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BUSINESS A25
Monday 7 March 2016
Seeds of trouble: China’s top economic planner: no ‘hard landing’
Monsanto could
move out of India BEIJING (AP) — China’s top Xu Shaoshi, director of China’s National Development and Reform Commission, waits as reporters
economic planning official raise their hands to ask questions at a press conference in Beijing, Sunday, March 6, 2016.
NIRMALA GEORGE on Sunday said it is impossi-
Associated Press ble that the Chinese econ- (AP Photo/Mark Schiefelbein)
NEW DELHI (AP) — U.S. seed omy would have a “hard
giant Monsanto has threat- landing” — or a sharp slow- conference on the con- for the growth of the world ployment. At least 1.5 mil-
ened to pull its genetically down after a period of ro- gress’ sidelines, Xu said Chi- economy.” lion workers — and possibly
modified crop technology bust growth — and offered na would remain stable de- Xu said Beijing is taking steps millions more — are due
from India if the govern- assurances that it would spite sustained turbulence to reduce overcapacity in to be let go by state-run
ment goes ahead with its continue to contribute to in the global economy. production. China will cut coal mines and steel mills,
plan to cut the company’s global growth, not hinder “We are completely ca- steel production by 100 mil- while the People’s Libera-
royalty fees. Monsanto’s it. pable of running China’s lion to 150 million tons over tion Army is shaving 300,000
joint venture firm in India Xu Shaoshi, director of the economy within a reason- five years and another 500 jobs.
said that it would be diffi- National Development able range,” Xu said. “We million tons in coal produc- Meanwhile, the govern-
cult to bring new technolo- and Reform Commission, are fully confident about tion in three to five years. ment is under pressure to
gies to India because it said at a news conference the prospects for develop- Beijing has set aside funds find white collar jobs for the
was becoming difficult for that China’s economy has ment.” “Our contribution to help resettle workers af- record 7.7 million students
the company to recoup inner flexibility and abilities to the global economy is fected by the reductions, graduating from China’s
its investments in research to resist risks. very obvious,” he added. and Xu said there would colleges and universities
and development of ge- “I can say, China’s econo- “We are still a major engine not be any spike in unem- this year.q
netically modified seeds. my will absolutely not have
Shilpa Divekar Nirula, chief a hard landing,” Xu said.
of Monsanto’s India unit, “The so-called predictions
said in a statement seen for a hard landing will defi-
late Saturday that if the nitely come to nothing.
committee recommends Please rest assured, this
imposing a cut in the fees possibility does not exist.”
that local seed compa- Last year, China’s growth
nies pay to use Monsan- slowed to a 25-year low of
to’s crop genes then the 6.9 percent — but Xu said
company would have to that this was still one of the
reevaluate its position in fastest expansion rates in
India. Nirula said it was the world. On Saturday,
difficult for Mahyco Mon- Premier Li Keqiang said
santo Biotech (India) Lim- in a report to the annual
ited, the company’s joint National People’s Con-
venture, “to justify bring- gress that authorities set a
ing new technologies into growth target of 6.5 to 7
India in an environment percent for this year.
where such arbitrary and In his remarks at a news
innovation-stifling govern-
ment interventions make Ex-BOE chief says euro a ‘very serious problem’
it impossible to recoup re-
search and development LONDON (AP) — The Euro- case and therefore it does ate a free-trade deal with access to the EU’s single
investments.” In Decem- pean single currency is a matter to us what goes on the EU while escaping the market “still have to pay
ber, India’s government serious problem for Britain there,” said King, who now bloc’s “top-down legisla- into the budget of the
ordered that cotton seed whether or not the country sits in Parliament’s unelect- tion and regulation.” community and they have
prices, including royalties leaves the European Union, ed upper chamber, the But German Finance Min- to accept the free move-
on seeds, be controlled a former governor of the House of Lords. ister Wolfgang Schaeuble ment of people” from EU
from the 2016-17 crop year. Bank of England said Sun- Nineteen of the EU’s 28 said countries that wanted member states.q
India’s agriculture ministry day. members use the euro,
has set up a committee to Mervyn King said that even which has suffered instabil-
determine the price of cot- though Britain does not ity since the 2008 financial
ton seeds, including fees use the euro, “we are in- crisis hammered the cur-
the company charges for fluenced and affected by rency’s debt-burdened
licensing crop genes. what goes on in the euro weaker members, particu-
“If the committee recom- area.” He says the euro has larly Greece.
mends imposing a sharp, been economically “a, if Those who want to leave
mandatory cut in the trait not disaster, very serious the EU say the crisis shows
fees paid on Bt-cotton problem.” Britain would be better off
seeds, MMBL will have no Asked on BBC television if outside the bloc.
choice but to reevaluate that meant Britain should Economic issues have
every aspect of our posi- leave the EU, King said Sun- dominated the debate
tion in India,” Nirula said. day: “I don’t think you can ahead of Britain’s June 23
The company said it was draw that conclusion.” referendum on whether to
“shocked and disappoint- He said “in or out,” Britain stay in the EU.
ed” at the news that the would have close ties to London Mayor Boris John-
government plans to re- the eurozone. son, a leader of the “out”
duce the “trait fees,” or the “The euro area is our big- campaign, said Sunday
fees that seed companies gest trading partner, that’s that after leaving Britain
pay Mahyco Monsanto going to carry on being the would be able to negoti-
to use its crop genes, by
around 70 percent.q
