Intelligence from Asia

Items

• China: Show of military force masks political divisions

  26 May 2010 Hits: 2

  AsiaInt Political and Strategic Review, August 2004
  2,345 words

  On 1 August China's People's Liberation Army (PLA) marked the 77th anniversary of its founding with the customary processions, parades, and drills. These were the latest in a series of events designed to demonstrate China's military power; the principle intended audience being Taiwan and the US. One implication is that Beijing is preparing for conflict between the three - and demonstrating its determination in the long run to challenge the US's military superiority in Asia. But the various army exercises of the past month mask a dilemma over policymaking in China which suggests the future of its military and strategic planning is less clear cut_

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  http://www.asiaint.com/arl/arl4153.asp

• China: Caution advised after second-quarter slowdown

  26 May 2010 Hits: 1

  AsiaInt Weekly Alert, 23 July 2004
  660 words

  China's State Statistical Bureau recently announced that the economy grew 9.6% year-on-year in the second quarter, slower than the 9.8% rise in the January-March period, suggesting that various measures taken by the government to cool economic growth in the first half of the year have been successful. But Beijing's policymakers are keeping their guard up, especially as the true impact of these measures is still disguised by the low base for comparison last year when the Sars epidemic was having its greatest effect_

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  http://www.asiaint.com/arl/arl4096.asp
  

• Uncertainty reigns over Asia's interest-rate decisions

  26 May 2010 Hits: 1

  AsiaInt Economic Intelligence Review, July 2004
  1,211 words

  The US Federal Reserve's decision on 30 June to raise interest rates from a 46-year low of 1% to 1.25% is thought to mark the beginning of a period of monetary tightening. The global reaction has been muted, largely because the move had been flagged for some months, and the Fed was careful to announce that further rises would be gradual. But there has been intense speculation as to the response in Asia, mostly because the region's various central banks have a less-than-perfect record in managing market expectations. But a trend of rising inflation through most of Asia would suggest a round of monetary tightening is on the cards_

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  http://www.asiaint.com/arl/arl4021.asp

• FDI flows to non-Japan Asia: Patterns and trends

  26 May 2010 Hits: 2

  p>AsiaInt Economic Intelligence Review, July 2004
  2,258 words

  Foreign direct investment (FDI) is an important part of cross-border flows of capital. It includes the purchase of physical assets, mergers and acquisitions, joint ventures, investment in plant and equipment, the purchase of real estate, and capital transfers to foreign owned businesses. It does not include portfolio investment into stocks and bonds issued by governments, public sector agencies, or commercial enterprises in the private or the public sector. Any consideration of FDI in Non-Japan Asia will highlight how difficult it is to make meaningful generalizations about the various economies in the region, but certain trends can be identified_

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  http://www.asiaint.com/arl/arl4022.asp 

• Taiwan: Preparing for a second-half slowdown

  26 May 2010 Hits: 1

  AsiaInt Economic Intelligence Review, July 2004
  2,041 words

  Taiwan's Council for Economic Planning and Development, which operates under the Executive Yuan (cabinet), has long used a colour-coding system to illustrate the health of the economy according to a composite index of leading economic indicators. A "blue light" stands for recession; yellow-blue suggests the economy is cooling; green means it is stable; yellow-red indicates expansion; and red warns of overheating. After five months showing a healthy yellow-red, in May the index flashed red for the first time since November 1994. But instead of adjusting their plans to cope with an overheating economy, Taiwan's policymakers are preparing for a soft landing in the second half of 2004_

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  http://www.asiaint.com/arl/arl4023.asp