Monthly Archives: August 2015

北欧环境, 华侨华人, 文化卫生, 旅游, 杂文，评论, 瑞典生活, 瑞典生活

瑞典爱护水资源是怎样从娃娃抓起的？

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北欧绿色邮报网杂文（作者陈雪霏）－－昨晚，我7岁的女儿命令他爸爸立即帮她写假期作业，因为她已经答应老师今天必须交上去。

什么假期作业呢？那就是拿个瓶子在假期在你认为合适的地方带一瓶水回来，然后，给老师和同学们讲水的来历的故事。你还要写出来。

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家长只能帮助组织语言，但是不能替写，因此，这中间也有斗争，妈妈不能看她写了什么，爸爸说得不对也不行。总之，最后还是她自己歪歪扭扭地写出了水是我们假期去马尔默的时候带回来的。从马尔默她还去了哥本哈根的提屋里儿童乐园，在那里吃了半米长的棉花糖。

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其实这种作业早在她三岁上幼儿园的时候就有了。孩子从一上幼儿园就开始体会各种物质，水，木头，石头都是他们的作业内容。一次是水，那时还允许家长帮忙，我在附近的海域灌了一瓶水，然后，告诉他们在哪儿灌的，结果，幼儿园老师和同学们就带领所有的小伙伴去哪里。到了那里，先是安妮讲述，然后同学评论，有同学发现，这水在海里（其实这里就象一条河，很狭窄了，两边都是房子，中间可以行船因此河水看着有些黑幽幽）是黑的，但是放在瓶子里其实是很干净，无色透明的。这俨然是一个重大发现。老师都记录在案。

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这样一学期下来，他们访问好多地方，什么瓦特的姥姥家，乌勒的爷爷家等等。孩子们在游戏中学习。

还有一次是带木头或树枝到学校，同样道理。另一次是带石头，学生要讲述石头和树枝在哪里拣来的，有什么作用，为什么在那里捡来的。

上小学二年级了，还是这个主题，而且这次是要自己写出来。我想这样的童年就象我一年级时捡羊粪蛋儿给生产队，帮生产队拾棉花是一个道理，一辈子都不会忘记。对水的感情至少也就从那时开始了。

在瑞典，从80年代开始每年都有一个国际水周，在这一周里人们讨论所有关于水的问题。他们有水学校，水奖，个人，青少年和企业，上到国王，下到百姓都谈论水，甚至关注全世界的水资源动向。瑞典是个水上国家，工业化后期，水也有污染，但是，经过严厉的措施和大规模的宣传运动，使得瑞典的水可以拧开龙头就喝，这和总体水源质量比较好有很大关系。

 

Business, China, Chinese circle, World News

China Focus: Economists confident of medium-term 7-percent growth

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BEIJING, Aug. 18 (Xinhua) — Economists have high hopes China can keep GDP growth above 7 percent over the next five years, as leading officials prepare to discuss 2016-2020 development at a key political meeting.
Economic growth is high on the agenda of October’s plenary session of the Communist Party of China Central Committee, which will cover the 13th Five-year Plan (2016-2020).
These five years are critical if Chinese leaders are to realize their goals of doubling 2010 GDP and per capita income and completing the building of a moderately prosperous society by 2020.
“China’s potential growth can exceed 7 percent,” said Tsinghua University economist Hu Angang, using the technical term for the maximum pace an economy can sustain over the medium to long term without stoking inflation.
“China set a growth target of 7 percent for the 2011-2015 period, but the de facto annual growth was 7.8 percent on average. Potential growth will be lower in the 2016-2020 period, but it should be above 7 percent. I expect the de facto annual growth to be around 7.5 percent,” Hu said.
Fan Gang, an advisor to the central bank monetary policy committee, said he was confident of 7-percent growth in the long run and that more pessimistic analysts “had not taken cyclical factors such as overcapacity into account.” He believes the problem of overproduction by China’s industries will ease sooner rather than later.
“China is still in a relatively high growth range. The growth rate of 7 percent or above could last till 2023 backed by the three state strategies [the Belt and Road regional infrastructure and trade network, greater integration of Beijing, Tianjin and Hebei Province, and the Yangtze River Economic Belt], deepening reform, industrial upgrading and urbanization,” said Liu Wei, deputy president of Peking University.
Wang Yiming, deputy director of the Development Research Center of the State Council, predicted the economy will resist looming downward pressure thanks to emerging favorable conditions.
These include industrialization and urbanization, openings for Chinese enterprises during global economic adjustment, and increasing consumption, according to Wang.
Enormous investment opportunities lie in areas including poverty reduction, environmental protection, water conservation and urban renovation, he added.
Economists also believe official campaigns to integrate technology such as cloud computing, robots and new materials with traditional industries, and to develop the country’s central and western regions will also aid growth.
However, as policymakers have accepted China entering a period of plateauing but more stable economic growth, and one of great strategic opportunities but also complicated challenges, Wang advised them to perfect macro regulation by improving fiscal and monetary policies and to be on the lookout for risks to prevent economic volatility.
The government should back reforms to create growth momentum, and stimulate innovation and entrepreneurship in high-tech industries, he added.
Ba Shusong, chief economist at the China Banking Association, pointed to various issues hampering growth. As the criteria used to evaluate officials’ performance change, local officials might be less motivated in wooing investment, Ba said, also citing rising labor costs as a problem.  Enditem

 

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Roundup: China-Pakistan Economic Corridor gains momentum in Pakistan

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by Chen Peng
ISLAMABAD, Aug.19 (Xinhua) — The Construction of the China- Pakistan Economic Corridor (CPEC) is now gaining momentum in Pakistan after Chinese President Xi Jinping visited the country in April, companies involved in the massive project said.
The CPEC, a 3,000-km network of roads, railways and pipelines linking Kashgar in northwest China’s Xinjiang Uygur Autonomous Region and southwest Pakistan’s Gwadar Port, is also a major project of China-proposed “Belt and Road” initiative.
The Silk Road Economic Belt and the 21st Century Maritime Silk Road, proposed by Chinese President Xi Jinping in 2013, are aimed at reviving the ancient trade routes that span Asia, Africa and Europe.
During Xi’s visit, China and Pakistan agreed to form a “1+4” cooperation structure with the CPEC at the center and the Gwadar Port, transport infrastructure, energy and industrial cooperation being the four key areas to achieve a win-win result and common development.
On April 20, ground-breaking of five power projects was jointly done by the Chinese president and Pakistani Prime Minister Nawaz Sharif via video link. Among the projects, Zonergy 900 MW solar power plant is likely going to be the first one to be put into Pakistan’s national grid.
The 1.5-billion-U.S.-dollar project, the largest solar power plant in the world located in Bahawalpur of eastern Pakistan’s Punjab Province, is being developed in three phases and is expected to be completed by the end of 2016.
According to Zonergy Company Limited, the first 50 MW of the project is near completion and is going to be energized soon. Before the end of this year, 300 MW will be added to Pakistan’s national grid.
In addition to the Zonergy project, a number of new energy projects, being constructed by Chinese companies, are also proceeding steadily.
The 1.65-billion-dollar Karot hydropower plant, the first investment project of the Silk Road Fund, is being developed by the China Three Gorges Corporation. Construction of the 720 MW project will begin at the end of this year and the plant is expected to be put into operation in 2020.
The Port Qasim coal-fired power plant, the first started project in the energy sector under the CPEC framework, is being constructed by Powerchina Resources Limited. The 2.085-billion- dollar project would start operation by the end of 2017.
According to Punjab Chief Minister Shahbaz Sharif, the CPEC projects are very important for power supplies in the country. He said earlier this month when meeting a Chinese delegation that Pakistan would be able to overcome energy crisis with the cooperation of its brotherly neighbor.
Tangible progress has also been made in transport infrastructure. China Road and Bridge Corporation told Xinhua that realignment project of the Karakorum Highway (KKH) at Attabad Barrier Lake is going to be completed by the end of this month. Prime Minister Sharif is expected to inaugurate the project. The KKH, the only land route between China and Pakistan, will re-open to traffic after being cut off by a barrier lake for over five years.
The Economic Coordination Committee of Pakistan’s cabinet said on Aug. 12 that contracts for constructing two other road projects of the CPEC worth 3.5 billion U.S. dollars will be awarded to Chinese companies through bidding. The two projects, 2.6-billion- dollar Karachi-Lahore Motorway and 920-million-dollar Karakoram Highway upgrade Phase-II, are earmarked for early completion under the CPEC framework.
Last month Pakistan’s Chief of Army Staff Gen. Raheel Sharif inspected the under-construction road network as part of the CPEC. According to the army, 502 km out of the 870-km road network linking the Gwadar Port with the rest of the country have been completed by Frontier Works Origination (FWO). During the inspection, the army chief also vowed that the CPEC “will be built at all costs.”
The Gwadar Port started its long-awaited operations on May 11 as the first private container vessel docked at the deep-sea port. Local fish was exported to the international market through containerized shipment. Speaking at the commencement ceremony, Pakistani Ports and Shipping Minister Kamran Michael said a new dimension was added to the history of the Gwadar Port.
For industrial cooperation, the two countries are planning industrial parks. According to local media, the Pakistani government has proposed 29 industrial parks and 21 mineral economic processing zones in all four provinces. A joint working group would decide and identify the industrial parks, said Pakistani Minister for Planning, Development and Reform Ahsan Iqbal, who hailed the CPEC as a “game changer” and a once-in-a- lifetime opportunity for Pakistan.
The Pakistani government has shown strong willingness to push forward the construction of the CPEC. During a high-level meeting held in Islamabad on July 27 to review the pace of work on CPEC projects, Prime Minister Sharif directed that projects under the CPEC be put on fast-track through mobilization of resources and completion of financial and technical formalities.
His endorsement for the projects is also shared by Pakistani President Mamnoon Hussain, who said in his message on the country’ s 69th Independence Day on Aug. 14 that the CPEC “will lead to economic revival in Pakistan.”  Enditem

 

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Top story : New rules on officials’ environmental responsibility

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    BEIJING, Aug. 18 (Xinhua) — A new regulation on holding officials accountable for environmental hazards will better define their professional responsibilities, according to Communist Party of China (CPC) experts.     The general offices of the CPC Central Committee, and the State Council on Monday published the regulation, which promises to trace environmental problems to whoever was originally responsible.     Officials will be held accountable for serious environmental problems resulting from improper implementation of central authorities’ policies, as well as violations of laws and regulations.     Central- and local-Party officials, and governmental officials at county level and above will be subject to a lifelong-liability system, meaning any corruption or dereliction of duty that caused serious environmental harm can be punished retroactively, according to the document.
Officials will be held responsible if they fail to effectively carry out supervision, or approve environmentally disqualified projects, or attempt to shirk the responsibility of protecting the environment.
Moreover, the regulation banned promotion for officials found guilty of misconduct, and officials will receive an unfavorable appraisal in their performance assessment.
Xia Guang, director of the Policy Research Center for Environment and Economy under the Ministry of Environmental Protection, said the new regulation clearly defines the official “dos and don’ts”.
Moreover, according to Zhang Yuxing, a chief engineer with the Survey Scheme Designing Institute under the State Forestry Administration, the conduct of both Party and government officials will now be under equal scrutiny.
“This will force officials to give environment issues greater consideration,” he said.
It was noted that the new regulation not only promises retrospective punishment but will also identify violations before too much damage is done.
However, observers have warned that the regulation needs more specifications if it is to be effectively enforced.
Wang Yi, director of the Institute of Policy and Management under the Chinese Academy of Sciences, stressed that detailed issues such as basic data collection and verification needed more attention.
Published on Monday, the new regulation took effect on Aug. 9, just days before massive warehouse explosions in Tianjin, which are thought to have contaminated the surrounding area with dangerous chemicals.
China’s State Council on Tuesday announced a team had been assigned to “investigate the cause of the explosions” and “determine liability.”  Enditem

Source Xinhua

 

 

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China’s policy banks CDB, Exim Bank receive USD93 bln injection

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BEIJING, Aug. 19 (Xinhua) — China Development Bank (CDB) and the Export-Import Bank of China (Exim) has respectively received 48 billion U.S. dollars and 45 billion dollars of capital injection from foreign exchange reserve of the People’s Bank of China, the central bank.
An official from the central bank said the capital injection would further help the two banks improve capital strength as well as their ability of risk resistance and sustainable development, thus play a better role in providing financial supports for key areas as a policy bank.
The plans for reforms of the CDB, the Exim Bank and Agricultural Development Bank of China were approved by China’s top policymakers in December 2014 and March 2015. Enditem

 

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Net FDI into China’s financial institutions at USD4.138 bln in Q2, SAFE

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  BEIJING, Aug. 19 (Xinhua) — The net inflows of foreign direct investment (FDI) into the financial institutions on the Chinese mainland were 4.138 billion U.S. dollars (25.327 billion yuan) in the second quarter of this year, official data showed on Wednesday.
According to the State Administration of Foreign Exchange, FDI inflows into Chinese mainland’s financial sector, including banks, insurers, and securities firms, reached 4.432 billion U.S. dollars (RMB27.127 billion) in the second quarter of the year, while FDI outflows amounted to 294 million U.S. dollars (RMB1.8 billion) in the same time period.
The statistics only cover equity investments that enable an investor to own 10 percent or more of voting stocks in a company. Enditem
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Net ODI of China’s financial institutions at USD2.309 bln in Q2

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BEIJING, Aug. 19 (Xinhua) — Financial institutions on the Chinese mainland reported net outward direct investment (ODI) of 2.309 billion U.S. dollars (14.129 billion yuan) in the second quarter of the year, according to China’s top foreign-exchange regulator on Wednesday.
Data from the State Administration of Foreign Exchange showed that ODI outflows from Chinese mainland’s financial institutions, including banks, insurers, and securities firms, reached 6.146 billion U.S. dollars (37.615 billion yuan) in the second quarter of the year, while ODI inflows amounted to 3.837 billion U.S. dollars (23.486 billion yuan) in the same time period.
The calculations only cover equity investments that enable an investor to own 10 percent or more of voting stock in a company. Enditem

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China increases tax breaks for small businesses

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China increases tax breaks for small businesses
BEIJING, Aug. 19 (Xinhua) —  The State Council, China’s cabinet, on Wednesday decided to extend tax breaks to more small businesses for their roles in generating jobs and growth.
From Oct. 1, 2015 to the end of 2017, companies with annual taxable income under 300,000 yuan (46,900 U.S. dollars) will have their corporate tax halved, said a statement released after a meeting chaired by Premier Li Keqiang. Previously, the threshold was 200,000 yuan.
The meeting also extended tax breaks for companies with a monthly revenue of 20,000 to 30,000 yuan from the end of 2015 to the end of 2017. They will be exempted from value-added tax and business tax.
The move is the latest attempt to help small businesses, as they provide nearly 80 percent of urban jobs.
In the first six months, about 2.39 million small and micro enterprises in China paid reduced taxes, savings them about 8.6 billion yuan,  according to figures from the State Administration of Taxation. Enditem
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Turnover of China’s rare earth exchange surges in first 7 months

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HOHHOT, Aug. 11 (Xinhua) — Turnover of China’s rare earth exchange surged drastically in the first 7 months of this year due to declining prices and rising demand.
The Baotou Rare Earth Products Exchange processed 116,400 tonnes of products in the first 7 months, with a trading volume of 15.755 billion yuan (2.57 billion U.S. dollars), up 277 percent compared to the full year of 2014, according to Gu Ming, the exchange general manager.
“The drastic price decline of rare earth products invigorated the market demand,” Gu said.
During the first six months of this year, the average export price of rare earth products was 32,000 yuan per tonne, down 34.7 percent from the same period of last year, according to local customs.
As of the end of July, about 120 rare earth enterprises and agents had opened accounts in the exchange, said Gu.
The exchange will compile the rare earth price index and promote cross-border e-commerce in the near future, he said.
China began setting quotas and high duties on rare earth exports in 2010, causing friction with the European Union, Japan and the United States. Quotas were removed on Jan. 1 this year, and export duties were canceled in May after a WTO ruling in August 2014 declared the measures inconsistent with WTO rules and China’s accession protocol.
The Baotou Rare Earth Products Exchange was launched in March 2014 in north China’s Inner Mongolia Autonomous Region. It was initiated by China North Rare Earth Group Co. Ltd, the country’s leading rare earth producer, and another 12 firms and institutions with a registered capital of 120 million yuan.
Rare earth metals are vital for manufacturing high-tech products ranging from smartphones and wind turbines to electric car batteries and missiles.  Enditem
Business, China

China money market turnover up 115.8 pct o-y to RMB52.2 trln in July

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BEIJING, Aug. 19 (Xinhua) — China’s money market turnover soared 115.8 percent year on year to 52.2 trillion yuan in July, according to a monthly financial market report released by the Chinese central bank on Wednesday.
During the first seven months, the money market turnover amounted to 251.8 trillion yuan, registering a year-on-year increase of 84.7 percent.
Interbank weighted average offered rate rose 7 basis points (bp) from the preceding month to 1.51 percent and average pledged bond repo rate gained 2 bps month on month to 1.43 percent in July. Enditem

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Securitization in China helps global investors to RMB assets: S&P

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BEIJING, Aug. 19 (Greenpost) — Global investors are focusing more on renminbi assets in China, primarily to diversify asset allocation and seek higher returns amid the prospering economy, according to a report by Standard & Poor’s Ratings Services.
China-currency

Ongoing improvements in self-governance and information transparency in the securitization market are likely to support the development of China’s capital market, according to “China securitization: linking international investors and renminbi assets”, released Tuesday by the leading rating agency.
“China’s securitization market is small compared with its bond market, but its evolution might indicate answers to some questions regarding China’s capital markets,” said Standard & Poor’s credit analyst Vera Chaplin.
Starting in late 2014, a number of infrastructure enhancements in China’s securitization market had raised issuance efficiency and promoted market self-governance, while narrowing information gaps, Chaplin noted.
For instance, the formal information disclosure requirements in China’s asset-backed securities (ABS) and residential mortgage-backed securities (RMBS) securitization, set out by China’s National Association of Financial Market Institutional Investors in May, enhanced transparency and enabled investors to better understand the performance of transactions.
The result has been an increase in interest from international investors, he said.
Participation of global investors are believed to benefit China’s capital markets. Apart from providing additional capital, a more international scheme will support funding diversity for issuers and promote market infrastructure construction to meet international standards.
“More than 140 billion yuan (21.9 billion U.S. dollars) in securitization transactions was issued under the two major securitization schemes in China in the first six months of 2015,” Chaplin said.
“The transactions reveal a standardized platform for asset collections and how to allocate assets’ economic value, the disclosure of more information so that risks could be analyzed, and the isolation of asset sellers’ credit risk,” Chaplin said.
“As a result, international investors now have an opportunity to reach economic sectors that in the past they could not because of the smaller scale of the issuers or difficulties involved in finding the value of the assets,”  Enditem

 

Why Chinese currency has two names? Yuan and Renminbi. You can read more:   http://www.bbc.com/news/10413076
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BOC Cross-border RMB Index increases 21 points m-o-m in June

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BEIJING, Aug. 19 (Xinhua) — The Bank of China (BOC) Cross-border Renminbi (RMB) Index (CRI) increased 21 points month on month to 293 in June, according to the BOC on Wednesday.
The degree of activity in RMB cross-border transactions hit a record high in the month, and the degree of activity in RMB direct investment also witnessed year-on-year and month-on-month growth in June.
Meanwhile, the RMB under the current account saw a net inflow in June. Enditem

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Wang Jianlin named world’s richest Chinese

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   HANGZHOU, Aug. 19 (Greenpost) — Wang Jianlin, chairman of China’s property and entertainment giant Dalian Wanda Group, has overtaken Hong Kong’s Li Ka-shing to become the richest Chinese in the world, according to the new Hurun Rich List, reported Xinhua.

王健林
Wang’s wealth increased more than 50 percent year on year to 260 billion yuan (40.6 billion U.S. dollars) as of early June, Hurun Research Institute said in a press release on Wednesday.
王健林2

Hong Kong tycoon Li Ka-shing, 87, was the second richest with a fortune of 200 billion yuan and Jack Ma, founder and chairman of Internet giant Alibaba, was named third richest with wealth of 165 billion yuan.
The list includes 1,577 tycoons from 18 countries and regions worth a minimum 2 billion yuan. Of those listed, 302 are from Kong Kong, Macao, Taiwan and foreign countries.
Their combined wealth was 12.7 trillion yuan, equalling the annual gross domestic product of Russia.
王健林3

Rupert Hoogewerf, chair and chief Hurun Report researcher, said that Hurun had released this first rich for Chinese worldwide in response to global attention given to Chinese business people.
Hurun has released a China Rich List since 1999.   

Wang Jianlin started with real estate. In 2001, at a real estate yearly meeting, he was there together with Feng Lun, Alex Xu and Liu Yonghao as keynote speaker. 14 years later, he became the first richest Chinese while the others still very rich, but mostly focusing on real estate.

Wang has been transforming his real estate into cinemas and entertainment site. He also collected a lot of world famous art works.

He thinks internet is just a tool while Jack Ma is using internet to make numerous shops. Let’s see what will happen in the next 14 or 15 years.

Wang was born in Oct. 24, 1954. He joined the Chinese army in 1970 and graduated from Liaoning University in 1986.

Wang’s success benefitted from China’s opening up policy and the support of governments at various levels. It was also his own and his team’s wisdom to understand the leader’s will and transform his group a couple of times according to the trend.

Source Xinhua

Editor Xuefei Chen Axelsson

Energy, Environment, Green-tech, Indepth, News

Sweden’s strategy ahead of COP21

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Stockholm, Aug.19(Greenpost)–Sweden has drawn up a strategy that is to guide Sweden’s work ahead of the climate change conference, COP21, in Paris later this year, according to a statement published in the government website.

The strategy identifies priorities and positions in the Government’s climate policy at national, EU and international level.

The objectives and parts of the strategy

The overarching objective of the strategy is for the UN climate change conference in Paris in 2015 to result in a global, fair and legally binding climate agreement that helps to keep global warming as far below two degrees as possible over time. The strategy rests on three pillars:

  • Sweden is to be a leading country and tighten its national climate policy. Sweden is also pushing for the EU to raise its ambitions in terms of emissions reductions.
  • The new climate agreement needs to be dynamic so that countries’ binding emissions targets can be subsequently raised.
  • A good agreement will only be achieved if willing countries cooperate. Sweden is to prioritise cooperation with the countries that are also pushing for an ambitious agreement and that are most vulnerable to      the effects of climate change.

Climate change hits the already vulnerable the hardest

The effects of climate change affect all countries, but poor and vulnerable countries that do not have the resources to adapt to the changes are particularly hard hit. All countries must make the transition to a sustainable society with low emissions and high resilience to the effects of climate change. If done properly, a transition of this kind also has positive effects on economic development and poverty reduction, energy security and improved health, as well as important environmental targets such as clean air.

It is also important to take account of the challenges that come with such a transition. Sweden is encouraging a broader discussion on how the global investment flows can be aligned so that they support socially, economically and environmentally sustainable development with a considerably smaller prevalence of fossil fuels. Important global components include putting a price on carbon dioxide and not subsidising fossil energy.

Raised climate ambitions needed

A new climate agreement under the UN is crucial for international climate efforts. The agreement should be guided by science and include emissions commitments that, over time, can limit global warming to a level as far below two degrees as possible. This will require a higher level of climate ambition as well as new, enhanced initiatives in every country of the world and among central actors, including Sweden and the EU.

COP 21 can provide the political momentum to push forward a higher level of ambition concerning emission reductions also in the EU. Progress is needed regarding both emissions reductions and climate adaptation. Climate financing is important to strengthen climate action. Other tools and instruments for implementation, such as technology development, technology diffusion and capacity development, are also key to achieving the higher climate ambitions. Climate financing will be a crucial issue for whether the world can agree on a new climate agreement in Paris.

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Pressure remains on Chinese economy

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BEIJING, Aug. 12 (Xinhua) — Newly released economic indicators fell short of market expectations, revealing that the Chinese economy still lacks momentum and downward pressure remains.

China’s value-added industrial output, which measures the final value of industrial production, expanded 6 percent year on year in July, down from 6.8 percent for June, the National Bureau of Statistics (NBS) said Wednesday.

The decline in output growth ended a steady recovery trend recorded in the second quarter of this year.

NBS statistician Jiang Yuan attributed the drop mainly to flagging external demand, a weak property sector and lowered production of some consumer goods, including automobiles and cigarettes.

Year-on-year growth in the first seven months stood at 6.3 percent, the same level as the growth for the first half of the year.

The NBS data only tracks the output of large Chinese companies with annual primary business revenues of more than 20 million yuan (3.16 million U.S. dollars).

Industrial output in China’s western regions increased by 7.9 percent in July, trailed by 7.4 percent in central areas and 6 percent in eastern regions.

Manufacturing output rose 6.6 percent, mining output added 5.6 percent, while that of the electricity, heating, gas and water sectors dropped 0.2 percent, the bureau said.

China’s fixed-asset investment, a major driver of growth, also witnessed slightly slower growth, with no sign of improvement for investment in property and infrastructure.

Retail sales held steady in July, as the growth rate was just 0.1 percentage point lower than a month ago.

Qu Hongbin, chief China economist at HSBC, said the data fell below general market expectations.

The declining output and investment growth showed the rebound in June was just temporary and pressure for growth was again on the rise, Qu said.

“With gloomy prospects for external demand, China will still need to rely on domestic demand to maintain steady growth, indicating that future monetary and fiscal policies should continue to be relaxed,” he said.

China’s exports dropped 0.9 percent from a year earlier in the first seven months, according to new customs data.

A research note from Minsheng Securities also said China’s growth is still facing huge pressure and the country needs to make more efforts to realize its goal of annual economic growth of around 7 percent.

China should take more pragmatic measures to stabilize growth, including further cuts in the reserve requirement ratio (RRR) and more targeted measures to reduce long-term interest rates, Minsheng said.

Qu added that the disappointing figures will also reinforce the market’s expectations for further depreciation of China’s currency, the yuan, posing risks of overcorrection in the exchange rate, which may lead to retaliation from other countries.

On Tuesday, China’s central bank changed the exchange rate formation system to take into consideration the closing rate of the inter-bank foreign exchange market on the previous day, as well as supply and demand in the market and price movements of major currencies.

The central parity rate of the yuan weakened by about 1.6 percent against the U.S. dollar Wednesday, following a 2-percent depreciation on Tuesday.

HSBC forecast an additional 25-basis-point interest rate cut and a 200-basis-point cut to the RRR in the second half to sustain growth.

The central bank has cut both interest rates and the RRR three times since the beginning of this year. Enditem

Source Xinhua