Chinese Economics Thread

[broadsword]

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CSR to renew Buenos Aires EMU fleet
11 January 2013

ARGENTINA: Complete renewal of the EMU fleet operating suburban services on the 1 676 mm gauge Sarmiento and Mitre routes in Buenos Aires was announced by President Cristina Fernández on January 10.

Under a contract valued at US$506m, Chinese manufacturer CSR is to supply 55 trainsets totalling 409 vehicles, which will incorporate traction equipment from Bombardier. According to Minister of the Interior & Transport Florencio Randazzo, 225 cars are destined for the Sarmiento line and 184 for the Mitre network.

At present both routes are being operated by the UGOMS consortium of Ferrovías and Metrovías, which took over in May 2012 after Trenes de Buenos Aires was stripped of its concession following the fatal buffer stop collision at Once on February 22 2012 which killed 51 people. The consortium currently has 211 EMU cars to operate the 58 km electrified section of the Mitre network and 206 cars for the 36 km Sarmiento route; both lines are electrified at 830 V DC third rail.

Although the contract price of US$1·26m per car is reported to be around half of that offered by Japanese trading group Marubeni in December, the other major factor behind the government’s decision is understood to be the speed of delivery. Whilst Fernández had hoped to see up to 100 cars in traffic by August, CSR is now expected to deliver the first vehicles in February 2014, with the remainder following by November 2015. To achieve this rapid delivery, the cars will be fully assembled in China.

The deal is to be supported financially by the Chinese government, with a 10-year soft loan covering 85% of the total contract value. Similar terms were offered when CSR Sifang and CSR Qishuyan were selected to supply passenger coaches and diesel locomotives to re-equip the San Martín commuter network under a US$121·6m deal announced in January 2008.

President Fernández has also announced plans to build 62 pedestrian subways and nine overbridges to improve safety on the Buenos Aires suburban rail network, which has large numbers of level crossings. Tunnelling began last year on a project to put the urban section of the Sarmiento route underground; the 33 km tunnel between Moreno and Caballito with 12 sub-surface stations will eliminate many crossings on the line into Once.

 

[bladerunner]

Annoying vehicle fallacy. The title implies they've made big strides, while the article itself only refers to increasing investment....

Yeh, Chinese interests are also trying to buy into going NZ concerns

China's Yashili plans $210M milk operation in NZ

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What short meomories our political leaders have, especially after swearing black and blue after the Sanlu and NZ. Fonterra melamine scandal that Chinese companies would be prevented from being a player in the manufacturing side of NZ's dairying industry.

 

[broadsword]

Yeh, Chinese interests are also trying to buy into going NZ concerns

This thread is also about China's economic development. Big strides or not or regression, so long as they are economic/business, all fall under this category.

 

[bladerunner]

This thread is also about China's economic development. Big strides or not or regression, so long as they are economic/business, all fall under this category.

Thats very true.

However I think the Dairy Industry would be considered to be of vital importance to NZ. The decision to let other countries into the market and trade on the Nz name should not be made so lightly.
Not so long ago there was an article about the uproar in the Italian garment industry concerning Chinese manufacturers establishing themselves in the country, making a cheaper product, and piggy backing on the Made In Italy label.

As a concerned NZder I would not like to see something similar happen here. Therefore certain industries should be off limits to foreign concerns.

 

[kroko]

Once again, china´s economic data seems unreliable. Was china´s december export data inflated?

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[Hendrik_2000]

Once again, china´s economic data seems unreliable. Was china´s december export data inflated?

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Kroko kroko The west and other detractors has been saying that the whole Chinese development is fake since the founding of PRC. But I dared you to step in any Chinese city and see it for yourself how China has changed over the years. Back then the city is dilapidated now it is ultra modern. It was not too long ago that there were no car in Chinese street except for government official. Now it is gridlock. No Subway to speak of, now 43 Chinese city have subway or in construction. No highway now the 2nd largest highway system in the world. the list is on and on. Or ask any chinese how their life has been changed for the better over the years. Those western critic create the bogus doubt to hide their own incompetence in managing their economy. It hurt their own sense of superiority when a system that despise turn out to be better at managing the economy than their own. so the never ending critic ,doubt, innuendo, prediction of doom that never materialized

China will grow and getting stronger by the day whether the west like it or not. Their opinion is irrelevant. What mattered is the life of Chinese people is getting better for them and generation to come

So instead of sticking your head in the sand and in denial . Smell the coffee and wake up!

 

[kroko]

Kroko kroko The west and other detractors has been saying that the whole Chinese development is fake since the founding of PRC. But I dared you to step in any Chinese city and see it for yourself how China has changed over the years. Back then the city is dilapidated now it is ultra modern. It was not too long ago that there were no car in Chinese street except for government official. Now it is gridlock. No Subway to speak of, now 43 Chinese city have subway or in construction. No highway now the 2nd largest highway system in the world. the list is on and on. Or ask any chinese how their life has been changed for the better over the years. Those western critic create the bogus doubt to hide their own incompetence in managing their economy. It hurt their own sense of superiority when a system that despise turn out to be better at managing the economy than their own. so the never ending critic ,doubt, innuendo, prediction of doom that never materialized

China will grow and getting stronger by the day whether the west like it or not. Their opinion is irrelevant. What mattered is the life of Chinese people is getting better for them and generation to come

So instead of sticking your head in the sand and in denial . Smell the coffee and wake up!

How about refuting the article with something tangible instead of just refuting it out of hand?

 

[Franklin]

How about refuting the article with something tangible instead of just refuting it out of hand?

The problem that i have with article's like these is that its draws conclusions by oversimplifying the way they read or collect the data.

On the GDP side they are constantly referring to the statement made by Li Keqiang made in 2007 and leaked out in 2010 by Wikileaks that Chinese economic data is unreliable and that the electricity consumption is a much more reliable indicator and they simply draw a straight line between GDP growth and electricity output. Because electricity output is down or growing very slowly so they conclude based on that fact that the Chinese economy must be faltering. And the pile up of coal is another indicator for them. But such method ignores a lot of key factors like the growing services sector in the Chinese economy that in recent years have been out growing manufacturing by double digits year after year. And those kinds of industries are far less energy intensive than manufacturing. And not to mention Chinese manufacturers have become more energy efficient over the years. Another factor is that China is moving up the value chain even as the quantity of products being produced goes down the value of the goods overall goes up which is another energy saving factor. A lot of the low end manufacturing has already left China because of the increase in costs and often these are being replaced with either services or higher end production. And over the past years China has seen a massive growth in reneweble sources of energy like wind, hydro and solar energy that in a lot of cases are even off the grid. And there is also the growth in nuclear energy.

On the trade side they ignore the appreciation in the value of the Chinese currency over the years that has made imports cheaper for China and at the same time increase the value of their exports. Also as of 2011 China has become the largest trading partner for 124 nations out of the 200 or so nations in the world and that list is still growing. So by focussing so heavily on the data with China's traditional trading partners a lot of China's trade may have gone under the radar.

Having said all of that i do believe that the data coming out of China is some what inflated and that the book cooking mentioned does happen in China and the slowdown is beyond doubt. But not to the extend that its hiding a collapsing economy which is so often suggested by some "experts" in the media. I also worry about China's overinvestment in the infrastructure and its consequences. So there is cause for concern, but i don't think that China's economy is anywhere near a crisis or collapse for now.

 

[nugroho]

China bought Enstrom




2013-01-11 — China’s Chongqing Helicopter Investment Company (CQHIC) has acquired US company Enstrom: a manufacturer of light helicopters for commercial and military applications.

The acquisition, announced on 7 January, is one of the most high profile in a series of transactions in which Chinese companies have purchased US companies involved in the aerospace and defence sector.

Statements said that CQHIC’s acquisition of Enstrom was concluded on 27 December 2012 when the two companies agreed an equity settlement deal, the value of which was not revealed. CQHIC and Enstrom had earlier signed an equity purchase agreement, under which the Chinese company, based in Chongqing in Southwest China, submitted a bid to acquire a 100% stake in Enstrom.

The two companies held an “acquisition closing ceremony” on 4 January, and an Enstrom spokeswoman later confirmed to IHS Jane’s that the deal had been approved by US authorities. “CFIUS [the Committee on Foreign Investment in the United States] approval was obtained prior to the sale being finalised,” she said.

CQHIC’s chairman, Huang Yong, said in the statement that the acquisition of Enstrom will improve the research, development, manufacturing, and marketing of CQHIC.

 

[Schumacher]

How about refuting the article with something tangible instead of just refuting it out of hand?

I don't see anything tangible from the article. They say the numbers don't match, where are the numbers ?
Few months back western media talked about the electricity numbers again as China's economy accelerated, they've gone silent now as usual. I bet it's because the numbers match up now.
Unless they give the raw data they used to come up with this article, I say this is another usual wishful thinking by the western media to help their readers sleep better. No different from the hundreds of thousands of western articles over the decades trying to wish away China.