Archive for February, 2015

25/02/2015

Tourist Spots Across Asia Learn to Say ‘Nihao’ for Lunar New Year – China Real Time Report – WSJ

“Nihao, huzhao dai le ma?”

At a number of the Tokyo stores of Japanese clothing retailer Uniqlo over the last week, the words coming out of cashiers’ lips are not Japanese, but Chinese.

The occasion was the Lunar New Year, a celebration in China that is supposed to be all about family and spending time at home. But increasingly, Chinese tourists have been flocking overseas – mostly to Asian destinations – to spend their yuan in a migration of an annual rite that has been dubbed China’s Golden Week.

Bolstered by a strong currency and greater wealth, more Chinese than ever before are traveling abroad for their not-so-Chinese New Year compared to those staying home, with South Korea, Thailand and Japan leading the top picks this year, according to the China National Tourism Administration.

In the case of Japan, staff at big shopping destinations like Uniqlo said they brought over Chinese-speaking staff to deal with Chinese tourists during the period. The question in Chinese that the cashier was asking China Real Time translates as: “Hello, do you have your passport?” Some Japanese stores offer tax-free shopping for tourists – lopping a generous 8% off the tab – if they can produce a foreign passport. Uniqlo didn’t immediately respond to a message for comment.

For this week at least, destinations like Japan have rolled out the welcome mat for visitors who raid foreign stores for everything from luxury handbags to sophisticated toiletry. Staff in even the most traditional of Japanese restaurants have learned to say “xiexie!” – Chinese for thank you.

Some 5.2 million Chinese are estimated to be spending 140 billion yuan ($22.4 billion) this year, up from 4.73 million last year, the Chinese tourism administration says. While nearly 40% went to the top three destinations, the balance of the mainlanders also made beelines for Australia, Singapore, Malaysia, Indonesia and the Philippines.

via Tourist Spots Across Asia Learn to Say ‘Nihao’ for Lunar New Year – China Real Time Report – WSJ.

25/02/2015

Xi Jinping Hopes to Count in Chinese Political History With ‘Four Comprehensives’ – China Real Time Report – WSJ

Connoisseurs of Chinese political numerology can finally take a breath: After more than two years in office, Chinese President Xi Jinping has uncorked his own ordinal political philosophy.

In the past, Chinese leaders have tended to fall into two camps when expounding their theories of development: those who favor numbered lists, and those who opt for more conventional proclamations. Late Premier Zhou Enlai and former President Jiang Zemin were in the former camp, pushing the “Four Modernizations” and “Three Represents,” respectively. Meanwhile, Deng Xiaoping (“Reform and Opening Up”) and former President Hu Jintao (“Scientific Outlook on Development”) opted to eschew the integers.

Questions have loomed about what slogan Mr. Xi, who replaced Mr. Hu at the helm of the Communist Party in November 2012, would use to represent himself in the party’s theoretical pantheon. For a time, some thought he might follow his non-numeric predecessor and go with the “Chinese Dream” of national rejuvenation, a notion he put forward shortly after taking power.  It now appears he has decided otherwise.

On Wednesday, the Communist Party’s flagship newspaper People’s Daily and other Chinese media gave blanket coverage to what Mr. Xi has taken to calling the “Four Comprehensives,” a set of principles emphasizing the need to “comprehensively build a moderately prosperous society, comprehensively deepen reform, comprehensively govern the nation according to law and comprehensively be strict in governing the party.”

Aside from the idea of a moderately prosperous society — a Confucian ideal revived and popularized under Mr. Hu — the other catch-phrases are all closely associated with Mr. Xi, who has cracked down hard on corruption in Communist Party ranks while pushing for legal reforms and warning of the need to be resolute about reforms in general.

It wasn’t the first mention of “Four Comprehensives” in the Chinese press. Mr. Xi introduced the idea during an inspection tour in eastern China’s Jiangsu province in mid-December, according to People’s Daily, and the phrase made a few scattered appearances on Chinese-language news websites earlier this month. But Wednesday was the first time the theory was propagated on a wide scale, suggesting that it had earned widespread acceptance at the top of the party.

via Xi Jinping Hopes to Count in Chinese Political History With ‘Four Comprehensives’ – China Real Time Report – WSJ.

25/02/2015

India to embark on rail investment splurge thanks to cheap oil | Reuters

India’s decrepit state-run train services stand to receive at least a 25 percent boost in investment to over $9 billion, funded solely by falling fuel costs, according to officials familiar with a railway budget set to be unveiled on Thursday.

A worker cleans a railway track at a railway station in Kolkata October 2, 2014. REUTERS/Rupak De Chowdhuri/Files

The world’s fourth largest rail network could get even more if Prime Minister Narendra Modi makes it a priority, as China did during its rapid economic growth over the past two decades.

There are high hopes that his nine-month-old government will plough money into investment in infrastructure needed to haul the economy out of a rut when it presents its first annual federal budget on Saturday.

The separate rail budget – a relic of the country’s British colonial past – could show how far Modi’s India is prepared to drive investment in a vital transport sector.

“The fall in diesel prices and a pick-up in freight earnings have given us a golden chance to raise investments,” said one government official.

Falling oil prices have saved billions of dollars in subsidy spending across the economy, but Finance Minister Arun Jaitley is under pressure to prevent the fiscal deficit from busting a target of 3.6 percent of gross domestic product.

Railway Minister Suresh Prabhu, according to the officials, has factored in savings from

via India to embark on rail investment splurge thanks to cheap oil | Reuters.

25/02/2015

China drops leading technology brands for state purchases | Reuters

China has dropped some of the world’s leading technology brands from its approved state purchase lists, while approving thousands more locally made products, in what some say is a response to revelations of widespread Western cybersurveillance.

A Cisco logo is seen at its customer briefing centre in Beijing, November 14, 2013. REUTERS/Kim Kyung-Hoon

Others put the shift down to a protectionist impulse to shield China’s domestic technologyindustry from competition.

Chief casualty is U.S. network equipment maker Cisco Systems Inc (CSCO.O), which in 2012 counted 60 products on the Central Government Procurement Center’s (CGPC) list, but by late 2014 had none, a Reuters analysis of official data shows.

Smartphone and PC maker Apple Inc (AAPL.O) has also been dropped over the period, along with Intel Corp‘s (INTC.O) security software firm McAfee and network and server software firm Citrix Systems (CTXS.O).

The number of products on the list, which covers regular spending by central ministries, jumped by more than 2,000 in two years to just under 5,000, but the increase is almost entirely due to local makers.

The number of approved foreign tech brands fell by a third, while less than half of those with security-related products survived the cull.

An official at the procurement agency said there were many re

via Exclusive: China drops leading technology brands for state purchases | Reuters.

24/02/2015

Modi’s bid to ease land for companies could impact reforms | Reuters

A bid by Prime Minister Narendra Modi to make it easier for businesses to buy farm land for infrastructure and industry has sparked a backlash that could stymie his efforts to get reforms through a parliament session that began on Monday.

Labourers work along the construction site of a road at Ghilot in Rajasthan, October 1, 2014.  REUTERS/Adnan Abidi/Files

While the change is aimed at unlocking hundreds of billions of dollars worth of projects, which have been stuck for want of land, opposition parties and rights activists say it discriminates against farmers.

“We will protest and fight the government on this issue inside and outside parliament,” Ghulam Nabi Azad, a senior leader of the opposition Congress party, told the Indian Express.

Modi issued an ordinance in December to exempt projects in defence, rural electrification, rural housing and industrial corridors from provisions of a law enacted by the previous Congress party government that mandated the consent of 80 percent of affected landowners for any deal.

He had also ended the need for companies to conduct a social impact study of such projects, which would involve public hearings and, industry executives fear, drag on for years.

The ordinance is a temporary order and needs the approval of both houses of parliament to come into force. It will lapse if parliament does not ratify it this session.

via Modi’s bid to ease land for companies could impact reforms | Reuters.

24/02/2015

Retail dilemma in India – nice malls are few and far between | Reuters

A severe shortage of attractive malls has made setting up shop in India easier said than done, crimping expansion plans for both foreign retailers such as Lacoste and domestic giants like department store chain Shoppers Stop (SHOP.NS).

A private security guard stands guard inside the premises of the MGF mall in New Delhi February 23, 2015.  REUTERS/Adnan Abidi

India’s searing heat, heavy traffic and cluttered pavements make malls the most popular option for urban middle class consumers looking for a day out. But many centres – despite having been built in the last decade – are struggling to draw shoppers or retailers because of poor design or because they are difficult to manage.

P.S. Puri, CEO of MGF Mall Management, which runs MGF Metropolitan, knows this all too well. Located in a posh district in the south of New Delhi, security guards and sales staff outnumbered shoppers last Tuesday evening in what was once a bustling mall.

It has restaurants but lacks popular attractions like a food court and a cinema. The sale of shop ownership piecemeal has made management difficult and now only one quarter of the space is occupied by fashion retailers – about the same amount that is vacant.

via Retail dilemma in India – nice malls are few and far between | Reuters.

22/02/2015

Modi bets on GM crops for second green revolution | Reuters

On a fenced plot not far from Prime Minister Narendra Modi‘s home, a field of mustard is in full yellow bloom, representing his government’s reversal of an effective ban on field trials of genetically modified (GM) food crops.

A scientist points to a patch of genetically modified (GM) rapeseed crop under trial in New Delhi February 13, 2015. REUTERS-Anindito Mukherjee

The GM mustard planted in the half-acre field in the grounds of the Indian Agricultural Research Institute in New Delhi is in the final stage of trials before the variety is allowed to be sold commercially, and that could come within two years, scientists associated with the project say.

India placed a moratorium on GM aubergine in 2010 fearing the effect on food safety and biodiversity. Field trials of other GM crops were not formally halted, but the regulatory system was brought to a deadlock.

But allowing GM crops is critical to Modi’s goal of boosting dismal farm productivity in India, where urbanisation is devouring arable land and population growth will mean there are 1.5 billion mouths to feed by 2030 – more even than China.

via Modi bets on GM crops for second green revolution | Reuters.

22/02/2015

China protests Modi’s visit to disputed border region | Reuters

China said on Friday it had lodged an official protest against Prime Minister Narendra Modi‘s visit to a border region claimed by both countries.

China disputes the entire territory of Arunachal Pradesh, calling it south Tibet. Its historic town Tawang, a key site for Tibetan Buddhism, was briefly occupied by Chinese forces during a 1962 war.

“The Chinese government has never recognized the so-called ‘Arunachal Pradesh’,” a statement on the Chinese Foreign Ministry‘s website said on Friday.

It said Modi’s visit was “not conducive to the overall development of bilateral relations”.

Modi visited Arunachal Pradesh on Friday to inaugurate the opening of a train line and power station. He did not mention China but pledged billions of dollars of investment to develop infrastructure in the region.

“I assure you that you will witness more development in the state in the next five years than it has seen in the last 28 years,” Modi said, addressing a huge crowd.

Faster transport links and exploitation of Arunachal Pradesh’s hydro-electric potential are the keys to fighting poverty and bringing about rapid development in the frontier state, he said.

In January, China objected to statements by Japan’s foreign ministry supporting India’s claim to the region.

A visit by U.S. President Barack Obama to India in January was widely seen as a sign Modi is moving closer to the United States, to offset rising Chinese influence in Asia and, in particular, intensifying activity by the Chinese navy in the Indian Ocean.

via China protests Modi’s visit to disputed border region | Reuters.

20/02/2015

Indian IT firms eye robotics, driverless cars for next round of growth | Reuters

After decades of low-margin work like server maintenance, India’s information technology services firms are moving upscale in search of lucrative contracts for driverless cars and other advanced projects as online innovation changes clients’ needs.

Employees walk along a corridor in the Infosys campus in the southern Indian city of Bangalore September 23, 2014. REUTERS/Abhishek Chinnappa/Files

Companies from Tata Consultancy Services Ltd (TCS.NS) to Wipro Ltd (WIPR.NS) are all joining Infosys Ltd (INFY.NS) in investing in new, high-end technology, industry watchers say. Earlier this week Infosys bought U.S. automation specialist Panaya Inc for $200 million.

Triggering change is a wave of invention allowing machines to talk to each other online, dubbed ‘the Internet of things‘. Customers are ramping up: from about 5 percent now, strategy advisor Offshore Insights estimates automation and artificial intelligence work will grow to 25 to 30 percent of an IT outsourcing market seen by the national industry association as worth $300 billion by 2020.

“We’re in the midst of a new wave of software, and IT services companies really don’t have a choice,” said R. Ray Wang, principal analyst and founder of Silicon Valley-based Constellation Research.

via Indian IT firms eye robotics, driverless cars for next round of growth | Reuters.

20/02/2015

Subsidy cuts in budget may disappoint investors | Reuters

India may slash its food and fuel subsidy bill by about $8 billion in next week’s budget, two sources said, but despite the impressive headline, the cut is not as radical as free market champions had hoped for in Prime Minister Narendra Modi‘s first full budget.

A view of the Indian parliament building is reflected on a car in New Delhi April 24, 2012. REUTERS/B Mathur/Files

Most of the 20 percent cut in the budget for subsidies results from lower global oil prices rather than structural changes, with the government’s appetite for reform tempered by a heavy local election defeat in New Delhi this month.

“The total subsidy bill could come down to around 2 trillion rupees ($32 billion),” a senior government official, who has direct knowledge of the matter, told Reuters. That calculation was echoed by another source privy to budget discussions.

via Exclusive – Subsidy cuts in budget may disappoint investors | Reuters.

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