Massive AliBaba IPO Still On Track

300px-Flickr_-_World_Economic_Forum_-_Jack_Ma_Yun_-_Annual_Meeting_of_the_New_Champions_Tianjin_2008_(1).jpg                                            Alibaba founder, Jack Ma ( WEF)

This summer promises the launch of what might be one of the biggest IPOs (Initial Public Offering) in history. China’s Hangzhou-based e-commerce giant Alibaba will be listed in New York soon, some say on August 8, which is seen as an auspicious date. Estimates of the size of the IPO range from a conservative $USD 20 billion to $USD 150 billion to $USD 200 billion. Besides its B-to-B flagship unit, Alibaba also has an online marketplace, Taobao, and AliPay, its financial arm that is bigger than PayPal. So if you are investing this year, would you buy some Alibaba stock for your portfolio? Please log in and post your thoughts.

http://www.alibaba.com

http://www.engtaobao.com

 

 

 

 

U.S. Issues 2014 Report on PLA

Soldiers_of_the_Chinese_People's_Liberation_Army_-_2011.jpg         (Chinese Infantry Photo: U.S. Gov. Def. Wikimedia)

                       by David Parmer

Public Law 106-65, provides that the Secretary of Defense shall submit a report “in both classified and unclassified form, on military and security developments involving the People’s Republic of China. The report shall address the current and probable future course of military-technological development of the People’s Liberation Army and the tenets and probable development of Chinese security strategy and military strategy, and of the military organizations and operational concepts supporting such development over the next 20 years. The report shall also address United States- China engagement and cooperation on security matters during the period covered by the report, including through United States-China military-to-military contacts, and the United States strategy for such engagement and cooperation in the future.”  (Prologue U.S. Defense Annual Report to Congress 2014)

The United States Department of Defense has released its annual report on China’s military. Titled “Military and Security Developments Involving the People’s Republic of China” The report states that the PRC continues its long-range modernization program that will improve its ability to fight and win short-duration high-intensity conflicts. China has focus on Taiwan, but is also the South and East China seas.

Military relations between the U.S. and China are expanding, but the U.S. side has concerns about China’s transparency regarding its real military spending figures.

In 2013, the report continues, relations were good, and the U.S. calls on China “to contribute constructively to efforts with the United States, our allies and partners and the greater international community to maintain peace and stability.”

 The report consists of six chapters: four special topics and three appendixes.

  • Annual update
  • Understanding China Strategy
  • Force Modernization goals land Trends
  • Resources For Force Modernization
  • Force Modernization For A Taiwan Contingency
  • U.S.-China Military-to-Military Contacts

There are also four special topics and three appendixes. One of the special topics deals with China’s first aircraft carrier and one of the appendixes deals with China and Taiwan forces data.

China’s reaction was swift, and not positive. In a China Daily (USA) article entitled “Experts take aim at ‘biased’ Pentagon report on China” China’s Ministry of Defense is quoted as stating: “It is completely wrong that Washington issues this so-called report year after year, making irresponsible accusations over China’s normal development of its national defense and military.”

http://www.defense.gov/pubs/2013_china_report_final.pdf

http://usa.chinadaily.com.cn/2014-06/09/content_17573999.htm

Did Russia Blink?

The troubles in Ukraine continue. Despite separatist threats, intimidation and disruption, elections in the former Soviet republic were held.  Russian troop strength on Ukraine’s borders has reportedly decreased. Kiev is working to get control of the country and deal with the situation in its eastern provinces. And what of Russia’s involvement in this matter: have the leaders in the Kremlin thought twice about the costs of what is to be gained and lost in meddling in Ukraine’s internal affairs? Has Russia been reassured, or does it fear a NATO noose slowly tightening around its neck? Are proposed sanctions the reason Russia has backed off, or is Russia simply biding its time? Please log in and post your thoughts.

Person of Interest: U.S. Secretary of Defence Chuck Hagel

imgHandler.ashx.jpeg                                    (Photo: Dep. of Defense)

                                         by David Parmer

“To question your government is not unpatriotic–to not question your government is unpatriotic.”

 On February 26, 2013, then Senator Chuck Hagel was confirmed as the 24th Secretary of Defense of the United States. His confirmation was not without controversy. Nominated on Jan 7, 2013 by President Barak Obama, he faced stiff grilling from congress, particularly his Republican colleagues. His nomination was the first ever to be filibustered. Ostensibly, congress was concerned about his support for Israel, which is a pillar of American foreign policy. Ultimately Hagel weathered the storm and was nominated. One would think that Republicans would be glad to have one of their own in a top position in a Democratic administration, and would have given him a pass. And the reason they didn’t? Probably very simple: from the beginning of his political career, Chuck Hagel has been his own man, i.e. he has followed his conscience and done what he sees as right and good for the country, not just his own party.

Hagel has had a steady, if not meteoric rise to the top. He was born on October 4, 1946 in North Platte, Nebraska the oldest of six children. He attended Catholic high school, started technical school and then volunteered for the U.S. Army. He served in Vietnam, was wounded twice and rose to the rank of sergeant. After the Army, he worked in various jobs in radio, and attended the University of Nebraska, graduating in 1971 with a degree in history. Hagel’s career in politics began when he was a staffer for Nebraska Republican Congressman John Y. McCollistor. After working as a lobbyist, he served on Ronald Regan’s successful presidential campaign. In the 1980s he cofounded Vanguard Cellular Systems, and in 1996 launched his own senate campaign.  He was a U.S. senator from 1997-2009. During the Iraq war Senator Hagel was critical of the Bush administration and the policies of his own party. He was openly critical of Bush insiders like Carl Rove. He also strongly opposed Bush’s 2007 plan to send another 20,000 troops to Iraq.

From 2009, following his retirement from the senate and prior to his nomination in 2013, Hagel was a professor at the Edmund A Walsh School of Foreign Service at Georgetown University. He also continued to pursue his various business interests.

Secretary Hagel has come aboard in some interesting times. And the global chess board, once intelligible and potentially manageable, now looks more like a game of Jumanji. As Secretary of Defense he must deal with multiple challenges, including America’s pivot to Asia and its support for its Asian allies in the face of growing disputes with China, Russia’s actions in Ukraine, and the ongoing challenges of terrorism, failed states and the nuclear threat from North Korea.

The spearhead of American power must be sharp, but the spear must be wielded judiciously. And who better to do it than Chuck Hagel, a former soldier who has seen the face of war firsthand and knows the costs of war.

 (Compiled from Web sources)

 

 

 

Japan To Take More Active Role?

Channel News Asia reports that Japanese Prime Minister Shinzo Abe will propose a more pro-active role for Japan in regional disputes at the Asian Security Summit to be held this weekend. Observers say that Abe will base this activism on the enhanced U.S.-Japan security alliance.  So if Japan does become more active, and it’s government  passes legislation allowing it to assist other nations, how will this change the balance of power in the region?.  Will Asian countries welcome Japan’s resurgent power, or will memories of the Pacific War cause them to view Japan’s activism with skepticism? Let us know your thoughts on a more pro-active Asian Japan. Log in and post your thoughts. 

Hong Kong-17 Years And Counting

Hong Kong From Peak (Y.O.).jpg         (Hong Kong From Peak. Photo: Y.O.)

                             by David Parmer

On a dark and rainy July 1, 1997 Hong Kong reverted to Chinese sovereignty  after 156 years of colonial rule. The rain fell, the People’s Liberation Army marched in and the British sailed away. And that was that.  In the lead up to the handover negotiated years before between Britain’s Prime Minister Margaret Thatcher, and Chinese leader Deng Xiao-ping anxiety about the future of the new Special Administrative Region was high. Many Hong Kongers headed overseas, or at least set up bases there. Destinations of choice included Canada, Australia, the United States and the United Kingdom.

July 1, 1997 came and went, and life went on. Some things remained the same, for example the use of English in schools, the freedom of the press, the use of SAR passports, and the British style of driving on the left. Also some roads’ British names remained. Changes after 1997 included the method of electing Hong Kong’s Chief Officer, the use of the PRC and Hong Kong flags, and the use of currency without the Queen’s picture on it.

Life went on, and problems remain. Pollution, just as in the rest of China is a serious threat to health. In 2003 Mainland tourists were allowed to come to  Hong Kong on an individual traveller basis instead of only as members of a group. Mainland tourism has continued to mushroom, with 2013 numbers set at 40 million visitors.

The New York Times online reported that on May 27, 2014 Chief Executive Leung Chun-ying had proposed a 20% reduction in the number of Mainland tourists as one option to handle the flood of visitors. Predictably the business community was not enamored of his proposal. Other complaints against the Mainlanders include the use of health services, the buying of large quantities of baby formula and the driving up of property prices.

On the 16th anniversary of the Hong Kong handover in July 2013 a huge demonstration was held, with participants numbering any where from 60,000 to 400,000. In 2014 another demonstration is planned for June 20-22 by a group calling itself Occupy Central to hold what it says will be an “unofficial referendum.”

So after 17 years, life goes on in Hong Kong as it does it most other parts of the world-not without its pleasures, but not without its problems either.

Russia Looks East, China Looks West

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China and Russia, old Socialist allies from a way back seem to again be getting close. While economic activity in recent times has remained robust, politically they have gone their own ways since the days of Chairman Mao. Now things seem to be changing. China is embroiled in not just one but several border disputes with its neighbors in the East China Sea and South China Sea. Russia has its own problems with Ukraine and the West. In times of need it is good to have a friend, and maybe this is what both Presidents were thinking this week when they met in China. The signing of a 30-year, $400 billion deal for Russia to supply natural gas to China satisfies both countries’ needs: Russia for a new customer other than Europe for its energy, and China to find a steady supply of clean energy to feed the incessant demands of its economy. The gas deal also gives Putin some leverage in Ukraine, as Western sanctions will not have quite the bite if China would take up the slack created by the defection of Western European customers. Russia and China also went to hold naval maneuvers this week. (.http://english.cntv.cn/2014/05/22/VIDE1400728504756848.shtml)

While events on Russia’s western frontier, and China’s eastern frontier get the media attention, the two together form a significant part of the global land mass and economy, and central Asia on which they both border is just waking up. The West and Japan might have to start to re-think some of their strategies. (Please log in and let us know what you think.) 

Putin’s Busy Trip To China

1400632072140_388.jpg                                         Presidents Vladimir Putin and Xi Jinping (Photo: CICA Summit)

Russia’s President Vladimir Putin was in China this week on a state visit and at the same time to attend the fourth Conference on Interaction and Confidence Building Measures in Asia (CICA). The conference was held in Shanghai on May 20-21.

The conference has been held every four years since 1992. It was first proposed by Kazakhstan President Nursultan Nazarbayev to promote peace, security and stability in the region. China’s CCTV reports that there are now 24 member states and 13 observer states that make up the conference. Topics addressed covered are:

  • Terrorism
  • Drug trafficking
  • Separatist and ethnic forces
  • Environmental issues
  • Maritime issues
  • Energy

 This year’s attendees, in addition to Putin included Iranian President Hassan Rouhani, Kazakhstan President Nursultan Nazarbayev, and U.N. Secretary General Ban Ki-moon.

 The big news to come out of Putin’s visit was not the conference but the closing of a 30-year, China-Russia energy deal to supply Russian natural gas to China. A $400 billion agreement was signed between Russian’s GAZPROM and China’s National Petroleum Corporation (CNPC). The deal had been on the table for a long time but was finally closed during Putin’s visit.

Lesser deals were reported including an understanding for joint development of  a long-haul airliner to compete with Boeing and Airbus, an agreement on the building of a bridge on the Amur River between China and Russia, and discussions on possible Russian weapons sales to China. 

2014 Reader Survey

For our first annual Reader Survey, the RG21 staff would like to know what stories you find most interesting and what type of stories would you like to read in the future. We will endeavor to continue to bring you the most useful stories concerning the politics, economics, history, culture and business of the Asia-Pacific region. If there is a special area of coverage that you would like us to consider, please log in and give us your opinions.

For Tianjin “Expansion” Is The Word

Tianjin Port Red.jpg

                                                               (Photo: Tianjin Port)

Tianjin, north China’s largest coastal city is again on the move. A major seaport and gateway to China since the 19th century, Tianjin is still a hub of activity, with great plans for 2014 and beyond.  In September 2013 Shanghai set up a Hong-Kong like Free Trade Zone in its Pudong area. The government of the PRC is now looking at 12 more FTZ around the country, with Tianjin being a prime candidate. Central government survey has been completed and approval is in the pipeline. An expanded FTZ would include the Dongjiang Free Trade Port Zone, the Binhai New District and the Port of Tianjin.The Tianjin Port Free Trade website reports that 1500 new enterprises are to be introduced in 2014. 100 projects will start construction and several ecological projects will be launched