China alert | CHINDIA ALERT: You'll be living in their world, very soon

27/03/2012

* Major Chinese industrial companies profits drop 5.2 pct

Xinhua: “Profits for Chinese chemical producers, automakers and other major industrial companies fell 5.2 percent in the first two months of 2012 from the same period a year earlier, China’s statistical authority said Tuesday.

Total profits for the largest industrial companies, or those with annual revenues above 20 million yuan 3.17 million U.S. dollars, stood at 606 billion yuan during the first two months, the National Bureau of Statistics said in a statement on its website.The data highlighted the impact of the sluggish global economic recovery on Chinese companies, especially state-owned enterprises, as exports have slowed due to waning external demand.

The data also represents a significant drop from a 34.3-percent increase registered in the first two months of 2011.”

via Major Chinese industrial companies profits drop 5.2 pct – Xinhua | English.news.cn.

Is China’s economy heading for a hard landing? If so, it will exacerbate the recession in developed nations.

Posted in China alert, Economics, Recession | Leave a Comment »

Tags: China, Chindia, Chindiapedia, Government-owned corporation

23/03/2012

* China arrests 300 over contract frauds

Xinhua: “Chinese police in the cities of Hefei, Wuhan and Chengdu have arrested more than 300 suspects for a number of contract fraud cases involving over 10 million yuan (1.59 million U.S. dollars), the Ministry of Public Security announced on

Friday. Police in the three cities busted 13 groups and over 40 companies suspected of contract fraud crimes, and closed 90 illegal sites for such crimes in the past few weeks, the ministry said in a statement.

The actions are part a campaign that police launched at the start of March to crack down on economic crime. Contract fraud involves intentional misrepresentation to deceive the victims into entering into contracts. In most of the cases, the suspects persuaded the victims to become their franchised outlets or producing contractors, took the victim’s money as “equipment fees” or “training fees” and refused to repurchase the products as they previously promised.”

via China arrests 300 over contract frauds – Xinhua | English.news.cn.

The fight against corruption carries on.

Posted in China alert, corruption | 1 Comment »

Tags: China, Chindia, Chindiapedia, Fraud, fraud crimes, Law

22/03/2012

* Fair trade? Diageo to buy top ‘baijiu’ producer; Jaguar Land Rover agrees jv with Chery in China

FT.com: “When it comes to selling things that take years to mature – like premium cognacs or Scotch whiskies – it pays to take the long view. Diageo is taking a very long view on the future of baijiu, otherwise known as Chinese firewater. As a purveyor of Scottish firewater – also known as Johnnie Walker – Paul Walsh, Diageo’s CEO, says he can foresee a day when Chinese white spirit will have as broad a global footprint as Scotch whisky.

To prepare for that day, Diageo said on Tuesday it would shortly launch a mandatory tender offer to spend as much as $1bn buying all remaining shares of Sichuan Shuijingfang, the baijiu company it took control of last year.”

via Diageo: the long view on baijiu | beyondbrics | News and views on emerging markets from the Financial Times – FT.com.

Chery Automobile (Photo credit: Wikipedia)

BBC News: “Jaguar Land Rover JLR and Chery Automobile have agreed a joint venture that should pave the way for production of Jaguar and Land Rover cars in China.”

via BBC News – Jaguar Land Rover agrees joint venture with Chery in China.

Posted in China alert, Economics | Leave a Comment »

Tags: Chery Automobile, China, Chindia, Chindiapedia, Diageo, global brands, Jaguar Land Rover, Johnnie Walker, Land Rover, land rover cars

21/03/2012

* US exempts 11 states from Iran sanctions; China, India excluded

Reuters: “The United States exempted Japan and 10 EU nations from financial sanctions because they have significantly cut purchases of Iranian oil, but left Iran’s top customers China and India exposed to the possibility of such steps.

The decision means banks in these countries have been given a six-month reprieve from the threat of being cut off from the U.S. financial system under new sanctions designed to pressure Iran over its nuclear program.

The list did not include China and India, Iran’s top two crude oil importers, nor U.S. allies South Korea and Turkey, which are among the top-10 consumers of Iranian oil.

Japan, China and India combined buy close to half of Iran’s crude exports of 2.6 million barrels a day, providing crucial foreign exchange for the OPEC member.”

via U.S. exempts 11 states from Iran sanctions; China, India exposed | Reuters.

Posted in China alert, Chindia Alert, Economics, India alert | Leave a Comment »

Tags: China, Chindia, Chindiapedia, European Union, financial sanctions, India, iran, iran sanctions, Japan, OPEC, South Korea, United States

20/03/2012

* Chinese fuel prices raised by 6.5-7%

China Daily: “China raised fuel prices for the second time this year, hiking gasoline and diesel by 6.5 percent to 7 percent effective on Tuesday, amid rising world crude oil prices and falling domestic inflation. Prices went up by 600 yuan $94.90 a metric ton, the biggest hike since June 2009. The average gasoline price went up 6.5 percent to 9,980 yuan a metric ton, while diesel prices rose 7 percent to 9,130 yuan a metric ton.Both prices are record highs. China, the worlds second-biggest oil user, raised fuel prices for the first time this year by 300 yuan a ton on Feb 8.”

via Fuel prices raised by 6.5-7%|Economy|chinadaily.com.cn.

Posted in China alert, Economics, Inflation | Leave a Comment »

Tags: cars, China, Chindia, Chindiapedia, crude oil prices, Fuel, Gasoline, Gasoline and diesel usage and pricing, Price of petroleum, transportation

19/03/2012

* India displaces China as world’s largest arms importer

Times of India: “India has become the worlds biggest importer of arms, displacing China by accounting for 10 per cent of global arms sales volumes. Over the past five years, Indias imports of major weapons increased by 38 per cent between 2007-11, a Swedish security think tank said with Asia topping other regions in arms imports.

The Stockholm International Peace Research Institute SIPRI in its new report said that India was closely followed by China and Pakistan whose weapons imports constituted 5 per cent each of global sales. Pakistan took delivery of “significant numbers of combat aircrafts during this period : 50 JF-17s from China and 30 F-16s from US,” SIPRI said. The Swedish think tank said China which had been world’s top arms importer in 2006-2007 has now dropped to fourth place, attributing this to improvements in the country’s arms industry and its rising arms exports.

SIPRI said China is now world’s sixth largest world exporter of weapons behind the US, Russia, Germany, France and UK.But “while the volume of Chinas arms export is increasing, this is largely a result of Pakistan importing more arms from China. “Beijing has not achieved a major breakthrough in any other significant market,” the report said. According to SIPRI estimates India is likely to spend more than USD 100 billion on weapons and systems in the next 15 years.”

via India displaces China as worlds largest arms importer – The Times of India.

Related articles

Arms sales: who are the world’s 100 top arms producers? (guardian.co.uk)
https://chindia-alert.org/political-factors/

Posted in China alert, Chindia Alert, Defence, GeoPolitics, India alert | Leave a Comment »

Tags: Arms industry, China, India, Pakistan, Russia, Stockholm International Peace Research Institute

15/03/2012

* Bo Xilai replaced by Zhang Dejiang as Chongqing Party chief

China Daily: “Zhang Dejiang has been appointed Party chief of Chongqing, replacing Bo Xilai, according to a decision of the Communist Party of China (CPC) Central Committee announced Thursday. Bo will no longer serve as secretary, standing committee member or member of the CPC Chongqing municipal committee.

The decision was announced by Li Yuanchao, head of the Organization Department of the CPC Central Committee, at a meeting of officials in Chongqing on Thursday. Li said the CPC Central Committee made the decision after discreet consideration and based on current circumstances and the overall situation.

Zhang delivered a speech at the meeting of Chongqing officials, according to xinhuanet.com.

Zhang, born in November 1946, is a native of Tai’an, Liaoning province. He became a member of the Political Bureau of the CPC Central Committee in 2002 and began serving as vice premier of the State Council, China’s Cabinet, from 2008. Zhang had previously served as Party chief in Jilin, Zhejiang and Guangdong provinces, respectively, between 1995 and 2007.

via Zhang Dejiang replaces Bo as Chongqing Party chief|Politics|chinadaily.com.cn.

Bo was seen to be a strong contenders for one of the seven places on the Standing Committee of the Political Bureau of the Communist Party (total 9 members), equivalent to the inner cabinet, when the incumbents will retire this autumn due to mandatory retirement age. He was extremely successful in bringing Chongqing on from a secondary inner city into a thriving first city (one of four) in China. However, his views were seen by many of his colleagues as veering back to the left in recent times. This demotion means that he is no longer a candidate for the SC of the Politburo.

Bo Xilai speaks on deputy scandal – BBC News (bbc.co.uk)
China Chongqing Party Chief Tries to Contain Political Scandal Fallout – Wall Street Journal (online.wsj.com)
https://chindia-alert.org/political-factors/

Posted in China alert, Politics | Leave a Comment »

Tags: Bo Xilai, Chongqing, Zhang Dejiang

14/03/2012

* Stephen Roach on the consumer opportunity in China

McKinsey: “Focusing on exports to the world’s second-largest economy will help the United States generate growth and jobs, says Morgan Stanley Asia’s former non-executive chairman.

A year ago, the National People’s Congress enacted China’s 12th five-year plan, which included three main building blocks: a greater focus on jobs, urbanization to boost wages, and financing a social safety net that encourages families to spend rather than save. Stephen Roach, a professor at Yale University and former nonexecutive chairman of Morgan Stanley Asia, says that this document’s implementation is marking a major shift in China’s model, away from exports and investment and toward internal, private consumption. Therein lies a huge opportunity for other nations to benefit from the emergence of the world’s largest consumer population.

China, currently the biggest and most rapidly growing US export market, is well on its way to “create a consumption dynamic that will outstrip the growth of any consumer market in the world,” Roach asserts—“and shame on us if we’re not a part of that.” In this video, Roach explains how China must turn to internal demand to drive economic development and prosperity and why improving the testy China–US bilateral relationship is so critical for the economic future of both countries. McKinsey Publishing’s Rik Kirkland conducted the interview at the World Economic Forum, in Davos, in January 2012.”

via Stephen Roach on the consumer opportunity in China – McKinsey Quarterly – Retail & Consumer Goods – Sectors & Regions.

Posted in China alert, Consumer, Economics | Leave a Comment »

Tags: Business, economy, Morgan Stanley, Stephen Roach, World Economic Forum

14/03/2012

* 40 years on: senior US diplomat recalls China trip as “single most dramatic, important event” in career

Extract from Xinhua: “For 74-year-old Winston Lord, former U.S. assistant secretary of state, his trip to China with former U.S.

President Richard Nixon 40 years ago was “the single most dramatic and most important event” in his decades-long career. …

Years of hostility between China and the United States dispersed after Nixon’s world-stunning visit to China on Feb. 21, 1972, allowing the most powerful country and most populous one in the world to join hands in carving out a new future.

Lord, then a top aide to U.S. National Security Adviser Henry Kissinger and the first U.S. official to visit China after 22 years of mutual hostility and isolation, was proud of first secret trip to China in 1971.

“We were flying secretively from Pakistan to Beijing on a Pakistani plane, and as the plane got close to the Chinese air space, border, I was in the front of the plane, and Dr. Kissinger was in the back of the plane, so as we went into Chinese territory, I was the first. I always told everyone, and Kissinger agrees, that I was the first American official to visit China in 22 years,” said a beaming Lord.”

via Senior U.S. diplomat recalls China trip as “single most dramatic, important event” in career – Xinhua | English.news.cn.

Just over 40 years ago, President Nixon visited China, started ‘ping pong’ diplomacy and giant panda diplomacy. The rest, dear friends, as they say, is history. Nixon may have been dishonoured for the Watergate affair. But history, hopefully, will remember him well for inviting China to rejoin the modern world.

Posted in China alert, Diplomacy, GeoPolitics, Politics | Leave a Comment »

Tags: Henry Kissinger, politics, Richard Nixon, United States, Winston Lord

14/03/2012

* Premier Wen says China needs political reform, warns of another Cultural Revolution if without

Extract from Xinhua: “Premier Wen Jiabao said Wednesday that China needs not only economic reform but also political structural reform, especially the reform of the leadership system of the Party and the government.

Wen warned at a press conference after the conclusion of the annual parliamentary session that historical tragedies like the Cultural Revolution may happen in China again should the country fail to push forward political reform to uproot problems occurring in the society. …

He noted although after the crackdown on the Gang of Four, the Party adopted resolutions on many historical matters, and decided to conduct reforms and opening-up, the mistake of the Cultural Revolution and feudalism have yet to be fully eliminated. …

As the economy continues to develop, Wen said, such problems as income disparity, lack of credibility and corruption, have occurred.

“I’m fully aware that to resolve these problems, we must press ahead with both economic structural reforms and political structural reforms , in particular reforms on the leadership system of the Party and the country,” he said. …”

via Wen says China needs political reform, warns of another Cultural Revolution if without – Xinhua | English.news.cn.

Over the past year or two Premier Wen has become very outspoken (for a senior Chinese politician) about issues normally not aired in public. For instance, the Cultural Revolution seldom features in speeches and if it does, it is not usually put in clearly negative terms.

In some ways this reminds me of the (in-)famous speech by Chairman Mao when he launched the ‘let the 100 flowers bloom‘ campaign in 1957. This was soon followed by the dreadful ‘anti-right’ campaign when too many intellectuals and party members took Mao’s ‘let 1000 thoughts contend’ exhortation at face value.

But, this time, the whole circumstances and environment are very different. So, hopefully, the next step will not be another anti-right campaign, but genuine discourse and debate with a (relatively) open mind.

Posted in China alert, Democracy, Politics, Reform | 6 Comments »

Tags: China, Cultural Revolution, Gang of Four, income disparity, Mao Zedong, Reform movement, socialist democracy, Wen, Wen Jiabao, Xinhua News Agency

CHINDIA ALERT: You'll be living in their world, very soon

Chindia Alert: You’ll be Living in their World Very Soon

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* Major Chinese industrial companies profits drop 5.2 pct

* China arrests 300 over contract frauds

* Fair trade? Diageo to buy top ‘baijiu’ producer; Jaguar Land Rover agrees jv with Chery in China

* US exempts 11 states from Iran sanctions; China, India excluded

* Chinese fuel prices raised by 6.5-7%

* India displaces China as world’s largest arms importer

* Bo Xilai replaced by Zhang Dejiang as Chongqing Party chief

* Stephen Roach on the consumer opportunity in China

* 40 years on: senior US diplomat recalls China trip as “single most dramatic, important event” in career

* Premier Wen says China needs political reform, warns of another Cultural Revolution if without

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