Chinese Economics Thread

[Jura The idiot]

now I read
Economic Watch: Record lunar new year spending echoes shifting economy
Xinhua| 2018-02-22 17:54:50

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Long queues of cars from all over China crawling along the main drags of south China's Hainan island were worsened by heavy fog that disrupted ferries, stranding over 100,000 passengers and more than 10,000 cars.

The plight of drivers and passengers in Hainan is the flip side of the booming tourism market there, as affluent Chinese seek fresh holiday experiences.

Some 386 million domestic trips were made from Feb. 15 to Feb. 21, up 12.1 percent from last year's holiday, while about 6.5 million overseas trips are expected to have been made to destinations ranging from Southeast Asia to Antarctica.

Double-digit growth in tourism revenue, means about 475 billion yuan (about 75 billion U.S. dollars) was made this holiday season, up 12.6 percent from last year.

China earned 5.4 trillion yuan from tourism in 2017, an increase of 15.1 percent. The country plans to draw 7 trillion yuan in tourism revenue by 2020.

The sector has played a major part in overall consumption during the holiday, which posted a record high of over 900 billion yuan. Shops and restaurants reported sales of 926 billion yuan during the past week, up 10.2 percent.

Ahead of the holiday, Wang Bingnan, vice minister of commerce, predicted that the key term for this year's Spring Festival holiday would be "consumption upgrade," with higher-quality products and services gaining popularity, and he was right.

While meals at family gatherings previously included all kinds of meat, many people are now more interested in organic food, green vegetables, and other healthy products.

Major green food producers in Jiangxi, Qinghai and Shandong provinces saw double-digit sales growth, while fresh food sales doubled or even tripled on major e-commerce platforms.

Consumption in culture and entertainment was also strong, with box office takings a record 5.6 billion yuan during the holiday.

Domestic consumption has become a force driving growth. Consumption contributed 58.8 percent to growth in 2017, nearly four percentage points higher than five years ago. Retail sales of consumer goods are expected to expand by about 10 percent to exceed 40 trillion yuan this year, according to the China Council for the Promotion of International Trade (C

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T).

Consumption growth will be powered by new products and services as more affluent people are willing to pay more for higher quality and unique experiences, the report showed.

 

[Jura The idiot]

now I read
2017: Chinese telecom companies lead WDM Metro equipment market
2018-02-22 19:20 GMT+8

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Chinese hi-tech telecommunications companies, such as Huawei Technologies Co., Ltd. (Huawei) and ZTE Corporation (ZTE), led the billion-US-dollar fiber-optic market of wavelength-division multiplexing (WDM) Metro equipment in 2017, a market research firm said Wednesday.

The two Chinese telecom leaders, plus Ciena Corporation, a US-based global supplier of telecom networking equipment and services, led the WDM Metro equipment, whose revenue surpassed seven billion dollars in 2017, said Dell'Oro Group, a market research firm on telecommunications, networks and IT industries.

"The WDM Metro systems market jumped in 2017," said Jimmy Yu, vice president of Dell'Oro Group.

"We all knew that demand for WDM systems in metro applications would increase, but it was a huge surprise to see an 18-percent revenue increase in 2017," Yu added.

Optical Transport revenue increased by 19 percent year-on-year in the fourth quarter of 2017, driven largely from increased WDM Metro sales, Dell'Oro Group reported, adding that WDM Metro revenue grew by 30 percent year-on-year in the same period.

It said the majority of WDM Metro revenue growth in 2017 occurred in two regions – Asia Pacific, and EMEA, or Europe, Middle East, and Africa.

The top three vendors were Cisco, ECI Telecom, and ZTE, with each seeing their WDM Metro revenue rising by over 40 percent.

ZTE is a Chinese multinational telecom equipment and systems company headquartered in Shenzhen, southern China. It is one of the top five smartphone manufacturers domestically.

Huawei, founded in 1987, is also a Chinese multinational networking and telecom equipment and services company headquartered in Shenzhen. It is the largest telecom equipment manufacturer in the world.

 

[Hendrik_2000]

Yes here is the video of the traffic jam China is getting richer and it attract many Russian to move and live on the Chinese side of the border Of course where intermingling and living side by side love will blossom .Ok guy the word is out Chinese guy make a good catch They don't drink ,work hard, treat their wife , girl friend like princess. Those of you who like blond your chance is up now

Hainan traffic Jam

China Russia love story

Chinese guy treat thier girl friend like princess

 

[Equation]

Yes here is the video of the traffic jam China is getting richer and it attract many Russian to move and live on the Chinese side of the border Of course where intermingling and living side by side love will blossom .Ok guy the word is out Chinese guy make a good catch They don't drink ,work hard, treat their wife , girl friend like princess. Those of you who like blond your chance is up now

I'm there dude!

 

[supercat]

Geely builds $9bn stake in Mercedes owner Daimler
Latest expansion of ambitious Chinese carmaker behind Volvo and Lotus

Geely has acquired close to 10 per cent of Mercedes-Benz owner Daimler for about $9bn, becoming its largest shareholder in the latest sign of the

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of the Chinese group.

Geely, which already owns Volvo Cars and Lotus, has built a 9.69 per cent stake in Daimler, the German carmaker said in a filing late on Friday. The stake is worth roughly $9bn.

Li Shufu, the chairman of Zhejiang Geely Holding Group, will travel to Germany this week following the disclosure to begin talks with Daimler, said one person familiar with the details. He is seeking to build the company into a Chinese version of the Volkswagen group with brands in different segments of the market.

The move marks a further push into Europe for the Chinese carmaker, a market Geely hopes to break into in its own right with its all-electric Lynk & Co brand next year.

Geely, which is racing to build electric cars in order to meet tough Chinese emissions rules that come into force next year, is keen to strike a deal with Daimler over sharing battery technology, said two people familiar with the company’s thinking.

Daimler is considered among the furthest ahead in the automotive industry in developing pure electric technology, with ambitious plans to release 10 different fully electric vehicles by 2022 and to invest more than €10bn into the technology.

Daimler has a joint venture with BYD in China to build electric cars.

Geely’s expansion comes only weeks after a $3.9bn move to become the biggest shareholder in

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.

Daimler said: “We welcome that the entrepreneur Li Shufu will become a long-term oriented shareholder.”

Geely, which declined to comment, approached Daimler in October to issue fresh equity in order to enter as a shareholder, according to two people familiar with the discussions, but was rebuffed.

International motor manufacturers are seeking to strike deals in China, the world’s largest car market, but centred on electric cars in order to get an increased foothold in a segment set to grow rapidly in the coming years.

China has ambitious targets for electric vehicles in order to tackle air quality issues in many of its major cities.

BMW on Friday said it was in advanced talks with Great Wall to build an all-electric Mini model in the country, while Ford is planning to launch electric vehicles in the market under a new brand in partnership with local carmaker Zotye.

Meanwhile, Geely has built a portfolio of international brands as it seeks to create a company that will mimic the sprawling Volkswagen empire.

The Chinese group bought Volvo Cars from Ford in 2010, and has since transformed the fortunes of the Swedish carmaker.

Late last year, Geely acquired a stake in the Volvo Trucks group, a separate entity, becoming its largest investor in a deal that has not yet closed.

The group also took a 49 per cent stake in troubled Malaysian carmaker Proton in 2017, as well as a controlling interest in the British sports car marque Lotus.

Geely owns black taxi maker the London Electric Vehicle Company, and acquired a

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in November.

Bank of America advised Geely on the stake acquisition, according to people close to the situation. These people said the deal was structured via a funded equity collar. Goldman Sachs is working with Daimler.

 

[Jura The idiot]

I now asked two Mods to consider if it's appropriate to talk internal affairs of the Communistic Party of China in this forum (this type of stuff has already appeared in
https://www.sinodefenceforum.com/breaking-world-news-iii-no-discussion.t7090/page-248
most recently)

 

[Hendrik_2000]

Malaysia has intitutional dicrimination against the Chinese but they still allow chinese language and culutre to flourish .Compare to Indonesia they are more enlighten well actually self serving. Since now they try to draw chinese investment, tourist and retiree

 

[Jura The idiot]

now I read
China's AI sector sees big investment in 2017: report
2018-02-25 11:05 GMT+8

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China's artificial intelligence (AI) industry received about 180 billion yuan (28 billion US dollars) of investment and financing last year, according to new research.

Intelligent driving, big data and data service were among the main areas of investment, said a report released by China Academy of Information and Communications Technology.

China gained 28 new AI enterprises in 2017, compared with 128 in 2016, the report said, adding that the fluctuation will not affect a long-term trend of growth.

China's AI enterprises were mainly based in Beijing, Shanghai and Guangdong last year. Beijing had the biggest number, with more than 260 AI enterprises.

The report predicted that China's AI industry would continue to grow in 2018 with breakthroughs to be made in areas such as computer vision and voice technologies.

China unveiled an AI development plan last year, vowing to bring the value of core AI industries to more than 150 billion yuan by 2020, 400 billion yuan by 2025 and one trillion yuan by 2030.

It was part of a broader plan as China strives to encourage technological innovation and to boost its manufacturing capacity up the value chain.

 

[Jura The idiot]

now I read
Economic Watch: China steady in opening up finance industry
Xinhua| 2018-02-26 23:39:06

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Following eased controls on foreign-owned shares in financial institutions last year, China has forged ahead with opening up its finance industry with measures to expand the scope of business and market access for foreign banks.

The China Banking Regulatory Commission (CBRC) published policies over the weekend for overseas lenders to invest in domestic banks, establish new branches, and follow the same standards as domestic players.

The move reflects China's commitment to opening up, said Ding Jianping of Shanghai University of Finance and Economics.

"It means foreign-funded banks will gradually enjoy 'national treatment,' and both domestic and foreign banks will compete on a level ground," Ding said.

Since its accession to the World Trade Organization in 2001, China has gradually relaxed restrictions in more areas, including underwriting treasury bonds, financial advisory services, and most custodian business.

HSBC Qianhai Securities, the first brokerage majority-owned by a foreign bank, opened for business in December, with licenses to conduct research and brokerage services, underwrite and sponsor stock and debt issuance, and advise on mergers and acquisitions.

The joint venture has benefited from steady, sustained efforts from the government to push forward economic restructuring, deepen financial reforms, and build multi-level, transparent and open capital markets, said Anthony Leung, vice president of HSBC China.

The CBRC also cut red tape for foreign banks, scrapping approval procedures for four items including overseas wealth management products and portfolio investment funds. Banks only need to report their services to authorities rather than obtaining approval in advance.

The measures will not only help banks increase their presence in China but are a boon to many other foreign businesses, analysts said.

"Foreign bank clients engaged in trading and investment in China are expected to receive better financial services as control loosens, which will further promote economic ties between China and the rest of the world," said Ding.

With fewer restrictions, foreign banks have started to play a bigger role in China's financial markets.

In the financial hub of Shanghai, the total assets of foreign banks reached 1.56 trillion yuan (nearly 250 billion U.S. dollars) by the end of last year, an increase of 13 percent year on year, the quickest pace in nearly five years. They accounted for around 10 percent of total banking assets in the city.

More favorable policies are in the pipeline.

Vice Finance Minister Zhu Guangyao said in November the country will remove restrictions on investment in Chinese banks, financial asset management companies and life insurers in three to five years, as well as in joint ventures in securities, funds or futures.

The CBRC said it will continue to support foreign banks to enter the Chinese market, broadening the scope of their business and building a fair and transparent policy environment.

Those measures will give foreign capital greater say in business operations and motivate them to channel more resources, said Fu Yang, an analyst at AVIC Securities.

Christine Lam, Citigroup's chief executive for China, expects the country's clear roadmap and timetable in opening up will help foreign-funded financial institutions make preparations to integrate into the market, including possible cooperation with domestic firms and licensing.

Foreign players will see wider market access and more opportunities to increase their presence as China continues to liberalize the capital account and relieve tax burdens for businesses, Lam said.

Analysts expect the continued opening to inject new vitality into the country's financial sector and speed up Chinese banks' global push, even though there will be more competition.

 

[Hendrik_2000]

3 new NAND & DRAM semiconductor FAB will start production this year and compete with the like of Samsung and Hynix. It will slowly eat into their market the S Korean is worry
China’s semiconductor firms catching up, but technology gap with foreign rivals still remains
By Chen Qingqing Source:Global Times Published: 2018/2/28 22:28:39

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Technology gap with foreign rivals still remains

A worker checks the chip production line at a factory in Nantong, East China's Jiangsu Province on Monday. Photo: IC

Concerns over China's rising semiconductor industry have been growing among foreign competitors, especially South Korea, but the gap in technology is set to remain for the time being, industry representatives said on Wednesday.

Some major Chinese chipmakers are about to start mass production in 2018, which is likely to pose a threat to South Korean companies in the global semiconductor sector, the Chinese edition of Seoul-based newspaper Aju Business Daily reported on Tuesday.

Mass production will begin at three semiconductor factories in China, and the total monthly output is expected to reach 23 percent of the output of Samsung, according to the report. Supply from new Chinese factories is also likely to stem further price increases.

The booming market for semiconductor memory products is mainly led by NAND Flash and DRAM chips, which are widely used in smartphones.

"The concerns arose from the recent market speculation that Apple might cooperate with Chinese chipmaker Yangtze Memory Technologies Co [YMTC] in semiconductor supply," Xu Xiaohai, a veteran industry insider, told the Global Times on Wednesday.

Apple Inc was in talks with YMTC to buy NAND Flash chips, some media outlets reported during Spring Festival.

"If this move turns into a real deal, it will definitely reshape the semiconductor sector, as Chinese manufacturers may choose domestic chipmakers over foreign ones if their technologies are recognized by the US tech giant," he said.

Chinese smartphone manufacturers had a share of over 60 percent of the domestic market in 2017, market researcher International Data Corp said in an annual report released on February 6, 2018. Huawei, OPPO and Vivo were ranked as the top three companies in terms of shipment volume in China last year, the report showed.

While some industry representatives forecast that China's fledgling semiconductor industry will reach a milestone this year, others hold a more cautious view.

"While several factories are set to kick off mass production this year, it's unclear how well they can perform in terms of yield and quality," Liu Kun, vice general manager of the IC Industry Research Center at CCID Consulting, told the Global Times Wednesday.

Besides YMTC, which will begin mass production this year, two other chipmakers are expected to show whether their technologies can disrupt the dominance of foreign companies such as Samsung and SK Hynix, the analyst noted.

He referred to one based in Hefei, East China's Anhui Province - a joint venture between Chinese flash memory manufacturer GigaDevice and the Hefei government - and another one based in Quanzhou, East China's Fujian Province, set up by United Microelectronics Corp (UMC), a major chipmaker based in the island of Taiwan.

Chinese authorities have been urging accelerated development in semiconductor manufacturing in the past few years. In 2014, the

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(MIIT) set targets to narrow down the gap with foreign players in the semiconductor sector by 2020, as about 90 percent of the semiconductors used in China are imported from overseas, costing hundreds of billions of dollars every year.

"Some local governments have shown great enthusiasm for supporting the semiconductor industry, and there has been a slew of policy support for related investment," Liu said.

Still, companies such as Samsung, Intel and SK Hynix were ranked as the top semiconductor vendors worldwide in 2017, market consultancy IC Insights said in a report released in November 2017.

Gap still there

Although some targeted products such as NAND Flash and DRAM made by YMTC and other new fabs in China may compete with Samsung and SK Hynix, the technology gap still exists, Xu noted. "Catching up in production will need strong supply industries such as equipment, in which there is also a technology gap between China and South Korea," he said.

In addition, some cities in the Chinese mainland have been introducing talent from countries such as South Korea and from the island of Taiwan to tackle the technology hurdles.

"As far as I know, companies from Taiwan hold a practical attitude toward further cooperation in the semiconductor sector, as they are attracted by supportive policies as well as the vast market opportunities," Liu said.

Taiwan led all regions and countries in wafer capacity last year, with a 21.3 percent market share, IC Insight said in February 2017. Some local companies such as Taiwan Semiconductor Manufacturing Co and UMC have also set up wafer fabrication plants in the mainland in recent years in order to expand their presence to the market.