Archive for ‘Chindia Alert’

26/08/2015

The World Struggles to Adjust to China’s ‘New Normal’ – China Real Time Report – WSJ

China’s leaders have warned their people they need to accommodate a “new normal” of economic growth far slower than the rate that propelled the economy into the world’s second-largest in the past two decades. As WSJ’s James T. Areddy and Lingling Wei report:

Now, the rest of the world also needs to get used to the new normal: a China in the midst of a tectonic shift in its giant economy that is rattling markets world-wide.

The slowdown deepening this year is part of a bumpy transition away from an era when smokestack industries, huge exports and massive infrastructure spending—underpinned by trillions in state-backed debt—powered China’s seemingly unstoppable rise. Today, debt has swelled to more than twice the size of the economy, and some of those industries, such as construction and steel, are reeling.

Instead of them, China is pushing services, consumer spending and private entrepreneurship as new drivers of growth that rely less on debt and more on the stock market for funding.

via The World Struggles to Adjust to China’s ‘New Normal’ – China Real Time Report – WSJ.

24/08/2015

Are the Best Days Over for China Tech Startups? – China Real Time Report – WSJ

Over the past year, China has seen a boom in its startup scene, thanks to plenty of capital flowing into the sector.

But some investors and entrepreneurs say that could be changing as Beijing struggles to restore confidence in its economy and faltering stock market.

In Shenzhen, hundreds of entrepreneurs and investors gathered on Sunday at an event called Big Salad, where local startups talked about their business ideas, including high-tech underwear and affordable smart glasses. Everyone was full of enthusiasm and the mood was upbeat throughout, but some of them were also bracing for tougher times.

“Raising new money is difficult now,” said Mosso Lau, vice president of Shenzhen-based Firebird Institution, which runs funds that invest in early-stage startups while also serving as an incubator that helps startups develop their business ideas.

Firebird set up its last investment fund two years ago by collecting 12 million yuan ($1.9 million) from local businesses and wealthy individuals. It invested that money in tech startups such as mobile apps for food delivery and massage services.

As Firebird is now preparing to set up a new fund for next year, Mr. Lau expects it will be a lot harder to collect money this time, because potential investors have been hit by the recent stock market turmoil. “From last year until this June, there was so much money in venture investment. It was unusual,” he said.

Last year, venture-capital investments in China’s tech sector more than doubled to $6 billion from $2.8 billion in 2013, according to Hong Kong-based AVCJ Research, with both foreign and domestic funds putting in more money than the prior year. Total early-stage funding for Chinese tech startups surged to nearly $2 billion last year from $313 million in 2012 as deals increased to 299 from 172, according to AVCJ.

In January, when Jerry Dai founded a startup in Shenzhen that operates a crowdfunding platform similar to Kickstarter, there was nothing but optimism.

Entrepreneurs around him who had already raised capital told Mr. Dai that fundraising for his new venture wouldn’t be a problem because angel investors — individuals or funds that provide capital for early-stage startups before formal investment rounds — were financing just about any business idea.

But now, just as his startup is trying to find an angel investor, things are looking tougher.

“There are still many angel investors, but they are getting more selective,” he said. “Some investors think there is a bubble in China that may break in one or two years.”

Mr. Dai said he expects the process of securing funds to take longer than it would have several months ago.

“Last year was crazy. There was so much money in China,” said Heatherm Huang, a cofounder of MailTime, which makes emails easier to use on smartphones. Even though his startup is based in San Francisco, it raised much of its early funds from Chinese investors. “In some ways, things are going back to normal now.”

via Are the Best Days Over for China Tech Startups? – China Real Time Report – WSJ.

23/08/2015

Spectacular Images of Mars From India’s Most-Ambitious Space Mission – India Real Time – WSJ

Next month, India’s mission to Mars is expected to complete a year in orbit around the red planet and its photo album so far is out of this world.

The spacecraft, named Mangalyaan, Hindi for Mars craft, has already completed more than 100 orbits since it arrived at the planet on Sept. 24, 2014.

At a cost of $74 million, the Indian Space Research Organization’s mission to Mars was the cheapest of recent missions to Mars mounted by other space agencies.

The satellite is healthy and continues to “glean data,” Debiprasad Karnik, a spokesman for ISRO, said Friday.

Apart from a few days in June when it lost touch with Earth after moving behind the Sun in a phenomenon called “solar conjuncture,” Mangalyaan has remained in contact and been sending photographs taken by the Mars Color Camera back to scientists in India.

The photo above, taken in July, is of the Ophir Chasma, part of what the National Aeronautics and Space Administration describes as the largest canyon system in the solar system, known as the Valles Marineris.

NASA calls the geographical feature the Grand Canyon of Mars. At a length of more than 1,800 miles, it is almost 3.5 times the length of the Grand Canyon in Arizona. The walls of the chasma, that is described by the International Astronomical Union as “an elongate steepsided depression,” are multi-layered, the floor too contains large deposits of layered materials.

via Spectacular Images of Mars From India’s Most-Ambitious Space Mission – India Real Time – WSJ.

21/08/2015

China’s love for Chariot’s Of Fire hero Eric Liddell

A clutch of elderly Chinese pensioners, three Canadian women in their 70s and 80s and a British film star gathered in the courtyard of a school in the obscure industrial town of Weifang on Monday to witness the unveiling of a statue of a running man.

Statue of Scottish Olympic running hero Eric Liddel

The athlete immortalised in bronze in China is Eric Liddell, the legendary Olympian whose achievements were marked in the 1981 fi lm Chariots Of Fire.

The Canadians were there because Liddell was their father and the presence of the actor, Joseph Fiennes, was because he plays the Scottish sprinter in The Last Race, a new movie about his life to be released in March.

But why would the Chinese authorities be interested in venerating such a man? The truth is that Liddell is as much Chinese as he is Scottish.

Born in Tianjin in 1902 he went on to spend more than half his life in the country as an evangelical Christian missionary. And so while he is known as the Flying Scotsman in the UK in China he is remembered as the country’s first Olympic champion.

It is rare indeed that a person has the good fortune to meet a saint but he came as close to it as anyone I have ever known

Eight years before Beijing sent its first team to the Olympics, Liddell won a memorable gold medal in the 400m as part of the British team in the Paris Games of 1924. His victory was all the more poignant because he had been forced to pull out of his best event the 100m as soon as the timetable for the Games was announced.

Liddell, the son of Scottish missionaries, was such a devout Christian that he would not countenance breaking the Sabbath to take part in heats held on a Sunday. Aware this meant he wouldn’t be able to participate in the qualifying rounds for the sprint Liddell devoted all his energy to training for the 400m.

As he took to the starting blocks for the final a masseur with the American Olympic team is said to have slipped a piece of paper into his hand with the Book Of Samuel quotation: “Those who honour me I will honour.”

The fates were certainly on Liddell’s side that day.

He not only won but broke the existing Olympic and world records with a time of 47.6 seconds.

His sporting success did not divert him from his chosen course however and within a year he travelled to China to take up a posting as a missionary teacher in Tianjin’s Anglo-Chinese College, a school popular with the local elite.

The missionaries believed that by teaching Christian values to the children of the wealthy they might promote them later when they reached positions of influence.

Liddell also got involved in the sporting curriculum and even advised on the construction of Tianjin’s Minyuan Stadium.

He proposed an exact copy of the then football ground of Chelsea FC, said to have been his favourite running venue in the UK. He met and married a Canadian woman called Florence, also a child of missionaries, and they had daughters Patricia and Heather.

When Florence was pregnant with their third, war broke out and, with the Imperial Japanese Army sweeping through China, Liddell insisted she and the girls leave for Canada .

Typically Liddell refused to leave his beloved China in its hour of need and was interned and placed in a camp in Weifang, where he dedicated himself to the welfare of fellow inmates.

One of these, Langdon Gilkey, a 19-year-old American who went on to became a prominent theologian, said of Liddell: “Often I would see him bent over a chessboard or a model boat or directing some sort of square dance – absorbed, weary and interested, pouring all of himself into this effort to capture the imagination of penned-up youths.

“He was overflowing with good humour and love for life with enthusiasm and charm.

“It is rare indeed that a person has the good fortune to meet a saint but he came as close to it as anyone I have ever known.”

Liddell even turned down the opportunity to return to Britain after the prime minister Winston Churchill brokered a deal for his release. True to form Liddell arranged for a pregnant woman from the camp to take his place. His tireless efforts on behalf of both the children of the camp and the older generation took its toll to such an extent that in early 1945 he had to be admitted to the camp hospital.

A few days later he sat up in bed and wrote to his wife in Canada: “… was carrying too much responsibility… had slight nervous breakdown… much better after a month in hospital. Special love to you and the children, Eric”.

But in fact he was not much better. He had a brain tumour and within an hour of writing the note he was gone.

His friend and colleague Anne Buchan reported that he uttered the words, “It’s full surrender”, before lapsing into a coma from which he would never recover. He was just 43.

via China’s love for Chariot’s Of Fire hero Eric Liddell | History | News | Daily Express.

21/08/2015

China gets Chariots of Fire sequel up and running

The much-loved British film Chariots of Fire about the Scottish runner and missionary Eric Liddell is getting a sequel thanks to his many fans in China.

Ian Charleston as Eric Liddell in Chariots of Fire

Joseph Fiennes will play Riddell in a new movie filmed in China, co-written and directed by the Hong Kong director Stephen Shin with Canadian director Michael Parker.

It will be distributed by the Hong Kong-based Alibaba Pictures, who this morning also announced that they are to back the fifth Mission Impossible film.

Chariots of Fire, which won four Oscars in 1982, starred Ian Charleson as Liddell, a devout Christian who had to choose between his sport and religious beliefs at the 1924 Paris Olympics. Months before the Olympics took place, Liddell had to drop his plans to enter his preferred 100m race because the heats took place on a Sunday. Instead, he trained for the 400m and succeeded in taking the gold medal for Great Britain.

The Independent reports that the Chinese-born Liddell is regarded as a hero in China, partly for his sporting prowess but also for his actions in the Japanese internship camp where he died aged 43. Liddell was thought to have organised the smuggling of food in to prisoners.

Born in China to missionary parents, he returned to that country after his Olympic victory to continue his parents’ work. In 1934 he married fellow missionary Florence Mackenzie with whom he had three children.

Liddell remained in China after Japan invaded in 1937. In 1943, he was held in an internment camp in Weifang, and died of a brain tumour two years later, aged 43. In 2008, shortly before the Beijing Olympics, it was revealed that Winston Churchill had negotiated his release through a prisoner swap, which Liddell turned down so that a pregnant inmate could gain freedom instead.

China allows only 34 non-Chinese films to be shown in its mainland cinemas each year. Alibaba Pictures says that it “should” get such a release.

Such a focus on religion is unusual for a film in China, where the Communist government promotes atheism.

via China gets Chariots of Fire sequel up and running.

21/08/2015

India-Pakistan Talks Hang in the Balance Over Kashmir – India Real Time – WSJ

When rival neighbors India and Pakistan plan to meet, it often comes down to the wire – and this week is no exception.

Two days before Pakistan’s National Security Advisor Sartaj Aziz is scheduled to land in New Delhi for meetings with his Indian counterpart Ajit Doval, statements from India’s foreign ministry Friday morning cast doubt over whether the talks would actually take place.

The reason: another planned meeting between Mr. Aziz and separatists from the Indian state of Jammu and Kashmir at a reception at the Pakistan High Commission on Sunday.

Through a series of tweets, a televised interview and a media statement, India hardened its stand against Pakistan’s decision to consult with Kashmiri separatists. The Kashmir region lies at the center of decades of enmity between India and Pakistan. Both countries administer parts of the territory but claim it in full.

Vikas Swarup, spokesman for India’s foreign ministry, said in a tweet posted on his verified Twitter TWTR -6.19% account on Friday: “India has advised Pakistan yesterday that it would not be appropriate for Mr. Sartaz Aziz to meet with Hurriyat representatives in India,” referring to a group of Kashmiri separatists.

Pakistan says these men must be consulted before India and Pakistan hold discussions concerning Kashmir. India resists the involvement of groups that have clashed with the Indian establishment for decades, boycotting elections and stoking tensions in the Kashmir Valley. Security officials in New Delhi accuse them of facilitating militancy in the region and colluding with Pakistan-based terrorist groups.

If India cancels the hard-won meetings over the issue of Kashmiri separatists, it won’t be the first time. In July last year, Prime Minister Narendra Modi called off planned talks between the countries’ foreign secretaries after separatist leaders met with Pakistan’s ambassador to India, in defiance of New Delhi’s warnings not to do so. By cancelling the meet, Mr. Modi sought to set new ground rules of engagement between India and Pakistan – one Islamabad appears not to have been willing to accept.

Mr. Swarup repeated India’s concerns publicly Friday, taking a stand that could threaten the upcoming talks unless Pakistan yields. He said a meeting between separatists and Mr. Aziz “would not be in keeping with the spirit and intent” of an understanding between Mr. Modi and Pakistani Prime Minister Nawaz Sharif at a meeting in July – when the NSA talks were firmed up — “to jointly work to combat terrorism.”

His statements are a second warning shot, after Indian authorities in Jammu and Kashmir temporarily detained separatist leaders on Thursday in an apparent signal of New Delhi’s objections. But Pakistan has so far given no indication it’s in the mood to compromise. Pakistani foreign ministry officials said the reception would go on as scheduled.

 

The meetings may also fall apart over another disagreement: What will the two sides talk about?

Pakistan has said the dispute over Kashmir will figure on the agenda when the countries’ top security officials get together. India says the meetings will focus only on terrorism.

India accuses Pakistan of harboring militants who launch attacks on India and wants to press Pakistan further to take stern action against such groups. Pakistan denies allegations it backs militants, saying it too is grappling with terror against its citizens.

In recent days, Pakistan has stepped up efforts to draw attention to the Kashmir dispute, raising hackles in New Delhi. It pulled out of organizing a conference of Commonwealth countries that was scheduled to begin next month saying it didn’t want to host lawmakers from the Indian state of Jammu and Kashmir. Pakistan’s foreign ministry said on Thursday that Islamabad would “raise all issues during the meetings in India, including Kashmir.”

In an attempt to clarify its position, Mr. Swarup said in another tweet Friday that India has “sought confirmation of our proposed agenda for the NSA level talks” – a typically behind-the-scenes detail whose public declaration by Mr. Swarup points to the lack of trust and widening gulf between the two sides.

via India-Pakistan Talks Hang in the Balance Over Kashmir – India Real Time – WSJ.

20/08/2015

What Stands in the Way of Modi’s Digital India – The Numbers – WSJ

Indian Prime Minister Narendra Modi has grand plans to expand the reach of the Internet to his country’s most far-flung citizens.  But some big numbers stand in his way.

1.06 billion

The number of Indians who currently don’t have access to the Internet. India’s offline population is greater than that of China and Indonesia–home to the next two largest unconnected groups–combined.

1 million

The number of miles of fiber optic cable needed to connect 250,000 village clusters in India to the Internet, according to a committee set up to get the project into gear. The original plan estimated that 370,000 miles of cable would do the job.

1%

The proportion of clusters of villages that up to June 30 were fully connected to Internet services in community centers, hospitals and schools under the National Fiber Optic Network that was launched in 2011.

2013

The original deadline for completion of the network. The date has since been shunted back twice and now stands at 2019.

$11.2 billion

The revised budget for the fiber optic network. Almost four times what was originally planned.

via What Stands in the Way of Modi’s Digital India – The Numbers – WSJ.

15/08/2015

China Eastern to buy 15 Airbus jets for $3.6 billion | Reuters

China Eastern (600115.SS)(0670.HK), the country’s No.2 airline by market value, plans to acquire 15 Airbus (AIR.PA) jets for about $3.6 billion to meet booming demand for air travel.

The logo of Airbus Group, Europe's largest aerospace group, is pictured in front of the company headquarters building in Ottobrunn, near Munich February 26, 2014. REUTERS/Michaela Rehle

Airbus is scheduled to deliver seven A330s in 2017 and a further eight in 2018, China Eastern Airlines Corp (CEA.N) said in a statement to the Shanghai stock exchange.

“The company is purchasing 15 Airbus A330 planes to help to replace older planes that will retire over the next few years. It will also help to meet rising passenger demand for mid and long routes,” China Eastern said.

China will be the world’s largest air passenger market by 2034, according to the International Air Transport Association, attracting interest from foreign airlines.

Delta Air Lines Inc (DAL.N) is poised to become the first U.S. carrier to own part of a Chinese peer, announcing plans last month to buy a 3.55 percent stake in China Eastern for $450 million and gaining an “observer” seat on its board.

In a separate statement on Friday, China Eastern reported first-half net profit up sharply to 3.56 billion yuan ($557 million) from only 15 million yuan a year earlier, citing lower fuel prices and strong travel demand.

via China Eastern to buy 15 Airbus jets for $3.6 billion | Reuters.

15/08/2015

Modi’s Independence Day Speech – The Numbers – WSJ

Indian Prime Minister Narendra Modi’s second Independence Day speech on Saturday morning was peppered with numbers – most measuring the success of initiatives launched since he took office, and others earmarking targets that he hopes the country will reach in the future.

English: Image of Narendra Modi at the World E...

English: Image of Narendra Modi at the World Economic Forum in India (Photo credit: Wikipedia)

Here are some of the figures that Mr. Modi used in his one-and-a-half hour long speech at Delhi’s iconic Red Fort.

1.25 billion Indians

It was hard to keep count on the number of times Mr. Modi invoked the unified power of India’s 1.25 billion people during his speech. “This is Team India, a team of 125 crore Indians. This is the team that makes our nation and take our nation to new heights,” he said in the first few minutes, using the Indian unit, crore, for 10 million. Mr Modi said that advancements made by his government in the 15 months since he took office as prime minister, were the “achievements of Team India.” He even set a target for the team: to make India a developed nation by 2022, the year that India celebrates 75 years of independence from British rule.

425,000 toilets

All schools should have toilets with separate amenities for girls, Mr. Modi said during his speech last year, setting a one-year deadline for the target. In his address on Saturday, Mr. Modi declared that 425,000 toilets had been built in over 200,000 Indian schools in the past year. It wasn’t immediately possible to verify this claim. According to India’s federal human resource development ministry, by 2014, about 91% and 85% of government-run schools had separate toilets for girls and boys respectively.

2 million cooking-gas subsidies

Since January, 2 million Indians have forfeited their cooking-gas subsidies–offered to all households–under a campaign called “Give It Up.” The initiative, launched by the federal ministry of petroleum and natural gas, urged affluent Indians to give up the perk—amounting to about $4 on every cooking-gas cylinder—if they could afford to. The government hopes the plan will make gas available as a clean energy for the millions who still rely on firewood and biomass for cooking. The poorest section of Indian society receives only 15 percent of this subsidy, according to a 2014 report by Council on Energy, Environment and Water, a Delhi-based non-profit. On Saturday, a website for the campaign, givitup.in, showed that 2,101,977 people had voluntarily surrendered the subsidy.

170 million bank accounts

Mr. Modi said his push to widen access to financial services for the poor through a program called Pradhan Mantri Jan Dhan Yojana—or the Prime Minister’s People Money Scheme, announced in his Independence Day speech last year, had shown progress. He said 170 million new bank accounts have been opened under this program and that the total amount deposited in the accounts amounts to 200 billion rupees ($3.07 billion.) The amount reflects “the richness of the poor,” he said. The government said in April that 135 million new bank accounts were opened in the eight months since the scheme launched.

65 billion rupees

That’s the amount of unaccounted, or “black money,” sitting in international accounts held by tax-avoiding Indians that has been declared to authorities in the past two-and-a-half months, Mr. Modi said. In July, following new legislation aimed at combating tax avoidance, and combating so-called “black money,” the government opened up a three-month window for law breakers to disclose their foreign assets and incomes, pay due taxes and settle the steep penalties imposed for evading taxes, to avoid prosecution. The punishment for stashing “black money” to evade taxes is 10 years in prison.

18,500 villages

Despite a number of ongoing campaigns, Mr. Modi didn’t shy away from setting another target: to provide electricity to 18,500 villages that don’t have power supply in the next 1,000 days.

via Modi’s Independence Day Speech – The Numbers – WSJ.

15/08/2015

Modi Uses Independence Day Speech to Hit Out at ‘Termite-Like’ Graft – India Real Time – WSJ

At the end of a week in which Prime Minister Narendra Modi failed to push broad measures aimed at boosting the economy through Parliament, the Indian leader sought in an Independence Day address to draw attention to his efforts to make the machinery of government more efficient and less corrupt.

In a 90-minute speech delivered from the ramparts of New Delhi’s Red Fort on Saturday, Mr. Modi didn’t focus on sweeping policy changes or big, new plans. Instead, he spoke of trying to enforce change in the Indian government bureaucracy, a system he characterized as riddled with “termite-like” graft and inertia and accustomed to inordinate delays.

“What government doesn’t make big declarations?” Mr. Modi said. “The test is whether we are able to implement the promises we make. We have stressed a new work culture.”

Under attack from political opponents who have tried to portray him as pro-business and anti-farmer, Mr. Modi didn’t once mention his “Make in India” campaign to encourage foreign and domestic investors to set up factories in India, nor did he directly address weeks of opposition protests that stalled a major tax overhaul in Parliament.

via Photos: Modi Uses Independence Day Speech to Hit Out at ‘Termite-Like’ Graft – India Real Time – WSJ.

Law of Unintended Consequences

continuously updated blog about China & India

ChiaHou's Book Reviews

continuously updated blog about China & India

What's wrong with the world; and its economy

continuously updated blog about China & India