South Korean Exports Fall by Record, China Manufacturing Slumps http://www.bloomberg.com/apps/news?pid=20601068&sid=aJ837GD87Zqk&refer=home
Feb. 2 (Bloomberg) -- South Korean exports tumbled by a record in January and Chinese manufacturing contracted as the global recession sent growth sliding in export-driven economies across Asia. South Korea’s shipments fell 32.8 percent from a year earlier, the Ministry of Knowledge Economy said. Manufacturing in China shrank for a sixth month, the CLSA China Purchasing Managers’ Index showed. Plunging export demand is dragging down economies across Asia and the Pacific, where Japan and Hong Kong are already in recessions and Taiwan, South Korea and Australia are getting closer. South Korean steelmaker Posco will extend production cuts and Rio Tinto Group, the biggest iron-ore miner in Australia, may sell shares to raise cash after commodity prices plummeted. “Things are getting worse as the global recession spills over to China and other emerging economies,” said Lee Sang Jae, an economist at Hyundai Securities Co. in Seoul. Japan’s factory output slumped by a record in December from November, the government said last week, and Australia’s manufacturing contracted for an eighth month in January, a report showed today. Australia faces a “collapse in government revenues,” according to Prime Minister Kevin Rudd, as the global and domestic economies slow. The MSCI Asia-Pacific Index fell 2.1 percent as of 4:10 p.m. in Tokyo, extending its decline to 9 percent this year. Worst on Record South Korea’s shipments fell by the most since figures were first compiled in 1957, and at almost twice the pace of December’s decline. The trade report is among the region’s first economic releases for January. “An outright recession is inevitable,” said Kwon Young Sun, an economist at Nomura International Ltd. in Hong Kong. “This is an early indicator for the region, and the drop suggests exports in Asia won’t be good.” The Chinese purchasing managers’ index rose to a seasonally adjusted 42.2 from 41.2 in December, CLSA Asia-Pacific Markets said today. A reading below 50 shows a contraction. The Chinese economy will “likely get much worse before getting better,” said Wang Qing, Hong Kong-based chief China economist at Morgan Stanley. Chinese manufacturers shed jobs last month at the fastest pace since the index began in 2004, the CLSA survey showed. About 20 million migrant workers have lost their jobs because of the nation’s economic slowdown, Chen Xiwen, a senior rural planning official said at a briefing in Beijing today. Boosting Growth China is considering extra measures to boost growth, Premier Wen Jiabao said in an interview with the Financial Times, published today. While declining to explicitly rule out a devaluation of the yuan, he said that the government intended to keep the currency stable at a balanced and reasonable level. Policy makers have stalled gains against the dollar since mid-July and U.S. Treasury Secretary Timothy Geithner said last month that President Barack Obama believes China is “manipulating its currency.” The nation is rolling out a 4 trillion yuan ($585 billion) economic stimulus package. It has also lowered its key lending rate five times since September, pressured state-owned banks to increase lending, reduced export taxes and agreed to provide support for 10 industries, from steel to autos. China’s exports fell by the most since 1999 in December and economic growth cooled to 6.8 percent in the fourth quarter, the weakest pace in seven years, from 9 percent in the third. On 2 feb, 14:18, "[email protected]" <[email protected]> wrote: > http://news.xinhuanet.com/english/2009-02/01/content_10746396.htm > > BEIJING, Feb. 1 (Xinhua) -- China's government Sunday warned 2009 will > be "possibly the toughest year" since the turn of the century in terms > of securing economic development and consolidating the "sound > development momentum" in agriculture and rural areas. > > The lingering global financial crisis and the slowdown of the > world economy had exerted an increasingly negative impact on the > Chinese economy, said the first document of the year issued jointly by > the State Council and the Central Committee of the Communist Party of > China. > > "The development of agriculture and rural areas in 2009 is of > special significance," it said. > > "The biggest potential for boosting domestic demand lies in rural > areas; the foundation for securing steady and relative fast economic > growth is based upon agriculture; the toughest work of securing and > improving people's livelihoods stays with farmers." > > In the document, the sixth of its kind to address rural problems > since 2004, the government urged authorities to take resolute measures > to avoid declining grain production and to ensure the steady expansion > of agriculture and rural stability. > > MORE FISCAL INPUT > > The document promised increased government input. > > This year's budget for agriculture and rural development is to be > disclosed at the annual national legislative meeting scheduled in > March, but the document said more investment would come from fixed > assets investment, treasury bond issues and revenue from higher land > use taxes. > > Last year, the budgeted investment in agriculture and rural > development grew 37.9 percent year-on-year to 595.55 billion yuan. > > As of 2009, capital-stretched county governments in central and > western areas would no longer provide counterpart funds for public > utility construction bankrolled by central finance involving ecology, > reservoir renovation, potable water supply and irrigation. > > Government-sponsored investment corporations and industrial > development funds for agriculture could be established when conditions > were mature, it said. > > Subsidies would be extended to cover not only all farmers who grow > rice, wheat, corn and cotton this year, but also some who plant rape > and soybeans. Purchases of energy-efficient machinery by farmers and > stock-breeders would also be subsidized. > > To improve the scale and quality of livestock and aquatic > stockbreeding, the government would also extend credit support to > breeding farms with standardized sanitation facilities. Dairy cattle > production bases would receive more fiscal input for the construction > of standardized milk collection stations. > > RURAL EMPLOYMENT > > The government aims to roll out social security schemes for rural > residents and strengthen the protection of farmers' land rights and > migrant rural workers' employment rights. > > Millions of rural workers lost their jobs and returned home from > coastal provinces, exacerbating the severe unemployment in rural > areas. > > The National Bureau of Statistics estimates that about 5 percent > of the 130 million migrant workers have returned to their homes since > late 2008. Other officials said even more migrant workers had gone > home. > > The document urged local and central government departments to > adopt measures to create jobs and increase rural incomes. > > Companies were asked to take on more social responsibilities and > give rural migrant workers more favorable employment treatment. > Flexible employment policies and more training chances were also > encouraged. > > Meanwhile, local government departments should increase investment > to provide favorable tax and fee policies to those who lost jobs in > cities and expect to find new work in their hometowns. > > The government also urged departments to map out basic pension > insurance measures suitable for rural conditions and migrant workers > to ensure their rights. > > Though the premium was yet to be decided, it was clear that rural > residents would only need to pay a small fraction with governments > subsidizing the rest. > > RURAL-URBAN INTEGRATION > > The government vowed to narrow the widening rural-urban economic > gap. > > More efforts would go to developing culture, education, health > care, and other social welfare in rural areas, inhabited by 900 > million people. > > The government would raise teachers' salaries, and subsidize rural > schools and students from poor families. This year, vocational school > students from financially-strained rural households and those in > agricultural majors would be exempted from tuitions fees. > > The document said local governments could increase financial > subsidies to the new rural cooperative health insurance system, and > enhance construction investment in the public health care system. > > Moreover, central and provincial governments would raise the > stipend for rural households to meet the state-designated minimum > subsistence standards. > > MARKET MONITORING > > The government also hoped to strike the balance between farm > produce supply and demand this year to prevent low prices from hurting > farmers' incomes. > > The document said the authorities would closely track local and > overseas farm produce markets and use all possible measures when > necessary to secure the steady growth of rural households' income. > > It urged authorities to "measure the timing and pace" of farm > produce imports and exports to avoid flooding the domestic market with > imports of farm produce and closer communication among governments, > industrial associations and enterprises. > > China would also optimize its market access system this year > inline with the requirements of the World Trade Organization to allow > foreign investment in farm produce and farming materials production. > > The government would modify the regulatory mechanism for farming > produce exports and imports to provide a smooth channel for > governments between different countries, associations, and enterprises > to communicate and resolve problems. > > Governors would continue to be held responsible for grain > production. An evaluation system would be set up to monitor the > performance of authorities in the protection of arable land, water > resources, and macro-economic control in the production and > distribution of grain crops. > > Under the document, different areas are encouraged to take the > advantage of local soil and weather conditions to increase crop > yields. For example, northeast regions and Inner Mongolia would be > encouraged to produce soybeans while the Yangtze River valley would > focus on high quality rape. > > An industrial development plan in terms of oil tree plantations > would also be mapped out as soon as possible, it said. > > UNDERSCORE FARMLAND LEASE, TRANSFER REFORM > > The document reiterated that the government would continue with > and improve the household contract responsibility system that entrusts > the management and production of publicly-owned farmlands to > individual households through long-term contracts. > > It also underscored farmers' rights to transfer their farmland use > rights to others, but farmlands were still of collective ownership, > and the land could be used only for farming. > > No institutions or individuals could interfere with or force the > transfer of the land, it added. > > The government encouraged local authorities to establish > organizations to provide farmers with land transfer information, legal > advice, dispute settlement and other services. > > It also said the government would finish collective forestry > mechanism reform in five years, promoting a household contract system > in the management of collective forestry land and ownership of wood > nationwide. > > HUGE MARKET POTENTIAL > > The government would extend its rural subsidy scheme for home > appliance purchases nationwide in an effort to boost rural consumption > this year. > > It would provide a 13-percent subsidy to all rural buyers of home > appliances, including color TVs, refrigerators, mobile phones, washing > machines and freezers. > > A trial scheme had been conducted in 12 provinces, which had seen > a boost in home appliance sales. > > More items would be added to the list if necessary, said the > document, which called for the expansion of chain stores in rural > areas and better delivery and billing systems. > > It also encouraged local governments to establish rural service > centers to enhance chain store management and strengthen market > supervision. > > China should "especially place priority on tapping the rural > market and developing the countryside" to alleviate the effects of the > global financial crisis, said Vice Premier Wang Qishan last month. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "World-thread" group. 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