Archive for November, 2014

03/11/2014

Asset-Hungry Chinese Companies to Spend $120 Billion in Overseas Purchases This Year – Businessweek

Chinese money has been going overseas for years now, snapping up real estate, technology companies, and more than anything, oil and gas resources. But this year will be a turning point: For the first time, Chinese overseas investment will surpass foreign direct investment into China.

Chinese investment is poised to exceed $120 billion in 2014, up from $108 billion last year, predicts the Beijing-based Center for China & Globalization in a report released Wednesday. Foreign investment into China totaled $87.36 billion in the first nine months. It is expected to reach $120 billion this year.

“China’s sustainable growth and its ability to compete on the world stage hinge upon the speed at which it can foster its own powerful international companies,” said Long Yongtu, the chairman of the center, the China Daily reported today. “’Going out’ will provide a platform for Chinese companies to grow through participation in the global economy.”

via Asset-Hungry Chinese Companies to Spend $120 Billion in Overseas Purchases This Year – Businessweek.

03/11/2014

Religious Tension Escalates in North India Ahead of Muharram – India Real Time – WSJ

As Muslims across India prepare to observe the holy day of Ashura in the Islamic month of Muharram on Tuesday, religious tension between Hindus and Muslims is on the rise in some parts of northern India.

Shiite Muslims, who traditionally hold processions on the 10th day of Muharram to mourn the death of Prophet Muhammad’s grandson, have been forbidden from passing through certain Hindu neighborhoods in New Delhi.

According to Zafarul Islam Khan, head of the All India Muslim Majlis-e-Mushawarat, an umbrella organization of Muslim groups based in Delhi, in the Bawana neighborhood of northwest Delhi, a “maha panchayat,” an unelected village council, on Sunday decided that Muslim processions should be banned in public spaces, particularly those with majority Hindu populations.

Heads of nearby villages dominated by the Hindu Jat caste also attended this meeting to affirm their opposition to the public processions, Mr. Khan says members of the Muslim community told him. Members of the village council could not be reached for comment.

Muslims have, in turn, agreed to restrict their processions to a Muslim-dominated residential colony instead of the main market of Bawana, according to a report in the Times of India.

During the Ashura march — also referred to as Muharram — many Muslims weep and inflict wounds on themselves in an expression of grief for the martyrdom of Hussein, Prophet Muhammad’s grandson.

“The Muslims themselves have decided not to take their processions to Hindu areas,” said Mr. Khan, adding, “this is happening for the first time.”

After communal violence broke out in New Delhi following celebrations for the Hindu festivals of Dussehra and Diwali last month, the atmosphere in neighborhoods with mixed Hindu and Muslim populations is still tense, according to a Times of India report.

In the eastern neighborhood of Trilokpuri in the capital, tension over the construction of a platform for Hindu gatherings close to a mosque led to low intensity violence for several days, culminating in three days of riots that ended Oct. 26.

There is an ongoing conflict over public space, said Mr. Khan, which leads to small incidents of communal tension across the country.

“In my childhood, everyone took part in the [Muharram] processions,” he said, adding that increasing polarization between Hindus and Muslims have turned festivals into a point of communal tension.

Processions for Muharram often begin a few days before the 10th day, which falls on Tuesday this year. On Sunday, authorities imposed curfew-like restrictions in most parts of Srinagar, the Muslim-majority summer capital of the northern state of Jammu and Kashmir, to prevent religious processions of Shiite Muslims on the eighth day of Muharram, according to a report in Xinhua, China’s state-run news agency.

via Religious Tension Escalates in North India Ahead of Muharram – India Real Time – WSJ.

03/11/2014

Wagah Border Flag Ceremony a Casualty of Pakistan Bomb Attack – India Real Time – WSJ

At sunset each day, before the only road crossing between India and Pakistan closes for the night, a military spectacle takes place in which forces from both countries come face-to-face and goose-step to goose-step at the Wagah border for an elaborate flag-lowering ceremony.

On Sunday, as spectators there headed for home, a suicide bomber on the Pakistan side detonated a device that killed dozens and more than 100 injured.

In response, India has now put on hold the ceremony that has taken place for six decades since the creation of Pakistan, according to officials from India’s Border Security Force, a paramilitary force responsible for guarding the country’s land border.

For at least three days the border will close without fanfare, officials said.

The Wagah border is about 14 miles from Lahore. The ceremony, known as ‘Beating Retreat’, attracts thousands of Indians and Pakistanis  as well as a few bemused-looking foreign tourists to the tiered seating on each side of the border and the place echoes to cheers  “Long live India” and “Long live Pakistan” as each side tries to outdo each other.

The south Asian nuclear-armed neighbors have had frosty relations since the partition of the Indian subcontinent in 1947, and have fought three wars over the Himalayan territory of Kashmir, which both sides claim. Sunday’s suicide attack comes amid increased tensions between India and Pakistan after a resurgence of cross-border shooting at the disputed frontier in the Kashmir region.

Despite India and Pakistan’s rocky past and fractious present, the Wagah border ceremony is full of good-natured nationalistic pomp. If you want to get a sense of the atmosphere, think changing of the guard crossed with a baseball game.

The ritual begins with the sound of bugles blown together by military guards on both sides followed by a parade – a well-coordinated, energetic military display of competitive high-kicking put together by members of India’s Border Security Force and the Rangers of Pakistan.

Representatives from each side take it in turns to shout at the top of their voices and for as long as they can into a microphone in what could be described as a yell-off.

The end is marked by the lowering of the flags as soldiers shake hands across the divide between the hostile neighbors, before the border gates are slammed shut.

via Wagah Border Flag Ceremony a Casualty of Pakistan Bomb Attack – India Real Time – WSJ.

03/11/2014

In China, Foreign Car Makers Find It Tough to Keep Buyers Happy – China Real Time Report – WSJ

Volkswagen VOW3.XE -0.44% and General Motors GM +2.01% make many of China’s bestselling cars. But a survey of new-car purchasers suggests Chinese drivers aren’t always satisfied with what they drive off the lot.

The report, issued Friday by consulting firm J.D. Power, shows the German auto maker posted improvements for its locally made cars compared with a similar accounting a year ago. Still, it continued to rank relatively low for its locally produced cars compared with other foreign and domestic brands that drivers find acceptable. Chinese car buyers had few gripes with imported Volkswagens.

Meanwhile, models of GM’s Buick and Chevrolet didn’t appear on the list at all. That means both scored below average in the survey, J.D. Power said. A J.D. Power representative told China Real Time that Buick is showing signs of improvement compared to last year but Chevrolet remains flat.

In the market for high-end cars, Volkswagen’s Audi NSU.XE +0.62% brand also didn’t appear in the survey, meaning it performed below average but showed a marginal improvement over last year according to J.D. Power.

GM’s Cadillac also ranked below average, but is showing signs of improvement compared to last year, the J.D. Power representative said.

A spokeswoman for Volkswagen in China said the company does not comment on survey results. GM could not be reached immediately for comment.

“Audi stands for quality, which is proven by our customers’ direct feedback to us and their continued loyalty,” said Martin Kuehl, Audi’s spokesman in China.

The survey underscores the challenges of satisfying Chinese car buyers. Many of them are first-time buyers with high hopes for their new wheels, and who auto makers want to service when they go looking for their second car.

Mei Songlin of J.D Power says the performance may be explained in part by the perceptions of Chinese consumers, who widely believe foreign cars to be of higher quality. “Their expectations are sometimes too high and when they encounter any issue they can’t accept it,” he says.

For VW, the report comes amid increasing scrutiny in China. Last week the German auto maker’s China chief, took to the media to convince Chinese consumers its Sagitar brand was safe. That followed a recall of more than half a million VW cars in China, including Sagitars, for problems related to rear axles.

In an interview in September, GM’s China head, Matt Tsien, said quality was is one of the top priorities for the company. “We’re proud of the quality of the products that we offer. We have, year on year, continued to improve our quality and will continue to do so going forward,” he said.

The survey was based on evaluations by more than 21,000 owners of cars bought between October last year and June and was conducted in more than 50 cities throughout China between April and August.

via In China, Foreign Car Makers Find It Tough to Keep Buyers Happy – China Real Time Report – WSJ.

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03/11/2014

Chinese submarine docks in Sri Lanka despite Indian concerns | Reuters

Submarine Changzheng-2 and warship Chang Xing Dao arrived at the port on Friday, seven weeks after another Chinese submarine, a long-range deployment patrol, had called at the same port ahead of a visit to South Asia by Chinese President Xi Jinping.


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“A submarine and a warship have docked at Colombo harbor. They called on Oct. 31 and will be here for five days for refueling and crew refreshment,” Sri Lankan navy spokesman Kosala Warnakulasuriya said.

“This is nothing unusual. Since 2010, 230 warships have called at Colombo port from various countries on goodwill visits and for refueling and crew refreshment.”

However, the frequency of Chinese visits has become a concern for New Delhi, Indian officials have told Reuters.

“India has raised concerns over this but not aggressively,” an Indian official familiar with diplomatic discussions between the neighbors told Reuters.

China has invested heavily in Sri Lanka in recent years, funding airports, roads, railways and ports, a development that has unsettled India, traditionally the closest economic partner of the island nation of 21 million people.

India has already raised concerns over an aircraft maintenance facility following speculation it could be built in the eastern port city of Trincomalee, which India considers a strategic location in national security terms.

via Chinese submarine docks in Sri Lanka despite Indian concerns | Reuters.

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03/11/2014

Wanted: 500,000 pilots for China aviation gold rush | Reuters

China’s national civil aviation authority says the country will need to train about half a million civilian pilots by 2035, up from just a few thousand now, as wannabe flyers chase dreams of landing lucrative jobs at new air service operators.

Guests walk next to aircraft during the Asian Business Aviation Conference and Exhibition (ABACE) at Hongqiao International Airport in Shanghai in this April 15, 2014 file photograph. REUTERS/Carlos Barria/Files

The aviation boom comes as China allows private planes to fly below 1,000 meters from next year without military approval, seeking to boost its transport infrastructure. Commercial airlines aren’t affected, but more than 200 new firms have applied for general aviation operating licenses, while China’s high-rollers are also eager for permits to fly their own planes.

The civil aviation authority’s own training unit can only handle up to 100 students a year. With the rest of China’s 12 or so existing pilot schools bursting at the seams, foreign players are joining local firms in laying the groundwork for new courses that can run to hundreds of thousands of dollars per trainee.

“The first batch of students we enrolled in 2010 were mostly business owners interested in getting a private license,” said Sun Fengwei, deputy chief of the Civil Aviation Administration of China‘s (CAAC) pilot school. “But now more and more young people also want to learn flying so that they can get a job at general aviation companies.”

While uncertainties remain for what will be a brand new industry, firms are betting they can make money and trainee pilots are convinced they can land dream jobs. Among them is Zong Rui, a 28-year-old former soldier in the People’s Liberation Army from Shandong province in east China, attending a pilot school in Tianjin, an hour’s drive from Beijing.

“The salary is good for a general aviation pilot,” Zong told Reuters by telephone, preparing for a training session. Even without a job lined up, Zong is certain money he borrowed to learn how to fly will pay off: “I can easily pay back the 500,000 yuan ($81,750) tuition in two years, once I get a job.”

via Wanted: 500,000 pilots for China aviation gold rush | Reuters.

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