Beijing, China (AHN) – China has agreed to end subsidies of its wind power manufacturers that use domestic parts instead of imports, which violate World Trade Organization (WTO) rules and give Chinese firms an unfair advantage over U.S. manufacturers.

A complaint to the WTO filed by the United Steelworkers prompted China’s move, according to U.S. .Trade Representative Ron Kirk.

The end of subsidies by China’s government provides a more level playing field for U.S. wind turbine manufacturers to compete with Chinese products.

Kirk also criticized China for evading its transparency commitments by failing to provide the WTO with information about its subsidy programs on a regular basis. He said that because China is the second largest WTO trader that it is not acceptable for China to evade providing the WTO with the information.

However, critics say that China’s renewable energy manufacturing sector has grown so large that it is now so powerful that ending the illegal subsidies that allowed it to grow so large will not help other nations much to compete against Chinese manufacturers in the world market.

China’s Special Fund for Wind Power Manufacturing illegally gave individual grants of up to $22.5 million to Chinese manufacturers who agreed to use Chinese-made parts in the manufacturing of wind turbines, according to a case filed last year by the United States at the WTO.

The U.S. filed the suit so U.S. manufacturers could have an opportunity to supply parts to Chinese manufacturers.

The issue is especially important now as the U.S. struggles to create more jobs and close the huge trade gap with China.

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Pittsburgh, PA, United States (AHN) – H.J. Heinz Co. reported strong fiscal results on Friday but said it had to close some factories to fast-track productivity worldwide.

The Pittsburgh-based company is shuttering two plants in the United States, another two in Europe and one in the Pacific under a plan that will also centralize European supply chain operations in the Netherlands.

The closures will cut about 1,000 jobs and leave 76 factories worldwide.

Heinz said revenues for fiscal 2011 rose 2 percent to $10.7 billion. Net income for the year, which ended on April 27, was $990 million, or $3.06 per share, growing 14.4 percent from $865 million, or $2.71, last year.

The company said revenue from their North American consumer products grew 2 percent to $3.2 billion. The segment saw volume up 2 percent with strong performances from Heinz ketchup, Ore-Ida frozen potatoes and Smart Ones frozen entrees.

Sales of the U.S. Foodservice segment fell 1 percent to $1.4 billion. Pricing increased sales 2. percent.

Total fiscal revenue from the rest of the world dropped 12 percent to $470 million, largely due to the negative impact of foreign exchange rates, which reduced sales by 25 percent.

But higher prices raised sales by 17 percent. Emerging markets in Brazil, China, India and Russia also delivered 14 percent organic sales growth.

“Heinz delivered record sales, net income and cash flow in fiscal 2011, fueled by accelerating growth in key emerging markets,” president and chief executive William Johnson said in a statement.

“Through excellent execution of our long-term plan, Heinz enhanced its position as one of the best-performing global food companies while driving shareholder value and continued dividend growth,” Johnson added.

The company expects fiscal 2012 earnings per share of $3.24 to $3.32 at constant currency.

Heinz separately announced raising its annual dividend by 12 cents from $1.80 to $192 per share.

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Washington, DC, United States (AHN) – The U.S. State Department on Tuesday barred seven firms from trading with the U.S. because they supplied oil to Iran in violation of 1996 sanctions against the Islamic country.

Sanctioned were Venezuela’s state oil company, Petróleos de Venezuela, Ofer Brothers Group of Israel, Petrochemical Commercial Company International (PCCI) of the United Kingdom, Royal Oyster Group and Speedy Ship of the United Arab Emirates, Tanker Pacific of Singapore and Associated Shipbroking of Monaco.

Petroleos was found to have delivered $50 million worth of petroleum products to Iran between December 2010 and March this year.

Under the sanctions, the firms cannot bid for government contracts, obtain export licenses, and obtain export-import financing.

The department also sanctioned more than 15 people and companies in China, Iran, North Korea, Syria and elsewhere for illicitly trading in missile technology and weapons of mass destruction. They were banned from vying for U.S. government contracts and from buying and selling U.S. defense articles.

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NRCC – While House Speaker John Boehner announced Monday that House Republicans would seek responsible spending cuts to accompany any increase in the nation’s debt limit, Democrats continued to press for a new credit card to continue spending and borrowing from countries like China: Read more »

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Beijing, China (AHN) – Tightening measures by Beijing have helped to ease China’s inflation rate but not to contain it and officials warn that inflation now is spreading beyond food prices.

China’s central bank has increased interest rates by a quarter-point every two months. That resulted in slowing down inflation in consumer prices, but it did not contain the increases.

Rising prices for food, fuel and housing were all identified as serious problems causing the economy to overheat and result in double-digit inflation rates.

On the other hand, rising wages have helped to fuel consumer demand for those items.

China’s 11.2 percent annual inflation rate is down from 11.7 percent last month.

For now, observers expect the central bank to continue to raise interest rates and allow the yuan to appreciate in value against the dollar. That would result in lowering prices Chinese consumers pay for imported items such as fuel and food.

However, Chinese government officials have been opposed to allowing the yuan to appreciate because doing so would increase the prices of China’s exports to other countries.

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Washington, DC, United States (AHN) – The U.S. Consumer Product Safety Commission and Health Canada, in cooperation with the firm named below, today announced a voluntary recall of the following consumer product. Consumers should stop using recalled products immediately unless otherwise instructed. It is illegal to resell or attempt to resell a recalled consumer product.

Name of Product: Disney Princess Plastic Racing Trikes

Units: About 9,000 in the U.S. and 700 in Canada

Manufacturer: Kiddieland Toys Limited, of Scituate, Mass.

Hazard: The plastic castle display and the princess figures protruding from the top of the handle bar pose a laceration hazard if a child falls on it.

Incidents/Injuries: CPSC and Kiddieland have received three reports of children suffering facial lacerations.

Description: This recall involves the Disney Princess Plastic Racing Trikes. The trikes are pink and fuchsia with a purple seat and wheels. On top of the handlebar, there is a rotating castle display surrounded by three princess figures. “Disney Princess” is printed on the label in front of the trike just below the handlebar.

Sold at: Target, JCPenney, Meijer and H.E.B. stores nationwide and on the Web at www.target.com from January 2009 through April 2011 for about $50.

Manufactured in: China

Remedy: Consumers should immediately take the trikes away from children and contact Kiddieland for a free replacement handlebar with an enclosed rotating display.

Consumer Contact: For additional information, contact Kiddieland at (800) 430-5307 anytime, or visit the firm’s website at www.kiddieland.com.hk

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Washington, D.C., United States (AHN) – Concern and criticism are rising from abroad as difficulties of the U.S. government in controlling its debt threaten international markets.

So far this week, the Russian prime minister accused U.S. economic planners of “hooliganism” and the chief economist for the International Monetary Fund criticized Congress for lacking a “credible” plan for escaping more than $14 trillion in debt.

On Tuesday, China urged the U.S. government to take “responsible” steps to control its debt. China owns more U.S. debt than any other country.

On Monday, the credit rating service Standard & Poors downgraded the U.S. government’s credit from stable to negative.

Meanwhile, Republicans and Democrats are fighting over whether to raise the nation’s debt ceiling.

The debt ceiling refers to the highest amount of debt the U.S. government can assume under the law.

At the current rate, the U.S. government will reach its $14.3 trillion debt ceiling on May 16, according to the U.S. Treasury.

Republican leaders said again Thursday they will agree to raise the debt ceiling only if they get guarantees of drastic spending cuts for the federal budget.

Democrats are reluctant to make cuts to programs such as Medicare and Social Security, which they say are vital to many households.

The unresolved dispute prompted International Monetary Fund Chief Economist Olivier Blanchard to tell the French magazine Le Monde, “There are reasons to be worried.”

“The United States lacks a credible plan, for the medium term, to reduce its budget deficit,” Blanchard said in the magazine interview.

“The ideological gap is huge between Democrats and Republicans on how to deal with the problem,” Blanchard said.

An International Monetary Fund report last week said U.S. debt could reach 100 percent of its gross domestic product by 2015 without drastic budget cutbacks.

Even harsher criticism came from Russian Prime Minister Vladimir Putin, who said during his annual address to parliament that “everything is not so good for our friends in the States.”

The U.S. economy is teetering as a result of a huge trade imbalance between imports and exports and growing annual budget deficits, he said.

Russia does not “have the luxury for such hooliganism,” Putin said.

He also accused the United States of flooding international markets with cash that lacks value because of the high debt.

The Treasury Department is buying back $600 billion in government securities in an effort to pump up the value of the dollar.

Mexican economists say the U.S. government’s inability to control its debt will result in increased cash flow into Mexico, an appreciation in the value of the peso, volatility in its stock market and higher unemployment.

Mexico’s economic trends are closely tied to the U.S. economy.

Gabriel Perez del Peral, an American University economist, said an increased value for the peso would slow Mexico’s exports.

“The change in perspective for U.S. debt will generate a greater appreciation of currencies for emerging markets and will complicate unemployment,” Perez told the Mexican news media.

He urged the Bank of Mexico to adopt cautious policies to protect the value of the country’s currency.

“The peso’s appreciation will generate greater unemployment and the economy will overheat, which will increase commodity prices,” Perez said.

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Washington, DC, United States (AHN) – International Monetary Fund officials say the United States government should start working on its deficit.

If the U.S. makes a down payment on its deficit by making significant cuts in its deficit in 2012 and 2013, it would ease the burden in future years, the IMF’s Fiscal Monitor said.

IMF officials warned that the size of the U.S. deficit was causing instability in financial markets.

However, the IMF also warned that cuts to the deficit and the benefits that accrue should be fairly distributed across all sectors of the economy.

IMF officials singled out the U.S. in particular because they said it needed to take the measures necessary to allow it to meet its fiscal responsibilities.

In addition, the IMF said that part of an ongoing global economic recovery depends on the U.S. getting a grip on its deficit, along with China allowing the yuan to appreciate.

Moreover, now is a good time for the U.S. and other developed nations to make deficit cuts, the IMF said, because private sector spending in developed nations in general is increasingly replacing government spending in driving the economic recovery.

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Washington, D.C., United States (AHN) – Williams-Sonoma Recalls Hot Chocolate Pots Due To Burn and Laceration Hazards

WASHINGTON, D.C. – The U.S. Consumer Product Safety Commission and Health Canada, in cooperation with the firm named below, today announced a voluntary recall of the following consumer product. Consumers should stop using recalled products immediately unless otherwise instructed. It is illegal to resell or attempt to resell a recalled consumer product.

Name of Product: Hot chocolate pots

Units: About 28,000 units in the United States and 700 in Canada

Importer: ICI USA, LLC, of Seattle, Wash.

Distributor: Williams-Sonoma Inc., of San Francisco, Calif.

Hazard: The handle of the hot chocolate pot can break off during use, posing burn and laceration hazards.

Incidents/Injuries: The firm has received 28 reports of handles breaking off of the pots, including eight reports of injuries involving minor burns or cuts.

Description: This recall involves the Whirly Whip hot chocolate pots sold individually as item number 2981454 or 4986535, and as part of the Whirly Whip hot chocolate pot gift set item number 3021714. The item number can be found on the product’s box, below the bar code. The pot is made of white porcelain and has a red handle. The lid has a red knob and a frother attached to the underside of the lid knob.

Sold at: Williams-Sonoma stores nationwide, online at www.williams-sonoma.com and through Williams-Sonoma catalogs from October 2010 through January 2011 for between $30 and $40.

Manufactured in: China

Remedy: Consumers should immediately stop using the recalled hot chocolate pots and either return the product to any Williams-Sonoma store or contact Williams-Sonoma for instructions on how to return the product for a full refund.

Consumer Contact: For additional information, contact Williams-Sonoma toll-free at (855) 643-4206 between 4 a.m. and 9 p.m. PT seven days a week or visit the firm’s website at www.williams-sonoma.com

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Jerusalem, Israel Arieh O’Sullivan – The unrest that has brought down two Middle Eastern leaders and threatens a host of others could be bad news for the global arms industry, which regards the region, with its security issues, deep pockets and little domestic manufacturing, as a choice market.

Faced with demands for more political pluralism and economic policies that spread the wealth, governments across the region have stepped up subsidies for basic commodities and promised make-work schemes, all of which will put pressure on their defense budgets. Meanwhile, violent crackdowns in Bahrain and Libya have given European governments cold feet about doing arms deals.

Iraq, which has undertaken such consumer purse-pleasing steps as 1,000 kilowatt-hours of free electricity a month and increased food rations, announced Feb. 14 that it had diverted the money previously allocated for U.S.-made Lockheed Martin F-16 fighter jets to save the $900 million it needs.

“If the internal pressures of civil discontent in Iraq continue and percolate, I can definitely see more of that money going the way it has gone …diverted toward food and relief for the most poverty stricken Iraqi,” Dan Darling, Middle East Defense analyst for Forecast International, told The Media Line.

Arms sales to the Middle East rose nearly 40 percent in the last five years, according to the Stockholm International Peace Research Institute (SIPRI). As late as mid-January, industry analysts predicted that defense spending in the region would continue to grow dramatically. Forecast International said spending on modernization programs would expand 14 percent, with Iraq alone investing an average of $12.5 billion every year through 2015 to bolster internal-security challenges.

But in the space of a month, those forecasts have been dashed. Egypt faces a fiscal squeeze as its economy slows and the government has promised pay raises and other handouts. Jordan has taken similar measures to calm the streets. In Oman, where police shot dead as many as six demonstrators on Sunday, the government ordered a monthly allowance of 150 riyals ($390) for each registered job seeker and announced 50,000 new jobs.

Even countries such as the United Arab Emirates (UAE), which has remained calm so far and has considerable wealth from oil and trade, may be looking to save money by shopping around for cheaper weaponry.

Last week, the UAE announced that it had stopped talks with the Italian firm Aermacchi over a $1.37 billion deal to buy 48 M-346 jet trainers. It is now expected that they will return to talks with South Koreans to purchase the T-50 trainer, a move that manifested a greater readiness to engage in deals with Far East nations. Current annual UAE trade with the U.S. is $13 billion, but it is $25 billion with China, according to Defense News.

Iraq, which faces serious security issues both domestically and on its border, may return to the arms market but look for cheaper tanks, guns and jets. “Iraq is going to have some serious security issues in terms of border security and their position in the Middle East,” Darling said, adding they may seek cheaper alternatives for arms with France or even Russia.

Thousands of weapons dealers were in Abu Dhabi last week for IDEX 2011, the Middle East’s largest arms fair. It drew over 1,060 companies from 53 countries. A spokesperson for IDEX told The Media Line that the arms fair saw a “wealth of deals” and that the UAE armed forces alone said it had signed deals worth about $4 billion.

Despite a hefty public relations campaign, participants told The Media Line that the fair was greatly toned down from previous years, particularly since the delegations from Egypt, Tunisia, Libya and Yemen never showed up. “The opening ceremony was very short and a lot of people left early,” said one, who declined to be named.

As demand falls, arms makers are also being pressured from the supply side, as their host governments clamp down on weapons sales to countries that have used their lethal weapons against protestors. Hundreds were killed in Egypt and Tunisia before their leaders were toppled. The death toll in Libya, where Muammar Gaddafi has used bombers and helicopter gunships against rebels, has probably passed 1,000.

British Prime Minster David Cameron, who visited Egypt and the Gulf last week, to urge on democratic opponents of the regimes, also had a group of arms executive in his entourage, provoking controversy back at home with the mixed message he was sending the region. Britain, which exports some $6.5 billion in arms annually, suspended sales to Libya and revoked 44 licenses to sell arms to Bahrain, where at least seven have been killed.

The U.S. was sending mixed signals, too, after The Wall Street Journal reported that the Obama administration had launched a review of military assistance and prospective weapons sales to countries experiencing popular revolts.

“I don’t think that in the short term we are going to see any interruption in arms trade at least from the U.S. Europe probably will review each country. They are a little more hesitant. They don’t seem to feel they are shaping the Middle East the way the U.S. does,” Forecast International’s Darling said.

Such hesitancy is unlikely to be felt by China and other emerging arms-export powers in Asia. China advertised its ambitions at IDEX 2011, where it set up a large and glitzy pavilion. Besides its heavy arms, the state-owned Chinese companies were also hawking at IDEX their sophisticated avionics and shipbuilding expertise.

“This has been an excellent business opportunity for us,” said Yuan Jun, marketing director for China North Industries, which produces rocket launchers, tanks and artillery. “We will certainly have a presence at every event for the foreseeable future.”

The U.S., by far the world’s largest weapons producer, sells about a third of its arms exports to the Middle East, and a drive by China into the region would be a serious loss, “China is interested in seeing the geopolitical order become more multi-polar and not one of U.S. hegemony,” a senior Israeli official told The Media Line.

The political turmoil is also a headache for Russia’s arm industry as long-time client regimes, like Libya, fall to the opposition, Defense Minister Anatoly Serdyukov admitted this week. “There’s a chance we might lose something,” he said on a visit to Russia’s Pacific port city of Vladivostok. “But I hope that the main weapons and military equipment agreements will be fulfilled.”

Russia stands to lose some $3.8 billion of orders contracted or under negotiation to Libya after the United Nations Security Council declared an embargo on Libya, Russia’s Interfax news agency quoted a military source as saying. Nevertheless, Russia is going ahead with a $300 million deal to sell anti-ship Yakhont cruise missiles to Syria.

But Russia isn’t the only country whose weapons sales are threatened by regime change. Political uncertainty is likely to grip the Middle East for some time, as transition governments struggle to win support and gain legitimacy. Some of them may fall, raising concerns that sophisticated arms could find themselves in the hands of anti-Western governments possibly controlled by Islamic radicals, as happened when the Shah of Iran was overthrown in 1979.

“This is definitely on the minds of a lot of people in Congress, probably some people in the Pentagon and I have no doubt within the administration. I imagine it is a bit of a wait-and-see approach,” Darling of Forecast International said. “Egypt is definitely something to keep an eye on. We sold an awful lot of equipment to them in the past.”

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