■ Economies
S Korean slip forecasted
A South Korean state think tank yesterday revised downward its forecast for this year's economic growth, citing a prolonged slump in domestic demand which is undercutting recovery. The Korea Development Institute said it now expects GDP to growth 5.2 percent, down from the April estimate of 5.5 percent. The institute attributed the stalled recovery mainly to the sharp rise in oil prices and credit tightening measures in the US and China. It projected GDP growth of 5.7 percent for the second quarter, down from its previous forecast of 6.1 percent. Its full-year private consumption growth fore-cast was sharply cut to 0.7 percent from 3.3 percent. At the same time, the institute raised its current account surplus projection for this year to US$24.7 billion from US$16.6 billion.
■ Insurance
China wants more coverage
China, losing nearly US$18 million a day to natural disasters, hopes to set up a system to insure against earthquakes and other catastrophes within three years, the China Daily said yesterday. "China has yet to forge a sophisticated and complete catastrophe insurance system," the paper quoted Liu Jingsheng, an official with the China Insurance Regulatory Commission, as saying. The commission also hoped to tap foreign underwriters for their expertise in reinsur-ance, earthquake model management and agricul-tural insurance, it said. Natural disasters had caused 28.5 billion yuan (US$3.44 billion) in losses so far this year, or an average of about 150 million yuan per day, it said, citing Civil Affairs Ministry figures. Damage to houses and infrastructure has usually been covered by the government or by dona-tions, but demand for an insurance system to cover all kinds of property was growing, it said.
■ Retail
Tesco gains China foothold
Britain's leading super-market chain Tesco won its first foothold in China yesterday, announcing it had signed a joint venture with retail chain Ting Hsin (頂新). Tesco said it had signed a 50-percent joint-venture agreement with Ting Hsin for its wholly-owned Ting Cao subsidiary, owner of the Hymall chain of stores. Tesco said it would acquire 50 percent of Ting Cao's equity in Hymall for ?140 million (US$260 million) cash, valuing the whole business at ?280 million pounds. The trans-action was expected to completed within four months, Tesco said in a statement to the London Stock Exchange. Hymall operates a chain of 25 hypermarkets in China and plans to open up to 10 more stores in the coming year.
■ Automobiles
Parts venture announced
Volkswagen plans to invest 1.42 billion yuan (US$171.9 million) in a new auto parts joint venture with its partner China FAW Group Corp, the German auto-maker said yesterday. Volkswagen has announced plans to invest up to 5.3 billion euros (US$6.56 billion) in China by 2008. The new company, called Volkswagen FAW Platform Co, will mainly produce axles for passenger cars at a factory in northeastern China, Volkswagen said in a statement. Production will begin late next year, the company said. Volkswagen will take a 60 percent stake and FAW the remainder, it said. The companies also plan to sign an agreement on a joint-venture engine plant in Dalian.
ROLLER-COASTER RIDE: More than five earthquakes ranging from magnitude 4.4 to 5.5 on the Richter scale shook eastern Taiwan in rapid succession yesterday afternoon Back-to-back weather fronts are forecast to hit Taiwan this week, resulting in rain across the nation in the coming days, the Central Weather Administration said yesterday, as it also warned residents in mountainous regions to be wary of landslides and rockfalls. As the first front approached, sporadic rainfall began in central and northern parts of Taiwan yesterday, the agency said, adding that rain is forecast to intensify in those regions today, while brief showers would also affect other parts of the nation. A second weather system is forecast to arrive on Thursday, bringing additional rain to the whole nation until Sunday, it
CONDITIONAL: The PRC imposes secret requirements that the funding it provides cannot be spent in states with diplomatic relations with Taiwan, Emma Reilly said China has been bribing UN officials to obtain “special benefits” and to block funding from countries that have diplomatic ties with Taiwan, a former UN employee told the British House of Commons on Tuesday. At a House of Commons Foreign Affairs Committee hearing into “international relations within the multilateral system,” former Office of the UN High Commissioner for Human Rights (OHCHR) employee Emma Reilly said in a written statement that “Beijing paid bribes to the two successive Presidents of the [UN] General Assembly” during the two-year negotiation of the Sustainable Development Goals. Another way China exercises influence within the UN Secretariat is
LANDSLIDES POSSIBLE: The agency advised the public to avoid visiting mountainous regions due to more expected aftershocks and rainfall from a series of weather fronts A series of earthquakes over the past few days were likely aftershocks of the April 3 earthquake in Hualien County, with further aftershocks to be expected for up to a year, the Central Weather Administration (CWA) said yesterday. Based on the nation’s experience after the quake on Sept. 21, 1999, more aftershocks are possible over the next six months to a year, the agency said. A total of 103 earthquakes of magnitude 4 on the local magnitude scale or higher hit Hualien County from 5:08pm on Monday to 10:27am yesterday, with 27 of them exceeding magnitude 5. They included two, of magnitude
Taiwan’s first drag queen to compete on the internationally acclaimed RuPaul’s Drag Race, Nymphia Wind (妮妃雅), was on Friday crowned the “Next Drag Superstar.” Dressed in a sparkling banana dress, Nymphia Wind swept onto the stage for the final, and stole the show. “Taiwan this is for you,” she said right after show host RuPaul announced her as the winner. “To those who feel like they don’t belong, just remember to live fearlessly and to live their truth,” she said on stage. One of the frontrunners for the past 15 episodes, the 28-year-old breezed through to the final after weeks of showcasing her unique