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China's start-ups hold
global change potential
Western opinion has largely greeted China's early attempts at innovation with
skepticism. Yet companies such as Tsing Capital and Chrysalix Venture Capital
are discovering entrepreneurs whose concepts represent a potential next wave of
innovative technologies that could impact the world. - Benjamin A Shobert(May
18, '12)
China eases bank lending
China's decision to ease bank lending follows unexpected weakness in the
economy, as production growth falters along with fixed-asset investment. The
one bright spot is a further easing in inflation. - Robert M Cutler
(May 15, '12)
Beijing tightens noose on
Taiwan - via Korea
Beijing and Seoul next week will start negotiating a trade pact that could
erode the advantage held by Taiwanese manufacturers (and Japanese outfits in
Taiwan) with factories in mainland China - unless Taipei acts quickly on its
own cross-strait trade talks. - Jens Kastner (May
8, '12)
US beef on Taiwan grill
Taiwan's ruling Kuomintang party narrowly defeated an opposition push to
suspend imports of American beef products following a case of "mad cow disease"
in California. A stunning local election result immediately afterwards means
the debate is far from over. Dennis Engbarth (May
7, '12)
China's mines still deadly
The Chinese government has taken numerous measures to rid the country of
illegal coal mines and to improve safety. Yet disasters at illegal and legal
mines continue, along with cover-ups by local officials of even fatal
accidents. - Clarissa Sebag-Montefiore (May
3, '12)
China, Russia agree US$15 bn
trade boost
Contracts worth US$15 billion were signed during a visit to Russia by Chinese
vice premier Li Keqiang, among them a $1 billion aluminum mill project
involving Oleg Deripaska's Rusal and China's Norinco. Progress may even have
been made on the two counties' stalled gas pipeline plans. - Robert M Cutler
(May 2, '12)
EU-China relations send US
mixed lesson
The United States may eventually face fiscal and economic challenges similar to
those confronting the European Union, particularly in how to handle relations
with trade partner China. But while the EU understands its place in the world,
an insecure Washington is more likely to blame China for the very reason it
needs Beijing's assistance. - Benjamin A Shobert
(Apr 26, '12)
Europe undams Myanmar
sanctions
The European Union's suspension of sanctions on Myanmar's military and business
leaders is due reward for President Thein Sein's reform efforts, including the
release of some political prisoners and letting Aung San Suu Kyi win a seat in
parliament. His early decision to halt work on the contentious Myitsone Dam,
however, suggests Beijing may be the real arbiter of Myanmar's fate. - Chris
Stewart (Apr 24, '12)
Taiwan's lovers feel shock
of electricity price hikes
Electricity price increases threaten to drive up food costs, put bakers out of
business, and curb activity in Taipei's love hotels. Recently re-elected
President Ma Ying-jeou's government says it has no choice. Critics say it has
misread the need for the price rises and cite costly crony deals between big
power companies and independent power producers. - Jens Kastner
(Apr 23, '12)
China set for stormy seas
The sharp decline in China's current account surplus may considerably worsen,
or be significantly reversed, depending on the forecaster. Either way, it is
going to be a very strained and difficult process for both China, as it
attempts to "rebalance" its economy, and the world. - Michael Pettis
(Apr 19, '12)
Japan's demand conundrum
Japanese Prime Minister Yoshihiko Noda seems to back a policy mix whose chances
of success rest on fundamental contradictions. Squeezing money out of people,
especially when every country tries to do it at the same time, does not bring
prosperity, only misery - something the global elites have yet to re-discover.
- R Taggart Murphy (Apr 19, '12)
SPEAKING FREELY
Beijing takes steps to
free-float currency
China's decision to widen the trading limit of its currency amid a slowing
economy are evidence it is not worried about a hard landing or rapid yuan
appreciation, yet external politics, including the US presidential election and
this week's IMF/World Bank meeting, are no doubt central factors in the timing
of the announcements.
- Richard Colapinto (Apr 19, '12)
Sands bets big again in
Macau
Opened Wednesday, Sands Cotai Central targets China's middle-class and
international conventions. Officials of Sands China and its parent company Las
Vegas Sands call the US$4.4 billion casino resort a "game-changer" to transform
the world's leading gambling destination. - Muhammad Cohen
(Apr 12, '12)
China growth fragile
Demand in March from the United States and Europe helped China register a small
first-quarter trade surplus, but lower-than-expected imports and a pessimistic
outlook at China's small- and medium-sized businesses suggests rocky overall
growth. - Robert M Cutler (Apr 11, '12)
The US as number two
The Chinese economy may already be 20% larger than that of the United States,
its growth increasing the options available to other countries, such as in
raising capital. Beijing's policies may yet help ease others from the wasteful
straightjacket of US patent and copyright rules. - Dean Baker
(Apr 5, '12)
Taiwan sets sight on
becoming yuan hub
The thousands of Taiwanese companies doing business in mainland China are
obliged to do their currency dealings by way of Hong Kong. That could change if
a renewed drive to allow direct conversion of the island's currency to yuan
makes progress and Taiwan is made a hub for yuan exchange. - Jens Kastner
(Apr 4, '12)
Invisible hand eases Kwok
arrest shock
With Hong Kong chief executive elect Leung Chun-ying not yet in office, the
arrest of Thomas and Raymond Kwok, billionaire owners of Sun Hung Kai
Properties, sent a shiver through markets. Yet normality was back by day's end.
The invisible hand that takes, can also give back, if its reach is long and
stealthy enough.
- Chris Stewart (Apr 2, '12)
China trade sets Brazil
poser
Brazil's growing relationship with China has helped to drive trade higher with
a surplus in the former's favor. On the downside, the emphasis on supplying
commodities is threatening to pull Brazil's economy backwards. - Fabiana
Frayssinet (Apr 2, '12)
Taiwan, Hong Kong resist
Chinese downturn - for now
Taiwan and Hong Kong continue to outpace the mainland China economy, where a
slowdown is anticipated. Taiwan's exports gained 10.3% in February over
February 2011, while Hong Kong's exports rose 14%. Whether these markets can
continue in the same manner will depend on how jolting the first bump of the
Chinese "landing" will be. - Robert M Cutler (Mar
30, '12)
Battle resumes for miner BC
Iron
A year after small Australian miner BC Iron saw off Hong Kong-listed Regent
Pacific, regulators are saying what they thought of the takeover bid.
Meanwhile, Chinese interests, Regent and Ukrainian metals magnate Gennady
Bogolyubov are competing for increased stakes and the shares are going strong,
even as ore prices slide. - John Helmer (Mar
27, '12)
China outlook gloomy
The latest survey of Chinese industry points to further weakening of domestic
demand, adding to concerns of an Asia-wide slowdown eased slightly by export
powerhouses South Korea and Singapore. - Robert M Cutler
(Mar 23, '12)
Russia's one-sided trade
affair
A 50% rise in Russia's exports to China last year furthered Moscow's goal of
higher trade with its fast-growing neighbor. Yet Chinese business interest in
the other direction barely exists, with investment halving in 2011 to only 0.5%
of China's total foreign investment in the period. - Sergei Blagov
(Mar 22, '12)
Mainland slips on fishy plan
to boost cross-strait business
Mainland Chinese efforts to boost cross-strait ties by promoting the import of
Taiwanese-reared milkfish, popular across southeast Asia, have flopped - and
not just because the fish's name in Chinese has some unfortunate connotations
and it comes complete with an inordinate number of bones. - Jens Kastner
(Mar 22, '12)
SPEAKING FREELY
Rare earths - the next oil
The decision of the United States, the European Union and Japan to file a joint
case at the World Trade Organization against China over its handling of trade
in rare earths - the first such cooperation by the three powers - highlights
the strategic importance of what are, in fact, non-rare elements. China will
not easily let go of its advantages in controlling supply. - Elliot Brennan
(Mar 15, '12)
Chinese growth slows
A slowdown in China's economic growth, evidenced by the latest data, is
forecast by the government to go below the level necessary to absorb new
entrants into the labor market. - Robert M Cutler
(Mar 14, '12)
Beating China, corporate
style
The prospect of US manufacturers in China relocating to the US, favored by
politicians in Washington, raises the prospect of improved employment prospects
back home - an illusion that masks the decline in US workers' earning power. - Hannah
Gurman (Mar 8, '12)
China's new tax yet to pay
off
A year after China introduced a trial property tax scheme in response to
soaring real estate prices, the benefits of such a tax are scarcely apparent on
the ground while the problems of full implementation are yet to be addressed. - Eve
Cary (Mar 5, '12)
California poses rail risk
for China
China appears very willing to plunge into California's proposed high-speed rail
project even as participation would be a magnet for complaint in the United
States, while the project's vast uncertainties could make it a lethal bet. Yet
without Chinese funding it is difficult to see how the rail project will be
built. - Peter Lee (Mar 2, '12)
Huawei set challenge by
sanctions on Iran
China's Huawei Technologies, set to become the world's largest
telecommunications infrastructure supplier, is having to decide, along with
other leading Chinese companies whether the considerable earnings it garners in
Iran are worth attracting the (potentially expensive) hostility of the United
States. - Avi Jorisch (Mar 1, '12)
Wukan 'solution' fails key
land-rights test
That land-right reforms are needed if China is to promote social stability and
continued economic growth is well known. The official response to a recent
land-centered protest in Wukan indicates those reforms and appropriate use of
existing laws remain a distant prospect. - Benjamin A Shobert
(Feb 27, '12)
BOOK REVIEW
BRIC by brick to the future
The Growth Map: Economic Opportunity in the BRICs and Beyond by Jim
O'Neill.
Few economists saw their reputations survive intact after the global financial
crisis. The pre- and post-crisis growth of China and other BRIC countries has,
however, burnished the standing of Jim O'Neill, who now expands his search to
identify the world's next growth centers. - Benjamin Shobert
(Feb 24, '12)
Taiwan airlines target
mainland's airspace
EVA Airways and other Taiwanese airlines are seeking the money-saving right to
use Chinese airspace for flights to Europe and eased restrictions so that
mainland tourists can use Taiwan as a hub for travel elsewhere, creating an
interesting transit terminal for money, the military and politicians. - Jens
Kastner (Feb 23, '12)
Hi-tech heart of China's
military
China Electronics Technology Group is overshadowed by the likes of Huawei and
ZTE in terms of global fame, yet it is an industrial and research behemoth that
lies at the heart of Beijing's goal of producing advanced electronics for
military, leveraging civilian technology to do so. - Matthew Luce
(Feb 23, '12)
NetDragon bites bit of
iPhone popularity
A unit of Hong Kong-listed NetDragon Websoft has produced a tool, 91 Assistant,
that up to 80% of China's iPhone users consider a must-have software for
helping to download mobile-phone applications. It now hopes a sale of the
unit's shares will be as popular. - Sherman So
(Feb 22, '12)
'Unfair' cudgels are out
As US political leaders condemn Chinese trade practices, Chinese Vice President
Xi Jinping wants an end to curbs on high-tech US exports to China and easier
access for Chinese firms to America. Leaders of both nations apparently want a
freer business climate, while proposing measures to the contrary. - Nick Ottens
(Feb 21, '12)
Romney lays ground for China
trade war
The most sane, pro-business candidate still viable in the Republican primaries
claims not to want a trade war with China, but makes a strong case to an
insecure electorate for how he would make one all but certain. Mitt Romney's
latest push for votes is irresponsible fear mongering. - Benjamin A Shobert
(Feb 21, '12)
China shale-gas drive
appears over-ambitious
China, an importer of natural gas for the past four years, is investing heavily
in securing technology to develop the country's extensive shale gas reserves.
Yet the geological and related technical challenges suggest the recovery target
is far too ambitious. - Robert M Cutler (Feb
17, '12)
SOEs spur congress to grind
old axe for China's Xi Jinping
Xi Jinping, expected to be China's next leader, may represent the new face of
his country but he is being made aware during his visit to Washington that
forces in the US Congress see little sign of change in Beijing's use of
all-important state-owned enterprises to further China's economic interests. - Benjamin
A Shobert (Feb 16, '12)
Aynak ore creates dilemma for
treasure
The grounds of Mes Aynak in Afghanistan's Logar province are a 4,000-hectare
trove of Buddhist monastery ruins, statues and tombs that sit largely preserved
under layers of unexcavated earth. It is also the site of a massive
Chinese-funded project to extract copper. - Frud Bezhan
(Feb 14, '12)
Taiwan fails to lure
mainland investors
Taiwan has gradually opened up to investments from mainland China since 2009 in
spite of concern that the former arch-enemy would use its money as a means to
achieve backdoor unification. Yet a noteworthy flow of Chinese foreign direct
investments toward Taiwan is conspicuous by its absence. - Jens Kastner
(Feb 13, '12)
Anhui medicine wrong for
China
China's large population offers great opportunities for domestic and overseas
pharmaceutical companies. Yet local and central government efforts to hold back
healthcare costs - notably through the "Anhui" bidding model - threaten to
squeeze suppliers out of the market. - Benjamin A Shobert
(Feb 13, '12)
China resource dig needs
security
China's involvement in Central Asia has centered on extraction of resources
such as oil and copper, only recently accompanying investments with security
contributions. Cooperation, rather than rivalry, with the United States over
Afghanistan could be a win-win for all concerned. - Dong Yu
(Feb 13, '12)
China-Canada boost ties
Canadian Prime Minister Stephen Harper, whose country runs a huge trade deficit
with China, has signed a foreign investment agreement in Beijing that may
encourage smaller Canadian firms to set up shop in China. A US$1 billion fund
will facilitate Chinese investment in Canadian resource companies. - Robert M
Cutler (Feb 10, '12)
Chinese give boost to
illegal ivory trade
A surge in the number of Chinese visitors to Egypt - tourists and expat workers
- has given a new lease of life to Egypt's illegal ivory business, with
US$50,000 trades on carved ivory items possible during a single bargaining
session.- Cam McGrath (Feb 7, '12)
$1 bn shale-gas deal sweetens
Beijing trip by Canada's Harper
PetroChina's estimated US$1 billion purchase of a stake in a Canadian shale-gas
project sets the tone for Prime Minister Stephen Harper's visit to Beijing next
week. China's urgent desire to exploit its own vast unconventional gas reserves
dovetails nicely with Canada's technological know-how and willingness to do
business. - Robert M Cutler (Feb 3, '12)
Despair in the air at Davos
The absence of heavy hitters from China at Davos this year did not prevent the
West's movers and shakers who were present clamoring for Chinese assistance in
bailing out capitalism - ignoring the point that capitalism is in fact
stronger, freer and more powerful than ever. - Peter Lee
(Feb 2, '12)
China's resources policy
attracts
attention of congress
China's limited natural resources help to drive its pursuit of these overseas,
at times with countries hostile to the United States, even as Beijing leverages
for extra economic and political gain those valuable resources it does have.
The US Congress is taking due note. - Benjamin Shobert
(Feb 1, '12)
Zimbabwe's yearn for yuan
China's influence in the Zimbabwean economy is ubiquitous after President
Robert Mugabe opened the door. It may soon have a presence in every pocket if
the African nation acts on plans to introduce the yuan as an official currency,
though many are not happy about what this would represent. - Ignatius Banda
(Jan 27, '12)
China tweaks tools for a
soft landing
This year is shaping up as a potential watershed in the Chinese
administration's long-standing effort to restructure the economy and avoid a
hard landing, despite the penchant for sticking with time-tested means to
reinflate growth. A bigger role for the private sector and a global vision for
the yuan may feature in the tool kit. - Willy Lam
(Jan 24, '12)
New China FDI rules put
focus on ascent
China's new guidelines on foreign direct investment point overwhelming to a
greater welcome for foreign participation in the economy, albeit with
preferences for technologies that help the ascent from the world's factory
floor to higher in the value chain and investment focused on central and
western regions. - Benjamin Shobert (Jan 23,
'12)
China's slowdown fears ease
Fears are easing that China's efforts to rein in inflation will drag down
economic growth to dangerous levels, with expansion at the end of last year
stronger than expectations. Further slowing is forecast, but a hard landing now
looks unlikely. - Robert M Cutler (Jan 19,
'12)
Taiwan braced for mainland
chill
Taiwan, which sends about a third of its exports to mainland China, is braced
for the impact of slowing growth in its most important market. Yet local fears
could be out of place, with only a limited number of firms dependent on the
mainland consumer. - Jens Kastner (Jan 18,
'12)
Angry Birds head for China
Rovio Entertainment, the Finland-based company whose Angry Birds is among one
of the most popular mobile-phone games, is setting up shop in Shanghai as it
seeks to build itself into a franchise on the scale of Disney. - Sherman So
(Jan 17, '12)
Yacht-maker Ferretti finds
new life in China
Shandong Heavy Industry's purchase of Ferretti Group, the world's biggest maker
of luxury yachts, will give the struggling Italian company better access to
China's growing number of extremely rich consumers looking for ways to flaunt
their wealth. - Chris Stewart (Jan 13, '12)
China's slowing growth
poses
tough challenge
China's slowing trade growth and possibly the slowest economic expansion for
two years pose early challenges for Beijing as the country prepares for its new
year holiday. Easing its tough monetary policy could merely exacerbate already
dangerously high local debt risks. - Robert M Cutler
(Jan 12, '12)
Pharma faces China
healthcare challenge
China has extended basic healthcare insurance to 1.3 billion people, helping to
drive 30% growth rates there for companies such as AstraZeneca, Johnson &
Johnson and GlaxoSmithKline. Government involvement, however, also presents a
challenge. - Benjamin A Shobert (Jan 11, '12)
China faces gloomy new year
The Year of the Dragon is generally considered auspicious in China, but it can
sometimes be calamitous. Political transition across Greater China (and
possibly in the United States), slowing growth, weakening exports and plunging
property prices are just a few of the dark clouds over this year's
celebrations. - Antoaneta Becker (Jan 10,
'12)
China, India face deep
challenge of home-made errors
China and India have shown they can stand on their own two feet amid economic
contractions in the West. Now they must prove - and their neighbors and the
West hope - they can navigate instability caused by policy decisions of their
own making. - Benjamin Shobert (Jan 9, '12)
Wukan denies land protest
aims at revolt
Government officials and police have fled the Chinese village of Wukan as
residents demand back land they say was stolen from them. But with the area
famed as the birthplace of the country's first communist revolution, organizers
are at pains to proclaim their peaceful intent and love of the Communist Party.
- Olivia Chung (Dec 20, '11)
Galaxy Macau wins out
Galaxy Entertainment Group has more than doubled its market share of the Macau
gambling scene in little more than six months, thanks to its newly opened
Galaxy Macau. Delays to the project have been put to good use by the group,
helping it to bring a fresh approach to targeting mainland gamblers. - Muhammad
Cohen (Dec 19, '11)
China shows its skills
with
world trade rules
US Trade Representative Ron Kirk's report to the US Congress warns that China
"has not yet fully embraced" key World Trade Organization principles. Yet the
evidence suggests China has a more realistic grasp of the rules of the game
than we give it credit for - even as its subsidies benefit the West. - Peter Lee
(Dec 16, '11)
A new ARMZ race
The road to a Russian monopoly on uranium - led by AtomRedMetZoloto - leads
through Mongolia. The end point is the Mayak spent nuclear fuel processing
plant, in the Urals - which earned yet another snub last month when the Swiss
nuclear energy authority joined the list of countries declining to send spent
fuel there due to environmental concerns. - Peter Lee
(Dec 12, '11)
China 'easing' outlook
boosts Asian stocks
Asian stocks gained on the prospect that China's leaders, gathering to map out
economic policy for next year, may soon ease lending by banks and cut interest
rates as a increasing number of indicators point to stumbling economic growth.
- Olivia Chung (Dec 12, '11)
China builds Turkish gas
facility
The "new cooperation paradigm" that since 2010 defines relations between China
and Turkey has been further animated by an agreement for China's Tianchen
Engineering Corp to build a US$640 million underground natural gas storage
facility south of Ankara that will nearly double Turkey's gas storage capacity.
- Robert M Cutler (Dec 8, '11)
Sino-US relations at
vulnerable juncture
The latest annual report of the US-China Economic and Security Review
Commission comes at a particularly sensitive time, with leadership changes due
in both countries next year. It suggests that unless they each find a better
balance of their respective domestic economic and political needs, they may be
on the road towards additional conflict instead of cooperation. - Benjamin A
Shobert (Dec 8, '11)
SPEAKING FREELY
Time to recall China’s
accession to the WTO
Nearly 10 years ago, China became a member of the World Trade Organization. Its
membership never meant trade disputes would cease. What the WTO has done,
though, is to make most such controversies routine and to give all countries
including China mechanisms they can exploit to defend their interests. - Jean-Marc
F Blanchard (Dec 8, '11)
To Beijing with love
Asian demand for commodities has helped to save South America from the worst
effects of recent economic downturns in the United States and Europe. But loss
of competitiveness against cheap imports from China is raising concern that
more should be done to secure future growth. - Marcela Valente
(Dec 7, '11)
Cooling economy leaves air
in China's easing homes market
The latest moves by the People's Bank of China suggest an end to a general
policy of monetary tightening as declines in manufacturing indexes point to a
slowdown in growth. Property prices continue to fall, but there is no sound of
a bubble popping. - Robert M Cutler (Dec 7,
'11)
Obama risks oil threat to
China
The United States' change of focus away from the Middle East and towards the
Asia-Pacific and its sea lanes is grounded on one important factor - rising
energy production in America and a widening fuel gap in China. Yet Washington's
hemispheric energy policy is a fatal brew. - Michael T Klare
(Dec 7, '11)
Chaoda joins junk heap
The recent debt downgrade to "junk" status of Chaoda Modern Agriculture,
China's largest fruit and vegetable producer, is further undermining investor
confidence in Chinese listed companies, with more than 40 in the United States
alone now acknowledging accounting problems or regulatory investigations. - Olivia
Chung
(Dec 6, '11)
Taiwanese TV goes primetime
in mainland
Taiwan's TV industry, recognized as being a step ahead of its mainland
counterparts, will soon cash in on its more edgy skills as restrictions are
eased on mainland showings of productions made with cross-strait partners.
Go-it-alone movies and shows, however, will have to keep waiting for access to
the billion-strong audience. - Jens Kastner (Dec
6, '11)
China's brands in the
shadows
Chinese companies are struggling to establish recognizable brands in the United
States though consumers there are surrounded by Chinese-made products. Their
best bet might be to focus on building business ties and on fast-growth
emerging economies rather than financially squeezed Western shoppers. - Benjamin
A Shobert (Dec 1, '11)
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