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

30/08/2013

European Nations Woo Chinese Home Buyers With Visas

BusinessWeek: “Southern Europe’s cash-strapped governments are wooing wealthy home buyers from overseas by offering so-called golden visas to purchasers of high-end properties. Portugal, Greece, and Cyprus are offering temporary-residency permits to foreign investors, and Spain is about to kick off its program. The main targets are wealthy Chinese, who have been snapping up properties from Vancouver to London as Beijing tightens controls on real estate speculation on the mainland. Luis Hortelão, a broker with Re/Max in Lisbon, says his Chinese clients “know exactly what they want: a modern property to rent out during their absence and a visa to travel in Europe.”

Limassol, Cyprus

In Portugal buyers must pay a minimum of €500,000 ($670,000) for a property to be eligible for a five-year residency permit. A total of 102 visas has been granted since the program began last year, according to the Portuguese Immigration and Borders Service, mostly to Chinese buyers. Edmund Zhao, a real estate developer from Hangzhou in eastern China, expects to receive his permit any day now after paying €700,000 for an apartment in the resort town of Cascais. Zhao must spend at least seven days in Portugal during the first year and 14 days every two years thereafter. His visa will also let him travel freely through the Schengen Area, made up of 26 European countries that have abolished immigration controls at their borders. “I want to move there with my wife and parents as soon as possible,” says Zhao, 38, who wants to send his future children to European schools.

Searches for Portuguese properties on Juwai.com, a Chinese real estate website aimed at international home buyers, rose more than threefold from January through April, says Andrew Taylor, its co-chief executive officer. Home prices in Portugal are less expensive than in some parts of China; €300,000 buys a 2,000-square-foot villa facing the sea, according to Wang Ning, a manager in the international property department at SouFun Holdings (SFUN), owner of China’s biggest real estate website. That amount buys a 730-square-foot apartment in central Shanghai.”

via European Nations Woo Chinese Home Buyers With Visas – Businessweek.

Posted in austerity, China alert, Economics, emigration | Leave a Comment »

Tags: Beijing, China, chinese clients, Cyprus, immigration controls, Lisbon, London, Portugal, portuguese immigration, real estate speculation, Schengen Area

30/08/2013

Pricey dollar puts South Africa, Australia on Indian tourists’ maps

Reuters: “When Aparupa Ganguly visited South Africa in 2007, the country’s topography and wildlife made such an impression on the communications professional that she couldn’t wait to come back. Ganguly got her wish six years later – thanks to a stable rand.

Foreign-bound Indian travellers such as Ganguly are realizing that holidaying in countries such as South Africa and Australia offers value for money as their currencies have been largely stable in recent weeks and haven’t appreciated as much against the rupee, when compared to the dollar or the euro.

Data shows the South African rand and the Australian dollar have gained around 10 percent since May, compared to a near 30 percent surge in the U.S. dollar which hit a record high above 68 per rupee on Wednesday.

Ganguly, who accompanied her husband on a business trip to South Africa this month, bought the rand at about 6.2 per rupee and travelled across the Garden Route, a scenic tourist area on the country’s south-eastern coast.

“If the rand would have really gone up, I wouldn’t have accompanied him,” said the 35-year-old who spent around 230,000 rupees ($3,380) on her trip this month.”

via India Insight.

Posted in Affluence, Economics, India alert, Tourism | Leave a Comment »

Tags: Australia, economic factors, Garden Route, India, indian travellers, Rupee, South Africa, South African rand, tourist area

30/08/2013

Daimler’s Mercedes-Benz sees double-digit growth in China market

Reuters: “Daimler AG‘s Mercedes-Benz expects to see growth of up to 15 percent in China’s luxury car segment this year, a senior executive said, and is trying to grab a bigger share of that market by expanding into the inland-west and smaller cities.

The company plans to open 75 new dealer outlets this year, nearly half in third- and fourth-tier cities, said China sales head Nicholas Speeks, as part of a broader turnaround plan to reverse its recent struggles in the world’s biggest auto market.

“We are a little bit lagging behind our principal competitors in terms of outlets opening,” Speeks told reporters at a news briefing to outline the German brand’s strategy at the Chengdu auto show on Friday.

“In the past we have been concentrating on Beijing, Shanghai (and other major markets along China’s coast). We recognize one of our shortcomings is the fact that we need to expand our dealer network.”

The network expansion is a key component of Daimler’s (DAIGn.DE) strategic plan to invest 2 billion euros ($2.67 billion) in China over the next two years.

It aims to boost sales of Mercedes-Benz cars by a third to more than 300,000 cars a year by 2015, from this year’s forecast sales of 230,000 cars.

If achieved, the target would make China Mercedes-Benz’s biggest market globally. Currently, China is the brand’s No. 3 market behind Germany and the United States.

Speeks said China’s economy remained “fairly healthy”, despite a slowdown in growth.

China’s overall car market was expected to grow about 10 percent, year-on-year, this year, he said. “I think the premium car market will exceed that. It will be solid double-digit growth this year.”

Asked to define that, he said: “13-15 percent growth – somewhere in that ball park.””

via Daimler’s Mercedes-Benz sees double-digit growth in China market | Reuters.

Posted in Affluence, China alert, Economics, luxury brand | Leave a Comment »

Tags: Beijing, car segment, Chengdu, China, Daimler, Daimler AG, dealer outlets, double digit growth, Germany, mercedes benz cars, Mercedes-Benz, turnaround plan

29/08/2013

India Rupee Gains 3.5%, Pulls Shares Sharply Higher

WSJ: “India‘s rupee rose 3.5% Thursday, erasing most of the currency’s losses in the previous session when it hit a record low, helped by a central bank step to reduce dollar demand in the spot market.

The sharp rupee recovery also pulled local stocks higher, with the Bombay Stock Exchange‘s S&P BSE Sensex index closing 2.3% up at 18401.04 points. On the National Stock Exchange, the Nifty index gained 2.4% to end at 5409.05 points.

The rupee was at 66.55 to the dollar in late Asian trade Thursday, compared with the record low of 68.80 it hit late in the previous session.

The Reserve Bank of India said late Wednesday that it would sell dollars to the country’s three state-run oil refiners through a designated commercial bank, shifting the bulk of the refiners’ demand for dollars away from the open market. Oil refiners are India’s biggest buyers of dollars, which they use to pay for crude-oil imports.”

via India Rupee Gains 3.5%, Pulls Shares Sharply Higher – WSJ.com.

Posted in Economics, India alert | Leave a Comment »

Tags: Bombay Stock Exchange, bse sensex index, Business, Central bank, crude oil imports, economy, India, Indian rupee, national stock exchange, oil refiners, Reserve Bank of India

29/08/2013

India’s parliament gets its groove back, at least for now

Reuters: “(Any opinions expressed here are those of the author and not of Thomson Reuters)

India’s notoriously disruptive parliament has been going through a productive phase in the past two days. Bills are getting passed, politicians are discussing the state of the economy and for a change, members are listening to each other as they deliver well-researched speeches.

For a house with one of the poorest records of accomplishments in Indian history, the last two days were downright atypical.

On Monday, parliament debated a $20 billion plan for nine hours to provide cheap food to two thirds of the population. For a change, the government got the main opposition party on board by incorporating some of the changes that its opponents proposed.

A similar script played out on Tuesday. Politicians from all parties discussed the state of the economy, reeling under a widening current account deficit, slowing growth and a falling currency.

The opposition party’s well thought-out arguments moved Finance Minister P. Chidambaram to admit that domestic factors indeed have played a part in creating the dismal economy, a rare statement coming from the man who usually blames the global financial meltdown for India’s woes.

Chidambaram on Tuesday urged parliamentarians to work together.

“If parliament is not able to point to the direction in which the country’s economy will go, parliament is not able to agree on, say 10 steps which the government should take today … what kind of a message will it send to the rest of the world?” Chidambaram asked the house.

“The fact is, polity of this country is divided on economic policies and that is understandable … My plea to everyone, despite our differences, can we agree upon some measures which have to be taken in order to lift the country’s economy from what it is today,” he said.

Politicians are taking note. Derek O’Brien, the famous quizmaster who is now a lawmaker from estranged government ally Trinamool Congress, tweeted: “When #Parliament works we are very,very good.(like today)…but when we are bad we are horrid.”

The Lok Sabha, the lower house of India’s parliament, led by a minority Congress-party coalition government, has a rather dismal track record. Before the ongoing Monsoon session, it passed just 39 percent of tabled bills. In five years, the Lok Sabha has passed just over 150 bills, in contrast to an average 317 bills passed by any other lower house completing over three years.

The last two days have been different. This is what voters expect their representatives to do. If lawmakers keep it up, we might have one of the most successful sessions in recent memory. One would hope that the mood extends itself into the hurly burly of the 2014 campaign season.

What remains unanswered is what changed overnight and why the opposition parties suddenly stopped disrupting the house. It would be good to know. Whatever be the reason, one hopes that the country does not go back to when “Lok Sabha, Rajya Sabha adjourned for the day” was probably the most frequent breaking news headline on TV screens.”

via India’s parliament gets its groove back, at least for now | India Insight.

Posted in Economics, Good news, India alert, Politics | Leave a Comment »

Tags: Congress, current account deficit, financial meltdown, Government, India, Indian National Congress, Lok Sabha, main opposition party, p chidambaram, Parliament of India, politics, Rajya Sabha

29/08/2013

China environment min suspends some approvals for Sinopec, CNPC

Reuters: “China’s environment ministry will stop approving some new refining projects and upgrades of existing facilities by the country’s top state-owned oil firms after the two failed to meet key pollution targets in 2012, it said on Thursday.

Workers walk inside China National Petroleum Corporation (CNPC) Lanzhou Chemical Company in Lanzhou, capital of northwest China's Gansu province April 27, 2007. REUTERS/Jason Lee

The Ministry of Environmental Protection (MEP) said China National Petroleum Corporation (CNPC) failed to meet targets to cut chemical oxygen demand in 2012, while Sinopec Group failed to meet a target to cut nitrogen oxide emissions.

Officials from the companies were not immediately available for comment, although the Communist Party mouthpiece People’s Daily said the MEP’s move would have no impact on 790,000 barrels per day of refining capacity now under construction.

The ministry said in a notice posted on its website (www.mep.gov.cn) that it would suspend approvals of environment impact assessments for all new refining projects from the two oil giants, apart from any upgrades that target fuel pollution specifications or other environmental renovations.

“Such tough punishment on the two oil majors is unprecedented – it is a warning to others,” said Wang Tao, resident scholar at the Energy & Climate Program of the Carnegie-Tsinghua Center for Global Policy in Beijing.

“But the MEP has only suspended approval for their new refineries, and what we really need is for them to take strong measures to curb pollution from existing refineries,” said Wang.

CNPC is the parent of PetroChina, China’s dominant oil and gas producer. Sinopec Group is the parent of top Asian refiner Sinopec Corp.

The MEP and its local branches have struggled to impose their will on state-owned industrial enterprises, which are big sources of economic growth as well as pollution. But Beijing has promised to get tough on firms accused of ignoring environmental rules or approval procedures.

People’s Daily said on Thursday the decision “demonstrated China’s determination when it comes to pollution emissions.””

via China environment min suspends some approvals for Sinopec, CNPC | Reuters.

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

Tags: China National Petroleum Corporation, China Petrochemical Corporation, environment, national petroleum corporation, PetroChina, Sinopec

28/08/2013

China Launches Three ASAT Satellites

Washington Free Beacon : “China’s military recently launched three small satellites into orbit as part of Beijing’s covert anti-satellite warfare program, according to a U.S. official.

The three satellites, launched July 20 by a Long March-4C launcher, were later detected conducting unusual maneuvers in space indicating the Chinese are preparing to conduct space warfare against satellites, said the official who is familiar with intelligence reports about the satellites.

One of the satellites was equipped with an extension arm capable of attacking orbiting satellites that currently are vulnerable to both kinetic and electronic disruption.

“This is a real concern for U.S. national defense,” the official said. “The three are working in tandem and the one with the arm poses the most concern. This is part of a Chinese ‘Star Wars’ program.”

China’s 2007 test of an anti-satellite missile shocked U.S. military and intelligence leaders who realized the U.S. satellites, a key to conducting high-performance warfare, are vulnerable to attack. Officials have said China could cripple U.S. war-fighting efforts by knocking out a dozen satellites. Satellites are used for military command and control, precision weapons guidance, communications and intelligence-gathering.

The official discussed some aspects of the Chinese anti-satellite (ASAT) program on condition of anonymity after some details were disclosed in online posts by space researchers.

“The retractable arm can be used for a number of things – to gouge, knock off course, or grab passing satellites,” the official said.

The three satellites also could perform maintenance or repairs on orbiting satellites, the official said.

Details of the small satellite activity were first reported last week in the blog “War is Boring.”

The posting stated that one of the satellites was monitored “moving all over the place” and appeared to make close-in passes with other orbiting satellites.

“It was so strange, space analysts wondered whether China was testing a new kind of space weapon — one that could intercept other satellites and more or less claw them to death,” the report said.

The U.S. official said: “It is exactly what was reported: An ASAT test.”

According to space researchers who tracked the satellites movements, one of the satellites on Aug. 16 lowered its orbit by about 93 miles. It then changed course and rendezvoused with a different satellite. The two satellites reportedly passed within 100 meters of each other.

One space researcher was quoted in the online report as saying one satellite was equipped with a “robot-manipulator arm developed by the Chinese Academy of Sciences.”

The Chinese appear to be testing their capability for intercepting and either damaging or destroying orbiting satellites by testing how close they can maneuver to a satellite, the U.S. official said.

“They are learning the tactics, techniques and processes needed for anti-satellite operations,” the official said.

The Chinese have given a code name to the satellites and numbered the satellites differently. Chinese state-run media identified the satellites as the Chuang Xin-3 (Innovation-3); the Shi Yan-7 (Experiment-7); and Shi Jian-15 (Practice-15). The Shi Jian-15 is believed to be the satellite with the robotic arm. The official said the designation used in the blog, SY-7, was not correct.”

via Washington Free Beacon » China Launches Three ASAT Satellites » Print.

Posted in Aerospace, China alert, Economics, GeoPolitics, Politics, Technology | Leave a Comment »

Tags: Anti-satellite weapon, Beijing, China, Chinese, Chinese Academy of Sciences, Long March 4C, orbiting satellites, precision weapons, satellite activity, star wars program

27/08/2013

China’s Shanghai Tower: A massive urban green space

If true, very impressive.

Posted in China alert, Economics, Technology | Leave a Comment »

Tags: economy, technology

26/08/2013

Mooncake Austerity Hits China’s Mid-Autumn Festiva

WSJ: “First baijiu, then red carpets, and now mooncakes. For Chinese government officials, the list of taboos keeps getting longer.

One month before the country celebrates its annual Mid-Autumn Festival, Chinese authorities said Wednesday that they are barring officials from buying mooncakes—a centerpiece of the holiday—as well as giving presents or hosting dinners on the public dime.

Traditionally, mooncakes are gifted (and often re-gifted) as a form of tribute during the festival, exchanged among family members as well as among companies, their clients and employees. “But this kind of polite reciprocity, when overdone, becomes a kind of squandering of cash,” ran an editorial in the People’s Daily on Thursday, praising the mooncake crackdown.

About the size of a hockey puck and traditionally stuffed with anything from red bean paste to salted egg yolk, these days, the once-humble mooncake is barely recognizable. Some are now made of solid gold and others come swathed in pure silk. Such is the luxury nature of some mooncakes that in past years, talk of a “mooncake bubble” circulated, while in 2011, China’s government proposed that workers pay income tax on the value of cakes gifted to them by their employers.

Given the frenetic pace of mooncake gift-giving, they’ve long been seen as an easy vehicle for corruption. Many environmental NGOs have also condemned the modern crop of mooncakes, criticizing their elaborate packaging as wasteful.

This week’s mooncake crackdown is part of a broader attempt to quell anger about public corruption, which in recent years has been stoked by the sight of officials gorging on lavish banquets and indulging in other excesses, including luxury watches and more. Thursday’s editorial in the People’s Daily, for example, cited the anti-mooncake move as part of President Xi Jinping’s effort to educate Party members about the evils of the “Four Winds,” i.e. “formalism, bureaucracy, hedonism and waste.”

On Thursday, some users on Sina Weibo, China’s popular Twitter-like microblogging service, though, were less than impressed. “”The system doesn’t change, these kinds of trivialities aren’t of any use,” wrote one.

Others mourned the idea that the confections were facilitating corruption. “A holiday that was once simple and pure has been transformed by China’s corrupt bureaucracy into something with a different meaning,” wrote another. “How sad.”

Still others took the opportunity to rail against mooncakes in general. Despite the holiday zeal for them, many languish uneaten for weeks after they’ve been gifted. “They’re just a mix of stuff high in fat, high in sugar, and high in additives,” wrote one user.

“They’re not tasty and they’re expensive,” added another. “No wonder that other than during the Mid-Autumn festival, people don’t eat them.””

via Mooncake Austerity Hits China’s Mid-Autumn Festival – China Real Time Report – WSJ.

Posted in China alert, corruption, Economics, Politics | Leave a Comment »

Tags: China, Government of the People's Republic of China, Mid-Autumn Festival, Mooncake, politics, Sina Weibo, Xi JinPing

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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European Nations Woo Chinese Home Buyers With Visas

Pricey dollar puts South Africa, Australia on Indian tourists’ maps

Daimler’s Mercedes-Benz sees double-digit growth in China market

India Rupee Gains 3.5%, Pulls Shares Sharply Higher

India’s parliament gets its groove back, at least for now

China environment min suspends some approvals for Sinopec, CNPC

China Launches Three ASAT Satellites

China’s Shanghai Tower: A massive urban green space

Mooncake Austerity Hits China’s Mid-Autumn Festiva

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