Feds probe FedEx, UPS over online drug shipments

SAN FRANCISCO (AP) — FedEx and UPS have disclosed they are targets of a federal criminal investigation related to their dealings with online pharmacies, which are at the center of an international crackdown on prescription drug abuse.

The shipping companies made the disclosures in regulatory filings over the last several weeks. FedEx spokesman Patrick Fitzgerald confirmed the probe in a prepared statement and a phone interview Thursday.

The investigation of the country’s two largest shippers stems from a blitz against online pharmacies that was launched in 2005. Since then, dozens of arrests have been made, thousands of websites shuttered and tens of millions of dollars and pills seized worldwide as investigators continue to broaden the probe beyond the operators.

Last year, Google Inc. agreed to pay $ 500 million to settle allegations by the Justice Department that it profited from ads for illegal online pharmacies.

A federal jury on Thursday convicted three men of operating illegal pharmacies that used FedEx Corp. and UPS Inc. to deliver drugs without proper prescriptions. Seven others have been convicted in San Francisco this year.

Fitzgerald said he didn’t know if the FedEx investigation was connected to the San Francisco cases, but U.S. Department of Justice investigators based in San Francisco are looking into issues “related to the transportation of packages for online pharmacies.” He called the probe “absurd” and said the Memphis, Tenn., company denied any wrongdoing

A spokesman with the U.S. attorney’s office in San Francisco declined to comment. A spokesman for Atlanta-based UPS couldn’t be reached after business hours Thursday.

UPS disclosed the investigation Nov. 1 in a regulatory filing reporting its quarterly earnings.

“We have received requests for information from the DOJ in the Northern District of California in connection with a criminal investigation relating to the transportation of packages for online pharmacies that may have shipped pharmaceuticals in violation of federal law,” the company stated. UPS said it was cooperating with the investigation and is “exploring the possibility of resolving this matter.”

FedEx was more defiant. Fitzgerald said the company has no plans to plea bargain with federal officials.

“Settlement is not an option when there is no illegal activity,” Fitzgerald said.

Both companies said they were served with grand jury subpoenas between 2007 and 2009. Fitzgerald declined to discuss why FedEx was now disclosing the investigation, but he confirmed that the company is under investigation for allegedly aiding and abetting online pharmacies that illegally ship prescription drugs.

Fitzgerald said the Drug Enforcement Agency has refused FedEx‘s request for a list of online pharmacies under investigation. Without such a list, Fitzgerald said it’s impossible to know which companies are operating illegally.

“We have no interest in violating the privacy of our customers by opening and inspecting their packages in an attempt to determine the legality of the contents,” Fitzgerald said.

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Associated Press writer Alicia A. Caldwell in Washington contributed to this report.

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MPs raise doubts over bank sales

16 November 2012 Last updated at 02:14 ET

A parliamentary committee has said the Treasury’s sale of Northern Rock in 2011 was “fortunate”, and Lloyds and RBS may not be sold “for many years”.

A Public Accounts Committee report noted that while the Rock’s sale was “well-handled”, taxpayers were still set to lose £2bn on the bank’s rescue.

MPs were not convinced that a profit would be made on the £66bn rescue of the two bigger banks any time soon.

A Treasury aide said it aims “to get the best possible value for taxpayers”.

“This government is putting right the catastrophic regulatory failings of the last decade that led to the biggest bank bailout in the world,” the Treasury aide added.

The government currently owns 40% of Lloyds, and 82% of RBS.

Lucky timing

Northern Rock was rescued in February 2008 by the previous government.

The sale of Northern Rock to Virgin Money in 2011 was carried out by the current government under time pressure, as EU state aid rules required the Treasury to dispose of its holding by 2013.

The committee said that UK Financial Investments (UKFI) – the state-owned body that manages the Treasury’s investments in the banks it rescued during the financial crisis – was lucky that Virgin was so keen to buy, given that there were only ever two bidders for the bank.

“The Treasury was fortunate that one of them had a strategic interest in purchasing a small retail bank at the end of 2011,” the committee’s report said, noting that current market conditions are less favourable than they had been at the time of the sale.

“The low level of competition does not give us confidence that the taxpayer will make a profit on the sale of RBS or Lloyds,” it added.

Continue reading the main story

September 2007 The run on Northern Rock

February 2008 Northern Rock nationalised

September 2008 Lloyds announces takeover of Halifax Bank of Scotland

October 2008 Government part-nationalises RBS and Lloyds-HBOS

January 2010 Northern Rock split into good and bad banks

December 2010 FSA clears RBS management of wrongdoing

November 2011 RBS agrees branch sale to Santander

November 2011 Northern Rock sold to Virgin Money

December 2011 Northern Rock sale to be investigated by NAO; FSA releases RBS report

September 2012 NAO releases Northern Rock report

October 2012 RBS branch sale to Santander collapses; RBS taken off Asset Protection Scheme

While the Treasury invested £1.4bn in Northern Rock shares, this was small in comparison to the £66bn invested in RBS and Lloyds.

“It seems inevitable that their ‘temporary public ownership’ will last for some time, if getting value for our investment remains the most important objective for government.”

The £2bn price tag for bailing out Northern Rock is not definite, and was drawn by the committee from a report provided to the committee by the National Audit Office (NAO) earlier this year.

The actual losses will depend on whether and how much profit UKFI is able to make from the Northern Rock assets that it did not sell to Virgin, and continues to own.

‘Lessons learnt’

Like the NAO, the committee was critical of the Treasury and UKFI – which took over ownership from the Treasury in 2010 – for being too slow to override the Rock’s management following the bank’s 2008 rescue.

“Northern Rock PLC still lost money in 2011, and its strategy should have been challenged sooner,” the report claimed.

The bank also failed to hit a £15bn government lending target during its time in public ownership, achieving only £9.1bn.

The report said that the government should have been more critical of the “optimistic” plan put forward by management for how to split the Rock up into a “good bank” that was sold to Virgin, and a “bad bank” with billions of pounds of problem mortgages that was retained in state ownership.

“The Treasury should ensure that lessons it learns from the sale are captured and can be applied to future disposals, including any sale of RBS or Lloyds.”

Margaret Hodge MP, chairman of the PAC, said the rescue of Northern Rock was made more complicated because the Treasury was unable to respond promptly to the banking crisis as “it lacked the right skills and understanding. It was slow to nationalise the bank and that made a loss difficult to avoid.

“The Treasury had spent five months trying to find a private sector buyer before giving up. After nationalisation, it then failed to effectively challenge the optimistic business plan put forward by the bank’s management to split the bank.”

She predicted that this would not be the last banking crisis, so the “Treasury must ensure it retains the right staff with the right skills to understand the risks and respond effectively.

“It needs to learn the lessons from the creation and sale of Northern Rock and make sure that these are applied in future, including to any sale of RBS and Lloyds.”

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Egypt recalls envoy to Israel after Gaza strike

CAIRO (AP) — Egypt has recalled its ambassador to Israel after an Israeli airstrike killed the military commander of Gaza‘s ruling Hamas.

In a statement read on state TV late Wednesday, spokesman Yasser Ali said that President Mohammed Morsi recalled the ambassador and asked the Arab League‘s Secretary General to convene an emergency ministerial meeting in the wake of the Gaza violence.

Morsi also called for an immediate cease fire between Israel and Hamas, an offshoot of Morsi’s Muslim Brotherhood. Israel says it struck in response to rocket attacks from Gaza.

Hours earlier, Morsi’s Muslim Brotherhood group denounced the Israeli airstrike as a “crime that requires a quick Arab and international response to stem these massacres.”

Relations between Israel and Egypt have deteriorated since longtime President Hosni Mubarak was ousted last year.

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Billy Joel, Rihanna fight Pandora over compensation

(Reuters) – Some of music’s most notable names including Billy Joel, Rihanna and Missy Elliott have signed an open letter to Pandora Media Inc opposing the online music company‘s push to change how artists are compensated.

Pandora is currently lobbying lawmakers in U.S. Congress to pass the “Internet Radio Fairness Act,” which would change regulation of how royalties are paid to artists.

A group of 125 musicians who say they are fans of Pandora argue the bill would cut by 85 percent the amount of money an artist receives when his or her songs are played over the Internet.

“Why is the company asking Congress once again to step in and gut the royalties that thousands of musicians rely upon? That’s not fair and that’s not how partners work together,” said the letter, to be published this weekend in Billboard, the influential music industry magazine.

A statement with an advance copy of the letter was released on Wednesday by musicFirst, a coalition of musicians and business people, and SoundExchange, a nonprofit organization that collects royalties set by Congress on behalf of musicians.

“Internet radio and the artists whose music is played and listened to on the Internet are indeed all in this together,” Tim Westergren, Pandora’s founder and chief strategy officer, said in a statement.

“A sustainable Internet radio industry will benefit all artists, big and small.”

FLASHPOINT

The issue of how musicians are paid for Internet streaming of their songs has been a flashpoint for Pandora.

Pandora is a mostly advertising-supported online music company, founded more than a decade ago, that streams songs through the Internet. In October, it said its share of total U.S. radio listening was almost 7 percent, up from about 4 percent during the same period last year.

Pandora’s success has been double-edged – the more customers it gains, the more money it has to pay overall for rights to stream music.

So far, that rate is set until 2015.

Pandora, along with other music services such as Clear Channel Communications, is supporting the bill on grounds that different providers, such as satellite and cable, pay different rates.

“The current law penalizes new media and is astonishingly unfair to Internet radio,” Pandora said on its website.

“We are asking for our listeners’ support to help end the discrimination against internet radio. It’s time for Congress to stop picking winners, level the playing field and establish a technology-neutral standard.”

The Internet Radio Fairness Act is a bipartisan bill sponsored by U.S. representatives Jason Chaffetz and Jared Polis along with Sen. Ron Wyden.

Shares of Pandora closed 4.6 percent lower at $ 7.31 on the New York Stock Exchange on Wednesday.

(Reporting by Jennifer Saba in New York; editing by Matthew Lewis)

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Booze calories nearly equal soda’s for US adults

NEW YORK (AP) — Americans get too many calories from soda. But what about alcohol? It turns out adults get almost as many empty calories from booze as from soft drinks, a government study found.

Soda and other sweetened drinks — the focus of obesity-fighting public health campaigns — are the source of about 6 percent of the calories adults consume, on average. Alcoholic beverages account for about 5 percent, the new study found.

“We’ve been focusing on sugar-sweetened beverages. This is something new,” said Cynthia Ogden, one of the study’s authors. She’s an epidemiologist with the Centers for Disease Control and Prevention which released its findings Thursday.

The government researchers say the findings deserve attention because, like soda, alcohol contains few nutrients but plenty of calories.

The study is based on interviews with more than 11,000 U.S. adults from 2007 through 2010. Participants were asked extensive questions about what they ate and drank over the previous 24 hours.

The study found:

—On any given day, about one-third of men and one-fifth of women consumed calories from beer, wine or liquor.

—Averaged out to all adults, the average guy drinks 150 calories from alcohol each day, or the equivalent of a can of Budweiser.

—The average woman drinks about 50 calories, or roughly half a glass of wine.

—Men drink mostly beer. For women, there was no clear favorite among alcoholic beverages.

—There was no racial or ethnic difference in average calories consumed from alcoholic beverages. But there was an age difference, with younger adults putting more of it away.

For reference, a 12-ounce can of regular Coca-Cola has 140 calories, slightly less than a same-sized can of regular Bud. A 5-ounce glass of wine is around 100 calories.

In September, New York City approved an unprecedented measure cracking down on giant sodas, those bigger than 16 ounces, or half a liter. It will take effect in March and bans sales of drinks that large at restaurants, cafeterias and concession stands.

Should New York officials now start cracking down on tall-boy beers and monster margaritas?

There are no plans for that, city health department officials said, adding in a statement that while studies show that sugary drinks are “a key driver of the obesity epidemic,” alcohol is not.

Health officials should think about enacting policies to limit alcoholic intake, but New York’s focus on sodas is appropriate, said Margo Wootan, director of nutrition policy for the Center for Science in the Public Interest, a public health advocacy group.

Soda and sweetened beverages are the bigger problem, especially when it comes to kids — the No. 1 source of calories in the U.S. diet, she said.

“In New York City, it was smart to start with sugary drinks. Let’s see how it goes and then think about next steps,” she said.

However, she lamented that the Obama administration is planning to exempt alcoholic beverages from proposed federal regulations requiring calorie labeling on restaurant menus.

It could set up a confusing scenario in which, say, a raspberry iced tea may have a calorie count listed, while an alcohol-laden Long Island Iced Tea — with more than four times as many calories — doesn’t. “It could give people the wrong idea,” she said.

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Online:

CDC report: http://www.cdc.gov/nchs/

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France avoids recession; GDP up 0.2 pct in Q3

PARIS (AP) — France‘s economy narrowly avoided a recession, growing slightly in the third quarter, according to official statistic released Thursday.

The French economy hasn’t recorded growth since the third quarter of last year and had been widely expected to start its slide into recession in the third quarter — technically defined as two consecutive quarters of negative gross domestic product. Instead, Insee, the national statistics agency, said GDP rose 0.2 percent on an annualized basis in the July-to-September period.

But the agency also revised down figures for the second quarter, saying the economy shrank 0.1 percent then. It had previously said growth was stagnant, as it had been for the previous two quarters.

Fixing France’s economy amid a European-wide crisis is President Francois Hollande‘s biggest challenge. He has promised to rein in massive government spending and reduce the deficit, largely by raising taxes.

But those measures have put a stranglehold on growth, and the country has watched unemployment tick steadily up as a raft of companies announced layoffs in recent months. The jobless rate now stands at 10.8 percent, according to European statistics.

Hollande has promised to restore the country’s competitiveness by offering a tax break to companies that kicks in next year, but many are still waiting to see how he will reform the country’s stringent labor rules. Those rules make firing difficult and thus make employers reluctant to hire, even once the economy starts growing.

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General investigated for emails to Petraeus friend

PERTH, Australia (AP) — In a new twist to the Gen. David Petraeus sex scandal, the Pentagon said Tuesday that the top American commander in Afghanistan, Gen. John Allen, is under investigation for alleged “inappropriate communications” with a woman who is said to have received threatening emails from Paula Broadwell, the woman with whom Petraeus had an extramarital affair.

Defense Secretary Leon Panetta said in a written statement issued to reporters aboard his aircraft, en route from Honolulu to Perth, Australia, that the FBI referred the matter to the Pentagon on Sunday.

Panetta said that he ordered a Pentagon investigation of Allen on Monday.

A senior defense official traveling with Panetta said Allen’s communications were with Jill Kelley, who has been described as an unpaid social liaison at MacDill Air Force Base, Fla., which is headquarters to the U.S. Central Command. She is not a U.S. government employee.

Kelley is said to have received threatening emails from Broadwell, who is Petraeus’ biographer and who had an extramarital affair with Petraeus that reportedly began after he became CIA director in September 2011.

Petraeus resigned as CIA director on Friday.

Allen, a four-star Marine general, succeeded Petraeus as the top American commander in Afghanistan in July 2011.

The senior official, who discussed the matter only on condition of anonymity because it is under investigation, said Panetta believed it was prudent to launch a Pentagon investigation, although the official would not explain the nature of Allen’s problematic communications.

The official said 20,000 to 30,000 pages of emails and other documents from Allen’s communications with Kelley between 2010 and 2012 are under review. He would not say whether they involved sexual matters or whether they are thought to include unauthorized disclosures of classified information. He said he did not know whether Petraeus is mentioned in the emails.

“Gen. Allen disputes that he has engaged in any wrongdoing in this matter,” the official said. He said Allen currently is in Washington.

Panetta said that while the matter is being investigated by the Defense Department Inspector General, Allen will remain in his post as commander of the International Security Assistance Force, based in Kabul. He praised Allen as having been instrumental in making progress in the war.

The FBI’s decision to refer the Allen matter to the Pentagon rather than keep it itself, combined with Panetta’s decision to allow Allen to continue as Afghanistan commander without a suspension, suggested strongly that officials viewed whatever happened as a possible infraction of military rules rather than a violation of federal criminal law.

Allen was Deputy Commander of Central Command, based in Tampa, prior to taking over in Afghanistan. He also is a veteran of the Iraq war.

In the meantime, Panetta said, Allen’s nomination to be the next commander of U.S. European Command and the commander of NATO forces in Europe has been put on hold “until the relevant facts are determined.” He had been expected to take that new post in early 2013, if confirmed by the Senate, as had been widely expected.

Panetta said President Barack Obama was consulted and agreed that Allen’s nomination should be put on hold. Allen was to testify at his confirmation hearing before the Senate Armed Services Committee on Thursday. Panetta said he asked committee leaders to delay that hearing.

NATO officials had no comment about the delay in Allen’s appointment.

“We have seen Secretary Panetta‘s statement,” NATO spokeswoman Carmen Romero said in Brussels. “It is a U.S. investigation.”

Panetta also said he wants the Senate Armed Services Committee to act promptly on Obama’s nomination of Gen. Joseph Dunford to succeed Allen as commander in Afghanistan. That nomination was made several weeks ago. Dunford’s hearing is also scheduled for Thursday.

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Associated Press writer Slobodan Lekic in Kabul, Afghanistan, contributed to this report.

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Rolling Stones add fifth date to anniversary tour

LONDON (Reuters) – The Rolling Stones have added a fifth date to their 50th anniversary tour later this year, the band announced on its website.

In between two shows at London‘s O2 Arena starting on November 25 and two more at the Prudential Center in Newark, NJ opening on December 13 the veteran quartet will play the Barclays Center in Brooklyn, NY on December 8.

Tickets for the fifth concert go on sale on Monday, November 19. The first four gigs quickly sold out despite complaints from many fans over high ticket prices ranging between around 95 pounds ($ 150) and 950 pounds for a VIP seat in London.

On auction website eBay, a pair of ticket with a face value of 406 pounds is on offer for as much as 1,500 pounds.

“You might say, ‘The tickets are too expensive’,” singer Mick Jagger told Billboard magazine in a recent interview.

“Well, it’s a very expensive show to put on, just to do four shows, because normally you do a hundred shows and you’d have the same expenses.”

He added that he did not agree with the secondary ticket market and stressed that the Rolling Stones did not profit from tickets changing hands at inflated prices.

The concerts celebrating 50 years of the band behind hits like “(I Can’t Get No) Satisfaction” and “Honky Tonk Women” are part of a series of events marking the milestone including a new documentary, a photograph book and a greatest hits album.

The music press has been rife with speculation that the Stones could launch a full world tour next year including a set at the Glastonbury music festival.

(Reporting by Mike Collett-White, editing by Paul Casciato)

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Diabetes cases hit record and half go undiagnosed

LONDON (Reuters) – Diabetes is running at record levels worldwide and half the people estimated to have the disease are, as yet, undiagnosed, according to a report on Wednesday.

The number of people living with diabetes is now put at 371 million, up from 366 million a year ago, with numbers expected to reach 552 million by 2030, the International Diabetes Federation (IDF) said.

Diabetes is often viewed as a western problem, since the vast majority of people have type 2 disease which is linked to obesity and lack of exercise.

But the disease is also spreading rapidly in poorer countries, alongside urbanization, and four out of five diabetics now live in low and middle-income countries, opening up new opportunities and challenges for the drug industry.

China alone has 92.3 million people with diabetes, more than any other nation in the world, and the hidden burden is also enormous in sub-Saharan Africa where limited healthcare means less than a fifth of cases get diagnosed.

The IDF estimates that, globally, 187 million people do not yet know they are suffering from the condition.

Diabetics have inadequate blood sugar control which can lead to serious complications, including nerve and kidney damage and blindness. Worldwide deaths from the disease are running at 4.8 million a year.

The disease is one of a number of chronic conditions – along with cancer, cardiovascular and respiratory diseases – that healthcare campaigners want included in the next set of global development goals, which will replace outgoing Millennium Developments Goals in 2015.

For the international drugmakers, diabetes offers riches, with global sales of diabetes medicines expected to reach $ 48-$ 53 billion by 2016, up from $ 39.2 billion in 2011, according to research firm IMS Health.

CHINA TO AFRICA

Tapping into the potential of increased demand in emerging markets, however, requires a twin-track approach from drug companies which have traditionally focused on pricey new therapies for rich-world markets.

These days, there is a lot more focus on high-volume but lower-margin business in developing economies, many of which are predicted to show high double-digit percentage sales growth for diabetes medicines for years to come.

The shift is already yielding results.

China, for example, is now the second-largest market behind the United States for the world’s biggest maker of insulin – Danish group Novo Nordisk. It is also a major focus for rivals such as Eli Lilly, Merck & Co, and Sanofi.

Poorer countries are more difficult, especially when it comes to insulin, which must be kept cool if it is not to deteriorate. While most patients start on cheap generic diabetes pills, such as metformin, many need insulin as their disease progresses.

Still, Novo Nordisk thinks it has cracked part of the problem in Kenya, where a project using churches and other local groups has reduced the number of middlemen in the supply chain and cut the cost of a month’s supply of insulin to around 500 Kenyan shillings ($ 6).

So far, the project only covers around 1,000 Kenyans but Jesper Hoiland, Novo’s head of international operations, is confident his company’s low-price model will become profitable as it increases in scale. “It will take three to five years to get to breakeven,” he said in an interview.

In the meantime, similar pilot schemes are being tested in rural India and Nigeria.

Other major drugmakers like Sanofi, which has a significant presence in Africa, are also adopting “tiered” or differential pricing to open up developing world markets.

(Editing by Dan Lalor)

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China rails against protectionism at party congress

BEIJING (Reuters) – China‘s top trade and investment officials are railing against what they call a rising tide of global protectionism that blocks its major companies from expanding overseas and further integrating into the global economy.

The officials, speaking on the sidelines of a week-long Communist Party Congress, said protectionism was emerging across the world, not just in the West. It damaged global growth, frayed relations and could see China focus its investments in neighboring Asian nations, the officials said.

“We are against it,” Industry Minister Miao Wei told reporters on Wednesday when asked what he thought about protectionism as he left the Great Hall of the People after the closing session of the congress.

Commerce Minister Chen Deming had set the tone earlier last week, deriding the “Cold War mentality” of Washington lawmakers who urged U.S. firms in a landmark report last month not to do business with two top Chinese telecom equipment makers because of risks to national security.

He was followed by Lou Jiwei, chairman and CEO of China Investment Corporation, who told Reuters a rise in protectionism was forcing a rethink at the country’s $ 482 billion sovereign wealth fund, which would not spend money in countries “that do not welcome us”.

“There are other places to invest,” Lou said.

Asia is a particularly favored option for CIC, thanks to some of the fastest rates of growth and development in the world – which are themselves levered to China’s own economic dynamism.

Li Ruogu, president of the Export-Import Bank of China, which is a main source of loans for Chinese firms investing abroad, complained of “added layers of protectionism” being stacked up against China’s increasingly outward-looking companies.

Comments in between from bosses of some of the biggest state-owned enterprises – all of which have a Communist Party secretary at the top of their management structure – have reinforced views in some quarters that Beijing is becoming increasingly sensitive to protectionism.

Fu Chengyu, chairman of China’s oil giant Sinopec Group, said in London on Tuesday that politics made deals in the West increasingly difficult.

Sinopec’s rival, CNOOC Ltd, is struggling to win regulatory backing from Canada’s government for a $ 15.1 billion bid for Nexen Inc. A decision has been repeatedly delayed even though it has been approved by shareholders.

Even before the congress started, officials from government-run think-tanks that directly feed into policymaking had spoken to Reuters about a perceived rising tide of protectionism and how China might best try to turn it.

RISING RHETORIC

China’s trading partners, in turn, complain that state-backed companies they compete with globally get unfair support from Beijing – either through subsidies, tax breaks, cheap bank loans, or a deliberately undervalued currency.

Since joining the WTO in 2001, China has had 29 complaints of unfair trade practices brought against it. Around two thirds have been launched by the United States and the European Union, with others coming from a mix of developing and developed economies.

Foreign analysts though see recent rising rhetoric driven by political transition in both Washington and Beijing, a rash of troubled cross-border takeovers and the toughest conditions in three years for the country’s export-focused factory sector.

“This is playing to a domestic audience in the sense that a lot of manufacturers, a lot of exporters, aren’t doing too well and they are putting pressure on the Ministry of Commerce to do something,” Alistair Chan, an economist at Moody’s Analytics, told Reuters.

“There isn’t a lot that the government can do to help global demand, but one thing they can do is advocate for less protectionism. In terms of an actual trade war, I think that risk is quite minimal.”

China’s economy depends heavily on trade and investment flows. Exports were worth about 31 percent of GDP in 2011, according to World Bank data, while an estimated 200 million Chinese jobs are in the export sector or supported directly by foreign investment.

China’s rapid rise to become the world’s biggest exporter and its second biggest economy in the space of barely three decades since landmark economic reforms began in the late 1970s have sparked concerns among the developed economies it is eclipsing and the emerging markets which it dwarfs.

The U.S. election campaign was notable for China-bashing. Defeated candidate Mitt Romney had promised to label Beijing a currency manipulator if he won and while President Barack Obama was less confrontational, he cited his credentials as bringing more trade cases against China than his predecessor.

JOBS FEARS

There is a widespread view in the United States that trading with China has caused American firms to slash jobs.

The Economic Policy Institute, a think-tank focused on the needs of low- and middle-income workers, reckons that 2.7 million jobs were lost in the United States between 2001 and 2011 as a result of increased trade with China – 2.1 million of them in manufacturing industry.

Meanwhile research from consultancy Rhodium Group in September analyzed 600 Chinese direct investment transactions in the United States between 2000 and 2012, concluding that U.S. units of Chinese majority-owned firms directly supported 27,000 jobs.

Assuming a steady investment trend, Rhodium reckons that number would jump to 200,000-400,000 by 2020.

Beijing is targeting outbound direct investments of $ 560 billion between 2011 and 2015.

Analysts estimate China could spend $ 2 trillion globally on FDI in the next 10 years, a salivating proposition for many of the world’s top economies struggling for growth and employment opportunities – but a risk for politicians who see government-backed entities on the hunt for strategic assets, investors say.

Andrew Morris, managing director of UK fund firm Signature, reacted to news earlier this month that CIC had taken a 10 percent stake in Heathrow Airport by lambasting the British government for not doing more to preserve “our nation’s prized assets… being hoovered up by ‘foreign powers’.”

(Additional reporting by Beijing Bureau; Editing by Raju Gopalakrishnan)

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