10/06/2014 Asia Business Report

unannounced inspections. Now on BBC News all the latest business news

live from Singapore. India and China have their eye on

new markets, as high`level talks are held to revive trade and build their

economies. And we take you to a fishing port in Taiwan to look at

what authorities are doing to tackle human trafficking. Welcome to Asia

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

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

foreign investment, and measures to fast track approvals from major

business projects. The government is also boosting relations with

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

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

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

Delhi has more. India and China, the two Asian

giants, have a growing interest in each other economically. China is

now one of India's biggest trading partners. With two way trade deals

of up to $70 billion. That is part of the problem, for every dollar

worth of products that India exported to China, it imports three

times as much. Just take this market for example, over 70% of all

products found in this market come from China, with its cheap fabrics,

and high`end electronics. So this is one of the big issues on the table

for this visit. India's growing concern about the trade deficit,

which is now close to $40 billion. But it is not just trade which is

the problem. The two countries have traditionally eyed each other with

mutual suspicion. More recently, the relationship has been tense, mainly

due to border disputes. But now something has changed, not just in

the tone of statements by both sides, but also in the body language

of the political leaders. This is the first high`profile meeting to be

held here at the official residence of Prime Minister Narendra Modi. He

has in the past expressed his admiration for China's growth model.

He has visited Beijing many times in his role as the Chief Minister of

this state. Seeking investment for his home State. He has also spoken

about introducing Mandarin for schoolchildren in his state. On

visits, he has even printed his business card in Mandarin in the

colour red, which is considered auspicious by many in China. But

this government does not just want to emulate China, it is ambitious,

and it wants to compete in the global economy, with China.

The push for more reliable energy from the sun that may be under

threat if the government imposes duties on the imports of solar

panels. Only a quarter of the solar panels in capacity now will be

produced and this could double the cost of solar power. New data

reveals inflation is rising in May, with food costs rising from a year

ago. It is still below the government target of 3.5% leaving

more room for growth this year. China's leader is continuing with

his crackdown on corruption into anticompetitive behaviour across

many major industries which include alcohol, pharmaceuticals and

automobiles. They are not targeting any specific sectors but aim to

stamp out anticompetitive practices across all sectors. China has not

been shy in supporting big greater strength in global economic

and trade ties in recent years has been the growing relationship

between China and Africa. Trade between the two sides reached more

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

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

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

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

slowdown would affect China. Africa should diversify its product line

beyond commodities and they can do it because at the end of the day you

have very low labour costs in Africa. So Africa could start

producing more consumption related goods, more value`added, more

technology intensive product, that they can eventually export out to

China instead of only commodities, as Chinese economy transforms to a

phase. A representative from HSBC. Sony and Microsoft are battling it

out this week at E3, the world's largest video gaming expo in Los

Angeles. They will be looking to impress with their offerings for the

next year or so. Our North America technology correspondent Richard

Taylor reports from Los Angeles. Microsoft are holding a press

conference first to kick off proceedings at E3, the three`day

event. But the tone really set by today's announcements and the focus

exclusively on the games themselves. On the forthcoming titles that we

will see for Microsoft's Xbox One, which has been out about seven

months but hasn't done as well as Sony's console. Sony always focused

on the gaming aspect of the PS4. Microsoft started out, when they

released the Xbox One, talking about released the Xbox One, talking about

the overall entertainment experience. But it was clear from

today's press conference that it is all about gaming for them now. They

have pivoted to talking about some truly next`generation

beautiful graphics and fascinating gameplay. In truth, there wasn't

that much in the way of real innovation in gaming that we saw

today. There wasn't even a mention really of Microsoft's Kinnect, now

unbundled from the Xbox One as an additional accessory. We are waiting

on Sony's announcement later. They are expected to talk more about

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

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

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

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

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

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

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

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

Instagram is expanding its advertising aced to the UK on the

Canada and Australia later this year. It was bought by Facebook in

2012 and it introduced advertising in November. It has more than 200

million users worldwide but many of them are believed to be outside of

America. A recent case involving Cambodian fisherman trafficked to

work on Taiwanese boats has put the sector in the spotlight. Our

correspondent has more from a fishing port.

Back from days at sea, these migrant fishermen do not get a break. They

are busy mending fishing nets to set out to sea again. They are among at

least 24, 000 mostly south`east Asian migrants working in Taiwan's

fishing industry. According to local Labour laws, they are supposed to

get at least $600 a month. And put in no more than 12 hours per day.

But many work much longer than that. They often receive less than half

their salary. This man asked not to be identified. Taiwan's treatment of

migrant fishermen amounts to human trafficking and forced Labour,

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

worker's rights. NGOs say that the government is not doing enough to

stop the exploitation of migrant workers. They say the government

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

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

cases of exploitation to the government. But that nothing has

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

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

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

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

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

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

TRANSLATION: The problem is their home countries allow the overseas

recruitment agencies to deduct higher fees from the workers. We

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

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

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

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

unless Taiwan seriously addresses this issue, its reputation will be

marred, regardless of how much fishing nets bring in.

And before we go, here is news just in. Asian stock markets are mixed

just now as they react to the latest inflation report which came back

higher than expect it at 2.5% compared to last year's levels.

Thank you for investing your time with us. Sport today is up next. The

main news stories this hour. Days before the start of the World Cup in

Brazil, metro workers in Sao Paulo have suspended their protest over

pay until Wednesday when they will hold a vote on future action.

Rescuers in the German Alps have rescued a man located in