Archive for ‘ports’

27/05/2020

New Indian roads, air strips sparked border standoff with China, India observers say

NEW DELHI/SRINAGAR (Reuters) – A Himalayan border standoff between old foes India and China was triggered by India’s construction of roads and air strips in the region as it competes with China’s spreading Belt and Road initiative, Indian observers said on Tuesday.

Soldiers from both sides have been camped out in the Galwan Valley in the high-altitude Ladakh region, accusing each other of trespassing over the disputed border, the trigger of a brief but bloody war in 1962.

About 80 to 100 tents have sprung up on the Chinese side and about 60 on the Indian side where soldiers are billeted, Indian officials briefed on the matter in New Delhi and in Ladakh’s capital, Leh, said.

Both were digging defences and Chinese trucks have been moving equipment into the area, the officials said, raising concerns of a long faceoff.

“China is committed to safeguarding the security of its national territorial sovereignty, as well as safeguarding peace and stability in the China-India border areas,” the Chinese Foreign Ministry spokesperson’s office said in a statement.

“At present, the overall situation in the border areas is stable and controllable. There are sound mechanisms and channels of communication for border-related affairs, and the two sides are capable of properly resolving relevant issues through dialogue and consultation.”

There was no immediate Indian foreign ministry comment. It said last week Chinese troops had hindered regular Indian patrols along the Line of Actual Control (LAC).

But interviews with former Indian military officials and diplomats suggest the trigger for the flare-up is India’s construction of roads and air strips.

“Today, with our infrastructure reach slowly extending into areas along the LAC, the Chinese threat perception is raised,” said former Indian foreign secretary Nirupama Rao.

“Xi Jinping’s China is the proponent of a hard line on all matters of territory, sovereignty. India is no less when it comes to these matters either,” she said.

After years of neglect Prime Minister Narendra Modi’s government has pushed for improving connectivity and by 2022, 66 key roads along the Chinese border will have been built.

One of these roads is near the Galwan valley that connects to Daulat Beg Oldi air base, which was inaugurated last October.

“The road is very important because it runs parallel to the LAC and is linked at various points with the major supply bases inland,” said Shyam Saran, another former Indian foreign secretary.

“It remains within our side of the LAC. It is construction along this new alignment which appears to have been challenged by the Chinese.”

China’s Belt and Road is a string of ports, railways, roads and bridges connecting China to Europe via central and southern Asia and involving Pakistan, China’s close ally and India’s long-time foe.

Source: Reuters

25/04/2020

Coronavirus: China’s belt and road plan may take a year to recover from slower trade, falling investment

  • But trade with partner countries might not be as badly affected as with countries elsewhere in the world, observers say
  • China’s trade with belt and road countries rose by 3.2 per cent in the January-March period, but second-quarter results will depend on how well they manage to contain the pathogen, academic says
China’s investment in foreign infrastructure as part of its Belt and Road Initiative has been curtailed because of the coronavirus pandemic. Photo: Xinhua
China’s investment in foreign infrastructure as part of its Belt and Road Initiative has been curtailed because of the coronavirus pandemic. Photo: Xinhua
The coronavirus pandemic is set to cause a slump in Chinese investment in its signature

Belt and Road Initiative

and a dip in trade with partner countries that could take a year to overcome, analysts say.

But the impact of the health crisis on China’s economic relations with nations involved in the ambitious infrastructure development programme might not be as great as on those that are not.
China’s total foreign trade in the first quarter of 2020 fell by 6.4 per cent year on year, according to official figures from Beijing.
Trade with the United States, Europe and Japan all dropped in the period, by 18.3, 10.4 and 8.1 per cent, respectively, the commerce ministry said.
By comparison, China’s trade with belt and road countries increased by 3.2 per cent in the first quarter, although the growth figure was lower than the 10.8 per cent reported for the whole of 2019.
China’s trade with 56 belt and road countries – located across Africa, Asia, Europe and South America – accounts for about 30 per cent of its total annual volume, according to the commerce ministry.

Despite the first-quarter growth, Tong Jiadong, a professor of international trade at Nankai University in Tianjin, said he expected China’s trade with belt and road countries to fall by between 2 and 5 per cent this year.

His predictions are less gloomy than the 13 to 32 per cent contraction in global trade forecast for this year by the World Trade Organisation.

“A drop in [China’s total] first-quarter trade was inevitable but it slowly started to recover as it resumed production, especially with Southeast Asian, Eastern European and Arab countries,” Tong said.

“The second quarter will really depend on how the epidemic is contained in belt and road countries.”

Nick Marro, Hong Kong-based head of global trade at the Economist Intelligence Unit, said he expected China’s total overseas direct investment to fall by about 30 per cent this year, which would be bad news for the belt and road plan.

“This will derive from a combination of growing domestic stress in China, enhanced regulatory scrutiny over Chinese investment in major international markets, and weakened global economic prospects that will naturally depress investment demand,” he said.

The development of the Chinese built and operated special economic zone in the Cambodian town of Sihanoukville is reported to have slowed, while infrastructure projects in Bangladesh, including the Payra coal-fired power plant, have been put on hold.

The development of the Chinese built and operated special economic zone in the Cambodian town of Sihanoukville is reported to have slowed. Photo: AFP
The development of the Chinese built and operated special economic zone in the Cambodian town of Sihanoukville is reported to have slowed. Photo: AFP
Marro said the reduction of capital and labour from China might complicate other projects for key belt and road partner, like Pakistan, which is home to infrastructure projects worth tens of billions of US dollars, and funded and built in large part by China.

“Pakistan looks concerning, particularly in terms of how we’ve assessed its sovereign and currency risk,” Marro said.

“Public debt is high compared to other emerging markets, while the coronavirus will push the budget deficit to expand to 10 per cent of GDP [gross domestic product] this year.”

Last week, Pakistan asked China for a 10-year extension to the repayment period on US$30 billion worth of loans used to fund the development of infrastructure projects, according to a report by local newspaper Dawn.

China’s overseas investment has been falling steadily from its peak in 2016, mostly as a result of Beijing’s curbs on capital outflows.

Last year, the direct investment by Chinese companies and organisations other than banks in belt and road countries fell 3.8 per cent from 2018 to US$15 billion, with most of the money going to South and Southeast Asian countries, including Singapore, Vietnam, Indonesia and Pakistan.

Tong said the pandemic had made Chinese investors nervous about putting their money in countries where disease control measures were becoming increasingly stringent, but added that the pause in activity would give all parties time to regroup.

“Investment in the second quarter will decline and allow time for the questions to be answered,” he said.

“Past experience along the belt and road has taught many lessons to both China and its partners, and forced them to think calmly about their own interests. The epidemic provides both parties with a good time for this.”

Dr Frans-Paul van der Putten, a senior research fellow at Clingendael Institute in the Netherlands, said China’s post-pandemic strategy for the belt and road in Europe
might include a shift away from investing in high-profile infrastructure projects like ports and airports.
Investors might instead cooperate with transport and logistics providers rather than invest directly, he said.
“Even though in the coming years the amount of money China loans and invests abroad may be lower than in the peak years around 2015-16, I expect it to maintain the belt and road plan as its overall strategic framework for its foreign economic relations,” he said.
Source: SCMP
22/02/2020

China reports fall in new coronavirus cases but concerns grow over rising global spread

BEIJING (Reuters) – China reported a sharp decrease in new deaths and cases of the coronavirus on Saturday but a doubling of infections in South Korea and 10 new cases in Iran added to unease about its rapid spread and global reach.

Mainland China had 397 new confirmed cases of coronavirus infections on Friday, down from 889 a day earlier, but only 31 cases were outside of the virus epicentre of Hubei province, the lowest number since the National Health Commission started compiling nationwide data a month ago.

But infection numbers continued to rise elsewhere, with outbreaks worsening in South Korea, Italy and Lebanon and Iran, prompting a warning from the World Health Organization that the window of opportunity to contain the international spread was closing..

South Korea saw another spike in infections, with 229 new confirmed cases, taking its tally to 433. Officials warned that could rise substantially as more than 1,000 people who attended a church at the centre of the outbreak had shown flu-like symptoms.

Iran, which had no reported cases earlier this week, saw 10 new cases, one of which had died, taking the number to 28 infections and five deaths.

Concerns about the virus weighed on U.S. stocks on Friday, driven by an earlier spike in cases in China and data showing stalling U.S. business activity in February. [MKTS/GLOB]

It has spread to some 26 countries and territories outside mainland China, killing 13 people, according to a Reuters tally.

WHO director-general Tedros Adhanom Ghebreyesus on Twitter expressed concern on Saturday about cases with no clear link to China and called on all countries to invest urgently in preparedness. He made an appeal for $675 million to support the most vulnerable countries.

On Friday, he said now was the time to act decisively.

“We still have a chance to contain it,” he said. “If we don’t, if we squander the opportunity, then there will be a serious problem on our hands.”

An outbreak in northern Italy worsened with its first two deaths, among 17 confirmed cases including its first known instance of local transmission.

Japan confirmed 14 new coronavirus cases on Saturday, among those a teacher who had shown symptoms while working at her school.

Japan is facing growing questions about whether it is doing enough to contain its spread, and concern about whether it could scupper this year’s Tokyo Olympics. Organisers on Saturday postponed the start of training for volunteers as a precaution.

The Bank of Japan’s governor on Saturday shrugged off talk that the widening epidemic is triggering an outflow of funds from Asia.

Online site for coronavirus news – here

GRAPHIC: Tracking the novel coronavirus – here

NEW COMPLICATIONS

The total number of confirmed cases in mainland China rose to 76,288, with the death toll at 2,345 as of the end of Friday. Hubei reported 106 new deaths, of which 90 were in Wuhan.

But new, albeit isolated findings about the coronavirus could complicate efforts to thwart it, including the Hubei government’s announcement on Saturday that an elderly man took 27 days to show symptoms after infection, almost twice the presumed 14-day incubation period.

That follows Chinese scientists reporting that a woman from Wuhan had travelled 400 miles (675 km) and infected five relatives without showing signs of infection, offering new evidence of asymptomatical spreading.

State television on Saturday showed the arrival in Wuhan of the “blue whale”, the first of seven river cruise ships it is bringing in to house medical workers, tens of thousands of which have been sent to Hubei to contain the virus.

Senior Chinese central bank officials sought to ease global investors’ worries about the potential damage to the world’s second-largest economy from the outbreak, saying interest rates would be guided lower and that the country’s financial system and currency were resilient.

Chen Yulu, a deputy governor of the People’s Bank of China, said policymakers had plenty of tools to support the economy, and were fully confident of winning the war against the epidemic.

“We believe that after this epidemic is over, pent-up demand for consumption and investment will be fully released, and China’s economy will rebound swiftly,” Chen told state television.

China has recently cut several key lending rates, including the benchmark lending rate on Thursday, and has urged banks to extend cheap loans to the worst-hit companies which are struggling to resume production and are running out of cash.

The transport ministry said businesses would resume operations on a larger scale later this month and said more roads, waterways and ports were returning to normal.

Online media and Weibo users posted footage and images on Saturday of some malls reopening, including in the cities of Wuxi, Hangzhou and in Gansu province, with shoppers queuing in near-empty streets outside for mandatory temperature checks as trickles of customers in masks perused luxury goods shops and makeup counters.

Some analysts believe China’s economy could contract in the first quarter from the previous three months due to the combined supply and demand shocks caused by the epidemic and strict government containment measures. On an annual basis, some warn growth could fall by as much as half from 6% in the fourth quarter.

However, transport restrictions remain in many areas and while more firms are reopening, the limited data available suggests manufacturing is still at weak levels, with disruptions starting to spillover into global supply chains.

Samsung Electronics (005930.KS) said on Saturday that one coronavirus case had been confirmed at its mobile device factory complex in Gumi, causing a shutdown of its entire facility.

Finance leaders from the Group of 20 major economies were set to discuss risks to the world economy in Saudi Arabia this weekend.

The WHO’s Tedros on Twitter said 13 priority countries in Africa had been identified for help because of their direct links to China or high travel volume. That would include 30,000 personal protective kits on the way to six countries and 60,000 more for 19 states in the weeks ahead.

Source: Reuters

08/11/2019

Xi Focus: Xi’s trip to Greece, Brazil to advance bilateral ties, BRICS cooperation

BEIJING, Nov. 7 (Xinhua) — Chinese President Xi Jinping’s upcoming visit to Greece and Brazil is expected to intensify China’s relations with the two countries and enhance BRICS cooperation, officials said here Thursday.

At the invitation of Greek President Prokopis Pavlopoulos, Xi will pay a state visit to Greece from Nov. 10 to 12, said Vice Foreign Minister Qin Gang.

This will be the first visit to the European country by a Chinese president after an interval of 11 years, which will exert a historic influence of China-Greece ties and push forward China-Europe relations and Belt and Road cooperation, Qin said.

He noted that China and Greece, both with old civilizations, are trustworthy and helpful friends respecting and supporting each other on core interests and major concerns.

Greece is among the first European Union (EU) countries to sign an intergovernmental cooperation document with China to jointly construct the Belt and Road, Qin said, adding that Greek prime ministers attended the first and second Belt and Road Forum on International Cooperation in Beijing.

The two sides have conducted fruitful cooperation on the principle of mutual benefit and win-win cooperation and witnessed increased bilateral trade and investment, Qin said.

“The Piraeus Port project, a flagship project for the Belt and Road cooperation, has made important contributions to the local economic and social development of Greece and played an important role in advancing connectivity in various regions around the globe,” said the vice foreign minister.

Speaking of people-to-people and cultural exchanges, Qin said peoples of the two countries respect each other and advocate openness and inclusiveness in their close interactions.

“Both China and Greece hold that different civilizations should respect each other and facilitate experience sharing, mutual learning and conversation among civilizations,” he said.

China and Greece are new friends of the “17 +1” cooperation. In April this year, Greece became a full member of the China-Central and Eastern European Countries Cooperation Mechanism, adding new opportunities to the development of this mechanism, which is also conducive to developing China-EU relations and China-EU connectivity, Qin said.

Greek Prime Minister Kyriakos Mitsotakis led a delegation to the ongoing second China International Import Expo (CIIE). Xi met with him, and the two leaders visited the Greek pavilion, Qin said.

According to Qin, in Greece, Xi is scheduled to hold talks respectively with Pavlopoulos and Mitsotakis, in a bid to consolidate political mutual trust and traditional friendship between the two countries, intensify pragmatic cooperation in trade, investment, infrastructure and other fields, uphold multilateralism and free trade and build an open world economy.

Besides, Qin noted that the Chinese and Greek leaders will conduct cultural exchanges and advocate dialogues among civilizations.

The two sides will issue a joint statement on strengthening the comprehensive strategic partnership, draw up a blueprint for the development of bilateral ties, sign intergovernmental cooperation documents on investment and education, and ink commercial agreements in such fields as ports, finance, and energy.

Greece, in the West, and China, in the East, are heirs of ancient civilizations. Noting that both China and Greece are faced with the mission of rejuvenation and prosperity, Qin said the two countries can enlighten the world to deal with various problems and challenges.

Xi’s upcoming visit to Greece shows respect and appreciation of the ancient Chinese civilization to the ancient Greek civilization, as well as the expectation of jointly building a community with a shared future for humanity, Qin said.

It is believed the visit will elevate the level of bilateral cooperation in an all-round way and inject new impetus to the development of China-EU relations with fruitful results, Qin stressed.

According to Vice Foreign Minister Ma Zhaoxu, at the invitation of Brazilian President Jair Messias Bolsonaro, Xi will attend the 11th BRICS summit in Brasilia, the capital of Brazil, from Nov. 13 to 14.

BRICS is the acronym for an emerging-market bloc that groups Brazil, Russia, India, China and South Africa.

Xi is scheduled to attend the closing ceremony of the BRICS business forum, closed and public meetings of the BRICS leaders’ meeting and the BRICS leaders’ dialogue with the BRICS Business Council and the New Development Bank. The leaders’ declaration is expected to be released, Ma said.

Xi will hold talks with Bolsonaro, sign cooperation documents in various fields, and hold bilateral meetings with leaders of other participating countries to exchange views on ties and BRICS cooperation, Ma said.

As the world is undergoing changes rarely seen in a century and confronted with unprecedented opportunities and challenges, BRICS countries have drawn ever-growing attention worldwide, Ma said, stressing that China appreciates the efforts made by Brazil in its preparation and stands ready to jointly prompt the meeting to achieve fruitful results.

He voiced expectations of the Chinese side.

“The Chinese side hopes that BRICS countries will further enhance political mutual trust, boost mutually beneficial cooperation and forge a more comprehensive, closer and broader partnership,” Ma said.

As for safeguarding multilateralism and strengthening global governance, Ma voiced China’s determination to make joint efforts with other BRICS countries to safeguard the rules-based multilateral trade system, the international order based on international law, and the international system with the UN at the core.

This aims to promote a more equitable, open, transparent and inclusive global governance system and safeguard common interests and development space of emerging markets and developing countries, Ma said.

“China believes the five BRICS countries should follow the trend of the new industrial revolution and facilitate economic transformation and upgrading,” Ma noted.

As an important outcome of last year’s Johannesburg meeting, the BRICS partnership for a new industrial revolution has progressed well in the past year, he said, adding that China is willing to work with concerned parties to accelerate the development of the partnership and tap more potential for cooperation projects, so as to propel high-quality development of the five countries.

“China looks forward to more cooperation on economy, trade, finance, political security and people-to-people exchanges, with projects meeting the development needs of the five countries and serving the interests of their peoples,” he said.

The Chinese side believes that with concerted efforts of all parties and under the political guidance of the five countries’ leaders, the 11th BRICS Summit will be a full success, Ma said, stressing that the BRICS countries will continue to contribute to world peace and development and the building of a community with a shared future for humanity.

Source: Xinhua

13/04/2019

China’s trade boom and building frenzy of ports help home-grown producers corner the world market of containers and cranes

  • Shanghai Zhenhua Heavy Industries now exports quay cranes, gantry cranes to more than 300 ports in 100 countries, with 70 per cent of the global market
  • China International Marine Containers Group (CIMC), took a little more than a decade to become the world’s largest maker of shipping containers
Quay cranes along a berth at the Yangshan deep-water port in Shanghai on September 14, 2011. Shanghai Zhenhua Heavy Machineries, established in 1992, has grown along with the explosive development of China’s ports to control 70 per cent of the global market for cranes, loaders and lifting equipment used in ports. Photo: Xinhua
Quay cranes along a berth at the Yangshan deep-water port in Shanghai on September 14, 2011. Shanghai Zhenhua Heavy Machineries, established in 1992, has grown along with the explosive development of China’s ports to control 70 per cent of the global market for cranes, loaders and lifting equipment used in ports. Photo: Xinhua
The explosive growth of China’s container ports has turned one of the most important vendors in shipping into a best-in-class industry leader, whose cranes can now be found in 300 wharves in 100 countries, with 70 per cent of the global market share.
Shanghai Zhenhua Heavy Industries, a unit of China’s state-run construction behemoth China Communications Construction Company, makes quay cranes, gantry cranes, loaders and stackers used for loading and unloading shipping containers. It also developed the infrastructure for the automated berths in Phase IV of Shanghai’s Yangshan port, and in Qingdao.
Its net profit jumped 47.6 per cent last year to 443 million yuan, while sales was little changed at 21.8 billion yuan (US$3.25 billion).

“It is a major showcase of China’s manufacturing capability,” said Sun Can, a Chuancai Securities analyst. “The company has its own technologies and is a powerful player in the global port machinery industry.”

Why China now has six of the world’s 10 busiest container ports
Established in 1992, the company was formerly known as Zhenhua Port Machinery for its speciality in making lifting equipment on the harbourfront. Taking advantage of China’s low wages, Zhenhua quickly carved out a big chunk of the global market share by selling machines at lower prices than its competitors.
The company’s former chief executive Guan Tongxian, a confessed workaholic known for his hard-driving working ethic, retired at the age of 76 in 2009, the same year that the company renamed itself to reflect its forays into marine transport and installations, as well as the construction of special steel structures including the Las Vegas Ferris wheel, the San Francisco-Oakland Bay Bridge and Norway’s Hardangerfjord bridge.
Rows of gantry cranes standing along the Huangpu River in Shanghai on 26 June 2002. A consortium of Chinese domestic banks provided a 17 billion yuan (US$2 billion) credit line toward the construction of Shanghai's Yangshan deep-sea container port. Photo: AFP
Rows of gantry cranes standing along the Huangpu River in Shanghai on 26 June 2002. A consortium of Chinese domestic banks provided a 17 billion yuan (US$2 billion) credit line toward the construction of Shanghai’s Yangshan deep-sea container port. Photo: AFP

Listed on the Shanghai exchange in 1997, Zhenhua’s shares have risen 41 per cent in the past 12 months, ending 2.1 per cent lower at 4.46 yuan on Friday. All three analysts who cover the stock recommend their clients either “buy” or “accumulate” the stock, expecting Zhenhua to be a major winner in China’s megaplan to build infrastructure along the old Silk Road in its Belt and Road Initiative (BRI).

Another major company that has emerged with China’s rising tide was China International Marine Containers (Group), or CIMC, a unit of the state-run conglomerate China Merchants Group. Established in 1980, the company took a little more than a decade to dominate the global industry, becoming the world’s largest maker of shipping containers since 1996.

Visitors look at rows of containers at the Yangshan deep water port in Shanghai on April 6, 2006. Photo: AP
Visitors look at rows of containers at the Yangshan deep water port in Shanghai on April 6, 2006. Photo: AP

Guosen Securities said in a research report that CIMC would face lower profit margin this year amid rising raw material costs and fiercer competition from global rivals.

Its shares have risen 43.7 per cent in the past 12 months on the Shenzhen exchange to 15.20 yuan as of Friday.

Source: SCMP

13/03/2019

China’s coastal province Shandong unveils bln-dollar infrastructure plan

JINAN, March 13 (Xinhua) — Transport authorities in east China’s Shandong Province announced that it plans to invest 162.2 billion yuan (about 24.2 billion U.S. dollars) on roads, railways, ports and airports this year.

The investment is aimed at building an integrated infrastructure network in the province, said Jiang Cheng, head of the provincial transport department.

Last year, fixed asset investment in Shandong’s transportation sector reached 160 billion yuan, among which 115.8 billion yuan was spent on roads, highways and waterways, up 28 percent year on year.

This year, 61 percent of the investment will be on roads, Jiang said.

Shandong has set a target for its expressway mileage to reach 7,400 km by 2020. By the end of this year, the total will hit 6,400 km, he said.

More roads, bridges, and stations will be built in rural areas, he added.

About 10 railway projects are under construction in the province this year, with a total planned investment of 32 billion yuan (4.7 billion dollars). Upon completion, the province will be better connected with big cities such as Beijing, Shanghai and Tianjin.

Shandong had a permanent population of 100.4 million at the end of 2018. It is one of the most populous provinces in China. An improved infrastructure network will better meet economic and social needs.

Source: Xinhua

07/03/2019

Chinese companies in Africa create great development opportunities

BEIJING, March 6 (Xinhua) — Chinese companies operating in Africa have created huge opportunities for the continent’s development, a senior political advisor said Wednesday at a press conference on the sidelines of the annual sessions of the top legislative and political advisory bodies.

There are more than 10,000 Chinese companies in Africa and over 90 percent of them are private businesses, said Nan Cunhui, a member of the Standing Committee of the Chinese People’s Political Consultative Conference National Committee, citing a recent survey.

These companies have built roads, railways, airports, ports and other infrastructure projects in Africa, addressing the bottleneck in development, said Nan, also a vice chairman of the All-China Federation of Industry and Commerce. They have also invested in green energy development, including photovoltaic power stations, to boost local power supply.

The Chinese companies have also brought advanced technologies, development concepts and management to the continent, Nan said.

Citing the operation of an industrial park in Egypt as an example, Nan said over 95 percent of the employees are locals who develop professional skills and gain managerial know-how through their work.

“Chinese companies in Africa have contributed a lot to the local economic development through infrastructure construction, job creation and tax payment,” Nan said. “I believe China-Africa cooperation will go from strength to strength.”

Source: Xinhua

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