Archive for ‘Economics’

17/06/2014

China’s Gray-Haired Set Could Boost Digital Shopping – China Real Time Report – WSJ

Online shopping in China isn’t just for the young, according to a new survey. That could be good news for an already quickly growing e-commerce industry that largely caters to the young.

While the bulk of online shoppers are still in their 20s and 30s, a survey published Tuesday by data provider Nielsen said the number of online consumers aged 55 or older grew 72% between 2012 and 2013. It cited data from Taobao, one of China’s largest shopping websites, which is owned by Alibaba Group, though it didn’t release the underlying figures.

“China could become the world’s most aged society by 2030,” said Tao Libao, a Nielsen official with responsibility for e-commerce, in a prepared statement. “The elderly online consumers deserve more attention from both current online retailers and brick-and-mortar retailers who are going to venture online.” People aged over 60 could be 30% of China’s population by 2030, Mr. Tao said.

They survey said they tend to be more careful shoppers, attracted by easy price comparisons and special discounts given that they often have less income than younger people.

“It’s cheaper to buy online,” said Zhang Jinnian, a Beijing shopper in her fifties who has been using the internet to shop for the past year. In that time she has bought clothes, shoes and a bicycle online. “It’s always more expensive in a store,” said Ms. Zhang, who declined to give her exact age.

via China’s Gray-Haired Set Could Boost Digital Shopping – China Real Time Report – WSJ.

17/06/2014

Top China diplomat to visit Vietnam in possible thaw over oil rig | Reuters

China’s top diplomat will visit Vietnam on Wednesday in a sign the two countries want to ease tensions over China’s deployment of an oil rig in the disputed South China Sea, but experts said there were many obstacles to healing the ruptured relationship.

Map of the South China Sea

Map of the South China Sea (Photo credit: Wikipedia)

The visit by State Councilor Yang Jiechi, who outranks the foreign minister, will be the highest level direct contact between Beijing and Hanoi since a Chinese state oil company parked the rig in waters claimed by both countries on May 2. Yang would attend an annual meeting on bilateral cooperation, Chinese Foreign Ministry spokeswoman Hua Chunying told a regular briefing. Vietnamese officials said Yang would meet Prime Minister Nguyen Tan Dung as well as the head of the country’s ruling communist party. “We hope that Vietnam keeps its eye on the broader picture, meets China halfway and appropriately resolves the present situation,” Hua said, without directly mentioning the rig. Vietnam’s Foreign Ministry spokesman Le Hai Binh said the rig would be discussed. Ties between the two neighbours have been largely frozen since early May, with both sides constantly accusing the other of inflaming the situation. Dozens of Vietnamese and Chinese coastguard and fishing vessels have repeatedly squared off around the rig, resulting in a number of collisions. via Top China diplomat to visit Vietnam in possible thaw over oil rig | Reuters.

14/06/2014

First there was fake Apple stores in China now fake Ikea shop found in Kunming | Mail Online

It seems that Kunming in the southwest corner of China is the world capital of knock-off shops.

Seem familiar? Employees push a shopping cart past the information desk at the lobby of the 11 Furniture Store

Apple recently found five counterfeit versions of its stores there after blogger BirdAbroad posted photos of one online – and now a fake Ikea has surfaced.

It’s called 11 Furniture and is a 10,000 square metre, four-storey replica that’s virtually identical to the Swedish-made version.

It copies Ikea’s blue-and-yellow colour scheme, mock-up rooms, miniature pencils, signage and even its rocking chair designs. Its cafeteria-style restaurant, complete with minimalist wooden tables, has a familiar look, although the menu features Chinese-style braised minced pork and eggs instead of Ikea’s Swedish meatballs and salmon.

This knock-off Ikea store is emblematic of a new wave of piracy sweeping through China. Increasingly sophisticated counterfeiters no longer just pump out fake luxury handbags, DVDs and sports shoes but replicate the look, feel and service of successful Western retail concepts — in essence, pirating the entire brand experience.

‘This is a new phenomenon,’ said Adam Xu, retail analyst with Booz&Co. ‘Typically there are a lot of fake products, now we see more fakes in the service aspect in terms of (faking) the retail formats.’

 

via First there was fake Apple stores in China now fake Ikea shop found in Kunming | Mail Online.

13/06/2014

Malnutrition: The hungry and forgotten | The Economist

THE propaganda message, scrawled in white paint on the side of a wood-frame house, could hardly be more blunt: “Cure stupidity, cure poverty”. The cure for both, in one of China’s poorest counties, seems to be a daily nutritional supplement for children. At a pre-school centre in Songjia, as in more than 600 other poor villages across China, children aged three to six gather to get the stuff with their lunch. If China is to narrow its urban-rural divide, thousands more villages will need to do this much, or more. Widespread malnutrition still threatens to hold back a generation of rural Chinese.

China used to have more undernourished people than anywhere in the world except India: about 300m, or 30% of the population in 1980. Economic growth has pulled half of them out of poverty and hunger. But that still leaves about 150m, mainly in the countryside. Out of 88m children aged six to 15 in the poorest rural areas, around a third suffer from anaemia because of a lack of iron, according to survey data. Iron deficiency can stunt brain development, meaning many of these children will grow up ill-equipped to better their lot. “They are far behind compared with urban kids,” says Lu Mai, secretary-general of China Development Research Foundation (CDRF), a government-run charity. Mr Lu and other experts have been prodding the government to do more. The state subsidises school lunches for 23m children in the 680 poorest counties, as well as nutritional supplements for hundreds of thousands of babies. It is not enough.

Even where children get the calories they need—as most do in rural China—they are not being fed the right things. In one study of 1,800 infants in rural Shaanxi province in China’s north-west, 49% were anaemic and 40% were significantly hampered in developing either cognitive or motor skills. Fewer than one in ten were stunted or wasting, meaning that in most cases the problem was not lack of calories, but lack of nutrients.

China shares this affliction with much of the developing world. But it has the resources to respond. Parents have the means to feed their babies properly. And with a relatively modest investment, the government could do a better job of improving childhood nutrition. The difficulties lie in educating parents—and officials.

Babies are probably 50% malnourished” in poor rural areas, says Scott Rozelle, co-director of the Rural Education Action Programme (REAP), a research outfit at Stanford University which has done extensive tests on anaemia in rural China. “But almost no mums are malnourished.” Mr Rozelle says that in one of his surveys rural mothers showed a better understanding of how to feed pigs than babies: 71% said pigs need micronutrients, whereas only 20% said babies need them.

Mr Lu’s charity and REAP argue that a nutritional supplement called ying yang bao should be available to rural mothers. A powdery concoction of soyabeans, iron, zinc, calcium and vitamins, it is supposed to be sprinkled on food once a day. Each packet costs less than one yuan (16 cents) to produce and one yuan to distribute, paid by the government.

Trials conducted since 2006 have consistently shown that ying yang bao reduces anaemia and improves growth and development in infants and toddlers. But persuading parents of this (or grandparents, if the parents are off working in cities) has not been easy. About half give up feeding it to their children. “Poor people feel very suspicious”, Mr Lu says. They wonder if free supplements are unsafe, or fake. “Then they worry will we charge later?”

This may be the legacy in rural China of years of seeing government invest little—and often charge a lot—for basic services. Moreover, at the local level the workers who are meant to help mothers may well be family-planning officials responsible for controlling population, a role that hardly inspires trust.

At higher levels of government, too, officials need a lot of persuading that nutrition programmes are not a waste of public money. In 2011 China began instituting a programme similar to America’s federal school-lunch programme for the poor, at a cost of 16 billion yuan ($2.6 billion) a year. But one assessment suggests that perhaps half the schools are providing substandard, uncooked meals, partly because some local governments refuse to foot the bill for kitchens and cooks.

via Malnutrition: The hungry and forgotten | The Economist.

13/06/2014

Can Asia’s Biggest Low-Fare Airline, AirAsia, Make Money in India? – Businessweek

After successfully building the largest low-cost airline in Southeast Asia, AirAsia’s (AIRA:MK) chief executive, Tony Fernandes, is taking on one of his biggest challenges yet: Making money in a country with some of the highest operating costs in Asia. Today, AirAsia India, a joint venture with Tata Sons and Telestra Tradeplace, began flying in India, where a crowded market and high costs have pushed several major carriers into the red. Because of high jet fuel taxes and airport charges, operating an airline in India can cost as much as 60 percent more than in nearby countries, KPMG India partner Amber Dubey said on Bloomberg Television today.

An AirAsia India Airbus A320 takes off as it embarks on the carrier's inaugural domestic flight to Goa from the Kempe Gowda International Airport in Bangalore on June 12

But with new Prime Minister Narendra Modi inspiring confidence that things will finally change for the better in India, Fernandes “is very optimistic,” he told Bloomberg Television today. “State governments are very aviation friendly at the moment; there is a strong national government that has put tourism at the top of its agenda,” he said. “It’s all about the timing.” AirAsia is starting small in India, with only two planes, although Fernandes says the plan is scale up to six. At that level, “we are very confident of breaking even,” he said.

That won’t be easy. While India has several weak incumbents, such as Jet Airways (JETIN:IN) and SpiceJet (SJET:IN), the country is also home to IndiGo, the biggest domestic carrier by market share. IndiGo has plans to more than double its fleet to 150 planes by 2023, its president, Aditya Ghosh, told Bloomberg News in September. It has greeted AirAsia’s arrival by introducing group discounts of up to 25 percent and offering flights between Bangalore and Goa for one single rupee. With a fare war already under way, “no way can anyone make profits,” KPMG’s Dubey told Bloomberg Television today.

via Can Asia’s Biggest Low-Fare Airline, AirAsia, Make Money in India? – Businessweek.

13/06/2014

China’s top Taiwan official to make first visit to island | Reuters

China’s top official in charge of relations with Taiwan will make his first visit to the island later this month, state media said, following large-scale protests there against a controversial trade pact.

Head of the State Council Taiwan Affairs Office Zhang Zhijun (4th R) meets with Wang Yu-chi (4th L), Taiwan's mainland affairs chief, in Nanjing, Jiangsu province, February 11, 2014. REUTERS/China Daily

Zhang Zhijun, director of China’s Taiwan Affairs Office, will become the first head of the body ever to visit the self-ruled island, the official Xinhua news agency said late on Thursday.

He will spend four days in Taiwan, Xinhua said, and apart from visiting capital Taipei will also go to three other places, including Kaohsiung in the heavily pro-independence south of the island. China says it will not countenance an independent Taiwan.

 

China and Taiwan have been ruled separately since Nationalist forces, defeated by the Communists, fled to the island at the end of the Chinese civil war in 1949. China considers Taiwan a renegade province and has never ruled out the use of force to bring it under its control.

But in recent years the two sides have built up extensive economic ties, and in February they held their first direct government-to-government talks, in China, a big step towards expanding cross-strait dialogue beyond trade.

Yet booming trade has not brought progress on political reconciliation or reduced military readiness on either side. Many in Taiwan fear autocratic China’s designs for their free-wheeling island.

Protesters occupied Taiwan’s parliament and mounted mass protests over a three-week period starting in March in anger at a trade pact between China and Taiwan, which they fear will benefit wealthy companies with Chinese links and undermine Taiwan’s cherished democratic institutions.

via China’s top Taiwan official to make first visit to island | Reuters.

13/06/2014

Poland-China train leaves the station on first trip – World – Chinadaily.com.cn

The first “New Silk Road” Yuxinou railway return train from Poland to China kicked off on Thursday, the Chongqing government said.

 

Starting in Chongqing, the 11,178 km Chongqing-Xinjiang-Europe International Railway passes through Xi’an, Lanzhou, Urumqi , Russia, Belarus and Poland, finally ending in Duisburg, Germany.

According to the government, it takes just 16 days on average to transport goods from China to Europe by rail, much less than via the sea.

Xu Qiang, director of the Development and Reform Commission of Chongqing Municipality, said China launched the first train from Poland to Chongqing to enhance cooperation between China and Europe.

“It is an important landmark for our New Silk Road, which will strengthen China’s bilateral economic ties with the regions along the railway,” Xu said.

In recent years, Poland and China have formed closer ties in political and economic perspectives, said Jacek Zuber, chief of the Department of International Cooperation Ministry of Infrastructure and Development of Poland.

“Yuxinou railway is one of the most important cooperation projects to us, especially as the railway will bring great opportunities to our trade with China,” he said.

The first train will bring electronic products, auto parts and steel products to Chongqing.

via Poland-China train leaves the station on first trip – World – Chinadaily.com.cn.

12/06/2014

China Minting Millionaires in Global Wealth Surge – Businessweek

Where do the world’s rich live? As has long been true, the U.S. has more millionaires (in U.S. dollars) than any other country, with 7.1 million. But China last year came in second with 2.4 million millionaire households, beating Japan with half as many. The number of millionaire families around the world reached 16.3 million last year, up from 13.7 million the year before.

Visitors crowd around a luxury yacht on display during the 19th China International Boat Show in Shanghai on April 10

All told, the total value of global private wealth grew far faster than global economic output, up 14.6 percent, to $152 trillion, compared with an 8.6 percent increase in 2012. Much of the new money originated in the Asia-Pacific region (excluding Japan), up by 30.5 percent, to $37 trillion. That put Asia in the No. 3 spot for riches, behind North America and Europe, according to the 14th annual survey on private wealth by Boston Consulting Group.

Driven by rapid GDP growth in China and India, Asia is expected to surpass North America and Europe as the leading source of global wealth in 2018. That year, the global pot of gold will total a bit less than $200 trillion, with the proportion from Asia projected to reach $61 trillion, slightly more than North America, with $59.1 trillion. “The Asia-Pacific region and its new wealth will account for about half of the total growth,” the report predicts.

via China Minting Millionaires in Global Wealth Surge – Businessweek.

12/06/2014

China’s plans to control South China Sea; Philippines and Vietnam are just the beginning

11/06/2014

Nawaz hopes to resolve unsettled matters with Modi – Pakistan – DAWN.COM

In a letter written to Indian premier Narendra Modi on Wednesday, Prime Minister Nawaz Sharif said he looked forward to working him in harmony to resolve all unsettled matters in the interest of the two nations.

Prime Minister Nawaz Sharif (L) and Indian premier Narendra Modi (R). — File photo

The premier also expressed satisfaction over his visit to India.

“I have returned satisfied with meaningful exchange of thoughts over regional issues and matters of mutual interest,” Sharif said.

“Million of people living in poverty in both countries deserve our foremost attention and their future is integrated with our common economic destiny,” Sharif said.

The premier further said that prosperity could be brought to both nations with concerted efforts.

He also said that he hoped that mutual endeavours by both countries would brighten their futures.

Sharif was invited to Prime Minister Modi’s swearing-in ceremony after the Bharatiya Janata Party (BJP) emerged victorious in the general elections held in the world’s largest democracy during the course of two months. The invitation was accepted after a series of consultations that the premier held with his close aides.

Sharif had also phoned Modi to congratulate him on his party’s win in the elections.

via Nawaz hopes to resolve unsettled matters with Modi – Pakistan – DAWN.COM.

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