IMF, China, Japan warn USA's debts on default! Demystifying the US debt ceiling

UNITED States (U.S.) President Barack Obama Tuesday declared that he was willing to negotiate with Republicans in passing at least a short-term budget that opens up the government at current funding levels.

But Obama, during a media briefing Tuesday, said his offer to negotiate with Republicans on the issues would “absolutely” stand if Congress passes even short-term clean spending and debt ceiling bills.

However, he declared that “the only thing that I will say is, we’re not going to pay ransom for” America paying its bills.

This came as it was revealed yesterday that there are no talks going on at any level to resolve differences over the government shutdown and the debt ceiling deadline.

But Washington’s march toward self-inflicted financial calamity is setting off alarm bells around the world as general bewilderment turns into genuine concern over a possible default by the world’s lone superpower.

The International Monetary Fund (IMF) as well as China and Japan – which hold a combined $2.4 trillion in U.S. debt – have called for a quick resolution to the crisis and expressed worries over the economic consequences of a default.

Meanwhile, Obama said U.S. credit-worthiness will be affected if markets see that “we’re not paying all our bills on time.”

Noting that he missed a major conference in Asia this week because of the government shutdown issues, said the president said: “whenever we do these things, it hurts our credibility around the world. Makes it look like we don’t have our act together.”

He warned that if Congress doesn’t raise the debt ceiling, “every American could see their 401Ks and home values fall,” and the country would see a “very significant risk” of a deep recession.

Obama said that Congress has to vote to raise the debt ceiling as soon as it votes to reopen the government. Failing to raise the debt ceiling “would be dramatically worse” than a government shutdown, he said.

He criticised House Republican tactics in dealing with the government shutdown and a debt ceiling increase. “Let’s lift these threats from our families and our businesses and let’s get down to work,” he told reporters yesterday.

Obama spoke after Republicans reportedly offered a new approach yesterday to resolve the U.S. fiscal standoff, proposing creation of a bipartisan panel to work on deficit reduction and find ways to end the government shutdown and make recommendations on a debt-limit increase.

The proposal, which was quickly dismissed by Democrats, came as House of Representatives Speaker John Boehner and President Barack Obama spoke by telephone shortly after Boehner adopted a slightly more conciliatory tone in comments to reporters.

“There are no boundaries here. There’s nothing on the table, there’s nothing off the table,” Boehner said after a meeting with House Republicans, making no mention of his recent demands to delay parts of Obama’s healthcare law in return for approving funds to end the government shutdown.

In the first official response by China, Vice Finance Minister Zhu Guangyao said that a solution must be found quickly in order to “ensure the safety of Chinese investments” and provide stability for economies around the globe.

“We ask that the United States earnestly take steps to resolve in a timely way the political issues around the debt ceiling and prevent a debt default,” he said. “This is the United States’ responsibility.”

The International Monetary Fund (IMF) has trimmed its forecast for global economic growth at the same time as lifting its UK growth projection.

It now expects global growth of 2.9% this year, a cut of 0.3% from July’s estimate. In 2014 it expects global growth of 3.6%, down 0.2%.

It cited weakness in emerging economies for the cut.

But it warns that the political standoff over raising the US government’s borrowing limit, if it results in the US defaulting on its debt payments, “could seriously damage the global economy”.

It expects growth of 1.6% in the US this year and 2.6% next year, down 0.1% and 0.2% from its July forecast.

Economists have predicted that a default would do great harm to economies around the world.
Obama recounted to reporters his telephone discussion yesterday morning with House Speaker John Boehner:

He was happy to eventually talk with Republicans about issues they care about, but that “shouldn’t require threats of a government shutdown” or economic chaos over the heads of the American people.

Yesterday, there were news conferences and a high-level phone call between Obama and the House Speaker, but no immediate sign of progress on reopening the government a week into a partial shutdown or reaching a deal to avoid the first-ever U.S. default next week.

Obama called Boehner yesterday morning, and the White House then announced the president would make a statement and take some questions from reporters at 2 p.m. ET.

Earlier, Boehner demanded that Obama and Democrats negotiate with Republicans on steps needed to end the shutdown that began on October 1 and raise the nation’s debt ceiling before the deadline for default on October 17.

“Americans expect us to work out our differences, but refusing to negotiate is an untenable position,” Boehner said, adding that Obama and Senate Majority Leader Harry Reid are “putting our country on a pretty dangerous path” by rejecting GOP calls for talks

- The Guardian

Demystifying the US debt ceiling: 5 things you should know

As the US government is about to hit its so-called debt ceiling of $16.7 trillion on Oct. 17, the frightening prospect of the world’s biggest economy running out of cash is dominating headlines around the globe.

So, in an effort to shine some light on what exactly the debt ceiling means to all of us, Business RT spoke to leading Moscow financial expert Chris Weafer, a senior partner at Macro-Advisory.com.

1  What exactly is the “debt ceiling?”
 
The US debt ceiling has existed for almost a century, and describes the maximum amount of money the US can legally borrow. The country introduced the legislative limit on its debt back in 1917, and since then it has stipulated the affordable amount of national debt that can be issued by the US Treasury. As of September 25, the US Treasury reported federal government debt at just shy of $16.7 trillion
($16,699,396,000,000.00, to be exact) in its daily statement, a figure which has been reported for 130 days straight. This is about $25 billion shy of the precise legal limit – $16,699,421,095,673.60. When the US approaches this debt limit, it can take some “extraordinary measures” to buy some time before Congress agrees to raise the ceiling. In its entire history, the US has so far never reached the point of default, where Treasury can’t pay its debt obligations.

2  Who holds the US debt?
 

The US owes about two-thirds of its debt to US-based creditors, with almost 66 percent of the country’s debt held domestically. US individuals and financial institutions hold around 31.7 percent of US Treasuries, with the US central bank, the Federal Reserve, which holds some 12 percent of the debt. Foreign creditors, including China and Japan, own an estimated 34 percent of total US government debt. These two 'big lender' countries have recently urged the US to take decisive steps to avoid a default.

3 What does the US borrow the money for?
 
In the US, often referred to as a 'big-spending' country, both individuals and the government have habitually spent more than they earn, pushing the economy deeper into debt.

“Just like any ordinary individual, the choice is either to cut back on spending or to borrow money to bridge the gap,” Weafer says.

In 2012, 22 percent of total government expenditures went to social security (means-tested payments to the poor and unemployed), while 21 percent was spent on healthcare, again mostly for poor Americans who cannot afford private health insurance. The third largest expenditure item is defense at 19 percent. In recent decades, the US defense bill has ballooned, mainly due to costly wars in Iraq, Afghanistan and elsewhere. The so-called War on Terror has also added greatly to the debt burden, while the Department of Homeland Security, created after the September 11, 2001, attacks on the US, has cost taxpayers more than a cumulative $800 billion.

The biggest contributory factor to the fast-growing debt mountain in recent years, however, has been the economic crisis that began in 2008. Apart from hundreds of billions of dollars paid out to rescue failing Wall Street banks that had made too many toxic loans, the US government has also paid out large amounts on vital social programs to aid the growing 'army of the unemployed'. Coupled with the Bush-era tax cuts to the rich and big business, lower average incomes and greater unemployment have hit government tax revenues hard, sending federal government debt sky-high.

4  Why can’t they simply print more dollars and pay their debt?
 

No economy in the world can simply turn on its printing presses and create as much cash as it wishes, as this would make its currency worthless.

“If the amount of currency in issue is not sensibly related to the strength of the economy, then foreign trade partners will … devalue the currency quickly,” Weafer explains. “If you have one asset and income source which allows you to issue one dollar, and then you print one more dollar, everybody else will see what you have done and will value your one dollar at only 50 cents. Some countries have done that in the past, but in those cases people soon had to use suitcases just to carry enough currency to buy a loaf of bread.”
 
Under the Bretton Woods financial system, established in 1944, the amount of currency in circulation was linked to gold reserves. But in 1971, the US abandoned this system and started to include a number of other economic factors, based on a recognized ability to service debt and prevent inflation, and maintain orderly trade with the rest of the world.

5 How would a US default affect people around the world, on a macro and personal level?
 
If the US defaulted, then the world’s financial system “would start to freeze up,” Weafer says. “Banks would pull back from risk and lending. The US economy would slide towards recession and the global economy would quickly be affected.” A prolonged US default would lead to job losses everywhere and much tougher borrowing conditions for companies and individuals, he adds.

“A short period of default would also have a bad effect in that it would hurt confidence in the world’s financial system,” he says. “Bankers and investors would assume that a short-term fix in the US would mean it would only be a matter of time before the same issue arises again in 2014. The resulting caution would make life that much tougher for all of us.”
 
- RT news

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US and China tussle for trade dominance at Apec summit

United States stepped up efforts to reinforce its economic might in the Asia-Pacific at a regional leaders’ summit in Indonesia on Tuesday, amid warnings from an increasingly bold China.


US Secretary of State John Kerry. Photo: EPA 

The two-day Asia-Pacific Economic Co-operation (Apec) event at a five-star resort on the tropical island of Bali is aimed at breaking down trade barriers among all 21 member economies, but rival agendas by the world powers have overshadowed the talks.

Filling in for US President Barack Obama, Secretary of State John Kerry has lobbied for the quick signing of a mega free trade pact grouping 12 Apec nations but not China and summit host Indonesia.

“We need modern rules for a changing road, rules that keep pace with the speed of today’s markets,” Kerry said in a speech on the sidelines of the summit on Monday that was in large part a hard-sell for the planned Trans-Pacific Partnership.

China's President Xi Jinping, Photo: AFP

Kerry was set to meet the leaders of the 11 other nations involved in the TPP on Tuesday afternoon in a bid to hit an against-the-odds deadline set by Obama for a deal by the end of this year.

The United States has championed the TPP as setting “gold standards” to deal with complex changes to the 21st-century economy, such as how to police cloud computing and patents.

But China and even some developing nations included in the TPP have expressed concern that it will set down trade rules primarily benefiting the richest countries and most powerful firms.

“China will commit itself to building a trans-Pacific regional cooperation framework that benefits all parties,” Chinese President Xi Jinping said in a speech following Kerry at the Apec business forum

“We should enhance coordination... deepen regional integration and avoid the spaghetti bowl effect so as to build closer partnerships across the Pacific.

China will commit itself to building a trans-Pacific regional cooperation framework that benefits all parties -China's President Xi Jinping

Xi’s comments were interpreted in China’s state-run media on Tuesday as direct criticism of the TPP.

“The Trans-Pacific Partnership, featuring confidential talks and the highest free trade standard beyond mere lower tariffs, is widely considered a new step for the US to dominate the economy in the Asia-Pacific region,” the China Daily newspaper said in a front-page report on Xi’s speech.

Indonesia also signalled its irritation at the huge focus on TPP at the Apec summit, shunting the planned meeting on Tuesday afternoon of the 12 nations involved to a hotel outside the official venue.

“We mind actually, and one of the reasons, at the very least, is we don’t want any coverage that will overshadow APEC,” an Indonesian government official said, when asked about why the TPP countries had been told to meet outside.

Meanwhile, China and Indonesia are involved in plans for a rival free trade pact involving 16 countries around the region and being spearheaded by the Association of Southeast Asian Nations.

Negotiations for that pact are expected to be discussed at an East Asia Summit in Brunei this week.

One of the biggest issues at Apec has been the absence of Obama, who had to cancel an Asian tour that would have also taken him to Brunei, Malaysia and the Philippines because of the week-long US government shutdown.

Obama and the Democrats are engaged in a potentially catastrophic battle of nerves with the Republicans over the president’s health care law, which could lead to an unprecedented US default.

Obama’s decision not to come to Asia has reinforced sentiments that his high-profile diplomatic, economic and military focus on the region, known as the “pivot”, is in tatters.

Kerry has been forced at Apec to repeatedly insist that the Asia-Pacific remains a top priority.

“I want to emphasise that there is nothing that will shake the commitment of the rebalance to Asia that President Obama is leading,” Kerry told the business forum on Monday.

Meanwhile, Xi filled the Obama vacuum with high-profile state visits to Jakarta and Kuala Lumpur ahead of Apec.

He then used the Apec business event to outline a Chinese vision for the region of a “united and prosperous” family.

Sources: AFP

Related - Phony Relationship 



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APEC should lead a more open world economy & play a bigger role; Reform and innovation are new drivers: President Xi said

Leaders of the Asia-Pacific region and their respective spouses, wearing traditional Balinese "endek" costumes, pose for a group photo before a dinner hosted for the leaders at the Asia-Pacific Economic Cooperation (APEC) meeting in Nusa Dua on the Indonesian resort island of Bali on Monday. Photo: AFP 




Chinese President Xi Jinping Monday called on the Asia-Pacific Economic Cooperation (APEC) economies to play a leading role in maintaining and advancing an open world economy.

Xi made the remarks during a keynote speech to an informal meeting of economic leaders at an APEC meeting on the Indonesian resort island of Bali, which had sustainable growth and regional cooperation high on the agenda.

Noting that the world economy is still confronted with daunting challenges before achieving a full recovery and sound growth, Xi said APEC must face them head-on with courage and resolve.

The president said APEC member economies should work together for the common development of the Asia-Pacific through increased macro-economic policy coordination.

With the economies of APEC members closely intertwined with economic globalization, they must amplify the positive effects of macro-economic policy coordination while preventing or reducing the negative spillover, and pursue win-win cooperation in an open and inclusive spirit, he said.

Su Hao, director of the Asia-Pacific Research Center at China Foreign Affairs University, told the Global Times that Xi's speech stressed that economic development is the priority for members of APEC, as other players try to provoke other problems in the region which might make some ignore the importance of economic development.

Meanwhile, Xi also noted that while the international community is working to push forward the Doha Round, various free trade arrangements in the Asia-Pacific are advancing in parallel, each with different rules, standards and preferred pathways.

Xi said that China believes that "any arrangement should lead to a cooperative relationship, not a confrontational one; an open mindset, not an exclusive one; win-win results, not a zero-sum outcome; and integration, not fragmentation," without naming a particular arrangement.

Analysts believe it refers to the US-advocated Trans Pacific Partnership (TPP), which excludes China.

"TPP is like a small circle which might be against APEC's aim to achieve wide economic integration in the region," said Su.

Xi also called on APEC members to stay committed to open development and resolutely oppose protectionism.

Ei Sun Oh, a senior fellow with the S. Rajaratnam School of International Studies at Nanyang Technological University, told the Global Times that Xi's call for more open access is "both timely and crucial," and Southeast Asian countries understand collective lowering of these barriers will ultimately bring forth more common interests for all.

He noted that China could take the lead, for example in lowering or canceling several tariffs in the new China (Shanghai) Pilot Free Trade Zone.

Earlier on Monday, Xi elaborated his views on the Chinese economy and the country's reform at a business forum on the sidelines of the APEC meeting, assuring business leaders that there is no reason to fear a hard landing.

China's GDP growth slowed to 7.6 percent in the first half of this year.

"I'm fully confident in the future of China's economy," Xi said, noting the slowdown is "an intended result of our own regulatory initiatives" and a "seven percent annual growth rate will suffice" to meet China's medium-term goal of doubling per capita income by 2020.

Xi highlighted the importance of reform, which he said is facing an uphill battle and in the deep-water zone.

"China is a big country. It shouldn't make subversive errors on fundamental issues, or it would be irredeemable. We not only need to be bold in exploring [reform], but also need to be cautious and think it over twice," Xi said.

The APEC group has 21 members, which account for about 55 percent of world GDP and some 40 percent of the world's population.

Agencies contributed to this story

President Xi fully confident about future of Chinese economy

Chinese President Xi Jinping (2nd L) and his wife Peng Liyuan (1st L) pose for a photo with Indonesian President Susilo Bambang Yudhoyono (2nd R) and his wife before a dinner hosted for the leaders and their spouses at the 21st APEC Economic Leaders' Meeting in Bali, Indonesia, Oct. 7, 2013. Photo: Xinhua

 Chinese President Xi Jinping said in Bali on Monday that he is fully confident about the future of the Chinese economy, based on a comprehensive analysis of all factors.

"I am confident because first of all China's growth rate is within the reasonable and expected range," said Xi while addressing the Asia-Pacific Economic Cooperation(APEC) CEO summit, noting that the change in speed of growth has on the whole been smooth.

Describing the fundamentals of the Chinese economy as good, Xi said that "everything has been going as expected and nothing has come as surprise."

He stressed that the slowdown in the speed is an intended result of China's own regulatory initiatives.

"Second, I am confidant because the quality and efficiency of China's economy development are improving steadily," the president continued.

Moving from over-reliance on investment and export to dependence on domestic demand, China, instead of taking GDP growth as the sole criterion for success, is now focusing more on improving the quality and efficiency of growth, he elaborated.

"Third, I am confident because China has a strong home-grown driving force for growth," said Xi, adding that ongoing urbanization, education improvement and expansion of domestic demand will continuously inject impetus into the economy.

The Chinese leader also attributed his confidence to the sound development prospects of the Asia-Pacific, saying his country has faith in the development of the whole region.

"China has achieved its own development, and at the same time, China's development has also contributed to regional economic growth," said Xi, eying a stronger momentum of the interaction in the future.

After wrapping up his state visits to Indonesia and Malaysia, the Chinese President arrived in Bali on Saturday afternoon to attend the APEC meeting, his first appearance at the summit since taking over the presidency in March. -Xinhua

Xi: Reform and innovation are new drivers of economic growth

Chinese President Xi Jinping has told a group of CEOs gathered in Bali that his country's economy will continue to grow. His remarks came on the final day of a summit for business leaders that was held on the sidelines of the APEC Leaders Meeting.

Chinese President Xi Jinping speaks at the APEC CEO Summit in Bali, Indonesia, Oct. 7, 2013. (Xinhua/Wang Ye)

As the head of Asia’s most robust economy, when Xi Jinping talks, business leaders listen. And as a CEO Summit of regional executives closed, President Xi laid out his vision for Asia-Pacific’s economies.

"The Asia-Pacific has long been an important engine of world economic growth. To push forward a recovery at a time of a sluggish global economy, economies in the Asia-Pacific should have the courage to do what has never been done before." Chinese president Xi said.

Many CEOs attending the summit had expressed concern over Beijing’s QUOTE “slowing growth.” But a new study showed that nearly 70 percent of them plan to increase their investments in China in the coming years.

Speaking before Xi, the Russian president, Vladimir Putin, attempted to assure them: the entire region presented all sorts of opportunities.

Already twice this year, Russia has had to cut its growth forecast, as Moscow has struggled with waning investment and output.

Last week, the U-S overtook Russia as the world’s largest gas-and-oil producer. A point highlighted by John Kerry, the U-S Secretary of State, standing in place for Barack Obama.

Meanwhile, Kerry tried to reassure business leaders that despite Obama’s absence, Washington remained committed to region.

“I want to emphasize that there is nothing that’ll shake the commitment of the United States to the rebalance to Asia that President Obama is leading. And I think it’s fair to say to all of you that we are very very proud to be a Pacific nation.” Kerry said.

Reporter: “The CEOs represent the nearly 3 billion customers who live in the Asia Pacific region. In the coming years, the region’s economy will be determined by how those customers will spend their money and how they spend will likely be determined by what the leaders here say, and what the CEOs hear.” - CCTV

Bosses prefer Multi-skilled workers with the digital technologies, Global Randstad Workmonitor Report

PETALING JAYA: Malaysian employees expect their jobs to be more demanding with the increasing influence of digital technologies in the workplace and more bosses preferring to hire multi-skilled workers.

The latest survey by a global recruitment and human resource services firm showed that nine out of 10 Malaysian workers expected their jobs to be more challenging over the next five years.

According to the latest Randstad Workmonitor Report, greater workplace expectations were higher in Malaysia compared with respondents in Singapore (80%), Hong Kong (73%), Australia (73%) and New Zealand (82%).

The survey, based on 405 respondents, also found that 95% of the Malaysian workers were willing to develop their skills to meet the changes.

Randstad Malaysia director Jasmin Kaur said employers have increased the emphasis on education, experience, social and digital skills.

“With organisations becoming leaner, employees are now expected to be not only high performing, but to be able to put on several hats,” she said.

Jasmin said the figures were reflective of Malaysia’s aim to become a high-income nation by 2020.

Malaysian Employers Federation’s (MEF) executive director Shamsuddin Bardan concurred with the report’s findings

“Like it or not, this is the definite trend due to the demands of business,” he said, adding that even older employees had to adapt to the digital trend of being wired and contactable.

Jasmin said the survey also found that most of the respondents believed that their employers placed greater importance on digital skills than they did five years ago.

“With social media being a part of today’s business environment, being comfortable with using tools such as Twitter and LinkedIn could help an employee keep connected and abreast of what is happening in the industry.

“Different companies have different expectations of their workers. Employees who are client-facing may be expected to be on call outside of standard office hours to respond to clients as required,” she said.

Shamsuddin echoed similar views, saying that it was now a necessity for employees to be reachable anytime of the day, whether it was outside work hours on while they were on holiday.

However, he said employers recognised that there had to be a work-life balance for their staff, adding: “Being contactable is not the same thing as working 24/7.”

Burnt out: Employees face stressful days at home and at the workplace if a work-life balance is not struck.

He said employers also knew that happy employees were more productive.

MTUC secretary-general Abdul Halim Mansor said the umbrella organisation for unions was against the culture of employees being at the beck and call of bosses beyond working hours.

He said the Malaysian Employment Act specified rest days which workers were entitled to.

“Notwithstanding the demands of the job, the rights of employees to get adequate rest should be respected,” he said.

Abdul Halim said such a working culture could have negative impacts on families and communities.

Company managers, who spoke to The Star, said the nature of a job and position would determine if an employee had to be on call.

“For those in management, there is no escape,” said the human resources manager of a multinational company in Kuala Lumpur

Another manager, who also declined to be named, said being on call 24 hours a day was already a norm.

“The company provides employees with smartphones so they can be reached anytime,” she said.

The survey, conducted between July 17 and Aug 5, also found that 77% of Malaysians were satisfied with their current employer compared with 56% in Singapore, 47% in Hong Kong and 44% in Japan.

Jasmin said a pleasant working environment, effective leadership and career development training were the reasons why Malaysian employees remained satisfied.

The quantitative study was conducted via an online questionnaire. The respondents were between 18 and 65-years old, working a minimum of 24 hours a week in a paid job.

Randstad issues its survey report four times a year.

- Contributed by  by p. Aruna, Neville Spykerman, and D. Kanyakumari, The Star/Asia News Netowrk

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Vietnamese hero defeated French and US dies aged 102

.

Vo Nguyen Giap, the celebrated general who masterminded the defeat of the French military at Dien Bien Phu and led North Vietnam's forces against the US, has died aged 102 at a military hospital in Hanoi.

Giap, whose victory at Dien Bien Phu triggered France's departure from Indo-China, was a self-taught leader regarded as one of the great military geniuses of the post-second world war era.

He remained as the commander of the North's forces supporting the Viet Cong throughout the subsequent Vietnam war, being credited with the 1968 Tet offensive.

Giap, known as the Red Napoleon, was a national hero whose reputation was second only to that of Ho Chi Minh.

While some, such as the American journalist Stanley Karnow, regarded him as a strategist in the mould of Wellington, others, including the US general William Westmorland, believed his success was down to his ruthlessness.

Indeed, Westmorland complained to Karnow: "Any American commander who took the same vast losses as General Giap would have been sacked overnight."

Giap was born in the village of An Xa on 25 August 1911 and attended the University of Hanoi, gaining degrees in politics and law, before working as a journalist.

He was jailed briefly in 1930 for leading anti-French protests and later earned a law degree from Hanoi University.

He fled French police in 1940 and met Ho Chi Minh in southwestern China before returning to rural northern Vietnam to recruit guerrillas for the Viet Minh, a forerunner to the southern insurgency later known as the Viet Cong.

During his time abroad, his wife was arrested by the French and died in prison. He later remarried and had five children.

In 1944, Ho Chi Minh called on Giap to organize and lead guerrilla forces against Japanese invaders during World War II. After Japan surrendered to Allied forces the following year, the Viet Minh continued their fight for independence from France.

Giap was known for his fiery temper and as a merciless strategist, but also for being a bit of a dandy: Old photos show him reviewing his troops in a white suit and snappy tie, in sharp contrast to Ho Chi Minh, clad in shorts and sandals.

Giap never received any formal military training, joking that he attended the military academy "of the bush."

At Dien Bien Phu, his Viet Minh army surprised elite French forces by surrounding them. Digging miles (kilometers) of trenches, the Vietnamese dragged heavy artillery over steep mountains and slowly closed in during the bloody, 56-day battle that ended with French surrender on May 7, 1954.

"If a nation is determined to stand up, it is very strong," Giap told foreign journalists in 2004 prior to the battle's 50th anniversary. "We are very proud that Vietnam was the first colony that could stand up and gain independence on its own."

It was the final act that led to French withdrawal and the Geneva Accords that partitioned Vietnam into north and south in 1956. It paved the way for war against Saigon and its U.S. sponsors less than a decade later.

The general drew on his Dien Bien Phu experience to create the Ho Chi Minh Trail, a clandestine jungle network that snaked through neighboring — and ostensibly neutral — Laos and Cambodia, to supply his troops fighting on southern battlefields.

Against American forces with their sophisticated weapons and B-52 bombers, Giap's forces again prevailed. But more than a million of his troops perished in what is known in Vietnam as the "American War."

"We had to use the small against the big; backward weapons to defeat modern weapons," Giap said. "At the end, it was the human factor that determined the victory."

It was his command of Viet Minh forces during the eight-week battle of Dien Bien Phu, which raged from March to May in 1954, that made his reputation.

Vietnamese forces, who wore sandals made of car tyres and lugged their artillery piece by piece over mountains, managed to encircle and crush the French troops in a bloody engagement immortalised in Bernard Fall's Hell in a Very Small Place.

Although he was at first a renowned exponent of guerilla tactics, Giap commanded a devastating conventional assault at Dien Bien Phu, in which his forces used Chinese-supplied artillery to prevent effective resupply by air of the base deep in the hills of north-western Vietnam.

During the bitter fighting that would follow, the garrison, comprising a series of outposts in a deep valley, gradually succumbed.

On the brink of being overrun by Giap's forces, the French commander, Christian de Castries, was forbidden to surrender in an infamous order from his superior, General René Cogny in Hanoi, who told him: "You will fight to the end. It is out of the question to run up the white flag after your heroic resistance."

The unlikely victory, which is still studied at military schools, led not only to Vietnam's independence but hastened the collapse of colonialism across Indochina and beyond.

Giap went on to defeat the US-backed South Vietnam government in April 1975, reuniting a country that had been split into communist and non-communist states. He regularly accepted heavy combat losses to achieve his goals.

"No other wars for national liberation were as fierce or caused as many losses as this war," Giap told the Associated Press in 2005 in one of his last-known interviews with foreign media on the eve of the 30th anniversary of the fall of Saigon, the former South Vietnamese capital.

"But we still fought because for Vietnam, nothing is more precious than independence and freedom," he said, repeating a famous quote by Ho Chi Minh.

In later life Giap served as deputy premier and minister of defence.

He is survived by Dang Bich Ha, his wife since 1949, and four children.

Sources: AP & the guardian

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Malaysia and China set trade target of RM511bil, usher new era of strategic partnership

Chinese President Xi Jinping (L) and Malaysian Prime Minister Najib Razak jointly meet the press in Kuala Lumpur, capital of Malaysia, Oct. 4, 2013. (Xinhua/Zhang Duo)



PUTRAJAYA: Malaysia and China have set an astounding bilateral trade target of US$160bil (RM511bil) by 2017.

Datuk Seri Najib Tun Razak and President Xi Jinping discussed this at a closed-door meeting at the Prime Minister’s office here yesterday.

The two leaders also discussed a five-year economic and trade programme and agreed to elevate the current cooperation between both countries into a comprehensive strategic partnership.

Najib and Xi said this in a joint statement issued after the meeting.

Last year, the bilateral trade volume between the two countries reached US$94.8bil (RM303bil).

This makes Malaysia China’s top trading partner among the Asean countries for the fifth consecutive year.

Najib said Xi expressed keen interest in seeing Chinese companies participate in Malaysia’s high-speed rail (HSR) project, the China-Malaysia Qinzhou Industrial Park and the Malaysia-China Kuantan Industrial Park.

“We also would like to see more trade between the countries settled in the renminbi and ringgit,” he said, adding that the information on this should be disseminated to the private sectors of both countries.

Najib said Xi indicated some new areas of cooperation between the two countries, which included information and communication technology, biotechnology, science and space technology.

“We agreed to step up our cooperation in law enforcement, combating transnational crime, cyber security, as well as stronger and deeper military cooperation,” he said.

Najib added that Malaysia would be opening a Consul-General office in Nanning while China would open similar offices in Kota Kinabalu and Penang.

“Malaysia also fully supports Xi’s suggestion, which he made in Indonesia, for the establishment of an Asian Infrastructure Investment Bank which would certainly help in the development of Asean,” he said.

The Prime Minister hoped that the project to develop the Malaysian campus of the Xiamen University, its first outside China, would become a reality in near future.

Najib added that he was also looking forward to visit China next year, at the invitation of the Chinese government and Xi, to celebrate the 40th anniversary of the Malaysia-China diplomatic ties.

Earlier in the morning, Najib and Xi and their spouses attended a welcoming ceremony at Dataran Parlimen in the presence of the Yang di-Pertuan Agong Tuanku Abdul Halim Mu’adzam Shah and Raja Permaisuri Agong Tuanku Sultanah Hajah Haminah Hamidun.

Sources: The Star/Asia News Network

 Xi's visit ushers in new era in China-Malaysia ties

Chinese President Xi Jinping left Kuala Lumpur Saturday after concluding his first state visit to Malaysia, which helps usher in a new era in China-Malaysia relations.

During his stay in Malaysia, Xi met Supreme Head of State Abdul Halim Mu'adzam Shah and Prime Minister Najib Razak, and attended a China-Malaysia economic summit. He also witnessed the signing of a series of cooperation agreements.

Both sides agreed to upgrade bilateral ties to a comprehensive strategic partnership, and make efforts to expand annual bilateral trade to 160 billion US dollars by 2017. The first Chinese university outside China, Xiamen University Malaysia Campus, will also be set up in the Southeast Asian country.

The visit by President Xi marks another great leap forward of bilateral relationship between Malaysia and China.

"In fact, the achievements of the visit are well beyond my expectation. It's a miracle that so many achievements have been made within such a short period of time," said Tan Khai Hee, secretary general of Malaysia-China Friendship Association.

Upgrade of bilateral ties

During their talks on Friday, Xi and Najib agreed to upgrade bilateral ties to a comprehensive strategic partnership.

"China highly values its relationship with Malaysia, which is taking the lead in China's relations with ASEAN members," Xi said, urging the two sides to enhance strategic cooperation to make their relationship a fine example in the region.

ASEAN stands for the Association of Southeast Asian Nations, which consists of Malaysia and nine other Southeast Asian countries.

Xi said the upgrade to a comprehensive strategic partnership will draw a more "beautiful" blueprint for bilateral ties.

For his part, Najib said his country hopes to enhance the comprehensive strategic partnership with China.

"China is a trustworthy friend of Malaysia," he said. "Our bilateral relations enjoy vast prospects."

The single most significant achievement of Xi's visit is of course the upgrade of the bilateral relationship to comprehensive strategic partnership, which China only accords to its most valued neighbors and friends, said political analyst Oh Ei Sun, a former political secretary to Najib.

While the economic collaboration will continue to prosper in gigantic leaps, the comprehensive nature of the relationship will see more technological, cultural and educational exchanges, which are crucial for the ever closer relationship between the two countries, he said in an interview with Xinhua.

Win-win cooperation

China has been Malaysia's biggest trading partner for the last four years, while Malaysia has been China's largest in the 10-member ASEAN for five years in a row.

Two-way trade soared to a record high of 94.8 billion dollars last year, while trade in the first seven months of 2013 jumped 14.9 percent to 59.72 billion dollars.

The Qinzhou Industrial Park in China and the Kuantan Industrial Park in Malaysia, noted Xi, should be built as flagship projects of investment cooperation between the two countries.

Beijing encourages Chinese enterprises to participate in the development of northern Malaysia and the high-speed railway construction linking Kuala Lumpur and Singapore, which will promote regional inter-connectivity, said Xi.

When addressing more than 1,000 business people and officials at the China-Malaysia Economic Summit on Friday, Xi proposed that the two countries boost bilateral trade and investment, deepen cooperation in the sectors of finance, agriculture and fishery, and jointly improve regional cooperation.

The Chinese president and the Malaysian prime minister witnessed the signing of the five-year program for economic and trade cooperation, which emphasizes the sharing of knowledge, technological resources and investment in the service of sustainable economic development and maps out mutually beneficial initiatives.

The two leaders have set an ambitious target that by the end of the fifth year of this program, bilateral trade between China and Malaysia will hit 160 billion dollars.

The program covers many areas of cooperation, including agriculture, energy and mineral resources, information and telecommunication, manufacturing, infrastructure, engineering, tourism, logistics and retailing.

Pheng Yin Huah, president of the Federation of Chinese Associations Malaysia, said the program shows that China values its relations with Malaysia and President Xi wants more Chinese businessmen to invest in Malaysia.

"I believe that Malaysia and China will have more exchanges in politics, business and education," he added.

Regional cooperation

During his visit to Malaysia, Xi called for further cooperation between Asian countries.

Although Asia remains the most dynamic and promising region in the world, Asian countries still face the arduous tasks of developing economy and improving people's livelihood amid lingering impact of the international financial crisis, Xi said.

He called on Asian countries to focus on development, carry forward the all-in-the-same-boat spirit of unity and cooperation, and jointly safeguard the long-term stability and development in Asia.

"China supports ASEAN's leading status in East Asia cooperation, and is happy to see Malaysia play a bigger role in the region," Xi said.

Najib said Malaysia also stands ready to advance the development of ASEAN-China relations and promote peace, stability and prosperity in the region.

"Whether on bilateral trade relations or international efforts to build a more sustainable global economy, we are strongest when we work together," Najib said.

In an interview with Xinhua prior to Xi's visit, the Malaysian leader said that as a founding member of ASEAN, Malaysia stands ready to contribute to stronger China-ASEAN ties.

"Not only is China a dialogue partner with ASEAN, but it's also an integral part of the East Asia summit," he said.

"Because of that, the relationship between China and ASEAN is very important and continues to grow particularly in terms of trade and China's involvement in major infrastructure projects in the whole region," he added.

While in Indonesia, the first leg of Xi's maiden Southeast Asia tour since he assumed presidency in March, Xi said China and ASEAN countries should work for win-win cooperation, stand together and assist each other, enhance mutual understanding and friendship to increase social support for bilateral ties, and stick to openness and inclusiveness.

Differences and disputes should be properly handled through equal-footed dialogue and friendly consultation for the overall interests of bilateral ties and regional stability, he said.

Xi arrived here Thursday and left the city Saturday for the 21st informal economic leaders' meeting of the Asia-Pacific Economic Cooperation to be held in Bali, Indonesia. -  Xinhua

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Malaysia grand welcome for China president

The King accompanies Xi after the welcoming ceremony at Parliament Square on Oct 3, 2012. Starpix by AZHAR MAHFOF 

KUALA LUMPUR: Chinese president Xi Jinping and his wife Peng Liyuan were accorded a state welcome at Parliament Square on Friday at the start of their three-day state visit.

They were welcomed by Yang di-Pertuan Agong Tuanku Abdul Halim Mu'adzam Shah and Raja Permaisuri Agong Tuanku Hajah Haminah, Prime Minister Datuk Seri Najib Tun Razak and wife Datin Seri Rosmah Mansor, as well as Cabinet ministers.


Xi, on his first state visit here, received a 21-gun salute and inspected the royal guard-of-honour mounted by by 106 officers and men of the First Battalion Royal Malay Regiment led by Major Nur Fahmi Bassar.
The Regiment band played the Negaraku and the Chinese national anthem.

Xi and his wife were later introduced to ministers, and other VIPs, including Chief Secretary to the Government Tan Sri Dr Ali Hamsa, IGP Tan Sri Khalid Abu Bakar and Army Chief Datuk Raja Mohamed Affandi Raja Mohamed Noor.

Xi aims to bolster Sino-Malaysia relations 

 

Najib and his wife Datin Seri Rosmah Mansor (right) celebrating the arrival of Xi and his wife Peng (left) during a private dinner at Seri Perdana. — Bernama 

SEPANG: It is the aspiration of the people of China and Malaysia and in keeping with the times to deepen strategic cooperation between both countries, said China President Xi Jinping.

Xi said bolstering Sino-Malaysia relations would also be conducive to regional peace, stability and prosperity.

“China and Malaysia are good neighbours, good friends and good partners.

“Since the establishment of our diplomatic ties 39 years ago, Sino-China bilateral relations have enjoyed the harvest of rich fruits and brought benefits to our people,” he said in his arrival statement.

Xi arrived here yesterday on a Boeing 747-400 aircraft with his wife Peng Liyuan, State Councillor overseeing foreign diplomacy Yang Jiechi, Foreign Minister Wang Yi and Commerce Minister Gao Hucheng and other delegates for a three-day state visit.

The president was greeted by Health Minister Datuk Seri Dr S. Subramaniam upon arrival at 6.35pm.

Click on thumbnail for larger image.

Xi’s first visit to Malaysia was at the invitation of the Yang di-Pertuan Agong Tuanku Abdul Halim Mu’ad­zam Shah.

Xi described China and Malaysia as two important countries in the region, saying that both share extensive common interests.

“I hope my visit will help deepen our traditional friendship, upgrade the level of cooperation and make even more breakthroughs in our strategic cooperation,” he said.

According to the Chinese Embassy, the Chinese and Malaysian governments will sign several important agreements such as the cooperation mechanism for the China-Malaysia Qinzhou Industrial Park.

Malaysia-China ties stronger than ever

by chow how ban

 

Razak and his Malaysian delegation being given a rousing welcome upon arrival at the Beijing airport in 1974

KUALA LUMPUR: It has been 39 years since the late Tun Abdul Razak played a crucial role in establishing diplomatic ties with China.

And in all the years since, even after the former Prime Minister’s passing, the Chinese government has maintained a cordial relationship with his widow Tun Rahah Mohd Noah and her family.

Through its embassy here, China has invited Rahah to its functions and to the ambassadors’ official residence and even called on her – all in appreciation of her husband’s mammoth contributions in bringing the two countries closer.

Chinese Ambassador to Malaysia Chai Xi said it had always been a custom for the Chinese to remember the good deeds done for them.

 

Chinese students performing a dance to welcome Malaysian delegates at the airport in Beijing in 1974.

“My predecessor gave me special instructions to send well-wishes and pay visits to Tun Rahah.

“I will tell my colleague the same thing when he takes over office from me,” he said.

Among the notable occasions he cited was when the Chinese government invited Rahah, and others in her family, to join her son Prime Minister Datuk Seri Najib Tun Razak during his official visit to China in 2009.

During the former Chinese Premier Wen Jiabao’s visit to Malaysia in 2011, Rahah attended a welcoming dinner for him.

“Najib is very touched by the friendly gestures of the Chinese government,” he said.

 

Razak visiting a museum in China in 1974.

“He said that this was something which had not been done by other countries, except China,” Chai said.

Yesterday, Chinese President Xi Jinping attended a dinner hosted by Najib and his family, including Rahah, at Seri Perdana for the president after his arrival for a three-day state visit here.

Xi will attend a state banquet at Istana Negara today, followed by bilateral talks, an MoU signing ceremony and a joint press conference with Najib.

Other programmes lined up for the president include attending a luncheon with Malaysian Chinese business leaders, giving a speech at the Malaysia-China Economic Cooperation Summit and meeting former prime ministers Tun Dr Mahathir Mohamad and Tun Abdullah Ahmad Badawi.

A front page newspaper report in 1974 on Razak’s historic visit to China.

Chai said Najib had fostered close working and personal relationships with the previous Chinese leaders, especially Wen,

He said the people of both nations hoped to see Najib, Xi and their administrations continue this tradition.

On the significance of this visit, Chai said Najib and Xi would discuss the countries’ direction for the next five to 10 years.

“Both governments have agreed on a five-year blueprint on bilateral economic cooperation which we will sign during this visit,” he said.

All eyes on Xi's visit to KL

by tho xin yi

First to host: Najib witnessing Higher Education Minister Datuk Seri Mohamed Khaled Nordin handing over the invitation to the opening of the Xiamen University overseas campus in Malaysia earlier this year to the university president Prof Zhu Chongshi (left).

It’s a packed schedule for China’s President as the two countries explore the many opportunities available.

CHINA’S President Xi Jinping has a packed schedule today after touching down in Malaysia from Jakarta, Indonesia, yesterday.

In his first state visit to Malaysia – and South-East Asia – since he assumed the presidency in March this year, Xi will attend a state welcoming ceremony, meet Prime Minister Datuk Seri Najib Tun Razak and witness the signing of agreements and memorandums of understanding (MoUs).

His programme also includes giving a keynote address at the Malaysia-China Economic Summit, which is co-organised by the International Trade and Industry Ministry, Malaysia-China Business Council and China’s Ministry of Commerce.

Tomorrow, Xi will depart for Bali, Indonesia, to attend the 21st economic leaders’ meeting of the Asia-Pacific Economic Cooperation (Apec) forum.

The People’s Daily, the official paper of the Chinese Communist Party, summed up in a recent news report that his trip will “deepen economic cooperation in Asia and make huge contribution to lasting peace and prosperous development in the Asia-Pacific region”.

For Malaysia, Xi’s visit will lead up to the 40th anniversary of the diplomatic ties between both countries next year.
Both Malaysia and China have a lot to look forward to, as a result of the relations that have seen remarkable growth over the years.

For one, Malaysians are waiting eagerly to coo over the pair of cuddly giant pandas that will be loaned to us from China.

Enterprises in both countries are also looking forward to see the sister industrial parks in Kuantan, Pahang and Qinzhou, Guangxi, come to fruition.

According to statistics in 2012, Malaysia is China’s number one trading partner in Asean for the fifth year running, while China is Malaysia’s top trading partner for the fourth consecutive year.

Xinhua quoted Xi in an interview before his trip that Malaysia stands a chance to be the third Asian country to have its bilateral trade volume with China surpassing the US$100bil (RM322.7bil) mark, after Japan and Korea.

Malaysian businesses operating in China are optimistic that Xi’s visit will raise Malaysia’s profile in China.

Malaysian Chamber of Commerce and Industry in China (Maycham) secretary general Will Fung said the Chinese enterprises would have their attention focused on the visit to sniff out potential business and investment opportunities available following the diplomatic contact.

Maycham, with its presence established in Beijing, Shanghai and Guangdong, has approximately 550 corporate and individual members.

Fung explained that foreign investors had to refer to the Catalogue for the Guidance of Foreign Investment Industries before setting up businesses in China.

The industries are divided into three categories, namely encouraged, restricted and prohibited.

“Local partners are needed for investment in industries in the restricted category, while foreign investment is not permitted altogether in industries that fall in the prohibited category.

“The catalogue is reviewed from time to time. The government sometimes loosens up and removes certain industries from the prohibited category,” he said.

“The sky is the limit when it comes to doing business in China,” observed Fung, “thanks to the massive market and high spending power”.

However, one main hindrance looms – bureaucracy.

“The time needed for a business licence application to be approved is too long in some parts of China.

“It is relatively fast to obtain the green light in first-tier cities, but in provinces where the local authorities are less familiar with foreign investment, it can sometimes take months, even if you follow the guidelines diligently,” Fung said.

He added that Maycham hoped to see the procedures standardised across the board to expedite the approval process.

Meanwhile, on the educational front, Malaysia will be the first country to host an overseas branch campus of a Chinese higher learning institution.

Najib announced in January that Xiamen University had been given the permission by the Chinese government to set up a campus abroad.

The branch in Salak Tinggi, Sepang, is expected to be operational in September 2015.

At the moment, the number of exchange students in both countries exceeded 15,000.

Malaysian Students Association in China said the students were proud to have the Chinese top leader visiting their home country in his maiden trip to South-East Asia.

“We believe that the relationship between the two countries will be taken to new heights, and hopefully it will also translate into more assistance and support for students studying in China.”

> The views expressed are entirely the writer’s own. The Star

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Chinese President Xi Jinping visiting Malaysia and Indonesia to witness signing of pacts