Tag Archives: United States

India to overtake Japan in PPP by 2025: Japan’s Central Bank governor

India is growing with great pace of development and the national leadership is concentrating to put the sectors such as agriculture and power on the line of development now. The next target for India is to achieve 10 percent growth rate. Now, a new report says that Indian economy is all set to overtake the Japanese economy by the year 2025. In this year, India would rank at third place in the world in terms of purchasing power parity. The top two other countries will be the United States and China ranks as first and second place in the list. Bank of Japan governor Toshihiko Fukui has predicted that India would overtake Japan and will be the third country with greatest purchasing power parity. Toshihiko Fukui, governor Japan’ central bank, has insisted on Indian government that India should loosen restrictions on capital flows in India. Further, India should develop domestic bond markets for integrating Indian economy with the global economy. Fukui said that everyone in the world now is recognizing India’s large and speckled influence on the world. If Japan would extend the current growth rate, India’s purchasing power parity would go beyond Japan’s PPP by 2025. At the same time, Fukui also said that India should take steps to reduce the environmental damages and should work to boost energy efficiency for curbing worldwide high-energy prices. Read

China agrees to improve food safety regulations

After receiving severe criticism for tainted food and counterfeit drugs export, China has decided to harsh on its food and drug safety regulations. State Council, the country’s highest administrative body announced to introduce new nationwide inspections for its exported stuff and moving quickly to bulldoze the sale of dangerous food and medicine. State council meddles in nation’s export policy after facing ignominy as alleges that China’s exporting medicines and packed food are raising health hazardous. US, Nicaragua and Panama pose concern and warn consumers to avoid Chinese food products as diethylene glycol was found in Chinese toothpaste. After western countries apprehension, Chinese strong export base Singapore has joined the forces and to take action against Chinese toothpaste imports found to contain a chemical contained in anti-freeze. The chemical, diethylene glycol, has been blamed for the deaths of at least 50 people in Panama last year. Although, US and other dejected nations are imposing ban on Chinese counterfeit food and drugs yet Beijing is strongly defended the quality and safety of its food and drug exports, and even denied that the toothpaste it exports is unsafe. Chinese General Administration of Quality Supervision, Inspection and Quarantine declare that its products are safe and scientific calculation tells the low levels of the chemical considers safe for consumption. But the mounting pressure from regulators in the United States, Europe and other parts of the world, and international food companies force China to rethink on its existing rules and pushing State council for more forceful response to the crisis. Chinese authority has released its decision on a government Web site, but didn’t conduct any news conference to announce the changes. Government new program says that by 2010 the government plans to place new controls on food and drug imports and exports, to step up random testing on medicines and have inspection information on 90 percent of all food products. Apart from it there will be safety checks on a large majority of food makers and for regulators to crack down on the sale of counterfeit drugs and medical devices. The government did not indicate if it would provide more money for the efforts or which agencies would carry out the bulk of the functions. New Chinese regulations suggest that china is serious on its effort to soothe the crises and ready to improve nation’s image, which were derogated by the alleged tainted supply of foods and drugs. But the challenges for China are massive because its regulatory system is weak and enforcement is particularly difficult and now, food regulators in Europe, Japan and the United States, as well as other international organizations, are lobbying China to act quickly to strengthen its controls on its food and drug exports. Image: wkrn Via: IHT

China plans to remove tax rebates on exports

Chinese government has announced to eliminate the tax rebates for more than 2,800 export items from July 1 – in an effort to slow the growth of its huge trade surplus amid rising threats of disciplinary action by U.S. lawmakers. The affected items account for 37 percent of all export products. Export tax rebates for 553 “highly energy-consuming and resource-intensive” products, such as cement, fertilizer and non-ferrous metals, will be eliminated. Rebates for another 2,268 products, described as “easy to trigger trade frictions”, will be slashed from 8-17 percent to 5-11 percent. They include garments, toys, steel products and motorcycles. Chinese authorities said that this step has been taken to improve control of the overly fast growth of foreign trade exports. The government has imposed a string of measures to slow the growth of both China’s trade surplus and resources- and energy-intensive industries such as steel production. They included cutting or eliminating value-added tax rebates given to promote exports. Despite all these measures the country’s trade surplus in May increases to its record, up 73 percent compared to the same month last year at $22.5 billion. The mounting trade surplus has aggravated problems as trade conflicts with other countries and pressures on China to revalue Yuan, as well as excessive liquidity at home. Beijing has promised to narrow its trade gap, but economists say multibillion-dollar surpluses are likely to continue because of strong foreign demand for low-cost Chinese manufactured goods. The United States alleges that china has undervalued its currency, which is giving Chinese exporters an unfair advantage to keep its produced items undervalue. U.S. has asked china to increase its currency’s value, whereas American lawmakers are in a favor to impose punitive tariffs on Chinese goods. Image Via: usatoday

China’s trade surplus mounts to a record high

China’s trade surplus surged 85.5 percent in June, to a monthly record of $26.91 billion, potentially heightening tensions with the United States and Europe on Yuan’s market value. Exports for June jumped to $103.27 billion, whereas imports were $76.36 billion. For the first six month of the year, the country’s trade surplus was soar to record $112.53 billion. Experts allege that China’s trade surplus soared due to country’s new curbs on exports, which inevitably came under more global pressure as the surplus ballooned throughout the rest of the year. China’s top economic planners predicts that the trade surplus could cross $250-300 billion in 2007, up from a record $177.5 billion last year. The trade surplus has been a constant source of friction with its major trading partners, mainly the United States and the European Union. China is regularly accused of keeping Yuan artificially low, which helped to make domestic goods cheaper and imported articles expensive, providing an unfair competitive edge to exporters. Goldman Sachs economist Hong Liang said: This level of trade surplus is unprecedented for China or any other major economy in the world, this again highlights the ineffectiveness of the policy tinkering that has so far failed to tackle the root cause of China’s bloating trade surplus: the significantly undervalued currency. America is continuously alleging China for unnecessary manipulating its currency and pressing Chinese lawmakers to let the Yuan free in the market. Some U.S. lawmakers suggest that if country fails to do so than legislation should impose punitive tariffs or other controls on Chinese imports. Image Source