Archive for ‘Economics’

25/02/2015

China drops leading technology brands for state purchases | Reuters

China has dropped some of the world’s leading technology brands from its approved state purchase lists, while approving thousands more locally made products, in what some say is a response to revelations of widespread Western cybersurveillance.

A Cisco logo is seen at its customer briefing centre in Beijing, November 14, 2013. REUTERS/Kim Kyung-Hoon

Others put the shift down to a protectionist impulse to shield China’s domestic technologyindustry from competition.

Chief casualty is U.S. network equipment maker Cisco Systems Inc (CSCO.O), which in 2012 counted 60 products on the Central Government Procurement Center’s (CGPC) list, but by late 2014 had none, a Reuters analysis of official data shows.

Smartphone and PC maker Apple Inc (AAPL.O) has also been dropped over the period, along with Intel Corp‘s (INTC.O) security software firm McAfee and network and server software firm Citrix Systems (CTXS.O).

The number of products on the list, which covers regular spending by central ministries, jumped by more than 2,000 in two years to just under 5,000, but the increase is almost entirely due to local makers.

The number of approved foreign tech brands fell by a third, while less than half of those with security-related products survived the cull.

An official at the procurement agency said there were many re

via Exclusive: China drops leading technology brands for state purchases | Reuters.

24/02/2015

Modi’s bid to ease land for companies could impact reforms | Reuters

A bid by Prime Minister Narendra Modi to make it easier for businesses to buy farm land for infrastructure and industry has sparked a backlash that could stymie his efforts to get reforms through a parliament session that began on Monday.

Labourers work along the construction site of a road at Ghilot in Rajasthan, October 1, 2014.  REUTERS/Adnan Abidi/Files

While the change is aimed at unlocking hundreds of billions of dollars worth of projects, which have been stuck for want of land, opposition parties and rights activists say it discriminates against farmers.

“We will protest and fight the government on this issue inside and outside parliament,” Ghulam Nabi Azad, a senior leader of the opposition Congress party, told the Indian Express.

Modi issued an ordinance in December to exempt projects in defence, rural electrification, rural housing and industrial corridors from provisions of a law enacted by the previous Congress party government that mandated the consent of 80 percent of affected landowners for any deal.

He had also ended the need for companies to conduct a social impact study of such projects, which would involve public hearings and, industry executives fear, drag on for years.

The ordinance is a temporary order and needs the approval of both houses of parliament to come into force. It will lapse if parliament does not ratify it this session.

via Modi’s bid to ease land for companies could impact reforms | Reuters.

24/02/2015

Retail dilemma in India – nice malls are few and far between | Reuters

A severe shortage of attractive malls has made setting up shop in India easier said than done, crimping expansion plans for both foreign retailers such as Lacoste and domestic giants like department store chain Shoppers Stop (SHOP.NS).

A private security guard stands guard inside the premises of the MGF mall in New Delhi February 23, 2015.  REUTERS/Adnan Abidi

India’s searing heat, heavy traffic and cluttered pavements make malls the most popular option for urban middle class consumers looking for a day out. But many centres – despite having been built in the last decade – are struggling to draw shoppers or retailers because of poor design or because they are difficult to manage.

P.S. Puri, CEO of MGF Mall Management, which runs MGF Metropolitan, knows this all too well. Located in a posh district in the south of New Delhi, security guards and sales staff outnumbered shoppers last Tuesday evening in what was once a bustling mall.

It has restaurants but lacks popular attractions like a food court and a cinema. The sale of shop ownership piecemeal has made management difficult and now only one quarter of the space is occupied by fashion retailers – about the same amount that is vacant.

via Retail dilemma in India – nice malls are few and far between | Reuters.

22/02/2015

Modi bets on GM crops for second green revolution | Reuters

On a fenced plot not far from Prime Minister Narendra Modi‘s home, a field of mustard is in full yellow bloom, representing his government’s reversal of an effective ban on field trials of genetically modified (GM) food crops.

A scientist points to a patch of genetically modified (GM) rapeseed crop under trial in New Delhi February 13, 2015. REUTERS-Anindito Mukherjee

The GM mustard planted in the half-acre field in the grounds of the Indian Agricultural Research Institute in New Delhi is in the final stage of trials before the variety is allowed to be sold commercially, and that could come within two years, scientists associated with the project say.

India placed a moratorium on GM aubergine in 2010 fearing the effect on food safety and biodiversity. Field trials of other GM crops were not formally halted, but the regulatory system was brought to a deadlock.

But allowing GM crops is critical to Modi’s goal of boosting dismal farm productivity in India, where urbanisation is devouring arable land and population growth will mean there are 1.5 billion mouths to feed by 2030 – more even than China.

via Modi bets on GM crops for second green revolution | Reuters.

20/02/2015

Indian IT firms eye robotics, driverless cars for next round of growth | Reuters

After decades of low-margin work like server maintenance, India’s information technology services firms are moving upscale in search of lucrative contracts for driverless cars and other advanced projects as online innovation changes clients’ needs.

Employees walk along a corridor in the Infosys campus in the southern Indian city of Bangalore September 23, 2014. REUTERS/Abhishek Chinnappa/Files

Companies from Tata Consultancy Services Ltd (TCS.NS) to Wipro Ltd (WIPR.NS) are all joining Infosys Ltd (INFY.NS) in investing in new, high-end technology, industry watchers say. Earlier this week Infosys bought U.S. automation specialist Panaya Inc for $200 million.

Triggering change is a wave of invention allowing machines to talk to each other online, dubbed ‘the Internet of things‘. Customers are ramping up: from about 5 percent now, strategy advisor Offshore Insights estimates automation and artificial intelligence work will grow to 25 to 30 percent of an IT outsourcing market seen by the national industry association as worth $300 billion by 2020.

“We’re in the midst of a new wave of software, and IT services companies really don’t have a choice,” said R. Ray Wang, principal analyst and founder of Silicon Valley-based Constellation Research.

via Indian IT firms eye robotics, driverless cars for next round of growth | Reuters.

20/02/2015

Subsidy cuts in budget may disappoint investors | Reuters

India may slash its food and fuel subsidy bill by about $8 billion in next week’s budget, two sources said, but despite the impressive headline, the cut is not as radical as free market champions had hoped for in Prime Minister Narendra Modi‘s first full budget.

A view of the Indian parliament building is reflected on a car in New Delhi April 24, 2012. REUTERS/B Mathur/Files

Most of the 20 percent cut in the budget for subsidies results from lower global oil prices rather than structural changes, with the government’s appetite for reform tempered by a heavy local election defeat in New Delhi this month.

“The total subsidy bill could come down to around 2 trillion rupees ($32 billion),” a senior government official, who has direct knowledge of the matter, told Reuters. That calculation was echoed by another source privy to budget discussions.

via Exclusive – Subsidy cuts in budget may disappoint investors | Reuters.

20/02/2015

Top China cotton producer resists reforms in restive Xinjiang | Reuters

China’s top cotton producer, a quasi-military body formed 60 years ago to settle the far west Xinjiang area, is resisting a government policy that could force it to cut output in an industry employing hundreds of thousands in the restive region.

Farmers stack cotton at a cotton purchase station in Hami, Xinjiang Uighur Autonomous Region in this November 3, 2010 file picture. REUTERS/Stringer/Files

Beijing has pledged to end a costly stockpiling program that has artificially inflated cotton prices and in Xinjiang helped underpin an influx of Han Chinese workers, creating friction in an area home to the Muslim Uighur people.

Reluctant to accept the current weak market price, the Xinjiang Production and Construction Corps (XPCC) has asked the government to buy part of its crop and store it in state reserves, said two trade sources with knowledge of the issue.

XPCC, also known as the army corps, or ‘bingtuan’, has become a sort of state within a state and gained a dominant role in industries such as cotton, where it employs about 200,000 mainly Han Chinese on some of Xinjiang’s best land.

“Cotton is intimately associated with land usage, ownership, employment and Han in-migration. It’s all tied up,” said Tom Cliff, a scholar at the Australian National University.

Beijing has promised subsidies to help cushion the impact of ending stockpiling, but the total amount is unclear and with the local cotton price plunging any threat to the industry could be a fresh source of competition for jobs.

via Top China cotton producer resists reforms in restive Xinjiang | Reuters.

20/02/2015

Sri Lanka reviews land transfer to China as port deal draws scrutiny | Reuters

Sri Lanka is reconsidering the outright transfer of a parcel of land to China under a $1.5 billion port city deal signed by a previous government, the energy minister said, amid concerns it could be used for Chinese naval activity.


Embed from Getty Images

China’s port and other infrastructure investments in Sri Lanka are under the scanner ever since former president Mahinda Rajapaksa lost power in an election last month. He had pursued close ties with Beijing, drawing neighboring India’s ire.

Under the plan, 108 hectares of land next to the main commercial port of Colombo would be taken over by China Communications Construction Co Ltd, including 20 hectares on an outright basis and the rest on a 99-year lease.

The development would include shopping malls, water sports, golf, hotels, apartments and marinas.

“There is a new suggestion not to give freehold land and that land should be controlled and subjected to the Sri Lankan law,” Power and Energy Minister Champika Ranawaka told a Foreign Correspondents Association Forum.

India, which lost out to China in infrastructure development on the Indian Ocean island, was in particular worried about the security threat posed by Chinese ownership of land, aggravated by the docking of submarines in Colombo last year.

via Sri Lanka reviews land transfer to China as port deal draws scrutiny | Reuters.

20/02/2015

Big data reveals movement of New Year travelers – China – Chinadaily.com.cn

Beijing and other first-tier cities in China remain the major sources of outflux of passengers in this Spring Festival travel rush but the capital is also one of the top three destinations for the influx of travelers, according to search engine giant Baidu.com.

Big data reveals movement of New Year travelers

This is an indication that an increasing number of people who work or study away from their hometowns are choosing to invite their families to celebrate Spring Festival at big cities rather than head home.

According to the latest data until Monday morning, the top five cities that saw most outflow of passengers were Beijing, Shenzhen, Shanghai, Dongguan and Guangzhou, where there are huge number of migrant workers.

The top five cities of influx of travelers were Chongqing, Ganzhou in Jiangxi province, Beijing, Yulin in Guangxi Zhuang autonomous region, and Fuyang in Anhui province. Apart from Beijing, the other four cities have been major sources of labor flow over the years.

An interactive map by baidu.com shows China’s top 10 cities with the largest outflux of travelers.

Big data reveals movement of New Year travelers

The trips from Shanghai to Lu’an, and Fuyang, two cities in East Anhui province, were the two busiest travel routes, the data showed.

Beijing to Zhoukou, Central Henan province, and Beijing to Harbin, Northeast Heilongjiang province, were also on the list of the 10 busiest travel routes. The other busy travel routes on the list include Shenzhen to Chongqing in Southwest China, and to Huanggang, Central Hubei province.

The list showed the difference of the sources of migrant workers in the three first-tier cities.

Baidu has been tracking the mass movement of people for this year’s Spring Festival, or the Lunar New Year, since February 7, three days after the kick-off of the annual Spring Festival travel rush, also known as chunyun in Chinese.

The Ministry of Transport is anticipating an overall holiday-season passenger flow of more than 2.8 billion person-times in this year’s Spring Festival travel, a 3.4 percent growth over 2014.

The interactive map of the research, which can be seen at http://qianxi.baidu.com/, is updated hourly, and has been logging the locations in which data requests were made to its maps service.

via Big data reveals movement of New Year travelers – China – Chinadaily.com.cn.

20/02/2015

Don’t Wear Pig T-Shirts in Dubai: Xinhua’s Official Online Guide for Chinese Tourists – China Real Time Report – WSJ

China’s numerous fans of the novel “Cloud Atlas” will be familiar with author David Mitchell’s adage: There ain’t no journey what don’t you change you some.

As many in the world’s most populous country pack their bags this week and leave on jet planes for horizons far, authorities here are hoping that Chinese travelers, too, will transform – specifically by becoming more mannerly international travelers.

After a series of embarrassing recent incidents, China’s state-run media Xinhua recently did its part to help citizens discern good behavior from bad by publishing an online guide to overseas etiquette. “Who wants to be labeled uncivilized by foreigners?” asks the Xinhua article, published a few days ahead of this year’s Spring Festival Holiday.

To avoid that, the piece offers advice to travelers, including items tailored to specific destinations.

Doing Dubai? Don’t talk about pigs. And don’t wear items of clothing that have images of pigs on them. (Thanks for the fashion tip Xinhua.)

On Safari in Kenya? Please, get permission before posing and saying “cheese!” next to Masai warriors. And keep your hands off that ivory.

The same applies to coral: It belongs in Fiji and not on auntie’s shelf in Fujian province.

Vacationers from the People’s Republic have acquired a reputation for being unruly at times, and have lately made global headlines by attacking flight attendants, fighting in airplane aisles and opening emergency doors in non-emergency situations. Recent incidents have led China to consider establishing an air-passenger blacklist that would ban travelers who continually misbehave.

A relative newcomer to overseas vacations, China has been quick to catch the travel bug. According to the China National Tourism Administration, more than 100 million Chinese ventured abroad in the eleven month period ending November last year. By contrast, in 1998 that number was just 8.4 million. In a recent report, Hong Kong brokerage CLSA said it expects the total number of Chinese outbound travelers to hit 200 million in 2020.

via Don’t Wear Pig T-Shirts in Dubai: Xinhua’s Official Online Guide for Chinese Tourists – China Real Time Report – WSJ.

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