Over 5.7m rural Chinese return from cities to start businesses
- More than 5.7 million rural Chinese have returned from cities to their hometowns to startup businesses, Vice Minister of Agriculture Chen Xiaohua said Thursday. Among them, 4.5 million people are rural migrant workers who used to work in urban areas away from home, while the rest are mainly fresh graduates and retired soldiers who left home for education or service, Chen said at a press briefing.
China’s foreign investment ‘shopping spree’ over as Beijing moves to slash capital outflow
29 November, 2016
- Beijing is embarking on a massive policy shift designed to stem capital flight by curbing outbound investment, sources say. Shanghai’s municipal foreign exchange authority had told bank managers in the city that all overseas payments under the capital account of more than US$5 million would have to be submitted to Beijing for special clearance before proceeding, according to the sources.
China ranks third in the world in household wealth
- China, with 1.6 million millionaires, accounts for five percent of all millionaires worldwide and nine percent of the top wealth holders, according to the report. The wealth per adult has risen from $5,670 in 2000 to $22,864 in 2016 in China. In addition, China has the third largest household wealth worldwide, following the United States and Japan.
How Apple Lost China to Two Unknown Local Smartphone Makers
November 22, 2016
- Two years ago, Oppo and Vivo couldn’t crack the top five in China’s smartphone market. Now they outrank everyone after elbowing Apple aside, thanks to people like Cheng Xiaoning. “Oppo and Vivo are willing to share their profit with local sales. The reward was an extremely active and loyal nationwide sales network,” said Jin Di, an IDC analyst based in Beijing. While they declined to detail their subsidy program, she estimates the two were the top spenders in the past year. “They’re doing something different — they do local marketing.”
China top innovator with one million patent requests in year: U.N.
Nov 24, 2016
- China is driving Asian-led growth in innovation worldwide, becoming the first country to file 1 million patent applications in a single year, the World Intellectual Property Organization (WIPO) said on Wednesday. Chinese innovators filed most of their 2015 applications in electrical engineering, which includes telecoms, followed by computer technology and semiconductors, and measurement instruments, including medical technology, the U.N. agency said.
Xiaomi finally cracks top 5 as India’s smartphone market hits record high
Nov 15, 2016
- “We will be able to capture the largest market share in India within three to five years,” predicted Xiaomi founder and boss Lei Jun last month. The Beijing-based company had a stellar Indian holiday season, selling 1 million smartphones in 18 days during Diwali.
Qualcomm and Tencent Announce Joint Innovation Center in China
Nov 15, 2016
- Qualcomm Incorporated (NASDAQ: QCOM) through its subsidiary, Qualcomm Wireless Communication Technologies (China) Limited, today announced a strategic relationship with the Interactive Entertainment Group (IEG) of Tencent, to identify and create leading immersive mobile user experiences in gaming and entertainment. The collaboration includes a joint innovation center designed to explore new user gaming and application experience in the future by utilizing the strengths of both parties.
China’s middle class to reach 400 million by 2020
- The size of the middle class in China is expected to reach 400 million by 2020, according to a report by China Economic Weekly. The report says that China has become a middle-income country with about 240 million middle class people, representing about 18 percent of the total population. To be classified as Middle class in China a person should have a yearly income between 60,000 and 150,000 yuan (US$8750 to US$21800), or a family income of 85,000 to 225,000 yuan a year.
Average salary in China to grow 7% in 2017: report
- China’s average salary will increase by 7% in 2017, according to the latest research by an international human resource consultancy. Subtracting an inflation rate 2.3%, the 4.7% real rise in salary will be the 3rd highest in the Asia-Pacific region and 4th in the world. ECA International’s latest investigation suggested that in 2017, the 4.7% actual increase in the Chinese mainland’s average salary is compared to a 2.6% forecasted increase in the Asia-Pacific region and a 1.5% global increase.
China increasingly a preferred venue for patent litigation, even for US patent owners
November 10, 2016
- Aside from any anecdotal evidence and cultural bias theories, it is also hard to ignore the reality playing out inside the Chinese IP courts. Foreign patent holders have been having a great deal of luck in China’s IP courts, at least at the courthouse situated in Beijing. This July, Intellectual Asset Management reported that foreign plaintiffs won 100 percent of lawsuits at Beijing’s IP court, claiming victory in a total of 65 cases. Indeed, although the Chinese government is often seen as protecting domestic interests, a 2016 report on patent litigation in China released by the Santa Clara University School of Law concluded that “our findings tend to suggest that, to the extent Chinese leaders hoped that stimulating the national patent system would result in widespread protectionism, their hopes were misplaced.” The Santa Clara Law researchers found that foreign firms filed 10 percent of the patent litigation suits in China and won 70 percent of those actions.
Who Wins a Trade War? China
Nov 10, 2016
- However, Trump’s policies will ultimately work to China’s advantage. That’s because, in reality, the China that Trump has been bashing — the one that “steals” jobs with unfair practices and cheap labor — no longer exists. The China of today isn’t as interested in assembly lines making blue jeans and iPhones. In fact, with costs rising, China is losing many factory jobs both to other developing nations and to the U.S. This new China has bigger and bolder goals, which Trump appears not to understand. Instead of acting as the workshop of the world, churning out cheap stuff for Wal-Mart Stores Inc., China intends to create its own national champions to compete with, and even supplant, America’s. Chinese leaders want U.S. consumers to buy Chinese smartphones using Chinese operating systems, instead of Chinese consumers buying those made by Apple Inc.
Peru says TPP can be replaced with new trade deal, sans U.S.
Nov 11, 2016
- Peru President Pedro Pablo Kuczynski told Russian media that Pacific-rim countries can forge a new trade deal that includes China to replace the U.S.-led TPP that U.S. President-elect Donald Trump has vowed to scrap. Kuczynski, speaking to Russia Today in an videotaped interview posted on the state-funded broadcaster’s website Friday, said Russia should also be part of any new bid to hammer out a tariff-slashing agreement for the Asia-Pacific region.
Bull market! Chinese stocks up 21% since January panic
November 11, 2016
- China’s benchmark index, the Shanghai Composite, has rallied by more than 21% from its recent low in January when traders panicked and stocks cratered. A 20% rise is needed for stocks to technically be considered in a “bull market.”
China pushes Asia-Pacific trade deals as Trump win dashes TPP hopes
Nov 10, 2016
- China will seek support for a Beijing-led Asia-Pacific free trade area at a regional summit in Peru later this month, Chinese officials said on Thursday, after Donald Trump’s U.S. election win dashed hopes for a U.S.-led free trade pact.
China’s Sky-High Home Prices Sustainable, Harvard Scholars Say
November 10, 2016
- China’s stratospheric housing prices can be maintained because of robust demand, provided the government radically curtails new supply, according to four Harvard University scholars. The economic downside of such price stability: huge hits to urbanization, productivity and employment. Prices are resilient in part because buyers aren’t highly indebted, they invest for the long run and are unlikely to sell homes or have them repossessed even if prices decline, four academics led by Edward Glaeser wrote in an October working paper published by the National Bureau of Economic Research. Moreover, leveraged property developers are cozy with state banks and are thus likely to have loans restructured even if pressured, they said.
The jaw-dropping numbers behind China’s Singles Day
November 11, 2016
- China’s Singles Day has smashed records yet again. The total value of orders reported by e-commerce giant Alibaba during this year’s online shopping bonanza hit $17.8 billion, easily topping the previous record of $14.3 billion set in 2015. That’s more than Black Friday and Cyber Monday combined.
Growth Rises as China’s Private Manufacturers Reinvent Themselves
Nov 08, 2016
- A number of China’s private manufacturers are experiencing growth as they reinvent themselves after years of struggle with rising wages and low foreign demand, Bloomberg reported. In contrast, the country’s state sector firms have a different experience as they have to restructure to increase the productivity in old industries. State firms also have very limited competition while Dakang has to contend with about 800 chair manufacturers in Anji alone, according to Yuan.
China’s Moves to Cool Property Prices May Be Working
November 7, 2016
- The push by China’s policy makers to rein in property bubbles looks to be getting traction, according to early indicators from the nation’s biggest cities. Beijing home sales volume plunged 41 percent year-on-year last month while Shanghai’s slumped 18 percent, China Real Estate Information Corp. data show, after new purchase restrictions and tightened mortgage lending. Transactions fell 50 percent in smaller cities.
Germany calls for free trade accord, welcomes China steel talks offer
Nov 5, 2016
- German Economy Minister Sigmar Gabriel called for a resumption of long-stalled efforts to negotiate a global free trade accord on Saturday, warning that a proliferation of bilateral trade deals could lead to varying standards and rules. Gabriel welcomed an offer made by China during his visit to begin intensive discussions with Germany and the European Union about its steel exports to Europe.
China’s middle class to rise to more than third of population by 2030, research firm says
03 November, 2016
- Mainland China’s middle class will account for more than a third of its population by 2030, taking consumer spending to the level now seen in the European Union, an analytics company said. About 35 per cent of the population will have in excess of US$10,000 of annual disposable income by then, up from about 10 per cent today, according to the report released on Wednesday by The Economist Intelligence Unit. Private consumption, which includes both goods and services, as well as rent, is expected to grow by 5.5 per cent on average each year, faster than the expansion of the country’s gross domestic product, according to the report.
China’s Geely, Volvo beef up strategy with new brand, plant
Nov. 1, 2016
- Volvo Cars and its Chinese owner are revving up their profile as they focus on selling premium cars in world markets. The companies announced a strategy Wednesday that includes a new factory to make vehicles based on a new shared platform, including vehicles for Geely’s new “connected car” brand, Lynk & Co. Volvo also said it will shift some production of its upscale sedan line from Europe to one of its existing factories in northeast China, from where they’ll be exported globally.
Boeing, Airbus trade barbs as China competition heats up
02 Nov 2016
- Aerospace giants Boeing and Airbus took potshots at one another at the Zhuhai air show, as the US and European rivals seek to capture more of China’s booming aircraft market. China is one of the Western manufacturers’ key battlegrounds, with its travellers taking to the skies in ever-growing numbers. Eric Chen, president of Airbus China, dismissed the Seattle firm’s plan as “close to one generation” behind his own firm, saying it was following Airbus’s strategy “with a lot of reluctance”. “I got two impressions,” he said at a briefing at the China Airshow in Zhuhai, the industry’s biggest event in the country. “First one, the decision we made 10 years ago was right. The second impression is that we are well in advance of our competitor.” Darren Hulst, managing director for Northeast Asia marketing at Boeing, earlier told reporters that the Airbus A350 fell short of the 787 widebody plane in range, capacity, carbon emissions, window size and aerodynamics. “The 787 is capable and has technology and features built into it that are not available on the A350, which was obviously introduced later into the market,” he said.
Boeing to Launch New 737 Completion, Delivery Center in China
Oct 30, 2016
- Boeing announced on Friday it will set up a completion facility and delivery center for its on-demand 737 jetliners in Zhoushan City of east China’s Zhejiang Province. The airplanes will be initially assembled in Renton then sent to Zhoushan, where the interiors installation, aircraft painting, and delivery to customers will be carried out. A framework agreement was signed on Friday between the Zhejiang Provincial Government, the Boeing Company, and Commercial Aircraft Corporation of China (COMAC)
Made in China: Once known for cheap knockoffs, Chinese companies are now the world’s innovators
October 30, 2016
- In a few decades, Chinese companies have evolved from imitators to imaginative and effective innovators. As part of my research with my colleague George Yip on this issue, we identified three key phases in China’s development: From “copying” to “fit for purpose” From “followers” to “world standard” From “seeking new resources” to “seeking new knowledge”
China’s economy is rapidly rebalancing toward services
Oct. 28, 2016
- While China’s position as factory to the world gets a lot of attention, the country’s economy is building out its service sector — and it is making rapid progress. Services now account for 50% of China’s GDP, up from 42% 10 years ago, according to World Bank data. This continuing shift may indicate the government’s planned move toward services, innovation, and household consumption as the new economic drivers is going along to plan.
China, Europe to Lead in Creation of Global E-commerce Platform
Oct 27, 2016
- China and Europe may make possible the creation of an electronic world trade platform (eWTP) which is expected to boost international e-commerce, Luigi Gambardella, president of ChinaEU, wrote in an article published in euractiv.com. Gambardella said that the plan may soon materialize as AliExpress, Alibaba’s global marketplace, is urging EU to re-evaluate geoblocking, which is currently being used by EU’s e-commerce sector, where consumers can be “forced” to shop on the national websites, by redirecting them to the sites based on their IP address.
World’s Top 10 Fintech Companies in 2016 Dominated by Chinese Firms
Oct 27, 2016
- Five of the 10 spots in the world’s leading financial technology (fintech) companies were taken by China, making it a global leader in the financial services sector, based on the annual list compiled by U.K.-based advisory firm KPMG and Australian investment company H2 Ventures, China Daily reported. Top in the list of the 100 Leading Fintech Innovators 2016, which was released on Monday, Oct. 24, is Ant Financial, which operates China’s largest online payment platform Alipay, and four other Chinese companies.
Alipay Expanding Its Reach Beyond China
October 26, 2016
- Alipay is following its Chinese customers travelling abroad by increasing its footprint outside the mainland. The Chinese payment giant has recently entered into partnerships with Verifone Systems, Inc. (PAY) and First Data Corporation (FDC) to expand its mobile payment app service outside of its home market.
Fitch: China Hard Landing, Yuan Risks Recede
Oct 25, 2016
- Risks of a ‘hard landing’ for China’s economy and of a further sharp depreciation of the yuan have receded in the near term. Reliance on credit expansion by Chinese policymakers to support the economy contributes to meeting their near-term growth targets but adds to long-term macroeconomic imbalances, says Fitch Ratings in the October 2016 edition of our Risk Radar Asia-Pacific report.
Philippine central bank adds Chinese yuan to reserves
- The Philippine central bank has added the Chinese yuan to its official international reserves, saying that the move reflects the rising importance of the Chinese currency globally as well as increasing trade between the two countries.
China becomes world’s largest acquirer in international M&A
- China is becoming increasingly vigorous in international mergers and acquisitions (M&A) and this year has become the world’s largest acquirer. The first 9 months of 2016 saw Chinese companies complete 521 overseas M&A deals worth 67.4 billion USD, which exceeded last year’s annual transaction amount. In the same time period, China’s outward direct investment in the non-financial sector had hit 134.2 billion USD, an increase of 12.8 billion USD compared to last year’s total.
Wal-Mart Takes Another Step Forward With Chinese E-Commerce Giant JD.com
Oct 24, 2016
- The growing alliance between global retailing titan Wal-Mart and Chinese e-commerce giant JD.com is taking yet another step forward, with word that the former is making another new investment in the latter in the hotly contested online grocery space. In this case the investment itself, in a JD-backed online grocery specialist called New Dada, is a relatively modest $50 million. Instead, the investment is more symbolic because it takes direct aim at the market-leading position of e-commerce titan Alibaba.
89,000 Chinese hold assets worth over 100 million yuan: report
- There are now around 89,000 Chinese individuals worth more than 100 million yuan ($14.77 million), said China Ping An Insurance Group. During the ongoing Ping An Family Wealth Management Summit held in Sanya, the company’s sales department manager Yang Jingdong pointed out that 60 percent of the China’s multi-millionaires have assets overseas. According to the latest figures released by Hurun Wealth Report, the year-on-year growth rate of the Chinese mainland’s individuals with a net worth over 100 million yuan or more reached 14 percent in May 2016.
How China’s Dealmakers Pulled Off a $207 Billion Global Spree
October 23, 2016
- When a Chinese home-appliance company announced a plan in May to become the largest shareholder in one of Germany’s most advanced robot manufacturers, the backlash was immediate. And yet in two months, Midea pulled it off. Thanks to a combination of political courtship, guarantees on jobs and security, and support from influential customers like Daimler AG Chief Executive Officer Dieter Zetsche, Midea overcame knee-jerk opposition to the deal. By July the appliance maker had secured an 86 percent stake, valuing Kuka at 4.6 billion euros ($5 billion). The experience showed how some Chinese firms are learning to soothe misgivings about the country’s record $207 billion overseas buying spree. While Sinophobia isn’t yet a thing of the past and practices among Chinese buyers vary widely, merger-and-acquisition professionals say a new generation of savvy dealmakers is starting to emerge from the world’s second-largest economy.
China’s Geely shows global ambitions, launching new compact SUV in Germany
Oct 20, 2016
- Chinese automaker Geely, the owner of Volvo cars, showed off the first model of its new Lynk & Co brand in Germany on Thursday, a compact SUV aimed at taking on the likes of BMW and Mercedes-Benz, as well as ride-hailing service Uber, across the world. The Lynk, made in China, will go on sale at home in 2017, followed by Europe and the United States in 2018, and marks one of the first attempts by a Chinese carmaker to create a global brand that makes use of European design and technology know-how.
Netflix joins ranks of U.S. tech companies admitting they can’t conquer China
Oct 24, 2016
- Netflix Inc. is the latest U.S. technology company to admit defeat in its ambition to conquer the Chinese market, joining a growing list of companies to be stymied by a challenging regulatory, legal and competitive environment. The streaming giant said this week that it has decided not to attempt a full-service offering in China, preferring to work with local partners.
China’s LeEco prepares to take over the U.S. with phones, TVs and cars
Oct 19, 2016
- Chinese tech giant LeEco is ready to make its North American debut. The company, which has been called the “Netflix of China,” introduced a new lineup of products on Wednesday, including two inexpensive Android smartphones, a VR headset, a 7-foot 4K TV and a new streaming service. LeEco also showed off its electric bike and self-driving electric vehicle concept.
Chinese business leaders laud ‘golden era’ for Canadian relations
Oct. 20, 2016
- Chinese business leaders are confident that China and Canada are embarking on a “golden era” between the countries that will boost trade “exponentially,” says Ma Weihua, president of the China Entrepreneur Club.
China’s Housing Market Isn’t in a Bubble After All
October 17, 2016
- China’s housing market is starting to resemble a Bermuda triangle for economists: time and again the smartest forecasters wade in only to get it wrong. That’s the view of Larry Hu, head of China economics at Macquarie Securities Ltd. in Hong Kong, who describes the latest talk of a housing bubble in the world’s second biggest economy as a recurring myth. Instead, rapid price gains in the biggest cities merely reflect underlying demand and a supply shortage, fundamentals that are very different to the kind of credit-fueled property boom-and-bust cycle seen elsewhere.
China’s Weibo almost head-to-head with Twitter’s market value
14th October 2016
- WEIBO, China’s Twitter counterpart, is experiencing a sharp hike in market value amid the latter’s difficulty in finding a buyer – an unprecedented turn in events considering Twitter’s global reach. According to Bloomberg, the Beijing-based Weibo now holds a US$11 billion market value, and is fast approaching Twitter’s US$12.6 billion. Earlier this year, Twitter’s share price shot up after rumors that huge companies like Google and Disney were interested in acquiring it – but took a 30 percent nosedive this week as potential buyers vanished one by one.
China No Currency Manipulator, Obama Treasury Says for Last Time
October 14, 2016
- The Treasury Department for the final time during President Barack Obama’s tenure declined to label China a currency manipulator, in an implicit rejection of Republican nominee Donald Trump’s hard-line approach to the world’s second-biggest economy. The Obama administration added Switzerland to a currency watch list that already included China, Japan, Germany, South Korea and Taiwan, according to a semiannual report on global foreign-exchange policies from the Treasury. However, it found that no major trading partner met the legal definition of a currency manipulator, and the U.S. said China’s recent efforts to prop up the yuan were preventing a rapid depreciation that would hurt the global economy. China was found to meet only one of three criteria used to determine the watch list, compared with two of three in April. If China still meets only one condition in the next report, it could be removed from the list.
China tops US in numbers of billionaires
13 October 2016
- China’s annual rich list has indicated that, once again, the country has more dollar billionaires than the US, and the gap is widening. Property magnate Wang Jianlin of Dalian Wanda tops the list of 594 billionaires in the country, ahead of 535 billionaires in the US. Alibaba’s Jack Ma was second, with his wealth having risen 41% from last year.
Wave of China property tightening hits home sales during holiday week
Oct 11, 2016
- A wave of restrictions imposed on housing markets in major Chinese cities last week have unnerved some buyers and developers, cutting the area of new homes sold in places such as Beijing and Shenzhen by more than half. More than 20 cities have imposed measures, including higher mortgage downpayments, to cool hot property markets that have raised official alarm in Beijing and fresh concerns about China’s ballooning debt.
Apple CEO Tim Cook makes an apperance in Shenzen, company to open 2nd China R&D center
12 Oct 2016
- Apple CEO Tim Cook made an unexpected appearance in Shenzhen Tuesday, using the trip to announce the company’s second research and development center in China. The announcement of the facility in Shenzhen came after an announcement about the technology giant’s move to set up a $45 million R&D center in the capital city Beijing.
Two Reasons Chinese Millennials Have More Cash To Burn
Oct 9, 2016
- First, Chinese millennials aren’t indebted with student loans Second, many Chinese millennials don’t have housing expenses. About 90 % of Chinese households own their homes, and 80 % of these homes are owned without mortgages or any other leans. By 2020, Chinese millennials are expected to reach 300 million strong, compared to 80 million in the U.S. They are the second generation of Chinese consumers.
WWE’s Slow Boat to China
Oct 6 2016
- Like so many young fans, Bin Wang first learned about the WWE online. He was in junior high school when he began watching videos featuring his favorite wrestler, the Rock — or “Strong Boulder Forest” (“Jùshí Qiáng Sēn”), as he’s known in Mandarin. “At that time, I thought it was a pretty good sporting competition,” Wang said from the executive lounge in the Shanghai Marriott, “and if I could become a wrestler, that would be an honorable thing.” Just 48 hours away from realizing his dream, Wang, clean-cut and wearing black athletic shorts and a T-shirt, seemed even-keeled and reserved. The WWE, which opened a Shanghai office in 2007, is now in more than 180 countries. When I spoke with him recently, George Barrios, WWE chief strategy and financial officer, said doing business in China is “a little more complicated in a lot of ways.” In speaking of the country’s scale, he added, “Complexity doesn’t come from entertaining the fans. It’s the operational complexity.”
U.S. Web Firms Lose Allure Among Chinese
Oct. 5, 2016
- Airbnb struggles to find CEO for its China business; Uber’s fruitless search. On the China front in the global technology industry’s talent wars, foreign internet companies are losing. “The odds that a multinational internet company succeeds in China are close to zero,” says Kai-Fu Lee, chairman of Sinovation Ventures, who led Google’s China business from 2005 to 2009. “Why would a talented person with a successful track record take the risk of accepting a job that has zero chance of winning? It’s not worth it.”
Uber Slayer: How China’s Didi Beat the Ride-Hailing Superpower
October 6, 2016
- “We felt like the People’s Liberation Army, with basic rifles, and we were bombed by airplanes and missiles.” At the Beijing offices of the ride-hailing startup Didi, many employees refer to Cheng Wei, the founder and chief executive officer, as laoda, or “big boss.” Others use his English nickname, Will. This summer the world came to know him by another designation: the Uber Slayer, the one entrepreneur who managed to beat back the relentless advance of the richest, most rapacious startup since Bill Gates ran Microsoft. In August, after a multibillion-dollar, year-and-a-half-long battle, Uber agreed to sell its business in China and depart the country.
China Goes All Out to Become ‘Global Aviation Power’
- Chinese leadership views investing in domestic aviation, both civilian and military, as one of the country’s top priorities in hopes that this will help Beijing improve its manufacturing industry, boost innovation and improve national defense, Xinhua reported. AVIC is the country’s leading aerospace and defense company behind some of China’s biggest projects, including the AVIC TA-600, the Comac C919 and the Xian Y-20.
The rise of China’s innovation
October 2, 2016
- CHINA has long been seen as the “world’s factory,” churning out vast mountains of low-quality goods, but it is also considered a nation incapable of producing innovative products and ideas. According to a global survey by Cornell University, INSEAD, and the World Intellectual Property Organization, China is now of the world’s 25 most innovative economies. China moved up four places from the 2015 survey to 25th overall, making it the first middle-income economy to break into the top 25, an area traditionally dominated by highly developed economies.
China’s Yuan Joins IMF Reserves in First Revision Since 1999
October 1, 2016
- The yuan took on the mantle of a global reserve currency Saturday, a milestone that is seen breathing life into China’s bond markets by prompting estimated inflows of as much as $1 trillion over the next five years. The currency’s entry into the International Monetary Fund’s Special Drawing Rights — alongside the dollar, euro, pound and the yen — comes amid China’s efforts to boost its international usage and ambitions of providing an alternative to the dollar. Describing the inclusion as a “historic milestone,” IMF Managing Director Christine Lagarde said in a statement Friday that it reflects the progress that the Asian country has made in reforming its financial systems and liberalizing markets.
China may be stockpiling more oil than anyone realized
September 29 2016
- One of the mysteries of the oil market is the question of how much crude oil China has squirreled away in commercial and strategic stockpiles. Now a satellite-imaging firm called Orbital Insight claims to have an answer. It says Chinese inventories in May stood at 600 million barrels, substantially more than commonly thought and nearly as much as the U.S. Strategic Petroleum Reserve. Chinese storage capacity, which includes working inventory, is four times widely used estimates, Orbital Insight says, adding that the firm has not only counted storage tanks but has also used imaging techniques to figure out how much oil is in the tanks.
China’s rich enrich European banks
September 26, 2016
- The appetite of China’s wealthy to diversify from a weakening yuan is helping European finance companies boost capital to prepare for the next financial crisis. Global fund managers are urging caution. Since Aug 1, seven issuers opened order books for their Basel III bond sales in Asian hours, raising $11.9 billion selling instruments that count as capital under Basel III rules. HSBC Holdings Plc separately issued $2 billion of total loss-absorbing capacity notes in Taiwan province. In the first seven months, only three such deals opened in Asia.
Education is China’s secret weapon for tech dominance
September 24, 2016
- 37 percent of edtech funding deals, representing $1.07 billion, were made in China-based edtech companies in 2015, up from 18 percentin 2014. These are companies teaching software development and other technology disciplines. Assuming the trend from 2013 to 2015 remains steady, in my estimation based on the percentages, China will take the top spot in 2016 — ahead of the US — and will be the country to receive the biggest investment in education startups around the world. As China is rapidly switching from a manufacturing economy to a services-based one, the government is aggressively investing in performing the switch and recently announced a state-owned $30 billion VC fund to invest in startups. The city of Hangzhou, for example, plans to host 30,000 startups by 2020.Therefore qualified talent will become mandatory to power the machine.
Foreign capital approved for investment in Chinese nuclear projects
- China may soon encourage the investment of private and overseas capital in nuclear power projects in order to diversify the country’s nuclear investments, according to draft rules published by China’s cabinet on Sept. 19. China’s Legislative Affairs Office of the State Council has drafted a new set of rules for nuclear plant development that would allow not only State-owned enterprises but also private capital and overseas investors to buy shares of nuclear power projects. The draft states that China will protect the interests of all kinds of investors who invest in nuclear projects in accordance with the law.
Canada and China announce free trade talks
Sep. 22, 2016
- Canadian Prime Minister Justin Trudeau announced Thursday he’s launched exploratory talks toward a free trade deal with China — Canada’s second biggest trading partner. Trudeau made the remarks in a news conference with Chinese Premier Li Keqiang in Ottawa. Trudeau also said talks were in progress about reaching an extradition treaty.
Big Data Lens on China’s Economy (Mostly) Affirms Official Stats
September 20, 2016
- A growing universe of big data offers an increasingly complete alternative view on China’s economy, and it’s not massively different than the official statistics. That’s according to a new report by Bloomberg Intelligence economists Tom Orlik and Justin Jimenez, who compared National Bureau of Statistics numbers with those generated from the vast amounts of data and information collected by businesses and governments. The new gauges affirm that manufacturing is weak, real estate is better, auto sales and online consumption are robust, but malls and tourism are suffering and employment is slipping as old industries shed workers, Orlik and Jimenez wrote. For industrial, property, autos and employment, they said the picture is similar to official data, while for some aspects of consumption, big data are more negative.
Chinese, African companies signed $17B business deals
- Companies from China and Africa on Thursday in Beijing signed more than 40 business deals totaling about 17 billion dollars. More than 400 participants from government agencies, financial institutions, business associations and enterprises attended the Seminar on China-Africa Business Cooperation on Thursday.
In North Korea, China’s Xiaomi gets the people’s pulses racing
Sep 8, 2016
- China’s smartphone and accessory maker Xiaomi Inc [XTC.UL] is winning hearts and minds in North Korea with its wearable fitness band, Chinese state media said on Thursday, a symbol of the isolated state’s increasingly sophisticated consumer classes.
Canada joins Alibaba’s new online hub in bid to access Chinese market
September 3, 2016
- Canadian merchants are hoping a new online storefront via e-commerce giant Alibaba will help them sell more to the rapidly expanding Chinese marketplace. Prime Minister Justin Trudeau and Alibaba founder Jack Ma announced the launch Saturday of a Canadian “pavilion” on the Tmall platform at the Chinese firm’s offices in Hangzhou.
How Women Won a Leading Role in China’s Venture Capital Industry
September 19, 2016
- Chen and her peers have become part of the mainstream in China in a way that’s proven elusive in the U.S. American venture firms have faced accusations of sexism and discrimination for years, including in an unsuccessful lawsuit filed by a female partner against storied Kleiner Perkins Caufield & Byers. Despite the criticism, the firms have made little progress in promoting women. Among the top U.S. venture firms, women make up about 10 percent of the investing partners and only half of the firms have any women of that rank. China is already more balanced: About 17 percent of investing partners are female and 80 percent have at least one woman.
Australian port sold for $7.3 billion to consortium; China fund among backers
September 19, 2016
- A consortium of global and domestic funds, backed by investors including China Investment Corp, agreed to buy Australia’s busiest port for a higher-than-expected A$9.7 billion ($7.3 billion), a sign that tough equity markets are helping fuel appetite for infrastructure. Australian leaders will also hope the deal shows they still welcome Chinese investment in infrastructure. The federal government last month blocked the sale of the country’s biggest power network, Ausgrid, to state-owned State Grid Corp of China and Hong Kong-listed Cheung Kong Infrastructure Holdings on security concerns.
Shenzhen sets the benchmark in industry’s transition
September 19, 2016
- The icon of China’s dramatic rise as the workshop-of-the-world after Deng Xiaoping launched his reforms in 1979, Shenzhen, once again has emerged as the symbol of the Middle Kingdom’s next cycle of industrialisation — coalescing a robust eco-system of hi-end growth. In the middle of a jungle of high rises in the city’s business district, DJI, a global leader in drones, captures some of the spirit and confidence in Shenzhen’s drive to turn around China from a low-to-medium end manufacturer to a heavyweight capable of churning out cutting-edge products.
Chinese bidders circling German airports
September 17, 2016
- Chinese aviation investors are circling Frankfurt’s Hahn Airport as an auction nears completion in the latest of a wave of airport sales by German state governments seeking to stem operating losses. German media reports suggest that at least three Chinese investors are preparing bids for Hahn, a loss-making third-tier airport, the Rhineland-Palatinate state government agreed to sell for an undisclosed sum to China’s Shanghai Yiqian Trading in July.
China Likely to Surpass US as Top Acquirer of Foreign Companies in 2016
Sep 14, 2016
- China is likely to beat the United States as top acquirer of foreign companies this year, if Chinese enterprises continue with its buying spree and outbound merger and acquisitions (M&A) overseas, according to a Forbes article. Chinese firms have been investing money not only on trans-continental highways and railways, new cities, industrial and economic zone but also in mergers and acquisitions with major American and European companies at a record pace, according to the article.
Kai-Fu Lee’s Larger, Deeper Funds For China’s Tech Startups Showcase Bigger Dreams For Breakthroughs
Sep 13, 2016
- Kai-Fu Lee’s freshly raised $674 million in capital for his renamed Chinese venture investor group Sinovation Ventures signifies a steady progression of China’s tech economy over the past decade even as China venture fund raising has hit a three-year low. The new funds’ focus, on deep technologies such as artificial intelligence and robotics as well as entertainment and enterprise software, signify progression from the roots of China’s tech innovation in 2000 to 2005 – far from the early days of China’s Internet with Internet copycats of Amazon, eBay
China drives global gold reserves increase
- China accounted for almost half of the total increase in global gold reserves over the past 14 months, as the country’s central bank continued to diversify its holdings and support the yuan’s internationalisation. The People’s Bank of China has added 175.1 tonnes of gold to its reserves since June 2015, accounting for 48.7 percent of the total increase in global gold reserves during that period, according to Caixin (link in Chinese). China’s gold reserves stood at 1,833.5 tonnes (58.95 million fine troy ounces) at the end of August, up by 10.6 percent from June last year when the Chinese central bank broke years of silence by revealing an almost 60 percent jump in its gold reserves since 2009.
Boeing Says China To Become First Trillion-dollar Market
September 13, 2016
- Boeing projects a demand for 6,810 new airliners in China over the next 20 years, making it the first trillion-dollar aviation market by the airframer’s reckoning. Boeing released its annual China Current Market Outlook (CMO) on Tuesday in Beijing, estimating the total value of the new airplanes at $1.025 trillion. “As China transitions to a more consumer-based economy, aviation will play a key role in its economic development,” said Boeing Commercial Airplanes vice president of marketing Randy Tinseth. “Because travel and transportation are key services, we expect to see passenger traffic grow 6.4 percent annually in China over the next 20 years.” Boeing predicts China will need 5,110 new single-aisle airplanes through 2035, accounting for 75 percent of the total new deliveries. Low-cost carriers and full-service airlines continue to add airplanes and expand new point-to-point services to accommodate both leisure and business travel demand from a rising middle class in China and throughout Asia.
How China Could Take Over the World’s Tech and Automotive Markets
Sep 12, 2016
- Nvidia and Baidu recently made an announcement with regard to self-driving cars that deserves closer attention. China currently is behind the U.S. in automotive technology, but it has passed the U.S. and Japan in automobile production. (I actually thought Japan was still ahead.)
Japanese apparel going online to tap shoppers in Chinese
September 12, 2016
- Japanese clothing companies are increasingly making their way into cyberspace to appeal to Chinese-speaking consumers in China, Taiwan and Hong Kong. Currently, Japanese apparel makers have a limited physical presence in those markets. Before opening more bricks-and-mortar shops, they first hope to build a reputation through low-cost virtual outlets.
Ghastly Idiocy About The Rise Of China – It’s The Chinese Workers Who Have Benefited
Sep 10, 2016
- That we might disagree about the attractions of communism or socialism, that’s fine. It would indeed be a boring world if we all had the same goals and aspirations. But to actually be entirely ignorant of who has benefited from the death of socialism, that attempt to build communism, is rather a different matter. Most especially if you’re trying to discuss the relative desirability of socialism as against capitalism. The idiocy is the contention that it is the average Chinese worker who has lost out from the rise of capitalism in that country. No, really – the largest reduction in absolute poverty in the history of our entire species is regarded as having made them worse off. And I really am not joking:
China Hits Record High M&A Investments In Western Firms
Sep 10, 2016
- According to a recent report by the Mergermarket Group, China had already surpassed its yearly record for outbound M&A investment by the end of August. With 173 deals worth $128.7 billion in the books, China is so far the top acquirer of foreign companies in 2016 — a position which, if held until the end of year, could unseat the USA for the first time since 2006. “China has seen continuous annual growth in both outbound deal size and deal volume in the recent ten years,” said Yiqing Wang, Mergermarket’s China editor. “However, 2015 and 2016 have witnessed [an] even more aggressive growth spree.”
Cashing In On Low Prices, China’s Oil Imports Surge
Sep 9, 2016
- China, the world’s second largest consumer of oil and the world’s fifth largest oil producer, said yesterday that its crude oil imports for August increased to its highest mark in four months, to 32.85 million metric tons, around 7.77 million barrels per day (bpd). China has also been taking advantage of the more than two-year long roil in oil markets and corresponding low prices to fill its strategic petroleum reserves, however, reports indicate that reserves may now be reaching full capacity.
China’s evolving trade picture, in charts
7 Sep 2016
- China’s economic transformation has truly been one of the most dramatic in modern history. Per capita incomes have risen six-fold in just over a decade, the country has accumulated the world’s largest pile of foreign exchange reserves and its economy has left its Japanese counterpart in the dust to become the second-largest in the world, second only to the U.S. China’s dominance in trade has been a key driver of this metamorphosis and economists at the International Monetary Fund (IMF) have put out a report outlining the progress as well as some of the challenges confronting China as the economy continues to evolve.
The Man Who Incubated Drone Giant DJI Wants China To Fly High On Tech
06 September 2016
- Prof. Li Zexiang (pictured) counts Chinese drone giant DJI as the most successful project incubated by him. But the Hong Kong University of Science and Technology professor has a much bigger dream: To incubate many more DJIs and make China a world leading nation for technology. Prof. Li, who specializes in computer science and engineering, is an early investor in DJI. He also takes the role of chairman at the world’s largest drone maker, a company started by his student Wang Tao ten years ago and currently valued at roughly US$10 billion.
Fast Food Giants Unload Their China Units Amid Increased Competition
Sep 05, 2016
- Yum Brands Inc has announced plans to separate its China unit, which will get an investment totaling $460 million from Beijing-based private equity firm Primavera Capital Group and online payment services provider Ant Financial Services Group after its spinoff from Yum, according to a report from the Global Times news portal on Monday. The transaction is expected to be completed by the end of October, with Yum China to start trading independently from the New York Stock Exchange on Nov. 1, Yum Brands posted on its website on Friday.
China’s Export Machine Is Grabbing More of the Global Market
September 6, 2016
- Brushing off rising wages, a shrinking workforce and intensifying competition from lower cost nations from Vietnam to Mexico, China’s global export share climbed to 14.6 percent last year from 12.9 percent a year earlier. That’s the highest proportion of world exports ever in International Monetary Fund data going back to 1980. Yet even as its export share climbs globally, manufacturing’s slice of China’s economy is waning as services and consumption emerge as the new growth drivers. For the global economy, a slide in China’s exports this year isn’t proving any respite as an even sharper slump in its imports erodes a pillar of demand.
Behind China’s E-Commerce Success Story
Sep. 05, 2016
- A news report released in mid-August by the New York based eMarketer said that Chinese retail spending is going to grow 13.3 percent in 2016 to USD 4.886 trillion and that the country will edge past the United States’ USD 4.823 trillion to become the world’s largest retail market. This milestone event for China will come much earlier than commonly expected. In 2015, the professional market study firm PwC predicted that the Chinese retail market will only surpass that of US in 2018. The eMarketer report expects the gap between overall retail spending in China and the US to continue widening in the coming years. By 2020, total retail sales in China are expected to reach USD 7.086 trillion, compared to USD 5.475 trillion in the US. The embedded assumption behind the retail sales growth projection is that Chinese overall retail sales will grow at a compounded rate of 9.7 percent between 2016 and 2020, while that of the US will grow at 3.2 percent. The retail sales growth assumption is in line with the projections of most economists.
China manufacturing index highest in nearly 2 years
August 31, 2016
- An official measure of manufacturing activity in China rebounded to its strongest level in nearly two years last month on improving production and demand, the government said Thursday, boding well for the world’s second-largest economy. The official purchasing managers’ index (PMI) came in at 50.4 for August, its highest since October 2014, figures from the National Bureau of Statistics (NBS) showed.
Tmall Announces 9.9 Global Wine & Spirits Festival
August 31, 2016
- Alibaba Group will host its inaugural 9.9 Global Wine & Spirits Festival next week, bringing 100,000 international wines, cognacs, whiskeys and other drinks from 50 countries to Chinese consumers through business-to-consumer marketplace Tmall.com. On Sept. 9, brands such as Robert Mondavi Winery and Gallo Family Vineyards of the U.S., France’s Lafite and Japan’s Suntory Yamazaki will join winemakers from Italy, Spain, Australia and New Zealand in the first of what’s expected to be annual shopping event on Tmall. Hundreds of brands also will make their China debut during the festival, Alibaba said.
Chinese R&D goes global
August 31, 2016
- Chinese companies have been setting up laboratories and research centres across the globe at record pace over the past few years. In 2016 alone they announced nine new overseas R&D centres for a total capital expenditure estimated at $224m, according to data from fDi Markets, an FT greenfield investment monitor. With four months to go to the end of the year, the figures already represent a record annual high for China. Only US and German companies have been more active than their Chinese peers in the year so far. It comes at a time when Beijing is gradually liberalising its regulations on outward investment, even pushing local companies to look for opportunities abroad to increase their competitiveness and global footprint away from the slowing domestic economy. As a result, Chinese capital is flooding global markets.
Global growth: Still made in China
31 August 2016
- Despite all the hand-wringing over the much vaunted China slowdown, the Chinese economy remains the single largest contributor to world gross domestic product growth. For a global economy limping along at stall speed – and most likely unable to withstand a significant shock without toppling into renewed recession – that contribution is all the more important. A few numbers bear this out. If Chinese GDP growth reaches 6.7 percent in 2016 – in line with the government’s official target and only slightly above the International Monetary Fund’s latest prediction (6.6 percent) – China would account for 1.2 percentage points of world GDP growth. With the IMF currently expecting only 3.1 percent global growth this year, China would contribute nearly 39 percent of the total.
Refinery wars: China, India win; South Korea, Japan, Singapore lose
Aug 30, 2016
- There is little doubt that China’s surging exports of refined fuels have cut profit margins for Asia’s refiners, but the pain is unlikely to be shared equally across all the region’s exporters of oil products. Given the scarcity of detailed official data on oil product imports and exports among many Asian countries, it’s nigh impossible to build a completely accurate picture of the likely winners and losers. However, detailed data is provided by China on the export destinations of its product exports, and Australia, the region’s biggest importer of refined fuels, also gives a country-by-country breakdown of its imports.
Can foreign tech companies win in China?
Aug 28, 2016
- People have often referred to Google, Facebook and Twitter as cases where foreign tech companies are blocked in China. In reality, while Facebook and Twitter were indeed blocked, Google chose to withdraw because they didn’t want to comply with Chinese censorship regulations. It’s important to note that most foreign tech companies were not blocked, and companies like eBay, Amazon, Viadeo and, of course, Apple and Samsung all entered and competed in China.
China’s richest man, Wanda Group CEO Wang Jianlin, has declared war on Disneyland
August 29, 2016
- Wang’s ultimate goal, he said during the recent interview, is to “change the world where rules are set by foreigners.” In other words, Chinese should make the final calls. He also criticized Chinese people who go to Disneyland, using an idiom that means “to be crazy about foreign things and obsequious to foreigners,” adding that “the once-glorified Disneyland is part of the past.”
From “made in China” to “created in China”, Kazakh people bear witness
- “Lenovo, Huawei, Xiaomi…… Many young people in Kazakhstan use more and more products made in China with high technology,” Gulmira Nurumgaliyeva told Xinhua on Saturday. Gulmira, a fashionable Kazakh girl, was attracted by Chinese calligraphy in the Chinese Intangible Cultural Heritage Exhibition held in Almaty, the largest city of Kazakhstan. “China is an old country with many creations in history,” Gulmira said, pointing at the items at the exhibition, which is part of a four-day “Feel China” project in Kazakhstan.
China launches own aircraft engine-maker to rival the West
29 August 2016
- China has launched its first aircraft-engine manufacturer in an attempt to wean itself off Western suppliers. The state-owned Aero-Engine Group of China was created by combining a group of existing aircraft-engine companies, according to local media reports. It has about 50bn yuan ($7.5bn) in registered capital and will develop both military and commercial engines. China already makes its own planes, but has struggled for decades to develop engines that meet global requirements.
China’s Wanda to invest $9.5 billion in tourism, sports park in Jinan city
August 27, 2016
- China’s richest man, Wang Jianlin, has signed an agreement to invest 63 billion yuan ($9.45 billion) to build a tourism and sports complex in Jinan city, cinema-to-theme park developer Dalian Wanda Group said in a statement on Friday. The project, which will have malls, sports facilities, hotels and a theme park, will raise a further challenge to fierce rival Walt Disney Co, which opened a $5.5 billion resort in Shanghai in June.
China 2nd in wealthiest country rankings
- China has been ranked as the second wealthiest country in the world, according to a report published by New World Wealth, a global wealth intelligence and market research company based in Johannesburg, South Africa. The ranking was reportedly based on total individual wealth of the country including property, cash, bank deposit, stocks and business interests, huanqiu.com (link in Chinese) reported. With US$17.4tn in total individual wealth, China was the fastest growing country in top 10 over the past 15 years.
China firms set to expand presence in global NAND flash market, says DRAMeXchange
26 August 2016
- China-based companies are set to expand their presence in the global NAND flash market dramatically thanks to the region’s push to establish a homegrown NAND flash industry and the huge domestic market, according to DRAMeXchange. A special forum was held during the 2016 Flash Memory Summit to discuss the China market indicating China is gaining greater visibility in the NAND flash industry, said DRAMeXchange. China’s domestic NAND flash consumption is expanding rapidly on account of growing demand for mobile devices, mass deployment of servers and widespread establishment of data centers, DRAMeXchange indicated. China is set to account for 30% of global NAND flash consumption in 2017. The share will continue to grow and exceed 40% in 2020, DRAMeXchange said.
Six Chinese youths make MIT’s innovators of the year list
- The official website of MIT Technology Review has published this year’s list of 35 world innovators under the age of 35, the 16th of its kind, with six Chinese on the list. The list aims to highlight young innovators who are poised to be the leaders of their own fields, whether they are entrepreneurs or academic researchers. Under five categories of inventors, entrepreneurs, visionaries, humanitarians and pioneers, they are doing research and development or innovation in the fields of medical, energy, materials, IT and others.
Tencent acquires full Chinese NBA rights
- Chinese media giant Tencent has acquired the full Chinese media rights for the National Basketball Association (NBA) on a four-year deal at a cost of 200m yuan (US$30m). The deal, which follows a digital partnership signed between the two parties in January 2015, will see Tencent broadcast a whopping 1,230 NBA games each season, Yutang Sports reports.
This Star Tech Banker Is Reshaping China’s Internet
August 23, 2016
- To say Didi Chuxing and Meituan-Dianping are household names in China would be an understatement. The former is a ride-hailing app that brokers 14 million-plus trips a day, while the latter accounts for more than half of online group buying transactions in the Middle Kingdom and boasts a towering 77 billion yuan valuation. The creation of these e-commerce giants was the brainchild of star tech investment banker Fan Bao.
China has taken over Scotland’s North Sea oil production
Aug. 23, 2016
- China has taken over Scotland’s oil production and now controls two of the North Sea’s biggest oilfields. According to The Times’ analysis of China National Offshore Oil Corporation’s (CNOOC) accounts, a CNOOC-owned company Nexen extracts nearly 200,000 barrels of oil per day across those two fields. This makes it the largest producer in the area. According to The Times, CNOOC, a state-owned oil company and is controlled by China’s ruling communist party, has been able to grow its marketshare in Scotland rapidly because former Chancellor George Osborne gave tax breaks for oil companies in the North Sea.
China tipped to overtake US as world’s largest retail market this year
18 August, 2016
- The Chinese mainland, home to the world’s biggest e-commerce market, is predicted to overtake the United States in annual retail sales by the end of this year, according to data released on Thursday by New York-based research firm eMarketer. Total retail spending on the mainland is forecast to grow 13.3 per cent to reach US$4.886 trillion this year, up from US$4.313 trillion last year, to edge past the estimated US$4.823 trillion expenditure in the US in the same period, eMarketer said. The milestone for China, which counts a potential 1.4 billion consumers, would come two years earlier than expected.
German ministry to clear takeover of Kuka by China’s Midea
Aug 17, 2016
- Aug 17 Germany’s economy ministry said it would allow the takeover of industrial robot maker Kuka by Chinese household appliances company Midea Group which has raised concerns in Berlin about losing control of important technology. The German government had sought a deal to limit the size of Midea’s stake to 49 percent to try to curb the Chinese company’s influence on what it views as a national champion in a key industry. But subsequent decisions by major German shareholders to sell their stakes scuppered any such plans.
China breaks into top 25 of world innovators, U.N. study says
Aug 15, 2016
- China has broken into the world’s top 25 innovative economies for the first time, thanks to investments in education and research and development that have translated into new patents and licenses, a study said on Monday. The world’s second-largest economy is catching up to traditional innovation front-runners, who were led again this year by Switzerland, Sweden, Britain and the United States, said the annual report by the U.N.’s World Intellectual Property Organization (WIPO), INSEAD Business School and Cornell University. More than 100 countries are ranked according to 82 indicators of innovation, which is critical to driving growth in a competitive globalised world, said “The Global Innovation Index 2016”. China’s move up from 29th last year marks the first time a middle-income country has joined the top 25.
China is disrupting global fintech
Aug 14, 2016
- In China, the abacus was mentioned by the Eastern Han Dynasty (25-220 A.D.). During the Song Dynasty (960-1279), the Chinese were the first to use paper money. In late 2013, many Chinese raved about Yú’é Bǎo, 余额宝 (“leftover treasure”), a money market fund offering roughly double the interest rates banks did. Launched by Alipay, an Alibaba subsidiary, the fund attracted 150 million clients and $93 billion within 18 months, a phenomenal feat.
China’s richest worry less about making more, and more about meeting maker
15 August, 2016
- The nation’s wealthiest people are shifting their attention from investment to end-of-life care, with health, retirement and funeral arrangements looming as bigger issues, according to a survey. Health care was the biggest concern for high-net-worth individuals polled for this year’s survey by Taikang Insurance and Hurun Report, displacing last year’s top issue – investments – which fell to third.
Across China: China’s new entrepreneurs go home to get rich
- After almost ten years in Beijing, Wei Wei, 35, has returned to his hometown of Lanzhou, capital of northwest China’s Gansu Province. “I’ve gained skills and experiences in Beijing, and I can help bring Beijing’s business practices to the west,” said the self-confessed IT geek. “The IT market in my hometown is full of potential and very attractive to me.” Wei and his friends opened a business in 2014, but was soon in trouble as IT skills do not equate to business acumen.
World Bank unit to issue SDR bond in China’s interbank bond market -c.bank
12 Aug 2016
- A unit of the World Bank will issue bonds denominated in special drawing rights (SDR) in China’s interbank bond market, China’s central bank said on Friday. The International Bank for Reconstruction and Development will issue 2 billion SDR ($2.79 billion) of bonds, the People’s Bank of China said on its website. The first batch of bonds worth 500 million SDR will be issued in August by the Industrial and Commercial Bank of China (ICBC), China’s biggest lender of assets, ICBC said on its WeChat account on Friday.
Didi’s Cheng Wei: Chinese patriot who tamed Uber
Aug 11, 2016
- Cheng Wei, 34, was once assistant to the head of a foot massage firm. Last week, his company Didi Chuxing bagged Uber’s China business in a deal valuing his ride-hailing start-up at $35 billion – a second success in as many years in a grueling battle with a rival. Investors and Didi staff say Cheng has a cool head, a keen strategic eye and a lack of ego – all pivotal in taking on and beating Uber in a two-year, multi-billion-dollar scrap for China’s competitive ride-hailing market.
Alibaba helps foreign tech firms enter China via the cloud
9 Aug 2016
- Chinese e-commerce giant Alibaba is partnering with international technology firms such as SAP to help them enter the Chinese market, a region that foreign companies often struggle to compete in. Alibaba Cloud, the cloud computing arm of the New York-listed company, will allow foreign firms to bring their software products into China using Alibaba’s infrastructure. The 11 technology firms are from the United States, Europe, Japan and Thailand and include the likes of SAP and HERE, the mapping system owned by a conglomerate of German carmakers including Daimler.
Chinese Tech Firms Forced to Choose Market: Home or Everywhere Else
AUG. 9, 2016
- For teenagers who like to sing along with Ariana Grande and Flo Rida, Musical.ly is a must-have. The app that lets users lip-sync and dance in their own music videos boasts 100 million users and partners with pop stars like Ms. Grande and Meghan Trainor. It’s not easy to tell Musical.ly is Chinese — and that’s deliberate. To find success in America, its parent company has ignored China, its home market and a country with 700 million internet users. The reason is simple, says Alex Zhu, co-founder of Shanghai-based Musical.ly: China’s internet is fundamentally different from the one used in much of the rest of the world.
Imax sets deal with Wanda for biggest China expansion yet
August 2 2016
- Big-screen cinema company Imax Corp. is taking a major step to expand its footprint in China by deepening its ties with the country’s largest cinema operator, Wanda Cinema Line. Toronto-based Imax said Tuesday that it had signed an agreement with a subsidiary of conglomerate Dalian Wanda Group to add 150 theaters to its circuit during the next six years. Currently, Wanda operates about 160 Imax theaters in the country. “It’s the biggest deal in the company’s 50-year history,” said Imax Chief Executive Rich Gelfond in an interview. “The growth is just accelerating.”
The Humbling of American Tech Giants in China
August 2, 2016
- Not so long ago, American tech giants viewed China as theirs for the taking: 1.4 billion people, a growing middle class, an affinity for American pop culture from Titanic and Friends to Michael Jackson. And, apparently, a tendency to see U.S. goods and services as attractive or superior. That triumphal script was again rewritten as Uber conceded defeat in its no-holds-barred dust-up with Didi Chuxing. After a costly battle in which both sides shelled out billions subsidizing rides, Chief Executive Travis Kalanick decided to call off the war, agreeing to a deal in which the local champion acquires Uber’s China operations in return for a seat on Didi’s board and a slice of the Chinese company. The move came only a year after the famously brash Uber impresario declared China, the world’s largest ride-hailing market, his most important target.
Didi buys Uber China in a bid for profit, will keep Uber brand
Aug 1, 2016
- China’s Didi Chuxing and Uber have now both confirmed that Didi has agreed to buy Uber’s separate business in China — Uber China — as a path to trying to get the two unprofitable on-demand transportation businesses into the black. The deal had been heavily speculated earlier today. The two companies will retain distinct brands, app and business operations, and it sounds like the backends will be merged. Didi said it will “integrate the managerial and technological experience and expertise of the two teams.”
A Chinese Rival Beats Uber at Its Own Game
June 15, 2016
- Jean Liu explains how her ride-hailing company Didi Chuxing is besting Uber in China and why data is its biggest asset.
Walmart has partnered with a massive Chinese messaging app
Jul. 29, 2016
- Walmart, which operates over 400 stores in China, has partnered with WeChat, a mobile-based Chinese social network, to provide a mobile payment solution to its in-store customers, according to Internet Retailer. Walmart customers are now able to use WeChat’s mobile payment solution WeChat Pay to make in-store purchases. In-store customers can simply present their mobile barcode to the cashier for scanning at checkout to complete a purchase.
Bad News For U.S. Automakers In China: The Chinese Are Closing The Quality Gap
Jul 25, 2016
- Chinese consumers are dividing American car brands into two categories: Winners and losers. Premium American cars are thriving in China where driving a prestigious brand dramatically lifts your social status. Sales are humming, based on data from the China Association of Automotive Manufacturers and company reports:But “value for money” American cars are coming under pressure. What’s behind the diverging performances? Chinese automakers are closing the perceived quality gap GPS -0.81% with mass-market foreign nameplates. This is a crucial new development. During my first 25 years in China everyone at the office understood that the guy who bought a Chinese brand car did so only because he could not afford a foreign one. “Oh, Engineer Li just bought a Chery QQ. Money must be tight.”
China’s economic reforms win praise
Jul 23, 2016
- China’s economic reforms have received a vote of confidence from heads of key international economic organisations such as the World Trade Organisation (WTO), International Monetary Fund (IMF) and World Bank, even as they voiced concerns over sluggish global growth. In a joint statement with China, they said fundamentals of the Chinese economy remain positive in the long term, thanks to its efforts in developing new growth drivers.
More Than 100 Chinese Firms on Global Fortune 500, but Not Alibaba
Jul 21, 2016
- More than 100 Chinese companies made the Fortune Global 500 list this year, with the U.S. the only country with more names on the list. China power giant State Grid jumped from seventh place last year to the No. 2 spot, after Wal-Mart Stores Inc., followed by oil giants China National Petroleum Corp. and Sinopec Group, in third and fourth place, respectively. Dubbed “the world’s most profitable lender,” Industrial & Commercial Bank of China–China’s biggest bank by assets–was No. 15 on the list, up from 18th last year even after a year of nearly flat profit.
Startup Investing Helps Alibaba Expand Footprint Outside China
July 20, 2016
- Alibaba Group Holding Ltd. is becoming a more active startup investor. The Chinese internet giant is willing to spend money in hopes of finding the next Snapchat or Lyft — so long as the target uses Alibaba’s tools and services. Alibaba made at least two dozen investments in private companies last year, according to research firm CB Insights. The number of deals has nearly doubled since 2013, and the e-commerce company has continued spreading money around this year.
Opera renegotiates its $1.2B sale down to $600M for its browsers, privacy apps, Chinese JV
Jul 18, 2016
- Some more developments over at Opera, the browser company based out of Norway. The company announced that an offer to acquire the company for $1.2 billion has now been terminated, and in the meantime, the deal has been renegotiated: the same group will now pay $600 million to acquire only certain parts of Opera’s business. Opera will sell the Qihoo 360-led consortium its mobile and desktop browser operations, its performance and privacy apps, its tech licensing not including Opera TV; and Opera’s 29 percent stake in Chinese JV nHorizon.
Baidu vows to further help Chinese developers expand overseas
- Chinese Internet giant Baidu Inc opened “DU Ad Platform (DAP) Forum” on Thursday, aiming to support domestic mobile Internet developers to make profits overseas. Named as “Making the Breakthrough”, this is the second time that a forum of its kind is being held after debuting in Beijing, following the announcement of the company’s “DU+ Plan”, a strategy to increase ad monetization for mobile developers. The “DU+ Plan” promises developers 100 percent of the revenues from mobile advertising campaigns that they carry out on DAP.
China June FDI jumps 9.7 percent year-on-year to 98.2 billion yuan
Jul 12, 2016
- China’s foreign direct investment (FDI) jumped 9.7 percent in June from a year earlier, official data showed on Tuesday, recovering from a 1 percent drop in May and hitting a 10-month high. The total of FDI received by China last month was 98.2 billion yuan (£11.1 billion), the Commerce Ministry said in a statement on its website.
China sets up new SOE to develop aircraft engine
- China set up a new state-owned enterprise (SOE) specializing in developing aircraft engines, the country’s top SOE regulator announced Wednesday. The State-Owned Assets Supervision and Administration Commission of the State Council (SASAC) will provide capital for the new company, according to a statement from SASAC.
China to commercialize 5G technology by 2020
- China’s major mobile network operators including China Mobile, China Unicom and China Telecom are to commercialize 5G technology by 2020, with basic research and testing to be complete by 2018, according to a report by the Economic Information Daily. Leading Chinese telecom equipment providers like Huawei, and ZTE are accelerating their research in 5G technology, and cooperative efforts between Chinese companies and their European counterparts are also underway.
China aircraft maker lands $2B order for homegrown ARJ21 jet
Jul. 12, 2016
- China’s state-owned aircraft maker has signed a deal to sell up to 60 of its new regional jets to a leasing company in a deal worth up to $2.3 billion. In a joint statement late Monday, Commercial Aircraft Corp. of China Ltd., or COMAC, said the agreement signed with China Aircraft Leasing Group, a Hong Kong-listed company, includes a confirmed order for 30 ARJ21-700 jets and an option to buy 30 more.
Chinese GDP Driven by ’at Your Service’ Not Manufacturing: Chart
July 10, 2016
- As China reports gross domestic product this week, the structure of the world’s second-largest economy has evolved, with services, categorized as tertiary industries, now contributing a majority of GDP. In the January-March quarter, which includes the annual new year festival when most factories close and hundreds of millions of people travel, services accounted for a record high 57 percent of economic output, compared with 38 percent from manufacturing-led secondary industries and the rest from agriculture.
Chinese Shipbuilder to Build 5 Luxury Cruise Ships with Italian Partner
Jul 09, 2016
- Government-owned China State Shipbuilding Corporation (CSSC) and Italian shipbuilder Fincantieri Cantieri Navali Italiana SpA are set to formalize their joint venture in Hong Kong. The venture is valued at 25 billion yuan or $3.74 billiion. The two shipbuilding giants will build five mega cruise liners that have a capacity of 5,000 passengers each. This will be China’s first luxury liner.
Chinese Brands Dominate the Consumer Market
Jul 10, 2016
- More locally made fast moving consumer products (FMCP) are dominating the Chinese consumer market, according to a joint report submitted by Bain and Company and Kantar Worldpanel. Sixteen out of 26 categories of FMCP are now local Chinese brands. The report stated that more Chinese consumers prefer locally made shampoo, skincare products, toothpaste, diapers and soap. Imported brands dominated categories like fabric softeners, infant milk formula, instant noodles and beer.
Chinese consumers set the trend online
July 11, 2016
- Australian retailers need to look to the tech-savvy Chinese consumer for future industry trends, according to former David Jones chief executive Paul Zahra. Mr Zahra, now a consultant to PricewaterhouseCoopers, was commenting on a report by the accounting firm that he said showed the increasing importance of Chinese consumers in the global retail world in both total demand and as leading indicators of retail trends.
China Foreign Reserves Unexpectedly Climb to $3.21 Trillion
July 7, 2016
- China’s foreign-exchange reserves unexpectedly increased as haven assets such as the Japanese yen appreciated amid the U.K.’s decision to leave the EU. The world’s largest currency hoard rose by $13 billion to $3.21 trillion in June, the People’s Bank of China said in a statement Thursday. That compares with the $3.17 trillion median forecast of economists surveyed by Bloomberg. The yen, which China holds as part of its reserves, advanced by 7.3 percent against the dollar in June.
Chinese companies have surpassed S. Korean in five indices
- Trailing in areas of profitability and growth, South Korean companies only lead in three areas With Chinese companies already becoming considerably more competitive than South Korean companies in the areas of profitability and growth, it‘s too late to worry about China catching up with South Korea, a new report suggests. After analyzing the competitiveness of publicly listed non-financial companies in South Korea and China between 2007 and 2014, the report concluded that Chinese companies were ahead of their South Korean counterparts in five indices as of 2014: profitability (operating margin), growth (sales growth rate), amount of assets, number of patent applications and value of overseas corporate mergers and acquisitions.
Jiang Becomes First Chinese Citizen with Ownership Stake in an NBA Team
Jul 04, 2016
- Lizhang “John” Jiang, a prominent Chinese sports marketing executive based in Shanghai, has purchased a 5% interest in the Minnesota Timberwolves of the U.S. National Basketball Association and Minnesota Lynx of the U.S. Women’s National Basketball Association. Mr. Jiang becomes the first Chinese citizen to own an interest in an NBA team.
What To Look Forward To In China’s Startup Scene, And Why You Should Care
Jul 01, 2016
- China presents a fascinating place for startup founders or founder-wannabes. Despite its status as the world’s second largest economy, it is still considered a developing country with plenty of space for technological and social disruption. Earlier this June, the RISE Conference brought together 5000 attendees, 300 investors and 500 startups from around the world to discuss their at one of the China’s — and Asia’s — business hubs, Hong Kong.
South Korea’s leading industries feeling the heat of competition from China
- Intensifying competition with China is a major factor in the recent export slump for South Korea’s leading industries, an analysis shows. With South Korea in close competition with China in 10 out of 12 major industry categories, the results highlight an urgent need to develop new high value-added products and major industries.
Local brands lead race for China’s savvy consumers
June 29, 2016
- Local brands are leading the race for China’s increasingly savvy consumers. From shampoo to snacks, upstart Chinese companies are eating into the market share of their foreign rivals, a new report shows. They heed digital trends, adapt to regional tastes and respond to customers’ increasingly sophisticated demands. Western firms that don’t follow suit risk being left behind. Last year Chinese brands gained ground on foreign products for the fourth year in a row, according to data from Bain & Company and Kantar Worldpanel. In 26 types of fast-moving consumer goods ranging from groceries to toiletries, domestic darlings’ sales grew by 7.8 percent, while overseas brands saw sales slide 1.4 percent.
Why China could dominate the ‘Internet of vehicles’
- China’s edge starts with its market, the world’s biggest, with 24.6 million cars sold in 2015. That’s a major opportunity, which Chinese companies are seizing. Baidu, the search-engine giant, has persuaded a collection of automakers representing about a third of domestic sales to use CarLife, its answer to CarPlay, in models made for China. Baidu’s grip on these companies — including Hyundai, BMW, Mercedes, Ford, Audi and Volkswagen — will be hard to dislodge.
Going Global: More Chinese Companies Take the World Stage
Jun 27, 2016
- Rapidly growing companies in China and other emerging markets are seizing market share and outperforming competitors in industries from technology to aviation, according to a report from Boston Consulting Group. The report, released Monday, identifies 100 companies that the consultancy says could form the next generation of corporate powerhouses based on their growth potential and their business strategies. These companies — which the management-consulting firm terms the global challengers — include 28 from China, including Alibaba Group Holding Ltd., state-owned conglomerate Citic Group, entertainment and property giant Dalian Wanda Group Co., Xiaomi Corp. and China Eastern Airlines Corp.
China’s Unemployment Dilemma Is Exaggerated: Reuters
Jun 24, 2016
- China’s unemployment problem may be overblown as some economists believe that other industries can still handle laidoff workers from the government’s drive against overcapacity. A report from Reuters pointed out the possible exaggeration of the country’s dilemma on unemployment, citing the situation of some former steel firm workers who were able to find new jobs quickly.
World’s Smartest Companies: The Chinese Are Rising
Jun 21, 2016
- China’s companies are getting smarter, beating their Japanese and Korean counterparts and catching up with their American counterparts. According to recent MIT Technology Review’s annual listing of the 50 smartest companies, that is. Two Chinese companies made it to the top of the 2016 list—Baidu BIDU -0.11% in the second position and Huawei in the 10th position–versus three in 2015, and none in 2014.
Wal-Mart rips up China online strategy, starts again with stake in Alibaba rival
Jun 21, 2016
- Wal-Mart Stores Inc (WMT.N) has sold its Chinese online grocery store in return for a stake in the country’s no. 2 e-commerce firm, ripping up its previous strategy in efforts to cure ailing sales in one of the world’s toughest retail markets. The deal will see the U.S. grocery giant swap its Yihaodian platform for a 5 percent stake in JD.com Inc (JD.O), worth about $1.5 billion by the firm’s latest market value. The move also gives Wal-Mart a ringside seat in JD.com’s bitter rivalry with Chinese e-commerce leader Alibaba Group Holding Ltd (BABA.N).
Chinese Stock Volatility Declines to Lowest Since January 2015
June 20, 2016
- Volatility in Chinese stocks fell to the lowest since January 2015 as the benchmark gauge declined for the first time in three days amid a lack of trading catalysts. A gauge of 90-day price swings on the Shanghai Composite Index dropped to 24, less than half the level of its peak last year. The equity gauge slid 0.4 percent at the close. Jiangxi Copper Co. led a decline for material producers as the metal retreated from a two-week high after data showed exports from China, the world’s biggest user, rose to the highest since 2012.
Chinese investors looking to dethrone Tesla as electric car kingpin
June 18, 2016
- Tesla is still a synonym for luxury electronic vehicles (EV), but this may change in the not-too-distant future as fresh competition emerges—not just from the likes of BMW and Mercedes-Benz—but from startups that are poaching engineering and management talent from Tesla and using it to challenge the company on its home turf. Atieva, one of those startups, recently unveiled plans to release a luxury EV sedan dubbed Edna within two years. The company, whose Chief Technology Officer is Peter Rawlinson, who led the engineering of Tesla’s Model S, is funded by a variety of investors, among them Beijing Auto and LeEco—a software company owned by entrepreneur Jia Yueting.
Insurance firm China Life puts $600M into Didi Chuxing months after backing Uber
Jun 12, 2016
- Can’t beat ’em, join ’em. That appears to be the thinking of China Life, Asia Pacific’s highest valued insurance firm, after it backed Chinese taxi app Didi Chuxing barely months after investing in fierce rival Uber. Didi announced today that it has scored $600 million in fresh financing from the insurance company, half of which will go towards its latest funding round which a spokesperson confirmed has now exceeded $3.5 billion but is still to close. That’s likely to value Didi around the $25 billion mark and will include the surprise $1 billion investment from Apple that was announced one month ago.