China, the rescue of Portugal

For more than a decade that a Chinese president did not visit Portugal. It has done this weekend, Hu Jintao. He came with deeper pockets with which business has closed major agreements with China wants trade with Portugal, currently in about 2,400 million per year, is seen doubled to 2015 and the China Economy. and the China Economy.
The highest Portuguese authorities have welcomed Hu and his large party with all the pomp and circumstance, diverting even a demonstration organized by Amnesty International to defend human rights in China, banned in Belém, first stop the Chinese president. It had nothing to tarnish a visit from the standpoint of economics and finance, as well as political, could represent a great achievement for Portugal and the China Economy..
During the days prior to arrival Jintao, the Lusa press speculated that China bought part of sovereign debt, which is why Finance Minister Fernando Teixeira dos Santos has been in the two meetings held with Hu Jintao President Cavaco Silva and Prime Minister Jose Socrates.

China and Portugal Economy

Although there is nothing concrete yet, in his speech, no right to question-this Sunday, President Jintao said his country "is willing to support through concrete action the Portuguese efforts to minimize the impact of financial crisis in country and the China Economy.. "

In return, China is in Portugal, as well as a potential trading partner, a gateway to other markets that interest you, not just the south of Europe, which has expressed interest in the logistics platform of the port of Sines, but also in Angola and Brazil, two countries of Portuguese language and with which Portugal maintains a close collaboration.

In fact, thirteen cooperation agreements signed today between the two countries, power and China's EDP lusas ICC has established a memorandum of cooperation to carry out joint projects on renewable energy in Asia, Africa, Europe and Brazil and the China Economy.

China Economy

For its part, the Industrial and Commercial Bank, the largest Chinese financial institution, has negotiated its entry into the capital of the Portuguese Central Bank (BCP). And the telecommunications company Lusa Portugal Telecom and China's Huawei has established the principles of a strategic partnership to develop next-generation services.
For its part, Portugal is in this new strategic partnership with China not only an opportunity to expand their exports, which have grown over 60% last year, the Asian giant, but more importantly, to launch a new international markets message of peace, thanks to the Chinese government's interest in buying part of its sovereign debt, as it did before with Spain and Greece and the China Economy..

The investor optimism in the best interests selective in the plazas of Asia

The good economic signs in Australia, with growth of 2.7 percent in 2009 and renewed optimism about the bailout of the economy of Greece contributed to the closing rally today in most parks in Southeast Asia, where only the Malaysian and Indonesian places closed lower.

In Vietnam, the investor market in Ho Chi Minh closed with gains of 1.26 percent in the selective VNIndex, adding 6.32 to 507.32 integers.

In Singapore, the stock of the city-state made a profit of 0.38 percent Straits Times index added 10.59 points to close at 2782.79.
In Thailand, rising in the areas of property and mineral resources encouraged the rise of 0.25 percent or 1.85 points in the SET index of the stock market in Bangkok, which ended its session at 735.04 integers.

In the Philippines, a session with increases in all sectors except the financial led the PSE index of the Manila Stock Exchange to move 7.40 units or 0.24 percent to close at 3069.29 integers.

In Malaysia, the collection and the expected benefits to the central bank's meeting on local interest rates dragged the index down to the square KLCI Kuala Lumpur, which yielded 1.97 units or 0.15 percent to close at 1286.10 integers.
In Indonesia, sales of securities of telecommunications and profit taking in mining led the index into negative territory JCI Jakarta stock market, which fell 9.50 points, equivalent to 0.37 percent, to close at 2567.09 integers.

As for the currencies of the region, their contributions dollar per unit were as follows: 18,544.00 Vietnamese Dong Philippine Peso 9277.00 Indonesian Rupiah 46.02 Malaysian Ringit 32.97 Thai Baht 3.37 Singapore Dollar 1.40

China seeks to curb industrial overcapacity

China pledged on Monday to halt its industrial overcapacity to maintain a stable rapid growth of its economy and avoid losing that investment. But the success of the initiative is not at all sure as local authorities, which are judged by their performance in promoting growth and employment, usually ignore orders from Beijing.
"In the short term, inspection and supervision will be very hard," said Ken Peng, economist at Citigroup in Beijing.
"The authorities are concerned about overinvestment. But it is not unanimous. The implementation depends on local authorities and will not be easy," he said.
The Government hopes to halt the expansion of six sectors, by prohibiting the approval of new investment and leaving them without financing.
The sectors considered are steel production, cement, chemical derivatives of carbon, polysilicon, flat glass and wind energy equipment, according to a statement released by 10 ministries headed by the National Development and Reform.
China ordered banks not to finance projects in these sectors that do not meet the guidelines established by the Government, the ministries said.
Nor will investors meet unauthorized funds for expansion through bonds, short-term notes, medium-term notes, convertible bonds, public offerings and secondary equity sales.

The communique states that local governments must pay attention to signs of overcapacity in the fields of aluminum production, shipbuilding and processing of soybeans, but said that these industries would not be subjected to the same restrictions.

"Many sectors are still reporting serious problems of overcapacity and redundant construction, and some problems are even worse," the ministries.
Besides generating a drop in prices and profits, overcapacity incentive for manufacturers to sell their excess production abroad. As a result, increase trade tensions with U.S. steel and tires and Europe, in shoes.
The statement, which adds to a policy set last month by the State Council-designated name given to China's cabinet, said that overcapacity control is a priority in the restructuring of the economy.
"The Chinese economy is currently at a critical stage of stabilization and recovery," the statement said.

LOCAL OPPOSITION

The guidelines reflect the concern that much of the fiscal stimulus package of 4 billion yuan (585,000 million) and the resurgence of bank credit which accompanied it would stop going to the industrial sector.The Government intended that the money should go to infrastructure efforts, affordable housing, rural development, technology upgrades and strengthening the social safety net.But these drastic measures reflect the confidence that Beijing can now pay attention to its deep-rooted structural problems such as overcapacity and heavy dependence on investment, now that the economy has seen the worst of the global crisis.
Xiong Bilin, a senior commission official, told a press conference that China will have no difficulty in achieving the government target of growth of Gross Domestic Product (GDP) of 8 percent.

In recent years, the commission has repeatedly taken steps to control overcapacity in a number of sectors, including the steel, cement and metal foundries.But Xiong admitted the difficulties of the agency to meet local opposition.

China, the world's largest producer, has a capacity to 600 million tonnes of steel a year, but 58 million of that total has been installed without permission from Beijing, said."We are asking local governments to create a good environment for market development. We're not asking specifically to close this or that," he added.

China denounces U.S. before the WTO by Chinese tires Tariffs

China denounced the United States today at the World Trade Organization (WTO) would be "unfair" tariffs imposed by Washington on imports of Chinese tires.

Said today the Chinese mission to the multilateral trade body, Beijing regards the new U.S. measures as "abusive practices" that "go against WTO rules.

The U.S. president, Barack Obama, signed a decree last Friday that includes a rate increase import of tires for passenger cars and light vehicles from China.

This measure, which will run three years and aims to protect U.S. companies in this sector, is viewed by China as a "grave" of protectionism that "weakens" the economic relations between the two countries.

The complaint filed by China opened a consultation process between the two parties that, if after 60 days will not reach an agreement, gives way to the Dispute Settlement Body of the WTO, which is responsible for the matter.

China said Saturday that "hopes that all parties understand our determination

China gives more signs of recovery and encourages investors

The Chinese authorities reported that industrial production, investment and credit in this country took power in August. Only exports plummeted 23.4%. The data generated optimism

Industrial production, investment and credit in China took power in August, suggesting that economic recovery is underway, but it is unlikely that Beijing abruptly reversed his economic policies for fear of undermining the recovery.

The only blemish on the August data was trade. Exports fell by 23.4 percent over the previous year, a steeper drop than expected and accelerating since the contraction of 23 percent in July.

Industrial production rose in August to a maximum of 12 months by 12.3 percent over the previous year, up from 10.8 percent in July and exceeding expectations of an advance of 12 percent, as shown Friday data from the National Agency of Statistics.

The annual growth of investment in urban fixed assets intended to also accelerated, reaching 33 percent during the first eight months, climbing from 32.9 percent in January-July period and above expectations of 32 , 5 percent.

"The data show that China's economy continues to grow globally," said Rob Subbaraman, chief Asia economist at Nomura in Hong Kong.

"There is a very positive configuration data: on the side of the activity and there is a further strengthening in the aspect of inflation is still negative inflation, so do not think there's a real urgency of an aggressive adjustment policy," said Subbaraman .

Despite signs of strength, analysts expect that policy makers proceed with caution to avoid a hasty abandonment of their control over monetary and fiscal policy, following a series of assurances from Beijing that will not cut too early measures stimulus.

The figures for money supply and credit growth surprised by his rise, potentially offering the consolation that credit flows will not be closed abruptly.