Posts tagged ‘China’

27/04/2013

* China Haidian may buy more watchmakers after Corum

Corum

Corum (Photo credit: Wikipedia)

Reuters: “China Haidian Holdings (0256.HK) may not stop at this week’s acquisition of Swiss watchmaker Corum as it seeks a foothold in high-end timepieces popular with Chinese consumers.

Chinese appetite for Swiss luxury watches has exploded in recent years, boosting sales at industry leaders Swatch Group (UHR.VX) and Richemont (CFR.VX).

But growth, particularly in top-end watches, has ground to a halt as the Chinese economy loses steam and a crackdown on giving expensive gifts as favours hurts demand.

China Haidian, which bought Swiss watch brand Eterna in 2011, said on Wednesday it was acquiring Corum Watches for 86 million Swiss francs ($90.8 million) to develop its Swiss brand portfolio and attract more Chinese customers.

“We may consider additional acquisitions in the future to grow our business if an opportunity arises,” Hon Kwok Lung, chairman of China Haidian, said on Friday in written answers to questions from Reuters.

He said no purchases were planned for now.

Hon said China Haidian wanted to use its retail network in China to help distribute and market Corum watches in China, as it did with Eterna.

Eterna has said its revenue grew in 2012, but product and market development costs brought it a net loss of HK$69.28 million. It expects Eterna to break even in a couple of years.”

via China Haidian may buy more watchmakers after Corum | Reuters.

27/04/2013

* China agrees $8bn Airbus plane deal

BBC: “China has agreed to buy 60 planes from European firm Airbus, in a deal worth $8bn (£5.2bn) at list prices.

French President Francois Hollande and Chinese President Xi Jinping shake hands

It is the first such deal since the European Union suspended the inclusion of foreign airlines in its controversial Emissions Trading Scheme.

China had voiced its opposition to the scheme, which charges airlines for the carbon they emit.

Last year, Airbus had alleged that China blocked firms from purchasing its planes amid the row over the scheme.

The deal was signed as part of a series of agreements during French President Francois Hollande’s two-day visit to China.

It includes an order for 42 Airbus A320 aircraft and 18 A330 planes.”

via BBC News – China agrees $8bn Airbus plane deal.

27/04/2013

* Turkey becomes partner of China, Russia-led security bloc

One day Europe may well come to regret not wqelcoming Turkey into the EU.

Reuters: “NATO member Turkey signed up on Friday to became a “dialogue partner” of a security bloc dominated by China and Russia, and declared that its destiny is in Asia.

Turkey's Prime Minister Tayyip Erdogan makes a speech during the Global Alcohol Policy Symposium in Istanbul April 26, 2013. REUTERS/Murad Sezer

“This is really a historic day for us,” Turkish Foreign Minister Ahmet Davutoglu said in Kazakhstan’s commercial capital Almaty after signing a memorandum of understanding with Shanghai Cooperation Organisation Secretary General Dmitry Mezentsev.

“Now, with this choice, Turkey is declaring that our destiny is the same as the destiny of the Shanghai Cooperation Organisation (SCO) countries.”

China, Russia and four Central Asian nations – Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan – formed the SCO in 2001 as a regional security bloc to fight threats posed by radical Islam and drug trafficking from neighboring Afghanistan.”

via Turkey becomes partner of China, Russia-led security bloc | Reuters.

25/04/2013

* Xi Jinping orders generals and senior PLA officers to serve as privates

SCMP: “Chinese generals and senior officers will have to serve as the lowest-ranking soldiers for at least two weeks under a measure by President Xi Jinping to shake up the military and boost morale.

usa_sin109_35189443.jpg

Xi, as the nation’s commander-in-chief, issued the order over the weekend, which the Ministry of National Defence publicised on its website.

It dictates that officers with the rank of lieutenant-colonel or above must serve as privates – the lowest-ranking soldier – for not less than 15 days. Generals and officers will have to live, eat and serve with junior soldiers during the period.

They need to provide for themselves and pay for their own food. They must not accept any banquet invitation, join any sight-seeing tours, accept gifts or interfere with local affairs

“They need to provide for themselves and pay for their own food. They must not accept any banquet invitation, join any sight-seeing tours, accept gifts or interfere with local affairs,” said the directive, which covers both the People’s Liberation Army and the People’s Armed Police.

Leaders of regiment- and brigade-level units have to serve on the front line once every three years. Division- and army-level commanders must serve once every four years. Top leaders from army headquarters and military districts will do so once every five years.

The measure recalls a similar shake-up launched by Mao Zedong in 1958. Mao at the time famously said all military leaders should serve as foot soldiers for a month every year.

He used the chance to strengthen his control of the military and forced many powerful marshals and generals into retirement or exile.”

via Xi Jinping orders generals and senior PLA officers to serve as privates | South China Morning Post.

25/04/2013

* Single women in Shanghai outnumber men 4:1

Contrary to predictions by sociologists and economist, in Shanghai at least, men are not outnumbering women when it comes to marriage.

China Daily: “Women in Shanghai may find it increasingly difficult to find a spouse, Shanghai Morning Post reported Friday.

The number of single women in Shanghai is four times their male counterparts, according to a survey by the Shanghai Matchmaking Industry Association. And most of the women are between 30 and 35, the paper said.

More than 1.8 million unmarried people seek out matchmaking agencies for help, but only 20 percent find their mates through the intermediaries, said Zhou Juemin, head of the association.

Many single women are particular about picking a partner, even if they are not so young. But most well-off single men with cars and houses are above 35 and prefer young women around 25, Zhou said.

Meanwhile, being unmarried seems to upset the parents more than the singles themselves, as “most of the phone calls we receive every day are from parents,” Zhou said.

via Single women in Shanghai outnumber men 4:1 |Hot Issues |chinadaily.com.cn.

25/04/2013

* The Chinese Dream won’t go back to sleep

The Times: “One died in Boston, the other lost her home in Sichuan. Both symbolised the hopes of millions

Last week in different corners of the planet, the lives of two very important Chinese women were ripped apart: one on the streets of Boston, the other under the rubble of the Sichuan earthquake. Both women were living the Chinese Dream. And both could spell big trouble for President Xi Jinping.

Lu Lingzi was a 23-year-old mathematics graduate student at Boston University, who died in the marathon bombing. The hard-working daughter of hard-working, white-collar parents from Shenyang, she was a paragon of the generation that has emerged as China’s economy grows and the new middle classes replicate themselves for the first time in history. Not a single opportunity in Lingzi’s short life was squandered. She battled for internships at banks and accounting firms. The family saved every yuan so that their daughter could study in the United States.

The other woman is Wei Ruqun, a victim of last Saturday’s earthquake. She is alive but has almost nothing to live for. Now 47, Ruqun has toiled in a variety of factories since her teens as one of China’s 260 million migrant workers whose sweat and aspiration have fuelled the country’s industrial engine.

Her career, a diverse list of drudgery that includes assembling cheap goods for export to the West, has won her some tiny shavings from the Chinese economic boom, hard-won dividends of the version of capitalism that Beijing unleashed in the 1980s, which allowed hundreds of millions of peasants to imagine themselves as consumers for the first time. Over the decades Ruqun saved to buy a small house in the village where she was born. On Saturday, a few months after the dream house was finished, it collapsed in the earthquake with family members inside.

The two women’s fates — reported on TV and discussed on Weibo, China’s version of Facebook and Twitter — have humanised for many Chinese people social trends almost too big and fast-moving to think about in the abstract. By studying abroad, Lingzi was fulfilling an increasingly common middle-class dream. Her story has fascinated tens of millions of middle-class Chinese who know someone like her or want to do what she did. Ruqun is one of hundreds of micro-tragedies of the Sichuan quake. Barely an adult in China cannot imagine the agony of losing a house that represents your life savings.

The two women are important for the ease with which ordinary Chinese can empathise with them. But they are politically important too. Both are the creations and creators of what will soon be the largest economy on Earth. The loss of Lingzi and the shattering of Ruqun are personally terrible, but their significance lies in the fact that there are thousands, perhaps millions, of Chinese women like them: all patiently shaping individual aspiration into something real. Their two lives, though different in so many ways, are perfect products of China 2013.”

via The Chinese Dream won’t go back to sleep | The Times.

25/04/2013

* Southeast Asia to reach out to China on sea disputes

Reuters: “Southeast Asian nations stepped up efforts on Thursday to engage China in talks to resolve maritime tensions, agreeing to meet to try to reach common ground on disputed areas of the South China Sea ahead of planned discussions in Beijing later this year.

A general view of the retreat during the ASEAN Summit at the Prime Minister's Office in Bandar Seri Begawan April 25, 2013. Leaders of the Association of Southeast Asian Nations (ASEAN) gathered in Brunei's capital for two days beginning Wednesday for their 22nd summit. REUTERS-Ahim Rani

Efforts by ASEAN to craft a code of conduct to manage South China Sea tensions all but collapsed last year at a summit chaired by Cambodia, a close economic ally of China, when the group failed to issue a closing statement for the first time.

Cambodia was accused of trying to keep the issue off the agenda despite a surge in tension over disputed areas and growing concern about China’s assertive stance in enforcing its claims over a vast, potentially energy-rich sea area.

Thursday’s initiative came as the 10-member Association of Southeast Asian Nations (ASEAN) tried to patch up differences that shook the group last year, but struggled to make progress on long-held plans to agree on a dispute-management mechanism.

Thailand, which has the role of ASEAN coordinator with China, called for the talks ahead of an ASEAN-China meeting expected in August to commemorate 10 years since they formed a “strategic partnership”.”

via Southeast Asia to reach out to China on sea disputes | Reuters.

25/04/2013

* China Unicom 1Q Net Jumps 89% on 3G, Fixed-Line Broadband Growth

WSJ: “China Unicom (Hong Kong) Ltd. 0762.HK -0.18% said Thursday net profit surged 89% in the first quarter from a year earlier as its third-generation mobile communications network and fixed-line broadband businesses continued their rapid growth.

China Unicom

China Unicom (Photo credit: Wikipedia)

Chinese telecommunications carriers are scrambling to ramp up their networks to accommodate the rapid increase in data traffic in the world’s largest mobile market, as more people replace their basic cellphones with smartphones. China has already overtaken the U.S. as the world’s biggest smartphone market.

Fierce competition between China Unicom and its rivals China Telecom Corp. CHA +1.75% and China Mobile Ltd. 0941.HK +1.21% has led to increasing costs, as carriers spend more on building networks and subsidizing handsets to attract more valuable subscribers who pay for speedier wireless services. In the latest quarter, China Unicom said revenue growth outpaced that of costs.

China Unicom, the country’s second-largest mobile operator by subscribers after China Mobile, said net profit was 1.90 billion yuan ($308 million) in the period ended March 31, up from 1.01 billion yuan a year earlier. Revenue rose 15% to 70.6 billion yuan from 61.19 billion yuan a year earlier.

China Unicom, the first of China’s carriers to offer Apple Inc.’s AAPL -0.16% iPhone, has seen profitability rise on its efforts to offer high-end smartphones and attract users with more expensive cellphone plans. Still, the increasing popularity of low-cost smartphones has led to falling average revenue per user—a key metric of telecom carriers’ health. First-quarter average revenue per user for its 3G business fell to 78.2 yuan from 93.9 yuan in the same period last year.

Subsidies for 3G phones rose to 2.23 billion yuan in the quarter from 1.98 billion yuan in the same period last year.

Major local carriers are also preparing to launch faster fourth-generation networks. Capital expenditure for network infrastructure and subsidies for smartphones continue to put pressure on major local carriers, even though smartphone users are boosting their data communications revenue.”

via China Unicom 1Q Net Jumps 89% on 3G, Fixed-Line Broadband Growth – WSJ.com.

25/04/2013

* China moves cautiously ahead on nuclear energy

Bulletin of the Atomic Scientists: “From 2005 to 2011, China rapidly developed its nuclear power capacity. In 2010 alone, it began operations at two new reactors and broke ground on 10 more, accounting for more than 60 percent of new reactor construction worldwide and making the Chinese nuclear industry by far the fastest-growing in the world. By the end of 2010, China had 14 nuclear reactors in operation with a total capacity of about 11 gigawatts electric, or GWe. That was still a relatively small amount — in contrast, the United States had 104 commercial reactors with a total capacity of about 100 GWe in 2010 — but China was pursuing ambitious plans to rapidly expand.

China Nuclear Energy

Then came the tsunami and earthquake that led to Japan’s Fukushima Daiichi meltdown in March 2011, the world’s worst nuclear accident since the Chernobyl disaster in 1986. After Fukushima, China changed course dramatically, slowing the pace of nuclear development to focus on safety. The slower pace is reassuring, but to really be a leader on nuclear safety, China should speed up the adoption of new laws on nuclear energy and enhance the independence and authority of nuclear safety regulators.

Putting the Brakes On. According to a government plan issued in 2007, China planned to install a total nuclear capacity of 40 GWe by 2020, which would account for about 3 percent of electricity generation nationwide. Many officials and experts expected that the number would actually increase further, to more than 80 GWe.

In its initial, March 2011 reaction to Fukushima, though, China’s State Council, the nation’s governing body, decided to suspend approval of new nuclear power stations, conduct comprehensive safety inspections of existing plants, and review all nuclear projects including those under construction. In October 2012, after concluding the inspections and reviews, the State Council issued a new plan that represents a serious and cautious reevaluation of safety issues and the pace of development. Called the Medium- and Long-term Nuclear Power Development Plan (2011-2020), its proposals include:

A return to normal construction at a controlled and orderly pace.

Permission for a limited number of new nuclear power reactors to be built in coastal sites that have been comprehensively evaluated.

A ban on new inland nuclear power projects, because the government fears a shortage of cooling water should accidents occur at such plants.

A requirement that all new projects meet the safety standards of the world’s most advanced nuclear reactors, known as third generation or Gen III reactors. Compared to earlier technology, these new designs incorporate improved fuel technology, superior thermal efficiency, passive rather than active safety systems, and standardized designs aimed at reducing maintenance and capital costs.

Based on the new plan, China will only approve a few new reactor construction projects before 2016. China now expects to grow its total nuclear capacity to 58 GWe by 2020, rather than the more than 80 GWe previously expected.

The government resumed approval of new nuclear power projects in December 2012, just as the new plan was issued. Several inland nuclear power projects where significant preparation work had already begun will be suspended, with some of their equipment likely transferred to coastal sites. While the pace of Chinese nuclear development will slow in the near term, the country’s long-term goals haven’t changed significantly. China continues to emphasize nuclear power as a crucial part of its energy mix. A government white paper issued in October 2012 observed that “as nuclear power is a high-quality, clean, and efficient modern energy resource, its development is of great importance for optimizing the nation’s energy structure and ensuring national energy security.” The white paper put China’s nuclear energy target at 40 GWe by 2015.”

via China moves cautiously ahead on nuclear energy | Bulletin of the Atomic Scientists.

24/04/2013

* Australia’s central bank to invest in Chinese bonds

BBC: “Australia’s central bank is planning to invest around 5% of its foreign currency reserves in Chinese government bonds, its deputy governor has said.

China's President Xi Jinping shakes hands with Australia's Prime Minister Julia Gillard

It will be the first time the Reserve Bank of Australia (RBA) will invest in sovereign bonds of an Asian country other than Japan.

The RBA has foreign currency reserves of A$38.2bn ($39.2bn; £25.7bn).

Earlier this month, the Australian dollar became the third currency to trade directly with the Chinese yuan.

“This decision to invest in China is an important one,” Philip Lowe, deputy governor of the RBA said in a speech to the Australian Chamber of Commerce in Shanghai.

“It reflects the broader economic relationship between China and Australia and our increasing financial ties.

“It provides greater diversification of our investments and will help with our understanding of the Chinese financial markets,” he added.”

via BBC News – Australia’s central bank to invest in Chinese bonds.

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