■ China's economy
CPI forecast at 4.1 percent
Inflation in China is expected at 4.6 percent in the fourth quarter, giving a full year consumer price index (CPI) reading of 4.1 percent, a central bank report showed yesterday. The People's Bank of China, the central bank, said the short-term results of macro-economic controls had become apparent and the effects would continue in the long-run. It projected CPI in the first and second quarters of next year at 4.2 percent and 4.0 percent, respectively. At the same time, the Development Research Center (DRC), a government think tank under the State Council or Cabinet, put the CPI at 4.0 percent this year. "Inflation for 2004 should be controlled at around 4.0 percent," the Shanghai Securities quoted the DRC as saying. "Fourth quarter CPI in 2003 was already high, which leaves limited room for a high price rise in the fourth quarter this year," it said.
■ Competitiveness
EU criticized in report
The EU was berated in a hard-hitting new report Wednesday for failing to deliver on a promise to transform itself into the world's most dynamic economy by 2010. The widely trailed 51-page report, called "Facing the Challenge", makes gloomy reading for EU leaders on the eve of a two-day summit that will debate the bloc's "Lisbon Strategy" for economic revitalization. The EU's targets for growth and employment are falling behind, and not just because of leaner economic times, budgetary constraints or the addition of 10 relatively poorer member states in May, the report said. "Unfortunately progress to date has been inadequate, largely due to a lack of commitment and political will," it said.
■ Computers
Microsoft, Intel team up
Microsoft Corp, the world's largest software maker, and Intel Corp plan their first joint advertising campaign to promote personal computers that let home users record television and play music. The first phase of the "digital joy" campaign begins Sunday and will cost "several tens of millions of dollars," said Brad Brooks, a director of Microsoft's Windows consumer marketing effort. The PCs use Microsoft's Windows software and Intel's Pentium 4 chips. Microsoft last month began selling a version of Windows for use on so-called Media Center PCs that double as home entertainment hubs. Intel, the world's largest computer-chip maker, and Microsoft see such products as a way to spur sales of home PCs, which have grown faster than business machines since 2002 and are poised to repeat that again next year.
■ Airlines
American to axe more jobs
American Airlines, struggling to compete with lower-overhead carriers, will cut more jobs to reduce costs, chief executive Gerard Arpey said Wednesday. The company had already disclosed that it would lay off up to 650 mechanics and 450 pilots, as CEO Gerard Arpey reminded investors during a meeting in Fort Worth. "We will see more cuts across the board, all workers, in the months ahead," Arpey said. American and other carriers are losing money as they are squeezed by high fuel costs and tough competition that makes it hard to raise fares. Arpey also blamed the airline industry's problems on carriers continuing to add seats for sale, which has depressed fares. American has joined in the rush -- increasing capacity by 2.3 percent last month, although traffic rose more, up 9.1 percent.
RESPONSE: The transit sends a message that China’s alignment with other countries would not deter the West from defending freedom of navigation, an academic said Canadian frigate the Ville de Quebec and Australian guided-missile destroyer the Brisbane transited the Taiwan Strait yesterday morning, the first time the two nations have conducted a joint freedom of navigation operation. The Canadian and Australian militaries did not immediately respond to requests for comment. The Ministry of National Defense declined to confirm the passage, saying only that Taiwan’s armed forces had deployed surveillance and reconnaissance assets, along with warships and combat aircraft, to safeguard security across the Strait. The two vessels were observed transiting northward along the eastern side of the Taiwan Strait’s median line, with Japan being their most likely destination,
‘NOT ALONE’: A Taiwan Strait war would disrupt global trade routes, and could spark a worldwide crisis, so a powerful US presence is needed as a deterrence, a US senator said US Senator Deb Fischer on Thursday urged her colleagues in the US Congress to deepen Washington’s cooperation with Taiwan and other Indo-Pacific partners to contain the global security threat from China. Fischer and other lawmakers recently returned from an official trip to the Indo-Pacific region, where they toured US military bases in Hawaii and Guam, and visited leaders, including President William Lai (賴清德). The trip underscored the reality that the world is undergoing turmoil, and maintaining a free and open Indo-Pacific region is crucial to the security interests of the US and its partners, she said. Her visit to Taiwan demonstrated ways the
GLOBAL ISSUE: If China annexes Taiwan, ‘it will not stop its expansion there, as it only becomes stronger and has more force to expand further,’ the president said China’s military and diplomatic expansion is not a sole issue for Taiwan, but one that risks world peace, President William Lai (賴清德) said yesterday, adding that Taiwan would stand with the alliance of democratic countries to preserve peace through deterrence. Lai made the remark in an exclusive interview with the Chinese-language Liberty Times (sister paper of the Taipei Times). “China is strategically pushing forward to change the international order,” Lai said, adding that China established the Asia Infrastructure Investment Bank, launched the Belt and Road Initiative, and pushed for yuan internationalization, because it wants to replace the democratic rules-based international
RELEASED: Ko emerged from a courthouse before about 700 supporters, describing his year in custody as a period of ‘suffering’ and vowed to ‘not surrender’ Former Taiwan People’s Party (TPP) chairman Ko Wen-je (柯文哲) was released on NT$70 million (US$2.29 million) bail yesterday, bringing an end to his year-long incommunicado detention as he awaits trial on corruption charges. Under the conditions set by the Taipei District Court on Friday, Ko must remain at a registered address, wear a GPS-enabled ankle monitor and is prohibited from leaving the country. He is also barred from contacting codefendants or witnesses. After Ko’s wife, Peggy Chen (陳佩琪), posted bail, Ko was transported from the Taipei Detention Center to the Taipei District Court at 12:20pm, where he was fitted with the tracking
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