Archive for ‘Chindia Alert’

01/04/2015

China to phase out outdated regulations – Xinhua | English.news.cn

China has announced a new drive to phase out outdated rules.

The State Council, the country’s cabinet, said on Tuesday that it will put all government rules and regulations since the founding of the New China under scrutiny.

A statement from the State Council said the new undertaking, which will take approximately three years, is crucial to cutting red tape and devolving power while improving regulation, and to building a law-based government.

In particular, authorities will focus on removing obsolete government regulations that now run counter to the Constitution and laws, impede deepening reform and opening up, and those that infringe on citizens’ rights and interests.

The government should make sure that “anything the law does not authorize is not done, while all duties and functions assigned by law are performed”, the statement said, adding that details of rules to be abolished will be made public and that the campaign will be based on “scientific evaluation”, so as not to leave room for “regulation vacuums”.

via China to phase out outdated regulations – Xinhua | English.news.cn.

01/04/2015

High-tech sanitation: Race to the bottom | The Economist

JAPAN is often viewed with antipathy in China, but increasingly commerce is trumping contempt. During the lunar new-year holiday in February, Chinese tourists thronged to Japan in record numbers. Many came home lugging a high-end Japanese luxury: a heated toilet-seat complete with pulsating water jets, deodorisers and even music to drown out less melodious tinklings. In recent weeks the run on Japanese loos has been a topic of much debate among Chinese commentators, revealing deep insecurities.

Chinese visitors bought more high-tech lavatory seats than almost any other Japanese product during the week-long break, according to Hottolink, a Japanese consulting firm. Most popular was a new variety with hands-free lid opening, say staff at a branch in Tokyo of Bic Camera, a consumer electronics store where Chinese shoppers are so numerous that signs advertise wares in Chinese and assistants speak Mandarin. These cost around ¥65,000 ($540). Some bought several seats, including portable, battery-powered ones.

Relations between China and Japan have shown recent, tentative signs of warmth after a long chill. But only three years ago demonstrators in several Chinese cities called for a boycott of Japanese goods in protest against Japan’s stance in a still-festering dispute over uninhabited islands in the East China Sea. Some Japanese companies responded by minimising or hiding their branding on products sold in China.

via High-tech sanitation: Race to the bottom | The Economist.

01/04/2015

Tandoori microwaves help Samsung woo India, counter global dip | Reuters

Microwave ovens that cook tandoori bread, smartphones that understand Tamil and washing machines designed to deal with humid, dusty cities: all part of Samsung Electronics’ push to conquer India and offset a global slump.

A man walks at the Samsung Electronics' headquarters in Seoul January 7, 2015. REUTERS/Kim Hong-Ji/Files

The consumer electronics giant is betting big on Asia’s third-largest economy, at a time when overall sales have struggled against rivals like Apple. In January, Samsung reported its first annual group profit drop since 2011, and in February its first wage freeze for employees in Korea in six years.

One source familiar with Samsung said the group, one of the biggest players in the Indian consumer electronics market, would invest up to $1 billion in manufacturing units and in research and development, adapting products to local taste and needs.

While Samsung does not give a figure for its investments or revenue targets from India, senior officials say it plans to invest heavily in manufacturing and research. It already uses a 10,000-strong development team to tailor everything from fridges to air conditioning units for Indian consumers.

“While Prime Minister Narendra Modi is talking about ‘Make in India’, we are saying ‘Make for India’,” said Ranjivjit Singh, chief marketing officer for Samsung in India.

“It’s not just about manufacturing, that we’ve been doing anyway. But we are making products designed for India, and this doesn’t happen by luck.”

Singh said Samsung was also considering adding a new manufacturing unit. It already has three research centres and two factories.

“A lot of states have been approaching us for a new factory, but it is premature to talk about investments,” he told Reuters.

via Tandoori microwaves help Samsung woo India, counter global dip | Reuters.

01/04/2015

India aims to raise exports to $900 billion by 2019/2020 | Reuters

India aims to raise its exports to $900 billion by fiscal year 2019/20, the government said in a statement on Wednesday.

A man walks past steel rims and parked cars at a dock yard at Mumbai Port Trust in Mumbai November 17, 2014.  REUTERS/Shailesh Andrade/Files

India’s total exports were $465.9 billion in the 2013/14 fiscal year that ended on March 31, 2014, the statement said.

In the first 11 months of the 2014/15 fiscal year that ended on Tuesday, merchandise exports stood at $286.58 billion, government data showed.

Merchandise exports account for about one-fifth of the $2 trillion Indian economy.

via India aims to raise exports to $900 billion by 2019/2020 | Reuters.

01/04/2015

China to unveil measures to fight water pollution | Reuters

China is to launch an action plan to protect the quality of its scarce water resources after years of rapid economic growth that have left much of its water supply too polluted for human consumption or for growing food.

The plan, expected to be published this month, will require firms in heavily polluting industries such as paper mills and dye and chemical plants to treat discharged water and it will set higher penalties for those that violate rules on discharging pollutants, according to official media reports.

One third of China’s major river basins and 60 percent of its underground water are contaminated, according to official data, posing a major threat to public health and food security.

The long-awaited action plan is expected to be approved by the cabinet this month to give it legal powers to hold polluters and local authorities responsible.

“The plan will ring an alarm bell with local authorities who did little to protect water and will help to remove the regional segregation that constrained the growth of the water treatment business,” said He Yuanping, executive vice president of Originwater, a private clean water technology company.

He estimated the treatment business could be worth more than 2 trillion yuan ($323 billion) in terms of the total investment involved, including assets owned by local governments.

via China to unveil measures to fight water pollution | Reuters.

31/03/2015

What could happen in China in 2015? | McKinsey & Company

What could happen in China in 2015?

What do you get when you add slower economic growth, greater volatility, and rising competition to more international flights and genuine Chinese innovation? McKinsey director Gordon Orr’s annual predictions.

December 2014 | byGordon Orr

It seemed harder to prepare my “look ahead” this year. On reflection, I believe this is because political and economic leaders in China have clear plans and supporting policies that they are sticking to. You can debate the pace at which actions are being taken, but not really the direction in which the country is traveling. This means a number of the themes I highlighted for this year will remain relevant in 2015:

What could happen in China in 2015?

Author Gordon Orr discusses his China predictions with McKinsey director Nick Leung and principal Yougang Chen.

Improving productivity and efficiency will remain the key to maintaining profitability for many companies, given lower economic growth (overall and at a sector level) and the impact of producer price deflation on multiple sectors.

The impact of technology as it eliminates jobs in services and manufacturing will become even greater (but still not in government).

As a result, the government will keep a sharper focus on net job creation and the quality of those new positions. Companies will hire even more information technologists to keep up in the race to exploit technology better than their competitors.

The push to lower pollution, and now carbon emissions, will lead to even greater investment in domestic solar and wind farms, boosting the global position of Chinese producers.

High-speed-rail construction will continue domestically and increasingly abroad, as Chinese companies become the builder of choice for high-speed rail globally.

Beyond these, there are several additional themes that will be important in 2015. I describe them below.

What else may happen in 2015? – see article:

via What could happen in China in 2015? | McKinsey & Company.

31/03/2015

India’s Billion-Dollar Startups Balloon on Glut of Global Funds – India Real Time – WSJ

Vikram Chopra spent the past three years building an online furniture-shopping site for Indian consumers that was funded mainly by annual capital injections from a German technology incubator.

But during the past few months, investor interest in the site, FabFurnish.com, has soared, said the 32-year-old entrepreneur, who is based in the New Delhi suburb of Gurgaon. Several global venture-capital firms and hedge funds have said they are interested in investing, and Mr. Chopra is now considering another round of funding that would exceed the $20 million raised so far—even though he doesn’t expect FabFurnish to be profitable for another two years and doesn’t yet need the cash.

“A few years ago, everybody wanted to see profitability upfront,” said Mr. Chopra. “Today, it is more like how much money you need to curb the competition [and] kill everyone else.”

Global money is flooding into Indian startups as investors search for a successor to Alibaba Group Holding, the Chinese e-commerce company that raised a record $25 billion in its initial public offering last year.

Venture capitalists sank $4 billion into India last year in some 300 deals—almost twice as much money as they invested in 2013 and 14 times the level of a decade ago, according to Indian data tracker Venture Intelligence.

via India’s Billion-Dollar Startups Balloon on Glut of Global Funds – India Real Time – WSJ.

31/03/2015

China aims to double doctor numbers as cure for healthcare woes | Reuters

China will almost double the number of its general doctors by 2020, trim its public sector and improve technology as it seeks to fix a healthcare system plagued by snarling queues and poor rural services, its main administrative authority has said.

People queue at a hospital in Shanghai, September 2, 2014.  REUTERS/Aly Song

China’s fast-growing healthcare market is a magnet for global drug makers, medical device firms and hospital operators, all looking to take a slice of a healthcare bill expected to hit $1 trillion by 2020, according to McKinsey & Co.

“Healthcare resources overall are insufficient, quality is too low, our structures are badly organized and service systems fragmented. Parts of the public hospital system have also become bloated,” China’s State Council said in a five-year roadmap announced late on Monday.

The roadmap, which laid out targets for healthcare officials nationwide between 2015 and 2020, said Beijing wanted to have two general doctors per thousand people by 2020, close to double the number at the end of 2013, as well as increasing the number of nursing and support staff.

China suffers from a scarcity of doctors – partly caused by low salaries – which has created bottlenecks at popular urban hospitals leading to rising tension between medical practitioners and often frustrated patients.

The roadmap said China would also look to use technology such as mobile devices and online “cloud systems” to meet some of the issues, a potential boost to tech firms like Alibaba Group Holding Ltd and its healthcare subsidiary Alibaba Health Information Technology Ltd.

China should also have digital databases for electronic health records and patient information covering the entire population to some degree by 2020, it said.

Providing access to affordable healthcare is a key platform for President Xi Jinping‘s government. However, recent probes have turned the spotlight on corruption in the sector, while patients often have large out-of-pocket expenses due to low levels of insurance coverage.

The roadmap said China would push forward the development of grassroots healthcare, a fast-growing business segment, while reining in some large public hospitals in urban centers.

The document also suggested further opening to the private sector, where Chinese and international firms have been taking a growing role in running hospitals.

“The role of public health institutions is too big, with the number of beds accounting for around 90 percent of the total,” the State Council said.

via China aims to double doctor numbers as cure for healthcare woes | Reuters.

26/03/2015

India Takes Top Spot In Producing Wealthy Households – India Real Time – WSJ

India’s affluent-household club is growing quickly.

Over the next five years, the number of such households–meaning those with financial assets of $100,000 to $2 million –is expected to jump 10-fold, to 4.9 million, according to an Economist Intelligence Unit study. In percentage terms, India ranked first among the 32 nations covered in the report.

By that same year,  the total financial assets in these households should reach $879 billion, driven by significant “economic reforms, attention to infrastructure, a stable political outlook and positive investor sentiment,” according to the report.

via Report: India Takes Top Spot In Producing Wealthy Households – India Real Time – WSJ.

26/03/2015

Ford aims to triple exports from India with $1 bln plant | Reuters

Ford Motor Co(F.N) has invested $1 billion in a new plant in western India which will help the automaker triple exports from the country, chief executive Mark Fields told reporters on Thursday.

A Ford logo is seen during preparations for the 2014 LA Auto Show in Los Angeles, California November 18, 2014. REUTERS/Lucy Nicholson/Files

Ford plans to make India an export hub for compact cars such as the EcoSport, a sub-four meter sports utility vehicle, and the newly launched compact sedan, Ford Figo Aspire, the first car to be produced at the new facility.

The new manufacturing facility in Gujarat will nearly double the company’s installed production capacity in the country to 610,000 engines and 440,000 vehicles a year, Fields said at the launch of the new facility.

via Ford aims to triple exports from India with $1 bln plant | Reuters.

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