Archive for ‘China alert’

06/06/2014

China’s services sector grows apace, mirroring rebound in manufacturing | South China Morning Post

China’s services sector grew at its fastest pace in six months last month as new orders rebounded, an official survey showed, reinforcing hopes that the economy may be steadying after a tumultuous few months.

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The official non-manufacturing purchasing managers index (PMI) climbed to 55.5 from April’s 54.8, the National Bureau of Statistics said. That is well above the 50-point level that separates an expansion from a contraction in activity.

In a sign of buoyancy in the sector, new orders rebounded to an eight-month high of 52.7 from April’s 50.8. Business expectations also held their ground at a solid 60.7, compared with April’s 61.5.

The pick-up in the services PMI echoes a rebound in the factory sector, which turned in its best performance in four months last month as export orders improved, although activity still contracted, a private survey showed yesterday.

The final reading of the HSBC/Markit PMI for May rose to 49.4 from 48.1 in April, although lower than a preliminary “flash” reading of 49.7.

The final PMI was weaker than the flash reading because of an upward revision of the inventory of finished goods, HSBC said.

via China’s services sector grows apace, mirroring rebound in manufacturing | South China Morning Post.

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06/06/2014

China’s Xiaomi, the World’s Fastest-Growing Phone Maker – Businessweek

On May 15, behind the curving, imperial facade of the China National Convention Center in Beijing, a veteran technology executive named Lei Jun walks onstage before a thousand raucous fans and members of the media. It’s a familiar scene everywhere now, and like many technology chiefs, Lei peppers his talk by ticking off some of the recent successes enjoyed by his company, the mobile device maker Xiaomi. Sales have been higher than expected; more than 50 million people use the company’s MIUI operating system. Then he gets to the new products, which today are a smart TV that can be controlled with an app and an Android-powered tablet computer, called Mi Pad, that comes in five colors and is priced to undercut the iPad mini. “I hope through our endeavor we can make Apple (AAPL) feel some pressure,” Lei says.

Lei established a “10-to-10” schedule at the company

The crowd reacts to each product revelation as if it’s a World Cup goal. The hardware is indeed slick—the TV has the latest high-def specs, and the tablets are the first devices to use the newest processor from chipmaker Nvidia (NVDA). But Lei is delivering another, more potent message. He’s effectively giving an hourlong demonstration of an historic moment: China, for the first time, has its own technology brand that consumers truly lust after.

Following the event, the fans mill around in the Beijing smog, taking selfies with their MiPhones, waving Xiaomi signs, trading impressions of the new gadgets. Some made 15-hour trips to be here. Zhi Yuan, 28, who took a seven-hour train ride from Shandong province, proudly shows off his Xiaomi phone, the economical Redmi model. He likes it because it’s easy to use. Lei, he says, “can understand our wishes. He knows what Xiaomi fans want.”

via China’s Xiaomi, the World’s Fastest-Growing Phone Maker – Businessweek.

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06/06/2014

In China, Cruise Lines Hope to Woo Millions of First-Time Guests – Businessweek

Cruise lines are betting that the growing number of middle class consumers in China are keen to sample chocolate buffets and stroll the Lido deck. And that’s leading to an influx of ships being sent to sail year-round from mainland China.

The Carnival Sun Princess

China is expected to be the world’s second-largest cruise market (after the U.S.) by 2017, with growth rates far higher than in North America and Europe, the two regions where the industry has historically collected most of its profits. Carnival (CCL), the industry’s largest player, with 10 brands and more than 100 ships, plans to base four ships in mainland China next year, while also boosting its year-round fleet in Australia. The Asian Cruise Association estimated in a 2013 report that area demand will nearly triple to 3.8 million annual cruisers in 2020, with 1.6 million from China.

“The reality is that the [Asian] market’s huge, and it’s going to be very significant over the next 10 to 20 years,” Carnival Chief Executive Officer Arnold Donald says. “We have never been more committed to China as a market of great strategic importance for our company.”

via In China, Cruise Lines Hope to Woo Millions of First-Time Guests – Businessweek.

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06/06/2014

Creativity advances as patent filings rise – China – Chinadaily.com.cn

An increase in overseas patent applications from Chinese applicants is a positive sign for China’s innovation and economy, World Intellectual Property Organization Chief Economist Carsten Fink said.

WIPO emblem.

WIPO emblem. (Photo credit: Wikipedia)

According to the WIPO, China’s patent office became the world’s largest intellectual property office in 2012 in terms of the number of its patent applications, but Chinese patent applicants did not file their patents as frequently abroad in other countries as did those from the United States, Europe and Japan.

Fink said that a changing picture was observed as patent filings abroad by Chinese companies and research institutions have been growing rapidly.

The WIPO found in its new study that the growth of Chinese patent filings abroad increased significantly after 2000, with a five-year average annual growth rate of 40 percent between 2000 and 2005, and 23 percent since 2005.

“That is important because on the one hand, it signals that Chinese companies really operate on the world technology frontier, and (on the other hand) it also suggests that indeed they are pushing the world’s technology frontier. That is a good sign for China’s innovation system,” Fink said.

Fink stressed that overseas patent filings weighed heavily for China’s economy and could be a positive boost.

“That will help Chinese companies to transfer their business models from the past one that relied on low wages to another one that will rely more and more on new technologies, new products and new ideas,” he said.

via Creativity advances as patent filings rise – China – Chinadaily.com.cn.

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25/05/2014

China and Russia: Best frenemies | The Economist

ON MAY 21st, after a nail-biting session of late-night brinkmanship, China and Russia signed an enormous gas deal worth, at a guess, around $400 billion. Their agreement calls for Russia’s government-controlled Gazprom to supply state-owned China National Petroleum Corporation with up to 38 billion cubic metres of gas a year between 2018 and 2048. The deal capped a two-day visit to China by the Russian president, Vladimir Putin, that included a regional-security summit and joint military exercises off the Chinese coast.

Mr Putin called the deal the biggest in the history of Russia’s gas industry. But it counts, too, for the geopolitics that underpin it. That an agreement should come now, after a decade of haggling, is no accident. The deal will help the Kremlin reduce Russia’s reliance on gas exports to Europe. It is proof that Mr Putin has allies when he seeks to blunt Western sanctions over Ukraine. Both Russia and China want to assert themselves as regional powers. Both have increasingly strained relations with America, which they accuse of holding them back. Just over 40 years ago Richard Nixon and Henry Kissinger persuaded China to turn against the Soviet Union and ally with America. Does today’s collaboration between Russia and China amount to a renewal of the alliance against America?

That is surely the impression Mr Putin wants to create. Ahead of his visit he gushed to Chinese media, saying their country was “Russia’s reliable friend”. Co-operation, he said, is at its “highest level in all its centuries-long history”. From the Chinese side, Xi Jinping chose Russia as the first country he visited on becoming president in 2013.

Commercial ties are growing. China is Russia’s largest single trading partner, with bilateral flows of $90 billion in 2013. Even before the gas deal, the two sides hoped to double that by 2020. If Western banks become more reluctant to extend new loans, financing from China could help Russia fill the gap. China badly needs the natural resources which Russia has in abundance. The gas deal will ease China’s concerns that most of its fuel supplies come through the strategic chokepoint of the Strait of Malacca, and will also enable China to move away from burning so much of the coal that pollutes the air in Chinese cities.

The two have also made common cause in geopolitics. China abstained from a UN security council vote in March that would have rejected a referendum that Russia backed in Crimea before it annexed it. China has also joined Russia in vetoing UN attempts to sanction the regime of Bashar Assad fighting a civil war in Syria. The two have taken similar stances over issues such as Iran’s nuclear programme.

China and Russia share a strong sense of their own historical greatness, now thwarted, as they see it, by American bullying. Both want the freedom to do as they please in their own back yards. Russia’s annexation of Crimea and its manoeuvring in eastern Ukraine have vexed America and Europe and left Mr Putin with even fewer friends than before. China’s push into the East and South China Seas is causing similar concerns in Asia, as smaller neighbours worry about its expansionism.

But the West should not panic. Despite all this, Russia and China will struggle to overcome some fundamental differences. Start with the evidence of the gas deal itself: the fact that it took ten years to do, and that the deal was announced at the last minute, suggests how hard it was to reach agreement. The Chinese were rumoured to have driven a hard bargain, knowing that Mr Putin was desperate to have something to show from his trip.

More a grimace than a smile

In this deal, as elsewhere in the relationship, China has the upper hand. Other supplies of gas are coming online in Australia and Central Asia. And whereas China’s global power is growing, Russia is in decline—corroded by corruption and unable to diversify its economy away from natural resources. The Chinese government will expect the Kremlin to recognise this historic shift—a recipe for Chinese impatience and Russian resentment. Although the two countries are united against America, they also need it for its market and as a stabilising influence. And they are tussling for influence in Central Asia. Their vast common border is a constant source of mistrust—the Russian side sparsely populated and stuffed with commodities, the Chinese side full of people. That is why many of Russia’s tactical nuclear weapons are pointed at China (see article). In the long run, Russia and China are just as likely to fall out as to form a firm alliance. That is an even more alarming prospect.

via China and Russia: Best frenemies | The Economist.

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25/05/2014

China continues advance into South China Sea; military base to be built on artificial island

24/05/2014

China’s 430 Million Families Shrink and Age – Businessweek

China’s families keep shrinking in size, says a new report by the National Health and Family Planning Commission, released earlier this month.

Retired Chinese women practice Tai Chi at a park in Haikou city, south China Hainan province on March 25

It’s well known that the One-Child Policy played a key role in radically reducing the size of China’s households, which have shrunk from an average of 5.3 members in the 1950s to just 3.02 in 2012. (The numbers were 3.96 and 3.10 in 1990 and 2010, respectively.)

But that longtime policy restriction has not been the main driver in recent years, according to the China Family Development Report 2014. Instead, internal migration and changing social norms have been bigger contributors to the phenomenon in recent years. (That also means last year’s loosening of the family planning regulation isn’t going to reverse the smaller household phenomenon.)

By 2010, China had 160 million households made up of either one or two people. That’s 40 percent of the total number of households, a proportion that rose from 25 percent of the total in 2000. Over the same decade, the number of single person households doubled, and those of two people went up by 68 percent, according to the commission.

So what’s driving the surge in little families? In the cities it has a lot to do with young people waiting longer to get married. “A growing number of well-educated people now decide to marry at a later age because of their careers,” the China Daily reported, citing the survey. “Changing attitudes toward marriage also prompted many to stay single.”

As China’s population rapidly ages, more and more families are elderly. China now has 88 million families made up of people over 65, about one-fifth of the total, the report says. That reverses the longtime Chinese custom of older parents living with their children. With some 300 million rural migrant workers living far from their hometowns, the problem is particularly acute in the countryside—that is contributing to a growing problem of poverty among the elderly.

via China’s 430 Million Families Shrink and Age – Businessweek.

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24/05/2014

‘Four Dishes, One Soup’ Not Enough For Sino-Russian Gas Deal Celebration – China Real Time Report – WSJ

Say you’re the leader of the world’s No. 2 economy. You just signed a massive energy deal with your Russian counterpart that has major political and economic implications – and that, under international protocol, calls for a big-time state wingding. At the same time, you’re pushing a government austerity platform to convince your people that their leaders aren’t corrupt fat cats living large off the people.

What to do?

That’s the dilemma Chinese President Xi Jinping faced this week after he reached a 30-year, potentially $400 billion gas supply deal with Vladimir Putin. His answer, it seems, was to split the difference. The state dinner that followed the high-profile deal-signing had enough fancy dishes, tipple and desserts to fail the sort of austerity test Mr. Xi might apply to, say, a banquet thrown by county-level officials in a tier-three burg.

Still, experts said, the wines steered more to the local than to the Bordeaux, and the whole affair fell short of what you might get at a fancy wedding.

After 10 years of difficult negotiation, China and Russia signed a landmark natural-gas contract on Wednesday. The night before, Chinese President Xi Jinping and his wife Peng Liyuan hosted a dinner in Shanghai welcoming more than 300 guests from 46 countries, including Russian President Vladimir Putin.

What dishes were served during the 90-minute dinner?

The dinner was definitely more elaborate than the “four dishes and one soup” set promoted by Xi Jinping as a form of domestic cost-cutting. There were four plates of desserts alone—implying that the anti-corruption rules don’t always apply when it comes to state events, as China doesn’t want to lose face on diplomatic occasions. The six appetizers included mashed green beans, spicy cabbage, sliced whitebait, a pea dish and bamboo shoots with green onions. The five dishes and one soup served included shrimp balls, fried and braised beef, macadamia nuts with greens, flatfish with bean curd sauce, luffa with green beans and mushroom with fish maw. Other dishes included moulded pudding, vegetable dumplings and plates of fruit.

This dinner was intended to be a creative combination of Chinese and western-style cooking, one that highlighted fresh ingredients from southern regions of the Yangtze River. The executive chef behind it, Su Dexing, was also the chief cook for the state banquet during the APEC meeting in 2001, according to Shanghai International Convention Center staff.

As at many state events, China’s ubiquitous luxury liquor Maotai was also served, along with a dry red and dry white wine produced by Cofco Wines & Spirits. According to prices advertised on e-commerce websites, such red and white wine would likely cost between 400-600 yuan ($64-96) per bottle and 300 yuan per bottle, respectively.

Although abundant, the dinner was still simple compared to other options available in Shanghai, where wedding banquets can easily cost a minimum of 500 yuan per person, excluding liquor. In 5-star hotels, such meals might cost more than double that amount.

via ‘Four Dishes, One Soup’ Not Enough For Sino-Russian Gas Deal Celebration – China Real Time Report – WSJ.

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24/05/2014

India hits U.S., China with solar imports anti-dumping duties | Reuters

India will impose anti-dumping duties on solar panels imported from the United States, China, Taiwan and Malaysia to protect domestic solar manufacturers, according to a government statement seen by Reuters on Friday.

A man cleans panels installed at a solar plant at Meerwada village of Guna district in Madhya Pradesh June 18, 2012. REUTERS/Adnan Abidi/Files

The order, almost certain to anger India’s trading partners, sets duties of between 11 and 81 U.S. cents per watt and comes after a investigation which started in 2011. The ruling by a quasi-judicial body has to be published by the Finance Ministry before it takes effect.

The decision adds to India’s growing trade disputes just before Narendra Modi takes office as prime minister on Monday.

“Imposition of anti-dumping measures would remove the unfair advantages gained by dumping practices,” said India’s Anti-Dumping Authority in its order released on Thursday.

Local manufacturers have long complained that U.S., Chinese and Malaysian companies enjoy state subsidies and are selling their products at artificially low prices to capture the Indian market.

India also believes that anti-dumping duties imposed on Chinese solar producers by the European Union and the United States have further driven down the price of Chinese solar products, to the detriment of Indian suppliers.

India aims to raise its solar power capacity to 20,000 MW by 2022 from 1,700 MW currently. It imported solar products worth nearly 60 billion rupees ($1.03 billion) last year, according to an industry estimate. Domestic manufacturers got less than 2 percent of that business.

“India’s solar manufacturing is now bound to revive and further increase with both local and overseas participation ensuring a robust supply chain,” said H.R. Gupta of the Indian Solar Manufacturers’ Association.

Under the new duties, importers will have to bear additional costs of between 5 percent and 110 percent while importing solar cells and panels from the United States, Malaysia and China.

via India hits U.S., China with solar imports anti-dumping duties | Reuters.

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23/05/2014

Wal-Mart to open 110 stores in China as part of $100 million expansion bringing 19,000 jobs to world’s second-largest economy | Mail Online

Wal-Mart, the world’s largest retailer, has announced plans to accelerate its expansion into China by adding as many as 110 stores over the next three years, resulting in an almost $100 million investment.

Re-adjustment: Wal-Mart Stores Inc is changing its approach, closing some big-box stores that never quite caught on with locals

The Bentonville, Arkansas-based firm wants to open the new stores in the world’s second-largest economy at the same time as closing 30 under-performing outlets over the next 18 months.

China is key to Wal-Mart’s international ambitions but it has stumbled in a market where consumers value safe and authentic food over the low prices for which the retailer is known.

The U.S. retailer, which operates about 400 units in China, said last October that it would open up to 110 facilities in the country between 2014 and 2016 and was looking to close 15-30 others over the next 18 months as part of a rationalization process in the country.

Its local rival, Sun Art Retail Group Ltd, said in March it would continue to maintain steady new store expansion after China’s top hypermarket operator posted a 15.2 percent rise in 2013 net profit with an expanding store network helping it shrug off an economic slowdown.

‘China presents one of the biggest opportunities for us around the world to grow our stores and clubs, so its really important,’ Doug McMillon, president of Wal-Mart’s international business, said today in an interview with Bloomberg Television.

Wal-Mart already has 400 outlets across China and Wal-Mart is looking to develop a larger presence in the country’s largest center’s while building bigger stores in third- and fourth-tier cities.

via Wal-Mart to open 110 stores in China as part of $100 million expansion bringing 19,000 jobs to world’s second-largest economy | Mail Online.

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