Archive for ‘China alert’

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26/04/2012

* China Invests in Germany Amid Uncertainty

New York Times: “As Prime Minister Wen Jiabao of China tours Europe this week, it is no accident that Germany occupies a special place on his itinerary. After all, Germany is the one European Union country that has a trade surplus with China. And it has also been a focus of Chinese investment in Europe — so much so that analysts say some Germans are growing wary as Chinese businesses have been snapping up German engineering companies.

Mr. Wen, making his sixth visit in eight years, and the German chancellor, Angela Merkel, on Sunday opened the annual trade fair in Hanover, billed as the world’s leading showcase for industrial technology. They plan to witness the signing of an economic agreement at the Volkswagen headquarters, in Wolfsburg, on Monday. According to German media reports, the deal will include the opening of a new car plant in the far western Chinese region of Xinjiang.

Mr. Wen’s agenda, as with a follow-up trip planned by his likely successor, Vice Prime Minister Li Keqiang, seems aimed at presenting an aura of business as usual, even as trade tensions flare with the West and the Communist Party at home is embroiled in its biggest scandal in years, involving the deposed Politburo member Bo Xilai.”

via China Invests in Germany Amid Uncertainty – NYTimes.com.

Two birds with one stone: Collaboration with Germany & VW; and opening up a major auto plant in Xinjiang, one of the two provinces with significant unrest (the other, of course, is Tibet).

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26/04/2012

* For Apple, China Is Middle Kingdom

WSJ: “Not long ago, Asia Pacific was all but a footnote in the financial statements of technology juggernaut Apple Inc. But no more.

Image representing Apple as depicted in CrunchBase

Apple’s sales in the fast-growing region, fueled largely by China, more than doubled and represented 26% of its $39.2 billion in sales for the first three months of the year. IPhone sales in mainland China increased fivefold from the year-ago period and more than doubled in Japan.

Asia Pacific came within striking distance of becoming Apple’s largest revenue source in the fiscal second quarter. The company took in $10.2 billion in sales for the region for the first three months of the year, compared with $13.2 billion for the Americas, long its biggest source of revenue. Apple breaks out Asia Pacific separately from Japan, where sales nearly doubled to $2.6 billion.

Its a dramatic transformation considering Apple didn’t include Asia Pacific in its geographic breakdown until it reported results for the three months ended December 2009. That’s the quarter when Apple released the iPhone in China, more than two years after the U.S. debut. Apple has also yet to ship its new iPad in mainland China, selling 11.8 million of the tablets globally in the latest quarter.”

via For Apple, China Is Middle Kingdom – WSJ.com.

So China is rapidly becoming not only the producer but also consumer of high-tech electronic consumer products!

Posted in Affluence, China alert, Consumer, Economics, Technology | 1 Comment »

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25/04/2012

* Four men move a mountain for their offspring

Snowy mountains (probably 'white-horse mountai...

Snowy mountains Yunnan, China (Photo credit: Wikipedia)

China Daily: “For years the people of Zhongzhai village, Wenshan, Yunnan province, have been blocked from the outside world by a mountain. But after six years, four men have finally carved a five kilometer stretch out of the remote mountainous area.

The four families endured years of hardship, one man even partly losing the function of his hand, spending all their saving on clearing the hilly road and building an enormous debt of 80,000 yuan $11,895 despite each family only earning 500 yuan a year. But the group – who have been dubbed the “Modern Yu Gong” say it has all be worth it, “As long as our children get a way to go to school,” said one.

Yu Gong was an old man in Chinese fable who was determined to dig away two big mountains in front of his family home, which caused his family great inconvenience. His famous words read: “I will soon be dead, but I have children, and when my children are dead, there are still my grandchildren. My family will grow and grow and the mountain will get smaller and smaller. With such determination, surely it is possible to move the mountains!”

via Four men move a mountain for their offspring[1]|chinadaily.com.cn.

It so happens that Yu Gong Yi Shan – Foolish Old Man Moves Mountains was one of Chairman Mao’s favourite fables. Fortunately, his successor Deng Xiaoping and his successors followed through with this endeavour – http://www.imdb.com/title/tt1312185/plotsummary

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23/04/2012

* GM to Add 600 China Dealerships

WSJ: “General Motors Co. plans to add 600 dealerships in China this year, about a 20% increase, as the auto maker looks to bolster its presence here amid growing competition and an economic-growth slowdown.Chief Executive Dan Akerson on Monday outlined steps GM is taking to boost sales and market share in China, where it is the largest foreign auto maker.

The addition of 600 dealerships would bring the companys dealer network in China to 3,500 stores, up from 2,900 at the end of 2011.  At that size, Chinas dealers would begin to rival the companys U.S. network of 4,400.

GM is adding new models and factory capacity and expanding a technology center near its China headquarters in Shanghai, which will soon be its second-largest global development center. The largest is in Warren, Mich., near its Detroit headquarters. Like GM, many of the worlds major auto makers are expanding in China, concentrating on a market expected to grow to more than 30 million vehicle sales by the end of the decade from 18.5 million last year.”

via GM to Add 600 China Dealerships – WSJ.com.

If you are looking for a business opportunity in China, go for a tyre franchise. The vast majority of Chinese cars have yet to have their first set of tyres replaced!

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21/04/2012

* China’s Premier in Iceland, eyes on Arctic riches

extract from Reuters: “China signed accords on energy cooperation and the Arctic in Iceland on Friday as Premier Wen Jiabao started a tour of northern Europe that will focus on Chinese investment in a continent eager for funds and to trade with the rising world power.

Centrepiece of the trip will be a visit to Germany, where Wen and Chancellor Angela Merkel will on Sunday and Monday burnish industrial ties that have done much for both economies. That the prime minister of the world’s most populous nation should stop first, however, on a remote island of just 320,000 has raised hopes for an injection of Chinese cash into an economy ravaged by the bursting of a financial bubble in 2008 – but also suspicion of Beijing’s hunger for natural resources. …

Over two days, Wen, who trained as a geologist, will see volcanic geysers and electricity plants where Iceland captures geothermal energy. Friday’s meetings between Wen and Icelandic Prime Minister Johanna Sigurdardottir resulted in agreements to cooperate in the Arctic region, in marine and polar science and in geothermal energy. Orka Energy Ltd – an Icelandic firm focused on producing geothermal energy – and China’s Sinopec Group also signed a deal to develop geothermal energy in China for heating houses and the production of electricity, though no figures were provided. …

But by starting with a full-scale visit to Iceland, Wen has fuelled European concern that China might be trying to exploit the country’s economic troubles to gain a strategic foothold in the North Atlantic and Arctic region. The area has big reserves of oil, gas, gold, diamonds, zinc and iron. And with global warming melting polar ice, it may offer world powers new shipping routes – and naval interests – for the trade between Asia, Europe and America’s east coast. “When it comes to the Arctic, we always have China on our mind,” said one European diplomat from the Nordic region, who spoke to Reuters this week on condition of anonymity.

But conspiracy theories over why such an Asian giant would be interested in such a small nation abound. “Given Chinas investment pattern around the globe, people have asked questions. Why are doing this? Is there some ulterior motive?” said Embla Eir Oddsdottir at the Stefansson Arctic Institute. “For next decade they are going to be battling some sort of suspicion as to their motive, because people have a tendency to link them to some type of regime.” …”

via UPDATE 3-Chinas Wen in Iceland, eyes on Arctic riches | Reuters.

Why the suspicion and conspiracy theory?  China has been wooing all sorts of countries in the recent past – see posts:

https://chindia-alert.org/2012/04/16/us-alert-as-chinas-cash-buys-inroads-in-caribbean/

https://chindia-alert.org/2012/12/31/question-who-did-china-woo-in-2012/

https://chindia-alert.org/political-factors/geopolitics-chinese/

It is part of China’s geopolitical plan to be friends wioth everyone – without prejudice to religion, race, politics, etc!

Posted in China alert, Climate change, Diplomacy, Economics, GeoPolitics, Good news, Natural resources, Transport | 3 Comments »

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19/04/2012

* HSBC issue of renminbi bonds in London

China Daily: “George Osborne, British chancellor of the exchequer, announced an initiative on Wednesday that reaffirms his support of London becoming an offshore yuan center. That came as the banking and financial services company HSBC Holdings Plc introduced the first yuan-denominated bond to be offered in London.

Meanwhile, the City of London Corp, which governs an area in central London, published a report showing that 109 billion yuan $17.3 billion worth of customer and interbank yuan deposits were held in the city at the end of December. “This is a significant moment,” Osborne said as he introduced a policy named “London as a center for offshore renminbi business”. “This builds on the progress London has already made toward becoming the Western hub for renminbi. “Today’s event emphasizes that we are not prepared to let anyone steal a march on us in terms of new products and new markets. We are the natural home in the West for those who want to invest in China’s economic success story.

“Osbornes comments came after HSBC announced the introduction of a 3-year yuan bond. HSBC’s term sheet for the bond issuance implied it was worth at least 500 million yuan, Reuters has reported. The proposed issuance comes amid reforms Beijing has made to advance its plans to make the yuan an international currency. London is working to make itself into a center for offshore yuan trade following an agreement that was reached between Britain and China last year.

via HSBC issue of renminbi bonds in London real|Europe|chinadaily.com.cn.

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19/04/2012

* Agni-V launch: India demonstrates ICBM capability; China reacts cautiously, says India not rival

Times of India: “Reacting cautiously to India’s test of Agni-V missile, China on Thursday said the two countries are not rivals and enjoy “sound” relations though the sources in the Chinese establishment feel that the launch can give rise to another round of arms race in the region.

“China has taken note of reports on India’s missile launch. The two countries have sound relationship. “During the recently held BRICS meeting in Delhi the leadership had consensus to take the relationship further and to push forward bilateral strategic cooperative partnership,” Chinese foreign ministry spokesman Liu Weimin told a media briefing in Beijing when asked about the launch.

In Delhi, the diplomatic sources in the Chinese embassy said the “Agni-V launch can give rise to another round of arms race in this part of the world. “They were also critical of the media commentary on the successful launch of the nuclear capable 5000 km-range Agni-V missile, saying it sounded provocative. Asked whether China was concerned as most of the country would come under the Agnis range, Liu said in Beijing that “both the countries are emerging powers. We are not rivals. We are cooperative partners. We should cherish the hard earned momentum of cooperation.”

via Agni-V launch: India demonstrates ICBM capability; China reacts cautiously, says India not rival – The Times of India.

Posted in China alert, Chindia Alert, Defence, Diplomacy, GeoPolitics, India alert, Military | 1 Comment »

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17/04/2012

* Irish horses to race in China as Magnier wins €38m stud deal

Independent.ie: “HUNDREDS of Irish horses are set to race regularly in China after bloodstock giant Coolmore announced a ground-breaking deal. The agreement is part of a plan that will see Ireland help set up a horse racing industry in Tianjin, China’s fourth largest city.

Horse racing in Sligo, Ireland

Horse racing in Sligo, Ireland (Photo credit: Wikipedia)

Top Irish stud farm Coolmore – owned by racing tycoon John Magnier and based in Fethard, Co Tipperary – will help China set up a similar operation. The planned equine centre will be the first of its kind in the country.

It is due to open for business next year. The contract is worth more than €38.5m to Ireland over three years.

via Irish horses to race in China as Magnier wins €38m stud deal – Irish, Business – Independent.ie.

A sure sign that China is liberalising. As far as we know gambling is illegal in China. Though, behind closed doors …  

But now we are going to see real horse racing in China. Or will the races be run without any betting?!

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16/04/2012

* US Alert as China’s Cash Buys Inroads in Caribbean

New York Times: “A brand new $35 million stadium opened here in the Bahamas a few weeks ago, a gift from the Chinese government. The tiny island nation of Dominica has received a grammar school, a renovated hospital and a sports stadium, also courtesy of the Chinese. Antigua and Barbuda got a power plant and a cricket stadium, and a new school is on its way. The prime minister of Trinidad and Tobago can thank Chinese contractors for the craftsmanship in her official residence.

China’s economic might has rolled up to America’s doorstep in the Caribbean, with a flurry of loans from state banks, investments by companies and outright gifts from the government in the form of new stadiums, roads, official buildings, ports and resorts in a region where the United States has long been a prime benefactor.

The Chinese have flexed their economic prowess in nearly every corner of the world. But planting a flag so close to the United States has generated intense vetting — and some raised eyebrows — among diplomats, economists and investors. “When you’ve got a new player in the hemisphere all of a sudden, it’s obviously something talked about at the highest level of governments,” said Kevin P. Gallagher, a Boston University professor who is an author of a recent report on Chinese financing, “The New Banks in Town.”

Most analysts do not see a security threat, noting that the Chinese are not building bases or forging any military ties that could invoke fears of another Cuban missile crisis. But they do see an emerging superpower securing economic inroads and political support from a bloc of developing countries with anemic budgets that once counted almost exclusively on the United States, Canada and Europe.

China announced late last year that it would lend $6.3 billion to Caribbean governments, adding considerably to the hundreds of millions of dollars in loans, grants and other forms of economic assistance it has already channeled there in the past decade. Unlike in Africa, South America and other parts of the world where China’s forays are largely driven by a search for commodities, its presence in the Caribbean derives mainly from long-term economic ventures, like tourism and loans, and potential new allies that are inexpensive to win over, analysts say.

American diplomatic cables released through WikiLeaks and published in the British newspaper The Guardian quoted diplomats as being increasingly worried about the Chinese presence here “less than 190 miles from the United States” and speculating on its purpose. One theory, according to a 2003 cable, suggested that China was lining up allies as “a strategic move” for the eventual end of the Castro era in Cuba, with which it has strong relations.

via U.S. Alert as China’s Cash Buys Inroads in Caribbean – NYTimes.com.

While the US is trying to encroach on China’s backyard with military alliances with Australia and other South Pacific nations, China is encroaching the US backyard too, but with stadiums, roads and other civilian projects.

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15/04/2012

* US says China making progress on currency, urges more

Reuters: “A senior White House aide said on Saturday that China had made some progress toward easing restrictions on its currency but stressed the United States wanted to see more actions taken.

At a briefing with reporters in Colombia, where President Barack Obama is attending a summit with Latin American leaders, White House adviser Ben Rhodes said the Obama administration was closely reviewing Beijing’s announcement that it was doubling the size of its yuan’s trading band against the dollar. “It comes in the continuum of us wanting to see the Chinese take more of these steps to see their currency appreciate to come in line with market value,” Rhodes said. “They’ve made some progress. We’d like to see more movement.”

“The Peoples Bank of China said on Saturday it would allow the yuan to rise or fall 1 percent from a mid-point every day, effective Monday, compared to its previous 0.5 percent limit. Currency experts said the move reflected a belief in Beijing that the currency is near its equilibrium level and that China’s economy, although cooling, is sturdy enough to handle long-promised structural reforms.

China’s currency is a sensitive topic in the United States, where many business leaders believe an undervalued yuan gives Chinese exports an unfair price advantage on global markets.”

via U.S. says China making progress on currency, urges more | Reuters.

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