In Monday's Asia papers
12 April 2004 03:45 [Source: ICIS news]
A summary of political, economic, trade, business and product news affecting the chemical and related industries.
International Economics & Politics
Japan, US set for talks on Iraq, N Korea
Japan's Prime Minister Junichiro Koizumi and US vice-president Dick Cheney will hold talks in Tokyo later Monday that are expected to focus on Iraq and North Korea. The issue of three Japanese nationals taken hostage by Iraqi militants is likely to be high on the agenda as their fate remains unknown. Koizumi is expected to ask the US to help resolve the hostage crisis and reiterate Japan's determination to keep the Self-Defense Forces troops deployed in the southern Iraqi city of Samawah for reconstruction efforts. Cheney arrived in Tokyo on Saturday (10 April) for a four-day stay on his first trip to Japan since he became vice president in January 2001. It is the first leg of his three-nation Asian tour that will also take him to China and South Korea. On North Korea, Koizumi and Cheney are expected to call for a complete, verifiable and irreversible dismantlement of all North Korean nuclear programs through the six-nation talk framework, and to reaffirm the need to launch a six-nation working group. Koizumi is also expected to seek continued US support for resolving the issue of Japanese nationals abducted by the North in the late 1970s. China, Japan, North and South Korea, Russia and the US failed to achieve a major breakthrough on the North Korean nuclear standoff at the second round of the six-nation talks which took place in Beijing in late February. But the six agreed to hold a third round by end June and create a working group to advance the six-nation process.
Nihon Keizai Shimbun, Japan (online edition)
Seven Chinese citizens kidnapped in Iraq
Seven Chinese citizens became the latest foreigners to be kidnapped in Iraq when they were abducted by an armed group, state media quoted a Chinese diplomat in Baghdad as saying. The captives were reportedly in good health and not handcuffed, but it remained unclear what the kidnappers would do with them. Chinese officials were not immediately available for comment. The reported kidnappings came a day before US vice-president Dick Cheney was due to arrive in Beijing on Tuesday (13 April) straight from a visit to Tokyo overshadowed by the kidnapping of three Japanese civilians in Iraq. China, a permanent member of the United Nations Security Council, resolutely opposed the invasion of Iraq and has refused to send troops to help police the US-led occupation. Armed groups are now believed to be holding dozens of foreigners captive in Iraq as bargaining chips.The dangers to foreign civilians were further underscored on Sunday (11 April) when Germany said that two of its missing nationals were probably dead. Insurgents, calling themselves the 'Mujahedeen of Iraq to US forces' meanwhile threatened to kill a presumed American citizen, identified as Thomas Hamill, unless the siege of Fallujah by US Marines was lifted. The threat echoed those made on Saturday by the group that claimed it was holding 30 foreign hostages from Japan, Bulgaria, the US, Israel, Spain and South Korea.
Channel News Asia, Singapore (online edition)
China Daily, China (online edition)
Nihon Keizai Shimbun, Japan (online edition)
Lucent allegations highlight business risks in China
Allegations that sacked Lucent Technologies senior executives in China broke US anti-corruption laws by offering bribes highlight the risk for foreign multinationals of doing business in China. Despite official pledges to stamp out rampant corruption, China is a country where graft is rife, commercial laws underdeveloped and the legal system is subject to the whims of the ruling communist party's mandarins, experts said. China has a bad reputation for corruption, said Bob Broadfoot, managing director at Political and Economic Risk Consultancy in Hong Kong. In China, it is common for those bidding for business to offer potential customers kickbacks ranging from education overseas for senior executives' children, gifts of residential property, to cars and paid holiday travel. Chinese government efforts to stamp out such practices have met with opposition and disobedience, particularly at the local government level where bribery is firmly entrenched. Foreign and domestic firms often chose to accept those incentives demanded and viewed as routine by customers, as a cost of doing business in what is potentially the world's largest market. Low wages, competition, pressure to cut costs and a relatively low risk of detection means corruption is almost unavoidable in China, said Duncan Clark, managing director at BDA China, a telecom consultancy firm.
Allegations that sacked Lucent Technologies senior executives in China broke US anti-corruption laws by offering bribes highlight the risk for foreign multinationals of doing business in China. Despite official pledges to stamp out rampant corruption, China is a country where graft is rife, commercial laws underdeveloped and the legal system is subject to the whims of the ruling communist party's mandarins, experts said. China has a bad reputation for corruption, said Bob Broadfoot, managing director at Political and Economic Risk Consultancy in Hong Kong. In China, it is common for those bidding for business to offer potential customers kickbacks ranging from education overseas for senior executives' children, gifts of residential property, to cars and paid holiday travel. Chinese government efforts to stamp out such practices have met with opposition and disobedience, particularly at the local government level where bribery is firmly entrenched. Foreign and domestic firms often chose to accept those incentives demanded and viewed as routine by customers, as a cost of doing business in what is potentially the world's largest market. Low wages, competition, pressure to cut costs and a relatively low risk of detection means corruption is almost unavoidable in China, said Duncan Clark, managing director at BDA China, a telecom consultancy firm.
Channel News Asia, Singapore (online edition)
Some 15 000 pro-democracy protesters in Hong Kong took to the streets on Sunday (11 April) to protest China's interpretation of the SAR's Basic Law. The show of strength is likely to disturb Beijing but so far, there has been no reaction from China. The demonstrators said that with the interpretation, the central government has killed the spirit of democracy in Hong Kong. So, the protesters, of all ages and backgrounds, wore the Chinese traditional mark of mourning -- a black band. The plan was to march from the Central District to Beijing's liaison office in the west. Things took a tense turn when the police decided to break up the masses of protesters by separating some groups and rerouting others. But the protesters were determined to stay on course. That is believed to be the first time a protest has been taken to the Central Government's headquarters. Because of that, police were extra vigilant about security. Steel barricades were set up around the liaison office from the night before. Beijing might have hoped that by interpreting the Basic Law, it could end months of heated debate in Hong Kong over direct elections. But, as far as the protesters are concerned, it is not a done deal. They are refusing to be silenced. More protests and demonstrations are planned in the coming months
Channel News Asia, Singapore (online edition)
South China Morning Post, Hong Kong (online edition)
US expert: Chen's bullet wound not self-inflicted
US forensic expert Henry Lee has ruled out one of the more outlandish theories in the election-eve shooting of President Chen Shui-bian when he said it was not self-inflicted. Various allegations have been made about the mysterious 19 March incident -- all of which Chen has denied -- among them that he shot himself before starting a campaign trip to southern Tainan city on an open-topped jeep in order to win voters' sympathy. Lee, speaking to reporters at the end of a two-day visit during which he examined physical evidence and the wound on Chen's belly, said the president had been shot and that "the shooting is not self-inflicted". Bullets grazed Chen and Vice-President Annette Lu as they were campaigning in an open-topped jeep in the southern city of Tainan. No-one has been arrested for the shooting. Citing the crack found on the jeep's windshield glass and the pulverised glass on the front seat, Lee confirmed one bullet had hit the windshield before it wounded Lu, and that the other hit Chen's belly. But Lee would not say if the shooting was staged by Chen or his Democratic Progressive Party, another theory raised by the opposition. However Lee said that now he has become more confident in the solving of the case by the Taiwanese police shortly before his departure for Hawaii.
Channel News Asia, Singapore (online edition)
Taipei Times, Taiwan (online edition)
Independence activist is new foreign minister
A pro-independence activist has been appointed as Taiwan's new foreign minister, after his predecessor stepped down following the resignation of the head of the de facto US diplomatic mission in Taipei amid a policy row. Prime Minister Yu Shyi-kun announced that Chen Tan-sun, a pro-independence Democratic Progressive Party parliamentarian and former head of an independence lobby group, would replace the outgoing Eugene Chien. He offered to step down on Friday (9 April) following the resignation of Therese Shaheen, head of the de facto US diplomatic mission to the island, the American Institute in Taiwan (AIT). Chien said he had bungled the handling of Shaheen's resignation, but declined to elaborate. Some observers said his decision was linked to his push for Shaheen's congratulations on President Chen Shui-bian's 20 March re-election. She eventually congratulated Chen before the White House issued a message, Taiwanese papers have reported. Shaheen was managing director of the Washington head office of the AIT, set up in 1979 to handle US-Taiwan ties after Washington switched diplomatic recognition to Beijing that year. In her resignation letter Shaheen cited family reasons for her resignation but senior State Department officials said they had expected her to quit as she had drawn intense criticism for failing to properly represent US policy on Taiwan and China.
Independence activist is new foreign minister
A pro-independence activist has been appointed as Taiwan's new foreign minister, after his predecessor stepped down following the resignation of the head of the de facto US diplomatic mission in Taipei amid a policy row. Prime Minister Yu Shyi-kun announced that Chen Tan-sun, a pro-independence Democratic Progressive Party parliamentarian and former head of an independence lobby group, would replace the outgoing Eugene Chien. He offered to step down on Friday (9 April) following the resignation of Therese Shaheen, head of the de facto US diplomatic mission to the island, the American Institute in Taiwan (AIT). Chien said he had bungled the handling of Shaheen's resignation, but declined to elaborate. Some observers said his decision was linked to his push for Shaheen's congratulations on President Chen Shui-bian's 20 March re-election. She eventually congratulated Chen before the White House issued a message, Taiwanese papers have reported. Shaheen was managing director of the Washington head office of the AIT, set up in 1979 to handle US-Taiwan ties after Washington switched diplomatic recognition to Beijing that year. In her resignation letter Shaheen cited family reasons for her resignation but senior State Department officials said they had expected her to quit as she had drawn intense criticism for failing to properly represent US policy on Taiwan and China.
Channel News Asia, Singapore (online edition)
Taipei Times, Taiwan (online edition)
Korean business, consumers differ on economy
In a further sign of an unsynchronised economy, the Bank of Korea reported a rise in business sentiment on Friday (9 April), a day after a government index showed a drop in consumer confidence. The central bank's survey index of 2902 companies on their performance in March rose to 81 from 77 in February, snapping three months of decline. A reading below 100 suggests pessimists outnumber optimists, but the higher score suggests that the situation has eased somewhat. Earlier Thursday, the National Statistical Office said the consumer confidence index slipped for a second month, signaling that people would further tighten their purse strings despite burgeoning hopes for a recovery in consumption. Reflecting the clear divide between external and internal demand, the central bank's survey index of big businesses, which lead the nation's exports, continued to overshadow that of smaller firms that rely mostly on domestic sales. The reading for large companies' performance in March came to 92, the highest since January 2003, versus 87 in February. Despite the protracted imbalance, Korea's financial policymakers are maintaining a rosy outlook. Minister of Finance and Economy Lee Hun-jai forecast that private spending and capital expenditures, which contracted 1.4% and 1.5%, respectively, in 2003, should pick up from end of June..
Korea Herald, South Korea (online edition)
The former political party of Indonesia's ex-dictator Suharto has snatched back the lead in the country's legislative polls as the sluggish vote count topped 72m ballots. Six days after the 5 April election, the Golkar party displaced President Megawati Sukarnoputri's ruling Indonesian Democratic Party of Struggle (PDI-P) with a thin lead of just 15 407 votes. Golkar's total now stands at 14 857 000 votes or 20.39% of the votes tallied, according to figures provided by Indonesia's election commission. More than 147m people were eligible to cast their votes in Monday's elections in the world's third largest democracy. So far 72.8m votes have been counted, with turnout estimated at around 80%. PDI-P had taken over the lead from Golkar on 7 April but its margin was always frail, with the former ruling party close behind. Golkar's lead was predicted by a coalition of four election study groups on 6 April, which said that based on watching vote-counting Golkar would take almost 23%. It said the PDI-P would come second with about 19%. Although the 5 April ballot was a legislative election, maneuvering for the 5 July presidential race -- the first direct vote for the country's top position -- was already hotting up. Analysts said Megawati now faces a battle to hold on to her job as millions of voters have been alienated by her aloofness and have deserted her party. With no single party holding a clear majority, politicians have said that building coalitions between several parties is now vital for the presidential race.
Channel News Asia, Singapore (online edition)
Jakarta Post, Indonesia (online edition)
Ex-MP, village chief killed in south Thailand
Ex-MP, village chief killed in south Thailand
A former member of parliament (MP) and a village chief were gunned down in Thailand's Muslim-dominated south at the weekend (10-11 April), becoming the latest victims in a wave of violence that has left at least 60 people dead this year, police said. The shootings came while Thailand was on high terror alert over the traditional new year holiday Songkran, which began on Saturday, amid concerns that militants from the south could mount a major attack. At least 60 people, mainly security personnel and government officials, have been killed in violence that has plagued Thailand's deep south since early January. On Friday, two bombs exploded in Narathiwat, causing little damage and no casualties but rattling a region already on edge. Prime Minister Thaksin Shinawatra and his lieutenants have blamed the unrest on Islamic separatist groups, some of which are thought by analysts to have links to regional or international terror networks. Fears of a major attack over the week-long Songkran festivities have prompted advisories from the US, Britain and Australia for travelers to avoid the region. Security agencies have been put on high alert across the country, especially in southern provinces believed to be targetted by militants. Thai military intelligence reportedly released a report warning that the commercial heart of Hat Yai, the capital city of southern Songkhla province, could be targetted, and that young men were known to have purchased large amounts of chemicals that could be used in Songkran attacks there. Thaksin was due to travel to Kuala Lumpur on Monday to discuss the security situation with his Malaysian counterpart Abdullah Ahmad Badawi.
Channel News Asia, Singapore (online edition)
Oil & Gas
Rich gas in Tarim to ensure stable supply
Natural gas reserves totaling 657.9bn cubic metre have been proved in the Tarim Basin in Xinjiang, Northwest China, which will ensure a long-term stable supply of gas to energy-thirsty eastern China, an oilfield executive said Sunday (11 April). Potential gas reserves in Tarim, China's largest inland basin extending 530 000 square kilometre, are expected to reach 8.4trn cubic metre, or a quarter of China's total natural gas resources on land, said Sun Longde, general manager of the Tarim Oilfield Company. Over the past 15 years, the company has discovered 40 gas fields, where 1.38trn cubic metres of gas has been verified, said Sun. Beginning 1 January, 2005, the company will pump natural gas to the west-east pipeline, a key state project targeted at sending 12bn cubic metres of gas/year in the west for industrial and domestic use in Shanghai and other parts of the Yangtze River Delta in the east. The annual production of the oilfield is expected to be 14bn cubic metres by then. The company is working for an annual gas production capacity of 30bn cubic metres/year so that it can ensure a stable supply to the pipeline for about 30 years. Construction of the pipeline started in July 2002 and will cost Rmb140bn ($17bn/Euro14bn).
China Daily, China (online edition)
Pharmaceuticals
Generic drug makers expanding sales staff
Japanese manufacturers of generic drugs are increasing their medical representative (MR) staffs to boost sales to major hospitals. The manufacturers expect demand for generic drugs to rise, partly because of greater cost awareness among national hospitals with their conversion to independent administrative agencies.
- Sawai Pharmaceutical, Japan's largest generic drug producer, will use staffing services to add this month 50 MRs, a 25% rise from the current level. The company will use the additional MRs to cultivate business among national and large hospitals which it has not pursued todate.
- Towa Pharmaceutical , the second-largest in the industry, hired 40 new graduates this year to raise its MR staff to 350, a 13% increase from the previous fiscal year. The company plans to increase its MR staff to 400 in fiscal 2006.
- Nichi-iko Pharmaceutical, the third-ranked firm in the industry, plans to raise its MR staff to 200 by November, up from 185 at end March.
Nihon Keizai Shimbun, Japan (online edition)
Science & Technology
China's high-tech trade up 52.1% in Q1
China has continued its rapid increase in foreign trade in high-technology products, soaring by 52.1% in the first quarter, senior trade official said. Total imports and exports of high-technology products in Q1 reached $66.54bn (Euro55.22bn), accounting for 27.7% of the country's total in the same period, according to Chang Xiaocun, director of the science and technology department of the Ministry of Commerce. In the first three months, China exported $33.11bn worth of high-tech products, up 67.5%, and imports worth $33.43bon, Chang said at the Seventh Beijing International Hi-Tech Industries Expo on Thursday (8 April). He noted that China targets an overall 20% increase in 2004 in foreign trade of hi-technology products, which is likely to be attained in view of the improved Q1 performance.
China Daily, China (online edition)
Company News
Two firms get Yen25bn Iranian fertiliser contract
Japan's Toyo Engineering and Chiyoda have secured a Yen25bn ($236m/Euro195m) fertiliser plant order through their joint venture with Petrochemical Industries Design & Engineering of Iran. The deal will involve designing and procuring materials for a facility that Petrochemical Industries Development Management Co. (PIDMCO) is hoping to start operating in 2006 in Bandar Assaluyeh in the southern part of Iran. PIDMCO, an affiliate of National Petrochemical Corp (NPC) of Iran, plans to produce 2050 tonnes ammonia and 3250 tonnes urea/day using natural gas from the Persian Gulf. The plant's fertiliser output is mainly expected for export to Europe. Under the contract, Toyo Engineering will design and procure materials for the ammonia facility and Chiyoda will do the same for the urea plant. The actual construction will be carried out by local firms. The project will be financed by a loan provided to NPC by the Japan Bank for International Cooperation.
Nihon Keizai Shimbun, Japan (online edition)
Rhodia unveils Asia-Pacific R&D centre
China's nation's economic hub was named on Friday (9 April) as the first Asia-Pacific R&D centre for French speciality chemicals firm Rhodia. Shanghai was chosen because China will become an economic centre in the Asia-Pacific Rim, explained Li Ji, vice-president of Zone R&D Operation Director of Rhodia Asia Pacific. The centre, Rhodia's fifth in the world after France, the US and Brazil, was established to support the firm's 19 laboratories in China, the first of which was set up in 1997. Other laboratories in the Asia-Pacific region are located in Singapore, Japan, South Korea, Australia and Thailand. Li said the Shanghai R&D centre will be the firm's only one in the Asia-Pacific region. The centre, to be located in the Rhodia Shanghai Technology Park in the city's Xinzhuang Industrial Zone, will contribute 80% of its efforts to supporting Rhodia's work in China, with the other 20% of services going to South Korea, Japan, Indonesia, Thailand and Malaysia.
China Daily, China (online edition)
NPC to spend $600m for 3 projects
National Petrochemical (NPC), one of Thailand's largest petrochemical companies, said over the weekend (10-11 April) that it plans to spend up to $600m (Euro498m) for the construction of three new plants, a move that would enable it to compete with Siam Cement which is also planning to expand capacity. NPC said the investments would be made within the year, once the rate of return on investments are determined. It has set a bottomline figure of higher than 14%. Siam Cement, the country's largest conglomerate, recently revealed a plan to build a gas-based cracker plant, an investment that could reach as much as $1.2bn. NPC president Viroj Mavichak, said the three projects include a 600 000-tonne-a-year natural gas-fuelled ethylene cracker plant and two polyethylene production plants, with each having an annual production capacity of 300 000 tonnes. He added that NPC is contemplating whether to produce low-density polyethylene pellets, linear low-density polyethylene or high-density polyethylene. Siam Cement is NPC's second largest shareholder, holding approximately 25%, while PTT, the country's largest oil company, controls about 38% of NPC.
Business Day, Thailand (online edition)
(Some stories may not appear in all editions of the cited news media.)
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