Chindia Alert: You’ll be Living in their World Very Soon
aims to alert you to the threats and opportunities that China and India present. China and India require serious attention; case of ‘hidden dragon and crouching tiger’.
Without this attention, governments, businesses and, indeed, individuals may find themselves at a great disadvantage sooner rather than later.
The POSTs (front webpages) are mainly 'cuttings' from reliable sources, updated continuously.
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BEIJING/SHANGHAI (Reuters) – China’s Inceptio Technology, a startup developing self-driving trucks, has raised $100 million in its latest funding round from logistics firm GLP, its key strategic investor G7 and other investors, two sources familiar with the matter told Reuters.
The proceeds from its series A funding round will be used to further develop its technologies and to start commercial trials, said the sources, who declined to be named as they were not authorised to speak to media.
The company, which aims to operate a freight network with autonomous driving trucks in China from 2022, has partnerships with Dongfeng Automobile Co Ltd (600006.SS), Sinotruk Hong Kong Ltd (3808.HK) and Foton (600166.SS).
The two-year-old firm is developing autonomous driving software and an in-car computing system while the truckmakers are responsible for the vehicles’ platforms.
Inceptio declined to comment. G7 and Singapore-based GLP did not immediately respond to requests for comment.
Inceptio focuses on level 3 and 4 technologies. A level 3 vehicle will enable drivers to turn their attention away from driving but they still need to take over if the car encounters a problem, while with level 4 technologies, there is no human intervention in most circumstances.
The trucking industry is expected to an earlier adopter of autonomous driving technology compared to passenger vehicle makers as driving on highways is more predictable than on busy city streets.
German automaker Daimler (DAIGn.DE) and U.S. postal giant United Parcel Service Inc (UPS.N) have invested in self-driving trucks.
Image copyright HAN ZHUImage caption Choosing an electric car was an easy decision for Shenzhen resident Han Zhu
Han Zhu is on a mission to go green. The 29-year-old data analyst wants her next car to be electric. But her reasons for buying an electric vehicle are in part practical.
In the southern Chinese city of Shenzhen, government restrictions on the number of petrol cars sold each year mean she would have to enter a lottery or auction to be able to buy a petrol vehicle.
“There is a possibility you may never get it. With the electric vehicle green licence, you don’t have to wait in line,” she says.
Shenzhen has become the showpiece capital for the Chinese electric dream. In 2017 it became the first city in the world to introduce a fleet of electric buses. A year later, the government rolled out a plan to replace city taxis with electric cars.
“In Shenzhen, in almost every residential building there are two charging units. One out of 10 cars on the street are Teslas,” she says. “In China if the policy leads in one direction, technology and money goes in that direction too,” she says.
Image copyright GETTY IMAGESImage caption China has the world’s biggest market for electric vehicles
In less than a decade China’s new electric vehicle market has become the largest in the world. In 2018 more than a million electric vehicles were sold in China, more than three times the number sold in the US.
Beijing invested an estimated $50bn (£43bn) in the industry, hoping that today’s dominance of the electric vehicle market would lead to global automobile supremacy tomorrow.
And thus far the policy has been working. Over the last three years the number of Chinese electric vehicle manufacturers has tripled, with more than 400 registered nationwide.
But that breakneck expansion alarmed the government. Last year it decided to put the brakes on by withdrawing approximately half of its financial incentives for buyers.
A slump in sales quickly followed, in the last quarter of 2019 sales for electric vehicles plummeted.
Now the coronavirus has supplied a second punch.
Manufacturers have been forced to halt production lines and close dealerships in a bid to stop the spread of virus.
Overall auto sales in plunged 79% in February compared with the same month in 2019, according to figures from the China Association of Automobile Manufacturers. Sales of new energy vehicles (NEVs) fell for the eighth month in a row.
“China’s auto market was already reeling from a large drop in demand in 2019. In 2020 no carmaker has been immune to the effects of the coronavirus. That includes everyone from the oldest joint ventures producing internal combustion engine SUVs to the most innovative upstarts making connected electric vehicles,” says Scott Kennedy from the Center for Strategic and International Studies.
“The vast majority [of electric car makers] will not survive. But how long they survive and whether industry consolidation occurs through lots of mergers or bankruptcies will depend on the willingness of the government.”
Image copyright NIOImage caption The NIO EP9 is one of the fastest electric cars in the world
After listing on the New York Stock Exchange in 2018 and raising billions of dollars, NIO is perhaps the highest-profile Chinese maker of electric cars.
But in the five years since it was founded it has been beset by problems and has burned through hundreds of millions of dollars. In 2019 the company cut 2,000 jobs on the back of falling revenues. In February it announced it had signed a tentative agreement with a local government that has pledged to fund the company.
“China is a huge market growing at an immense pace. We will adjust and adapt to the market condition,” said an NIO spokesperson.
And it’s not just the car makers. China has some giant makers of components, such as batteries.
In 2018 CATL, a Chinese electric battery maker, became the official supplier of BMW’s electric cars.
Last month Tesla announced it would enter into an agreement with the company to supply batteries for Tesla’s newly built Shanghai mega-plant, capable of producing 500,000 vehicles a year.
Image copyright GETTY IMAGESImage caption China’s BYD is the one of the world’s biggest makers of electric vehicles
But despite that apparent success, analysts have their doubts.
“Chinese auto and battery technology is still not world-class. CATL and BYD are strong battery makers, but they are still somewhat behind technologically from their South Korean and Japanese counterparts. And Chinese automakers are still second-class producers even in their own country and they have barely any sales outside China,” says Mr Kennedy.
For car buyers, that question of quality hangs over China’s electric car makers.
Yi Zhi Yong, a middle-aged entrepreneur, drives a hybrid car made by Chinese manufacturer BYD. Backed by US billionaire Warren Buffett, the company was the third-largest battery-only electric car producer in the world in 2019, according to research by EV-volumes.com. Tesla sold the most, followed by another Chinese firm, BAIC.
He didn’t buy a pure electric vehicle because he is not confident about the quality.
“The quality of domestic pure electric vehicles is not good at the moment,” he says. “No domestic pure electric vehicle is worth buying yet.”
But he feels the progress made by China is a source of national pride. “In the 1990s we couldn’t imagine that China could build cars that can compete with the Japanese,” he says.
Back in Shenzhen, Han Zhu says the rolling back of government subsidies won’t put her off buying an electric vehicle. But rather than buying a Chinese marque, she has her eye on a Tesla.
“I think that they are totally different. I was super excited about Tesla but not other electric cars,” she says.
SEOUL (Reuters) – Makers of soju, South Korea’s national drink and one of the world’s best selling spirits, are jumping into the fight on the largest outbreak of coronavirus outside China by sharing their stockpiles of alcohol with makers of sanitisers.
Disinfectants, such as hand sanitisers, are flying off the shelves, along with medical-grade masks, as infections in South Korea have surged past 5,000 in just over a month since its first patient was diagnosed.
South Korean soju makers have responded to soaring ethanol demand for sanitisers by donating the alcohol that goes into the drink, a distilled spirit with 17% to 20% alcohol by volume traditionally based on rice, but now often wheat or potatoes.
“Ethanol demand for disinfection has grown while supply is limited…we have decided to provide it,” an official of Daesun Distilling, based in the southeastern city of Busan, told Reuters.
To banish the virus, the company has pledged to donate 32 tonnes of ethanol for use in disinfecting buildings and public places in Busan and southeastern Daegu, the city at the centre of South Korea’s outbreak.
“We plan to keep donating until the coronavirus outbreak is stabilised and to donate 50 tonnes more,” added the official, who sought anonymity as he was not authorised to speak to media.
South Koreans drink an average of about 12 shots of soju each week, media say, citing industry figures. Ethanol for alcoholic drinks can be produced by fermentation or distillation, typically from grains and plants.
The chemical can also be made from petrochemical feedstock.
Whether used for liquor or disinfection, both have the same chemical structure and can break apart the virus particle, said Lee Duckhwan, a chemistry professor at Sogang University in Seoul, the capital.
“If there’s any difference, that is the liquor tax imposed on ethanol produced by liquor makers,” Lee said.
The virus fears boosted February sales of soaps and hand sanitisers, including those with an alcohol base, to four times the level a year ago, data from a major retailer Lotte Mart shows. Shares of ethanol producers also jumped.
Following Daesun Distilling, Hallasan Soju, based on the resort island of Jeju, also provided 5 tonnes of ethanol to authorities on Tuesday, a company official said.
manufacturers and distributors of surgical face masks are currently in overdrive to meet a surge in global demand for protective gear amid the coronavirus outbreak.
With an eye on enormous profits, these suppliers have turned their focus to exports,
– causing a chronic local shortage of masks due to the relatively lower margins in the domestic market.
Indian manufacturers produce 240 million disposable masks every year, primarily for domestic use, as per the estimates of the Association of Indian Medical Device Industry.
There are no large-scale manufacturers of surgical masks in the country; the landscape is dominated by more than a dozen medium-sized companies with a production capacity of between 20,000 and 100,000 masks a day.
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The production cost of a mask is estimated to be 1 rupee (less than 2 US cents), and masks were sold for 2-4 rupees at retail outlets a month ago. As of this week, the price of a surgical mask has skyrocketed to 15 rupees.
In some regions where there is a shortfall, retail stores are reportedly demanding as much as 50 rupees. Some experts, meanwhile, say exporting masks to coronavirus-threatened Asian countries where masks are in high demand could fetch firms up to US$15 per mask.
China has so far imported over 1.2 billion masks to meet soaring demand, according to the Ministry of Commerce.
Manoj Rajawat – director of Orthosut Biomedical and Engineering Company, which distributed about 500,000 masks every month before the surge in demand – estimates that nearly 90 per cent of masks manufactured in India in recent weeks have been exported to countries such as China, Malaysia and Singapore.
“The value of the exported masks could [easily be more than 50] times what it was before the virus outbreak in China,” Rajawat said.
More than 75,000 people have been infected with the coronavirus, the vast majority of them on mainland China, and more than 2,000 patients have died with more than 16,000 staging a full recovery. This includes India’s three cases of infection, which were discovered in Kerala and have since been cured.
To allay fears of a domestic shortage, the Indian government briefly banned exports of masks and protective gear earlier this month, when the country’s first case of coronavirus infection was confirmed. A week later, however, the ban was partially lifted for two- and three-ply masks as the demand for such protective equipment kept rising overseas.
Multiple Indian ministries are closely monitoring the situation, but are reluctant to comment on specific issues beyond releasing official notifications.
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“Indian manufacturers have exponentially increased their production of masks. With the government lifting the restrictions on exports, [these firms] are also catering to international demand, somewhat focusing more on exports as it seems more beneficial,” said Vivek Tiwari, chief executive of Medikabazaar, a business-to-business online platform for medical supplies and equipment.
However, experts and observers such as Prasad Danave, president of the Retail and Dispensing Chemist Association, say Indian manufacturers are not equipped to deal with the sudden demand for such large quantities.
“I talked to one of the manufacturers and his capacity to produce disposable masks is 20,000 pieces per day. Suddenly, two purchasers approached him asking for 2 million masks and 5 million masks respectively. It is impossible to cater to such a need immediately,” Danave said.
A police officer in Kochi, India wears a face mask amid fears of the coronavirus outbreak. Photo: EPA
The N95 respirator, an industrial-purpose face mask, is in huge demand as people seek to protect themselves from the coronavirus. Alcohol-based hand sanitisers are also flying off shelves, while there are also concerns of panic buying and shopkeepers hyping up demand for their products to capitalise on the situation.
Abhay Pandey is the national president of the All Food and Drug Licence Holder Foundation, an industry organisation which represents about 7,000 pharmaceutical suppliers across India. He said vendors are distributing substandard face masks to domestic consumers due to a shortage of production time given the increased demand, as well as the lack of a credible mechanism to ensure standards.
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“There’s a micro-filter which is usually fitted between two layers in the three-ply face masks used by doctors during surgical procedures. Now, the suppliers are preparing substandard face masks without this filter for the Indian market, and for exports they’re sending the good quality ones,” Pandey said.
Mask makers in China, the world’s largest producer of face masks, are currently operating at 76 per cent capacity, National Development and Reform Commission official Cong Liang said at a press conference in Beijing on Tuesday.
This means they are producing about 15.2 million masks daily but demand is estimated to be between 50 and 60 million units, according to Chinese media reports citing mainland mask manufacturers.
BEIJING/SINGAPORE (Reuters) – China reported on Wednesday its smallest number of coronavirus cases since January, lending weight to a prediction by its top medical adviser for the outbreak to end by April, but a global infectious diseases expert warned of the spread elsewhere.
Financial markets took heart from the outlook of the Chinese official, epidemiologist Zhong Nanshan, who said on Tuesday the number of new cases was falling in some provinces, and forecast the epidemic would peak this month, even as the death toll in China rose to more than 1,100 people.
World stocks, which had seen rounds of sell-offs over the virus, surged to record highs on hopes of a peak in cases. The Dow industrials, S&P 500 and Nasdaq all hit new highs, and Asian shares nudged higher on Wednesday.
But the World Health Organization (WHO) has warned that the epidemic poses a global threat akin to terrorism and one expert coordinating its response said while the outbreak may be peaking at its epicentre in China, it was likely to spread elsewhere in the world, where it had just begun.
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“It has spread to other places where it’s the beginning of the outbreak,” the official, Dale Fisher, head of the Global Outbreak Alert and Response Network coordinated by the WHO, said in an interview in Singapore.
“In Singapore, we are at the beginning of the outbreak.”
Singapore has reported 47 cases and worry about the spread is growing. Its biggest bank, DBS (DBSM.SI), evacuated 300 staff from its head office on Wednesday after a confirmed coronavirus case in the building.
Hundreds of cases have been reported in dozens of other countries and territories around the world, but only two people have died outside mainland China – one in Hong Kong and another in the Philippines.
WHO chief Tedros Adhanom Ghebreyesus said on Tuesday the world had to “wake up and consider this enemy virus as public enemy number one” and the first vaccine was 18 months away.
In China, total infections have hit 44,653, health officials said, including 2,015 new confirmed cases on Tuesday. That was the lowest daily rise in new cases since Jan. 30.
The number of deaths on the mainland rose by 97 to 1,113 by the end of Tuesday.
But doubts have been aired on social media about how reliable the figures are, after the government last week amended guidelines on the classification of cases.
‘STAY HOPEFUL’
The biggest cluster of cases outside China is aboard the Diamond Princess cruise ship quarantined off Japan’s port of Yokohama, with about 3,700 people on board. Japanese officials on Wednesday said 39 more people had tested positive for the virus, taking the total to 175.
One of the new cases was a quarantine officer.
Thailand said it was barring passengers from another cruise ship, MS Westerdam, from disembarking, the latest country to turn it away amid fears of the coronavirus, despite no confirmed infections on board.
“We try to stay hopeful,” American passenger Angela Jones told Reuters in a video recording. “But each day, that becomes a little bit more difficult, when country after country rejects us.”
Echoing the comparison with the fight against terrorism, China’s state news agency Xinhua said late on Tuesday the epidemic was a “battle that has no gunpowder smoke but must be won”.
The epidemic was a big test of China’s governance and capabilities and some officials were still “dropping the ball” in places where it was most severe, it said, adding: “This is a wake-up call.”
The government of Hubei, the central province at the outbreak’s epicentre, dismissed the provincial health commission’s Communist Party boss, state media said on Tuesday, amid mounting public anger over the crisis.
China’s censors had allowed criticism of local officials but have begun cracking down on reporting of the outbreak, issuing reprimands to tech firms that gave free rein to online speech, Chinese journalists said.
The pathogen has been named COVID-19 – CO for corona, VI for virus, D for disease and 19 for the year it emerged. It is suspected to have come from a market that illegally traded wildlife in Hubei’s capital of Wuhan in December.
The city of 11 million people remains under virtual lockdown as part of China’s unprecedented measures to seal infected regions and limit transmission routes.
Travel restrictions that have paralysed the world’s second-biggest economy have left Wuhan and other Chinese cities resembling ghost towns.
Even if the epidemic ends soon, it has taken a toll of China’s economy, with companies laying off workers and needing loans running into billions of dollars to stay afloat. Supply chains for makers of items from cars to smartphones have broken down.
ANZ Bank said China’s first-quarter growth would probably slow to 3.2% to 4.0%, down from a projection of 5.0%.
The likely slowdown in China could shave 0.1 to 0.2 percentage points off both euro zone and British growth this year, credit rating agency S&P Global estimated.
(Reuters) – Asian companies dominate the market for electric vehicle (EV) batteries and they are expanding their production capacity in Europe, China and the United States in a fight to win lucrative contracts from global automakers.
Some carmakers worry, however, there won’t be enough batteries for all the EVs they plan to launch in the coming years and a bitter row between South Korea’s SK Innovation and LG Chem risks exacerbating the potential shortfall.
Below are details of the world’s leading EV battery makers with details of their customers and expansion plans:
CATL
China’s Contemporary Amperex Technology (CATL), the world’s biggest EV battery maker, counts BMW (BMWG.DE), Volkswagen (VOWG_p.DE), Daimler (DAIGn.DE) – which makes Mercedes cars – Volvo, Toyota Motor Corp (7203.T) and Honda Motor Co (7267.T) among its customers.
The company emerged as a major force partly thanks to Beijing’s policy of only subsidising vehicles equipped with Chinese batteries in the world’s biggest EV market. Beijing is phasing out EV subsidies next year.
CATL, which operates factories in China, is building its first overseas plant in Germany and is considering a U.S. factory.
Japan’s Panasonic, a supplier of U.S. EV pioneer Tesla (TSLA.O), said it has installed equipment to ramp up production at Tesla’s Nevada plant to 35 GWh from its current production of around 30 GWh as of late October. Panasonic has said it is investing about $1.6 billion in the factory.
Panasonic also produces EV batteries in Japan, China and plans to shift some of its plants to a new joint venture with Toyota. Panasonic’s clients also include Honda and Ford Motor Company (F.N).
China’s BYD, which is backed by U.S. investor Warren Buffett, is also one of the world’s biggest EV battery makers. It mainly uses them in-house for its own cars and buses. BYD said last year it is was considering cell production in Europe.
The South Korean firm was an early industry mover, winning a contract to supply General Motor’s (GM.N) Volt in 2008. It also supplies Ford, Renault (RENA.PA), Hyundai Motor (005380.KS), Tesla, Volkswagen and Volvo.
It is investing 3.3 trillion won ($2.8 billion) to build and expand production facilities near Tesla’s plant in Shanghai. It has a joint venture (JV) in China with Geely Automobile Holdings (0175.HK), which makes Volvos, and is in talks with other carmakers about JVs in major markets.
The firm is considering building a second U.S. factory in addition to its facility in Michigan and is expanding its plant in Poland.
SAMSUNG SDI CO LTD (006400.KS) Samsung SDI an affiliate of South Korean tech giant Samsung Electronics (005930.KS), has EV battery plants in South Korea, China and Hungary, which supply customers such as BMW (BMWG.DE), Volvo and Volkswagen. Samsung SDI is investing about 1.2 billion euros ($1.3 billion) to expand its factory in Hungary though the EU is investigating whether Budapest’s financial support complies with the bloc’s state aid rules.
Samsung started production last year on the Hungary plant, which will produce batteries for 50,000 EVs a year.
SK INNOVATION CO LTD (096770.KS) LG Chem’s cross-town rival SK Innovation supplies batteries to Volkswagen, Daimler and Kia Motors (000270.KS), as well as Jaguar Land Rover [TAMOJL.UL] and Ferrari (RACE.MI).
An oil refiner that came to the battery industry late, SKI is investing about $3.9 billion to build three plants in the United States, China and Hungary, with a goal of expanding its annual production capacity to 33 GWh by 2022.
SKI currently operates one battery factory in South Korea, with a capacity of 4.7 GWh annually.
It set up a joint venture with Beijing Automotive Industry Corporation (BAIC) of China in August 2018 and another Chinese partner. It is in talks with Volkswagen about another battery JV and is building a $1.7 billion factory in the U.S. state of Georgia, not far from Volkswagen’s Chattanooga plant.
Image copyright HAN ZHU
Image copyright GETTY IMAGES
Image copyright NIO
Image copyright GETTY IMAGES
CHINDIA ALERT: You'll be living in their world, very soon 
Chinese self-driving truck startup Inceptio raises $100 million – sources
BEIJING/SHANGHAI (Reuters) – China’s Inceptio Technology, a startup developing self-driving trucks, has raised $100 million in its latest funding round from logistics firm GLP, its key strategic investor G7 and other investors, two sources familiar with the matter told Reuters.
The proceeds from its series A funding round will be used to further develop its technologies and to start commercial trials, said the sources, who declined to be named as they were not authorised to speak to media.
The company, which aims to operate a freight network with autonomous driving trucks in China from 2022, has partnerships with Dongfeng Automobile Co Ltd (600006.SS), Sinotruk Hong Kong Ltd (3808.HK) and Foton (600166.SS).
The two-year-old firm is developing autonomous driving software and an in-car computing system while the truckmakers are responsible for the vehicles’ platforms.
Inceptio declined to comment. G7 and Singapore-based GLP did not immediately respond to requests for comment.
Inceptio focuses on level 3 and 4 technologies. A level 3 vehicle will enable drivers to turn their attention away from driving but they still need to take over if the car encounters a problem, while with level 4 technologies, there is no human intervention in most circumstances.
The trucking industry is expected to an earlier adopter of autonomous driving technology compared to passenger vehicle makers as driving on highways is more predictable than on busy city streets.
German automaker Daimler (DAIGn.DE) and U.S. postal giant United Parcel Service Inc (UPS.N) have invested in self-driving trucks.
Source: Reuters
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