Archive for ‘sell’

14/05/2020

US Navy warship transits Taiwan Strait as PLA starts live-fire drills

  • American destroyer’s mission comes a week before Taiwanese president officially starts second term in office
  • Increased military activity in the region could have unintended consequences but unlikely to lead to direct conflict, observer says
The guided-missile destroyer USS McCampbell made a transit through the Taiwan Strait on Thursday. Photo: US Navy
The guided-missile destroyer USS McCampbell made a transit through the Taiwan Strait on Thursday. Photo: US Navy

The United States sent a warship through the Taiwan Strait on Thursday as the Chinese military embarked on more than two months of live-fire naval drills off the mainland’s northern coast.

The passage by the USS McCampbell was the sixth through the strait by a US Navy vessel this year and comes a week before Taiwanese President Tsai Ing-wen, of the independence-leaning Democratic Progressive Party, is expected to be sworn in for a second term in office.

According to Taiwan’s defence ministry, the Arleigh Burke-class guided-missile destroyer transited the narrow body of water separating Taiwan from mainland China from north to south “in a routine mission”.

“It is continuing its southward voyage and the military is monitoring its movement through the intelligence it has gathered,” the ministry said.

In a statement on its Facebook page, the US Pacific Fleet said the McCampbell transited the Taiwan Strait as part of ongoing operations in the Indo-Pacific.

Analysts said the passage was a response to the People’s Liberation Army’s increasing military activity near Taiwan and in the wider region.

“This will become a new routine as a kind of US security commitment to maintain stability in the Indo-Pacific region,” said Soong Hseik-wen, professor of strategic studies and international relations at National Chung Cheng University in Taiwan.

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The PLA has staged a series of war games, including fly-bys and warship transits through the strait, in recent months in response to what Beijing sees as growing pro-independence moves by the Tsai government and her party. China has also warned the US against supplying weapons to the island, which Beijing considers to be a wayward province that must return to the mainland fold, by force if necessary.

Mainland China has suspended official exchanges with Taiwan since Tsai was first elected president in 2016 and refused to accept the one-China policy, which Beijing says must be the foundation for any talks.

The PLA has embarked on 11 weeks of naval exercises off the coast of Tangshan in northern China, barring all other vessels from a 25km (15 mile) radius of the drill area, according to the China Maritime Safety Administration.

Taiwanese support closer ties with US over China, few identify as solely Chinese, Pew Research survey finds

13 May 2020

Both Beijing and Washington have ramped up military activities near Taiwan in recent months during the coronavirus pandemic, moves that some observers say run the risk of miscommunication.

Alexander Huang Chieh-cheng, professor of strategic studies and international relations at Tamkang University in Taipei, said no one could exclude the possibility of unintended incidents when both the US and the mainland were stepping up their presence in the region.

“Rational analysts would however argue that the two nuclear powers are not likely to engage in or escalate to direct military conflict,” he said.

Huang said he believed cross-strait relations would worsen during Tsai’s second term in office, which begins on May 20.

“The already damaged relationship between Taiwan and mainland China has worsened since the pandemic mainly due to travel bans and Taiwan’s increased international visibility,” he said.

On Tuesday, Japan’s Kyodo News reported that the PLA was planning a large-scale beach landing exercise near Hainan province in August, simulating a takeover of the Pratas Islands, which are controlled by Taiwan and also known as the Dongsha Islands.

In Taipei, Major General Lin Wen-huang said Taiwan was monitoring the PLA movements and “has contingency plans in place for the South China Sea to strengthen combat readiness and defence preparedness on both the Spratly and Pratas islands”.

Taiwan’s coastguard also announced on Wednesday that its Pratas Islands Garrison was scheduled to conduct an annual live-fire exercise in June to ensure the “effectiveness of various mortar and machine-gun positions”.

Taiwan shows off its military power after presidential election
Shanghai-based military commentator Ni Lexiong said that both the US Navy and PLA were increasing activities during the pandemic because neither side could afford to show weaknesses that the other might take advantage of.
The destroyer’s passage and the PLA’s drills were all part of such efforts, Li said.

But he agreed that both countries were unwilling, unable, and unlikely to have a real conflict.

“They are both bluffing. It’s a fake crisis,” he said. “A pandemic always ends or prevents a war if you look at history.

“I also don’t believe the PLA would want to take over the Dongsha or Taiping islands [in the South China Sea], because these islets alone are not worth a military campaign and all the consequences of that. The only target valuable enough for the PLA is Taiwan.”

Source: SCMP

27/01/2020

India renews push to sell Air India, puts entire stake on the bloc

NEW DELHI (Reuters) – India said on Monday it plans to sell its entire interest in Air India Ltd, making a renewed push to sell the flag carrier after it drew no bids in an effort to auction a majority stake almost two years ago.

A document released on Monday showed March 17 as the deadline for submission of initial expressions of interest, and that any bidder must assume liabilities, including debt of 232.87 billion rupees ($3.28 billion).

Substantial ownership and effective control of the airline must remain with an Indian entity, the government added.

The potential sale of an airline kept aloft by a $4.2 billion 10-year bailout in 2012 comes as the government divests money-losing assets to manage the fiscal deficit.

The latest offer should garner significant response partly because it involves a clean exit by the government, said CAPA aviation consultancy India head Kapil Kaul.

“As the entire debt excluding aircraft debt is taken out of the deal, it signals a very determined effort to exit Air India, to allow taxpayers’ funds be utilized for the government’s social agenda,” said Kaul.

Indian business house Hinduja Group and US-based fund Interups have expressed interest in buying the airline, the Business Standard daily said.

It quoted Laxmi Prasad, the chairman and chief business architect of Interups, as saying the fund had initiated talks with the government and would like to make a case for certain aspects of the airline’s business to be included in the deal.

The government in 2018 here tried to sell 76% of Air India and offload about $5.1 billion of its debt, with terms including the retention of all employees.

InterGlobe Aviation Ltd’s (INGL.NS) IndiGo and Jet Airways Ltd (JET.NS) – which has since collapsed – initially showed interest, but opted out after the terms were disclosed.

Steel-to-autos conglomerate Tata Group, widely viewed as a potential suitor for Air India, also decided not to bid after deeming the terms too onerous, sources told Reuters at the time.

On Monday, civil aviation minister Hardeep Singh Puri said the government was open to suggestions and altering some provisions if the changes helped to find a buyer.

“We have gone into this exercise, months of planning and preparation have gone into it and this is not the final, final. The bidders are going to get 45 days, they are going to come back to us. It is an interactive process,” Puri told reporters.

“We are open to revising, refining and tweaking our views.”

A successful bidder would win control of Air India’s 4,400 domestic and 1,800 international landing and parking slots at domestic airports, as well as 900 slots at airports overseas.

It would also get 100% of low-cost arm Air India Express and 50% of AISATS, which provides cargo and ground handling services at major Indian airports, the bid document showed.

The buyer would also have to provide 3% of the value of the airline’s equity as stock options for permanent employees.

Air India has about 9,400 permanent employees and 3,600 fixed-term contract staff – including 1,850 pilots and 4,600 cabin crew – with benefits such as discounted air tickets and pensions.

Its employees protested against the 2018 sale attempt, and it was not immediately clear if they would also resist the latest effort. The government said it would provide details on safeguarding employee interests in its final bid document.

A spokesman for the employee union did not have immediate comment.

The government’s divestment plan could also face opposition from within, with Subramanian Swamy, an MP from the ruling Bharatiya Janata Party (BJP), threatening legal action against the sale.

“This deal is wholly anti-national and I will (be) forced to go to court. We cannot sell our family silver,” Swamy said on Twitter.

Source: Reuters

20/09/2019

China’s border region expedites reform to build a financial gateway for ASEAN

NANNING, Sept. 19 (Xinhua) — Pham Thi Nguyet Hoa, a vendor living in Vietnam’s Mong Cai, comes to Dongxing, a southern Chinese port city, to sell Vietnam fruits every day. When night falls, she often ends up with thousands of yuan in her pocket, much more than what she can earn at home.

“Most of my customers are Chinese, and it is very convenient to exchange Chinese yuan to Vietnamese Dong as many banks in Dongxing have this currency exchange service,” said Pham.

Tourism has been a pillar industry in the border city of southern China’s Guangxi Zhuang Autonomous Region. Dongxing port saw 12 million people, of which half were tourists, pass through last year, ranking first among all land ports in China.

In the first six months this year, tourism consumption at the port exceeded 6.2 billion yuan (874 million U.S. dollars), up 40.4 percent from the year before.

The flourishing border tourism has brought a huge demand for currency exchange, with a slew of financial reforms rolled out in recent years.

In 2014, the ABC China (Dongxing Experimental Zone) ASEAN Currency business center was established in Dongxing, allowing direct convertibility of Chinese yuan and Vietnamese Dong.

In February 2018, a total of 8 million yuan was transferred in cash from Vietnam to China, marking the first cross-border cash transfer in Guangxi between China and Vietnam.

Fan Zuojun, vice president of Guangxi University, said the cross-border cash transfer will further promote the financial cooperation between China and Members of the Association of Southeast Asian Nations (ASEAN) as well as deepen reform and push forward the internationalization of the Chinese currency in the region.

China and ASEAN countries have always maintained close relations in trade.

In January 2010, the China-ASEAN Free Trade Area was set up, which has significantly boosted bilateral trade. China has maintained its position as the largest trading partner of ASEAN for 10 consecutive years, and trade between China and ASEAN has skyrocketed tenfold from 16 years ago to 587.8 billion U.S. dollars in 2018.

In the first half of 2019, ASEAN became China’s second-largest trading partner, with bilateral trade volume reaching 291.85 billion U.S. dollars, up 4.2 percent year on year.

Guangxi’s geographical advantages have also given it huge development dividends over the past decades. ASEAN has been Guangxi’s largest trade partner for 19 consecutive years, and trade volume between Guangxi and ASEAN in the first seven months of this year topped 128 billion yuan, accounting for 48.7 percent of Guangxi’s total foreign trade.

Now with the launch of the Guangxi Pilot Free Trade Zone (FTZ) in August, bilateral trade exchanges are expected to embrace another golden opportunity.

The pilot FTZ, with a total area of nearly 120 square km, will focus on modern financial services, smart logistics, digital economy, port shipping logistics, international trade and cross-border tourism, among others.

Guangxi vows to make greater efforts to consolidate its financial strength and build itself into an ASEAN-oriented financial portal, with over 90 financial reform measures being rolled out to further facilitate trade and investment and promote innovation in financial services with ASEAN countries.

Source: Xinhua
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