Can EU solve its own debt crisis?

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EU can solve its own crisis, no need for China to step in

By TEE LIN SAY linsay@thestar.com.my

SERI KEMBANGAN: China does not need to help in the eurozone debt crisis because Europe has enough money to solve the problem on its own, said Standard Chartered head of research (east global research) Nicholas Kwan.



“It is now politics that is getting in the way,” he said at a discussion on “Building Financial Hubs Rethinking the World of Money” at the 3rd World Chinese Economic Forum.

Kwan said people must not be misled to think that with China stepping in, the eurozone problem could be solved. Europe's economy is US$14 trillion (RM42 trillion), while China's US$3.26 trillion (RM9.78 trillion) in foreign reserves is only a quarter of that figure.

“To ask China to help would be to give China some limelight. Even if China were to help, they cannot expect China to help in a big way. If Germany is not interested to help, then why should China?”

Kwan said China had spent too much money investing, particularly in US treasuries, which were yielding a very low interest rate.

“I don't think China can cut down anytime soon in US treasuries, but they can do some passive diversification. Moving forward, they can reduce the proportion of new investments in the treasuries,” he said.

Kwan said that one good thing about the financial crisis was that every economy had a share in it. In the case of China, it had invested too much US dollars to a single huge borrower. “As everyone is affected, everybody has an interest for the world to recover,” he said.

IHS senior director and Asia-Pacific chief economist Rajiv Biswas said that growth for Europe in the medium term would be constrained at less than 2% but, at the same time, would not be negative.

Rajix expected moderately positive growth in the United States, with gross domestic product (GDP) expanding at an average of 2% over the next decade.

He said that much of China was moving in the middle-income group. “A large share of GDP to consumption will increase as a result of this. Moving forward, domestic consumption in China will become a lot more important,” he said.

Kwan added that previously, if growth in the United States and Europe were to stop, other economies would follow suit. However, this has now changed, especially in Asia and China, as the emerging economies are now able to create markets among themselves.



“While Asia would still be affected by the slowdown in the West, now they can offset some of the growth that is missing,” he said.

Tembusu Partners Pte Ltd chairman Andy Lim said the four sectors he liked in China were healthcare, resources, clean technology and education.

“When we invest in China, we never ask them to show us their books. We know it is of no use. What we first do is to spend time getting to know these entrepreneurs in the first 12 months. Secondly, we talk to their peers.

“Then thirdly and very importantly, we need to know what the entrepreneur's relationship with the local authorities are. This makes a huge difference to the bottomline. Finally, we look at their books,” said Lim.

Maybank Investment Bank Bhd director and head of dealing, equities, Lok Eng Hong said Malaysia recently made it as China's top 10 investment destinations. The top few destinations were Hong Kong, the United States, South Korea and Australia.

Chinese President Hu delivers speech at G20 Summit

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In French resort city of Cannes, Chinese President Hu Jintao has delivered a speech at the G20 Summit. He pointed out that some major economies are experiencing an economic slowdown, and some countries are facing acute sovereign debt problems. Hu called for greater attention and more concerted efforts to solve these problems.

In his speech, Hu Jintao pointed out that the world economy is facing instability and uncertainty and encountering growing risks and challenges. As the premier forum for international economic cooperation, the G20 must work to address the key problems, boost market confidence, defuse risks and meet challenges, and promote global economic growth and financial stability.

Hu also made five specific proposals. First, ensuring growth while paying attention to balance. He called on different countries to introduce new and strong measures to ensure that the fiscal and monetary policies are fully implemented and that funding is channeled into the real economy to boost production and employment.

Second, he urged pursuit of a win-win outcome through cooperation. Hu said world leaders should strengthen unity and send a strong signal of cooperation to the world so as to boost the confidence of the international community in global economic recovery and development.

Third, improve governance in the course of reform. Hu proposed that the world should advance the reform of the international monetary system in a steady manner and oppose trade and investment protectionism in order to build a fair, equitable and non-discriminatory international trading system.

Hu’s fourth proposal was to strive for progress through innovation. He urged innovative thinking, a system and mode for advancing economic and social development and to bring into full play the basic role of the market in resources allocation while avoiding blind pursuit of profit and malicious competition.

Finally, he called on promoting common prosperity through development. He said that as a developing country, China stands ready to promote mutual assistance with other developing countries and will work with them to advance durable peace and common prosperity.

To further help the least developed countries in their development endeavor, China will, in the context of South-South cooperation, give zero-tariff treatment to 97 percent of tariffed items exported to China from the least developed countries that have diplomatic ties with China.

This year marks the tenth anniversary of China’s accession to the WTO. In the past decade, China’s economy has made significant advances and its contributions to world economic growth. On the other hand, China is confronted with quite a few challenges in its efforts to maintain steady and fast growth. Hu said he was convinced that, through hard work and with the understanding and support of the international community, China’s economy has bright prospects. And continued steady and fast economic growth in China will serve the interest of global economic growth.

Hu calls for joint efforts to promote growth, financial stability
Chinese President Hu Jintao on Thursday urged the world's major economies to work together to promote growth and financial stability. "It is imperative that we stand on a higher plane, transcend differences on specific issues, move beyond short-term considerations, and jointly seek ways to overcome the crisis and sustain development," Hu told the Group of 20 (G20) summit here. <Full Story>

China makes more contributions to world economic growth: Hu
Chinese President Hu Jintao said Thursday that his country is making more contributions to world economic growth as its economy has made strides in the past decade. <Full story>

China pledges more help to other developing countries
Chinese President Hu Jintao said Thursday that his country will provide more help to other developing countries. <Full story>

Chinese President Hu's speech at G20 Summit in Cannes

China's Hu Says Europe Can Solve Crisis On Its Own


(RTTNews) - Chinese President Hu Jintao said on Thursday that Europe has the absolute "wisdom and ability" to solve its debt problems. 

After meeting French President Nicolas Sarkozy at Cannes ahead of the G20 meeting, he said that recent reform package agreed upon by EU leaders during last week's summit demonstrated Europe's determination and will to end the crisis.

According to a statement from the Ministry of Foreign Affairs, Hu said that he expects the implementation of the reforms to solve all the difficulties currently facing the region, and help in its economic recovery.

by RTT Staff Writer

Related articles

• Eurozone seeks bailout funds from China Oct 29, 2011
• Q&A: Why China won't ride to Europe's rescue (cnn.com)
• China to Possibly Aid Europe and Invest in Financial Bailout (prweb.com)
• We can't cure Europe's malaise, says China (independent.co.uk) 

China completes nation's first space docking

China spacecraft dock together in orbit

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China took a crucial step towards fulfilling its ambition to set up a manned space station on Thursday by completing its first successful docking high above Earth, state media reported.



The Shenzhou VIII spacecraft joined onto the Tiangong-1 experimental module at 1737 GMT, silently coupling more than 343 kilometres (213 miles) above the Earth's surface, the Xinhua news agency said.

The spacecraft, whose name translates as "divine vessel", is a modified version of the capsules that took the first Chinese astronauts into space as part of the rising power's ambitious exploration programme.

China aims to complete construction of a space station by 2020, a goal that requires it to perfect docking technology -- a delicate manoeuvre that the Russians and Americans successfully completed in the 1960s.

The technology is hard to master because the two vessels, placed in the same orbit and revolving around Earth at high speed, must come together progressively to avoid destroying each other.

China sees its space programme as a symbol of its global stature, growing technical expertise, and the Communist Party's success in turning around the fortunes of the once poverty-stricken nation.

Chinese leaders including Premier Wen Jiabao were at the Beijing Aerospace Flight Control Center to watch a live broadcast of the docking, while President Hu Jintao, who is in France for the G20 summit, sent a congratulatory message.

"Breakthroughs in and acquisition of space docking technologies are vital to the three-phase development strategy of our manned space programme," Hu said.

The docking took eight minutes and was aided by microwave radars, laser distance measurers and video cameras.

The two spacecraft, each weighing about eight tonnes, smoothly captured, cushioned, connected and locked onto each other, Xinhua reported.

"To link up two vehicles traveling at 7.8 km per second in orbit, with a margin of error of no more than 20 centimetres, is like 'finding a needle in a haystack'," Zhou Jianping, chief designer of China's manned space programme, said.


"This will make it possible for China to carry out space exploration on a larger scale."

He said the country was now equipped with the technology and capacity to construct a space station, adding that Shenzhou VIII might be used as the prototype for a series of spaceships.

China plans to make more than 20 manned space voyages in the next decade, Xinhua said.

A Chinese astronaut trainer is among six volunteers who will emerge on Friday into the outside world after spending almost 18 months in isolation at a Russian research centre to test the effects on humans of a flight to Mars.

China began its manned spaceflight programme in 1990 after buying Russian technology and in 2003 became the third country to send humans into space, after the former Soviet Union and the United States.

In September 2008, the Shenzhou VII, piloted by three astronauts, carried out China's first space walk.

The Shenzhou VIII spacecraft took off on Tuesday from the Jiuquan base in the northwestern province of Gansu from where Tiangong-1 -- or "Heavenly Palace" -- also launched on September 29.

The two vessels will stay linked together for around 12 days before separating and uniting again at a later date, said Wu Ping, spokeswoman for China's manned space programme.

If this mission is a success, China will launch two more spacecraft next year to dock with Tiangong-1 -- the Shenzhou IX and Shenzhou X -- at least one of which will be manned.

Two women are among the astronauts who are training for this mission, Xinhua said. If they are chosen to go, they will be the first women to be sent into space by China.

In preparation for the manned flight, two life-size dummies have been placed on board Shenzhou VIII.
Electronic data will be transmitted back to Earth to help researchers assess the impact of the flight on human breathing, temperature and blood pressure.

The spacecraft is also being used by Chinese and German researchers to conduct joint experiments in life sciences and microgravity, the first time another country has been given any access to China's manned space programme.

China plans to launch a space laboratory before 2016, and hopes to have a space station in orbit capable of accommodating long-term stays in space by around 2020, officials have said.

(c) 2011 AFP

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China spacecraft dock together in orbit

Two unmanned Chinese spacecraft docked successfully and were orbiting the Earth together on Thursday in a step that moves China closer to manning its own space station in about a decade.

The Shenzhou 8 craft that was launched on Tuesday docked with the already orbiting Tiangong 1 module, said Wu Ping, spokeswoman for China's manned space program.

The assembly has orbited Earth six times, with onboard instruments working normally, she said.

The US and Russia are the only other countries to master the space docking technique. It was "a milestone success and sets a sound foundation for continued missions", Wu said.

The joint assembly will fly for another 12 days doing tests, then a second docking will be followed by two days' flight. Shenzhou 8 is scheduled to return to Earth on November 17, she said.

"Our aim is to try our best to perform multiple tests within one launch so as to maximise our benefits through limited launches," Wu said.

China launched its own space station program after being turned away in its repeated attempts to join the 16-nation International Space Station. That was largely on objections from the United States, which is wary of the Chinese space program's military links.

Experts see no explicit military function for the Chinese space station.

In terms of technology, the launch of the Tiangong-1 places China about where the US was in the 1960s during the Gemini program. But experts say China progresses further than the US did with each launch it undertakes.

Two more docking missions with the Tiangong 1 model are planned next year, one of them manned. China will set up a space lab by 2016, Wu said, and its actual station will be launched in three sections between 2020 and 2022.

All the parts of the docking mechanism and the more than 600 onboard instruments were designed and made by Chinese state-owned and private companies, she said.

President Hu Jintao praised the docking in a message from France en route to the Group of 20 economic summit. Premier Wen Jiabao and other top officials watched the docking from an aerospace centre in Beijing, the official Xinhua News Agency reported.

At about 60 tons when completed, the Chinese station will be considerably smaller than the International Space Station, which is expected to continue operating through 2028.

China launched its first manned flight in 2003, joining Russia and the United States as the only countries to launch humans into orbit. The Chinese space program also calls for one day landing on the moon, possibly with astronauts.

Asked by a reporter what real benefits the Chinese government's investment in its space program brought to ordinary citizens, Wu said "It's fair to say that aerospace technology is closely linked to the everyday life of the people."

She said the benefits of past space travel ranged from the use of satellites for navigating in cars and television broadcasting to the designs of nappies for babies and the freeze-drying of ingredients used in instant noodles.

© 2011 AFP  Newscribe : get free news in real time

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China's space station program  

TM ringing up a hefty bill

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Ringing up a hefty bill

Telekom to make good the error of overcharging senior subscriber

By SIMREN KAUR simren@thestar.com.my

A RETIRED businessman said he could not take it “sitting down” when he was overcharged by over 100% by Telekom Malaysia Bhd for a subscription package.

The complaint lodged by the businessman, who wished to be known only as Yong, 68, was initially rejected by the company.

However, the company later admitted there were errors in the billing and agreed to provide him with a rebate after Yong visited the TM Bhd outlet in Bayan Baru, Penang, accompanied by a reporter from The Star yesterday.

“I’m happy that my struggle for justice has been worthwhile,” he said.

Yong said he was billed RM334.11 in September when his monthly bill never exceeded RM150.

Double take: Yong, 68, bringing along his erroneous phone bill to successfully fight his case at the Bayan Baru TM Berhad outlet in Penang..

“I happened to scrutinise the bill and noticed that I was overcharged for the ‘BlockBuster Deal 1MBps’ which I signed up on July 27 this year.

“Under the plan, I was supposed to pay RM110 per month with free local and outstation calls to Telekom fixed lines.



“I will also be charged 10 sen per minute for calls to handphones and other fixed lines nationwide,” he said.

However, Yong said he was charged up to RM0.90 per minute for calls to Kuala Lumpur and mobile numbers.

“How can this be so? It is clearly stated that I should only be charged 10 sen per minute,” he said.

Yong then filed a complaint with the TM Bhd outlet in Bayan Baru on Oct 13 and the matter was referred to the company’s headquarters.


However, he received a letter from TM Berhad on Oct 21 claiming that the bill was correct.

“I was not satisfied as they did not even give any reason as to why I was overcharged,” said Yong, who then called The Star to seek assistance.

Yong then approached the TM Bhd outlet in Bayan Baru again accompanied by a reporter.

TM Bhd Bayan Baru customer service officer Norhashimah Yacob said they checked through the system and found errors in the billing.

“The mistake is regretted. We will provide Yong with a rebate for the amount he was overcharged in his future billings,” she said.

Yong said that Telekom subscribers should check their bills regularly to ensure there were no discrepancies.

“If I were illiterate, then I would not have been able to do anything,” he said. 

China's space station program

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VIDEO: CHINA´S SPACE STATION PROGRAM CCTV News - CNTV English

China has a long-term goal for its space exploration program. And the launch of the Shenzhen 8 Space Shuttle is one of the missions that will be accomplished during the program’s undertaking.

According to the China National Space Administration or CNSA, China’s Space Program consists of three stages.

Phase 1 is the launch of a manned space shuttle that will execute various space experiments. The Shenzhou 5 and 6 have completed this stage’s mission.

The launch of a space laboratory marks Phase 2 of the program. One of the missions during this stage will be the docking of a manned space shuttle and space lab, which is a prototype of China’s ultimate space station to carry out experiments.



Shenzhou 7 was the third human spaceflight, which included the first Chinese extra-vehicular activity or EVA, a milestone during this phase. The launch of the Tiangong Space Lab and Shenzhou 8 to 10 Space Shuttles is expected to complete the rest of the second phase missions, which paves the way for China’s ultimate goal of constructing a space station. Its operation is part of Phase 3, which will take place in the future.

Tiangong-1 is the first Chinese space laboratory module. It is intended as an experimental testbed to develop rendezvous and docking capabilities needed to support a larger space station complex. Tiangong-1 is expected to be visited by three Shenzhou missions during its operational lifetime: the unmanned Shenzhou 8 in 2011, and the manned Shenzhou 9 and 10 in 2012.

After spending approximately two years in orbit, Tiangong-1 will return to earth in 2013. It will be replaced over the following decade by the larger Tiangong-2 and Tiangong-3 modules, which will conduct more sophisticated space experiments and probes. Tiangong 2 will fulfill various experiments, introduce new technologies, and possibly develop space medicine. The full-size, multi-module Tiangong 3 space station will have astronauts stationed inside. The station will be supplied by cargo shuttles.

CNSA says the Tiangong 3, China’s first full-size space station, will be a realistic and multi-functional station to perform experiments, production, probing and storing, which they believe will produce fruitful results. For example, the space station will have the ability to develop new types of vegetables and fruits or produce new materials in space. China has set a goal of having its space station to be in place by 2020.

A million-dollar dream?

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What would you do if you have a million bucks?

Monday Starters - By Soo Ewe Jin

WHAT would you do if you have a million bucks? A poor government clerk from Bihar, a remote and poverty-stricken region of northern India, has become the first person to win 50 million rupees (RM3mil) on the popular Indian version of the gameshow Who Wants to be a Millionaire?

Sushil Kumar's win is a classic case of life imitating art as the script is similar to that of the 2008 Oscar-winning film Slumdog Millionaire.

According to the Associated Press, Sushil said he would spend some of his prize money to prepare for India's tough civil service examination, which could lead to a secure and prestigious lifetime job.

He would also buy a new home for his wife, pay off his parents' debts, give his brothers cash to set up small businesses and build a library in Motihari so the children of his village would have access to books and knowledge.

 
Real life slumdog millionaire: Sushil (left) says thank you with clasped hands as he receives his US$1mil prize from Bollywood actor Amitabh Bachchan during the fifth season of the Indian version of the Who Wants to be a Millionaire? television quiz in Mumbai on Oct 25. Kumar, a computer operator who earns just US$130 a month, has become the first person to win the top prize. — AFP

Everyone loves a story like this. Although people can become instant millionaires by striking the lottery or pulling the lever on a one-armed bandit at a casino, using one's talent at a tension-filled gameshow is more admirable.

And I applaud Sushil for his noble attitude in thinking of others to share in his newfound fortune. Bihar is one of the poorest states of India and its remoter areas, such as Motihari, have been largely untouched by India's phenomenal recent economic growth.



Do you know that there are now at least 39,000 millionaires in Malaysia? According to a recent report by the Credit Suisse Group, 19,000 new millionaires were created over the past 18 months alone.

Meanwhile, the Asia-Pacific Wealth Report 2011 by Merrill Lynch Global Wealth Management and Capgemini, also released recently, revealed that Malaysia's rich prefer splurging on a fancy new set of wheels, luxurious yachts or private jets.

Up to 46% invested their ringgit in luxury collectibles like cars, boats and jets, the highest percentage of any country within the Asia-Pacific region.

Their counterparts down south seem less interesting and still prefer jewellery and luxury watches.

I know that the CEOs who read the business section of this newspaper may consider a million ringgit small change but to most of us, it is a very faraway goal, not something one can possibly achieve as a regular salaried worker.

But we can all dream and I was wondering to myself, what would I do if I suddenly had a million ringgit in hand? I suppose our wishes would coincide very much with our age, status, and ultimately our character.

To those who believe material pursuits equate to real happiness, a shopping spree would be fantastic.

Those who do not focus too much on material things may want to travel around the world and complete their Bucket List, which may also include going on a religious pilgrimage.

I believe that God never gives us more than we can handle, just as He never lets us go through trials and tribulations beyond our capacity to endure.

And that was when I stopped dreaming. Because I know, seriously, I will never be able to handle so much money at any one time. So I shall be content and count my blessings. I hope you will too.

Deputy executive editor Soo Ewe Jin notes that the world's population officially hits seven billion today. No one really knows who is Citizen Seven Billion, of course, but by the time he grows up, millionaires and billionaires will probably be a dime a dozen.