Co Ltd.

The act sent shock waves along the supply chain of the global semiconductor industry, sparking strong sell-offs in semiconductor companies’ shares worldwide. The same was seen in Malaysia, which caused the Bursa Malaysia Technology Index to sink 3.47% on Tuesday — the biggest loser among the indices — led by companies linked to the industry.

But it may not be a losing battle in the long run, at least not for Malaysian companies. The trade diversion that will arise from Huawei’s ban in the US, which effectively cuts off US chipmakers from the supply chain of Huawei — the world’s largest provider of networking gear and the second-largest smartphone vendor — may benefit domestic players here.

Pentamaster Group Bhd co-founder and chairman Chuah Choon Bin told The Edge Financial Daily that he expects the group’s telecommunications segment to see a 20% to 30% decline in sales as a result of Huawei’s blacklisting in the US. The contraction may take away some 18% in total sales it anticipates for the year.

However, Chuah said Pentamaster may also stand to benefit from the ban, as he expects China will become more aggressive in ramping up their product developments in the face of what happened to Huawei.

So, he sees a silver lining for the group in the form of trade diverted from US chip suppliers to those located elsewhere, possibly in Malaysia, where Pentamaster supplies chip tester equipment or automated tester equipment.

As such, Chuah does not expect Pentamaster to be greatly affected by Huawei’s ban in the US. In fact, the eventual tally may show Pentamaster gaining from the situation.

Pentamaster was among the technology counters on Bursa Malaysia that took a beating on Tuesday, following the news on Huawei’s ban.

Its shares sank as much as 29 sen on Tuesday to RM4.05, before easing to settle at RM4.10, down 24 sen or 5.53% at market close. It was one of the top losers in Bursa Malaysia’s Technology Index, which retreated to 30.9 points, dragging the FBM KLCI down 0.1% to close at 1,603.74.

Other semiconductor stocks that were badly hit include: Inari Amertron, which fell 10 sen or 6.67% to RM1.40; Mi Technovation Bhd, which was down 11 sen or 6.43% to RM1.60; Globetronics Technology Bhd, which retreated 10 sen or 5.92% to RM1.59; and Frontken Corp Bhd, which fell eight sen or 5.63% to RM1.34.

Nonetheless, the rebound on Wall Street among semiconductor stocks that were bogged down by fears over the trade war’s ripple effects, raised hope that its peers in Malaysia may follow suit, if the upward trend seen on Tuesday is sustainable.

The share price recovery was fuelled by the temporary 90-day reprieve that was granted to Huawei on Monday. The initial ban was to take effect on May 20. The Philadelphia Semiconductor Index gained 2.1% to end a three-day slump on Tuesday.

“The disruption to (the) supply chain will definitely be negative in the short term,” said an analyst who tracks the semiconductor industry, citing as example people who are considering switching mobile phones after the news that Alphabet Inc’s Google would be cutting off the supply of hardware and selected software services to Huawei once the 90 days is up.

“The trade war seems like breaking the supply chain into two ... this is going to be bad in the short term. But if China cannot get their supply from the US, they are likely to turn inwards ... [or to] countries like Malaysia,” the analyst added.

A Singapore-based fund manager commented that Malaysian tech companies presently do not have much to do with Huawei. But the ban is causing everyone in China to sit up and rethink their supply chain strategy. “In short, no one will believe in the US [anymore]. It is not a reliable and credible supplier. What it means is that it is positive for some of those tech companies in Malaysia that can offer what the Chinese need,” he said.

Some analysts, however, have a more cautious stance, saying it is too early to draw any conclusions on the matter given that it is hard to predict any retaliatory moves the two countries could make. The lingering concern remains that any slowdown in international trade volume will not augur well for the world economy, including Malaysia. Meanwhile, some have pointed out that the valuation of Malaysian semiconductor stocks are relatively higher compared with elsewhere.


Read more:


  US-China trade war a boon 



Pentamaster still confident of another record earnings year


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https://youtu.be/hRv0QMEwdas https://youtu.be/dtT0rHgJ9-I 《今日关注》是CCTV中文国际频道播出的时事述评栏目。该栏目紧密跟踪国内外重大新闻事件,邀请国内外一流的专家和高级官员梳理新闻来龙去脉,评论新闻事..

China won't accept unequal trade deal

Monday 20 May 2019

Huawei does not need US chips: CEO on Trump export ban

Huawei Technologies CEO Ren Zhengfei says Huawei would be "fine" even if Qualcomm and other American suppliers would not sell chips to Huawei, because "we have already been preparing for this."

 
https://youtu.be/xcZS8QYky34
Chinese telecom giant will resist Washington pressure, Ren Zhengfei says

SHENZHEN, China -- Huawei Technologies' founder and chief executive blasted the Trump administration's decision to add his company to a government blacklist, insisting the Chinese telecom equipment maker has done nothing illegal.

"We have not done anything which violates the law," CEO Ren Zhengfei told Japanese media at company headquarters in Shenzhen on Saturday in his first interview since the  U.S. decision to restrict trade with Huawei.

Ren indicated that his company will continue developing its own chips to lessen the impact of the ban on its production. Ren said it would be "fine" even if Qualcomm and other American suppliers would not sell chips to Huawei. "We have already been preparing for this," he said.

Huawei unit HiSilicon Technologies, which mainly designs core processor chips, has made similar allusions to plans for dealing with a potential disruption in supply. In a recent open letter, President Teresa He Tingbo wrote, "We actually have foreseen this day for many years, and we do have a backup plan."

Echoing his tougher tone in recent months, Ren said his company will not be dictated to by Washington. "We will not change our management at the request of the U.S. or accept monitoring, as ZTE has done," he said.

The U.S. deployed a similar ban against ZTE last year, pushing the Chinese telecom company to the brink of bankruptcy.

Ren said the impact of the U.S. ban on Huawei's business will be limited, and expressed confidence in its longer-term outlook. "It is expected that Huawei's growth may slow, but only slightly," said Ren, citing the potential of annual revenue growth undershooting 20%.

"Policies that threaten trading partners one after another rob companies of risk-taking attitudes, and the U.S. will lose credibility," said Ren. On the other hand, he sees U.S. President Donald Trump's trade policies providing the impetus for Chinese economic reforms. "I would even suggest that the environment will improve," said Ren.

Huawei's chief shot down the prospect of producing 5G equipment on American soil. "Even if the U.S. asks us to manufacture over there, we will not go," said Ren.

Huawei procures around $67 billion worth of components every year, with roughly $11 billion coming from U.S. suppliers. Huawei depends especially on American parts makers for semiconductors, and it is believed that the company could face problems going forward manufacturing smartphones and telecommunications equipment. - Nikkel Asian Review

Source link 


Read more : 

HiSilicon has released a series of chips geared for artificial intelligence under the name Kirin, which are currently used in some of Huawei's smartphones. The company has boasted that some Kirin chips can compete with the likes of Qualcomm Inc. and Nvidia Corp.

Huawei Unit Says It Can Help Ensure Chip Supply Without U.S. Tech, Amid Doubts - Caixin Global

 

 

Related posts:

 

 Huawei unveils server chipset as China cuts reliance on imports



Read  Source link: US, China: Frenemies? - World | The Star Online  Professor who predicted clash between great powers talks abo..

 

https://www.cnbc.com/video/2019/05/15/trump-signs-executive-order-targeting-huawei.html Key Points   President Donald Trump on Wedne.

 

 

Sunday 19 May 2019

US and China: Are the superpowers heading for a collision, or can they be frenemies?

US President Donald Trump and China’s President Xi Jinping at a working dinner in Buenos Aires in December. Mr Trump recently accused Beijing of backtracking on commitments for a proposed trade deal, which Beijing denies.

Read  Source link:

US, China: Frenemies? - World | The Star Online 

Professor who predicted clash between great powers talks about the next challenges ahead, including forestalling conflicts and finding a way forward, perhaps through ‘rivalry partnership’.





Prof Allison: The souring of bilateral ties caused by the ongoing trade dispute between the US and China risks creating the politics, perceptions and psychology that make a clash between the two countries harder to avoid. — China Daily/ANN
Prof Allison: The souring of bilateral ties caused by the ongoing trade dispute between the US and China risks creating the politics, perceptions and psychology that make a clash between the two countries harder to avoid. — China Daily/ANN


Read more: 

Time to discard any illusions about the US

A letter written by He Tingbo, president of HiSilicon, a semiconductor company owned by Huawei, was made public on Friday. The letter is a touching one and has won public support. In the letter, He said that employees of the company embarked on the most stirring journey in technology history in recent years to make backup products for Huawei and now these products will finally be put to use.

US relies on deception and is most afraid of protracted trade war

The economic data of China and the US for the month of April was not good. There are divergent views on the reasons for China's declining retail sales growth rate and especially, its industrial output growth. But amid China's overall expectations that a trade war could have some impact on the economy this year, one month's unsatisfactory data is socially and psychologically affordable.



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Tuesday 14 May 2019

China hits back at US tariffs

https://youtu.be/J1PJikKXp84

https://youtu.be/UMBt-_73mts

https://youtu.be/579PbrByy_U

https://youtu.be/2lg3LQUhCRs br />
Photo:VCG

Duties show Beijing unfazed by Washington’s pressure

China on Monday struck back at US tariffs on Chinese goods, announcing duties of between 5 percent to 25 percent on more than 5,100 products from the US worth tens of billions of dollars.

The measured but firm response from Chinese officials highlighted China's defiance toward maximum pressure from US officials amid a fresh escalation in the trade war, while also seeking to avoid a full-fledged trade war with the US, analysts said.

China will impose an additional tariff of 25 percent on 2,493 items such as liquefied natural gas and 20 percent on 1,078 items, including fruits and chemicals, starting June 1, the Customs Tariff Commission under the State Council, China's cabinet, said in a statement Monday night.

China will also impose an additional tariff of 10 percent on 974 items, such as vegetables and seafood, and 5 percent on 595 items, including smaller planes, according to the statement. In total, the tariffs cover 5,140 US products worth $60 billion.

The statement said that China's measures were in response to the US' decision to raise tariffs on $200 billion in Chinese goods.

"The aforementioned US action has led to an escalation in China-US trade frictions and is against a consensus reached by the two sides to address trade differences through consultations," it said, adding it hurts both sides' interests.

Following China's tariffs, US stocks tumbled on Monday, with the Dow Jones Industrial Average losing 2.17 percent shortly after market opening. Shares of major US companies which rely on Chinese markets also nosedived, with machinery maker Caterpillar stocks down 4.54 percent and aircraftmaker Boeing shares down 3.38 percent.

Firm response

"I think the response is firm but measured," said Huo Jianguo, vice chairman of the China Society for World Trade Organization Studies in Beijing, pointing out that the measures were specifically aimed at responding to the US action.

The US on Friday raised duties on $200 billion in Chinese goods to 25 percent from the 10 percent imposed since September 2018, to which China responded with tariffs on $60 billion in US goods.

"While the Chinese tariffs cover less US products than the US tariffs do on Chinese goods, it is sufficient to show that China is not going to back down from pressure," Huo said.

China's response comes about an hour after US President Donald Trump warned China against retaliating on Monday. "China should not retaliate - will only get worse!" Trump tweeted, while repeating false accusations against China.

The Chinese tariffs also followed fresh threats from US officials to impose tariffs on $325 billion in Chinese goods with details expected to be announced on Monday US time.

"Since the US has resumed the trade war, we should hit back hard… to show the Americans that they will not gain anything from their tough approach," He Weiwen, a former senior Chinese trade official, told the Global Times. "But we should also not close the door to talks."

Door open

Though China was forced to impose the tariffs, it also did so in a way that avoided a further escalation and left room for negotiations, said Song Guoyou, director of Fudan University's Center for Economic Diplomacy.

"The country still left some room in the hope that bilateral trade tensions would not further escalate, and that there would be possible future talks with the US," Song said.

Chinese and US officials concluded the 11th round of negotiations in Washington on Friday without reaching any deal. There were no plans for future talks as of press time on Monday.

But in light of the drastic turn of events in the trade talks, China has prepared for all scenarios, officials and analysts said.

"The Chinese side will never succumb to external pressure and we have the resolve and ability to safeguard our legitimate rights and interests," Geng Shuang, a spokesperson for the Chinese Foreign Ministry, told a routine press briefing on Monday.

"Again, we hope the US side could work with China and meet China halfway to address each other's reasonable concerns based on mutual respect and equal terms," he said.

But if the US wants to further escalate the trade war, China will respond in kind and there are many other tools it could take to inflict pain on the US economy, including targeting US financial markets, analyst noted.

Stay focused

However, while fighting back is necessary, it is also equally important for China not to lose focus in carrying out stated reform and opening-up efforts aimed at ensuring long-term growth for the Chinese economy, analysts said.

"We need to commit to our policies because we must keep things at home in good shape. That goes without saying," Huo said, noting that China should continue its reform and opening-up efforts.

Continuing reform and opening-up measures will not only help cope with pressure from the US, but could also ensure long-term growth for the Chinese economy, analysts said.

In the short term, though, China needs to properly evaluate the potential damage of the trade war on Chinese companies and workers and take necessary measures to help them weather the impact.

Yu Yongding, a senior research fellow at the Chinese Academy of Social Sciences, said that given China's deep role in the global value chain, it is hard to evaluate the impact on the Chinese economy, but China needs to prepare for the worst.

"In any case, the Chinese economy will be able to withstand the impact, and China's monetary and fiscal policies still have room," he said at a seminar in Beijing on Saturday.

Source link   


Read more:

World markets plunged further on Tuesday following heavy losses on Wall Street after China delivered a swift rebuff to Donald Trump by imposing retaliatory tariffs on $60bn of US imports. Beijing ignored warnings from Trump about the dangers of escalating the trade conflict and ..


Tall tales won't help US win trade war

The Chinese side is obviously more realistic while the US is falsifying. This will, to a large extent, influence how the two countries digest the trade war impacts.
Source: Global Times

US' maximum pressure policy is useless

China's stance is clear-cut. It is willing to reach a deal but will never make concessions on issues of principle, nor trade its core interests. In contrast, the US' attitude is swaying. Driven by unrealistic anticipation, it has drifted between expressing optimism that exceeds the actual situation and arbitrarily waving the tariff stick. China has clarified its stance and will try to push the situation in a good direction. If the US is to play a roller coaster-style thriller game, it will bear the consequences.
Source: Global Times

US companies set to pay price of trade row with China

US-based software company Oracle attracted a lot of attention in recent days after firing hundreds of employees, mainly engineers, from its China team.
Source: Global Times

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.

Monday 13 May 2019

We are never too old to work, old is gold


NASIR Ahmad’s father, Ahmad Ismail or better known by his pseudonym Ahmady Asmara, was a legendary journalist and a sasterawan (man of letters). He used to work for publications like Saudara, Warta Ahad, Majlis and Utusan Zaman back in the 50s and 60s. Among his protege was the late Tan Sri Zainuddin Maidin (Zam).

Like his father, Nasir joined the press. In 1973, he started as a repor­­ter with the Utusan Melayu group. Eighteen years later, he joined Berita Harian.

Upon reaching 55, Nasir worked on a contract basis from 2011 to 2017. He has no major financial commitments and all except one of his four children are married.

In December 2017, he was diagnosed with colon cancer. It was devastating news to him and his family. He survived but his life was never the same again.

His close shave with death taught him many valuable lessons. For one, he can’t remain idle. He gets restless not doing anything.

He joined Grab service last August. It was more like an experiment for him initially. He was hooked. He has been driving ever since. In fact, he is one of Grab’s prized drivers, attaining 5-star ratings many times over. He starts around 10 in the morning and finishes around 9 at night, stopping only for prayers and lunch or quick bites.

Nasir is not alone. On May 2, this newspaper highlighted a growing number of Malaysians working well after 60.

For those who have their pension, they can afford to sit back and enjoy what’s left of their life. But things are not easy for others. They have mouths to feed. In most cases, adult children have their own commitments and parents seldom want to bother them over financial matters.

However, it is not easy to join the job market at that age even with experience and the necessary expertise. Nasir was a journalist; driving for Grab was a totally new experience.

As highlighted by this newspaper, based on a report published by the Institute of Labour Market Information and Analysis (Ilma), the supply of workers of Nasir’s age and above currently outstrips the demand for them.

According to the report, by 2030, the number of aged workers in Malaysia would be about 1.2 million but the demand for such workers would be just slightly a third of that.

If you are at Changi Airport, Singapore, most likely the first people you meet after the immigration officers are the ushers to guide you to the taxis. At most food courts, the elderly are employed to clear the trays or clean the floors.

There are certain jobs young people are not interested in. We see less of them here because the foreigners are doing the job for us.

Singapore, understandably, is giving a lot of attention to senior citizens. The republic is seriously looking into what it “needs to do differently in the coming years” as its population ages. In fact, it is considered one of the most urgent challenges for the government today.

The world population is ageing. According to the latest United Nations’ data, the number of those above 60 years globally is expected to more than double by 2050 and triple by 2100.

In 2017, there were 962 million of them, there will be 2.1 billion in 2050 and 3.1 billion in 2100. Shockingly too, according to the data, people aged 60 or above is growing faster than all younger age groups!

This is not just a problem in advanced countries. Most countries in the world have substantial numbers of ageing population. With better healthcare, humans are living longer.

There are loads of other issues pertaining to people of 60 and above. Moreover, living in the 21st century has its challenges.

There are issues about acceptability and competition with the younger generation, and certainly the need for respectability and dignity. But more importantly is coping with the demands at workplaces.

It is the question of how governments are coping with an ageing population.

One way is to make people work longer. We have done that, raising the retirement age to 60. Should we raise that to 65?

It is not a popular policy especially when younger people believe they will be deprived of the chance to climb up the ladder in public service or in the private sector.

The Global Age Watch Index Report shows high-income countries fare better in managing their ageing population. The enabling environment too for ageing people is much better in richer countries.

Like it or not, people of Nasir’s age are transforming society of today and the future. Just like the UN report on ageing says, ageing population is poised to become one of the most dramatic and significant transformations of the 21st century.

Never take Nasir and people his age for granted!

Johan Jaaffar was a journalist, editor and for some years, chairman of a media company, and is passionate about all things literature and the arts. The views expressed here are entirely his own.


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South Korea's latest big export: Jobless college graduates


South Korea's latest big export: Jobless college graduates - Reuters

Left: A jobseeker stands as he gets into the 2018 Japan Job Fair in Seoul, South Korea. Jobseekers attend the 2018 Japan Job Fair in Seoul, South Korea. (Filepics)


SEOUL: Cho Min-kyong boasts an engineering degree from one of South Korea's top universities, a school design award and a near-perfect score in her English proficiency test.

But she had all but given up hope of finding a job when all her 10 applications, including one to Hyundai Motor Co, were rejected in 2016.

Help came unexpectedly from neighboring Japan six months later: Cho got job offers from Nissan Motor Co and two other Japanese companies after a job fair hosted by the South Korean government to match the country's skilled labor with overseas employers.

"It's not that I wasn't good enough. There are just too many job seekers like me, that's why everyone just fails," said the 27-year-old, who now works in Atsugi, an hour southwest of Tokyo, as a car seat engineer for Nissan.

"There are numerous more opportunities outside Korea."

Facing an unprecedented job crunch at home, many young South Koreans are now signing up for government-sponsored programs designed to find overseas positions for a growing number of jobless college graduates in Asia's fourth largest economy.

State-run programs such as K-move, rolled out to connect young Koreans to "quality jobs" in 70 countries, found overseas jobs for 5,783 graduates last year, more than triple the number in 2013, its first year.

Reuters Graphic
(Graphic: Korea's young talents going abroad png - https://tmsnrt.rs/2LwlSUU)

Almost one-third went to Japan, which is undergoing a historic labor shortage with unemployment at a 26-year low, while a quarter went to the United States, where the jobless rate dropped to the lowest in nearly half a century in April.

There are no strings attached. Unlike similar programs in places such as Singapore that come with an obligation to return and work for the government for up to six years, attendees of South Korea's programs are neither required to return, nor work for the state in the future.

"Brain drain isn't the government's immediate worry. Rather, it's more urgent to prevent them from sliding into poverty" even if it means pushing them abroad, said Kim Chul-ju, deputy dean at the Asian Development Bank Institute.

In 2018, South Korea generated the smallest number of jobs since the global financial crisis, only 97,000.

Nearly one in five young Koreans was out of work as of 2013, higher than the average 16 percent among the member countries of the Organization for Economic Cooperation and Development.

In March, one in every four Koreans in the 15-29 age group was not employed either by choice or due to the lack of jobs, according to government data.

Reuters Graphic
(Graphic: S.Koreans landing overseas jobs by country 2018 png - https://tmsnrt.rs/2DZCTR9)

LABOR MISMATCH

While India and other countries face similar challenges in creating jobs for skilled labor, the dominance of family-run conglomerates known as chaebol makes South Korea uniquely vulnerable.

The top 10 conglomerates including world-class brands such as Samsung and Hyundai, make up half of South Korea's total market capitalization.

But only 13 percent of the country's workforce is employed by firms with more than 250 employees, the second lowest after Greece in the OECD, and far below the 47 percent in Japan. "The big companies have mastered a business model to survive without boosting hiring," as labor costs rise and firing legacy workers remains difficult, said Kim So-young, an economics professor at Seoul National University.

Yet while increasing numbers of college graduates are moving overseas for work, South Korea is bringing in more foreigners to solve another labor problem – an acute shortage of blue collar workers.

South Korea has the most highly educated youth in the OECD, with three-quarters of high school students going to college, compared with the average of 44.5 percent.

"South Korea is paying the price for its overprotection of top-tier jobs and education fervor that produced a flood of people wanting only that small number of top jobs," said Ban Ga-woon, a labor market researcher at state-run Korea Research Institute for Vocational Education & Training.

Even amid a glut of over-educated and under-employed graduates, most refuse to "get their hands dirty", says Lim Chae-wook, who manages a factory making cable trays that employs 90 people in Ansan, southwest of Seoul. "Locals simply don’t want this job cause they think its degrading, so we're forced to hire a lot of foreign workers," Lim said, pointing to nearly two dozens workers from the Philippines, Vietnam and China working in safety masks behind welding machines.

In the southwestern city of Gwangju, Kim Yong-gu, the chief executive of Kia Motor supplier Hyundai Hitech, says foreign workers are more expensive but he has no choice as he can't find enough locals to fill vacancies.

"We pay for accommodation, meals and other utility costs in order not to lose them to another factory," said Kim. Out of a staff of 70, 13 are Indonesian nationals, who sleep and eat at a building next to his factory.

NO HAPPY ENDING FOR EVERYONE

For those who escaped Korea's tough job market, not all has been rosy.


Several people who found overseas jobs with government help say they ended up taking menial work, such as dishwashing in Taiwan and meat processing in rural Australia, or were misinformed about pay and conditions.

Lee Sun-hyung, a 30-year old athletics major, used K-move to go to Sydney to work as a swim coach in 2017 but earned less than $A600 ($419) a month, one-third what her government handlers told her in Seoul.

"It wasn't what I had hoped for. I could not even afford to pay rent," said Lee, who ended up cleaning windows at a fashion store part-time before she returned home broke less than a year later.

Officials say they are making a "black list" of employers and improving the vetting process to prevent recurrence of such cases. The labor ministry also established a "support and reporting center" to better respond to problems.

Many on the programs lose touch once they go overseas. Almost 90 percent of the graduates who went abroad with the government's help between 2013-2016 didn't respond to the labor ministry's requests about their whereabouts or changed their contact details, a 2017 survey showed.

Still, the grim job market at home is driving more Koreans to the program every year. The government has also increased relevant budget to support rising demand - from 57.4 billion won ($48.9 million) in 2015 to 76.8 billion won in 2018, data released by lawmaker Kim Jung-hoon shows.

"The government isn't scaling up this project to the extent we would worry about brain drain," said Huh Chang, head of the development finance bureau at South Korea's finance ministry, which co-manages state-run vocational training programs with the labor ministry. Rather, the focus was on meeting growing demand for overseas experience given so many graduates are outside the workforce, Huh added.

A hopeful scenario would be for the economy to one day make use of the resources these graduates bring home as experienced returnees, Huh said.

For 28-year-old K-move alumni Lee Jae-young, that feels like a distant prospect.

"The one year abroad added a line in my resume, but that was about it," said Lee, who returned to Korea in February after working as a cook at the JW Marriott hotel in Texas. "I'm back home and still looking for a job." - Reuters

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