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Saturday, May 3, 2014

China's economy close to overtaking USA in PPP measure this year but China don't read the ranking




China may be poised to overtake the United States as the world's top economy sooner than expected, according to one measure, but some underwhelmed Chinese would rather have clean air and political freedoms.

The World Bank on Wednesday published a vast study on the rankings of national wealth creation on the basis of 2011 figures.

It was carried out with several international organisations to compare national production figures in nominal terms, and also to reflect differences in buying power -- or purchasing power parity (PPP).

Gross domestic product (GDP) for the United States in 2011 amounted to $15.533 trillion, more than twice China's $7.321 trillion. As soon as this year.

But after adjusting for PPP, the figure for China rose to $13.495 trillion -- which means that the rapidly growing Asian giant could overtake the United States as soon as this year.

Thursday was a public holiday in China so official reaction was not immediately available. Communist authorities have in the past played down such talk, keen instead to stress that in per capita terms, their people remain a long way behind the world's richest nations.

But there was scepticism, and cynicism, among Chinese social media users.

"They are talking about PPP, not GDP," wrote one of them on Sina Weibo, China's version of Twitter.

"As long as GDP, China is still far behind US," continued the post, which was written in English and was echoed by several others.

Some weibo users suggested they were more interested in tangible indicators directly related to their quality of life.

"Low income, cannot breath freely, no freedom, why should I care even if it's No. 1 in the Universe? Not to mention No. 1 on Earth," wrote a user.

"Is this more important than blue sky and clear water?" posted another.

China's decades-long economic boom has brought rising environmental problems, with large parts of the country repeatedly blanketed in thick smog and both waterways and land polluted.

One user suggested that such rankings were more closely watched overseas than in China.

"No domestic reports about this, only foreign media always talk about it," the post said. - AFP

But China Don’t read too much into PPP ranking


The International Comparison Program, a project coordinated by the World Bank, released a new report with data suggesting that the size of the Chinese economy, by the measure of purchasing power parity (PPP), will surpass the US to become the biggest sometime this year.

The data, once released, drew keen attention from Western mainstream media, some of which even reported that China, which strongly questioned the accuracy of the report, had tried to stop the World Bank from announcing it for a long time.

PPP is usually employed by economists as a supplementary measure to evaluate the size of economies besides market exchange rate. The size of developing economies will be usually bigger when assessed in PPP terms instead of market exchange rate.

The statement that Chinese economy tops the world is not nonsense, but  such a vision is still too far away from what Chinese people can really feel. Although China has surpassed the US in certain economic spheres, the quality of the Chinese economy is far worse than that of the US.

It is a positive sign that the Chinese government has objected to the PPP-based conclusion, and the Chinese public cares much less than the Western countries about the top economic ranking. The mainstream society is aware of China's real economic conditions. China may lack confidence, but it won't sacrifice sense to acquire it.

The PPP-based statement, announced by Western economists and analysts, does not mean it is a conspiracy, as some alarmists think. What China should do is to keep calm, and know what exactly it means to the Chinese economy.

The report may serve as new catalyst for discussion in Western countries about China overtaking the US. It might be the start that they will discuss it in a serious way. The world will probably take new perspectives toward China's growth.

China also needs to adjust itself to avoid any false pride and self-centeredness. It has to keep a clear mind about what it really is, and minimize the impact caused by external forces.

For now, China cannot decide what image it has in the mind of the West, which still has a big say on this matter. But China has the initiative for its own actions. It doesn't have to wrestle with the West for image, but it must make sure the steps it takes for its own development are not dictated by the West.

China will become the No.1 economic power sooner or later, which is an irreversible trend. But China still needs foresight to guide its moves, and make sure the geopolitical changes in the Asia-Pacific area will generate more positive results.

China being the No.1 economic power is like a double-edged sword, which on the one hand will enhance the nation's confidence, but on the other hand pose great challenges to the improvement of people's wellbeing. Whether the crowning will produce more positive results instead of social problems will be a huge test for the Chinese society.

Source: Global Times Published: 2014-5-5 0:53:01

Apple's shine starts to fade

iPad boom slows as tablets lose out to smarter phones 


Between the iPad and its rivals, the tablet computer has become one of the most successful consumer electronic products ever. Apple (AAPL) has sold more than 210 million iPads since the device’s 2010 debut, about double the rate of iPhone sales in its first four years. The boom has helped the electronics industry make up for the drop in sales of desktop and laptop PCs. Suddenly, though, the market is slowing down.

Apple reported that iPad sales dropped by one-sixth last quarter from the same period a year earlier, and Microsoft (MSFT) said revenue from its Surface tablet, not robust to begin with, dropped about 40 percent after the holiday season. Amazon.com (AMZN) doesn’t break out sales, but according to researcher Gartner, it hasn’t moved up the market-share charts. Global tablet sales rose 19 percent in the first quarter, propelled by purchases of cheap models in emerging markets, but that’s paltry compared with growth of 83 percent during the same period last year and more than 100 percent during that period in 2012 and 2011, according to researcher Strategy Analytics.


The tablet’s early success has resulted in unrealistic expectations for the long term, says Horace Dediu, the founder of research and consulting firm Asymco. He’s surprised growth is slowing, because only about 40 percent of the U.S. market currently owns a tablet. For hot consumer electronics of previous generations, like color TVs and microwaves, this kind of decline in sales growth doesn’t usually happen until at least half the market has the product, he says. Tablets, Dediu adds, may ultimately prove to be more like game consoles: a large, valuable market that nonetheless cannot match the ubiquity of mobile phones. “It’s a very compelling product,” he says, “but isn’t of the same utility as a phone.”

Story: Apple Sells More iPhones Than Expected, Fewer iPads

As smartphones get bigger and do more, there are fewer good reasons for people to pony up several hundred dollars for a tablet, says Benedict Evans, an analyst and investor with the venture capital firm Andreessen Horowitz. Consumers are perfectly fine using their iPhone or Samsung Galaxy smartphone to browse the Web, play games, or scan e-mail while watching TV or lying in bed, Evans says, and that trend will likely continue as phone screens keep growing.

Demand is still growing for inexpensive tablets, notably some models from Samsung, Lenovo, and Asus, used mostly for watching video. Android tablet purchases grew 48 percent for the quarter, and grocery stores and retail chains, including Tesco (TSCO:LN) in the U.K. and Carrefour (CA:FP) in France, are selling their own branded tablets for less than $200. The gadgets, some as cheap as $50 in Asia, don’t have access to the range of apps or business software that an iPad does, but that’s not why people buy them. In Asia, Dediu says, the typical tablet user loads the device with TV shows, movies, and music: “The tablet is the TV of choice for Asia today.”

Tablets can’t easily replace PCs when it comes to crunching a lot of numbers, writing long reports, or making presentations. Jean-Louis Gassée, an Apple executive during the 1980s, says he’s frustrated by the limitations of the iPad, which doesn’t have a visible filing system that can organize and save documents. The simplicity that makes it easy for a wide audience to use, he says, limits its value for corporate customers or others who want such features. Along with many industry analysts, Gassée, now a general partner at venture capital firm Allegis Capital, says he expects Apple eventually to release an iPad that feels more like a PC.

Story: Microsoft CEO Nadella Pulls the Trigger on Long-Gestating Office Apps for iPad

Like Amazon and Microsoft, Apple, which generated $7.6 billion in iPad sales last quarter, declined to comment for this story. Chief Executive Officer Tim Cook, during an April 23 conference call with analysts, reiterated his belief that tablets will surpass PC sales in the next few years. He added: “Apple will be a major beneficiary of this trend.”

-  Contributed



Thursday, May 1, 2014

Better Internet governance, keys for Internet governance: standards and benchmarks


A series of non-obligatory international norms promoted at a recent Internet conference in Brazil will be helpful to the establishment of global Internet governance, but it remains urgent that some specific rules be worked out to ensure cyberspace is not used as a means for some countries to target others.

The United States National Security Agency's PRISM program disclosed by the Edward Snowden has aggravated the concerns of countries worldwide about cyberspace security and accelerated the push for better Internet governance.

In March, the US government announced that it will turn over the Internet Corporation for Assigned Names and Numbers, known as ICANN, which manages the core functions of the Internet, to a "global multi-stakeholder community". This, if implemented, would be a positive step toward improving global Internet governance. Nevertheless, the better management of cyberspace depends more on how to build a safe, open, equitable and orderly network environment for countries across the world, says an online article of People's Daily.

For the better governance of the Internet, the UN Charter and the universally recognized norms of international relations should be abided by, and the cyberspace sovereignty of each country, including the laws, regulations and policies each country has adopted regarding the Web should be respected.

All countries should be empowered to manage their information facilities and conduct Internet activities within their territory in accordance with their laws, and their information resources should be free from any external threats.

An Internet governance framework should also be built on the principles of tolerance, equality and extensive participation from multiple parties. All countries, big or small, rich or poor, should be allowed to participate in Internet governance and equally share the opportunities brought by booming information technologies. The making of relevant Internet standards, rules and policies should be based on openness, transparency and fairness, and developed countries should help developing ones to develop their network technologies.

And while enjoying their own Internet rights and freedom, countries should not compromise the information freedom and privacy of other countries.

To promote better Internet governance, the voices of all countries should be respected and their coordination is needed to make cyberspace rules acceptable to all.

- China Daily

The key for Internet governance: standards and benchmarks

A global Internet governance conference in Brazil concluded last Tuesday with a strong demand for building an effective worldwide legislative framework, while a series of Internet-related optional standards had been drafted.

The Internet has spread its influence into every aspect of life around the world. But while people enjoy the conveniences that the Internet brings, they are also starting to worry about security and privacy issues and the possible negative impacts of the Internet. Last year, revelations about the American “Prism” program triggered global concerns about surveillance, resulting in calls for protecting the individual, and strengthening Internet governance

Last month, the U.S. announced its plans to turn over the Internet Corporation for Assigned Names and Numbers, known as ICANN, to a “global multi-stakeholder community”, which sent a positive message to the world. But the obligations of Internet governance should go beyond IP address allocation into control of Internet technical standards and a focus on how countries can build a secure, open, transparent, and ordered web environment.

Internet governance should admit and respect a self-regulated space free of government interference in all countries, subject to a country’s level of technology, language, and culture, and people’s wishes in terms of relevant legislation. A country should also be able to supervise its information infrastructure, information resources, and online activities in accordance with laws designed to protect the interests of its people.

Internet governance should focus on extensive cooperation among all stakeholders against a backdrop of a tolerant and fair attitude. Any country, big or small, rich or poor, should have both the obligation to participate in Internet governance, and the right to enjoy opportunities created by IT development.

Internet governance should uphold open, transparent, and win-win principles for general cooperation. The decision-making on Internet standards, rules, and policy should be open and transparent; developed countries should be encouraged to help developing countries in improving network techniques and narrowing the information gap.

Internet governance should insist on both rights and obligations. A country should uphold the right to privacy by ensuring the effective implementation of all obligations under human rights law. Everyone should be able to enjoy the right to and freedom of the Internet, subject to not damaging the interests of other people or the country, and not breaking the law or damaging social morality.

The key for global Internet governance is to promote close cooperation among countries, and build a practical network of international Internet-related rules and standards. All opinions and proposals from all countries should be heard with equal importance while defining rules suitable for all countries.

- The article is edited and translated from 《互联网治理,规范和标准是关键》, source: People's Daily

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