Significant increases in annual temperatures are having a devastating affect on glaciers in the mountainous regions of south-western China, potentially affecting natural habitats, tourism and wider economic development. In a study published Oct. 25, 2011, in IOP Publishing’s Environmental Research Letters, scientists examined data from 111 weather stations across south-western China and have shown that temperature patterns were consistent with warming, at a statistically significant level, between 1961 and 2008.

Of the 111 stations examined, 77 per cent displayed statistically significant increases in annual temperature.

Collating a broad range of research on glaciers during this time period, the researchers, from the Chinese Academy of Sciences, identified three characteristics that were consistent with the increasing trend in temperature; drastic retreats were observed in the glacial regions, along with large losses of mass and an increase in the area of glacial lakes.

In the Pengqu basin of the Himalayas, for example, the 999 glaciers had a combined area loss of 131 km² between 1970 and 2001, whilst the Yalong glacier in the Gangrigabu Mountains retreated over 1500 meters from 1980 to 2001.

The implications of these changes are far more serious than simply altering the landscape; glaciers are an integral part of thousands of ecosystems and play a crucial role in sustaining human populations.

Continued widespread melting of glaciers, caused by increasing temperatures, could potentially lead to floods, mudflows and rock falls, affecting traffic, tourism and wider economic development.

South-western China has 23,488 glaciers, covering an area of 29,523 km² across the Himalayas and the Nyainqntanglha, Tanggula and Hengduan mountains.

As well as temperature, the researchers also investigated precipitation; however the results were less marked. Annual increasing precipitation is consistent with climate change and was observed in 53 per cent of the stations. A decrease in annual precipitation can also influence glacial retreat and this was observed in central regions of the Himalayas.

The lead author of this study, Dr Zongxing Li, said, “I think glacial loss is caused mainly by rises in temperature, especially in the high altitude regions. From the 14 weather stations above 4000 m, there was an annual mean temperature increase of 1.73 ^°C from 1961 to 2008.

“It is imperative we determine the relationship between climate change and glacier variations, particularly the role of precipitation, as the consequences of glacial retreat are far reaching.”

Source: Institute of Physics

China Eastern Airlines has announced that it would be cancelling its order for 24 Boeing 787s and instead order 45 Boeing 737 variants, the airline has cited extended delivery delays for the cancellation. In addition the carrier plans to order 15 Airbus A330 aircraft which will be delivered between 2013 and 2015, it also intends to sell its 5 Airbus A340-300s back to Airbus in 2012.

China Eastern’s Boeing 787 order book for the 787-8 variant consisted of 15 orders for the parent carrier, and 9 orders for China Eastern’s subsidiary Shanghai Airlines. The airline’s 737 order is valued at $3.3 billion at list prices.The new aircraft are expected to be delivered to the airline starting 2014 and until 2016.

Given that China Eastern’s latest growth strategy focuses on building up its network in the regional international market, it makes much more sense for them to go for the 737′s and A330′s as they have proven to be more fuel efficient for such routes and also as it is known that early-build 787s may miss their weight and fuel burn targets by significant margins, which will potentially hurt the economic viability of pricier 787s. China Eastern’s decision seems to be based on hard facts and financially driven. With this, the order cancellations have caused the Boeing’s 787 backlog to drop below 800 frames with Boeing indicating further cancellations may be forthcoming.It needs to be seen how well does Boeing manages this negative backlash for their new technology and China Eastern’s strategy play given that the market they are targeting is going to see some fierce competition in the coming years with many big players like Singapore Airlines, Qantas, Cathay Pacific and other Chinese carriers bringing in either their focused subsidiaries or directly launching flights on their own network to cater from Low Cost to Premium customers.

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Plane ‘n Simple, a
BoardingArea Blog

Zeenews Bureau

New Delhi: India on Tuesday objected to advisories issued by the US and other countries that warned of heightened possibility of terror attacks during the Diwali festival season, saying they were “disproportionate”.

“We have conveyed to them that the language of these advisories is disproportionate. We will continue to impress upon them that the language should be proportionate and moderate,” Foreign Secretary Ranjan Mathai told reporters when asked about his reaction to the travel advisories.

Five countries — the US, Britain, Canada, Australia and New Zealand — have issued advisories against travel to India during the festive season.

Mathai said that these countries are obliged under their legal systems to issue such advisories warning their citizens of the possibility of threats to their security. He added that the advisories were based on reports in the Indian media.

Mathai said that Tourism Minister Subodh Kant Sahai spoke to him about the travel advisories and expressed his objections to them. The Tourism Minister informed him that there has been an increase in the number of tourists to Jammu and Kashmir, he said.

The representatives of the hospitality and tourism sectors have also taken up the issue with the foreign office.

The ostensible reason for issuing the travel advisory given by these countries is the possibility of terror attack during the festive season, which can endanger the lives of their citizens if they happen to be in India.

However, this move has created a panic in the tourism industry and the government also fears that the hospitality sector will be severely hit by it. The travel industry now fears cancellations of around 10 to 15 percent of bookings if the advisory is not withdrawn.

The government is of the view that terror cannot be the ground for keeping India in ‘dangerous countries to visit’ listing.

A delegation of top hoteliers, travel agents and restaurant owners have reportedly met Sahai, and expressed their concerns.

A top officials of the Hotel Association of India, has expressed fears that the travel notice from major countries like US and UK would impact the inflow of business and leisure travellers and direct them to other country, particularly China where the security situation is much better.

In view of this, many foreign tourists, instead of coming to India, may opt for other destinations like Thailand, Sri Lanka and China.

As per the tourism sector statistics, foreign tourist arrivals in India between January-August 2011 have seen an encouraging 10% growth (in absolute terms, 3.8 million tourists came to India in this period compared to 3.4 million last year).

However, India still lags behind small Asian countries like Thailand. While India’s share is 0.59% of the world’s share of global arrivals, Thailand’s is 1.62% and China’s 5.8%. While our most popular beach gets 2.7 million foreign tourists in a year, Phuket gets 5 million. The Taj Mahal gets 3.1 million foreign tourists a year while the Great Wall of China gets 10 million.

Although, India has a vast potential in the tourism sector but the travel advisory issued by five countries during the festive season, the hospitality industry here has every reason to be jittery.

(With IANS inputs)

BY JOHN KELL

Coach Inc.’s fiscal first-quarter earnings rose 14% on strong handbag and accessory sales, as well as growth in the men’s business. Chairman and Chief Executive Lew Frankfort added that the company was “well positioned for another excellent holiday season” thanks to its strong product line.

During a conference call with analysts, Mr. Frankfort said the men’s business was a significant driver of overall sales. He said the North American business was benefiting from a sharp increase in tourist visits to stores in Hawaii, Las Vegas, New York and other travel destinations. Coach continued to gain market share in the expanding …

October 25, 2011, 9:23 AM EDT

By Nichola Saminather

Oct. 26 (Bloomberg) — Ferngrove winery, which grows Shiraz, Cabernet Sauvignon and Semillon grapes in Western Australia’s Frankland River, last year faced declining sales and the prospect of breakup if business didn’t recover.

As it sought partners, a Chinese investor visited last October and bought 14,000 bottles of wine to test on friends and associates back home, said Ferngrove Managing Director Anthony Wilkes. They liked what they tasted: in February, the winery received a A$1 million ($1 million) investment from the investor’s private firm, which has since increased to A$10 million giving it about 60 percent of the winery, Wilkes said.

“If they hadn’t come in, the business would potentially have been sold, or parts of it been divested,” Wilkes said. “At the end of the day, we looked at what the alternatives were and this was definitely the best outcome.”

Australian vineyards such as Ferngrove, facing a wine glut, slumping exports and rising competition from countries including Chile and Argentina, are turning to China for salvation. Chinese buyers are proving receptive as they seek to meet surging demand among the nation’s rich, who are developing a taste for grape wine and the expression of wealth it conveys.

Vineyard values have lost as much as 50 percent since 2008 across Australia’s 60 wine-producing regions — including the Barossa Valley and McLaren Vale in South Australia known for their Shiraz; the cooler Yarra Valley in Victoria, famous for its fruity Chardonnays; and Western Australia’s Margaret River, renowned for its Cabernets — according to Toby Langley, director of Adelaide-based winery broker Gaetjens Langley.

Vineyard Values

Since 2010, vineyard prices dropped 11 percent in Australia, 14 percent in Bordeaux, France, and 25 percent in Napa Valley, California, according to a 2011 Wealth Report released by Knight Frank LLP and Citi Private Bank, a unit of Citigroup Inc. Prices rose 8 percent in Chile’s Colchagua Valley and 13 percent in Mendoza, Argentina.

In the Hunter Valley, where grapes were first planted in the 1820s, Chinese investors have bought six wineries in the past three months and three more sales are in the works, said Cain Beckett, director of the region’s biggest winery broker Jurd’s Real Estate. The Chinese influx is helping revive values of the Semillon and Shiraz-growing region’s 126 vineyards, which had slumped as much as 20 percent since May 2008, he said.

“Some vendors have been on the market for four years, and expansions haven’t happened since the 1980s,” Beckett, 28, said in an interview. “Now, things are looking much more positive with Chinese investors interested and actually able to invest. We’ve even achieved sales above the asking price.”

Dynasty, Bright Food

Winston Wines Pty, based in Xiamen, China, bought its first Australian winery in July and two others since then in the Hunter Valley in New South Wales. Bigger Chinese firms including Dynasty Fine Wines Group Ltd. and Bright Food Group Co. are studying acquisitions around the world and in Australia to sate the newfound taste for wine from China’s million millionaires.

Dynasty, partly owned by France’s Remy Cointreau SA, produces more than 93 million bottles from vineyards in northern China including Tianjin, Shandong and Ningxia. Now, the Tianjin- based company, in talks to buy a winery in New Zealand’s south island, expects opportunities to acquire vineyards in Australia as owners struggle to repay debts, said Rex Yeung, secretary of the group, China’s third-biggest winemaker by sales.

“There are a lot of wineries under financial difficulties,” Yeung said. “If that leads to more liquidations, there will be more opportunities to buy.”

Grape Wine Rise

While rice wine has traditionally been among the most popular alcoholic beverages in China, demand for imported grape wine is surging as rising affluence and more overseas travel exposes more Chinese to western customs, and increasing health consciousness draws drinkers away from beer and spirits.

The number of Chinese millionaires in 2010 increased fivefold from 190,000 six years earlier, according to a Boston Consulting Group survey published in May. The country’s consumption of imported wine quadrupled between 2005 and 2009, and is expected to climb another 56 percent by 2014, a Vinexpo study released in March found.

Jack Xu, a 35-year-old Shanghai-based shipping broker, started drinking Australian wine in 2002. Xu, who drinks wine about once a week, mostly socially, said health concerns led him to eschew Chinese varieties in favor of imported grape wine.

“I drink Australian wine because of its good quality, and compared with other foreign wine, it’s relatively cheap,” Xu said. “Sometimes you can buy a bottle of mid-level Australian wine at 100 yuan. But I couldn’t hope to taste French wine at the same price. And Australian wine is sweeter with a richer flavor compared with wines from other countries.”

Acquisitions

Bright Food, China’s second-largest food company, is mulling a bid for Melbourne-based Treasury Wine Estates Ltd., two people familiar with the matter said in July. Bright Food’s Shanghai-based spokesman Pan Jianjun said the company has plans to invest in Australian wineries, though it hasn’t been in touch with any companies yet. He declined to comment on whether it is considering buying Treasury Wine.

Winston, which began importing Australian wine into China in 2007 and owns 60 stores across the mainland, paid A$2.8 million for the Golden Grape winery in the Hunter Valley, getting 15 acres of vineyards, a cellar door, a wine museum with the continent’s oldest wine press, and a restaurant.

An agreement to buy Capercaillie for A$1.5 million plus stock followed, giving Winston 5 hectares (12 acres) of vineyards planted with Chardonnay, Traminer, Chambourcin and Petit Verdot. It has since bought a third winery, which Jurds’s Beckett, who marketed the properties, and Winston’s Sydney-based Executive Director Michelle Jin declined to identify.

Increasing Popularity

“The popularity of grape wine has been increasing dramatically in China,” Jin said. “We identified the opportunity in late 2006 and commenced exporting in 2007 with a couple of containers being sent back to China. The business has grown at rapid speed since then. We have already exported over 70 containers in 2011.”

Australian exports of bottled wine to China, now its fourth-biggest market, jumped 39 percent in the year ended Sept. 30, according to Wine Australia, a government-backed group that promotes the industry.

For Ferngrove, the partnership with the Chinese investor’s private firm Pegasus Corp. (Aust) Pty Ltd. has “been very much a blessing for us, given the stagnant, and often declining, sales in overseas markets,” Wilkes said. He declined to name the Hangzhou, China-based investor.

Pegasus opened 10 outlets carrying Ferngrove wines on the mainland in August, and has plans for more, he said.

While Winston and Pegasus have already moved into winery ownership, other Chinese investors are examining the market, with help from the Australian government.

‘Greater Awareness’

Wine Australia took 100 Chinese delegates — including restaurant and hotel representatives, retailers and wholesalers, and media — on a tour of major wine regions in April, including the Hunter Valley, Margaret River and Yarra Valley.

“The very expensive wines bought in China are usually from France, and those are very much luxury brand and status kind of purchases,” said Lucy Anderson, the group’s first Hong Kong- based director. “But there’s starting to be greater awareness of our fine wines.”

Bird in Hand, a winery based in the Adelaide Hills, South Australia, has set up a partnership with Chinese importer Auspride to open two outlets on the mainland, said Justin Nugent, a co-owner. Mornington Peninsula, Victoria-based Yabby Lake partnered with the Guangzhou (Wohe) Wine Co. to open seven stores in Guangdong province, and is seeking to open another three, according to General Manager Tom Carson.

Rough Patch

Australia’s 200-year-old commercial wine industry took root when John Macarthur planted grapes including Pinot Gris, Verdelho and Cabernet Sauvignon on his property about 50 kilometers (31 miles) west of Sydney, according to Wine Australia. Exports followed soon after, in 1822, with the first shipment of 136 liters to London, according to the trade department.

Wineries, production and exports continued to grow, surviving or avoiding diseases that decimated European vineyards. Overseas shipments hit 786 million liters (208 million gallons) worth A$2.9 billion by June 2007, out of a total production of 955 million liters, according to the trade department, as the Barossa Valley’s Shiraz, Coonawarra’s Cabernet Sauvignon and the Hunter Valley’s Semillon gained global popularity.

Australia’s wine industry faltered as the currency’s surge made its exports more expensive, and as competition increased from regions including Chile, Argentina and South Africa. Exports fell to 720 million liters, worth A$1.93 billion in the 12 months to Sept. 30, according to Adelaide-based Wine Australia.

Grape Glut

The nation’s 2011 wine harvest was estimated at 1.62 million tons, a 1 percent increase from the previous year, according to the Winemakers Federation of Australia’s vintage survey, exacerbating the glut.

Foster’s Group Ltd. has responded by spinning off its wine unit Treasury Wine in May after more than A$2.5 billion of writedowns, as competition, an oversupply of grapes and the stronger Australian dollar hurt profitability at the maker of the Penfolds and Beringer brands.

Winston Wines is betting the Australian industry’s troubles will be solved by China’s soaring demand. The group is renovating and expanding Golden Grape in the Hunter Valley and plans to buy more wineries with production facilities so it can make its own wine to send back to the mainland as demand continues to surge.

“The Australian wine industry is going through a period of adjustment,” said Stephen Strachan, chief executive officer of the Winemakers’ Federation. “Some assets are worth a lot more in the long term than what they’re being traded for and that’s being recognized by a number of Chinese investors.”

–With assistance from Jing Jin, Bonnie Cao and Alfred Cang in Shanghai. Editors: Malcolm Scott, Andreea Papuc

To contact the reporter on this story: Nichola Saminather in Sydney at nsaminather1@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net

By CHRIS BLANK

JEFFERSON CITY, Mo.

Missouri Gov. Jay Nixon said Monday the state has reached an agreement to sell $4.4 billion worth of products to China for the next three years starting in 2012.

Nixon said the deal between the state Department of Economic Development and the China Council for the Promotion of International Trade emphasizes agricultural products and would boost Missouri exports to China by more than $1 billion over three years. The Democratic governor said international trade is important for improving Missouri’s economy.

“Missouri businesses and farmers have and sell the products needed to feed and fuel and clothe the world,” Nixon said. “Missouri truly helps keep the global economy moving forward, so we always look for opportunities to compete and win in the economy of the future, and exports are a key part of that.”

The deal was announced while Nixon is visiting China. His trip comes as Missouri lawmakers remain deadlocked on a package of business incentives that included tax credits intended to help make the St. Louis airport a hub for international cargo from China and other countries. Nixon called lawmakers back to the state Capitol this fall to approve the legislation, but an agreement collapsed and the incentives package is unlikely to pass before the special legislative session expires under the Missouri Constitution on Nov. 5.

Speaking to reporters by telephone from Beijing, Nixon said the legislation had come up during trade talks but was not the “centerpiece” of any discussions and had not inhibited the agreement. Nixon said he was scheduled to meet with Chinese aviation officials later in his trip.

Along with completing a trade agreement, Nixon said he met with China Vice Premier Wang Qishan, whose responsibilities include international trade and financial services and Chinese foreign affairs and agriculture officials. Nixon and his wife, Georganne Nixon, also met with the former Chinese ambassador to the U.S., who was hosted at the Missouri Governor’s Mansion during a visit in February 2010. In addition, St. Louis-based Peabody Energy Corp. explained its operations in China.

Nixon is scheduled to meet with the U.S. ambassador to China and speak to the American Chamber of Commerce in Beijing and travel to Missouri’s sister province of Hebei, which is in eastern China. He plans to return to Missouri on Saturday.

The governor is traveling with the directors of the Missouri Agriculture and Economic Development departments, business leaders and representatives from various agriculture commodity groups. The governor’s travel costs will be paid by the Hawthorn Foundation, which is a nonprofit organization that frequently funds gubernatorial trips related to economic development.

After making only one official trip abroad during his first term in office, Gov. Deval Patrick is planning his second international trade mission this year. Next stop? Brazil.

The Patrick administration is in the final stages of planning a trip that could bring Patrick and a delegation from Massachusetts to Brazil as soon as early December, administration officials disclosed Tuesday after the News Service learned about the trip on Monday

The trip would be Patrick’s third international trade mission since taking office in 2007, and the second this year after traveling to Great Britain and Israel in March on a 10-day excursion. Patrick traveled to China in 2007.

“Yes, we are exploring a potential trade mission to Brazil later this year. We hope to have a final determination soon,” Patrick’s press secretary, Kim Haberlin, said in a statement responding to questions from the News Service.

Along with China, Israel, Russia and India, Brazil is home to one of the world’s fastest growing economies and represents the largest national economy in Latin America, with major oil reserves and a robust clean energy sector.

According to the Massachusetts Office of International Trade and Investment, Brazil has the seventh largest economy in the world, and is expected to rank fifth in the “near future.” Trade between Massachusetts and Brazil topped $475 million in 2010, including $396 million in exports to Brazil and more than $80 million in imports to Massachusetts. Exports from the state to Brazil are up 31 percent in 2011, according to MOITI officials.

Portuguese is also the second most commonly spoken language in Massachusetts after English, with pockets of Brazilian immigrants in cities such as Framingham, and a large population of Portuguese Americans spread across South Coast cities like Fall River and New Bedford to communities such as Somerville, Lowell, Framingham, Hudson, and Milford.

Massachusetts is not alone among states targeting Brazil for economic growth potential. Florida Gov. Rick Scott is currently in Brazil on a trade mission. He attended a travel agent trade show in Rio de Janeiro last week before traveling to Sao Paolo to meet with Brazilian company officials.

Brazil is already Florida’s top export market, and the state has a robust travel industry between the South American country and South Florida, with Tam Airline and American Airlines [AMR] offering non-stop flights between Miami and Brazilian cities and Brazilian passengers through the Miami airport on the rise.

According to the Patrick administration, governors and senior officials from more than 15 states have visited the country during the past three years, including Scott, Idaho Lt. Gov. Brad Little and former Minnesota Governor Tim Pawlenty.

“Governor-led trade missions have become a must in today’s global economy,” Haberlin said. “Every state is competing for jobs across the world and Massachusetts is well-positioned to compete – and win – anywhere. Governor Patrick has led successful trade missions to China, the West Coast, Israel and the UK in order to open new markets for Massachusetts companies and position the Commonwealth as the premier North American destination for foreign and domestic direct investment and business growth. He’ll continue to do whatever it takes to bring jobs to Massachusetts.”

Ken Brown, the administration’s new director of MOITI, is currently in Brazil where he will spend the next four days laying the groundwork with government and business officials to make a final determination on the trip, according to an administration official.

The News Service began asking about the trip after state Sen. Marc Pacheco, who hosted the Ambassador of Portugal to the United States Nuno Brito at the State House on Monday, said he believed the governor was eyeing his next trade mission before the end of the year.

“Especially when you look at the connections that the United States could have, and in particular Massachusetts could have with Portugal, and trade partnerships specifically with the Portuguese speaking countries of the world, whether you look at Brazil where the governor may be going in the first week of December, I believe, there are opportunities for partnership,” Pacheco, a Taunton Democrat, said during a meeting alongside other Portuguese state lawmakers and Brito.

Asked to elaborate on Patrick’s travel plans, Pacheco said Monday, “That’s what I hear. That he may be.”

Pacheco was one of the chief sponsors of the state’s Global Warming Solutions Act, the 2008 law signed by Patrick that creates economy-wide greenhouse gas reduction goals and could provide strong impetus for partnerships with Brazil’s clean energy sector.

October 25, 2011, 3:23 PM EDT

By William Pesek

Oct. 26 (Bloomberg) — Economists were probably too busy watching markets gyrate to contemplate last month’s big news in science. Physicists detected particles travelling faster than light, which, if the reading was accurate, means time travel is possible.

Now, let’s play a quick mind experiment that would surely captivate the deans of the dismal science: Pretend you have just been transported 10 years into the future to see how this incipient global crisis pans out. It would be hard to find anyone who isn’t desperate to know.

What if, a decade from now, the U.S. comes out the winner of today’s market chaos at the expense of Europe and China?

This intriguing contrarian view is the subject of “The American Phoenix,” a new book by Hong Kong-based economist Diana Choyleva and her Lombard Street Research colleague Charles Dumas. Bargain bins are loaded with China-crash titles. What’s different about this book is that it turns all we think we know about the interplay between the Group of Two on its head.

If the last few years taught us anything, it’s that the unthinkable has an uncanny knack of happening. From Arab Spring protests to China bailing out Europe’s markets to a U.S. presidential candidate suggesting it’s treasonous for the Federal Reserve to do its job, the world really is upside down.

So it’s worth considering an alternative trajectory for the U.S. and China as another meltdown seems to be unfolding. It’s hard to be optimistic for 2012 as Europe dithers, Washington bickers, Japan’s paralysis deepens and China experiments with ways to avoid overheating.

G-2 World

If there is an accepted narrative about the G-2 in Asia, it goes something like this: China will grow 8 percent or 9 percent a year indefinitely, grabbing global market share as it moves from sweatshops to a knowledge-based, innovation-driven model. Hiccups may happen, but China will surpass the U.S. economy 10 or 20 years from now.

The U.S., meanwhile, experiences a slow, steady slide as the magnitude of its challenges overwhelms a political system ridden with gridlock, an excessive debt load and chronic joblessness. The reason Occupy Wall Street went global in ways the Tea Party didn’t is that the former reflects the reasons for America’s decline, while the latter is mere handwringing over it.

The question is whether the U.S. recovers relative to Europe and China as global markets swoon anew. The operative word is “relative.” No should expect the U.S. to prosper in some great way from a 2012 crisis. It’s that Europe and China will be far worse off as contagion whips around the globe.

Bubbles, Imbalances

“When you look at the problems facing the world, the bubbles and imbalances, America’s are easier to fix than most,” Choyleva told me in Hong Kong yesterday. “It says a lot about the state of things globally.”

It would surprise few to imagine Europe having a harder decade than the U.S. A Greek default is a given and may drag down Portugal, Spain and, in the worst case, even Italy. Europe may be lucky to get away with just one lost decade.

Many would be taken aback to think that China, too, might experience its share of setbacks compared with the U.S. Some are well-known, including inflation that fans social unrest and a financial crisis erupting as the massive stimulus of 2009 comes back to haunt Beijing. All that investment created the illusion of economic vitality. Too much of it was funneled into unproductive sectors of the economy, setting up China for a banking meltdown.

Inflation China

Choyleva adds a less obvious twist to the critique: how China’s financial proximity to the U.S. is a bigger problem than many people appreciate. By tying itself to the dollar and amassing more than $3 trillion of currency reserves, China essentially merged with the U.S. financial system. When the Fed pumps money into the economy, it inflates China more than America.

There are rumblings in Washington about punishing China for its undervalued currency. Yet China is only now realizing the extent to which it surrendered sovereignty to the U.S. As the Fed adds more cash to markets, China’s inflation becomes more entrenched and Beijing loses even more control. Over time, this dynamic will harm China’s competiveness more than if Beijing had allowed the yuan to strengthen, as per the U.S.’s demands.

China could increase interest rates to temper rising prices, but that would devastate growth. The thing about the G-2 is that pundits often view China as being in the stronger position — its massive reserve holdings are both leverage and a fortification. Yet China is trapped. It’s addicted to cheap U.S. financing and is increasingly feeling the side effects.

For all its troubles, the U.S. has inherent strengths: It’s home to many of the world’s top 20 universities; it has institutions that may still get their act together in ways Europe can’t; a fertility rate that exceeds deaths, meaning America can ultimately outgrow its debt — unlike, say, Japan and Europe.

If Japanese and European officials could travel in time, it wouldn’t be to fix mistakes of the past. If Chinese officials don’t act more assertively to tweak their model, they’ll have similar regrets a decade from now.

(William Pesek is a Bloomberg View columnist. The opinions expressed are his own.)

–Editors: James Greiff, David Henry.

Click on “Send Comment” in the sidebar display to send a letter to the editor.

To contact the writer of this column: William Pesek in Hong Kong at wpesek@bloomberg.net

To contact the editor responsible for this column: James Greiff at jgreiff@bloomberg.net

Out of vogue … it will take more than koalas to bring Chinese tourists to Queensland. Photo: Angela Milne

Mandarin should be offered as a subject in Queensland schools if the state is going to get its piece of the multi billion-dollar pie that is the Chinese tourist market, according to the state’s peak tourism body.

Tourism Queensland has released its Project China discussion paper, a 58-page missive on the expectations of Chinese travellers and what needs to be done to make Queensland a prime destination for them.

The paper says the koala has been relied on for too long to attract Chinese to Queensland and the industry needs to become more innovative, with estimates the China market could be worth $7 billion to $9 billion annually to Australia by 2020.

“Tourism operators who want to grow the China market need to be aware of the motivations and expectations of Chinese travellers and committed to delivering on these,” Tourism Queensland said.

“…meeting minimum standards is no longer enough in an increasingly competitive market.

“The industry must draw knowledge from available research and market intelligence and be committed to providing best practice.”

The paper suggests offering the dominant Chinese language of Mandarin in schools to increase the number of people who are able to communicate with the tourists when they visit the state.

It goes in to detail about Chinese tourist habits, such as their avoidance of the number four meaning they will not stay on the fourth floor of hotels.

The Chinese are very family oriented and before making decisions they will discuss it at length with family and friends which means word of mouth promotion of Queensland is very important.

The discussion paper says cultural business training of small operators’ staffs will also be important in the next few years.

It says Queenslanders need to look past the Great Barrier Reef and koalas as main attractions.

“What is next after the koala or Great Barrier Reef as a point of difference for Queensland?” the paper asks.

“While the reef will continue to be a pull to the Chinese visitor, we need to understand what’s next; anecdotal feedback from a Brisbane tour provider suggests that in the future the koala may not be enough to keep Chinese travellers coming.

“The life cycle of any product demands that product refreshment is required during the term of the offering; therefore it is appropriate to reflect on what is being offered in Queensland to determine if it is distinctly different from Queensland’s competitor markets.

“Delivering authentic Australian products and experiences will be critical to success in growing the China market.”

Tourism Queensland is asking for feedback on the discussion paper and will launch its strategic and action plans next year for attracting more Chinese tourists to the state.

 Posted 10/18/2011 06:47 AM ET

SHANGHAI, Oct 18, 2011 (SinoCast Daily Business Beat via COMTEX) –
Wal-Mart Stores, Inc. (WMT), one of the world’s biggest retailers, today announces the opening of a joint brand tourism service center it set up with China CYTS Tours Holding Co., Ltd. (shse:600138).

The service center, set up in the Wal-Mart shopping malls and Sam’s Clubs, will come with a wide range of tourist products and tourism consulting services for consumers, according to the US-based company.

The project, the first strategic cooperation between a retailer and a tourism service provider in China, is part of the partners’ efforts to explore a new model for tourist product retail sales in the country.

Stepping into China in 1996, Wal-Mart built up its headquarters for the global procurement center in Shenzhen in 2002. The company now dabbles in a series of operations in the country, including shopping malls, Sam’s Clubs and community stores.

Read additional information

Copyright 2008 SinoCast Daily Business Beat. All rights reserved

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  10/21/2011 06:36 PM ET

• Wal-Mart Sees Monthly Sales Trends Turn

  Wal-Mart (WMT) is up 10% in October, its largest monthly gain since November 2009. Target (TGT) is also up 10% for the month. But those are not the biggest gains among major discount retail chains. San Diego-based PriceSmart (PSMT) has advanced 16% since Oct. 1. Sears Holdings (SHLD) soared 28%. …

  10/21/2011 06:13 PM ET

• Funds’ Bright Spot: Discounters

  Registers are ringing at discount retailers. And that’s helping mutual funds book gains or limit losses. Analysts say protracted sluggishness in the economy is likely to keep feeding discounters’ coffers. The retail-discount variety industry group was atop the 197 IBD groups, based on …

  10/20/2011 06:21 PM ET