
Chart: New York Times
Quotes from around China this week.
“This is an odd time to be making confrontation over China’s currency a centerpiece of your economic policy — unless, of course, it’s just bluster aimed at making voters think you’re tough.”
New York Times columnist Paul Krugman on the likelihood of Chinese currency manipulation being mentioned in the final presidential debate (it was). Although Krugman supported taking a tougher line in 2010, he now says that high inflation in China and appreciation of the RMB have basically made the issue moot. New York Times
“The trend is just like what happened some 10 years ago when many manufacturing industries in Hong Kong and Taiwan moved to the Pearl River Delta to chase cheap labor. But now you can see how much our labor costs have gone up.”
Chen Jian, a general manager of a garment company headquartered in Foshan, discusses the recent trend of manufacturers relocating to neighboring Southeast Asian nations due to rising wages and shrinking export demand. China Daily
“China is approaching a stage when the government must embrace more fundamental reforms.”
Shi Xiaomin, vice president of the China Society of Economic Reform, a think-tank under the National Development and Reform Commission, comments on the decision made by China’s top leaders to ask policy think-tanks to draw up their most ambitious economic reform proposals in decades. Reuters
“With the Petronas objection, all eyes are on the Cnooc-Nexen deal now.”
A mergers-and-acquisitions banker advising Chinese companies says that Canada’s rejection of the Petronas bid of approximately 5.18 billion Canadian dollars ($5.21 billion USD) is creating a lot of uncertainty over a much larger pending deal - the $15.1 billion USD agreement by Cnooc Ltd. of China to acquire Nexen Inc., one of Canada’s largest independent energy producers. Wall Street Journal
“Once [the developers] finish demolishing the house, finish beating you, you call the police. When they come they’re not even wearing hats. They smoke their cigarettes, they take a look around, and then they leave.”
Beijing resident Liu Yunge on having his home demolished by “gangsters.” 2non.org
“A lot of news has been written, some true, some only joking. Don't take it seriously.”
Mo Yan expresses caution over a report stating that officials in his hometown in Shandong Province came up with a 670-million-yuan plan to turn his village into a tourist attraction. People’s Daily
“In China we've got a key customer who is really motivated by national food-security issues.”
Devon Archer, the Prospect Global Resources director who helped negotiate a $2 billion 10-year potash supply agreement with Sichuan Chemical Industry Holding, discusses the importance of the deal which guarantees China a steady supply of the crucial fertilizer. Reuters