07/05/2012
WSJ: “Personal-computer maker Lenovo Group Ltd. said Monday that it plans to spend about $800 million on a new base to house the development, production and sale of mobile products as the Chinese company tries to expand beyond its core PC business.
Lenovo Ideapad U8 MID example (Photo credit: Wikipedia)
Lenovo, the world’s second-largest PC maker, said in a written statement on Monday that the five-billion-yuan facility, in the central Chinese city of Wuhan, will have several thousand employees, mainly focused on smartphones, tablet computers and other mobile devices for China and global markets. The company estimates total revenue from the base will reach 10 billion yuan $1.59 billion by 2014, and increase to 50 billion yuan within the next five years. The facility is expected to begin operations in October 2013.
Now, the company is making a mobile-devices push. The investment represents the company’s latest effort to break into new product categories as PC sales lag behind demand for mobile devices, including smartphones and tablets. Lenovo created a business unit last year called the Mobile Internet Digital Home group to focus on developing smartphones, tablets and Internet-connected smart television sets that can communicate with the mobile devices.”
via Lenovo Reaches Beyond PC Business – WSJ.com.
See also: Chinese innovation
Posted in Chindia Alert, Consumer, Economics, Manufacturing, Technology |
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07/05/2012
Xinhua: “China and five Central Asian nations held a cooperation forum on Monday in Tongxiang of east China’s Zhejiang province. The forum, themed around mutual trust, cooperation and harmonious development, focused on pragmatic, social and cultural cooperation between China and Kyrgyzstan, Tajikistan, Kazakhstan, Turkmenistan and Uzbekistan.
It also saw the signing of a declaration on further promoting their cooperation. Bai Lichen, vice chairman of the Chinese Peoples Political Consultative Conference, Chinas top advisory body, attended the opening ceremony and met with representatives from the five Central Asian countries.”
via China, Central Asian countries hold cooperation forum – Xinhua | English.news.cn.
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07/05/2012
China Daily: “Germany looking more to China than Europe for overseas investment
Germany has always been the cornerstone of the European economy but Europe is not as important to Germany as it used to be.
For the first time China has become German companies top foreign investment destination, totaling $1.36 billion by the end of last year, according to a survey by the Association of German Chambers of Industry and Commerce. The amount was more than the combined German investment in France, Spain and Italy.
The profound shift is visible in the case of Knauf Gips KG, a German-headquartered plasterboard manufacturer.When asked what helped turn the family-owned workshop into the world’s second-largest gypsum board maker, Mark Norris, the company’s China chief executive officer, said one particular factor stands out – China. After its entry into the Chinese market in the 1990s, Knauf built three plants in Beijing, Shanghai and Guangzhou. The initial investment soon gave Knauf a solid foothold in the country’s dry-wall market. Norris said he was quite bullish about the future and remained committed to continuing investment, despite decelerating economic growth in China, compounded by the European crisis and stagnation in the United States. “In relative terms, China remains a dynamic growth engine compared with places like Spain and Greece, where there is absolutely no growth,” he said. “And people seem to forget that the market is so big, the demand for good quality is there.” As we noticed over the past five years, a mid-to-upper class has emerged and the quality of life is increasing. People are prepared to pay for green building materials. Even though its not comparable to the European or US standard, it is catching up quick.””
via Foreign firms bullish about economy[1]|chinadaily.com.cn.
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07/05/2012
Trinamool Congress chief Mamata Banerjee September 7, 2008. (Photo credit: Wikipedia)
The Hindu: “The U.S. has agreed to treat West Bengal as a partner state for investment in the changed political situation, Chief Minister Mamata Banerjee said in Kolkata on Monday.
“As per partner state, they will invest in West Bengal which was not taking place due to the political situation in the past,” Ms. Banerjee told reporters after a 52-minute meeting with U.S. Secretary of State Hillary Clinton. She also said that the issue of FDI in retail did not come up during the meeting. She said that the areas identified for U.S. investment were IT, software sector, manufacturing, deep sea port, tourism, health care and education. “They will give full support for economic and business development,” Mr. Banerjee said, adding that Chief Secretary Samar Ghosh and U.S. Ambassador Nancy Powell would coordinate and monitor the progress.”
via The Hindu : News / National : U.S. agrees to treat West Bengal as partner for investment: Mamata.
Posted in Economics, GeoPolitics, India alert, Investment in tangibles, Manufacturing, Technology |
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07/05/2012
Countries of Modern Indian subcontinent (Photo credit: Wikipedia)
New York Times: ““The economic slowdown in India is one of the world’s biggest economic stories,” even though it has not commanded much attention in the United States, Tyler Cowen writes in The New York Times.
“What is disturbing is that much of the decline in the growth rate is distributed unevenly, with the greatest burden falling on the poor,” he writes. “If the slower rate continues or worsens, many millions of Indians, for another generation, will fail to rise above extreme penury and want. The problems of the euro zone are a pittance by comparison.”
China commands more attention, but Scott B. Sumner, the Bentley College economist, has pointed out it is India that is likely to end up as the world’s largest economy by the next century. China’s population is likely to peak relatively soon while India’s will continue to grow, so under even modestly optimistic projections the Indian economy will be No. 1 in terms of total size. India also is a potential force for energizing the economies of Bangladesh, Nepal and, perhaps someday, Pakistan and Myanmar. The losses from a poorer India go far beyond the country’s borders; furthermore, the wealthier India becomes, the stronger the allure of democracy in the region.”
via Never Mind Europe. Worry About India. – NYTimes.com.
Posted in Economics, India alert |
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04/05/2012
Xinhua: “The State Council, or China’s Cabinet, announced on Thursday a slew of measures to enhance the fiscal, financial and taxation support for small and micro-sized enterprises in a bid to ensure their sound development.
China’s small and micro-sized firms are facing increasing operational pressures and rising production costs amid a complicated and uncertain economic situation, and financing difficulties and heavy taxation are adding more pains. Therefore, the State Council issued a document to boost the healthy development of small and micro-sized firms as they play an irreplaceable role in creating jobs and promoting the real economy. The document, including 29 measures in eight aspects, required local authorities to enhance fiscal and tax support for the small and micro-sized firms, relieve their financing difficulties and create a favorable environment for their development.”
via China pledges more support for small, micro-sized firms – Xinhua | English.news.cn.
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03/05/2012
Reuters: “China’s Bright Food will take control of breakfast cereal maker Weetabix, beloved by generations of British children, in the biggest foreign acquisition by a Chinese food group.
State-owned Bright Food has agreed to buy a 60 percent stake in a deal which puts a value of 1.2 billion pounds $1.94 billion, including debt, on the private-equity owned company that coined the slogan “Have you had your Weetabix today?”
The Shanghai-based group has been on the acquisition trail, seeking to raise its profile and cater for its rapidly growing home market. Weetabix is its second foreign purchase in a year and its first in Europe after other deals fell through. Eighty-year-old Weetabix is Britain’s second biggest maker of breakfast cereals and cereal bars after Kellogg. Its brands include Alpen muesli and Ready Break as well as Weetabix, which lays claim to being Britain’s No. 1 breakfast cereal for under-5s and is made from wheat grown within 50 miles 80 km of its base in southern England.
“As China’s leading food group, we are pleased to become the controlling shareholder of Weetabix,” Bright Food chairman Wang Zhongnan said in a statement on Thursday. “Weetabix has an excellent product portfolio, including leading British cereal brand Weetabix and other category-leading brands. “Private equity owners Lion Capital and Weetabix management will keep a 40 percent stake. The quintessentially British breakfast cereal group was founded in 1932 by the secretive George family and soon producing its iconic bricks of wheat. It was bought by a private equity firm in 2004.
Bright Food now sees a big opportunity for Weetabix in China, where breakfast is a very important meal and there is a trend towards healthy eating.The group, which makes “White Rabbit” candy, bought majority stakes in Australias Manassen Foods and New Zealands Synlait Milk over the past two years.”
via UPDATE 2-Chinas Bright Food buys Weetabix | Reuters.
Related post: https://chindia-alert.org/2012/02/13/pattern-of-chinese-overseas-investments/
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03/05/2012
Reuters: “China, Japan and South Korea agreed on Thursday to boost cross-investment in government bond markets, worth nearly a combined $15 trillion, in a move that will better prepare the countries to protect their financial markets from external shocks.
East Asia map China/Japan/Korean peninsula (Photo credit: Wikipedia)
The three economic powers sought a formal agreement, a rare one on securities investment, to ease mutual concerns about possibly massive cross-border fund flows and because their capital markets are at different levels of development. The move also comes as many of the heavily exposed economies in East Asia have struggled to find ways to avoid a repeat of the 1997/98 Asian financial meltdown and other turmoil that has struck during times of crises originating outside the region.”
via China, Japan, South Korea to boost investment in each others bonds | Reuters.
Posted in Banking, Economics, Good news |
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03/05/2012
WSJ: “For General Electric Co., Australia is the new China.
The original version of General Electric’s circular logo and trademark. The trademark application was filed on July 24, 1899, and registered on September 18, 1900 (Photo credit: Wikipedia)
The continent of 22 million people is set to generate more revenue for the industrial conglomerate this year than will the Middle Kingdom, with 1.3 billion. The shift stems in part from Chief Executive Jeff Immelts shuffling of the company’s business lines to emphasize energy. But it also reflects a significant rethinking of China’s value for GE, which, after years of missed targets and slow growth in the country, has turned its attention to resource-rich locations that have friendlier rules for investing and fewer national champions as rivals.
GE isn’t giving up on China, where its annual sales have hovered at around $5 billion for much of the past half-decade. But the company is betting that the price of energy and minerals will remain strong—and that GE will have an easier time breaking into other markets to sell compressors, locomotives and power generators in countries that produce oil, gas and iron ore. The new approach elevates Canada, Peru, Mongolia and Australia into the circle of growth prospects once dominated by Brazil, Russia, India and China.”
via Frustrated With China, General Electric Turns Its Eye to Australia – WSJ.com.
- General Electric (graphicdesign1aust.wordpress.com)
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01/05/2012
China Daily: “As foreign luxury brands compete to carve out portions of China’s fast-growing market, experts are predicting that Chinese companies will soon develop luxury brands of their own.
It is time for domestic enterprises to establish luxury brands, since China has already become the dominant driver of growth in the luxury sector, said Zhou Ting, executive director of the research center for luxury goods and services at the University of International Business and Economics. The sales volume of Chinas luxury market was 11.5 billion euros $15 billion in 2011, a year-on-year growth of 25 percent, according to PricewaterhouseCoopers International Ltd.
Potential domestic luxury brands could come from some traditional Chinese industries, including liquor, tea, porcelain and silk, said Yang Qingshan, a guest researcher of luxury goods and services at UIBE. The research center listed 10 domestic brands with the potential to become luxury brands in its luxury report in November. Three liquor brands – Moutai, Wuliangye and Langjiu – are among the 10 brands. Zhuyeqing tea and some clothing brands, such as NE-Tiger and Shanghai Tang, are also on the list.”Many traditional Chinese products already have a feature of luxury because of their heritage,” Yang said.”
via High-end Chinese brands coming soon|Economy|chinadaily.com.cn.
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