Just In Time:Countering Beijing's Move

China's recent declaration of a new Air Defence Identification Zone through established international airspace over the East China Sea has been bitterly criticised in the Asia Pacific region and elsewhere;not to mention challenged by US Air Force B-52H bombers.It was critical for the Air Force to quickly assert its right to be in the airspace,analysts point out,lest China's claim to the airspace be legitimised through inaction.*
The bombers were deployed to Guam in August to further America's pivot to the Pacific strategy.What we do day to day with this presence mission is show our ability to fly our airplanes around the Pacific theatre and support whatever contingincies we might be asked to do,said Lieutenant Colonel Scott Mayhan,USAF,commander of the 20th Bomber Squadron based at Barksadale Air Force Base,Louisiana.The continuous bomber presence maintains long term strike capability in theatre,so our national decision makers have assets that they can use sould they ever need to,the commander added.*
In the event,China did not launch fighter aircraft to intercept the unarmed bombers when the Air Force declined to file a flight plan with China under the new zone requirements;nor has Beijing commented to Washington about the incident.This does not mean China will not eventually ramp up its response in defence of its claim.China plays a long haul game,analysts point out,and may just be waiting for a while before taking aggressive action to defend its perceived territory.It will also continue building up its naval and air power beyond what is needed to defend the mainland,a trend that has alarmed the international community for some years now.*
US Secretary of Defence Chuck Hagel said the new zone will not in any way change how the United States conducts miltary operations in the region.We see this development as a destabilising attempt to alter the status quo in the region.This unilateral action increases the risks of misunderstanding and miscalculations.Mr.Hagel's remarks were echoed by new US Ambassador to Japan Caroline Kennedy on Wednesday.*
Vice President Joe Biden will be visiting China next week,as well as US allies Japan and South Korea.He will empahsise that America is and always will be there for its allies in the region,while seeking a new and better way to get along with China,a senior administration official said.

Voices and Trends in Global Business,July 2013

Apple has been slowing iPhone production,said Brian Blair,a senior research analyst at Wedge Partners.We believe there's been a 20% haircut to iPhone production.Most of the component suppliers will stay the same,despite the cuts. Apple's been cutting because they've been watching market leader Samsung,which hasn't been selling as many smart phones as they thought they would.The market for high end smart phones is slowing,and Apple's been responding to that. The IMF has cut its annualised global growth forecast from 3.3% in April to 3.1% in July.Their forecasts for commodity prices,as well as Russian,Brazilian and Spanish growth,were also lowered.The cause of the revision is the downturn in emerging markets and the lengthy Euro-zone recession. Hong Kong property agents marched against government price curbs over the weekend.Up to 5500 agents demonstrated,appalled at the fact that Q2 real estate transactions were at a two decade low because of new taxes and marketing restrictions.About a third of estate agents stand to lose their jobs in consequence. The government measures are making things worse,according to Michael Kilbaner of Jones Lang Lasalle.The rise in property prices both reflects and impacts the strength of the economy.A lot of the movement is really in tier one and upper echelon tier two property.A two bedroom flat in Hong Kong goes for a half million US dollars,with a similar price in Beijing.

Niederauer Tours Asia

Duncan Niederauer,CEO of NYSE/Euronext,has been touring Asia recently.He found China to be pretty optimistic.Visiting Beijing and Shanghai,he saw plenty of evidence of China's stimulus at work,he said.They're gonna leave no stone unturned for the Shanghai Expo,Mr.Niederauer observed.
Mr.Niederauer also spent a lot of time in India.What sets India apart is a lot more domestic demand,he noted.I think India can weather the storm because of the domestic demand that's so inherent,while China is trying to build up areas away from the coast.They're exploring opening up their market,allowing initial public offerings.I think they're gonna go step by step,being very conservative,the NYSE/Euronext executive remarked.