Archive for ‘Economics’

01/03/2013

* Hurun rich list stirs Chinese zodiac discussion

English: The carvings with Chinese Zodiac on t...

English: The carvings with Chinese Zodiac on the ceiling of the gate to Kushida Shrine in Fukuoka ) (Photo credit: Wikipedia)

SCMP: “The publication of the Hurun Global Rich List 2013, which revealed the top 10 wealthiest Chinese billionaires, on Thursday has triggered discussion among Chinese netizens about the Chinese zodiac signs of the rich.

 

The dragon is the most common zodiac sign among the billionaires, followed by the horse, said a post by China’s Global Times.

Commenting on the list of billionaires, one netizen wrote, “Chinese officials must be laughing at this so-called ‘rich list’.”

Others chimed in with comments on Chinese zodiac signs. “Dragons are born with a kind of self-confidence. They are destined to play a strong role,” one said.

Another claimed, “I will give birth to a ‘dragon baby’ and a ‘horse baby’!”

A third wrote, “Global Times, mind your own business.”

The report, compiled by the Shanghai-based Hurun Research Institute, showed that Hong Kong entrepreneurs make up the majority of the list, followed by those from Beijing, Shanghai and Shenzhen.

The top industry sector favoured by the Chinese billionaires on the list is real estate, followed by manufacturing, finance and investment, and information technology.”

via Hurun rich list stirs Chinese zodiac discussion | South China Morning Post.

01/03/2013

* Returning overseas students on the rise

China Daily: “China has seen a surge in the number of students returning to the country after studying overseas, the Ministry of Education said on Thursday.

English: Zhang Yesui(Chinese Ambassador to the...

English: Zhang Yesui(Chinese Ambassador to the United States), his wife and Chinese overseas student in America 中文: 张业遂(中国驻美大使)夫妇与中国留学生 (Photo credit: Wikipedia)

More than 272,000 people returned last year, 86,700 more than in 2011, a 46 percent increase, according to the authority.

At the same time, 399,600 students went abroad, up 17.65 percent.

The country is actively encouraging students to return home after studying overseas, Zhang Xiuqin, director of the Ministry of Education’s department of international cooperation and exchanges, said at a news conference on Thursday.

“The ministry holds entrepreneur competitions and encourages enterprises to hire talent from overseas,” she said. “The ultimate goal is to attract more and avoid a brain drain, which is a global problem.”

According to the ministry, of the 2.64 million students who have gone abroad since 1978, 1.09 million — about two-fifths — have returned.

However, Zhang said the number of returnees has risen year-on-year.

The latest annual report on the development of Chinese studying abroad, which was compiled by the Center for China and Globalization and Mycos, an independent consulting firm, said that in 2011 the return rate reached 36.5 percent.

The report found that more overseas students are willing to return. The top two reasons are more economic opportunities and career development.”

via Returning overseas students on the rise |Society |chinadaily.com.cn.

01/03/2013

* China plans bond overhaul to fund $6 trillion urbanization

Reuters: “China plans major bond market reform to raise the money the ruling Communist Party needs for a 40 trillion yuan ($6.4 trillion) urbanization program to buoy economic growth and close a chasm between the country’s urban rich and rural poor.

A man walks past a construction site for a new stadium in Mentougou district, suburb of Beijing February 28, 2013. REUTERS-Kim Kyung-Hoon

The Party aims to bring 400 million people to cities over the next decade as the new leadership of president-in-waiting Xi Jinping and premier-designate Li Keqiang seek to turn China into a wealthy world power with economic growth generated by an affluent consumer class.

The urban development would be funded by a major expansion of bond markets, sources with leadership ties, and a senior executive at one of China’s “Big Four” state banks, who was formerly at the central bank, told Reuters.

“The urbanization drive will push the domestic capital market liberalization agenda,” the senior bank executive said on condition of anonymity. “Urbanization is Li Keqiang’s big project. He has to get it right and he is willing to pursue innovation to make it a success.”

Set to be confirmed as premier at the end of the annual meeting of China’s rubber-stamp parliament, which opens next week, Li must find ways to pay for the urban development that he has made a policy priority.

Central and local governments, as well as bank loans, will fund the costs, the sources said. But, sweeping reforms to create a fully-functioning municipal bond market, boost corporate and high-yield bond issuance and actively steer foreign capital into the sector, are crucial to raising the sums of money China will need, they added.

Despite its ranking as the second-largest economy globally after three decades of stellar growth, China remains an aspiring middle-income country riven with inequality and dependent on state-backed investment.

“If we continue to walk down the path of government spending, it’ll be like wearing new shoes, but walking the old road,” a source with leadership ties said, requesting anonymity to avoid repercussions for speaking to foreign media without authorization.”

via Exclusive: China plans bond overhaul to fund $6 trillion urbanization – sources | Reuters.

28/02/2013

* A Silicon Valley Campus with Chinese Characteristics

Reuters: “Like most of China’s high-tech manufacturers, Semiconductor Manufacturing International Corp. is located in an outsized and relatively isolated technology park.

But unlike the bulk of China’s electronics manufacturers, which set up cramped dormitories and massive dining facilities to manage legions of workers who come to do basic assembly, SMIC’s campus is actually pleasant.

Located within walking distance of its production facilities, apartment buildings in SMIC’s residential zone are brightly painted and framed by well-manicured trees. A short stroll across a canal leads to an area populated by villas that seem more suited to an American Sun Belt suburb than a technology park in Shanghai’s Pudong district.”

via A Silicon Valley Campus with Chinese Characteristics – China Real Time Report – WSJ.

28/02/2013

* China nears approval of $16 billion domestic jet-engine plan

Xinhua: “China’s cabinet may soon approve an aircraft engine development program that will require investment of at least 100 billion yuan ($16 billion), state-run Xinhua news agency quoted unidentified industry sources as saying.

A woman walks past the Aviation Industry Corporation of China (AVIC) headquarters building in Beijing October 30, 2012. REUTERS/Jason Lee

China is determined to reduce its dependency on foreign companies like Boeing Co (BA.N), EADS-owned Airbus (EAD.PA), General Electric Co (GE.N) and Rolls Royce Plc (RR.L) for the country’s soaring demand for planes and engines.

So far the domestic aerospace industry has failed to build a reliable, high-performance jet engine to end its dependence on Russian and Western makers for equipping its military and commercial aircraft.

Xinhua on Thursday quoted an unidentified professor at the Beijing University of Aeronautics and Astronautics (BUAA) with knowledge of the project as saying the investment would be used mainly for research on technology, designs and materials related to aircraft engine manufacturing.

The project was going through approval procedures in the State Council and may be approved shortly, the professor was quoted as saying.

Participants in the project include Shenyang Liming Aero-Engine Group Corp, AVIC Xi’an Aero-Engine (Group) Ltd (600893.SS) and research institutes including the BUAA, Xinhua reported.

Aviation Industry Corporation of China (AVIC), the country’s dominant military and commercial aviation contractor, had lobbied the government to back a multi-billion dollar plan to build a high-performance jet engine.”

via China nears approval of $16 billion domestic jet-engine plan: Xinhua | Reuters.

27/02/2013

* Apple Acts to Crack India Market for iPhone

WSJ: “Apple Inc.  is overhauling its iPhone operations in the crucial Indian market, attempting to chip away at Samsung Electronics Co.’s  dominance by adjusting to the country’s retailing rules and convoluted distribution process.

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But the Cupertino, Calif., company still has a long way to go.

That’s no small matter as Apple’s growth slows in the U.S. and other mature markets. India is poised to become the world’s third-largest smartphone market this year, behind China and the U.S., according to Strategy Analytics.

Apple doesn’t have any of its own retail outlets in India and relies on distributors and resellers, such as this Croma store in Mumbai.

Apple is sidestepping wireless carriers to seize greater control over marketing in India and offering no-interest loans to lure lower-income consumers. The company has also boosted staff in India by 30% to 170 employees in the past six months. And it is ramping up the introduction of other products, with the Apple TV video-streaming gadget expected to reach stores in coming weeks, people familiar with the matter say.

The result is that Apple shipped more than 252,000 iPhones to India in the quarter through December, more than triple the number in the previous three months, according to research firm Canalys.

Yet Apple accounts for just 5% smartphone shipments to India, compared with 40% for market leader Samsung. The South Korean company surged ahead by making India a high-priority market earlier than Apple did and offering a range of phones based on Google Inc.’s  Android software that start at just over $100. An older generation iPhone sells for around $500 while the latest model starts at nearly $850.”

via Apple Acts to Crack India Market for iPhone – WSJ.com.

25/02/2013

* Pfizer Seeks Alliances in China

WSJ: “New York-based Pfizer Inc.,  the world’s largest drug company, plans to forge more alliances in China as pharmaceutical companies combat shrinking margins in one of the world’s fastest-growing health-care markets.

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“We’re open for collaboration,” said Wu Xiaobing, Pfizer’s country manager for China, noting that he is looking for partnerships in the research, manufacturing and marketing of drugs. “If we were alone, it would take such a long time to make our drugs accessible to patients.”

Foreign drug makers are increasingly turning to local partners to expand their access in China, among Asia’s most promising pharmaceutical markets. They are also facing a big wave of patent expirations globally.

Pfizer already has a joint venture in the world’s second-largest economy with Zhejiang Hisun Pharmaceuticals to develop generic drugs, which dominate China’s pharmaceutical sales. Pfizer also has a minority investment in Shanghai Pharmaceuticals Holding Co.,one of China’s largest drug distributors, and its animal health division has a JV with China’s Jilin Guoyuan Animal Health Co. for animal vaccines.

Meanwhile, Merck & Co , the world’s second-largest drug company, recently formed a joint venture with China’s Simcere Pharmaceutical Group  to develop and sell drugs.

“You can expect to see more momentum going forward,” said Jin Wang, a Shanghai-based partner at McKinsey & Co. “Both multinationals and locals are excited by the growth potential in this market, and they are all facing limitations in terms of their portfolio and capabilities, so they’re teaming up.”

via Pfizer Seeks Alliances in China – WSJ.com.

25/02/2013

* Measures curb illegal ivory trade in China

Today the elephant, tomorrow the rhino and the day after sharks (fin).

China Daily: “China’s strict registration and management system can effectively keep illegal ivory from entering the domestic market, experts say.

Measures curb illegal ivory trade in China

According to Jin Yu, a researcher at Northeast Forestry University, China has launched an information control system stricter than the standards of the Convention on International Trade in Endangered Species of Wild Fauna and Flora, also known as CITES.

Seized elephant tusks are displayed by customs authorities in Hong Kong in October. Ivory smuggling has fallen due to strict law enforcement in China in recent years. [Provided to China Daily]

CITES is an international convention that regulates the ivory trade, and monitors ivory stockpiles, consumption and products.

“On every finished product, there is an ID card with information regarding the product’s appearance, size and digital code, which can be used to obtain further information, including its original material, from an online database,” she said.

“It’s the only way to prove an ivory product is legal and should always be carried when selling or transporting ivory.

“Any trade without such a certificate can be identified as illegal.”

However, lack of expertise and experience may cause inaccurate surveys and reports that lead to allegations that the market has ivory products from illegal sources, Jin said.”

via Measures curb illegal ivory trade in China[1]|chinadaily.com.cn.

25/02/2013

As China matures and its labour policies and pay improves, it will become less competitive for low-cost production. The question is: can China move up the manufacturing value chain fast enough to avoid the predictable problems it will face?

See also:

24/02/2013

* Migrant workers invited to prominent holiday gala

Xinhua: “Four migrant workers were invited to a high profile gala on Saturday evening, which was once mainly reserved for distinguished intellectuals.

Chinese leaders Xi Jinping, Li Keqiang, Zhang Dejiang, Yu Zhengsheng, Liu Yunshan, Wang Qishan and Zhang Gaoli were present at the event organized by the Communist Party of China (CPC) Central Committee to mark the upcoming Lantern Festival.

New guests to this year’s show also include representatives from different sectors and model workers.

Liu Yunshan hosted the gala and in his speech highlighted the contribution of intellectuals and ordinary workers to the country’s achievements and called for joint efforts from ordinary workers in all walks of life to contribute to the nation’s great rejuvenation.

China has 260 million migrant workers by 2012. They usually leave their hometown to seek employments in urban areas.

The Lantern Festival falls on Sunday this year and traditionally marks the end of the Spring Festival season.”

via Migrant workers invited to prominent holiday gala – Xinhua | English.news.cn.

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