10/06/2014 Asia Business Report


10/06/2014

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pleased that minds have been changed over unannounced inspections. Now on

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BBC News, all the latest business news live from Singapore. India and

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China have their eye on new markets, as high`level talks are

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held to revive trade and build their economies. And we take you to a

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fishing port in Taiwan to look at what authorities are doing to tackle

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human chat to make trafficking. `` human trafficking. Welcome to Asia

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Business Report. India's new government has set out its plans for

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rapid economic reform, including a new general sales tax. To encourage

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foreign investment, and measures to fast track approvals from major

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business projects. The government is also boosting relations with

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mainland China. India's Prime Minister Narendra Modi met the

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Chinese Foreign Minister in Delhi in the first high`level talks between

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the rival Asian giants as Mr Modi took charge. Our correspondent in

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Delhi has more. India and China, the two Asian giants, have a growing

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interest in each other economically. China is now one of

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India's biggest trading partners. With two way trade deals to $70

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billion. That is part of the problem, for every dollar worth of

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products that India exported to China, it imports three times as.

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Just take this market free sample, over 70% of all products found in

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this market come from China, with its cheap fabrics, and high and

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electronic. So this is one of the big issues on the table for this

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visit. India's growing concern about the trade deficit, which is now

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closed to $40 billion. `` close to $40 billion. But it is not just

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trade which is the problem. The two countries have traditionally eyed

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each other with mutual suspicion. More recently, the relationship has

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been tense, mainly due to border disputes. But now something has

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changed, not just in the tone of statements by both sides, but also

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in the body language of the political leaders. This is the first

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high`profile meeting to be held here at the official residence of Prime

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Minister Narendra Modi. He has in the past expressed his admiration

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for China's growth model. He has visited Beijing many times in his

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role as the Chief Minister of this state. Seeking investment for his

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home State. He has also spoken about introducing Mandarin for

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schoolchildren in his state. On visits, he has even printed his

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business card and mandarins in the colour red, which is considered

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auspicious by many in China. But this government does not just want

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to emulate China, it is ambitious, and it wants to compete in the

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global economy, with China. China has not been shy in supporting big

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business opportunities. In fact, one of the greater strength in global

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economic and trade ties in recent years has been the growing

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relationship between China and Africa. Trade between the two sides

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reached more than $200 billion last year. From just $10 billion in 2000.

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And Africa's exports to China are increasing 25% every year. In some

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African countries, those exports account for more than a quarter of

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GDP. Our correspondent spoke to a representative of HSBC to see how a

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slowdown would affect China. For certain countries such as the

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Democratic Republic of Congo, GDP are accounted for by exports to

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China. So Chinese demand slows or weakens, which is not our base case,

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we are still expecting smooth sailing in China, but in case there

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is a downturn for the Chinese economy, this would inevitably

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impact the economies in Africa. Do you see that as a big risk for the

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future? You have an optimistic outlook for China, but who knows

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what will happen in five or ten years time? China is obviously going

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through a tremendous transformation of its economy from investment and

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export `based towards a more consumption led economy. In that

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sense, maybe in the future, what China imports from the rest of the

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world will be more consumption products rather than being a

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commodity and sort of manufacturing focused economy. So in that sense,

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then Africa should diversify the product line beyond commodities. And

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they can do it, because at the end of the day, you still have very low

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Labour costs in Africa. So Africa could start producing more

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consumption related goods, more value`added, more technology

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intensive product, that they can eventually export out to China

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instead of only commodities, as Chinese economy transforms to a

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phase. A representative from HSBC. China has launched a review into

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potential anti`competitive behaviour across 18 major interest industries

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including pharmaceuticals and alcoholic drinks. The president

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promised to crack down on corruption when he came into power last year.

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The commerce Ministry has reportedly said that the survey was not

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targeting any specific industries, but was aimed at eradicating

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anti`competitive practices across all industries. India's Prime

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Minister Narendra Modi push for more reliable electricity from the Sun

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may be under threat if the government imposes duties on imports

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of solar panels. The charges were proposed by the previous

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administration. Analysts say that only a quarter of the solar capacity

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in the works now will be finished if the levies are impacted. And they

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warned that tax would double the cost of solar power. Sony and

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Microsoft are battling it out this week at E3, the world's largest

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video gaming expo in Los Angeles. They will be looking to impress with

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their offerings for the next year or so. Our north America technology

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correspondent Richard Taylor reports from Los Angeles. Microsoft are

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holding a press conference first to kick off proceedings at E3, the

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three`day event. But the tone really set by today's announcements and the

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focus exclusively on the games themselves. On the forthcoming

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titles that we will see for Microsoft's Xbox One, which has been

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out about seven months but hasn't done as well as Sony's console. Sony

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always focused on the gaming aspect of the PS4. Microsoft started out,

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when they released the Xbox One, talking about the overall

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entertainment experience. But it was clear from today's press conference

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that it is all about gaming for them now. They have pivoted to talking

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about some truly next`generation titles with dutiful graphics and

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fascinating gameplay. In truth, there wasn't that much in the way of

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real innovation in gaming that we saw today. There wasn't even a

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mention really of Microsoft's Kinnect, now unbundled from the Xbox

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One as an additional accessory. They are expected to talk more about

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project Morpheus, the virtual reality headset 80s to a few months

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ago. That could be very interesting, along with the other virtual reality

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headset on the show, the oculus rift. Those could open the door to a

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new generation of gaming. As they turn their head, they are immersed

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in their surroundings in a way that basically haven't been until now. So

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it is said to be a fascinating three days. And we will be bringing you

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the latest from the show floor. Richard Taylor in LA, and for more

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on the E3 conference, check out the latest news on the BBC website.

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Taiwan's fishing and the Ford exports `` Taiwan's fishing exports

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have put the sector in the spotlight. Our correspondent has

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more from a fishing port. Back from days at sea, these migrant fishermen

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do not get a break. They are busy mending fishing nets to set out to

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sea again. They are among at least only 4000 mostly south`east Asian

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migrants working in Taiwan's fishing industry. According to local Labour

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laws, they are supposed to get at least $600 a month. And put in no

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more than 12 hours per day. But many work much longer than that. They

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often receive less than half their salary. This man asked not to be

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identified. Taiwan's treatment of migrant

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fishermen amounts to human trafficking and forced Labour,

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according to experts at the UN's agency in charge of protecting

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worker' writes. NGOs say that, the government is not doing enough to

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stop the exploitation of migrant workers. They say the government

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must have clear standards on wages, hours, and working conditions.

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Alison Lee, from the migrants union, says she has reported more than 100

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cases of exploitation to the government. But that nothing has

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been done to help the workers. Did they give any of the money back? No.

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Not one single person got a penny back? No. They have been threatened

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with sending home. Government officials say they have done a lot

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to help migrants, such as setting up a system to allow employers to hire

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them directly. But most employers still prefer to go through agencies,

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which do all the paperwork for them and charge the migrants instead.

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TRANSLATION: The problem is their home countries allow the overseas

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recruitment agencies to deduct higher fees from the workers. We

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have been asking their governments to reduce the fees. This is not

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something we can stop on our own. Workers' rights groups say that what

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Taiwan can do in the meantime is in the meantime is enforce its laws,

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which look good on paper, but are not being followed. They say that

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unless Taiwan seriously addresses this issue, its reputation will be

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marred, regardless of how much fishing nets bring in. And before we

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go, here is news just in. China's inflation rate coming in higher than

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expected at 2.5% in the month of May. Exhilarating from 1.8% in

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April, and marking the highest figure in four months. Currently

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this is having an impact on Asian markets. Japan is currently in

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negative territory by 39 points. Thank you for investing your time

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with us. Sport today is up next. The top stories this hour. Just days

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before the World Cup there's been more violence on the streets of

:11:15.:11:18.

Brazil ` but a subway strike in Sao

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