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

25/04/2012

* S&P cuts India’s outlook from stable to negative; markets hit

A logo of the Standard & Poor’s AA- rating (Photo credit: Wikipedia)

Times of India: “Ratings agency Standard & Poors on Wednesday cut India’s outlook to negative from stable, citing its large fiscal deficit and expectations of only modest progress on reforms given political constraints, battering stocks, bonds and the rupee.

The lowered outlook jeopardises India’s long-term rating of BBB-, which is the lowest investment grade rating. “The outlook revision reflects our view of at least a one-in-three likelihood of a downgrade if the external position continues to deteriorate, growth prospects diminish, or progress on fiscal reforms remains slow in a weakened political setting,” S&P credit analyst Takahira Ogawa said in a note.”

via S&P cuts Indias outlook from stable to negative; markets hit – The Times of India.

India Faces Challenges to Stable Rating Outlook: Standard & Poor (ibtimes.com)

What would you expect, given recent decisions in India, such as that to retroactive review foreign takeovers or mergers and apply taxes or penalties retroactively is not helping in foreign investment. While China has been assiduously wooing everyone, see https://chindia-alert.org/2012/12/31/question-who-did-china-woo-in-2012/ – plus for April a senior Chinese minister/politician either visited or hosted the following: Caribbean, Kazakhstan, Britain, Cyprus, Brunei, Iceland, Sweden, Germany, Poland, Thailand, Japan, North Korea, Timor-Leste, Colombia, South Sudan; Indian ministers/politicians and ministers are firmly ensconced at home!

Posted in Economics, India alert | 1 Comment »

Tags: Business, Credit rating agency, economy, Government budget deficit, India, Standard & Poors

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!

Ford To Build $760 Million Plant in Eastern China (blogs.wsj.com)
Cadillac Increases Its Presence In China (detroit.cbslocal.com)

Posted in China alert, Consumer, Economics, Manufacturing, Retail, Transport | 2 Comments »

Tags: cars, China, chinese cars, Detroit, Economic growth, General Motors, retail, Shanghai, transportation, United States

23/04/2012

* Solar giant turns the desert green and blue in Gujarat

The Times, London: “Asia’s mightiest solar power farm has been switched on in the Indian desert state of Gujarat. It is part of a drive to transform the region into one of the world’s leading green energy producers and to provide electricity to some of the 400 million people who still have no access to it.

The Gujarat Solar Park, which spans a remote 3,000 acres near the border with Pakistan, started generating 214 megawatts of electricity, sufficient to power 90,000 British households, over the weekend. The huge array of solar panels outstrips China’s 200MW Golmud Solar Park as the biggest in Asia. An official said that eventually the facility would reach a capacity of 1,000MW (edit – equivalent to a nuclear power station), bigger than any other single existing solar power plant in the world.

India, which is heavily dependent on imported coal, oil and gas for its energy requirements, is still chronically short of electricity and is aiming to build 20,000 megawatts of solar capacity by 2020.”

via Solar giant turns the desert green and blue in Gujarat | The Times.

Posted in Ecology, Good news, India alert, Infrastructure | Leave a Comment »

Tags: China, environment, Gujarat, India, Solar power

22/04/2012

* Time to Start Thinking by Edward Luce

Time to Start Thinking is a book destined to spark debate among liberals and conservatives alike. Drawing on his decades of exceptional journalism and his connections in Washington and around the world, Luce advances a carefully constructed and controversial argument that America is losing its position at the top of the world’s pecking order. He supports this argument with his interviews with key players in politics and business, from U.S. senators, senior White House officials, Fortune 100 chief executives, and many others, including Bill Gates and Admiral Mike Mullen.

Luce’s central thesis is that America is sleepwalking into economic and geopolitical decline. In a tightly argued book, Luce turns his attention to a number of critical issues set to determine America’s future: the changing structure of the U.S. economy, the continued polarization of American politics, the debilitating effect of the “permanent election campaign,” the challenges involved in the overhaul of the country’s public education system, the desperate situation facing America’s middle class, and the health of American innovation in technology and business.

His conclusion investigates America’s dwindling options in a world where the pace is increasingly being set elsewhere. Luce turns particular attention to Washington—he identifies the city’s insidious lobbying culture, the politicians’ constant need to fund raise, and the lack of bipartisanship as key stumbling blocks to an effectively functioning political system.

As distressing as it is important, Time to Start Thinking presents an America in economic, social, and political crisis. Those unwilling to face up to this reality may be tempted to blindly trust in American exceptionalism—but Luce argues that it is American pragmatism that will be the key to securing America’s future, if it is to be secured.

via Time to Start Thinking by Edward Luce.

From my limited understanding of Americans, I suspect that more non-Americans than Americans will bother to read this book. Which will be a great shame.

Posted in Chindia Alert, Economics, GeoPolitics | Leave a Comment »

Tags: current-events, economy, Edward Luce, politics, United States, Washington DC

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 »

Tags: Arctic, China, environment, Iceland, Suez Canal, transportation, Wen Jiabao

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.

Hong Kong, London to sign China yuan deal (cnn.com)
Treasury steps up efforts to turn City into renminbi trading centre (guardian.co.uk)
China Is About To Take A HUGE Step Toward Internationalizing Its Currency (businessinsider.com)
Osborne Calls on Expanding Yuan Trading to Boost U.K. Growth (businessweek.com)

Posted in Banking, China alert, Economics, Good news | Leave a Comment »

Tags: Beijing, Britain, Business, China, economy, george osborne, HSBC, hsbc holdings plc, London, Renminbi

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 »

Tags: Agni-V, Beijing, BRICS, China, Delhi, India, Intercontinental ballistic missile, missile launch, politics

18/04/2012

* India to test fire long-range missile

BBC News: “India is due to test fire a long-range intercontinental ballistic missile capable of carrying nuclear warheads. The locally-developed Agni-V missile has a range of more than 5,000km 3,100 miles and is expected to be launched in the eastern state of Orissa.

Visual description of the approximate range of the (Indian) Agni ballistic missile series. (Photo credit: Wikipedia)

Analysts say the Agni meaning “fire” in Hindi and Sanskrit missile family is to be the cornerstone of Indias missile-based nuclear deterrent. The missiles are among India’s most sophisticated weapons. In 2010, India successfully test-fired Agni-II, an intermediate-range ballistic missile with a range of more than 2,000km 1,250 miles.

Defence analyst Rahul Bedi says the successful test flight of the Agni-V missile, which is capable of delivering a single 1.5-ton warhead deep inside nuclear rival China’s territory, will strengthen India’s nuclear deterrence once it comes into service by 2014-15. It is 17.5m-tall, solid-fuelled, has three stages and a launch weight of 50 tons. It has cost more than 2.5bn rupees $480m; £307m to develop.

Only China, Russia, France, the US, and Great Britain have such long-range missiles. Israel is thought to possess them.”

via BBC News – India to test fire long-range missile.

Let’s hope this doesn’t start a military space race between India and China. Both countries must surely haev better things to invest their money in than nuclear missiles!

North Korea Isn’t The Only Country Testing Long Distance Missiles (businessinsider.com)
Agni V – The Project which will be revolutionary missile weapon (buildingthegateways.wordpress.com)

Posted in Chindia Alert, Defence, GeoPolitics, India alert, Military | 2 Comments »

Tags: Agni, Agni-II, Agni-V, China, Chindia, Chindiapedia, India, Missile, politics, Sanskrit

18/04/2012

* Who’s Returning to India and Why?

WSJ: “A recent front page article in the New York Times documented the migration of second generation Americans back to their ancestral countries, including India, China, Brazil and Russia.

India’s faltering growth may be disappointing, but it’s still much more rapid than the continued stagnation of the U.S. economy. In certain fields, at least there are still opportunities to be seized in India by those with a taste for adventure.

Labor economists call this kind of migration the “reverse brain drain.” Ironically, the migrants are often the kids or sometimes grandkids of the original “brain drain,” skilled workers and professionals who left India and other developing countries in the 1960s, ’70s and ’80s to seek opportunities in the booming U.S. economy.

In fact, a more accurate term for the highly mobile skilled workers of today, favored by labor economists, is “brain circulation.” These people are agile and will seek out opportunities wherever they exist. So if things don’t work out in India, they might return to the U.S. or try their luck somewhere else.”

via Economics Journal: Who’s Returning to India and Why? – India Real Time – WSJ.

Posted in Economics, India alert | Leave a Comment »

Tags: Chindia, Chindiapedia, economy, India, Reverse brain drain, United State

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 (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?!

Posted in Affluence, China alert, Consumer, Good news, Social & cultural | Leave a Comment »

Tags: China, Chindia, Chindiapedia, Horse racing, Ireland, Irish, sports, Tianjin

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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* S&P cuts India’s outlook from stable to negative; markets hit

* GM to Add 600 China Dealerships

* Solar giant turns the desert green and blue in Gujarat

* Time to Start Thinking by Edward Luce

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

* HSBC issue of renminbi bonds in London

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

* India to test fire long-range missile

* Who’s Returning to India and Why?

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