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2011年11月9日 星期三

TV report of China leader's death fuels political rumor mill (Reuters)

BEIJING (Reuters) – Chinese state media denied rum ours on Thursday that former president Jiang Zemin had died after a Hong Kong television station said he had, sparking a wave of speculation about a leadership transition due next year.

"Recent reports of some overseas media organizations about Jiang Zemin's death from illness are pure rumor," the official Xinhua news agency quoted "authoritative sources" as saying.

Jiang, 84, is in poor health. Three sources with ties to China's leadership told Reuters that he is in intensive care in Beijing at the No. 301 military hospital after suffering a heart attack.

In the opaque world of Chinese politics, the health of a leader is fodder for rumors about how the balance of power is shifting at the highest levels of the government.

Current President Hu Jintao retires from office from late next year in a sweeping leadership overhaul, and the rumors about Jiang's health underscore the uncertainties around this.

Hong Kong's Asia Television interrupted its main newscast on Wednesday evening to announce solemnly that Jiang had died, and followed with a brief profile. It kept up the news for several hours on a ticker and then said it would air a special report on Jiang's life late in the evening.

It later canceled the report, and withdrew the ticker after failing to get official confirmation.

On Thursday afternoon, the television station issued a statement to apologize to its audience and Jiang's family.

"Asia Television has taken note of this afternoon's report from Xinhua and has withdrawn last night's report about Mr. Jiang Zemin's death and would like to apologize to our audience and Mr. Jiang Zemin's family," the statement said.

Meanwhile, the Shandong News website (www.sdnews.com.cn) in northeast China posted a black banner with white characters, saying "Our Respectable Comrade Jiang Zemin Is Immortal." The site was no longer accessible on Thursday.

China's foreign ministry spokesman Hong Lei deflected numerous questions about Jiang at a regular news briefing, saying Xinhua had already made a full explanation and that he had nothing further to add.

Searches on a popular Chinese micro-blogging site with terms ranging from "Jiang Zemin" to the Yangtze River (Jiang's surname means "river"), are blocked, a sign that China's censors are concerned about public debate about his health.

Premature reports about the demise of Chinese leaders are hardly new. In the 1990s, Hong Kong and Japanese media reported several times that paramount leader Deng Xiaoping had died.

UNCERTAINTY FOR JIANG ALLIES

Jiang Zemin's passing -- on the surface at least -- would likely have limited impact on the direction of China's politics and economic development.

He retired long ago, handing over the Communist Party's top job to Hu in 2002 and his other posts over the next two years. Hu and Premier Wen Jiabao have since led the country on a decade-long charge that saw it grow from an economy the size of Britain to one that has surpassed Japan.

But the prospect of Jiang's passing would add a breeze of uncertainty to a transition that is widely thought to hand power from Hu to a new generation led by Xi Jinping, currently vice president. That would take place at the 18th Communist Party Congress expected sometime in the autumn of 2012.

Xi, anointed as Hu's heir apparent at the congress in 2007, was considered acceptable to both the Hu and Jiang camps.

But in China, the death of a senior leader can be cause for worry, and even spell disaster, for proteges and allies who are no longer protected.

Hu would no longer have Jiang acting as a counterweight to his influence over the future make up of the next leadership.

"New leaders are selected by old leaders," Zheng Yongnian, professor of Chinese politics at the National University of Singapore. "He's one of the important selectorate. After he passes away, other current leaders will become more influential."

He could also settle scores or take down other rivals with links to Jiang, if necessary.

Past leaders can have considerable clout in China. Deng wielded power as paramount leader despite having given up all his posts except the honorary chairman of the Chinese bridge association.

Jiang consolidated his own grip on power after Deng died in 1997. By the time Jiang retired his last post -- as head of the military commission -- in 2004, he had already stacked the Politburo with his people.

"Front and back, left and right, up and down. No matter where Hu looks, there is a Jiang man," said one source at the time the leadership line-up was announced back in 2002.

In Jiang's case, there are quite a few allies still in place in the leadership who might now have cause for concern, should Hu assert himself.

"If he dies, the situation becomes very delicate," said one source with ties to leadership circles who requested anonymity given the sensitivity of the subject.

Among the Jiang allies still in senior posts are: Wu Bangguo, parliament chief and the second ranking person in the nine-member Politburo Standing Committee; Jia Qinglin, who heads a parliamentary advisory body and is ranked fourth; and Li Changchun, who oversees propaganda and ideology and is ranked fifth.

How exactly it will play it out, is unclear. With the Party Congress only about 15 months away, Hu's window to further consolidate his grip on power is considerably shorter than Jiang had as he prepared to step down.

(Writing by Brian Rhoads; Additional reporting by Alison Leung in HONG KONG and Ben Blanchard in BEIJING,; Editing by Don Durfee and John Chalmers)


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2011年10月30日 星期日

China to pour $9bn into Brazil this year: report (AFP)

BEIJING (AFP) – China is expected to pour $9 billion into Brazil this year, with half for investment in the country's high-tech sector, state media said Tuesday, citing a senior Brazilian trade official.

Chinese investment in Brazil's technology industries will hit $4.5 billion this year, Alessandro Teixeira, Brazil's deputy minister of development, industry and foreign trade, said in comment carried by the China Daily.

Capital from China had previously been poured into the farm and mining sectors, and Brasilia has been urging Chinese companies to invest in non-raw material industries to help balance the country's economy, the report said.

"Seventy percent of the trade between Brazil and China is basically commodities," Teixeira said. "But we are keen to improve commercial relations in medium and high-end technology."

He added that both governments had reached an agreement to boost Chinese investment in the high-tech sector.

China has in recent years become Brazil's largest trading partner, overtaking the United States, and in 2010 was the largest investor in the South American nation, pumping in about $30 billion.

Two-way trade has grown from $2.3 billion in 2000 to $56.4 billion in 2010, according to Brazilian officials.

Chinese telecom equipment makers ZTE and Huawei Technologies Co have invested heavily in Brazil in recent years, the China Daily said.

ZTE has an industrial park in Hortolandia, close to Sao Paulo. The company's sales revenue in Brazil reached $600 million last year and is expected to grow to $1 billion this year, the report added.

In April, Brazilian President Dilma Rousseff said during a visit to China that Huawei had announced it will build a research centre in the Sao Paulo area, with total investment of $300-400 million.


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2011年7月20日 星期三

China's Wen says prices under control: report (Reuters)

LONDON/BEIJING (Reuters) – China Premier Wen Jiabao sounded his most upbeat note this year on Beijing's fight against inflation, saying he expects price pressures to decline steadily even as the country keeps up its brisk economic growth.

In an opinion piece published in Friday's edition of the Financial Times newspaper, Wen wrote he was "confident price rises will be firmly under control this year," and that China is "fully capable of sustaining steady and fast economic growth."

Wen's remarks came as he kicks off a visit to debt-stricken Europe and is a timely response to investor worries that China, in its struggle to tame near three-year high inflation, could over-tighten monetary policy at the expense of economic growth.

"There is concern as to whether China can rein in inflation and sustain its rapid development," Wen wrote. "My answer is an emphatic yes."

"China has made capping price rises the priority of macroeconomic regulation and introduced a host of targeted policies. These have worked," he said.

"The overall price level is within a controllable range and is expected to drop steadily."

But some analysts said it was too early for China to declare victory in its fight against inflation, and warned investors against thinking that Wen was signaling an imminent change in monetary policy.

Ting Lu, an economist at Merrill Lynch-Bank of America, argued Wen might have deliberately sounded so positive as he knew he was addressing foreign readers of the Financial Times.

In Chinese culture, there is a tendency to play up one's achievements when speaking to the outside world, and swing the pendulum the other way to emphasize challenges when speaking to one of your own, Lu said.

"Readers should read the article with some grain of salt," he said. "Despite these positive messages from Wen, it could be wrong to expect the Chinese government to change its policy stance soon."

Lu said he still expects China to raise interest rates once more this year. That is roughly in line with market forecasts for a 25-basis-point rise in benchmark lending rates, and a 50-basis-point increase in deposit rates.

On the global economy, Wen said it was recovering from the turmoil seen in the financial crisis, but said many uncertainties remained and that the recovery was fragile.

He pointed to uneven global growth, stubbornly high unemployment in developed economies, mounting debt risks and inflationary pressures.

"While the shock of the crisis has yet to end, new risks have emerged," Wen wrote. "The world must co-operate closely to meet the challenges."

STILL EYEING RATE RISE

Wen's latest remarks on China's inflation were a marked shift from his comments in March when he warned about rising price expectations, and likened inflation to a tiger that is hard to cage once it is let out.

China's inflation ran at a 34-month high of 5.5 percent in the year to May, and is expected to quicken to 6 percent in June or July.

That would be well above China's 2011 inflation target of 4 percent, which Wen did not mention on Friday.

Some analysts have noted, however, that China's official inflation target is among some malleable objectives that the central bank can breach. For instance, Beijing has for years trounced its official economic growth target of 8 percent.

Given wages in China are expected to climb in coming months and a stubbornly buoyant property market that has kept house prices at record highs, economists doubted China can rest easy in its anti-inflation campaign anytime soon.

"Inflation may peak in June or July, but there are many underlying factors that could push up prices such as labor cost and agricultural product inflation," said Hua Zhongwei, an analyst with Huachuang Securities in Beijing.

Still, shares in Hong Kong and Shanghai bounced on Friday morning after Wen's remarks on inflation. China shares have been among the worst performers in Asia this year on persistent worries of further policy tightening to combat price pressures.(.HK)

(Reporting by Paul Hoskins in LONDON, Koh Gui Qing and Zhou Xin in BEIJING; Editing by Jacqueline Wong)


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