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TRADE WARS
Southeast leaders tackle issues buffeting region

Chinese buyers spend 20 billion dollars in Taiwan: report
Taipei (AFP) Oct 29, 2010 - Chinese companies have ordered a record 20 billion US dollars worth of goods from Taiwan this year, and the amount is expected to reach a new peak in 2011, a report said Friday. The 2010 figure already tops last year's 18 billion dollars, Wang Chih-kang, head of the Taiwan External Trade Development Council, was quoted by the Commercial Times as saying. Trade and political ties between the two have grown stronger over the past two years, with Beijing and Taipei signing a key free-trade pact June. Many Chinese buyers are planning shopping trips in 2011, Wang told the paper, adding he expected the result to be a new record next year.

Among this year's key buyers, a delegation from south China's Guangdong province placed a record order of seven billion dollars for products ranging from electronics and textiles to food, Wang said. Another delegation sealed 5.3 billion dollars worth of contracts to buy flat panels -- used in the manufacture of televisions and monitors -- from Taiwanese firms. The council's officials were not immediately available for comment. China still regards Taiwan part of its territory awaiting to be reunified by force if necessary, even though the island has ruled itself since 1949. Yet the relationship between the two has improved markedly since 2008 after Beijing-friendly Ma Ying-jeou became the island's president, pledging to boost trade ties. Since last year, China has sent a number of purchasing missions to Taiwan, saying they helped shield the island from the full impact of the financial crisis.

Indian outsourcing body chief tries to ease US job fears
Mumbai (AFP) Oct 27, 2010 - The head of India's outsourcing industry trade body Wednesday moved to allay US fears about jobs moving to India, as the issue threatens to be a key theme during an upcoming visit by President Barack Obama. Som Mittal, president of the National Association of Software and Services Companies (NASSCOM), said concerns about IT employees losing their jobs as firms send work overseas were political rhetoric before US mid-term elections. "We hope there's a better understanding that India and Indian companies and the work we do is actually a solution for the US during the downturn rather than a problem that it's sometimes made out to be," he said.

Indian IT companies have created about 35,000 jobs in the United States over the past five years. But he warned that proposals such as curbing tax breaks on firms that outsource or cutting visas for skilled workers could only hurt the US economy at a time it is looking to recover from the global slump and high unemployment. New jobs could only be created from increased co-operation with growing economies like India, said Mittal, whose trade body represents India's leading software exporters, including Tata Consultancy Services, Infosys and Wipro. "Jobs can only come back by increasing economic activity with India. India is probably not the only answer but one where US companies can do well," he added. Obama is due in India early next month as part of a 10-day Asia tour and the visit is expected to focus on expanding exports and two-way trade and investment.

He trip has been scheduled after the November 2 US polls, in which his Democratic Party is expected to fare badly, partly due to the state of the economy. Captains of industry, including from the IT sector, are due to meet in Mumbai for a business summit where Obama will make a keynote address. Mittal said the visit was an opportunity to persuade policy-makers that working together was in US interests. "There has to be increased realisation that we are helping to make US companies more competitive," he said.
by Staff Writers
Hanoi (AFP) Oct 28, 2010
Southeast Asian leaders tackled issues buffeting the region, including currency tensions, territorial disputes and Myanmar's flawed election plans, at a summit in Vietnam's capital Thursday.

The Association of Southeast Asian Nations (ASEAN) meeting is also taking place against a backdrop of increasingly assertive behaviour by China which has put the region on edge.

Indonesian Foreign Minister Marty Natalegawa said that evening talks had centered around regional issues including overlapping claims in the strategic and resource-rich waters of the South China Sea.

"All of us recognise that the peace and stability in our region is precious and therefore disputes on the South China Sea must be resolved peacefully, must be resolved through diplomacy and must be resolved in accordance with the applicable international law," he told reporters.

The United States and Southeast Asian countries are concerned over China's newly muscular approach to maritime sovereignty in the South China Sea, where several regional nations have competing claims.

In an afternoon retreat, the 10 leaders worked on ambitious plans to bind their nations and 580 million people into a community with close economic and political ties.

They also tackled the global "currency wars" that threaten to destabilise their emerging economies by sending exchange rates shooting up and inviting a flood of foreign capital.

"They discussed... investment flows, about the pace of development... about the situation in the global markets that might not be conducive," said ASEAN secretary general Surin Pitsuwan.

But their work was again overshadowed by pariah member Myanmar, which is preparing to hold polls on November 7 that have been derided as a sham because they exclude detained democracy icon Aung San Suu Kyi.

The leaders are expected to have quizzed Myanmar, whose foreign minister Nyan Win attempted to deflect a barrage of complaints in Hanoi by saying that Suu Kyi may be released soon after the vote.

"We were told that she will have completed her term of imprisonment by the first 10 days, probably, after the elections," Pitsuwan said.

"We were told that there will be no more reason to keep her in house arrest. But for that we will have to wait. It was not a clear-cut commitment," he said.

Authorities in Myanmar have previously told AFP that the democracy leader will be released when her current term of house arrest expires on November 13, but the military state has made no official confirmation.

There was a cautious response to the comments from a regime that has kept Suu Kyi detained for 15 of the past 21 years, and which in the past has set her free only to produce new charges to justify a return to detention.

"No, I'm not satisfied," Philippine Foreign Secretary Alberto Romulo said. "Not only an assurance but I want it to happen, that no new charges will be filed," he said in unusually strong comments.

The gathering of the ASEAN bloc shifts gear Saturday when it widens into the 16-nation East Asia Summit, also taking in Australia, China, India, Japan, South Korea and New Zealand.

There are hopes for talks between Chinese Premier Wen Jiabao and his Japanese counterpart Naoto Kan to smooth the two rivals' worst diplomatic row in years, centred on a disputed East China Sea island chain.

A Friday meeting between the economic ministers of Japan, China and South Korea was cancelled, casting doubt over the two leaders' talks, but the scheduling of talks between their foreign ministers again boosted the chances.

"This can be one step in creating a direction towards a summit between the Japanese and Chinese prime ministers," an official in the Japanese delegation told AFP.

The two foreign ministers will meet at 0130 GMT Friday, and the official said a bilateral summit could take place the same morning or on Saturday.

Tokyo has accused Beijing of using its near-global monopoly on the trade in rare earths, minerals vital to high-tech manufacturers, as a weapon in the row triggered by the arrest of a Chinese fishing boat captain in disputed waters.



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TRADE WARS
China says rare earths not a 'bargaining tool'
Beijing (AFP) Oct 28, 2010
China will not use its near-global monopoly on the rare earths trade as a "bargaining tool", an industry ministry spokesman said Thursday, amid a row with Japan over the vital minerals. The comments came as Japanese media reported that China had cancelled a meeting of the economic ministers of Japan, China and South Korea due to the spat over its export restrictions on rare earths, which are ... read more







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