30/11/2015 Asia Business Report

on whether he will impose a whip on Labour MPs in any vote in launching

airstrikes against the Islamic State group in Syria. Now it is time for

Asia Business Report. The highest small warning yet this

year for Beijing. Just before the global time it summit, China says it

has met pollution reduction targets. Weibel look at the growth prospects

for Asia's economy after recent strong gains in manufacturing. -- we

will. Good morning. Lead you could join us for this Monday edition of

Asia Business Report -- glad. Pressure will weigh heavily on the

world's largest carbon emitter China at the UN climate change summit in

Paris. Ageing is currently cloaked in the worst small group this year

-- Beijing, but the government insists it has met targets with six

months to spare. The environment minister did acknowledge that

substantial reductions are still needed. Now we go to our

correspondent. This is 160 km from Beijing and

named earlier this year as the most polluted city in China. That is

despite local authorities announcing an ambitious plan to cut carbon

emissions way back in 2008. And the fact that it has been designated a

no carbon zone. TRANSLATION: I think it hasn't had any affect. I think

this project is just for show. The low carbon aspirations should have

put it at the forefront of China's efforts to counteract pollution. It

was granted special status to produce clean energy projects like

solar panels and windmills. TRANSLATION: There are many

companies which design wind turbines of the industry has brought it

tangible benefits. Many of our friends working companies connected

to the wind turbine industry. However the Dubya given -- world

wildlife fund says much of the country is still powered by coal.

TRANSLATION: This country needs to take advantage to a much greater

extent, slowly moving itself from the production stage to the consumer

stage so that it will consume its own solar panel products. Its

failure to get its pollution under control reveals the scale of the

challenge facing China nationally. An orange level alert has been

issued for the smog in Beijing which forces factories to cut production.

Some pollution readings were 17 times higher than the level

considered safe by the WHO. Earlier I asked the chairperson of the

climate change initiative's take. If you look at pollution at this point,

of course it is terrible. Apocalypse is the only way to describe it. But

if you look at the history of all developed nations, you realise it

might take 100 years normally for a country to tackle pollution but

China is trying to tackle the problem not just in 20 years, but

hopefully in ten years. It is already starting to reduce its

overall emissions. It is not only China but many countries in Asia

also wanting to cut emissions, but they want major developing economies

to shoulder larger image and reduction responsibilities. Is that

going to happen in Paris? What is really different about the Paris

agreement is that every single country makes its own commitment as

its own pace and we are adding up all the commitments to create a

total global climate agreement. What will this all mean for emerging

Asian business and economy 's? Harris is phenomenally important

because it is the first time in history that businesses are getting

a signal that all countries are working hand-in-hand to really

transform into a low carbon economy -- Paris. What they need most is

certainty that the governments are going to move towards a low carbon

economic policy. The good news is that for the first time, businesses

can take the signal and say they will make their own commitment. You

see this already with companies calling for net zero emissions by

2050. After 13 years in the making, China's edition of manufacturing its

first homegrown passenger jet has taken off -- ambition. A 90 seat

jetliner called the Flying Phoenix has entered commercial service. The

plane is unlikely to start flying commercially for another three

months. The company says it has received more than 300 orders for

the passenger aircraft from nearly 20 airlines. The IMF is meeting

later and will be making the call on whether or not to include the

Chinese currency into its basket of reserve currencies, joining these

ones. It is the elite club of currencies that can be used for

international debt publications. For Beijing, this would be a huge

symbolic boost on the global stage. Our correspondent in Hong Kong

explains why it is important for China's economy. It is more symbolic

in terms of the overall significance, especially when it

comes to short-term implications for in equities market perspective. In

the medium to long-term, we will see the reserve currency become even

more important in regards to China as well as propelling them in terms

of its influence on the global stage. What will this mean for the

Chinese economy, which has slowed down below 7% and for the currency,

which is now trading at 6.39? Again, when we look at the overall reforms

in China, this is one part of the R reforms that are going to see

China really propelling itself on the global stage. When we look at

the basket, it is about 280 billion US dollars in terms of overall

value, so let's say China makes it to the top end of the range, that is

still $56 billion and that is relatively small compared to some of

the flows we see on a monthly basis out of China. In August, outflows

were higher than 56. But overall, we will see the internationalization of

the currency and China's political influence become very important in

terms of overall inclusion. By being part of this basket, will it also

put more pressure on mainland authorities to implement more

economic reforms? Economic reforms are key for China's growth going

forward. Although a much slower pace than what we have seen over the

years. Whether to use the currency, the opening of the capital markets

generally speaking, state owned enterprise reform, reform when it

comes to private companies, pollution, all of this is key for

investors and we need to gauge the progress overall. Later on Monday we

will be getting an update on the health of India's economy. It is

expected to show an annual growth rate of more than 7% in the last

three months. That is because of a strong performance in the

manufacturing sector but with the government struggling to push

through with key performs, cannot continue? Now we go to our

correspondent from him by -- Mumbai. This construction site is

buzzing with activity. Because of economic slowdown, the last few

years have been difficult for the construction sector. Low demand for

homes and offices forced many companies like these to go slowly

with their projects and some even putting them on hold. But that is

changing now with sales picking up sharply this year, reviving their

confidence to resume work. Like the construction industry, other parts

of the economy are showing signs of growth. Consumer demand for cars

multiplied and electronic growth picked up. As a big importer of oil,

local prices are also helping the country's finances. But there are

plenty of hurdles that could get in the way of more consistent growth.

One of them is weak demand in rural areas which is fallen for two

consecutive years. And there are concerns that a poor harvest could

put pressure on food prices in the coming months. On the political

front, Prime Minister Narendra Modi suffered a massive defeat in the

state election recently which worries investors that there will be

an impact on key economic reforms that are stuck in Parliament

currently. They've announced reforms of the last two weeks but economists

say the growth levels need to be improved. Before we go, here's a

quick look at the markets. This is where they stand at this hour.

Currently in negative territory in midmorning Monday trade as investors

wait for many reports, especially the key US jobs numbers which will

be coming up this Friday and with the European Central Bank meeting

later this week. Investors are also on edge after a sharp fall in

Chinese equity markets on Friday. They want to see if this will

continue this week. Japan is down by 54%. The Hang Seng opened a few

minutes ago and is down by half a percent. Thank you for investing

your time with us. Goodbye for now. You're watching BBC News. Our main

stories this hour. World leaders have arrived in Paris as

negotiations aimed at reaching you deal