China's
plan to alleviate poverty
China's new cabinet has put poverty
alleviations at the top of its agenda, but experts said that
it faces an uphill battle in trying to lift millions out of
their desperate plight. state media said recently.
Of highest priority is helping
the 28 million people Chaina defines as living in absolute poverty'
meaning they do not have enough food or clothes, the China Daily
quotes Lu Feijie, a senior cabinet, or State Council, official,
as saying.
"Those living in absolute poverty
are the first to be helped", said Lu., vice-chairman of the
State Council Leading Group for Poverty Reduction and Development.
The government will also focus
on improving the conditions of 58 million other living just
above China's definition of the poverty line, as many of these
people can easily fall back into poverty especially if stuck
by natural disaster, the paper reported.
China's poverty threshold is much
lower than that of the UN definition. In China, people living
on less than 1.72 Yuan ($0.20) a day or 627 Yuan a year, are
considered to be in poverty.
FDI
in China up 51 per cent
China said recently that foreign
direct investment (FDI) jumped 51.03 per cent in the first four
months of 2003 to 17.82 billion dollars, although April's overseas
investment fell off from previous levels.
Contracted foreign investment,
an indicator of future business plan, rose 50.13 per cent from
the year before to 30.53 billion dollars, the Ministry of Commerce
said on its website.
In April, FDI increased at a slower
rate of 37.24 per cent to 4.73 billion dollars, while cotracted
FDI in the month rose 27.18 per cent to 7.55 billion dollars,
the ministry said.
China
to open FDI in travel industry
In a bid to help boost an industry
still reeling from the impact of Sever Acute Respiratory Syndrome
(SARS), China will allow foreign investors to set up wholly-owned
travel agencies in the country, more than two years ahead of
schedule, state press reported recently.
The China National Tourism Administration
and the Ministry of Commerce issued a provisional rule recently
lifting a longstanding ban on foreign-owned or controlled travel
agencies in China, the China Daily reported.
The new regulations, which come
two tow-and-a-half years ahead of schedule agreed with the World
Trade Organization (WTO), will take effect on July 14, China
joined the global trade group in December of 2001.
Japan's
trade surplus up
Japan's trade surplus with the
rest of Asia in April continued to grow, dispelling, at least
for now, concerns the outbreak of SARS has dampened demand for
Japanese exports, the government said recently.
The surplus jumped by 31.2 per
cent to 415.8 billion yen ($3.5 billion), as exports grew by
10.3 per cent to 2.09 trillion yen whine imports rose by 6.1
per cent to 1.67 trillion yen, the finance ministry said. Officials
saw no clear signs that Sever Acute Respiratory Syndrome (SARS)
has slowed Asia-bound exports, including shipments to the fast-growing
Chinese market.
Exports to China surged by 39.5
per cent, powered by demand for semiconductors, electronics
parts, general machinery and chemical products, the ministry
said. "It is hard to confirm the impact of SARS on Japanese
exports to the Asian region." a finance ministry official said,
"There are reports from Japanese firms operating in Asia who
are refraining from starting new production and closing factories
but they are building up inventories and accelerating output."
Japan's industrial output falls
Japan's industrial output in April
fell 1.2 percent from the previous month, the government said
in a preliminary report adding that it was keeping a cautious
outlook for future production levels despite a modest rise expected
for May and June.
The April data followed a revised
0.1 percent rise in March, the Ministry of Economy, Trade and
industry said. The consensus forecast among private sector economists
was that April industrial output would fall 1.0 percent month-on-month,
within a range of estimates between a decline of 0.1 percent
and 1.5 percent.
The fall in April was blamed on
slower activity, in particular in the general machinery sector
that makes semiconductors and printing machines, the ministry
said. "Production is showing a weakening trend", the ministry
said in a statement.
The effect of the outbreak of Severe
Acute Respiratory Syndrome and the war in Iraq did not have
a significant pact on the latest data, the minister said. "Companies
are having difficulties achieving their production targets,"
said Kazuaki Hasegawa, a ministry official.
'Since around the end of last year,
we have seen the industrial production data slide, he said.
The reason is that domestic demand in Japan has remained weak,
said Takeshi Minami, economist at UFJ Tsubasa Research Institute.
South
Korean economy grows
South Korea's economy grew 3.7
per cent year-on-year during the first quarter to March, slightly
weaker than expected, the central Bank of Korea (BoK) said.
The BoK attributed the slow growth
rate to sluggish private consumption and corporate in vestment
amid economic uncertainty due to the crisis over North Korea's
suspected nuclear weapons programmes and the spreading Severe
Acute Respiratory Syndrome (SARS) virus.
The BoK, who had projected 3.9
per cent gross domestice product (GDP) growth for the first
quarter, said it has no plans to cut annual growth forecast
of 4.1 per cent.
South
Korea posts trade surplus
South Korea posted the year's first
monthly trade surplus in April boosted by stable oil prices
and brisk shipments of automobiles, handsets and ships, government
data showed recently
The trade balance turned to a surplus
of $1.01 billion in April from a deficit of $514 million in
March, said the ministry of commerce, industry and energy.
Exports climbed by 20.3 per cent
year-on-year to an all-time high of $15.86 billion in April,
while imports rose by 18.2 per cent to $14.85 billion. Shipments
of semiconductors, computers and textiles declined in April.
Exports of wireless handsets surged
by 44.9 per cent year-on-year to $1.34 billion, automobiles
by 39.8 per cent to $1.69 billion, and ships by 81.2 per cent
to $1.27 billion. For the first fourth months to April South
Korea posted a trade deficit of $82 million.
Malaysia's
growth Could beat
Malaysian Prime Minister Mahathir
Mohamad said recently he is confident Malaysia's economic growth
cold surpass te government's official forcast of 4.5 percent
for 2003.
'The government is confident the
packsge measures can once more regenerate economic growth to
exceed the projected 4.5 per cent," he was quoted as saying
by the official Bernama news agency.
The central bank has cut its official
gross domestic product (GDP) growth forecast to 4.5 percent
this year from previous estimates of 6.o-6.5 percent due to
the Iraq war and the out Of the' deadly Severe Acute Respiratory
Syndrome (SARS) virus.
The government announced a 7.3
billion ringgit (1.92 billion US dollars) economic stimulus
package on May 21. The package cut interest rates, set up a
one billion ringgit relief fund and gave tax breaks to the tourism
sector, liberalised foreign investment rules and offered loan
programs for troubled traders.
