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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)
China's property boom cools,
pain spreads
China's efforts to cool its property market appear to be working - new home
sales are down, developers are slashing prices, and land sales are being
cancelled. That should please Premier Wen Jiabao - but local governments,
steelmakers, and excavator manufacturers are hurting, not to mention real
estate agents. - Olivia Chung (Nov 29, '11)
China hunts for happiness
After decades of power sustained by delivering constantly rising living
standards, China's rulers fear this may no longer be enough for its citizens.
Guangzhou, China's wealthiest city, is now leading a campaign to make folk
"more happy, backed up by its own happiness index. - Antoaneta Becker
(Nov 29, '11)
Taiwan's Ma fails to stir
panic on rising rival Tsai
Taiwanese President Ma Ying-jeou, faced with losing January's presidential
election to Tsai Ing-wen, warns that such an outcome could ruin the island's
economy. His claims, even if overstated, have some substance, yet the
anti-unification Tsai could be the voters' best bet as global recession
threatens. - Jens Kastner (Nov 28, '11)
China bubble a global
concern
A crash in China's property market, and with it a serious slowdown of the
Chinese economy, could have worse implications for the world economy than the
much touted exchange rate issue. The tottering global financial system is not
in shape to suffer another major unexpected shock. - James Nolt
(Nov 22, '11)
BHP in front line as Marines
take Darwin
China has made clear its likely responses to President Barack Obama and Premier
Julia Gillard's deployment of US Marines to Darwin will involve areas beyond
Australia's US protection - such as changing its sources of minerals and
metals, Australia's principal trade goods. That could be good for Russia, and
not beneficial for BHP. - John Helmer (Nov
21, '11)
Shanghai-led bond
sales may ease China debt fears
China's local governments went on a spending - and borrowing - spree under the
country's stimulus package introduced at the end of 2008, with many loans
bypassing the legal framework. Shanghai and Guangdong this week led a new
scheme of direct bond sales that will help spending to continue - and may help
to forestall huge debt defaults. - Olivia Chung
(Nov 18, '11)
Pharma adds China booster
Western drug firms recognized early that China was an attractive market in its
own right rather than a production base for export. They now find its
relatively cheap scientists make China an excellent place for research and drug
discovery. The risk is headaches brought on by too-close government interest
and copyright protection. - Benjamin A Shobert
(Nov 17, '11)
EU, China at moment of truth
Debt-bound Europe wants China to help out through investment and more openness
to European products. China's own shopping list is less idealistic, simpler and
deliverable in the short term. That Beijing is more realistic and hardnosed is
not new - it is now just more starkly obvious. - Kerry Brown
(Nov 16, '11)
US, China in Sudan great
game
The division of Sudan has left the north as a terminal for oil pipelines
running from the newly independent south. China, as the most important buyer of
the fuel, has reason to see peace and the status quo prevail. The United
States, however, sees opportunity for change and new business. - Brian M Downing
(Nov 14, '11)
Hong Kong economy shares
global pain
Hong Kong's economy is growing at a 4.3% pace, enough to please most countries
but not sufficient to banish the gloom pervading the city as property sales
stall and exports contract on falling demand from China, the United States and
Europe. A lending crisis over in the mainland fuels the pessimism. - Olivia
Chung (Nov 14, '11)
China's richest keep firm
eye on exit door
China's wealthiest citizens, having profited from the maxim that "to get rich
is glorious" (often associated with Deng Xiaoping's push for economic
liberalization) are now following another, more personal, guideline - "get
rich, then get out". An estimated 60% of those deemed rich in China are
planning to emigrate, with the United States their favorite destination. - Olivia
Chung (Nov 10, '11)
A crack in the wall
Numerous China's small businesses, their narrow profit margins hurt by rising
costs, a downturn in export orders and a credit squeeze, are going bust. The
government help cannot hide that the factories and workers with which China's
economic miracle began are now outdated. - Benjamin A Shobert
(Nov 9, '11)
China looks at life after
euro
China is admonishing the European Union for having "thrown its principles out
of the window", a turn around from times not long ago when mandarins in
Brussels lectured Beijing on its economic management. It is busy too drawing up
contingency plans for the break up of the eurozone. - Antoaneta Becker
(Nov 9, '11)
The short, sharp life of
'Chinese century'
This has been billed as "China's century", as the country overtakes the United
States as the world's biggest economy. But with its widespread poverty,
citizens' growing aspirations, rising wage costs and inconsistent legal system,
it will be quite a feat if it ends up as tomorrow's superpower. - Nick Ottens
(Nov 8, '11)
China's SOEs pose challenge
to congress
China's stalled economic reforms, exemplified by the still powerful role of
state-owned companies, are causing even Westerners sympathetic to the country's
challenges to begin questioning where China is headed. If their faith weakens,
what little can we expect from today's US Congress? - Benjamin A Shobert
(Nov 3, '11)
China's home price protests fail
to budge discount developers
Protests by Chinese homebuyers seeking refunds from cash-strapped developers
offering discounts of as much as 30% to newcomers look likely to grow - and
fail, as already declining property prices are set to continue down as the
government stands by its anti-inflation policies. - Olivia Chung
(Nov 2, '11)
China's farming history
now misapplied in Africa
China is being held up as an Asian agricultural tiger for the nations of
sub-Saharan Africa to emulate. Africa's leaders ought to carefully study their
comparative world history before accepting this advice. - William G Moseley
(Oct 31, '11)
SPEAKING FREELY
China-US trade ties too
important to fear
Discord over the Sino-America trade imbalance and its causes is potentially
dangerous. The trade relationship is one of mutual dependence. The two
economies are so integrated there's only one sensible way forward - deepening
that integration. Misleading currency chatter does not help. - Nick Ottens
(Oct 28, '11)
Fortune-teller Chan loses
last hope of Wang fortune
Feng shuimaster Tony Chan Chun-chuen made millions of dollars with his
"skills" but failed to see his own future - forgery charges, huge tax bills,
potentially even bigger court costs - when he set out to pocket the wealth left
by the late Nina Wang, once Asia's richest woman. - Olivia Chung
(Oct 27, '11)
Rules beat protectionism
China's currency performance is only one aspect of its trade relations that
worry US legislators, but responding with protectionism will only increase
economic malaise and raise political tensions. Pushing Beijing to live within
the international rules it has signed up to is the best forward. - Benjamin A
Shobert (Oct 27, '11)
China's borrow-and-die
epidemic
spreads north
The fatal price paid by small Chinese companies as they borrow at extortionate
rates is growing. Just weeks after Premier Wen Jiabao visited the eastern city
of Wenzhou to find out why small companies were going bust, Ordos, in Inner
Mongolia, is the latest center for suicides, bankruptcy and fleeing developers.
- Olivia Chung (Oct 25, '11)
Beijing caught in debt
dilemma
China, in contrast to the United States and Europe, appears a bastion of
financial and economic stability. Failure to stem closures of small companies
and contain collapses in the underground banking system could rapidly wreck
that illusion. - Willy Lam (Oct 20, '11)
Groupon, Lashou race for IPO
Lashou, a Chinese group-buying website inspired by US market leader Groupon,
hopes an initial public offering in the United States will confirm it is worth
as much as US$1billion. Groupon may get to the market first with its own
revived IPO bid - and a much diminished valuation. - Sherman So
(Oct 19, '11)
China's growth falters
Falling export demand and a monetary squeeze continue to slow China's economic
expansion, but retail sales are still surging at a 17%-plus level and
industrial output is not yet slackening, leaving little room for the government
to start easing back on high interest rates. - Olivia Chung
(Oct 19, '11)
Go-alone tourists shun
Taiwan
Mainland residents have failed to take advantage of a new scheme allowing
individuals to travel to Taiwan on their own rather than as part of closely
monitored tour groups. A less-than-warm reception is seen as one factor; local
island politics may be more central. - Jens Kastner
(Oct 18, '11)
 SINOGRAPH
Faltering China
carries global risk
As China's growth falters, the country is having to contend with too many
doubtful loans, too much new property, and a squeeze on small, exporting
businesses. The impact on Europe and the United States could exacerbate their
economic problems in a dangerous cycle with huge implications. - Francesco Sisci
(Oct 17, '11)
Russia misses key China deal
Vladimir Putin signed investment agreements worth US$7 billion during what was
probably his last trip to China as Russian prime minister. A $1 trillion
contract for Siberian natural gas exports, however, continues to evade the
Kremlin's grasp. - Robert M Cutler (Oct 13,
'11)
China's small firms see
profits disappear
Small non-state owned companies, which have helped to make China the world's
factory, are being squeezed by rising costs and declining demand from overseas.
More than 70% in the industrial heartland of the Pearl River Delta expect to
make no profit over the next six months. - Olivia Chung
(Oct 13, '11)
Mamtek scandal mars
benefits of China's investments
Moberly, Missouri, did all it could to persuade Chinese firm Mamtek to build a
job-creating factory in the town - except, perhaps, do a thorough background
check on the company. Now US municipal leaders may get the wrong message and
overlook the real benefits Chinese investment can bring. - Benjamin A Shobert
(Oct 12, '11)
China's tax collectors lead
splurge league
The State Administration of Taxation runs up more bills for overseas jaunts,
official vehicles and fancy receptions than any other government department in
China. A fancy yacht for doing the rounds of a lake in Zhejiang is just one
apparent necessity. - Olivia Chung (Oct 6,
'11)
Mainland picks fruits of
Taiwan's labor
Taiwan's innovative agriculture has been recognized by mainland China, which is
stocking its own "pioneer park" centers of research with know-how in the form
of the island's scientists, farmers and new plants. Taipei's politicians are
warning of the risks involved in time for an election vote harvest. - Jens
Kastner (Oct 4, '11)
Hong Kong could peg to land
Hong Kong's currency peg with the US dollar in theory offers stability; in
practice its downside at present includes exacerbated property price inflation.
Adoption of a yuan peg is only a remote possibility, and a switch to a currency
backed by the territory's own land would be more practical. - Chris Cook
(Oct 4, '11)
China's debt-heavy bosses go
on the run
Hu Fulin, founder of one of China's biggest makers of spectacles, is one of
more than 20 company bosses who have fled their factories in recent weeks owing
debts worth millions of dollars to underground lenders. Hu is now believed to
be in the United States. Others were less fleet-footed. - Olivia Chung
(Sep 30, '11)
The right kind of mistake
The collapse of US solar company Solyndra may prove Washington should have no
role in developing clean-technology - or indicate this was simply a bad
investment and part of the cost of developing a strategy for how the United
States will compete with China. - Benjamin A Shobert
(Sep 30, '11)
Shanghai rail crash raises
demands for better oversight
China's latest rail accident, this time in Shanghai's underground network, has
led to calls for a slowdown on all subway railway construction and a closer
look at the ability of management as automatic signaling systems again appear
to be involved. - Olivia Chung (Sep 29, '11)
Taiwan set to remove
ethylene straightjacket
A tanker carrying ethylene - essential to innumerable industrial processes and
products - sailed directly from mainland China to Taiwan this month, a journey
that could start a transformation of Taiwan's petrochemical industry - even if
Iran stays out of the picture. - Jens Kastner
(Sep 27, '11)
Mongolia resource sales hit
headwind
Mongolia is starting to turn its vast mineral resources into hard cash, with
privatization of coal-company Erdenes Tavan Tolgoi expected to raise US$300
billion. Local politicians are unhappy about some such deals and, foreign
investors are uneasy about possible changes.
- Steven Borowiec (Sep 22, '11)
Taiwan takes to Scotch
Scotch whisky is the must-have drink in Taiwan, with sales possibly soaring as
much as 45% in the first half of this year, even as the island's economy gives
little cause for celebration. - Jens Kastner (Sep
20, '11)
China's cash floods into
Canadian energy sector
Chinese cash is flowing into Canada, with particular interest in developing
energy resources in tar-sands rich Alberta, which alone attracted Chinese
investment worth US$15.2 billion last year. That creates questions over future
oil flows to the United States market. - Wenran Jiang
(Sep 19, '11)
Caribbean warms to Beijing
Chinese Vice Premier Wang Qishan added more than US$1 billion to the largesse
his country hands out to Caribbean nations during his visit to the region this
month. The support is largely welcomed, although it also raised concerns of
more "huge unnecessary projects using taxpayers' money". Peter Richards(Sep
19, '11)
China's inflation eases
China's efforts to rein in inflation appear to be having some effect, with
August's figures continuing a steady decline since July. Yet food prices
continue to surge at double the headline rate and the full-year target is
looking well beyond reach. - Robert M Cutler (Sep
15, '11)
China's decline - a US
challenge
China is on an unsustainable path that will result in economic stagnation or
decline in the coming decades, putting at risk the Communist Party's "social
contract" with the people. The challenge to the United States is not to
exacerbate that decline and to avoid making matters worse both for China and
the rest of the world. - Samuel A Bleicher (Sep
14, '11)
China's elderly offer opening
for West's
healthcare companies
Western operators of places where old people see out their days are recognizing
the opportunities in China, where it is acknowledged that a "demographic
tsunami" is about to hit the country. Before profits flow, considerable
cultural and local barriers have to be overcome, not least the cost of real
estate. - Benjamin A Shobert (Sep 13, '11)
Poet Huang's Iceland purchase
too big for locals to handle
Poet, mountain-climber and businessman Huang Nabo made what he thought was a
reasonable deal in buying a piece of Iceland at the urging of a local friend.
The scale of the deal - 300 square kilometers - is scaring other Icelanders,
who see a nefarious Chinese government plot in the background. - Olivia Chung
(Sep 12, '11)
SPEAKING FREELY
Inward look at Chinese
outward investment
Fear of being displaced by China tops off many claims that its companies'
overseas investments bring wanton damage to the environment, the abuse local
workers, and disregard for traditional customs. Such anxieties are based on an
ignorance of the facts or context amid China's dramatically changing profile as
an outward investor. - Jean-Marc F Blanchard (Sep
12, '11)
US drivers pay steep price
for China tire tariff
Car and auto drivers are paying a steep price for swingeing tariffs imposed on
imports of Chinese tires and now backed by a highly questionable World Trade
Organization ruling; yet even as tire-factory investments surge outside, not
inside, the US, don't be too surprised if the tire tariff is extended. - Peter
Lee (Sep 9, '11)
Taiwan's machine tool firms
in export boom
Taiwan's machine-tool makers are moving to the top of world rankings thanks to
demand from mainland China and helped by trade terms with Beijing that came
into force this year. Germany's Siemens is among overseas outfits seeking to
join the bandwagon. - Jens Kastner (Sep 7,
'11)
COSCO pays up at cost to
dry-bulk trade
China shipping giant COSCO's decision to withhold and seek renegotiation of
ship charter payments after a sharp drop in market prices has tainted its
reputation and could threaten the credibility of the dry-bulk business a whole,
analysts warn as the company reaches agreement with some ship hirers. - Olivia
Chung (Sep 6, '11)
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