Posts tagged: China

China bans smoking in most indoor places

David Goodhue – AHN News Reporter

China (AHN) – China will ban smoking in most indoor facilities, including hotels, restaurants, theaters, bars and railway stations beginning May 1.

The Ministry of Health law doesn’t specify penalties for people who violate the ban or for businesses that don’t meet the ban’s specifications.

The rule requires business owners to post no smoking signs, it prohibits cigarette vending machines in public places and it requires outdoor smoking areas to be out of the way of pedestrian walkways.

According to the Chinese news service Xinhua, about 300 million Chinese citizens are regular smokers. This leaves about 700 million people exposed to second-hand smoke.

The new rule does not prohibit smokers from lighting up at work.

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China, South Korea keep Japanese food import restrictions

Vittorio Hernandez – AHN News

Tokyo, Japan (AHN) – Beijing and Seoul have kept restrictions on the importation of food from Japan a trilateral trade deal brokered on Sunday

Japanese Trade Minister Banri Kaieda asked its two Asian neighbors to ease the restrictions on food imports from Japan, put in place after the March 11 earthquake, tsunami and subsequent nuclear meltdown at the Fukushima Daiichi nuclear facility.

Chinese Commerce Minister Chen Derning and South Korean Trade Minister Jim Jonh Hoon told Kaieda that their first priority is public safety and their current measures are based on scientific evidence in response to a request from the Japanese minister that the restrictions be based on scientific fact.

Beijing banned all food, agricultural and fishery product imports from the prefectures near Fukushima, while Seoul will require Japan to issue certificates of safety for food products from prefectures affected by the radioactive emissions.

The ministers agreed that the free flow of trade and investment among their countries was vital to sustaining economic growth in the south Asia region. The three economies are seeking to hike trade within the region because of lower demand from the U.S. and Europe, which are still grappling with the aftermath of the recession and the global financial crisis.

The group established a joint study committee made up of government officials, businesses and academics to study the feasibility of a signing a formal trilateral free trade agreement.

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Obama takes his fiscal agenda live to American voters using Facebook

Tejinder Singh – AHN News Correspondent

Washington, D.C., United States (AHN) – Millions of users hooked to the virtual world on Wednesday got a taste of incumbent U.S. President Barack Obama’s upcoming campaign for 2012 presidential elections as he was hosted by Facebook CEO Mark Zuckerberg live on the White House’s Facebook page.

Calling the ongoing economic recovery fragile, President Obama cautioned, “We could slip back into a recession,” in the absence of a serious plan to handle the deficit.

“The Republican budget put forward is fairly radical, but I would not call it courageous,” said Obama.

With Zuckerberg wearing a jacket and tie instead of his customary hoodie, President Obama told his audience at Facebook’s headquarters, “My name is Barack Obama and I’m the first guy to get Mark Zuckerberg to wear a jacket and tie.”

There was a thunderous applause as Obama called for “high-skilled immigrants” to stay, saying, “They are job generators. We don’t want them starting an Intel in China or France. We want them starting companies here.”

“Our education system has to do a better job of math and science education for women, blacks and Hispanics,” he said, adding, “I want people to think of the next big Internet breakthrough as the next moon launch.”

Obama used his oratory skills and tuned his answers for the technology-savvy youngsters asking them not to “get frustrated and cynical about our democracy.”

“If you don’t give the system a push, it’s just not going to change and you’re going to be the ones who suffer the consequences,” Obama warned the young Americans.

Without announcing the events at the Facebook and an earlier one in Virginia, as official campaign calls, Obama stayed focussed on the election subjects of economy and deficit reduction talks. He’s also scheduled to appear Thursday at a town-hall meeting in Reno, Nevada.

Although Democrat Obama and Republican Congress agree on need for significant fiscal reforms, Obama’s deficit reduction plan, is diametrically opposite to proposals floated by congressional Republicans. The former has vowed to keep Medicare and Medicaid alive and healthy while the opposition is striving to dilute these health-care programs.

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Ship traffic April 11, 2011

Due to arrive today SHIP FROM PORT Essen Express Seattle OAK APL Canada Kaohsiung, Taiwan OAK Hanjin Philadelphia Long Beach OAK Brooklyn Bridge Long Beach OAK Due to depart today SHIP TO PORT MSC Candice Xiamen, China…

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U.K. PM Cameron faces criticism for tripling education aid to Pakistan

AHN News Staff

Islamabad, Pakistan (AHN) – British Prime Minister David Cameron, who is on an official visit to Islamabad, has offered $978 million in education aid to Pakistan – a move for which he faced criticism from Conservative MPs at home amid fears that the South Asian nation could waste some of this aid.

Cameron added that Britain would provide an additional $81 billion in aid over the next four years. The aid will help nearly four million Pakistani children to attend school for the first time in their life, while Pakistan becomes the only recipient to receive such generous aid from Britain.

In recent years, Pakistan had spent 15 percent of its annual budget on defense and hardly 2 percent on education. Moreover, Islamabad is already negotiating for six submarines and a fighter aircraft with China at an estimated cost of more than $2 billion.

Talking to reporters after announcing the aid, Cameron said that providing education support to Pakistan was in British interest, as he considered poor schooling and illiteracy the main causes of Islamic terrorism and extremism. However, he admitted that opponents of this aid offer were not wrong to criticize it since Pakistani corruption could prevent some of British aid payments to reach its intended destination.

“The British people want to know every penny we do spend is going to the right places,” Cameron said at a university in Islamabad. “I need to convince them that it is. But my job is made more difficult when people in Britain look at Pakistan, a country that receives millions of pounds of our aid money, and see weakness in terms of government capacity and waste.”

The British leader, hence, urged Pakistani government to tighten its tax rules so that more people pay tax. Although there is no formal extradition treaty between Pakistan and Britain, Cameron, during his one-day visit, assured the South Asian government that London could extradite former President Pervez Musharraf, if Islamabad would pursue his case legally. His comments in the wake of an arrest warrant issued against Musharraf in ex-PM Benazir Bhutto’s assassination case.

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Health Insurers Respond To Reform By Snapping Up Less-Regulated Businesses

United States (KaiserHealth) – Here’s one change few were talking about when the health overhaul law passed: It’s sent insurers – worried the law could stunt profits and growth – looking for new types of business.

Where are they investing? In less-regulated companies that could yield strong profits and make the main business – insurance – more lucrative. The purchases also could increase insurers’ control over more parts of the health system.

Insurers have moved into technology, health-care delivery, physician management, workplace wellness, financial services and overseas ventures in wide-ranging efforts to mitigate the new rules imposed by the law. Since June 2009, seven of the nation’s largest insurers have made 25 major deals, and only six of those acquisitions run health plans, according to an analysis of data collected by FactSet Research Systems, a private company.

At an investors meeting in February, Rick Jelinek, UnitedHealth Group’s top executive for emerging businesses, said the company’s future growth would be in services that are “much less regulated” than insurance plans.

In 2010, UnitedHealth Group bought ChinaGate, which helps bring medical treatments to market in China; Picis, a technology vendor specializing in clinical and financial management systems for hospital emergency departments and intensive care units; the medical screening company Wellness; and six other firms.

In December, Aetna acquired Medicity, a business that helps hospitals share patient information. The federal government will reward hospitals and doctors with more than $30 billion in increased Medicaid and Medicare payments by 2015 for adopting electronic medical records, but only if they can share their data.

Also in December, Humana bought Concentra, a Texas-based urgent- and occupational-care provider with clinics in 40 states. More than one-third of Humana members live within 10 miles of a Concentra clinic, making its services convenient for the insurer’s members. Last year it also bought a health coaching firm that helps employers keep workers healthy, and in February it partnered with a South African company to launch new wellness services in the United States.

Those moves represent only big-ticket buys that require regulatory approval or that companies chose to announce. Insurerscan buy smaller firms or create businesses from scratch without disclosing details.

For instance, OptumHealth, a UnitedHealth subsidiary, has quietly taken control of Memorial Healthcare IPA, a Los Angeles company that manages more than 400 doctors, according to a document filed with the California Secretary of State’s office. OptumHealth declined to discuss details of the deal. A Memorial Healthcare executive, Patty Page LaPenn, said in a statement that relationships with patients and other businesses “will continue as usual.”

The trend shifts

Insurers have been on buying binges before – in the past decade, the seven large firms publicly acquired 137 companies. However- with the exception of UnitedHealth, which has been building its technology arm, Ingenix, since’97 – they focused on acquiringrival health plans and insurance services firms. For instance, 10 of 13 deals Humana struck before 2010 involved health plans.The current trend is largely driven by the health law, said Ana Gupte, an analyst with Sanford C. Bernstein & Co.

The newer ventures will not replace the core business of selling health coverage.

“They’re very synergistic with the health-insurance [product],” Gupte said, giving insurers more tools to control medical costs while potentially increasing earnings.

In the past, buying health plans “was a really good meat-and-potatoes strategy,” said Paul Kusserow, Humana’s chief strategy officer. But the looming threat of new regulations means “that we have to get much more engaged in managing health for our members.”

With its recent acquisitions, Humana is dipping its hand directly into patient care, gaining more control over doctors. That’s what makes acquisitions such as Concentra a “two-for-one deal,” Kusserow said. Concentra will continue to generate “great margins” for the company as a stand-alone business, he said, but also will give Humana a workforce of physician gatekeepers controlling access to costly services.

Doctors’ orders initiate almost all medical spending. If insurers can push physicians to more effectively manage chronic diseases such as diabetes and judiciously prescribe expensive services such as MRIs, they stand to profit.

“The ultimate goal,” Kusserow said, “is going to be to teach these folks at Concentra to deal with risk” by making doctors responsible for the cost and quality of care.

The flurry of acquisitions underscores the pressures facing insurers. Years of rapidly rising prices have made it difficult to raise rates further.

“Companies have to continue to grow, and they can’t keep raising rates at 20 percent a year,” said Eric Coburn, a health-sector investment banker at Shattuck Hammond Partners.

Last year, rates increased 7 percent, on average, for employer-sponsored plans and as much as 20 percent for individuals, according to reports by Hewitt Associates and the Kaiser Family Foundation. (Kaiser Health News is part of the foundation.)

The overhaul’s effect

Now comes the health law. As more people receive insurance under the law, insurers would welcome 15 million new customers, according to the Congressional Budget Office. But the companies worry that the rules requiring most Americans to obtain coverage will prove too weak and allow many to go uncovered, said Robert Zirkelbach, a spokesman for America’s Health Insurance Plans.

That could leave insurers with slim gains, even as they face regulations that could limit profits, prohibit the practice of charging sick people higher rates, and funnel individuals and small businesses into government-created exchanges to buy policies.Under the law, insurers must spend at least 80 percent of the premiums they collect on medical care. The final regulation, known as the medical-loss ratio rule, has turned out to be less painful for insurers than initially anticipated, because it will not count taxes and quality improvement as administrative costs.

Still, the medical-loss rules and meteoric growth in health spending make getting a better grip on costs essential for insurers.

“I’ve seen a big trend in getting further down the supply chain towards the point of care,” said Sarah James, an insurance industry analyst at Los Angeles-based Wedbush Securities. “Everybody’s looking to add on staff physicians and clinics” that can help control medical spending.

Analysts view technology investments as another way to control medical costs. Medicity and other technology investments put Aetna “closer to the actual delivery of care,” said Lonny Reisman, Aetna’s chief medical officer.

“Without practicing medicine,” Reisman said, “we are facilitating the relationship between the doctor and the patient with the technology and services,” such as a wealth of information gathered by Medicity and on-the-spot clinical guidance for doctors using ActiveHealth Management, a company Aetna bought in 2005.

Medicity has also opened a new revenue stream for Aetna, with 800 fee-paying hospital clients. Reisman said demand for those services will only increase as the health law threatens hospitals with large Medicare pay cuts if they cannot track and prove that they are providing quality services.

In a sign of Aetna’s interest in future acquisitions, the company hired Charles Saunders, a physician and recent veteran of the private equity firm Warburg Pincus, in January to oversee “strategic diversification.”

Other insurers are pursuing different strategies. Cigna is looking overseas and plans to begin selling comprehensive health insurance plans to individuals in China in hopes of capitalizing on a burgeoning middle class, Bill Atwell, an executive in charge of international operations, told investors March 11. The operation will roll out by the year’s end, Gloria Barone Rosanio, a spokeswoman, said in an e-mail.

At home, though, the options are limited, in part because of the health law. Some analysts do not see much of a future for companies that just stick with the business of selling insurance policies.”If you’re a health plan, you either become a care delivery system or an information services company,” said David Brailer, a former George W. Bush administration health official who now leads an investment firm. “The traditional business is dead.”

– Provided by Kaiser Health News.

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Top business execs welcome Locke’s nomination as U.S. Ambassador to China

Tejinder Singh – AHN News Correspondent

Washington, DC, United States (AHN) – Top American business leaders on Wednesday welcomed the appointment of Commerce Secretary Gary Locke to be the next U.S. ambassador to China.

Welcoming the decision, Muhtar Kent, chairman and CEO of the Coca-Cola Co. and chair of the U.S.-China Business Council said, “Secretary Locke’s leadership roles in business and government, combined with his recent success in strengthening U.S.-China commercial relations makes him ideally suited to be a strong and effective Ambassador to China.”

Coca-Cola president John Frisbie called Locke “a great choice,” adding, “with his background as secretary of Commerce, he understands that trade and investment ties with China are important to American jobs and economic prosperity.”

Frisbie cited Locke’s speech on the future of U.S.-China commercial relations just before Chinese President Hu Jintao’s visit to Washington in January. “Secretary Locke focused his remarks on the need for a balanced approach to our economic relationship with China,” Frisbie said.

He noted, “American companies are selling more goods and services to China than ever before. At the same time, we have to continue the hard work required to make sure American companies can compete with Chinese companies on a level playing field.”

The comments came after President Barack Obama on Wednesday announced the appointment in the Diplomatic Reception Room at the White House.

Obama said, “More than 100 years ago, Gary’s grandfather left China on a steamship bound for America, where he worked as a domestic servant in Washington state. A century later, his grandson will return to China as America’s top diplomat.”

“When he’s in Beijing, I know that American companies will be able to count on him to represent their interests in front of China’s top leaders,” said Obama.

Locke responded that “My father never imagined that one of his children could ever serve as the Secretary of Commerce in the United States of America. And he was beaming with pride, Mr. President, the day you presided over my swearing-in ceremony.”

Noting sadly that his dad passed away this past January, Locke said, “I’m going back to the birthplace of my grandfather, my father, my mom and her side of the family, and I’ll be doing so as a devoted and passionate advocate for America, the country where I was born and raised.”

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British supermarket giant eyes India expansion

Vittorio Hernandez – AHN News

London, England, United Kingdom (AHN) – Britain’s largest supermarket Tesco is the likely beneficiary of a planned lifting of restriction on foreign investments by the Indian government.

Indian Corporate Affairs Minister Jyotiraditya Scindia on Thursday supported the lifting of a restriction on foreign investments for certain sectors, such as retail. He suggested the end of the ban following a 35 percent drop in foreign direct investment in 2010.

The minister’s statement was made a week after British Business Secretary Vince Cable visited India and lobbied Indian Commerce Minister Anand Sharma to ease rules on foreign direct investments in several sectors such as higher education, defense, financial services and retail.

The push is timely because Tesco is eyeing expansion into India. The British grocer has formed an alliance with Tata Group, one of India’s largest conglomerates, to help open a new hypermarket chain, warehousing and supply system.

New Delhi is open to foreign investments to establish new cold chain logistics systems and warehousing facilities to prevent the loss of up to 40 percent of its food produce that ends up rotten before it reaches the market. Over 17 million tons of food grain worth $3 billion (GBP 2 billion) were spoiled in 2010 due to lack of storage facilities.

Outgoing Tesco Chief Executive Sir Terry Leahy, who is attending the World Economic Forum in Davos, said he favored the creation of new supply chains that are sustainable to address needed changes in models of mass consumption, particularly for large consumer markets such as India and China.

Leahy disclosed that after he retires from Tesco, he will be involved in private investment in the U.K. and Asia, which he conceded is a vital market for the British retailer.

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Text of the State of the Union Address Tuesday, January 25, 2011

Washington, DC, United States (AHN) – Remarks of President Barack Obama – As Prepared for Delivery

State of the Union Address. Tuesday, January 25, 2011

As Prepared for Delivery—

Mr. Speaker, Mr. Vice President, Members of Congress, distinguished guests, and fellow Americans:

Tonight I want to begin by congratulating the men and women of the 112th Congress, as well as your new Speaker, John Boehner. And as we mark this occasion, we are also mindful of the empty chair in this Chamber, and pray for the health of our colleague – and our friend – Gabby Giffords.

It’s no secret that those of us here tonight have had our differences over the last two years. The debates have been contentious; we have fought fiercely for our beliefs. And that’s a good thing. That’s what a robust democracy demands. That’s what helps set us apart as a nation.

But there’s a reason the tragedy in Tucson gave us pause. Amid all the noise and passions and rancor of our public debate, Tucson reminded us that no matter who we are or where we come from, each of us is a part of something greater – something more consequential than party or political preference.

We are part of the American family. We believe that in a country where every race and faith and point of view can be found, we are still bound together as one people; that we share common hopes and a common creed; that the dreams of a little girl in Tucson are not so different than those of our own children, and that they all deserve the chance to be fulfilled.

That, too, is what sets us apart as a nation.

Now, by itself, this simple recognition won’t usher in a new era of cooperation. What comes of this moment is up to us. What comes of this moment will be determined not by whether we can sit together tonight, but whether we can work together tomorrow.

I believe we can. I believe we must. That’s what the people who sent us here expect of us. With their votes, they’ve determined that governing will now be a shared responsibility between parties. New laws will only pass with support from Democrats and Republicans. We will move forward together, or not at all – for the challenges we face are bigger than party, and bigger than politics.

At stake right now is not who wins the next election – after all, we just had an election. At stake is whether new jobs and industries take root in this country, or somewhere else. It’s whether the hard work and industry of our people is rewarded. It’s whether we sustain the leadership that has made America not just a place on a map, but a light to the world.

We are poised for progress. Two years after the worst recession most of us have ever known, the stock market has come roaring back. Corporate profits are up. The economy is growing again.

But we have never measured progress by these yardsticks alone. We measure progress by the success of our people. By the jobs they can find and the quality of life those jobs offer. By the prospects of a small business owner who dreams of turning a good idea into a thriving enterprise. By the opportunities for a better life that we pass on to our children.

That’s the project the American people want us to work on. Together.

We did that in December. Thanks to the tax cuts we passed, Americans’ paychecks are a little bigger today. Every business can write off the full cost of the new investments they make this year. These steps, taken by Democrats and Republicans, will grow the economy and add to the more than one million private sector jobs created last year.

But we have more work to do. The steps we’ve taken over the last two years may have broken the back of this recession – but to win the future, we’ll need to take on challenges that have been decades in the making.

Many people watching tonight can probably remember a time when finding a good job meant showing up at a nearby factory or a business downtown. You didn’t always need a degree, and your competition was pretty much limited to your neighbors. If you worked hard, chances are you’d have a job for life, with a decent paycheck, good benefits, and the occasional promotion. Maybe you’d even have the pride of seeing your kids work at the same company.

That world has changed. And for many, the change has been painful. I’ve seen it in the shuttered windows of once booming factories, and the vacant storefronts of once busy Main Streets. I’ve heard it in the frustrations of Americans who’ve seen their paychecks dwindle or their jobs disappear – proud men and women who feel like the rules have been changed in the middle of the game.

They’re right. The rules have changed. In a single generation, revolutions in technology have transformed the way we live, work and do business. Steel mills that once needed 1,000 workers can now do the same work with 100. Today, just about any company can set up shop, hire workers, and sell their products wherever there’s an internet connection.

Meanwhile, nations like China and India realized that with some changes of their own, they could compete in this new world. And so they started educating their children earlier and longer, with greater emphasis on math and science. They’re investing in research and new technologies. Just recently, China became home to the world’s largest private solar research facility, and the world’s fastest computer.

So yes, the world has changed. The competition for jobs is real. But this shouldn’t discourage us. It should challenge us. Remember – for all the hits we’ve taken these last few years, for all the naysayers predicting our decline, America still has the largest, most prosperous economy in the world. No workers are more productive than ours. No country has more successful companies, or grants more patents to inventors and entrepreneurs. We are home to the world’s best colleges and universities, where more students come to study than any other place on Earth.

What’s more, we are the first nation to be founded for the sake of an idea – the idea that each of us deserves the chance to shape our own destiny. That is why centuries of pioneers and immigrants have risked everything to come here. It’s why our students don’t just memorize equations, but answer questions like “What do you think of that idea? What would you change about the world? What do you want to be when you grow up?”

The future is ours to win. But to get there, we can’t just stand still. As Robert Kennedy told us, “The future is not a gift. It is an achievement.” Sustaining the American Dream has never been about standing pat. It has required each generation to sacrifice, and struggle, and meet the demands of a new age.

Now it’s our turn. We know what it takes to compete for the jobs and industries of our time. We need to out-innovate, out-educate, and out-build the rest of the world. We have to make America the best place on Earth to do business. We need to take responsibility for our deficit, and reform our government. That’s how our people will prosper. That’s how we’ll win the future. And tonight, I’d like to talk about how we get there.

The first step in winning the future is encouraging American innovation.

None of us can predict with certainty what the next big industry will be, or where the new jobs will come from. Thirty years ago, we couldn’t know that something called the Internet would lead to an economic revolution. What we can do – what America does better than anyone – is spark the creativity and imagination of our people. We are the nation that put cars in driveways and computers in offices; the nation of Edison and the Wright brothers; of Google and Facebook. In America, innovation doesn’t just change our lives. It’s how we make a living.

Our free enterprise system is what drives innovation. But because it’s not always profitable for companies to invest in basic research, throughout history our government has provided cutting-edge scientists and inventors with the support that they need. That’s what planted the seeds for the Internet. That’s what helped make possible things like computer chips and GPS.

Just think of all the good jobs – from manufacturing to retail – that have come from those breakthroughs.

Half a century ago, when the Soviets beat us into space with the launch of a satellite called Sputnik¸ we had no idea how we’d beat them to the moon. The science wasn’t there yet. NASA didn’t even exist. But after investing in better research and education, we didn’t just surpass the Soviets; we unleashed a wave of innovation that created new industries and millions of new jobs.

This is our generation’s Sputnik moment. Two years ago, I said that we needed to reach a level of research and development we haven’t seen since the height of the Space Race. In a few weeks, I will be sending a budget to Congress that helps us meet that goal. We’ll invest in biomedical research, information technology, and especially clean energy technology – an investment that will strengthen our security, protect our planet, and create countless new jobs for our people.

Already, we are seeing the promise of renewable energy. Robert and Gary Allen are brothers who run a small Michigan roofing company. After September 11th, they volunteered their best roofers to help repair the Pentagon. But half of their factory went unused, and the recession hit them hard.

Today, with the help of a government loan, that empty space is being used to manufacture solar shingles that are being sold all across the country. In Robert’s words, “We reinvented ourselves.”

That’s what Americans have done for over two hundred years: reinvented ourselves. And to spur on more success stories like the Allen Brothers, we’ve begun to reinvent our energy policy. We’re not just handing out money. We’re issuing a challenge. We’re telling America’s scientists and engineers that if they assemble teams of the best minds in their fields, and focus on the hardest problems in clean energy, we’ll fund the Apollo Projects of our time.

At the California Institute of Technology, they’re developing a way to turn sunlight and water into fuel for our cars. At Oak Ridge National Laboratory, they’re using supercomputers to get a lot more power out of our nuclear facilities. With more research and incentives, we can break our dependence on oil with biofuels, and become the first country to have 1 million electric vehicles on the road by 2015.

We need to get behind this innovation. And to help pay for it, I’m asking Congress to eliminate the billions in taxpayer dollars we currently give to oil companies. I don’t know if you’ve noticed, but they’re doing just fine on their own. So instead of subsidizing yesterday’s energy, let’s invest in tomorrow’s.

Now, clean energy breakthroughs will only translate into clean energy jobs if businesses know there will be a market for what they’re selling. So tonight, I challenge you to join me in setting a new goal: by 2035, 80% of America’s electricity will come from clean energy sources. Some folks want wind and solar. Others want nuclear, clean coal, and natural gas. To meet this goal, we will need them all – and I urge Democrats and Republicans to work together to make it happen.

Maintaining our leadership in research and technology is crucial to America’s success. But if we want to win the future – if we want innovation to produce jobs in America and not overseas – then we also have to win the race to educate our kids.

Think about it. Over the next ten years, nearly half of all new jobs will require education that goes beyond a high school degree. And yet, as many as a quarter of our students aren’t even finishing high school. The quality of our math and science education lags behind many other nations. America has fallen to 9th in the proportion of young people with a college degree. And so the question is whether all of us – as citizens, and as parents – are willing to do what’s necessary to give every child a chance to succeed.

That responsibility begins not in our classrooms, but in our homes and communities. It’s family that first instills the love of learning in a child. Only parents can make sure the TV is turned off and homework gets done. We need to teach our kids that it’s not just the winner of the Super Bowl who deserves to be celebrated, but the winner of the science fair; that success is not a function of fame or PR, but of hard work and discipline.

Our schools share this responsibility. When a child walks into a classroom, it should be a place of high expectations and high performance. But too many schools don’t meet this test. That’s why instead of just pouring money into a system that’s not working, we launched a competition called Race to the Top. To all fifty states, we said, “If you show us the most innovative plans to improve teacher quality and student achievement, we’ll show you the money.”

Race to the Top is the most meaningful reform of our public schools in a generation. For less than one percent of what we spend on education each year, it has led over 40 states to raise their standards for teaching and learning. These standards were developed, not by Washington, but by Republican and Democratic governors throughout the country. And Race to the Top should be the approach we follow this year as we replace No Child Left Behind with a law that is more flexible and focused on what’s best for our kids.

You see, we know what’s possible for our children when reform isn’t just a top-down mandate, but the work of local teachers and principals; school boards and communities.

Take a school like Bruce Randolph in Denver. Three years ago, it was rated one of the worst schools in Colorado; located on turf between two rival gangs. But last May, 97% of the seniors received their diploma. Most will be the first in their family to go to college. And after the first year of the school’s transformation, the principal who made it possible wiped away tears when a student said “Thank you, Mrs. Waters, for showing… that we are smart and we can make it.”

Let’s also remember that after parents, the biggest impact on a child’s success comes from the man or woman at the front of the classroom. In South Korea, teachers are known as “nation builders.” Here in America, it’s time we treated the people who educate our children with the same level of respect. We want to reward good teachers and stop making excuses for bad ones. And over the next ten years, with so many Baby Boomers retiring from our classrooms, we want to prepare 100,000 new teachers in the fields of science, technology, engineering, and math.

In fact, to every young person listening tonight who’s contemplating their career choice: If you want to make a difference in the life of our nation; if you want to make a difference in the life of a child – become a teacher. Your country needs you.

Of course, the education race doesn’t end with a high school diploma. To compete, higher education must be within reach of every American. That’s why we’ve ended the unwarranted taxpayer subsidies that went to banks, and used the savings to make college affordable for millions of students. And this year, I ask Congress to go further, and make permanent our tuition tax credit – worth $10,000 for four years of college.

Because people need to be able to train for new jobs and careers in today’s fast-changing economy, we are also revitalizing America’s community colleges. Last month, I saw the promise of these schools at Forsyth Tech in North Carolina. Many of the students there used to work in the surrounding factories that have since left town. One mother of two, a woman named Kathy Proctor, had worked in the furniture industry since she was 18 years old. And she told me she’s earning her degree in biotechnology now, at 55 years old, not just because the furniture jobs are gone, but because she wants to inspire her children to pursue their dreams too. As Kathy said, “I hope it tells them to never give up.”

If we take these steps – if we raise expectations for every child, and give them the best possible chance at an education, from the day they’re born until the last job they take – we will reach the goal I set two years ago: by the end of the decade, America will once again have the highest proportion of college graduates in the world.

One last point about education. Today, there are hundreds of thousands of students excelling in our schools who are not American citizens. Some are the children of undocumented workers, who had nothing to do with the actions of their parents. They grew up as Americans and pledge allegiance to our flag, and yet live every day with the threat of deportation. Others come here from abroad to study in our colleges and universities. But as soon as they obtain advanced degrees, we send them back home to compete against us. It makes no sense.

Now, I strongly believe that we should take on, once and for all, the issue of illegal immigration. I am prepared to work with Republicans and Democrats to protect our borders, enforce our laws and address the millions of undocumented workers who are now living in the shadows. I know that debate will be difficult and take time. But tonight, let’s agree to make that effort. And let’s stop expelling talented, responsible young people who can staff our research labs, start new businesses, and further enrich this nation.

The third step in winning the future is rebuilding America. To attract new businesses to our shores, we need the fastest, most reliable ways to move people, goods, and information – from high-speed rail to high-speed internet.

Our infrastructure used to be the best – but our lead has slipped. South Korean homes now have greater internet access than we do. Countries in Europe and Russia invest more in their roads and railways than we do. China is building faster trains and newer airports. Meanwhile, when our own engineers graded our nation’s infrastructure, they gave us a “D.”

We have to do better. America is the nation that built the transcontinental railroad, brought electricity to rural communities, and constructed the interstate highway system. The jobs created by these projects didn’t just come from laying down tracks or pavement. They came from businesses that opened near a town’s new train station or the new off-ramp.

Over the last two years, we have begun rebuilding for the 21st century, a project that has meant thousands of good jobs for the hard-hit construction industry. Tonight, I’m proposing that we redouble these efforts.

We will put more Americans to work repairing crumbling roads and bridges. We will make sure this is fully paid for, attract private investment, and pick projects based on what’s best for the economy, not politicians.

Within 25 years, our goal is to give 80% of Americans access to high-speed rail, which could allow you go places in half the time it takes to travel by car. For some trips, it will be faster than flying – without the pat-down. As we speak, routes in California and the Midwest are already underway.

Within the next five years, we will make it possible for business to deploy the next generation of high-speed wireless coverage to 98% of all Americans. This isn’t just about a faster internet and fewer dropped calls. It’s about connecting every part of America to the digital age. It’s about a rural community in Iowa or Alabama where farmers and small business owners will be able to sell their products all over the world. It’s about a firefighter who can download the design of a burning building onto a handheld device; a student who can take classes with a digital textbook; or a patient who can have face-to-face video chats with her doctor.

All these investments – in innovation, education, and infrastructure – will make America a better place to do business and create jobs. But to help our companies compete, we also have to knock down barriers that stand in the way of their success.

Over the years, a parade of lobbyists has rigged the tax code to benefit particular companies and industries. Those with accountants or lawyers to work the system can end up paying no taxes at all. But all the rest are hit with one of the highest corporate tax rates in the world. It makes no sense, and it has to change.

So tonight, I’m asking Democrats and Republicans to simplify the system. Get rid of the loopholes. Level the playing field. And use the savings to lower the corporate tax rate for the first time in 25 years – without adding to our deficit.

To help businesses sell more products abroad, we set a goal of doubling our exports by 2014 – because the more we export, the more jobs we create at home. Already, our exports are up. Recently, we signed agreements with India and China that will support more than 250,000 jobs in the United States. And last month, we finalized a trade agreement with South Korea that will support at least 70,000 American jobs. This agreement has unprecedented support from business and labor; Democrats and Republicans, and I ask this Congress to pass it as soon as possible.

Before I took office, I made it clear that we would enforce our trade agreements, and that I would only sign deals that keep faith with American workers, and promote American jobs. That’s what we did with Korea, and that’s what I intend to do as we pursue agreements with Panama and Colombia, and continue our Asia Pacific and global trade talks.

To reduce barriers to growth and investment, I’ve ordered a review of government regulations. When we find rules that put an unnecessary burden on businesses, we will fix them. But I will not hesitate to create or enforce commonsense safeguards to protect the American people. That’s what we’ve done in this country for more than a century. It’s why our food is safe to eat, our water is safe to drink, and our air is safe to breathe. It’s why we have speed limits and child labor laws. It’s why last year, we put in place consumer protections against hidden fees and penalties by credit card companies, and new rules to prevent another financial crisis. And it’s why we passed reform that finally prevents the health insurance industry from exploiting patients.

Now, I’ve heard rumors that a few of you have some concerns about the new health care law. So let me be the first to say that anything can be improved. If you have ideas about how to improve this law by making care better or more affordable, I am eager to work with you. We can start right now by correcting a flaw in the legislation that has placed an unnecessary bookkeeping burden on small businesses.

What I’m not willing to do is go back to the days when insurance companies could deny someone coverage because of a pre-existing condition. I’m not willing to tell James Howard, a brain cancer patient from Texas, that his treatment might not be covered. I’m not willing to tell Jim Houser, a small business owner from Oregon, that he has to go back to paying $5,000 more to cover his employees. As we speak, this law is making prescription drugs cheaper for seniors and giving uninsured students a chance to stay on their parents’ coverage. So instead of re-fighting the battles of the last two years, let’s fix what needs fixing and move forward.

Now, the final step – a critical step – in winning the future is to make sure we aren’t buried under a mountain of debt.

We are living with a legacy of deficit-spending that began almost a decade ago. And in the wake of the financial crisis, some of that was necessary to keep credit flowing, save jobs, and put money in people’s pockets.

But now that the worst of the recession is over, we have to confront the fact that our government spends more than it takes in. That is not sustainable. Every day, families sacrifice to live within their means. They deserve a government that does the same.

So tonight, I am proposing that starting this year, we freeze annual domestic spending for the next five years. This would reduce the deficit by more than $400 billion over the next decade, and will bring discretionary spending to the lowest share of our economy since Dwight Eisenhower was president.

This freeze will require painful cuts. Already, we have frozen the salaries of hardworking federal employees for the next two years. I’ve proposed cuts to things I care deeply about, like community action programs. The Secretary of Defense has also agreed to cut tens of billions of dollars in spending that he and his generals believe our military can do without.

I recognize that some in this Chamber have already proposed deeper cuts, and I’m willing to eliminate whatever we can honestly afford to do without. But let’s make sure that we’re not doing it on the backs of our most vulnerable citizens. And let’s make sure what we’re cutting is really excess weight. Cutting the deficit by gutting our investments in innovation and education is like lightening an overloaded airplane by removing its engine. It may feel like you’re flying high at first, but it won’t take long before you’ll feel the impact.

Now, most of the cuts and savings I’ve proposed only address annual domestic spending, which represents a little more than 12% of our budget. To make further progress, we have to stop pretending that cutting this kind of spending alone will be enough. It won’t.

The bipartisan Fiscal Commission I created last year made this crystal clear. I don’t agree with all their proposals, but they made important progress. And their conclusion is that the only way to tackle our deficit is to cut excessive spending wherever we find it – in domestic spending, defense spending, health care spending, and spending through tax breaks and loopholes.

This means further reducing health care costs, including programs like Medicare and Medicaid, which are the single biggest contributor to our long-term deficit. Health insurance reform will slow these rising costs, which is part of why nonpartisan economists have said that repealing the health care law would add a quarter of a trillion dollars to our deficit. Still, I’m willing to look at other ideas to bring down costs, including one that Republicans suggested last year: medical malpractice reform to rein in frivolous lawsuits.

To put us on solid ground, we should also find a bipartisan solution to strengthen Social Security for future generations. And we must do it without putting at risk current retirees, the most vulnerable, or people with disabilities; without slashing benefits for future generations; and without subjecting Americans’ guaranteed retirement income to the whims of the stock market.

And if we truly care about our deficit, we simply cannot afford a permanent extension of the tax cuts for the wealthiest 2% of Americans. Before we take money away from our schools, or scholarships away from our students, we should ask millionaires to give up their tax break.

It’s not a matter of punishing their success. It’s about promoting America’s success.

In fact, the best thing we could do on taxes for all Americans is to simplify the individual tax code. This will be a tough job, but members of both parties have expressed interest in doing this, and I am prepared to join them.

So now is the time to act. Now is the time for both sides and both houses of Congress – Democrats and Republicans – to forge a principled compromise that gets the job done. If we make the hard choices now to rein in our deficits, we can make the investments we need to win the future.

Let me take this one step further. We shouldn’t just give our people a government that’s more affordable. We should give them a government that’s more competent and efficient. We cannot win the future with a government of the past.

We live and do business in the information age, but the last major reorganization of the government happened in the age of black and white TV. There are twelve different agencies that deal with exports. There are at least five different entities that deal with housing policy. Then there’s my favorite example: the Interior Department is in charge of salmon while they’re in fresh water, but the Commerce Department handles them in when they’re in saltwater. And I hear it gets even more complicated once they’re smoked.

Now, we have made great strides over the last two years in using technology and getting rid of waste. Veterans can now download their electronic medical records with a click of the mouse. We’re selling acres of federal office space that hasn’t been used in years, and we will cut through red tape to get rid of more. But we need to think bigger. In the coming months, my administration will develop a proposal to merge, consolidate, and reorganize the federal government in a way that best serves the goal of a more competitive America. I will submit that proposal to Congress for a vote – and we will push to get it passed.

In the coming year, we will also work to rebuild people’s faith in the institution of government. Because you deserve to know exactly how and where your tax dollars are being spent, you will be able to go to a website and get that information for the very first time in history. Because you deserve to know when your elected officials are meeting with lobbyists, I ask Congress to do what the White House has already done: put that information online. And because the American people deserve to know that special interests aren’t larding up legislation with pet projects, both parties in Congress should know this: if a bill comes to my desk with earmarks inside, I will veto it.

A 21st century government that’s open and competent. A government that lives within its means. An economy that’s driven by new skills and ideas. Our success in this new and changing world will require reform, responsibility, and innovation. It will also require us to approach that world with a new level of engagement in our foreign affairs.

Just as jobs and businesses can now race across borders, so can new threats and new challenges. No single wall separates East and West; no one rival superpower is aligned against us.

And so we must defeat determined enemies wherever they are, and build coalitions that cut across lines of region and race and religion. America’s moral example must always shine for all who yearn for freedom, justice, and dignity. And because we have begun this work, tonight we can say that American leadership has been renewed and America’s standing has been restored.

Look to Iraq, where nearly 100,000 of our brave men and women have left with their heads held high; where American combat patrols have ended; violence has come down; and a new government has been formed. This year, our civilians will forge a lasting partnership with the Iraqi people, while we finish the job of bringing our troops out of Iraq. America’s commitment has been kept; the Iraq War is coming to an end.

Of course, as we speak, al Qaeda and their affiliates continue to plan attacks against us. Thanks to our intelligence and law enforcement professionals, we are disrupting plots and securing our cities and skies. And as extremists try to inspire acts of violence within our borders, we are responding with the strength of our communities, with respect for the rule of law, and with the conviction that American Muslims are a part of our American family.

We have also taken the fight to al Qaeda and their allies abroad. In Afghanistan, our troops have taken Taliban strongholds and trained Afghan Security Forces. Our purpose is clear – by preventing the Taliban from reestablishing a stranglehold over the Afghan people, we will deny al Qaeda the safe-haven that served as a launching pad for 9/11.

Thanks to our heroic troops and civilians, fewer Afghans are under the control of the insurgency. There will be tough fighting ahead, and the Afghan government will need to deliver better governance. But we are strengthening the capacity of the Afghan people and building an enduring partnership with them. This year, we will work with nearly 50 countries to begin a transition to an Afghan lead. And this July, we will begin to bring our troops home.

In Pakistan, al Qaeda’s leadership is under more pressure than at any point since 2001. Their leaders and operatives are being removed from the battlefield. Their safe-havens are shrinking. And we have sent a message from the Afghan border to the Arabian Peninsula to all parts of the globe: we will not relent, we will not waver, and we will defeat you.

American leadership can also be seen in the effort to secure the worst weapons of war. Because Republicans and Democrats approved the New START Treaty, far fewer nuclear weapons and launchers will be deployed. Because we rallied the world, nuclear materials are being locked down on every continent so they never fall into the hands of terrorists.

Because of a diplomatic effort to insist that Iran meet its obligations, the Iranian government now faces tougher and tighter sanctions than ever before. And on the Korean peninsula, we stand with our ally South Korea, and insist that North Korea keeps its commitment to abandon nuclear weapons.

This is just a part of how we are shaping a world that favors peace and prosperity. With our European allies, we revitalized NATO, and increased our cooperation on everything from counter-terrorism to missile defense. We have reset our relationship with Russia, strengthened Asian alliances, and built new partnerships with nations like India. This March, I will travel to Brazil, Chile, and El Salvador to forge new alliances for progress in the Americas. Around the globe, we are standing with those who take responsibility – helping farmers grow more food; supporting doctors who care for the sick; and combating the corruption that can rot a society and rob people of opportunity.

Recent events have shown us that what sets us apart must not just be our power – it must be the purpose behind it. In South Sudan – with our assistance – the people were finally able to vote for independence after years of war. Thousands lined up before dawn. People danced in the streets. One man who lost four of his brothers at war summed up the scene around him: “This was a battlefield for most of my life. Now we want to be free.”

We saw that same desire to be free in Tunisia, where the will of the people proved more powerful than the writ of a dictator. And tonight, let us be clear: the United States of America stands with the people of Tunisia, and supports the democratic aspirations of all people.

We must never forget that the things we’ve struggled for, and fought for, live in the hearts of people everywhere. And we must always remember that the Americans who have borne the greatest burden in this struggle are the men and women who serve our country.

Tonight, let us speak with one voice in reaffirming that our nation is united in support of our troops and their families. Let us serve them as well as they have served us – by giving them the equipment they need; by providing them with the care and benefits they have earned; and by enlisting our veterans in the great task of building our own nation.

Our troops come from every corner of this country – they are black, white, Latino, Asian and Native American. They are Christian and Hindu, Jewish and Muslim. And, yes, we know that some of them are gay. Starting this year, no American will be forbidden from serving the country they love because of who they love. And with that change, I call on all of our college campuses to open their doors to our military recruiters and the ROTC. It is time to leave behind the divisive battles of the past. It is time to move forward as one nation.

We should have no illusions about the work ahead of us. Reforming our schools; changing the way we use energy; reducing our deficit – none of this is easy. All of it will take time. And it will be harder because we will argue about everything. The cost. The details. The letter of every law.

Of course, some countries don’t have this problem. If the central government wants a railroad, they get a railroad – no matter how many homes are bulldozed. If they don’t want a bad story in the newspaper, it doesn’t get written.

And yet, as contentious and frustrating and messy as our democracy can sometimes be, I know there isn’t a person here who would trade places with any other nation on Earth.

We may have differences in policy, but we all believe in the rights enshrined in our Constitution. We may have different opinions, but we believe in the same promise that says this is a place where you can make it if you try. We may have different backgrounds, but we believe in the same dream that says this is a country where anything’s possible. No matter who you are. No matter where you come from.

That dream is why I can stand here before you tonight. That dream is why a working class kid from Scranton can stand behind me. That dream is why someone who began by sweeping the floors of his father’s Cincinnati bar can preside as Speaker of the House in the greatest nation on Earth.

That dream – that American Dream – is what drove the Allen Brothers to reinvent their roofing company for a new era. It’s what drove those students at Forsyth Tech to learn a new skill and work towards the future. And that dream is the story of a small business owner named Brandon Fisher.

Brandon started a company in Berlin, Pennsylvania that specializes in a new kind of drilling technology. One day last summer, he saw the news that halfway across the world, 33 men were trapped in a Chilean mine, and no one knew how to save them.

But Brandon thought his company could help. And so he designed a rescue that would come to be known as Plan B. His employees worked around the clock to manufacture the necessary drilling equipment. And Brandon left for Chile.

Along with others, he began drilling a 2,000 foot hole into the ground, working three or four days at a time with no sleep. Thirty-seven days later, Plan B succeeded, and the miners were rescued. But because he didn’t want all of the attention, Brandon wasn’t there when the miners emerged. He had already gone home, back to work on his next project.

Later, one of his employees said of the rescue, “We proved that Center Rock is a little company, but we do big things.”

We do big things.

From the earliest days of our founding, America has been the story of ordinary people who dare to dream. That’s how we win the future.

We are a nation that says, “I might not have a lot of money, but I have this great idea for a new company. I might not come from a family of college graduates, but I will be the first to get my degree. I might not know those people in trouble, but I think I can help them, and I need to try. I’m not sure how we’ll reach that better place beyond the horizon, but I know we’ll get there. I know we will.”

We do big things.

The idea of America endures. Our destiny remains our choice. And tonight, more than two centuries later, it is because of our people that our future is hopeful, our journey goes forward, and the state of our union is strong.

Thank you, God Bless You, and may God Bless the United States of America.

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