The fourth round of China-Japan-Korea trilateral Free Trade Agreement (FTA)  talks ended on March 7 in Seoul without much progress. China’s Xinhua reported that the talks dealt with substantive issues relating to tariff reduction, opening service trade and investment. No breakthrough was made on what would be an historic agreement affecting the three dynamic economies. The three account for 20% of global gross domestic product  and 17.5 % of global trade.

Trilateral trade negotiations were first discussed at the 2012 meeting of the Trilateral Summit.  After the nationalization of the Diaoyu/Senkaku islands, the political climate has deteriorated. Continued territorial and historical disputes have only increased tensions and heightened distrust among the parties. Despite a charged and gloomy atmosphere, talks have continued to be held, and some measurable progress has been made. The next round of talks in 2014 is scheduled to be held in China in July.

(Map: Wikipedia Commons)

                    (Taoyuan- Airport.com)

Taiwan has ambitious plans for a new, regional air hub to be named “aerotropolis.” The venue will be Taiwan’s Taoyuan airport which will get a third terminal and see the creation of an industrial park and a pilot free trade zone. South China Morning Post reports that the project will encompass over 7,000 hectares and will be the biggest infrastructure project in 30 years.

The project which has been on hold since 1990 looks like it will now gather momentum. A steady flow of mainland visitors and the influx of tourist brought by the ever-growing budget airline sector has created the need for increased capacity and spurred the development project. However, what really seems to have given the project the green light is agreement by the PRC to give real consideration to the feasibility of transit stops for Chinese airlines heading to other destinations such as New Zealand, Australia and the U.S. Such transit stops would also relieve pressure from Beijing and Shanghai airports. China’s agreement to study the issue was made in meetings held in Changsha, PRC on February 20-21, 2014 held for the purpose of better implementing existing accords between the two countries.

Want China Times reported that on February 16, 2014, Taiwan’s president, Ma Ying-jeou visited the port of Taiwan and spoke of plans for a smart distribution system to revolutionize business and support the pilot free trade zones

                      by David Parmer

If you haven’t heard of China’s Internet giant Tencent, and don’t recognize its winking penguin, then you probably don’t live in China or follow IT very closely. But for millions of Chinese (and now increasingly those in other countries) Tencent is their Internet  company of choice for one service or another. Some sources list Tencent as the world’s fourth largest Internet player after Google, Amazon, and eBay. It is certainly in the top 10. 

And the question seems to be not what Tencent does, but what it doesn’t do. The answer to that is: not much. Tencent is ubiquitous-if there is an Internet service that can be provided Tencent provides it, has provided it, or will shortly provide it.

These include:

• Instant messaging
• Online media
• Wireless Interned value added services
• e-commerce
• Online advertising
• Street views
• Payment solutions
• Smart TV
• Virtual currency

 The company was founded in 1998 by Huateng “Pony” Ma, a 1993 graduate of Shenzhen University. The story goes that Ma saw AOL messaging, and realized that there was no such service in China and created the first Chinese language messaging service, QQ.  The service was hugely successful and lead the company into online gaming, a revenue spinner that still provides a large portion of the company’s income. The timeline below shows Tencent’s steady and profitable growth in a few short years.

Tencent has gone from success to success. In January 2011 Tencent, sensing the industry-wide move to mobile devices, launched “Weixin” a mobile voice and text application. It added international support and changed the name to We Chat in 2012.

The application can be used to send and receive text messages, send and receive voice messages, photos and group messages. GPS enables users to find other users, and QR codes can be used to find friends.  In 2014, Tencent will offer Smart TV which will permit program selection and controls, offer payment solutions and let users control TV with their WeChat application. 

 So what does Tencent do? As you can see, when it comes to the Internet, almost everything. And along the way, it has made Pony Ma one of the richest men in China.

  

Tencent website English   http://www.tencent.com/en-us/

iTunes Store WeChat (Free) https://itunes.apple.com/us/app/wechat/id414478124?mt=8

CNN: Tencent China’s Hottest Tech Company:http://money.cnn.com/2014/01/08/technology/tencent/

Photo: TechRice.com

                                            

                                    (Starbucks Coffee, Shibuya Tokyo- Wikimedia)

 If you asked people in other parts of the world what drink Asians favor most, the answer would probably be “tea.” And traditionally, that has been true. But coffee has been making inroads in Asia for more than 100 years. And these days coffee culture has spread  across the region from Tokyo to Jakarta, to Seoul, and Sydney. The story these days is about Asians growing and consuming coffee in record amounts. In 2014 a unique situation exists, where supply approaches over-supply, yet demand continues to increase. By country, the Asian coffee scene looks like this.

Korea: Korea’s coffee industry has doubled over the last five years with an explosion in import and consumption, making it the largest coffee market in the world.

Vietnam: is ranked by Bloomberg as #2 world coffee producer by volume and #1 producer of the Robusta variety used for instant coffee beverages.

Indonesia: is the #4 world coffee producer after Vietnam. 10% of its crop is premium Arabica variety. Indonesian coffee has an excellent reputation.

India: is listed by Bloomberg as the #5 coffee producer. It now accounts for 25% of Asian coffee. 50% of its output is the Arabica variety.

Philippines: The Philippines produces mostly the Robusta variety and is now the third largest Asian producer and # 16 among world coffee providers.

China: While coffee drinking continues to increase in China among the young, coffee production in China remains limited to Yunan in southwest China and to areas along the Vietnam border.

Australia: Is said to import in excess of 50,000 tons of coffee, while it produces 600 tons, 50% of which is exported.

Japan: while Japan does not produce coffee, the coffee business is booming. Japan: has a mature coffee culture dating back to the end of WWII. Japanese are great consumers of instant coffee and single serving coffee.

(Sources: Costa Rica Gourmet Coffee, Bloomberg, Coffee Expo Seoul 2014)

 (DPP Chair Su Tseng-chang/VOA)

by David Parmer

Taiwan’s opposition Democratic Progressive Party (DPP) issued its 2014 China Policy Review on January 9. The DPP’s  China Affairs Department released the document with a forward by DPP chair SuTseng-cheng. Those looking for hints of change in policy or emphasis will have to look elsewhere-the DPP remains staunch in its fundamental principles and is unequivocal in its assertions.

The DPP, which was founded in 1986, and is Taiwan’s first opposition party, is known for its strong human rights stance, its concern with social welfare, its belief in the importance of relations with the U.S., Japan and Europe, and its unwavering commitment to Taiwan independence.

The report covers four areas:

• Political relations
• Economic strategy
• Freedom and human rights
• National defense

The report echoes the party platform. A key point is that the people’s wishes are the main concern in cross strait relations. And the DPP report asserts:

“An examination of the positions and attitudes of the Taiwanese people towards China policy reveals that their national identity and preferences for independence versus unification have solidified.”

 This point is repeated throughout the document and is paired with the idea that cross-strait exchanges must not undermine Taiwan’s sovereignty and security. A call was also made for more transparency in cross strait relations as well as more emphasis on democracy, freedom and human rights.

 The report states that Taiwan faces three problems: globalization, regional economic integration and the economic rise of China. Mention is also made of the negative effects on the Taiwan economy caused by economic relations with China. And finally to ensure Taiwan’s continued security, the DPP report advocates increasing the defense budget.

 DPP 2014 China Policy Review: http://www.scribd.com/doc/198143800/DPP-2014-China-Policy-Review-Summary-Report

 

 

 

 

 

The 22^nd Olympic winter games will be held in Sochi, Russia from February 7-23. There will be 98 events for 15 winter sports. 2500 athletes from 85 countries will participate and some 25000 volunteers will assist. This is Russian’s second time to hold the Olympics.

Organizers have published their objectives for the games:

“The games of Sochi are going to be highly innovative Olympic and Paralympic winter games that will express the spirit of modern Russia and bring with them sustainable, positive change for the whole country.” (Sochi 2014 website)

 Asian countries have high hopes for the games. These include:

                                             Japan

Japan will send 100 athletes and hopes to wind its first gold medal in eight years. In Vancouver 2010 Japan took home three silver and two bronze medals.

                                            China

China will send 130 athletes to Sochi to participate in acrobatic events on ice, short track speed skating, freestyle skating and snowboarding. China’s chances at the short track speed skating gold are dim now that star Wang Meng will miss Sochi 2014 with an ankle injury. China won five gold, two silver and four bronze medals at the 2010 Vancouver games.

                                             Republic of Korea

Korea will send 64 athletes and 49 officials to Sochi. This is the highest ever for Korea, which will be represented in every sport but ice hockey. Korea has finished in the top 10 medal winning countries in the past six winter games, and aims for four gold medals this time. 

                                          Chinese Taipei

Chinese Taipei (Taiwan) will be represented by two male athletes, one in short track speed skating and one in speed skating.

                                                   India

 India will be represented three athletes, including Shiva Keshavan in luge. Indian athletes will be entered as independents because of a dispute between the IOA and IOC.

                                               Tajikistan

Tajikistan will enter one athlete in alpine skii

                                              Kazakhstan

 Kazakhstan will be represented by athletes in 10 sports.

 

                                           Eastern China December 2013 (Photo: NASA)

                                                       by David Parmer

This week, Asian Development Bank president Takehiko Nakao urged Japan and China to put aside their difference and find common ground in protecting the environment. Channel News Asia reported on Nakao’s remarks at the Asian Financial Forum meeting held in Hong Kong on 13-14 January 2014. Nakao said that Japan has much experience in dealing with its own pollution problems in the 1970s and 1980s  and could share such expertise. Recent political tensions, particularly the Diaoyu/Senkaku Islands problem have overshadowed the environmental problems of the region, which in the long run could be far more devastating than increased territorial tensions.

One of the biggest causes of regional pollution is the burning of coal for energy. China is not alone here as Mongolia and The Republic of Korea also burn coal.

China has taken and continues to take measures to curb pollution which has reached record, “off the charts” levels in Beijing this year. Counter-measures include setting limits on the burning of coal, regulating automobile ownership and use, and clean energy plants. One of the more promising initiatives is the Chinese government’s requirements for the online reporting of air emissions, waste water and noise levels by major industries.

However there is real concern in Japan that air containing hazardous 2.5 fine particles could arrive there by spring 2015.

For the sake of peoples’ health, commerce and the sustainability of regional resources it is imperative that real cooperation among the stakeholders in the region take place as soon as possible, and that workable long-term solutions are planned and put into effect.