China to provide 500,000 USD for human resource development in Central Asia

China will give half a million U.S. dollars to Central Asian countries to support their human resources development, said China’s Vice Finance Minister Li Yong.

The money will come from the Regional Cooperation and Poverty Reduction Fund (RC Fund) set up by China at the Asian Development Bank (ADB), said Li at the Ministerial Conference on Central Asia Regional Economic Cooperation (CAREC) in Urumqi.

“China actively supports regional economic cooperation in Central Asia,” said Li.

China provides technological aid for the area’s agricultural development, environmental protection and capacity building through the RC Fund, and supports cooperation in prevention and control of AIDS and bird flu, said Li.

China is committed to providing 20 million U.S. dollars to Central Asian countries between 2005 and 2009. It established the RC Fund last March to promote regional cooperation in reducing poverty among the developing member countries of the ADB.

In June 2004, China gave Kyrgyzstan 60 million yuan (7.5 billion U.S. dollars) in aid to build a 937-kilometer highway linking the country with China and Uzbekistan.

From 2006 to 2008, the ADB, together with the European Bank for Reconstruction and Development, the International Monetary Fund, the Islamic Development Bank, the United Nations Development Program and the World Bank, will invest 2.3 billion U.S. dollars in regional transport, energy and trade infrastructure in Central Asia, with 1.4 billion coming from the ADB.

Created by the ADB in 1997, CAREC is a regional cooperation mechanism focusing on transport, trade and energy initiatives that are critical to the economic performance of the region.

It is also financing infrastructure projects in order to improve living standards and reduce poverty in CAREC countries.

Source: Xinhua

China to encourage investment from green companies

The Chinese government is to encourage more foreign investment in energy-saving and environmentally-friendly industries, Vice Minister of Commerce Ma Xiuhong has said.

The government would also make more efforts to optimize the industrial structure of foreign investment, said Ma.

Foreign investors have invested 665 billion US dollars in China in the past 27 years, Ma said. By the end of last September, China had recorded capital from over 200 countries and regions and more than 800 research centers have been established by foreign companies.

Foreign investment played an important role in China’s economy, with taxes from foreign firms contributing 634.9 billion yuan (80.36 billion US dollars) last year, 21 percent of the country’s total tax revenue.

By the end of last year, foreign-invested companies were employing more than 25 million people, accounting for 11 percent of China’s total jobs.

Foreign companies are also encouraged to set up regional headquarters as well as purchase, logistics and training centers in China.

China-Africa trade expected to top US$100 bln

China and Africa should fully tap cooperation potential and strive to bring their trade volume to US$100 billion by 2010, Premier Wen Jiabao proposed here Saturday afternoon at the High-level Dialogue and 2nd Conference of Chinese and African Entrepreneurs.

The figure will more than double the 2005 level, about $39.7 billion. In the first nine months, China-Africa trade surged to $40.6 billion, up 42% year-on-year.

“Although China’s trade has been running a deficit against Africa in recent years, China still hopes to further expand its import from African countries,” Wen said.

At the opening ceremony Saturday morning of the Beijing Summit of Forum on China-Africa Cooperation, Chinese President Hu Jintao made fresh pledges to facilitate bilateral trade and cooperation, saying China will double its aid to Africa by 2009, increase from 190 to over 440 the number of tariff-free import items from the least developed African countries having diplomatic ties with China.

China will also provide 3 billion dollars in preferential loans and $2 billion of export credits over the next three years and establish a special fund of $5 billion to encourage Chinese investment in Africa.

Calling these measures “pragmatic and simulative,” Wen made five proposals to entrepreneurs from both and Africa.

He said both sides should work closer in service sectors, tourism, finance and telecommunications in particular, to cultivate new economic growth points and facilitate trade in a more balanced and healthier manner.

Wen said China would encourage capable and reputed indigenous companies to invest in Africa and spread their technology and management experiences. “We will also encourage capable Chinese companies to invest in the trade and economic cooperation zones inAfrica,” he said.

“African companies interested in investing in China are welcome,” Wen said.

China: chief editor of youth daily replaced

Another personnel reshuffle has taken place in Zhongguo Qingnian Bao, a daily directly under the Communist Youth League [CYL] Central Committee. Chief Editor Li Erliang has been transferred and the vacancy has been filled by Deputy Editor Chen Xiaochuan. Reportedly, the removal of Li Erliang from office is directly related to the Bingdian incident earlier this year.

The transfer is seen as an attempt by the authorities to “put an end” to the incident that evoked the “serious concern” of the media overseas. It has been reported that the authorities are disappointed by the “trouble” caused by Li Erliang and his failure to properly handle the incident.
The decision was “announced internally” and not made public to the agency.

Li Erliang failed to impose final checks and accommodated his subordinates, which resulted in Bingdian Weekly publishing a series of sensitive articles last year. They include a lengthy piece by Taiwan writer Lung Ying-tai drawing a comparison of democracy on both sides of the Taiwan Straits and deliberately underrating the CPC, an essay exposing Zhongnanhai law academics of winning popularity by deception, and an article by Yuan Weishi, professor of Guangzhou Zhongshan University, on modern history that expressed views different from those of the authorities.

Earlier this year, Bingdian Weekly published an article by Yuan Weishi exploring modern history and criticizing the CPC’s education system. The move caused a sensation and upset the authorities. As a result, Bingdian Chief Editor Li Datong and Deputy Editor Lu Yaogang were both removed from office.

Source: Ming Pao website, Hong Kong (in Chinese) through BBC Monitoring

HONG KONG: Brilliance China CFO quits

Brilliance China Automotive Holdings said chief financial officer Zha Jianping had resigned, effective immediately, to be replaced by Lei Xiaoyang, an executive director of the company.

The Hong Kong holding company told Dow Jones Zha was also finance chief and director of Brilliance’s Shenyang XingYuanDong Automobile Component and director of Shenyang Brilliance JinBei Automobile.

Brilliance China said Zha confirmed he has no disagreement with the board, Dow Jones noted.

Goldman Sachs China venture loses COO to Standard Chartered – report

BEIJING (XFN-ASIA) – The chief operating officer of Goldman Sachs Group Inc’s China joint venture – Goldman Sachs Gaohua Securities – has quit the firm to join Standard Chartered PLC in Singapore, the Wall Street Journal reportedd, citing a Standard Chartered spokeswoman.

Joe Stevens will start work as group head of principal finance for Standard Chartered on Dec 1, the Hong Kong newspaper reported.

Goldman Sachs Group owns a 33 pct stake in Goldman Sachs Gaohua Securities.

Simmons appoints China chief

Simmons & Simmons managing partner Mark Dawkins has finally appointed a new China regional managing partner. Hong Kong head of financial services Paul Li was handed the post, which was left open by the departure of Huen Wong plus four other partners to launch the first local office of Fried Frank Harris Shriver & Jacobson. Dawkins said Li’sappointment marked a “restabilisation” of Simmons’ regional teams. The firm now has to fill the partner headcount depleted by the exodus to Fried Frank.

Yahoo China appoints new general manager -sources

SHANGHAI, Oct 18 (Reuters) – Yahoo China has appointed Xie Wen, former CEO of financial Web portal Hexun.coma, as its new general manager, sources said on Wednesday.

The appointment was effective on Tuesday, one source confirmed. Yahoo China’s former general manager, Tian Jian, is now vice president of Alibaba’s M&A department and will be in charge of the company’s strategic investment and acquisitions.

Yahoo Inc.’s (YHOO.O: Quote, Profile, Research) main China business consists of a 40 percent stake in Alibaba.com that it bought last year for $1 billion. As part of the landmark deal, Yahoo Inc. folded its previous China business into Alibaba. (Additional reporting by George Chen)

Jack Gao appointed Star China CEO, News Corp. VP

Star has appointed Dr. Jack Gao as its CEO of Star China. Gao will officially join Star in November 2006, and will report to Star CEO Michelle Guthrie.
Based in Beijing, Gao will be in charge of Star’s overall business interests in China. He will be responsible for developing strategic and business directions while also overseeing Star China’s day-to-day operations.

Gao has also been appointed VP of News Corporation and will assume the position of chief representative of the News Corporation Beijing representative office, responsible for running News Corporation’s activities in China, informs an official release.

Commenting on Gao’s appointment, Guthrie said, “Jack’s insights to the China market, combined with his wealth of networking and business experience, and a proven track-record of success, make him a unique fit to lead our businesses and growth initiatives in China. We are fortunate to have attracted him to join us.”

“Bringing on someone of Jack’s caliber to lead our China operations underscores Star and News Corporation’s commitment to this important market. As we expand aggressively into the digital media space, Jack’s technology background and experience in running businesses for multinationals such as Microsoft and Autodesk in China will serve as important assets in taking us to the next stage of our development in China,” Guthrie continued.

Gao said, “With China poised for sustained and strong economic growth in the years ahead, a tremendous number of opportunities for dynamic and progressive companies such as Star and News Corporation will continue to open up. I am thrilled at the opportunity to apply my experience in China to Star and News Corporation’s businesses and look forward to working with Michelle and the rest of the talented team at Star and News Corporation in seizing growth opportunities in this exciting marketplace.”

Prior to joining Star, Gao served for more than three years as Apac Emerging Geography VP for Autodesk Inc., where he was responsible for strategy, marketing and sales, product research and development, government and public relations, investments, human resources, finance and administration operations in Greater China and India. Before that, Gao was general partner of Walden International, a leading venture capital firm in the USA. Between 1999 and 2002, Gao was president and general manager of Microsoft (China) Co. Ltd. Prior to joining Microsoft, Gao spent five years with Autodesk, as regional director, Taiwan, Hong Kong and Mainland China, the release adds.

Gao holds doctorate, master and bachelor degrees in engineering from the University of California, Los Angeles, and Harbin Institute of Technology in China.

China’s Emerging Labor Movement

Trade unionists in the US and elsewhere have long argued that there is no labor movement in China. They rightly point out that Chinese workers lack even the most basic human rights protections, including the rights to strike and join an independent union.

But there’s more to the story: Ten years ago, according to the China’s Minister of Public Security, there were on average 10,000 large-scale collective protests each year. By 2004, the government recorded 74,000 large-scale protests. Late last year, the Minister of Police announced protests had increased to 87,000 last year, involving well over four million workers.

Four million workers! In the US we celebrated the birth of a new global social movement when 60,000 people showed up for the ‘Battle of Seattle’ in 1999. In China there is now more than enough evidence of continual worker self-organization outside of official trade union channels to put to rest notions that ‘there is no labor movement in China’.

According to Robin Munro, research director of China Labour Bulletin, ‘[W]hereas 10 years ago I think you could have said China did not have a labor movement, that is no longer really the case- there is no freedom of association for workers, but hitherto, people have tended to think that, therefore, there is no Chinese labor movement. I think the scale of worker unrest nowadays is so great, you can go to almost any city in the country now and there will be several major collective worker protests going on at the same time.

So China now has a labor movement.This is an important point to just put there on the table and recognize. It is not organized. It is spontaneous, it is relatively inchoate. But then so were labor movements in most Western countries before trade unions were permitted. We have basically a pre-union phase of labor movement development in China today. It also has great potential, I think, for becoming a proper labor movement.’

In the years before the passage of the National Labor Relations Act – known as the Wagner Actor ‘Labor’s Magna Carta’ – there was no legally enforced right to organize, bargain collectively, or strike in the United States. But US workers who were denied these rights responded with their own “pre-union” phase of struggle. Thousands of workers were arrested or beaten and scores shot dead for trying to exercise these rights. For example, in 1934 alone there were three general strikes and a huge national textile strike – all marked by substantial violence.

Largely in response to this upsurge, in 1935 the Federal government passed the Wagner Act hoping to legalize the labor movement and divert it into more moderate channels. According to a recent study by labor law historian James Gray Pope, the massive sit-down strikes and factory occupations of the following year cajoled the Supreme Court into reversing its own precedents and accepting the Wagner Act as constitutional.

American workers did not get their rights by waiting for the government to provide them; rather, they began asserting rights they believe they were entitled to, and thereby forced the Congress and the courts to acquiesce.

One innovative labor strategy that is being encouraged by CLB as a way to relate to the new emerging Chinese labor movement is the CC-2005 Campaign or Collective Contract 2005. (According to CLB staff, the Campaign’s name is “a slightly cheeky designation, thinking in terms of SA-8000” and other Corporate Social Responsibility (CSR) standards.)

Under existing Chinese labor law, where there is no union presence in a factory, workers are allowed to elect their own representatives to negotiate and sign a collective contract.

With the ACFTU holding only 30% representation outside the government sector, CLB is trying to take advantage of this legal ‘loop-hole’ by urging multi-national corporations that operate in China ‘to pressure their supplier factories into allowing the workers to negotiate a proper collective contract in the workplace.’ The innovation of this approach is the use of existing Corporate Codes of Conducts to negotiate binding collective agreements with enforceable rights. CLB views the CC-2005 campaign an opportunity to create a basic organizing space that is legally protected in the private sector.

As Han Dongfang, Director of CLB, explains, ‘What we want to do is get this collective contract regulation connected, with a code of conduct, a corporate social responsibility kind of thing, which they have been trying to work out for more than 10 years but have never worked out. Now we try to put it together as a new program. We make the corporate social responsibility, the Code of Conduct document, which has no teeth, and make them, together with Chinese law, have teeth, in particular with the workers’ participation, workers’ representation.’

CC-2005 has three major strategic objectives:

To mobilize workers to participate in collective bargaining, so that they can play an active role in protecting their own rights; To achieve real implementation of China’s labor laws, trade union legislation and the relevant standards of the International Labour Organization; To provide a new and effective means by which multinational buyers can realize their commitment to the principle of social accountability.

The massive number of wildcat strikes occurring in China shows that Chinese workers are not waiting for official unions to reform themselves. Instead, they are fashioning new ways to improve their lot. So the challenge is for the US and the other labor movements to find ways to reach out and encourage new independent workers organizations in China. We might want to start by supporting CC-2005 campaign.

[Brendan Smith, Jeremy Brecher and Tim Costello are co-founders of GlobalLabor Strategies, a new resource center working to assist labor and other social movements make the connections and develop the strategies needed to function effectively in the global economy. Read their blog at www.globallaborblog.org.]