Archive for ‘Economics’

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23/11/2012

* Atlas Copco nears buy of Shandong Rock

So, we see that acquisitions are not all one way. Swedish firm buys major stake in Chinese partner.

Reuters; “Swedish compressor and mining gear maker Atlas Copco is close to a deal to buy a 75 percent stake in Shandong Rock Drilling Tools Co Ltd from China’s Shandong Sanshan Group, sources in China familiar with the matter told Reuters.

The sources did not disclose any purchase price.

The deal for the stake in the rock drilling gear maker, based in the eastern province of Shandong and which has about 400 staff, included a stake in a steel mill, a source said.

“An agreement is expected to be finalized soon,” a Sanshan official said on Thursday, declining to be identified because they are not authorized to comment.

An Atlas Copco spokesman declined to comment.

Shandong Sanshan Group, of which Shandong Rock Drilling Tools is a major part, is a privately controlled Chinese firm with annual revenue of 400-500 million yuan ($65-$80 million), an official at the group said.”

via Exclusive: Atlas Copco nears buy of Shandong Rock – sources | Reuters.

Posted in China alert, Economics, mergers and acquisitions | Leave a Comment »

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22/11/2012

* Lone stand against wrecking ball

Even China cannot stop the determined individual protester. But this situation highlights the many protests against inadequate compensation for having to move home. The interesting thing about this post is that the source is China Daily, a state-sponsored news website.

China Daily: “An isolated five-floor building is standing in the middle of a new road that will soon be open in Wenling, Zhejiang province, the People’s Daily reported.

Lone stand against wrecking ball

A family from Xiazhangyang village insists on living on the isolated building, because they are not satisfied with the relocation compensation offered by the government, the neighbors said, according to the captions of the photos taken on Wednesday.

To guarantee their safety, neighboring rooms next to them are being kept from demolition, though the neighbors all moved out.

The road, which leads to the Wenling Railway Station, hasn’t been put into use yet.”

via Lone stand against wrecking ball[1]|chinadaily.com.cn.

Posted in China alert, Citizens's rights, Construction, demolition, Economics, Human rights, Justice, public protest | Leave a Comment »

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21/11/2012

* India to miss export target

Bad news for ruling Congress Party as national general elections are scheduled for next year.

WSJ: “India’s merchandise exports are set to fall way short of initial estimates because of a demand slowdown in key markets, shows a government projection that is likely to deepen concerns on the country’s financial health and hurt its currency.

India’s exports could be as low as $291 billion in the fiscal year through March, compared with the initial target of $360 billion, according to a trade ministry document. At best, that if market conditions improve dramatically from now, exports could total $300 billion to $320 billion.

via India to Miss Export Target – WSJ.com.

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21/11/2012

* Construction on Chery-Jaguar Land Rover JV starts in east China

Jaguar-Land Rover is following a path long set by other top-end car makers like Mercedes and BMW. It will, hopefully, not mean a reduction of jobs in the UK.

Xinhua: “Construction of a joint venture (JV) project between China’s auto giant Chery and Britain-owned luxury carmaker Jaguar Land Rover (JLR) started Sunday in east China’s Jiangsu Province.

Foundation stone-laying ceremony was held at the economic and technology development area in the city of Changshu, according to the city’s government.

The JV project, with a total investment of 17.5 billion yuan (2.8 billion U.S. dollars), will have an ultimate annual output of 250,000 units of passenger vehicles, said the government in a press release.

The first phase of the project, which costs 10.9 billion yuan, is expected begin producing vehicles in July 2014. Annual production capacity of the first phase will include 77,000 Land Rover SUVs, 23,000 Chery cars, and 30,000 unit of Jaguar cars by 2016.

New energy vehicles and cars with aluminum body will be produced in the JV, and its own brand will also be developed after its completion.

The JLR is also expected to establish a research and development center in the city, said the press release.

Chery was founded in 1997 and has since emerged as one of China’s largest and most productive automotive manufacturers. In 2011, Chery recorded sales of 643,000 units, ranking the sixth among China’s passenger vehicle manufacturers.

JLR, a wholly-owned subsidiary of Tata Motors, is the largest manufacturer of premium vehicles in Britain.

In 2005, sales in China accounted for one percent of combined Jaguar and Land Rover sales. The country is now JLR’s third largest market and is still growing.”

via Construction on Chery-Jaguar Land Rover JV starts in east China – Xinhua | English.news.cn.

Posted in Affluence, China alert, Consumer, Economics, FDI, joint venture, luxury brand, Manufacturing | Leave a Comment »

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21/11/2012

* Will the Chinese people demand democracy any time soon?

If personal income (above US$10,000 per annum) is a criteria for the desire to seek democracy, and if the plan to double the personal income in a decade is met; then by the end of this leadership decade, CPC better get ready to act – in one way or another!

Posted in Affluence, China alert, Democracy, Politics | Leave a Comment »

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20/11/2012

* China, India to hold strategic economic dialogue this month

Xinhua: “China and India will hold the second round of strategic economic talks in New Delhi on Nov. 26, a Chinese Foreign Ministry spokesperson confirmed Tuesday.

Zhang Ping, head of China’s National Development and Reform Commission, and Indian Planning Commission Deputy Chairman Montek Singh Ahluwalia will co-chair the dialogue.

At a daily press briefing, Chinese Foreign Ministry spokesperson Hua Chunying briefed reporters on the talks.

Hua said the dialogue constituted an important part of the “Year of China-India Friendship and Cooperation” activities.

The two sides will exchange views to seek broader economic cooperation and promote coordination on macroeconomic policy. They will also strenghten cooperation in areas such as investment, infrastructure, high-technology, energy-saving and energy resources.

China and India held the first round of the strategic economic dialogue in Sept. 2011.

When responding to a question on border issues, Hua said specific information of the new round of meetings between special representatives on China-India border issues will be released at an appropriate time.

China and India experienced a border conflict in 1962.

The two countries launched the mechanism of meetings between special representatives on border issues in 2003. The previous round of meetings on border issues was held in India in January.”

via China, India to hold strategic economic dialogue this month – Xinhua | English.news.cn.

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Posted in China alert, Chindia Alert, Economics, GeoPolitics, Good news, India alert, Politics, Territorial dispute, Trade | 2 Comments »

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17/11/2012

* Students from China add $5b to US economy

Not only does China own more of US debt than any other country, Chinese students account for the number 1 foreign students in the US. On top of it trade between the two is also at a very high level. Any concerns about military conflict between the US and China must be a remote possibility. They are too inter dependent. Never did the US-Soviet relationship approach anything like that of US-China. I hope I am right!

China Daily: “Booming Chinese-student enrollment in United States colleges and universities contributed nearly $5 billion to the US economy in the 2011-12 academic year, an education expert estimated.

“The rise of China as a contributor to the economies of many US institutions mirrors the increasing influence of China in the global economy,” wrote Rahul Choudaha, director of research and advisory services at World Education Services in an e-mail to China Daily.

World Education Services is a New York-based nonprofit that specializes in international education and research.

“In 2003-04, there were 61,765 Chinese students enrolled in the US, contributing an estimated $1.4 billion to the economy. This ballooned to 194,029, contributing nearly $5 billion, in 2011-12,” Choudaha added.

The number of Chinese students enrolled in US institutions of higher education in 2011-12 increased from 157,558 to 194,029, or 23 percent, over the previous year, a new report shows.

The Open Doors 2012 report, published on Tuesday by the Institute of International Education with support from the Bureau of Educational and Cultural Affairs of the US State Department, reveals that international students in US universities make a significant positive economic impact on the US.

The report also shows that nearly half of Chinese students favor business and engineering, which became the top two majors among Chinese students.”

via Students from China add $5b to US economy |Society |chinadaily.com.cn.

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Posted in China alert, Economics, education, foreign students | Leave a Comment »

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14/11/2012

* Five Maoists killed in encounter in Odisha

The problem seems to be intractable. Unless India seriously eliminates rural poverty (as China has done over the last decades), it will never go away.

Times of India: “Five Maoists were killed in a fierce encounter with security forces in a forest on the border of Odisha’s Ganjam and Gajapati districts on Wednesday.

At least two security personnel were also injured in the exchange of fire in Bhaliagada jungle under Mohana police station area, police said.

“We have received information about the death of five Maoists during an exchange of fire in the jungle. The bodies are yet to be recovered as the operation is still on,” DIG of police (southern range) R K Sharma said.

The slain ultras belonged to a group headed by Maoist leader Sabyasachi Panda, he said.”

via Five Maoists killed in encounter in Odisha – The Times of India.

See also: https://chindia-alert.org/prognosis/indian-challenges/

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Posted in Dissident, Economics, India alert, Insurgency | 1 Comment »

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14/11/2012

* China turns to machines as farmers seek fresh fields

Unless China solves the agricultural productivity soon, it will become a global rather than a Chinese problem.

Reuters: “China needs to replace millions of workers who have quit farms for cities, but even its vast state power might not be able to transform the countryside into a network of big industrial farms capable of feeding its growing economy.

A farmer drives a harvester to reap through a corn field in Suibin state farm, Heilongjiang province in this October 16, 2012 file photo. China needs to replace millions of workers who have quit farms for cities, but even its vast state power might not be able to transform the countryside into a network of big industrial farms capable of feeding its growing economy. Pulling together small plots of land to make larger operations and introducing modern mechanical techniques would help boost productivity, vital if China's agricultural sector is to meet soaring domestic food demand.REUTERS-David Stanway-Files

Pulling together small plots of land to make larger operations and introducing modern mechanical techniques would help boost productivity, vital if China’s agricultural sector is to meet soaring domestic food demand.

But efforts to modernize the sector are struggling to gain traction because many farmers are suspicious about giving up their land, and even for some mechanized farms, there are too few workers.

Guaranteeing food security is a major tenet of the ruling Communist Party. The country is self-sufficient in rice and wheat, but is struggling to meet corn demand and has long given up trying to satisfy soy demand. It is the world’s biggest importer of soybeans, and a major buyer of corn.

It has increased grains output for nine straight years and aims to add 50 million tonnes per year by 2020 to the record 571.21 million tonnes of grain harvested in 2011.

“It now needs the government to come out and manage the land of those who give consent, and improve economies of scale,” said Fu Xuejun, a manager at the Baoquanling farm, owned by the Beidahuang Group, a huge state-owned farming conglomerate in Heilongjiang in northeast China.

Some say China should give up its fixation with self-sufficiency and take advantage of growing grains trade internationally.

“China used to emphasize self-sufficiency because the international environment was not favorable,” said Li Guoxiang, researcher with the Rural Development Institute of the China Academy of Social Sciences (CASS). “Food security should have two aims – one is domestic production and the other is the ability to buy overseas.”

via Analysis: China turns to machines as farmers seek fresh fields | Reuters.

See also: https://chindia-alert.org/2012/02/23/china-finally-realises-that-migrant-workers-are-not-a-transient-issue/

Posted in agriculture, China alert, Economics | 1 Comment »

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14/11/2012

* How China Has Blocked Vale’s Iron-Ore Megaships

From supportive partner to antagonistic rival?

WSJ: “Brazilian miner Vale SA has spent around $2 billion on a fleet of huge ships to carry its iron ore from Brazil to China. The problem: China won’t let them in.

image

Chinese regulators have cited safety concerns over Valemax ships, as the cargo vessels are called. But analysts and industry observers point to a different reason: opposition from a Chinese shipping-industry group dominated by a state-owned company.

The Valemax fight offers a glimpse of one of the biggest battles China’s new leaders will face as they take the reins of the world’s No. 2 economy this week. Economists widely agree that to achieve sustainable growth, Beijing must open its doors to more competition and shake up state-controlled companies.

But the effort will face considerable challenges in a country where the line is blurred between state-owned enterprises and regulators.State-owned enterprises and their top regulator have pledged an overhaul but also have defended their role in the Chinese economy. “This is a special characteristic of China and critical to the development of a socialist economy,” said Wang Yong, director of the State-Owned Assets Supervision and Administration Commission.

State-owned enterprises dominate businesses including telecommunications and banking, leaving consumers with only three mobile-phone operators and lending dominated by state-controlled companies. In the energy sector, just a handful of domestic companies control exploration and production. Foreign car companies must form joint ventures with Chinese partners and share important technology.”

via How China Has Blocked Vale’s Iron-Ore Megaships – WSJ.com.

Posted in China alert, Economics, Politics, Protectionism | 1 Comment »

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