Chindia Alert: You’ll be Living in their World Very Soon
aims to alert you to the threats and opportunities that China and India present. China and India require serious attention; case of ‘hidden dragon and crouching tiger’.
Without this attention, governments, businesses and, indeed, individuals may find themselves at a great disadvantage sooner rather than later.
The POSTs (front webpages) are mainly 'cuttings' from reliable sources, updated continuously.
The PAGEs (see Tabs, above) attempt to make the information more meaningful by putting some structure to the information we have researched and assembled since 2006.
Modified version of country’s most powerful rocket carries next-generation capsule designed to take astronauts to its planned space station
It will be able to launch and land with three crew members and up to 500kg of cargo, according to state media
China launched a new version of its heavy-lift Long March 5 rocket on Tuesday. Photo: Reuters
China successfully launched a prototype of its next-generation manned spacecraft – without astronauts – along with a new version of its heavy-lift Long March 5 rocket on Tuesday, its space agency said.
The Long March 5B rocket was launched into low-Earth orbit from the Wenchang Satellite Launch Centre on Hainan Island in the country’s south.
The launch marks a significant step forward for China’s two big space exploration ambitions – building a space station and a mission to Mars.
A modified version of China’s most powerful rocket, the Long March 5B is 53.7 metres (176 feet) tall. It will carry the next-generation crew capsule prototype designed to replace the Shenzhou spacecraft, to transport astronauts to its planned space station in low-Earth orbit.
China aims to launch the core module of that space station designed for three crew members, the Tianhe, in 2021. Beijing has been planning to build its own space station for decades as an alternative to the International Space Station, from which China has been excluded by the United States over security concerns.
China’s space station project has been delayed by problems with its heavy-lift rockets. Photo: Xinhua
The prototype capsule has a different configuration to Shenzhou’s and it will be able to launch and land with three astronauts on board as well as up to 500kg of cargo, according to state news agency Xinhua. That will mean it can be used to transport research specimens and hardware from the space station back to Earth.
While the Shenzhou can ferry three astronauts, the new capsule design will be able to accommodate up to six crew members and, unlike the Shenzhou, it will be capable of carrying them to the moon, according to Chinese media reports.
Its systems, performance in orbit and parachute deployment are among the areas that will be put to the test during the launch.
Why China’s next Long March 5 rocket mission will be about restoring national pride
14 Dec 2019
The long-anticipated space station project has been delayed by problems in the development of heavy-lift rockets to carry the modules. In 2017, an oxygen supply problem caused the failure of the second Long March 5 launch, and it plunged into the Pacific Ocean shortly after take-off. But in December it successfully carried a Shijian-20 satellite into orbit, while the liquid oxygen-liquid hydrogen engines used in both the Long March 5 and 5B rockets passed testing in January.
China’s other space ambitions include a Mars probe, and landing astronauts on the moon within the next decade. For the Mars mission, the unmanned orbiter and rover Tianwen-1 will be launched by the Long March 5 and it is expected to take up to seven months for the probe to reach the red planet. China would be the third country to do so – after the United States and the Soviet Union.
Zhang Kejian, head of the China National Space Administration, said China was on track to launch the mission this year, with July the likely launch date.
BEIJING (Reuters) – China will cut its subsidies on new energy vehicles (NEV) by 10% this year, and will expand government purchases of NEVs, the finance ministry said on Thursday.
China will in principle cut such subsidies by 20% in 2021 and 30% in 2022, the finance ministry said in a statement. However, it will not cut subsidies on qualified new energy commercial vehicles earmarked for public purposes this year.
Under the plan, China would extend subsidies for NEV purchases to 2022, rather than ending them this year, and extend their purchase tax exemption for two years.
China will slightly lift the requirements for the driving range and power efficiency of cars qualified for the subsidies, the statement said, adding authorities will support the sales of cars with swappable batteries, a technology that has been pursued by Chinese electric vehicle makers Nio Inc (NIO.N) and BAIC BluePark (600733.SS).
Only passenger cars cheaper than 300,000 yuan (34,330.23 pounds) will be offered subsidies, it said. The price is higher than starting price of Tesla Inc’s (TSLA.O) China-made Model 3 sedans.
China also said authorities will give priority to purchase new energy vehicles for government use but did not give further details.
The new policy is effective from April 23. NEVs include battery-powered electric, plug-in hybrid and hydrogen fuel-cell vehicles.
China has set an aggressive goal for NEVs to account for a fifth of auto sales by 2025 compared with the current 5%, as it seeks to reduce pollution and cultivate homegrown champions.
Sales of NEVs, however, contracted for a ninth month in a row in March and were down over 50% from a year earlier, according to data from the China Association of Automobile Manufacturers (CAAM).
Israeli medical equipment firm IceCure Medical, with an initial US$4 million sales and marketing effort, will open its first Chinese office in Shanghai
English shopping outlet company Value Retail sees the chance to lure consumers who have been under lockdowns aimed at halting the spread of the coronavirus
Foreign firms, including Israeli medical equipment maker IceCure Medical and English shopping outlet company Value Retail, still see opportunities in China despite the coronavirus. Photo: AFP
Not only has the coronavirus pandemic not watered down one company’s expansion plans for China, it has given it even greater reason to push forward into the Chinese market.
Israeli company IceCure Medical is forging ahead with opening its first Chinese office in Shanghai, with plans to spend up to US$4 million for the initial sales and marketing effort for its non-surgical breast cancer treatments.
Chief executive Eyal Shamir said he has seen an uptick in Chinese interest in the company’s ProSense product, which allows the freezing of tumours outside a hospital environment, because it can free up facilities badly needed for Covid-19 patients.
The government approval of the company’s Chinese subsidiary is now only days away following a successful product console registration, according to Shamir, and it has already sold two units to the Fudan University Shanghai Cancer Centre for a clinical study.
World Health Organisation warns the ‘worst still ahead’ in coronavirus pandemic
“We are planning a full launch of the product in China for both breast cancer and breast benign tumours as well as other organs,” Shamir said.
“Post Covid-19, there will be a backlog of many surgeries and not only for breast cancer patients.”
IceCure Medical, though, is not the only foreign company eyeing expansion into China despite the risk of secondary outbreaks of coronavirus.
West of Shanghai, English shopping outlet company Value Retail is also expanding its retail space, banking on Chinese shoppers re-emerging from lockdowns to begin
After being cooped at home for weeks, people want to be outdoors to enjoy the beautiful spring weather – Value Retail
Value Retail is proceeding with plans to enlarge its Suzhou Village shopping centre from 35,000 square metres (378,000 sq ft) to over 50,000 square metres, while also increasing the number of shops from 120 to 200, which will make it the largest of the 11 venues its controls globally.
It is working closely with the Yang Cheng Lake Peninsula government on a date for construction to start, after seeing a surprising increase in retail sales at its centres in early April. The company’s Chinese subsidiary, Value Retail China, attributed the rise to an increasing number of consumers wanting to “get outside” of their homes after being isolated for several weeks.
Suzhou Village sales have increased 40 per cent each week since the start of April, the company said.
“Thanks to the positive recovery [in spending] over the past several weeks, we are going ahead with the Suzhou Village expansion,” the company said in a statement. “After being cooped at home for weeks, people want to be outdoors to enjoy the beautiful spring weather. We provide a shopping experience for guests in an outdoor environment … the motivation for such an experience after isolation is huge. [Being] outdoors is seen as a luxury now.”
In addition, customers are flocking to both its Suzhou and Shanghai Village centres as a form of domestic tourism because of the curb on overseas travel, Value Retail China said.
Despite the economic destruction that the coronavirus pandemic has caused in China, it also is opening up expansion opportunities for entrepreneurial firms in several industries, such as e-commerce and online delivery, life sciences and infrastructure construction, said EY Asia-Pacific transaction advisory services leader Harsha Basnayake.
However, while businesses within Asia-Pacific expressed a desire for opportunistic expansions, most companies still held a pessimistic view of economic recovery that would drag on into 2021.
American companies already operating in China were even less optimistic with over 70 per cent of businesses surveyed by the American Chamber of Commerce in March saying they were reluctant about expanding in the coming year.
Although it is too early to say if retail property will rise – particularly when we are seeing new habits forming, going from shopfronts to online and how far this new behaviour will stick. China will gives us lots of lessons on this. – Harsha Basnayake
“We are expecting opportunities in real estate, particularly in commercial property and logistics, and we think industries in life sciences, some parts of health care and infrastructure will be interesting,” Basnayake said.
“Although it is too early to say if retail property will rise – particularly when we are seeing new habits forming, going from shopfronts to online and how far this new behaviour will stick. China will gives us lots of lessons on this.”
The Chinese government’s move to increase infrastructure spending to boost the economy will also benefit certain industries, such as cement production.
Despite suffering a 24 per cent drop in sales in the first quarter due to virus-related delays in construction activities, China’s largest cement manufacturer, Anhui Conch Cement, is likely to move forward with plans to expand in part due to its participation in the Belt and Road Initiative, according to analysts at S&P Global.
Though no one would be able to tell exactly what will happen when the Covid-19 uncertainties are not completely gone, signs of recovery in China have brought encouragement to us – Justin Channe
Desires to expand are also not limited to these industries, and even the hard-hit hotel industry is starting to show green shoots.
International hotel chain IHG said that the coronavirus would not derail its new Regent-branded hotel project in Chengdu, which is expected to start construction later this year.
“Though no one would be able to tell exactly what will happen when the Covid-19 uncertainties are not completely gone, signs of recovery in China have brought encouragement to us,” said Regent Hotels & Resorts managing director Justin Channe.
“While we saw business pickup across China over the past Qing Ming Festival holiday, Chengdu and its nearby destinations were among the leading ones. In the long run, we stay confident of the outlook for the China hotel industry, including the luxury segment.”
Analysing how coronavirus broke China’s historic economic growth run
Beyond the crisis, there will be ample opportunities for new merger and acquisitions (M&A) amid business restructures and failures, particularly in China, Basnayake added.
A new EY survey found 52 per cent of Asia-Pacific businesses planned on pursuing M&A in the next year.
“While the crisis is having a severe impact on M&A sentiment, there’s evidence from the survey that M&A activity intentions remain steady in the long term. There are many who recognise this is a time where valuations will be reset, and there will be stressed and distressed acquisition opportunities,” Basnayake said.
“For example, from our interviews with corporations in China, a majority said that Covid-19 has not impacted their M&A strategies, noting that the situation has not led to any cancellations or withdrawals from deals, but only in delays in closing deals.”
Apple’s chief executive Tim Cook said the company would open its first physical stores in India in 2021 and a online outlet later this year.
Apple had to seek special approval from the Indian government to open a store without a local partner.
The announcement was made at the company’s annual shareholders’ meeting.
Investors at the meeting also voted on a proposal that the firm should alter how it responds when governments ask it to remove apps from its marketplace.
Though the measure wasn’t approved, it failed by a slimmer margin then similar proposals in the past.
Apple’s move into India, the second largest smartphone market in the world, has been expected for some time, but the announcement of a date was new.
In 2018 India changed the laws that prevented foreign brands from opening single-brand stores in the country. Nevertheless Mr Cook said India had wanted Apple to open its store with a local partner.
Mr Cook told investors he didn’t think Apple would be a “good partner”.
“We like to do things our way,” he said.
Apple sells its products through third-party stores in India at the moment. But its sales lag competitors Samsung and Huawei.
With demand for Apple products slowing in China – even before the outbreak of Coronavirus – the firm is hoping it can spur growth in other developing markets like India.
Human rights vote
Apple investors also voted on a proposal meant to change the way the company handles requests by governments to remove applications from its App Store.
The proposal would have forced Apple to publicly commit to respecting “freedom of expression as a human right.”
The measure was tied to Apple’s removal of apps by the Chinese government, including an app that allowed protestors in Hong Kong get around China’s internet restrictions.
Supporters of the measure said Apple was complicit in Chinese human right abuses when it gave in to requests to remove these types of apps.
The measure was voted down but received nearly 40% of the vote.
Similar measures have been proposed in the past but have never received as much support.
Two shareholder advisory groups, Glass Lewis and Institutional Shareholder Services recommended voting in favour of the proposal.
Coronavirus concerns
Mr Cook also addressed the impact that coronavirus is having on Apple’s operations.
The tech giant warned investors early this month that it expected to miss its quarterly earnings estimate because of the outbreak. Many of the Chinese plants that make components for Apple products – like its iPhones and MacBook laptops- have been closed or operating at with limited capacity to reduce the spread of the disease.
The shareholders meeting also allowed investors to ask Apple executives questions about the company’s other development.
One investor asked why the company had not bought the rights to the upcoming reunion of the TV show Friends – which is slated for HBO Max.
Mr Cook said a spinoff would not be keeping with the brand of Apple TV Plus – which is focused on original content.
CHINDIA ALERT: You'll be living in their world, very soon 