Posts tagged ‘China’

27/08/2015

Why India Stands to Benefit From China Slowdown and Global Reaction – India Real Time – WSJ

India’s economy has been insulated from the turmoil in emerging markets by a long-standing handicap: It isn’t an export powerhouse. For years, growth in India has been fueled more by domestic demand—not, as in China, by manufacturing goods for sale abroad. Now India’s resilient consumer spending is an advantage as demand decelerates almost everywhere else. It is luring companies to produce in India and, the government hopes, can help spark a belated industrial revolution in the country of 1.2 billion.

Jayant Sinha, India’s minister of state for finance, said this week the Chinese slowdown and its world-wide fallout could provide a chance for India to “take the baton of global growth.” Mumbai’s benchmark stock index ended Wednesday down 1.2%, having slid 8.5% in total since the People’s Bank of China moved to devalue the yuan on Aug. 11. The rupee has lost 3.4% since then. India hasn’t been rattled as badly as Brazil, Russia or South Africa. Its international reserves are ample, and it isn’t highly dependent on foreign capital to fund imports.

Source: Why India Stands to Benefit From China Slowdown and Global Reaction – India Real Time – WSJ

26/08/2015

The World Struggles to Adjust to China’s ‘New Normal’ – China Real Time Report – WSJ

China’s leaders have warned their people they need to accommodate a “new normal” of economic growth far slower than the rate that propelled the economy into the world’s second-largest in the past two decades. As WSJ’s James T. Areddy and Lingling Wei report:

Now, the rest of the world also needs to get used to the new normal: a China in the midst of a tectonic shift in its giant economy that is rattling markets world-wide.

The slowdown deepening this year is part of a bumpy transition away from an era when smokestack industries, huge exports and massive infrastructure spending—underpinned by trillions in state-backed debt—powered China’s seemingly unstoppable rise. Today, debt has swelled to more than twice the size of the economy, and some of those industries, such as construction and steel, are reeling.

Instead of them, China is pushing services, consumer spending and private entrepreneurship as new drivers of growth that rely less on debt and more on the stock market for funding.

via The World Struggles to Adjust to China’s ‘New Normal’ – China Real Time Report – WSJ.

21/08/2015

China’s love for Chariot’s Of Fire hero Eric Liddell

A clutch of elderly Chinese pensioners, three Canadian women in their 70s and 80s and a British film star gathered in the courtyard of a school in the obscure industrial town of Weifang on Monday to witness the unveiling of a statue of a running man.

Statue of Scottish Olympic running hero Eric Liddel

The athlete immortalised in bronze in China is Eric Liddell, the legendary Olympian whose achievements were marked in the 1981 fi lm Chariots Of Fire.

The Canadians were there because Liddell was their father and the presence of the actor, Joseph Fiennes, was because he plays the Scottish sprinter in The Last Race, a new movie about his life to be released in March.

But why would the Chinese authorities be interested in venerating such a man? The truth is that Liddell is as much Chinese as he is Scottish.

Born in Tianjin in 1902 he went on to spend more than half his life in the country as an evangelical Christian missionary. And so while he is known as the Flying Scotsman in the UK in China he is remembered as the country’s first Olympic champion.

It is rare indeed that a person has the good fortune to meet a saint but he came as close to it as anyone I have ever known

Eight years before Beijing sent its first team to the Olympics, Liddell won a memorable gold medal in the 400m as part of the British team in the Paris Games of 1924. His victory was all the more poignant because he had been forced to pull out of his best event the 100m as soon as the timetable for the Games was announced.

Liddell, the son of Scottish missionaries, was such a devout Christian that he would not countenance breaking the Sabbath to take part in heats held on a Sunday. Aware this meant he wouldn’t be able to participate in the qualifying rounds for the sprint Liddell devoted all his energy to training for the 400m.

As he took to the starting blocks for the final a masseur with the American Olympic team is said to have slipped a piece of paper into his hand with the Book Of Samuel quotation: “Those who honour me I will honour.”

The fates were certainly on Liddell’s side that day.

He not only won but broke the existing Olympic and world records with a time of 47.6 seconds.

His sporting success did not divert him from his chosen course however and within a year he travelled to China to take up a posting as a missionary teacher in Tianjin’s Anglo-Chinese College, a school popular with the local elite.

The missionaries believed that by teaching Christian values to the children of the wealthy they might promote them later when they reached positions of influence.

Liddell also got involved in the sporting curriculum and even advised on the construction of Tianjin’s Minyuan Stadium.

He proposed an exact copy of the then football ground of Chelsea FC, said to have been his favourite running venue in the UK. He met and married a Canadian woman called Florence, also a child of missionaries, and they had daughters Patricia and Heather.

When Florence was pregnant with their third, war broke out and, with the Imperial Japanese Army sweeping through China, Liddell insisted she and the girls leave for Canada .

Typically Liddell refused to leave his beloved China in its hour of need and was interned and placed in a camp in Weifang, where he dedicated himself to the welfare of fellow inmates.

One of these, Langdon Gilkey, a 19-year-old American who went on to became a prominent theologian, said of Liddell: “Often I would see him bent over a chessboard or a model boat or directing some sort of square dance – absorbed, weary and interested, pouring all of himself into this effort to capture the imagination of penned-up youths.

“He was overflowing with good humour and love for life with enthusiasm and charm.

“It is rare indeed that a person has the good fortune to meet a saint but he came as close to it as anyone I have ever known.”

Liddell even turned down the opportunity to return to Britain after the prime minister Winston Churchill brokered a deal for his release. True to form Liddell arranged for a pregnant woman from the camp to take his place. His tireless efforts on behalf of both the children of the camp and the older generation took its toll to such an extent that in early 1945 he had to be admitted to the camp hospital.

A few days later he sat up in bed and wrote to his wife in Canada: “… was carrying too much responsibility… had slight nervous breakdown… much better after a month in hospital. Special love to you and the children, Eric”.

But in fact he was not much better. He had a brain tumour and within an hour of writing the note he was gone.

His friend and colleague Anne Buchan reported that he uttered the words, “It’s full surrender”, before lapsing into a coma from which he would never recover. He was just 43.

via China’s love for Chariot’s Of Fire hero Eric Liddell | History | News | Daily Express.

21/08/2015

China gets Chariots of Fire sequel up and running

The much-loved British film Chariots of Fire about the Scottish runner and missionary Eric Liddell is getting a sequel thanks to his many fans in China.

Ian Charleston as Eric Liddell in Chariots of Fire

Joseph Fiennes will play Riddell in a new movie filmed in China, co-written and directed by the Hong Kong director Stephen Shin with Canadian director Michael Parker.

It will be distributed by the Hong Kong-based Alibaba Pictures, who this morning also announced that they are to back the fifth Mission Impossible film.

Chariots of Fire, which won four Oscars in 1982, starred Ian Charleson as Liddell, a devout Christian who had to choose between his sport and religious beliefs at the 1924 Paris Olympics. Months before the Olympics took place, Liddell had to drop his plans to enter his preferred 100m race because the heats took place on a Sunday. Instead, he trained for the 400m and succeeded in taking the gold medal for Great Britain.

The Independent reports that the Chinese-born Liddell is regarded as a hero in China, partly for his sporting prowess but also for his actions in the Japanese internship camp where he died aged 43. Liddell was thought to have organised the smuggling of food in to prisoners.

Born in China to missionary parents, he returned to that country after his Olympic victory to continue his parents’ work. In 1934 he married fellow missionary Florence Mackenzie with whom he had three children.

Liddell remained in China after Japan invaded in 1937. In 1943, he was held in an internment camp in Weifang, and died of a brain tumour two years later, aged 43. In 2008, shortly before the Beijing Olympics, it was revealed that Winston Churchill had negotiated his release through a prisoner swap, which Liddell turned down so that a pregnant inmate could gain freedom instead.

China allows only 34 non-Chinese films to be shown in its mainland cinemas each year. Alibaba Pictures says that it “should” get such a release.

Such a focus on religion is unusual for a film in China, where the Communist government promotes atheism.

via China gets Chariots of Fire sequel up and running.

20/08/2015

What Stands in the Way of Modi’s Digital India – The Numbers – WSJ

Indian Prime Minister Narendra Modi has grand plans to expand the reach of the Internet to his country’s most far-flung citizens.  But some big numbers stand in his way.

1.06 billion

The number of Indians who currently don’t have access to the Internet. India’s offline population is greater than that of China and Indonesia–home to the next two largest unconnected groups–combined.

1 million

The number of miles of fiber optic cable needed to connect 250,000 village clusters in India to the Internet, according to a committee set up to get the project into gear. The original plan estimated that 370,000 miles of cable would do the job.

1%

The proportion of clusters of villages that up to June 30 were fully connected to Internet services in community centers, hospitals and schools under the National Fiber Optic Network that was launched in 2011.

2013

The original deadline for completion of the network. The date has since been shunted back twice and now stands at 2019.

$11.2 billion

The revised budget for the fiber optic network. Almost four times what was originally planned.

via What Stands in the Way of Modi’s Digital India – The Numbers – WSJ.

15/08/2015

China Eastern to buy 15 Airbus jets for $3.6 billion | Reuters

China Eastern (600115.SS)(0670.HK), the country’s No.2 airline by market value, plans to acquire 15 Airbus (AIR.PA) jets for about $3.6 billion to meet booming demand for air travel.

The logo of Airbus Group, Europe's largest aerospace group, is pictured in front of the company headquarters building in Ottobrunn, near Munich February 26, 2014. REUTERS/Michaela Rehle

Airbus is scheduled to deliver seven A330s in 2017 and a further eight in 2018, China Eastern Airlines Corp (CEA.N) said in a statement to the Shanghai stock exchange.

“The company is purchasing 15 Airbus A330 planes to help to replace older planes that will retire over the next few years. It will also help to meet rising passenger demand for mid and long routes,” China Eastern said.

China will be the world’s largest air passenger market by 2034, according to the International Air Transport Association, attracting interest from foreign airlines.

Delta Air Lines Inc (DAL.N) is poised to become the first U.S. carrier to own part of a Chinese peer, announcing plans last month to buy a 3.55 percent stake in China Eastern for $450 million and gaining an “observer” seat on its board.

In a separate statement on Friday, China Eastern reported first-half net profit up sharply to 3.56 billion yuan ($557 million) from only 15 million yuan a year earlier, citing lower fuel prices and strong travel demand.

via China Eastern to buy 15 Airbus jets for $3.6 billion | Reuters.

14/08/2015

‘Car suit’ keeps vehicles high and dry during floods, Chinese inventor says | South China Morning Post

A man in eastern China has invented a “suit” for cars he claims protects them from water damage during the floods that regularly inundate the mainland’s coastal cities, an online newspaper reports.

The cover consists of a copolymer thermoplastic material and waterproof zippers. Photo: SCMP Pictures

More than 3,000 vehicles were flooded when Typhoon Soudelor hit Taizhou in Zhejiang province on August 8, Thepaper.cn reports. One photo of the storm that has drawn particular interest online shows a car wrapped in a heavy, water-proof material.

The man behind the idea is Huang Enfu, a businessman who deals in car parts. “News about damaged cars during urban floods regularly appears. Our costal city often sees such floods. That’s why I invented the suit,” Huang was quoted as saying.

The cover consists of a copolymer thermoplastic material and waterproof zippers. A car owner puts the suit down in an empty space, parks the vehicle over top, pulls the sides up and zips it closed.

Huang said he spent more than 1.6 million yuan (HK$1.93 million) and two years coming up with the idea. He has patented the design and sells them for between 1,500 yuan and 2,500 yuan

Residents in mainland cities have long complained urban sewage systems cannot cope with heavy rainfall during the wet season. Drains easily become overloaded and the water levels on flooded main streets can quickly rise past people’s waists.

Huang says his invention will even allow a properly zipped-up car to float if the water levels become too high. Owners can secure the car suit by tying the four attached ropes to a stationary object.

via ‘Car suit’ keeps vehicles high and dry during floods, Chinese inventor says | South China Morning Post.

12/08/2015

India’s Smartphone Market Is Booming – Especially at the Low End – India Real Time – WSJ

Xiaomi Corp., which announced Monday that its some of its phones are now being assembled at a factory in India, isn’t the only Chinese smartphone maker with its eye on the subcontinent.

With the Chinese economy slowing and demand for smartphones picking up in India, Chinese handset makers including Lenovo Group Ltd.0992.HK +1.70%, Huawei Technologies Co. and Gionee Communication Equipment Co.  are looking to produce and sell more phones in the world’s second-most-populous nation.

But Indian consumers prefer cheaper phones than their Chinese counterparts. Roughly half of smartphones sold in India for the three months ended in June cost less than $100. In China, these low-end smartphones accounted for about 20% of the market over the same period, according to research company International Data Corp. IDC predicts the average selling price of Indian smartphones will fall to $102 in 2018 from $135 in 2014.

The $100 Galaxy J1 and other inexpensive handsets drove sales for Indian smartphone market-leader Samsung Electronics Co.005930.SE 0.00%, helping to increase its share of sales to 23% of the smartphones sold during the quarter ended June 30. In other markets, including China, sales are driven by its flagship Galaxy S6 and Galaxy S6 Edge, which sell for around $600 and $700, respectively, in the U.S.

Smartphone penetration is growing rapidly. While Internet penetration levels in India resemble China’s numbers from six years ago, smartphone penetration is only four years behind, according to a Credit Suisse report. The skyrocketing growth has even caught the attention of Apple Inc.AAPL -5.49%, which recently started offering financing to make its iPhones more accessible to Indians.

That might be bad news for smartphone manufacturers who operate on already razor-thin margins, but it’s potentially good news for Indian consumers and the Indian economy.

It also helps explain why contract manufacturing giant Foxconn says it intends invest billions of dollars setting up factories in India, and why Xiaomi recently announced its first made-in-India smartphone, the $107 Redmi 2 Prime. Changes to tax rules now make it cheaper to manufacture electronics in India. It also shortens the supply chain, meaning phone-makers can get their products to consumers faster and reduce inventory costs.

via India’s Smartphone Market Is Booming – Especially at the Low End – India Real Time – WSJ.

11/08/2015

China Shakes Markets with Yuan Move – China Real Time Report – WSJ

China devalued the yuan by nearly 2% on Tuesday in a surprise move that shook markets around the world and appeared to be a response to sharply weaker exports and plummeting factory prices in a softening economy. The central bank described its action as a new way of setting the daily parity or reference rate – a rate it sets for the currency against the dollar –  to better reflect market rates.  (The markets get a chance to trade the currency around that rate, but not by much. The yuan can go up or down only 2% from that crucial central rate.)

So far this year, the parity rate has hardly budged against the dollar even though the latter has been rising steadily against other currencies. That has made China’s exports more expensive in many markets just as the world’s second largest economy is slowing.  The People’s Bank of China says it will now pay more attention to the market levels when it sets its parity rate. It also called the move a “one-time fix.”

Economists are hotly debating the significance of the move, in part because it seems to be speaking to many different audiences. It will help the struggling export sector, which has stalled amid weak global demand. Exports in July, for example, sank more than 8% and they were down nearly 1% for the first seven months of the year.

At the same time, it was essential for the People’s Bank of China not to alarm domestic and foreign investors to avoid triggering a wave of capital outflows. Investors tend to dump a weakening currency and move their assets into other currencies. Thus, the PBOC said the move was a one-time reform effort to bring the yuan more in line with the markets.

Finally, the central bank may also have had the International Monetary Fund in its sights. The yuan is up for possible inclusion in international agency’s Special Drawing Rights, a basket of currencies that serves as a global reserve. Too big a move might have damaged Beijing’s case that the yuan is a suitable candidate for addition to that basket of currencies, analysts said.

via Economists React: China Shakes Markets with Yuan Move – China Real Time Report – WSJ.

10/08/2015

China to build highway for Liberia as part of Ebola recovery aid | Reuters

China will build a new coastal highway for Liberia as part of its aid to the country recovering from an Ebola epidemic, Liberia’s foreign minister said on Sunday.

English: Map of the Mano River Union showing G...

English: Map of the Mano River Union showing Guinea, Liberia and Sierra Leone. (Photo credit: Wikipedia)

He was speaking at a news conference with China’s Foreign Minister Wang Yi who is visiting Liberia, Guinea and Sierra Leone, the countries hardest hit by the epidemic.

Liberia’s existing coastal route is vital for commerce as the country rebuilds after a civil war that ended in 2003. It connects the capital to the border with Ivory Coast via the port city of Buchanan, where exports of exports of iron and timber pass through, but much of the road is unpaved.

“China has agreed to help Liberia with the construction of a ministerial complex which will host about 10 ministries. Also, China will construct a coastal highway,” Liberia’s Augustine Kpehe Ngafuan said.

China would use its global fund for Africa to finance the project and seek partners, he said. The construction of the ministries had already been announced.

Wang did not directly refer to the highway but said Ngafuan had explained the specific components of China’s aid.

“China is open to cooperation in all areas and we know that Liberia is attracting investments from all countries around the world. We know about the historic ties between Liberia and USA but China has its own strength,” Wang said.

“Our relations with Liberia have enjoyed fast growth,” he said. Liberia was founded by freed American slaves and has retained close ties with the United States.

Ebola has killed more than 4,800 people in Liberia and almost 11,300 people in the three countries since the outbreak began in December 2013 but the number of new cases has fallen to close to zero in recent weeks.

China, Africa’s biggest trading partner, has sent hundreds of medical workers to Africa and contributed aid of more than $120 million to the anti-Ebola effort, after initially facing criticism for not doing enough.

Many big companies in China have invested in Africa, tapping the continent’s rich vein of resources to fuel the Asian giant’s economic growth over the past couple of decades.

via China to build highway for Liberia as part of Ebola recovery aid | Reuters.

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