Posts tagged ‘foreign investment’

02/07/2015

China National Security Law Aims to Create ‘Garrison State,’ Experts Say – China Real Time Report – WSJ

China has adopted a sweeping national-security law that the government says is needed to counter emerging threats but that critics say may be used to quash dissent and exclude foreign investment. As WSJ’s Chun Han Wong reports:

Its passage marked the latest signpost in Beijing’s intensifying crackdown on activism and dissent during the past two years, featuring repression of civil-society groups, heightened monitoring of social media, and sharpened warnings against the spread of Western ideas and influences.

The new legislation forms the centerpiece of a series of proposed security laws, including draft laws on counterterrorism and the management of foreign nonprofit groups. Together, experts said, the laws underpin a push by President Xi Jinping to consolidate his and Beijing’s power and promote a notion of rule of law that doesn’t undermine the Communist Party’s authority.

These laws “reflect the party’s determination to create a garrison state,” said Jerome Cohen, a veteran China legal scholar at New York University. The national security law, he said, is “an ideological platform that guides domestic and foreign policies.”

via China National Security Law Aims to Create ‘Garrison State,’ Experts Say – China Real Time Report – WSJ.

14/01/2014

Kejriwal’s Foreign Shop Ban is Bad for Delhi – India Real Time – WSJ

Delhi’s decision to block foreign supermarkets in the capital–one of the few markets that matter in India–is bad for the city and for the country, some analysts said Tuesday.

As India looks to attract more foreign investment, New Delhi’s flip flop on accepting foreign investment in multi-brand retail in the capital sends the wrong signal, the analysts said.

“Delhi is one of the key metro markets, keeping it out of reach of retailers may significantly reduce the attractiveness of an India investment for any major retailer,” said Deep Mukherjee, a director at ratings agency Fitch. “This uncertainty with respect to change of guard at the state level will always be a problem for any long-term investor in the retail space.”

The new Aam Aadmi Party-led government in New Delhi this week asked the Department of Industrial Policy and Promotion to remove Delhi’s name from the list of cities which allow multi-brand retail stores. Multi-brand retail is Indian bureaucratic speak for retail stores that carry more than one brand, such as supermarkets.

Big global brands used to only be able enter India through franchises, wholesale stores or single-brand stores, such as clothing shops. That kept out big supermarkets such as those run by Wal-Mart Stores Inc.

Last year India opened the retail sector to allow foreign retailers to own up to 51% in local supermarkets. It asked the state governments to make the final decisions on allowing multi-brand stores.

Since then, eleven of the country’s 22 states–including Delhi–decided to allow multi-brand retail outlets.

Last month, however, the Aam Aadmi, or common man, Party, took control of Delhi in state elections after promising it would block foreign investment in retail, concerned it would hurt the mom and pop stores that dominate the sector.

Keeping foreign funds and expertise out of the sector will hurt consumers and delay the modernization of India’s outdated supply chains, said some industry groups.

via Kejriwal’s Foreign Shop Ban is Bad for Delhi – India Real Time – WSJ.

Enhanced by Zemanta
Law of Unintended Consequences

continuously updated blog about China & India

ChiaHou's Book Reviews

continuously updated blog about China & India

What's wrong with the world; and its economy

continuously updated blog about China & India