Have You Heard...
Friday, January 29, 2010
Defense minister stresses work of border, coastal defense
Source: (Xinhua)BEIJING: Chinese Defense Minister Liang Guanglie Friday said the work of border and coastal defense must be enhanced for national interests.
Defending China's sovereignty, territorial security and maritime interests should be a top mission of the country's border and coastal defense work, Liang said at a national meeting on border and coastal defense.
The work of border and coastal defense should also contribute to improved relations with neighboring countries and social and economic development in border areas, he said.
Senior Chinese leaders including President Hu Jintao, Premier Wen Jiabao, Li Changchun and Zhou Yongkang met with delegates and took photo with them before the meeting.
The delegates included representatives of a national committee for border and coastal defense, military regions, border or coastal provinces, and border police authorities.
McDonald's to up China cap investment by a quarter
Source: ReutersMcDonald's Corp, the world's largest hamburger chain, said it expects to boost its capital investment in China by about a quarter this year to tap the growth of the world's third-largest economy.
"We expect to increase our capital investment by 25 percent over last year," said Kenneth Chan, McDonald's China CEO, told reporters during the launch of a new marketing campaign on Friday.
"We continue to be extremely bullish about our business in China and will continue to invest in opening new restaurants," Chan said, but declined to disclose the investment amount for 2009 or 2010.
McDonald's, which competes with Yum Brands' KFC in the U.S. and China, and Ajisen (China) in the mainland, a noodle restaurant chain operator, was planning to open 150 to 175 restaurants in China in 2010, which would lead to the creation of 10,000 new jobs, he added.
"We continue to be extremely bullish about our business in China and will continue to invest in opening new restaurants," Chan said, but declined to disclose the investment amount for 2009 or 2010.
McDonald's, which competes with Yum Brands' KFC in the U.S. and China, and Ajisen (China) in the mainland, a noodle restaurant chain operator, was planning to open 150 to 175 restaurants in China in 2010, which would lead to the creation of 10,000 new jobs, he added.
The company said it had 1,135 stores in mainland China as of the end of 2009.
McDonald's is launching a new brand concept called "Make Room for Happiness" to mark the 20th anniversary of the opening of its first restaurant in Shenzhen.
Last week, McDonald's posted a profit for the fourth-quarter of 2009 of $1.22 billion, up from $985.3 million a year earlier, helped by strength in Europe and a small rise in December sales in the U.S. It said same-store sales gained 1 percent in December after two months of declines in the United States, where high unemployment and rampant discounting are straining results.
December same-store sales in Europe topped forecasts with a 5.1 percent gain, while the Asia-Pacific, Middle East and Africa region missed analyst calls and were up just 1 percent. Globally, same-store sales rose 2.7 percent for December and 2.3 percent for the quarter, the company said.
McDonald's is launching a new brand concept called "Make Room for Happiness" to mark the 20th anniversary of the opening of its first restaurant in Shenzhen.
Last week, McDonald's posted a profit for the fourth-quarter of 2009 of $1.22 billion, up from $985.3 million a year earlier, helped by strength in Europe and a small rise in December sales in the U.S. It said same-store sales gained 1 percent in December after two months of declines in the United States, where high unemployment and rampant discounting are straining results.
December same-store sales in Europe topped forecasts with a 5.1 percent gain, while the Asia-Pacific, Middle East and Africa region missed analyst calls and were up just 1 percent. Globally, same-store sales rose 2.7 percent for December and 2.3 percent for the quarter, the company said.
Source article: http://www.reuters.com/article/idUSTRE60S0JW20100129
Google China Web Advertising Sales Fall on Exit Plan, CBN Says
Source: Bloomberg NewsGoogle Inc.’s plan to review its Chinese operations has led to a drop in online advertising orders in the country this month, China Business News reported, citing unidentified external sales agents for the U.S. company.
Some Google sales agents reported declines of about 50 percent in new orders from advertisers, the newspaper said. Customers are concerned about the uncertainty surrounding Google’s operations in China after the company indicated it may shut its local Web site, according to the report.
An unidentified official at Google said operations at the company’s Chinese division are normal and declined further comment, according to China Business News.
“We are operating as usual and are working hard to provide the best service to our partners,” Jessica Powell, a Tokyo- based spokeswoman at Google, said in an e-mail today. Google doesn’t disclose revenue figures for China, she said.
Google said on Jan. 12 that it may stop operating its Google.cn local site and close its offices in China pending talks with the government on the company’s plan to stop censoring search results. The U.S. Internet operator said the review of its Chinese operations follow cyber attacks from the country targeted at obtaining proprietary information and personal details of some users.
“We are operating as usual and are working hard to provide the best service to our partners,” Jessica Powell, a Tokyo- based spokeswoman at Google, said in an e-mail today. Google doesn’t disclose revenue figures for China, she said.
Google said on Jan. 12 that it may stop operating its Google.cn local site and close its offices in China pending talks with the government on the company’s plan to stop censoring search results. The U.S. Internet operator said the review of its Chinese operations follow cyber attacks from the country targeted at obtaining proprietary information and personal details of some users.
Source article: http://www.bloomberg.com/apps/news?pid=20601089&sid=abdwL37WUoMY
Seawater plan selected to quench city's thirst
Source: By Cui Xiaohuo and Zhang Yan (China Daily)Beijing may divert seawater from nearby provinces as an immediate solution against the scarcity of water in the populated city.
The government is "seriously studying" the different routes of seawater diversion and desalting methods, the water authority said yesterday.
Some tests have already proven successful, it said.
"We hope seawater will soon become a useful alternative source of water for Beijing. In fact, we are mulling all options to bring in diverse resources to keep Beijing's water deposit at a safe level," said Cheng Jing, director of the city's water authority bureau, who was invited to a special briefing on water resources yesterday morning with local legislators.
Five legislators from Haidian district yesterday invited vice mayor Xia Zhanyi and senior water authority officials to a 90-miniute closed-door discussion on water policies.
The city of Beijing is 400 million cu m short of its water supply target each year, and the underground water level in the capital has been declining for nine consecutive years.
The 1,200 km South-to-North water diversion project, planned to feed more than one billion cu m of water to Beijing this year, was delayed to 2014 due to relocation issues in southern provinces.
But Beijing can wait no longer, officials said.
"The delay of the massive diversion project has forced authorities to come up with a quick and feasible solution, such as utilizing seawater," Nie Yuzao, another senior official with the water authority, told reporters after the meeting yesterday.
Studies on the diversion routes, desalination methods and cost evaluation have been ongoing, said Nie.
Earlier this month, the engineering company affiliated to the Shougang Group, the region's largest steel maker, succeeded in testing technology that could turn a massive amount of seawater from Caofeidian in Hebei province into industrial water to be used for steel production.
The city of Beijing is 400 million cu m short of its water supply target each year, and the underground water level in the capital has been declining for nine consecutive years.
The 1,200 km South-to-North water diversion project, planned to feed more than one billion cu m of water to Beijing this year, was delayed to 2014 due to relocation issues in southern provinces.
But Beijing can wait no longer, officials said.
"The delay of the massive diversion project has forced authorities to come up with a quick and feasible solution, such as utilizing seawater," Nie Yuzao, another senior official with the water authority, told reporters after the meeting yesterday.
Studies on the diversion routes, desalination methods and cost evaluation have been ongoing, said Nie.
Earlier this month, the engineering company affiliated to the Shougang Group, the region's largest steel maker, succeeded in testing technology that could turn a massive amount of seawater from Caofeidian in Hebei province into industrial water to be used for steel production.
A group of local legislators also visited the seawater desalination project in neighboring Tianjin municipality last month. Officials said the sea areas in both Hebei and Tianjin are possible sources to feed Beijing.
Beijing and Hebei authorities have already been discussing the possibility of having four Hebei-based reservoirs supply water to the capital later this year.
After a public hearing last month, the municipal government decided to raise the tap water price from 3.7 yuan per cu m to 4 yuan as its latest move to save the resource. But voters who rejected the rise urged authorities to charge heavy users more, instead of sharing the financial burden with all.
Beijing and Hebei authorities have already been discussing the possibility of having four Hebei-based reservoirs supply water to the capital later this year.
After a public hearing last month, the municipal government decided to raise the tap water price from 3.7 yuan per cu m to 4 yuan as its latest move to save the resource. But voters who rejected the rise urged authorities to charge heavy users more, instead of sharing the financial burden with all.
Thursday, January 28, 2010
Have You Heard...
- Unilever Links Hot Steam With Warm Wishes in Lipton Contest
- Websites and TV scramble to develop online video films
- Baidu forms online shopping mall JV
- Cheapest Route to Walmart From China May Skip Buffett’s Railway
- Li & Fung Signs Walmart Deal That May Generate $2 Billion Sales
- An NBA Problem Child Packs His Baggage for China
Unilever Links Hot Steam With Warm Wishes in Lipton Contest
Source: Advertising AgeChinese New Year Campaign by DDB and AKQA Partners Lipton Tea Brand With QQ.com Users During Winter Months
SHANGHAI (AdAgeChina.com) -- Unilever is tapping into family celebrations leading up to the lunar new year starting Feb. 14 as well as China's unusually cold winter with a charming digital campaign for its Lipton milk-tea product line.
"It's like Christmas for Westerners," said Jane Huang, Unilever's beverage brand-building director, China. "Families gather together, visit friends and share meals and drinks."
Called "Cup of Greetings," the Lipton campaign invites consumers to pick one of three films created by Unilever, featuring mimes, schoolgirls or a rock band, and upload a photo of their faces to share with friends by e-mail or on a branded microsite on Tencent's QQ.com service, lipton.act.qq.com.
When friends see the video, the sender's face is mapped in as a 3-D image over the main actor's face in the film. The greeting arrives in the form of a steaming cup they can blow on using a computer mouse or microphone.
The steam then forms a personalized greeting built around the Chinese character for steam, qi, which can be combined with other characters to create phrases related to good luck, prosperity and popularity.
"These are all things people want to hear at Chinese New Year," Ms. Huang said. "People are looking forward to good luck at the start of tiger year and only a hot beverage can create steam. We wanted to see how can we link these two together."QQ.com, China's most-popular website, started as an instant-messaging site but has evolved into a social-network platform that is popular with consumers and increasingly with marketers in China.
"We partnered with them to get the most possible reach and the numbers are very astonishing," said Johan Vakidis, executive creative director at AKQA in Shanghai, which developed the digital program.
In the first two weeks after the campaign launched in 73 cities on Jan. 1, the site attracted more than 17 million viewers who sent more than 6.4 million greetings. More than 4.3 million users received greetings.
"We partnered with them to get the most possible reach and the numbers are very astonishing," said Johan Vakidis, executive creative director at AKQA in Shanghai, which developed the digital program.
In the first two weeks after the campaign launched in 73 cities on Jan. 1, the site attracted more than 17 million viewers who sent more than 6.4 million greetings. More than 4.3 million users received greetings.
The new online campaign extends a story about friends gathering on Chinese New Year first told in a TV commercial by DDB Worldwide, Shanghai. As the friends greet each other, their words form in steam coming from the hot Lipton milk tea they are drinking.
"The idea is to extend the TV spot online by allowing users to send cups of warm greetings to friends that are revealed in the tea's steam. We added another layer to that which is content, not only can you send a cup of greetings to friends, you can also put yourself in a film," Mr. Vakidis said.
Web users who send 20 greetings get a red diamond on QQ.com, a form of currency on the site worth $1.46 to use for virtual purchases. The person who sends the most messages by the end of February wins a (real) iPhone.
"The idea is to extend the TV spot online by allowing users to send cups of warm greetings to friends that are revealed in the tea's steam. We added another layer to that which is content, not only can you send a cup of greetings to friends, you can also put yourself in a film," Mr. Vakidis said.
Web users who send 20 greetings get a red diamond on QQ.com, a form of currency on the site worth $1.46 to use for virtual purchases. The person who sends the most messages by the end of February wins a (real) iPhone.
Unilever increases use of digital media Digital media strategies are widely used by mainstream marketers such as Unilever, Procter & Gamble Co. and L'Oreal in China, now the world's largest internet market, with 338 million users.
Last fall, for example, Unilever ran another AKQA-created digital program for Lipton, called "A Hug a Day," with Renren.com, one of China's largest social-media sites. Unilever helped consumers start virtual hug chains on the site. The campaign also had a gaming aspect linked to purchase. With unique codes in the product packaging, users could redeem magic cards allowing them to super-size the experience by stealing chains and doubling chains.
"A core insight for this campaign was culturally, Chinese people do not hug," Mr. Vakidis said.
Last fall, for example, Unilever ran another AKQA-created digital program for Lipton, called "A Hug a Day," with Renren.com, one of China's largest social-media sites. Unilever helped consumers start virtual hug chains on the site. The campaign also had a gaming aspect linked to purchase. With unique codes in the product packaging, users could redeem magic cards allowing them to super-size the experience by stealing chains and doubling chains.
"A core insight for this campaign was culturally, Chinese people do not hug," Mr. Vakidis said.
"Lipton wanted to own the opportunity to spread the goodness of hugging, linking it back to their product."
Last year Unilever also generated buzz about Pond's Age Miracle moisturizer with a blind trial program done online, and developed one of the first brand-owned online game applications on Kaixin001.com, one of China's most popular social-networking sites, to promote ice cream brand Magnum. The company also created a seven-minute film starring Catherine Zeta-Jones called "Alchemist" to launch Lux Super Rich Shine in China and Taiwan. The full-length film only ran online at uxfilm.jp.
Last year Unilever also generated buzz about Pond's Age Miracle moisturizer with a blind trial program done online, and developed one of the first brand-owned online game applications on Kaixin001.com, one of China's most popular social-networking sites, to promote ice cream brand Magnum. The company also created a seven-minute film starring Catherine Zeta-Jones called "Alchemist" to launch Lux Super Rich Shine in China and Taiwan. The full-length film only ran online at uxfilm.jp.
Source article: http://adage.com/globalnews/article?article_id=141764
Websites and TV scramble to develop online video films
Source: Shanghai DailySHANGHAI-BASED PPLive and other privately owned online video Websites are scrambling to expand their content and retain user loyalty as traditional Chinese television stations and Internet portals muscle into a lucrative and growing market.
PPLive, one among the earliest providers of peer-to-peer online streaming of live TV broadcasts, announced last Monday that it is forming a joint venture with Beijing-based media and broadcasting company Sun Media Group.
The financing and structure of the venture weren't disclosed, but reports said it will target women in the 20-40 age bracket. Sun is controlled by popular female TV host Yang Lan.
China has 384 million Internet users, bigger than the population of the United States, and an estimated two-thirds of them watch online videos. Video Websites, portals and now traditional TV stations are eying those numbers as a lucrative revenue source in advertising.
New channels
Global online advertising spending on the video sector will increase up to 45 percent every year in the next five years and may reach US$5.2 billion yuan, according to the US-based eMarketer.
"More and more traditional TV program producers are seeking new channels to reach more viewers via their own video sites or through other platforms," said Zhao Huibin, an analyst with China Internet Network Information Center. "As the big players enter the market, privately owned video sites will have to expand and diversify their content to attract picky viewers."
The online video industry in China is fragmented and highly competitive. To survive, those already in the business are jostling for new content sources and for strategic alliances to bolster their marketing reach. For those wanting to enter the business, the race is on.
"We are hoping to cooperate with more content providers and are also considering producing and broadcasting some exclusive programming," said Chen Zhong, marketing director for PPLive. "By widening the array of our programming, we hope to target our users more specifically according to their ages and interests."
PPLive is among the leading online video platform in the world, with an installed user base of 175 million, according to its open information. The site, which has been compared with Hulu in the US, streams licensed video content to users free of charge. According to Reuters, the company doubled its revenue from advertising on the site last year. No figure was given.
In early December, the company secured more than 100 million yuan (US$14.6 million) from private equity DFJ DragonFund, BlueRun Ventures and Softbank China as part of a third round of financing. It also received an unknown amount of capital from a Shanghai government development fund.
Baidu Inc, the country's top search engine, also made a strategic investment in the company in 2007, but no details about that link-up have been made public.
Internet portals in China are also seeking to carve out positions in the online video market.
NetEase, one of China's biggest Internet portals, recently teamed up with Shanghai-based online video provider Joy.cn, giving the site a wider platform for user access.
The link-up also allows Joy.cn to restructure its video site to include programs from more than 100 TV stations, including about 10,000 TV series episodes.
"We will continue to offer users licensed movies and TV series at the same time as we expand channels to more Internet portals and social networking sites," said Joy.cn Chief Executive Officer Vincent Lv.
Joy.cn spent about 50 million yuan for licensed content in 2009. The figure is expected to swell considerably this year as the site expands programming.
Source article: http://www.shanghaidaily.com/article/?id=427091&type=Business
Baidu forms online shopping mall JV
Source: (China Daily/Agencies)Baidu Inc, a major Chinese language Internet search provider, and Rakuten Inc, the largest e-commerce website in Japan, yesterday announced an agreement to jointly invest $50 million over three years in a joint venture to build a B2B2C online shopping mall for Chinese-Internet users.
B2B2C refers to an online marketplace that links and provides value-added services to both businesses to business (B2B) and business to consumers (B2C).
The online mall will purportedly provide customers with high-quality merchandise from well-known Chinese and foreign brands as well as from small- and medium-sized enterprises, all at competitive prices.
Expected to go live in the second half of 2010, the companies claim the site will be the largest online B2B2C shopping mall in China. Rakuten will own 51 percent and Baidu will own 49 percent of the new joint venture.
Baidu is strengthening its challenge to Chinese e-commerce leader Alibaba Group Holding Ltd as accelerating economic growth lifts consumer demand in the world's most populous country.
Baidu CEO Robin Li said the company is expanding in non-search businesses to boost sales growth as a change in the company's paid-search system is expected to affect revenue in the first half of this year.
Founded in 1997 and currently ranked No 2 in the global B2C e-commerce market, Rakuten is a pioneer in the B2C industry. In Japan, it has approximately 60 million registered members and sales in 2008 totaled $2.7 billion.
Baidu is strengthening its challenge to Chinese e-commerce leader Alibaba Group Holding Ltd as accelerating economic growth lifts consumer demand in the world's most populous country.
Baidu CEO Robin Li said the company is expanding in non-search businesses to boost sales growth as a change in the company's paid-search system is expected to affect revenue in the first half of this year.
Founded in 1997 and currently ranked No 2 in the global B2C e-commerce market, Rakuten is a pioneer in the B2C industry. In Japan, it has approximately 60 million registered members and sales in 2008 totaled $2.7 billion.
The company operates Rakuten Ichiba, Japan's leading Internet shopping mall with over 47 million items registered on its platform and over 30,000 participating merchants, some of which have monthly turnover of more than $1 million.
Baidu, founded in 2000, is the world's largest Chinese language search engine. In addition to its Web search platform, Baidu also hosts a range of popular community-oriented products and services, such as Baidu Knows, Baidu Post-Bar and Baidu Encyclopedia.
"This is a very exciting development for Baidu," said Ren Xuyang, Baidu's vice-president of marketing and business development. "As the Chinese Internet space continues its rapid development, an increasing number of businesses and consumers are engaging in e-commerce. I believe the platform that Rakuten and Baidu build will provide users with a diversified, satisfying shopping experience while driving the broader development of China's e-commerce space."
"Baidu, with its vast reach and deep user loyalty, is the perfect compliment to Rakuten's extensive experience in the online B2C sector," commented Kentaro Hyakuno, senior executive officer of Rakuten Inc. "Through this joint venture, we also aim to create a platform that will grow alongside small- and medium-sized enterprises as well as the leading Chinese and global brands."
Baidu, founded in 2000, is the world's largest Chinese language search engine. In addition to its Web search platform, Baidu also hosts a range of popular community-oriented products and services, such as Baidu Knows, Baidu Post-Bar and Baidu Encyclopedia.
"This is a very exciting development for Baidu," said Ren Xuyang, Baidu's vice-president of marketing and business development. "As the Chinese Internet space continues its rapid development, an increasing number of businesses and consumers are engaging in e-commerce. I believe the platform that Rakuten and Baidu build will provide users with a diversified, satisfying shopping experience while driving the broader development of China's e-commerce space."
"Baidu, with its vast reach and deep user loyalty, is the perfect compliment to Rakuten's extensive experience in the online B2C sector," commented Kentaro Hyakuno, senior executive officer of Rakuten Inc. "Through this joint venture, we also aim to create a platform that will grow alongside small- and medium-sized enterprises as well as the leading Chinese and global brands."
Cheapest Route to Walmart From China May Skip Buffett’s Railway
Source: Bloomberg NewsChinese toys and sneakers headed to Wal-Mart Stores Inc. and Target Corp. on the U.S. East Coast may bypass Warren Buffett’s $33.8 billion railway as the expansion of the Panama Canal slashes the cost of shipping them by sea.
The deeper, wider canal will allow A.P. Moeller-Maersk A/S, China Ocean Shipping Group Co. and other lines to ship more cargo directly to New York and Boston instead of unloading it on the West Coast for trains and trucks to finish the journey east. That could save exporters 30 percent, the canal operator said.
The $5.25 billion Panama Canal project, scheduled for completion during its centennial in 2014, may take business from ports including Los Angeles and Seattle, and railroads including Berkshire Hathaway Inc.’s Burlington Northern Santa Fe Corp. It costs as much as $1,000 more per cargo container to use trains than ships, said Lee Sokje, a shipbuilding analyst at Mirae Asset Securities Co. in Seoul.
“It is inevitable that railways, such as Burlington Northern, will lose some of their cargo once the Panama Canal is expanded,” said Jee Heon Seok, a shipping analyst for NH Investment & Securities Co. in Seoul. “Many more containers can be moved in a single voyage on a ship than going through the West Coast ports.”
More Cargo
China, poised to overtake Japan this year as the world’s second-biggest economy, may boost exports by 20 percent during the first quarter as the global economy recovers, according to Macquarie Securities Ltd. and Royal Bank of Scotland Group Plc.
China Cosco Holdings Co., Asia’s biggest shipping company by market value, and 14 other container lines said Jan. 14 they expect a “significant” increase in transpacific cargo this year on rising U.S. consumer sentiment. China Cosco rose 2.5 percent, the most since Jan. 19, to HK$9.60 in Hong Kong trading.
That prospective growth spurred Berkshire to pay $26 billion for the remaining 77.4 percent of Fort Worth, Texas- based Burlington Northern it didn’t already own. Buffett, the Berkshire chairman, said the largest U.S. railroad will benefit from “moving around more and more goods.” The acquisition is pending and expected to be completed by March 31.
More Cargo
China, poised to overtake Japan this year as the world’s second-biggest economy, may boost exports by 20 percent during the first quarter as the global economy recovers, according to Macquarie Securities Ltd. and Royal Bank of Scotland Group Plc.
China Cosco Holdings Co., Asia’s biggest shipping company by market value, and 14 other container lines said Jan. 14 they expect a “significant” increase in transpacific cargo this year on rising U.S. consumer sentiment. China Cosco rose 2.5 percent, the most since Jan. 19, to HK$9.60 in Hong Kong trading.
That prospective growth spurred Berkshire to pay $26 billion for the remaining 77.4 percent of Fort Worth, Texas- based Burlington Northern it didn’t already own. Buffett, the Berkshire chairman, said the largest U.S. railroad will benefit from “moving around more and more goods.” The acquisition is pending and expected to be completed by March 31.
Burlington Northern customers in Gulf of Mexico ports -- including Houston and Galveston, Texas -- may benefit from more traffic going through a wider canal.
Buffett didn’t respond to a request for comment. A Burlington Northern spokeswoman, Suann Lundsberg, said trains deliver cargo from the West Coast to the East Coast as many as nine days faster than ships using the canal.
30 Percent Savings
Rail traffic is expected to continue growing, although probably at a slower rate than in the past, Lundsberg said.
“We know he doesn’t make short-term investments,” Art Wong, spokesman for the port in Long Beach, California, said of Buffett. “He must be making it because he thinks it’s a great long-term investment.”
Buffett didn’t respond to a request for comment. A Burlington Northern spokeswoman, Suann Lundsberg, said trains deliver cargo from the West Coast to the East Coast as many as nine days faster than ships using the canal.
30 Percent Savings
Rail traffic is expected to continue growing, although probably at a slower rate than in the past, Lundsberg said.
“We know he doesn’t make short-term investments,” Art Wong, spokesman for the port in Long Beach, California, said of Buffett. “He must be making it because he thinks it’s a great long-term investment.”
About 43 percent of Asian cargo shipped to East Coast ports -- including Savannah, Georgia, and Jacksonville, Florida --goes through the Panama Canal, said Rodolfo Sabonge, director of marketing for the Panama Canal Authority. That share may increase to 49 percent by 2025.
“It will become less expensive overall to ship through the canal,” Sabonge said. “Savings could go up to 30 percent.”
The expansion project, started in 2007, is building locks on both sides of the 50-mile canal, digging a new channel linking the locks and deepening the waterway connecting the Pacific Ocean with the Caribbean Sea.
New York Harbor
“It will become less expensive overall to ship through the canal,” Sabonge said. “Savings could go up to 30 percent.”
The expansion project, started in 2007, is building locks on both sides of the 50-mile canal, digging a new channel linking the locks and deepening the waterway connecting the Pacific Ocean with the Caribbean Sea.
New York Harbor
Currently, ships loading fewer than 5,000 20-foot boxes use the canal. The expansion will accommodate vessels carrying about 12,600 containers and may generate cargo growth of about 5 percent a year, Sabonge said.
“It will, of course, help reduce costs for exporters to the U.S.,” said Victor Fung, chairman of outsourcer Li & Fung Ltd., the world’s biggest supplier of toys, clothes and furniture to retailers including Walmart, Target, Macy’s Inc. and Marks & Spencer Group Plc.
The company reported HK$46.3 billion ($5.96 billion) in sales during the first half of last year, with 61 percent of that coming from the U.S.
East Coast ports are readying for the changes. The Port Authority of New York and New Jersey is deepening more channels to 50 feet and considering options for a 78-year-old bridge between New Jersey and New York City that may be too low.
“Increasing numbers of big ships are anticipated at our port facilities following an expansion of the Panama Canal,” the agency said in September.
“It will, of course, help reduce costs for exporters to the U.S.,” said Victor Fung, chairman of outsourcer Li & Fung Ltd., the world’s biggest supplier of toys, clothes and furniture to retailers including Walmart, Target, Macy’s Inc. and Marks & Spencer Group Plc.
The company reported HK$46.3 billion ($5.96 billion) in sales during the first half of last year, with 61 percent of that coming from the U.S.
East Coast ports are readying for the changes. The Port Authority of New York and New Jersey is deepening more channels to 50 feet and considering options for a 78-year-old bridge between New Jersey and New York City that may be too low.
“Increasing numbers of big ships are anticipated at our port facilities following an expansion of the Panama Canal,” the agency said in September.
Ports, Railroads Collaborate
Hanjin Shipping Co., South Korea’s largest shipping company that operates two California terminals, is building its first East Coast terminal in Jacksonville to handle an increase in cargo through the canal. The facility opens in 2013.
The ports around Charleston, South Carolina, are dredging to accommodate vessels carrying more than 8,000 20-foot containers.
Six ports on the opposite coast -- Los Angeles; Long Beach; Oakland, California; Seattle; Tacoma, Washington; and Portland, Oregon -- handle about 70 percent of containerized trade between Asia and the U.S., according to an Oct. 12 statement.
Hanjin Shipping Co., South Korea’s largest shipping company that operates two California terminals, is building its first East Coast terminal in Jacksonville to handle an increase in cargo through the canal. The facility opens in 2013.
The ports around Charleston, South Carolina, are dredging to accommodate vessels carrying more than 8,000 20-foot containers.
Six ports on the opposite coast -- Los Angeles; Long Beach; Oakland, California; Seattle; Tacoma, Washington; and Portland, Oregon -- handle about 70 percent of containerized trade between Asia and the U.S., according to an Oct. 12 statement.
They are collaborating with Burlington Northern and Union Pacific Corp. to convince Asian exporters they are better options than the canal for reaching East Coast markets. They cite advantages including deep-water terminals, connections to inland transportation networks, and storage and distribution facilities.
Trains also use less fuel, reducing costs and carbon emissions, they said.
“We don’t think those alternative gateways will go away,” said Tay Yoshitani, chief executive officer for the Port of Seattle. “If we don’t improve our competitiveness, we could lose a lot of cargo.”
Trains also use less fuel, reducing costs and carbon emissions, they said.
“We don’t think those alternative gateways will go away,” said Tay Yoshitani, chief executive officer for the Port of Seattle. “If we don’t improve our competitiveness, we could lose a lot of cargo.”
Source article: http://www.bloomberg.com/apps/news?pid=20601089&sid=a3hOuGC_XdsY
Li & Fung Signs Walmart Deal That May Generate $2 Billion Sales
Source: Bloomberg NewsLi & Fung Ltd. today entered an agreement to supply clothes and other consumer goods to Wal-Mart Stores Inc. that may generate an additional $2 billion of sales in the first year, President Bruce Rockowitz said.
Walmart will have the option to acquire WSG Pte, the Li & Fung buying agency involved in the arrangement, after Jan. 1, 2016 according to a statement from Li & Fung, which didn’t set a price for the unit. Rockowitz declined to say if today’s deal would make Walmart the biggest client for the Hong Kong-based outsourcing specialist, overtaking Kohl’s Corp.
Li & Fung, which makes more than 60 percent of revenue in the U.S., is accelerating efforts to buy smaller rivals and sign outsourcing agreements to meet a target of $20 billion in sales this year. The company, whose 35 percent gain in market value over the past six months makes it the third-best performer on the benchmark Hang Seng Index, has a $1 billion acquisition fund.
“They’ve reached a level of scale in the universe of the sourcing world that it becomes the automatic go-to for retailers,” Matthew Marsden, who heads consumer research at Samsung Securities Co., said in a phone interview today. “Li & Fung stands a very good chance of hitting the $20 billion sales target by the end of this year.”
Li & Fung rose 0.9 percent to HK$32.30 in Hong Kong trading today. The stock has more than doubled in the past year, compared with a 62 percent gain for the Hang Seng Index. The company reports 2009 earnings in March.
Target, Zara
Walmart isn’t obligated to any sourcing or shipping volume under the agreement, Li & Fung, the biggest supplier of goods to retailers including Target Corp., Inditex SA’s Zara and Marks & Spencer Plc, said in its statement. “We expect to do about $2 billion in the first year,” Rockowitz said in a phone interview today.
Li & Fung rose 0.9 percent to HK$32.30 in Hong Kong trading today. The stock has more than doubled in the past year, compared with a 62 percent gain for the Hang Seng Index. The company reports 2009 earnings in March.
Target, Zara
Walmart isn’t obligated to any sourcing or shipping volume under the agreement, Li & Fung, the biggest supplier of goods to retailers including Target Corp., Inditex SA’s Zara and Marks & Spencer Plc, said in its statement. “We expect to do about $2 billion in the first year,” Rockowitz said in a phone interview today.
Walmart, the world’s largest retailer, will become Li & Fung’s biggest client if it buys $2 billion worth of goods, Marsden said.
WSG, the unit supplying Walmart under the new arrangement, will be headquartered in Hong Kong and “over time will employ hundreds” of employees, Rockowitz said. Li & Fung started supplying Walmart in about 2003, said Rockowitz, who declined to place a dollar value on the amount of goods his company supplies Walmart.
The margins for WSG will be “in line with those of a very high volume business,” Rockowitz said, without providing more details.
WSG, the unit supplying Walmart under the new arrangement, will be headquartered in Hong Kong and “over time will employ hundreds” of employees, Rockowitz said. Li & Fung started supplying Walmart in about 2003, said Rockowitz, who declined to place a dollar value on the amount of goods his company supplies Walmart.
The margins for WSG will be “in line with those of a very high volume business,” Rockowitz said, without providing more details.
Li & Fung’s Deals
Li & Fung said Dec. 8 it will source products for Hudson’s Bay Trading Co.’s four retail brands, including Home Outfitters and Zellers, from this year. In October, it agreed to pay as much as $401.8 million for New York-based Wear Me Apparel LLC’s operations related to children’s clothing and accessories, and men’s apparel. Wear Me, with $700 million of annual sales, designs and manufactures clothing sold at chains including Macy’s Inc. and Walmart, and also holds licenses for brands including Calvin Klein, Disney and Nickelodeon.
In February, Li & Fung agreed to buy the sourcing business of Liz Claiborne Inc., which had a volume of $1.3 billion in the 2007 fiscal year and whose brands include Lucky Brand, Juicy Couture and Kate Spade.
Net income for Li & Fung in the first six months of last year rose 13 percent to HK$1.4 billion ($180 million) on sales of HK$46.3 billion.
Li & Fung said Dec. 8 it will source products for Hudson’s Bay Trading Co.’s four retail brands, including Home Outfitters and Zellers, from this year. In October, it agreed to pay as much as $401.8 million for New York-based Wear Me Apparel LLC’s operations related to children’s clothing and accessories, and men’s apparel. Wear Me, with $700 million of annual sales, designs and manufactures clothing sold at chains including Macy’s Inc. and Walmart, and also holds licenses for brands including Calvin Klein, Disney and Nickelodeon.
In February, Li & Fung agreed to buy the sourcing business of Liz Claiborne Inc., which had a volume of $1.3 billion in the 2007 fiscal year and whose brands include Lucky Brand, Juicy Couture and Kate Spade.
Net income for Li & Fung in the first six months of last year rose 13 percent to HK$1.4 billion ($180 million) on sales of HK$46.3 billion.
Source article: http://www.bloomberg.com/apps/news?pid=20601089&sid=aSDzLcEyoNas
An NBA Problem Child Packs His Baggage for China
Source: Wall Street Journal by Loretta ChaoTAIYUAN, China—His New York fans may have deserted him, but Stephon Marbury is already winning new friends in this grimy coal city in northern China.
"Ma Bu Li," as he is now known, on Wednesday began an unlikely career with the Taiyuan Shanxi Zhongyu Professional Basketball Club, one of the worst teams in the league. He is the biggest National Basketball Association star ever to have played professional basketball in China.
Back home, Mr. Marbury's run-ins with coaches and teammates at the New York Knicks and other teams battered his reputation. After terminating his contract in New York early last year, Mr. Marbury played briefly for the Boston Celtics, and according to Zhongyu, he accepted an offer to move to China after he didn't get a satisfactory offer in the NBA.
But his falling out with the Knicks was not publicized as much in China as it has been in the U.S. Though die-hard Chinese fans say they are aware he has had less playing time in recent years, Mr. Marbury's reputation as a top-notch point guard is still relatively untarnished here.
The 32-year-old posted a greeting to Chinese fans on his blog Tuesday, attracting more than 4,000 subscribers within hours. One user posting under the name JohnLee7125 wrote a response to Mr. Marbury that said: "I think you can do better in China, because we love you."
Back home, Mr. Marbury's run-ins with coaches and teammates at the New York Knicks and other teams battered his reputation. After terminating his contract in New York early last year, Mr. Marbury played briefly for the Boston Celtics, and according to Zhongyu, he accepted an offer to move to China after he didn't get a satisfactory offer in the NBA.
But his falling out with the Knicks was not publicized as much in China as it has been in the U.S. Though die-hard Chinese fans say they are aware he has had less playing time in recent years, Mr. Marbury's reputation as a top-notch point guard is still relatively untarnished here.
The 32-year-old posted a greeting to Chinese fans on his blog Tuesday, attracting more than 4,000 subscribers within hours. One user posting under the name JohnLee7125 wrote a response to Mr. Marbury that said: "I think you can do better in China, because we love you."
Mr. Marbury is hardly a China hand. "I really didn't know that much about China other than what I've seen on TV" about Chinese NBA star Yao Ming, Mr. Marbury told reporters Tuesday night when he arrived at his hotel. "I thought this was the right place to be."
On Wednesday, Mr. Marbury turned out for the first time with his new team at a game. Although he didn't play, at half time he appeared on court dressed in a designer down-jacket to present gift bags to a group of children. Chinese reporters ran onto the court and mobbed him. The crowd cheered.
On Wednesday, Mr. Marbury turned out for the first time with his new team at a game. Although he didn't play, at half time he appeared on court dressed in a designer down-jacket to present gift bags to a group of children. Chinese reporters ran onto the court and mobbed him. The crowd cheered.
Li Fei, a 21-year-old college student, said that with Mr. Marbury on the team "it injects more excitement into the game."
"I've always been his fan." Mr. Li said. "I know he's a selfish player, and he doesn't like to pass, but that doesn't change the fact that he's a great player. It's beautiful to watch."
It's hard to say how this marriage will work out.
"I've always been his fan." Mr. Li said. "I know he's a selfish player, and he doesn't like to pass, but that doesn't change the fact that he's a great player. It's beautiful to watch."
It's hard to say how this marriage will work out.
Taiyuan is the capital of China's northern Shanxi province and the center of China's coal-mining industry. The whole city is covered in a thin layer of coal dust, including Zhongyu's Binhe Sports Stadium, which seats about 4,500 people. It has less than a fourth the capacity of New York's Madison Square Garden where Mr. Marbury played from 2004 to 2008. Courtside seats in the arena, which run about $1,464 a season, are a collection of worn red sofas and lounge chairs.
The Binhe Stadium looks like an abandoned building in the daytime while the team is practicing, its gates held closed with bicycle locks. About two hours before each game, security guards set up temporary metal detectors in front of each entrance to the stadium.
Still, fans are enthusiastic. They like to spontaneously do the "wave," and cheer loudly when they're treated to a dunk from one of the players.
Still, fans are enthusiastic. They like to spontaneously do the "wave," and cheer loudly when they're treated to a dunk from one of the players.
Taiyuan is markedly less tourist-friendly, internationalized and cosmopolitan than bustling cities such as Beijing and Shanghai. It's hard to find a bank ATM that will accept foreign credit cards.
"If he lasts 10 days, I'll be amazed," says Bruce O'Neil, president of the U.S. Basketball Academy, which trains young American players to be drafted by Chinese teams. "The culture shock is tremendous."
Both sides badly need this to work out. Zhongyu ranks 15th out of 17 teams. It will actually need to win 14 of its next 16 games in order to make the CBA playoffs.Mr. Marbury, a two-time NBA All-Star whose talent as point guard propelled him to early fame, has traded the NBA's renowned seven- and eight-figure salaries to make a fraction of that in China. Zhongyu hasn't disclosed exactly how much Mr. Marbury will be paid, but said the state-run Chinese Basketball Association limits each team to two foreign players who are allowed to earn a combined $60,000 a month—chump change by NBA standards. Zhongyu already has two foreign players—one of whom will be let go to make way for Mr. Marbury, according to the team's coach, Wu Qinglong.
Mr. Marbury, though, isn't playing in China for the money. He's here to promote his shoe and apparel brand, called "Starbury" after his nickname, featuring low-cost sneakers for $15. The market is potentially huge: The NBA estimates that 300 million people play basketball in China. Mr. Marbury has the Starbury logo tattooed on the side of his shaved head.
His new employer, Zhongyu-owner Wang Xingjiang, is an iron and steel magnate and basketball fanatic who made the Forbes "400 Richest Chinese" list in 2008. At the time, his net worth was estimated to be $260 million.
Mr. Marbury, though, isn't playing in China for the money. He's here to promote his shoe and apparel brand, called "Starbury" after his nickname, featuring low-cost sneakers for $15. The market is potentially huge: The NBA estimates that 300 million people play basketball in China. Mr. Marbury has the Starbury logo tattooed on the side of his shaved head.
His new employer, Zhongyu-owner Wang Xingjiang, is an iron and steel magnate and basketball fanatic who made the Forbes "400 Richest Chinese" list in 2008. At the time, his net worth was estimated to be $260 million.
Mr. Wang says he watches the NBA and wanted Mr. Marbury because "we needed someone to play that position." He said he loves basketball and thinks Marbury is "a good player on the court."
When things don't work out with foreign players, it's because "a lot of things aren't easy to communicate to [foreign players]. It's not because they're difficult to manage, it's because they aren't used to their surroundings. Sometimes they consider the accommodations to be somewhat backward compared to what they're used to."
CBA advisers and players say Mr. Marbury will likely be pampered as much as is possible while he's in Taiyuan. The player is staying at one of the city's nicest five-star hotels, though in China that usually doesn't compare with the service and quality of similarly ranked hotels in the U.S. He'll be trading in a lifestyle of private jets for train transport and local government-owned airlines.Wang Jianguang, a spokesman for Zhongyu, said the team has hired an interpreter for Mr. Marbury to help with his adjustment, but the team expects Mr. Marbury to be at all of its twice-a-day practices, which start at 9 a.m., six days a week.
"It's going to be interesting" to see how it plays out, said American CBA player Christopher Williams as he prepared to play against Mr. Marbury's team on Wednesday.
Despite the league restrictions and the emphasis on local players, foreign players in the CBA—of which there are currently about 35—are often also the most popular players in the league, according to senior CBA official Zhang Xiong.
"It's going to be interesting" to see how it plays out, said American CBA player Christopher Williams as he prepared to play against Mr. Marbury's team on Wednesday.
Despite the league restrictions and the emphasis on local players, foreign players in the CBA—of which there are currently about 35—are often also the most popular players in the league, according to senior CBA official Zhang Xiong.
For his part, Zhongyu coach Wu Qinglong says he knows there are cultural differences between domestic and foreign players, and that some foreign players have refused to practice in the past. He says such behavior "definitely must be punished…we pay your salary to participate in practices and games."
Mr. Wu says he wasn't aware of anything that would suggest Mr. Marbury would be difficult to work with. "We watch NBA games here, but we don't closely follow the careers of individual players," he says. "Marbury has the ability to lead the team, that's something we've been lacking."
Mr. O'Neil says he's skeptical. Mr. Marbury's arrival is "a milestone for the league in terms of notoriety and luring top players," he says. "But is it good for the league? I'm not sure."
Mr. Wu says he wasn't aware of anything that would suggest Mr. Marbury would be difficult to work with. "We watch NBA games here, but we don't closely follow the careers of individual players," he says. "Marbury has the ability to lead the team, that's something we've been lacking."
Mr. O'Neil says he's skeptical. Mr. Marbury's arrival is "a milestone for the league in terms of notoriety and luring top players," he says. "But is it good for the league? I'm not sure."
Wednesday, January 27, 2010
China Tightens Reins on Loans
Source: Wall Street Journal By Dinny McMahonBEIJING—Several state-run Chinese banks have ordered some branches to suspend new lending for the rest of this month, suggesting a coordinated effort by Beijing to manage state banks' torrid lending in the year's first few weeks.
A person with direct knowledge of the matter said Tuesday that Industrial & Commercial Bank of China Ltd., the country's biggest lender by assets, last Friday ordered its branches in Beijing not to issue any new loans for the rest of January.
China Citic Bank Corp. also suspended new lending in Shanghai last week because its local operations have already used up their monthly quota for new loans in the city, a Shanghai-based official at the medium-sized bank said Tuesday. The Citic Bank official added that both the bank's own headquarters and the People's Bank of China, the country's central bank, "have told us to control the pace of lending this year."
The moves by the two state-owned banks follow similar steps taken last week by state-run Bank of China Ltd.
Concerns that China may be moving more aggressively to rein in bank credit rippled through Asian markets Tuesday. The Shanghai composite index fell 2.42% to its lowest level in almost three months, with declines in many property shares. Hong Kong's blue-chip Hang Seng Index fell 2.4% to 20,109.33, its lowest closing level since Sept. 3.
Taiwan shares ended at an eight-week low, with the Taiwan Stock Exchange's Weighted Price Index falling 274.18 points, or 3.5%, to 7598.81.
The moves by the two state-owned banks follow similar steps taken last week by state-run Bank of China Ltd.
Concerns that China may be moving more aggressively to rein in bank credit rippled through Asian markets Tuesday. The Shanghai composite index fell 2.42% to its lowest level in almost three months, with declines in many property shares. Hong Kong's blue-chip Hang Seng Index fell 2.4% to 20,109.33, its lowest closing level since Sept. 3.
Taiwan shares ended at an eight-week low, with the Taiwan Stock Exchange's Weighted Price Index falling 274.18 points, or 3.5%, to 7598.81.
The curbs on lending come after China last week announced higher-than-expected economic growth for 2009—8.7%, comfortably above its 8% target. Now, the government appears to be winding down the bank-led stimulus program that helped it weather the global economic slowdown.
Beijing has also raised the amount of reserves banks have to hold at the central bank against their deposits, which shrinks the amount they can lend. It is gradually lifting the yield on central bank bills, making it appealing for banks to buy government debt rather than lend.
It remains unclear how severely China will continue to curb credit flows. Last week, China Banking Regulatory Commission Chairman Liu Mingkang said the regulator expects new yuan lending to be around 7.5 trillion yuan this year. That's down from a record 9.6 trillion yuan in new loans in 2009 but still more than double the 2008 level.
Chinese banks, which traditionally rush out loans at the start of the year, have already issued more than 1 trillion yuan ($146 billion) in new loans in the first two weeks of the year, more than double the monthly average of 400 billion yuan in the second half of last year, according to Chinese media reports, which could not be independently verified.
Beijing has also raised the amount of reserves banks have to hold at the central bank against their deposits, which shrinks the amount they can lend. It is gradually lifting the yield on central bank bills, making it appealing for banks to buy government debt rather than lend.
It remains unclear how severely China will continue to curb credit flows. Last week, China Banking Regulatory Commission Chairman Liu Mingkang said the regulator expects new yuan lending to be around 7.5 trillion yuan this year. That's down from a record 9.6 trillion yuan in new loans in 2009 but still more than double the 2008 level.
Chinese banks, which traditionally rush out loans at the start of the year, have already issued more than 1 trillion yuan ($146 billion) in new loans in the first two weeks of the year, more than double the monthly average of 400 billion yuan in the second half of last year, according to Chinese media reports, which could not be independently verified.
"In responding to such a credit surge, the People's Bank of China has launched more aggressive quantitative tightening than we previously have thought," said Credit Suisse economist Dong Tao.
Mr. Tao said six Chinese banks he contacted had confirmed they had suspended "new lending" across the country starting Jan. 19. He didn't name the banks.
Some economists said the government was attempting to smooth the flow of credit throughout the year.
"If banks are allowed to lend seven to eight trillion yuan in new loans for the full year, you can't come to a point [toward year end] where you ask banks to stop lending entirely," said Standard Chartered economist Stephen Green. "This is just policing of the quota."
Mr. Tao said six Chinese banks he contacted had confirmed they had suspended "new lending" across the country starting Jan. 19. He didn't name the banks.
Some economists said the government was attempting to smooth the flow of credit throughout the year.
"If banks are allowed to lend seven to eight trillion yuan in new loans for the full year, you can't come to a point [toward year end] where you ask banks to stop lending entirely," said Standard Chartered economist Stephen Green. "This is just policing of the quota."
Bank of America-Merrill Lynch economist Ting Lu said in a note that the credit suspension may mean that banks need to keep their loan levels stable, allowing them to extend new credit whenever an existing loan matures.
Given how much the banks have already lent this month, "there's no credit crunch. In hindsight there won't be any impact on the real economy," Mr. Lu said in a telephone interview.
Beijing is unlikely to drastically slow lending since many projects started as part of the government's stimulus measures still need at least another year of credit to bring them to completion.
On Tuesday, the People's Bank of China signaled its intention to keep monetary policy fairly accommodative by keeping the yield on its benchmark one-year bills unchanged after having raised it twice in the previous two weeks.
Given how much the banks have already lent this month, "there's no credit crunch. In hindsight there won't be any impact on the real economy," Mr. Lu said in a telephone interview.
Beijing is unlikely to drastically slow lending since many projects started as part of the government's stimulus measures still need at least another year of credit to bring them to completion.
On Tuesday, the People's Bank of China signaled its intention to keep monetary policy fairly accommodative by keeping the yield on its benchmark one-year bills unchanged after having raised it twice in the previous two weeks.
China says no curb on Google mobile technology
Source: ReutersChina sought to head off concerns about curbs on Google phone technology on Wednesday, as U.S. business groups urged Washington to tackle "alarming" measures against foreign high-tech companies in China.
Google's threat to quit China this month over hacking and U.S. criticism of China's Internet censorship has irritated ties between the two economic giants, already hurt by disagreements over currency exchange, trade and U.S. arms sales to Taiwan.
In soothing words for investors, a Chinese official said Beijing would not seek to stand in the way of Google's Android mobile phone platform in the Chinese market.
The spokesman for China's Ministry of Industry and Information Technology, Zhu Hongren, was responding to a question about whether use of the Android application in China would be affected by the Internet giant's complaints against China.
"I think there should be no limit on the use of any system as long as it complies with regulations in China, it has sound negotiations and cooperation with telecom operators and obeys relevant rules and requirement," Zhu told a news conference.
In soothing words for investors, a Chinese official said Beijing would not seek to stand in the way of Google's Android mobile phone platform in the Chinese market.
The spokesman for China's Ministry of Industry and Information Technology, Zhu Hongren, was responding to a question about whether use of the Android application in China would be affected by the Internet giant's complaints against China.
"I think there should be no limit on the use of any system as long as it complies with regulations in China, it has sound negotiations and cooperation with telecom operators and obeys relevant rules and requirement," Zhu told a news conference.
"The Chinese telecommunication market is an open market."
The Ministry oversees China's mobile telephone sector.
Zhu's remarks appeared to underscore that the Chinese government does not want to scare investors by directly attacking Google and is instead directing its ire at the U.S. government, which state-run media have accused of "politicizing" the dispute.
Two weeks ago, Google threatened to shut its Chinese Google.cn portal and pull back from China, citing problems of censorship and a hacking attack from within the country. It is still filtering sensitive content on Google.cn.
The Ministry oversees China's mobile telephone sector.
Zhu's remarks appeared to underscore that the Chinese government does not want to scare investors by directly attacking Google and is instead directing its ire at the U.S. government, which state-run media have accused of "politicizing" the dispute.
Two weeks ago, Google threatened to shut its Chinese Google.cn portal and pull back from China, citing problems of censorship and a hacking attack from within the country. It is still filtering sensitive content on Google.cn.
The Obama administration backed Google's criticisms. Last Thursday U.S. Secretary of State Hillary Clinton urged China to drop Internet censorship and investigate the hacking.
Clinton is likely to press Chinese Foreign Minister Yang Jiechi about Internet freedom when the two meet in London on Thursday, a U.S. official said.
"I think it is likely that they will end up discussing, maybe not the specific Google situation but the broader issue," the official, speaking on condition of anonymity, said on Wednesday.
BUSINESS GROUP CRITICISM
Clinton is likely to press Chinese Foreign Minister Yang Jiechi about Internet freedom when the two meet in London on Thursday, a U.S. official said.
"I think it is likely that they will end up discussing, maybe not the specific Google situation but the broader issue," the official, speaking on condition of anonymity, said on Wednesday.
BUSINESS GROUP CRITICISM
U.S. business groups have fired their own broadside at China, calling on top U.S. officials to pressure Beijing on moves to keep out foreign high-tech companies.
The appeal, in a letter to top U.S. officials including Clinton, comes as China formulates regulations for policies meant to encourage domestic industry to ascend the value chain.
Foreign industry fears that incentives for government purchasers to prioritize domestically developed products could lose them valuable contracts.
"For several years, the Chinese government has been implementing indigenous innovation policies aimed at carving out markets for national champions and increasing the locally owned and developed intellectual property of innovative products," the business groups said, according to a text made public by the Business Software alliance.
The appeal, in a letter to top U.S. officials including Clinton, comes as China formulates regulations for policies meant to encourage domestic industry to ascend the value chain.
Foreign industry fears that incentives for government purchasers to prioritize domestically developed products could lose them valuable contracts.
"For several years, the Chinese government has been implementing indigenous innovation policies aimed at carving out markets for national champions and increasing the locally owned and developed intellectual property of innovative products," the business groups said, according to a text made public by the Business Software alliance.
"We are increasingly alarmed by the means China is using to achieve these goals."
Signatories urged the Obama administration to make the issue a top priority and work with the business community and foreign governments to develop a "strong, fully coordinated response to the Chinese government."
MOBILE PHONE INDUSTRY HURT
A showdown between Google and the Chinese government could possibly hurt mobile phone makers who had bet on the Android system to increase sales in the world's biggest mobile market.
Signatories urged the Obama administration to make the issue a top priority and work with the business community and foreign governments to develop a "strong, fully coordinated response to the Chinese government."
MOBILE PHONE INDUSTRY HURT
A showdown between Google and the Chinese government could possibly hurt mobile phone makers who had bet on the Android system to increase sales in the world's biggest mobile market.
Motorola Inc has bet its turnaround on Google's mobile software and China. Phones running on Android, an open-software platform for mobile applications, are also being developed by several Chinese firms, including ZTE Corp and Huawei.
Last week, Google postponed the launch of two mobile phones in China that use its Android platform.
After first fending off criticisms from Google and Washington, Chinese officials and state-run media have launched toughly worded warnings to the Obama administration that have the hallmarks of a concerted counter-campaign.
Last week, Google postponed the launch of two mobile phones in China that use its Android platform.
After first fending off criticisms from Google and Washington, Chinese officials and state-run media have launched toughly worded warnings to the Obama administration that have the hallmarks of a concerted counter-campaign.
The People's Daily, the main mouthpiece of China's ruling Communist Party, said on Wednesday the Google dispute had added to strains that have created a rocky start for China-U.S. relations in 2010.
It said worries included U.S. arms sales to Taiwan, trade, and speculation President Barack Obama may meet exiled Tibetan leader the Dalai Lama.
"If these issues are mishandled, they will have a powerful destructive effect on Sino-U.S. relations, and may even affect the broader development of relations."
It said worries included U.S. arms sales to Taiwan, trade, and speculation President Barack Obama may meet exiled Tibetan leader the Dalai Lama.
"If these issues are mishandled, they will have a powerful destructive effect on Sino-U.S. relations, and may even affect the broader development of relations."
Source article: http://www.reuters.com/article/idUSTRE60L1DK20100127
Gates Internet Comments Played Up in Chinese Media
Source: Bloomberg NewsChina’s state-controlled media is playing up remarks by Microsoft Corp. Chairman Bill Gates that the country’s Internet censorship is “very limited” as a way of countering U.S. calls for China to ease controls on the Web.
The English-language China Daily ran Gates’ comments on its front page. Global Times also gave Gates top billing, with the headline “Bill Gates bats for China.” The Chinese version of the paper, with a circulation of about 1.5 million, devoted its front page to reviewing overseas coverage of Gates’ remarks.
In a Jan. 25 interview on ABC News’s “Good Morning America,” program, Gates said “fortunately, the Chinese efforts to censor the Internet have been very limited.
“Different countries have different rules about censorship,” Gates said. In Germany “if you make certain statements about being in the Nazi Party, that’s censored.”
Gates’ comments follow the Jan. 12 decision by Mountain View, California-based Google Inc. that it would stop censoring its search results as required by the government in China and might end operations there, following what it described as an infiltration of its technology and the Gmail accounts of Chinese human rights activists.
“You’ve got to decide do you want to obey the laws of the countries you are in or not?” Gates told ABC. “If not, you may not end up doing business there.”
Simon Leung, chief executive of Microsoft’s China division, “has nothing more to add to the comments that Bill Gates made on Monday,” an e-mailed statement from the company said today.
Gates’ comments follow the Jan. 12 decision by Mountain View, California-based Google Inc. that it would stop censoring its search results as required by the government in China and might end operations there, following what it described as an infiltration of its technology and the Gmail accounts of Chinese human rights activists.
“You’ve got to decide do you want to obey the laws of the countries you are in or not?” Gates told ABC. “If not, you may not end up doing business there.”
Simon Leung, chief executive of Microsoft’s China division, “has nothing more to add to the comments that Bill Gates made on Monday,” an e-mailed statement from the company said today.
Critical
China’s government and official media have criticized comments made last week by U.S. Secretary of State Hillary Clinton. In a speech in Washington Jan. 21, Clinton called on U.S. technology companies to resist censorship of the Internet and said perpetrators of cyber attacks such as those who targeted Google must face consequences. Clinton also said China’s Internet controls could harm the Asian nation’s development.
Today, a Chinese-language article in the People’s Daily, the mouthpiece of the country’s ruling Communist Party, said the U.S. was trying to use the Google case as a “tool to implement Internet hegemony.”
China says it does not engage in cyber attacks and an unnamed government spokesman said accusations that it was behind the Google hacking were “groundless,” the Xinhua News Agency reported Jan. 25.
Today, a Chinese-language article in the People’s Daily, the mouthpiece of the country’s ruling Communist Party, said the U.S. was trying to use the Google case as a “tool to implement Internet hegemony.”
China says it does not engage in cyber attacks and an unnamed government spokesman said accusations that it was behind the Google hacking were “groundless,” the Xinhua News Agency reported Jan. 25.
Source article: http://www.bloomberg.com/apps/news?pid=20601089&sid=aNbPQJvGHEOU
XAIC extends contract with Boeing
Source: By Lu Haoting (China Daily)Xi'an Aircraft International Corporation (XAIC) yesterday delivered the 1,500th vertical fin for Boeing's best-selling B737 aircraft and signed an extended contract to supply another 1,500 units to the US aircraft manufacturer.
The new order is the largest subcontracting agreement in terms of volume the Chinese aviation manufacturing industry has ever received.
"The extension of the contract showed that XAIC is capable of producing large-size aircraft components in large volume for leading international aviation manufacturers. It is a milestone in XAIC's efforts to become a strategic partner for Boeing and Airbus," said Meng Xiangkai, president of XAIC.
Vertical fins are typically found on the aft end of the fuselage and are intended to reduce aerodynamic sideslip.
XAIC, a subsidiary of Aviation Industry Corporation of China (AVIC), signed the first contract for producing 1,500 units of B737 vertical fins in 1996 and is currently able to produce 21 to 24 units of vertical fins per month.
Boeing manufactures 31 B737 planes per month. Nearly two-thirds of the B737 worldwide fleet are equipped with vertical fins produced by XAIC.
Boeing and XAIC did not reveal the total value of the contract.
"Since the 1980s, Boeing has purchased parts and components worth more than $1.5 billion from China. That (the purchasing volume) will more than double in the coming years," said George Maffeo, vice-president for supplier management, airplane programs, Boeing Commercial Airplanes.
Boeing manufactures 31 B737 planes per month. Nearly two-thirds of the B737 worldwide fleet are equipped with vertical fins produced by XAIC.
Boeing and XAIC did not reveal the total value of the contract.
"Since the 1980s, Boeing has purchased parts and components worth more than $1.5 billion from China. That (the purchasing volume) will more than double in the coming years," said George Maffeo, vice-president for supplier management, airplane programs, Boeing Commercial Airplanes.
Boeing's archrival Airbus is also expanding industrial cooperation in China. The total annual value of Airbus' procurement in China reached over $100 million in 2008 and is expected to touch $200 million this year and $450 million in 2015.
XAIC also produces wings for Airbus A320 airplanes. The A320 wing is the largest and most complicated aircraft component a Chinese company has ever made. China is Airbus' only wing manufacturer outside Europe.
XAIC is a major supplier to China's homegrown regional jet ARJ21 and large commercial passenger aircraft C919 by manufacturing fuselage and wings.
AVIC is using XAIC as a platform to consolidate its commercial aircraft manufacturing businesses by injecting assets worth 8 billion yuan into the Shenzhen-listed company.
XAIC also produces wings for Airbus A320 airplanes. The A320 wing is the largest and most complicated aircraft component a Chinese company has ever made. China is Airbus' only wing manufacturer outside Europe.
XAIC is a major supplier to China's homegrown regional jet ARJ21 and large commercial passenger aircraft C919 by manufacturing fuselage and wings.
AVIC is using XAIC as a platform to consolidate its commercial aircraft manufacturing businesses by injecting assets worth 8 billion yuan into the Shenzhen-listed company.
Coach To Open First Mainland Flagship Store In Shanghai
Source: China Retail NewsThe American luxury accessories designer and maker Coach has announced plans to open its first Chinese mainland flagship store in Shanghai in April 2010.
Located at the junction of Shanghai's Huaihaizhong road and Songshan road, this new flagship store is designed by Coach's construction and design team. It covers an area of 650 square meters, the two-floor store has two new features: a women's accessories area and a men's boutique series area.
To celebrate the opening of this flagship store, Coach specially designed a series of limited edition handbags, which are only available in this new store.
In addition, the company has organized a charity activity named "Star Totes" to coordinate with the opening of this store. Coach has invited celebrities from all over the world to do artistic creations on Coach's handbags. These handbags will be auctioned on the Internet and the income will be donated to the Jackie Chan Charitable Foundation.
China's draft law to jail dog eaters whets debate
Source: ReutersA proposal to jail people who eat dog meat for up 15 days has caused controversy in China, where dog hot pot is traditionally popular.
The first draft of a law against animal abuse, aiming to protect animals from being hurt or killed in a cruel manner, has been completed by a group of experts and will be raised for legislation this April, local media reported.
In particular, the draft suggested people caught eating dog or cat meat be jailed for up to 15 days and fined 5,000 yuan ($732.5), while businesses would be fined from 100,000 to 500,000 yuan, according to the Chongqing Evening News.
Debate immediately swirled in Chinese media and Internet forums.
"Eating cats and dogs is a shameless barbarian thing. Anyone with humanity would not kill these loyal friends of ours," a user named "Yuxiang999" posted on Xinhuanet.com.
Pet lovers' associations have sprung up in Chinese cities, with one liberation group last year ramming a truck full of caged cats to rescue them from being shipped to southern restaurants.
While many Chinese enjoy rich dog meat, especially during cold winters, some object to the practice in some regions of beating dogs to death to release the blood into the meat.
The China National Native Produce & Animal By-Products Import and Export Corporation backed the initiative, which it believes will improve overseas perceptions of Chinese exports.
Others insisted a ban on dog and cat meat was unrealistic.
While many Chinese enjoy rich dog meat, especially during cold winters, some object to the practice in some regions of beating dogs to death to release the blood into the meat.
The China National Native Produce & Animal By-Products Import and Export Corporation backed the initiative, which it believes will improve overseas perceptions of Chinese exports.
Others insisted a ban on dog and cat meat was unrealistic.
"Banning such custom by law is inappropriate and unable to work," the Yangtze Evening News quoted Xu Huiqiang, chief of wild animal protection in Jiangsu province, where a dog meat recipe has been listed as a piece of cultural heritage.
An official of Leping, a city that has a traditional catering industry based on dog meat, told the Jiangxi News that the local economy and people's life would be terribly hurt by such a law.
"Cooking them alive must be punished but which meat to eat should be people's own choice," said a commentary on Xinhua Daily in Nanjing. "Some people in China still can't afford meat. We should not blindly copy Western values."
An official of Leping, a city that has a traditional catering industry based on dog meat, told the Jiangxi News that the local economy and people's life would be terribly hurt by such a law.
"Cooking them alive must be punished but which meat to eat should be people's own choice," said a commentary on Xinhua Daily in Nanjing. "Some people in China still can't afford meat. We should not blindly copy Western values."
Source article: http://www.reuters.com/article/idUSTRE60Q23020100127
Tuesday, January 26, 2010
China tightening worries spook investors, hit markets
Source: ReutersFears of more Chinese policy tightening spooked global markets on Tuesday after Beijing ordered some banks to comply immediately with a planned increase in reserves and a report suggested earlier attempts at curbing lending had failed.
The developments prompted concern that the central bank would get more aggressive about reining in credit to fend off inflation and asset bubbles, potentially dragging on growth in the world's third-largest economy.
China implemented a planned increase in required reserves for some banks on Tuesday, sources said, sparking heavy selling of Asian stocks that underscored how sensitive global investors are becoming to Beijing's tightening of monetary policy.
Qu Hongbin, chief China economist with HSBC in Hong Kong, said five major banks had suggested they had received instructions from authorities last week to slow new lending, but not stop it.
"We continue to expect more quantitative tightening measures to cool new lending in the coming months," Qu wrote in a note to clients, adding that he expects a rate increase as early as the second quarter.
"That said, we do not believe that Beijing will slam the brakes on credit growth this year, not least because Beijing also has other more effective policy tools to deal with rising overheating risk -- slowing down the pace of new infrastructure projects," he said.
China has been one of the main drivers of the global economic recovery in the absence of a strong rebound in the West and investors fear a slowdown there would stunt its demand for commodities and other imported goods.
The punitive increase in the amount of reserves some banks have to set aside, which was ordered last week, also came after a newspaper report said China's efforts to curb bank lending were meeting with mixed success, fueling fears that policymakers may take tougher action soon.
Chinese banks extended 1.45 trillion yuan ($212 billion) in new loans during the first 19 days of the year as they scrambled to front-load lending, the 21st Century Business Herald reported, suggesting that Beijing is finding it hard to slow robust credit growth which the government fears could lead to the economy overheating.
China has been one of the main drivers of the global economic recovery in the absence of a strong rebound in the West and investors fear a slowdown there would stunt its demand for commodities and other imported goods.
The punitive increase in the amount of reserves some banks have to set aside, which was ordered last week, also came after a newspaper report said China's efforts to curb bank lending were meeting with mixed success, fueling fears that policymakers may take tougher action soon.
Chinese banks extended 1.45 trillion yuan ($212 billion) in new loans during the first 19 days of the year as they scrambled to front-load lending, the 21st Century Business Herald reported, suggesting that Beijing is finding it hard to slow robust credit growth which the government fears could lead to the economy overheating.
The People's Bank of China has been withdrawing funds from money markets over the past several weeks, and earlier this month started pushing short-term bill rates higher.
High-ranking officials have been warning bankers of the dangers of excessive lending for months, amid reports that some of the money from loans was being used to speculate in property and stock markets.
China's tightening moves come as investors around the world are increasingly worrying that the global recovery may lose momentum as authorities unwind emergency stimulus policies put in place to combat the global recession.
South Korea reported on Tuesday that its recovery lost steam by the end of last year due to waning government spending, and analysts say it now faces a more serious threat if demand ebbs in China, its biggest export market.
Other data showed Britain finally crept out of recession in the fourth quarter, but only just and with far weaker growth than expected.
High-ranking officials have been warning bankers of the dangers of excessive lending for months, amid reports that some of the money from loans was being used to speculate in property and stock markets.
China's tightening moves come as investors around the world are increasingly worrying that the global recovery may lose momentum as authorities unwind emergency stimulus policies put in place to combat the global recession.
South Korea reported on Tuesday that its recovery lost steam by the end of last year due to waning government spending, and analysts say it now faces a more serious threat if demand ebbs in China, its biggest export market.
Other data showed Britain finally crept out of recession in the fourth quarter, but only just and with far weaker growth than expected.
China's central bank surprised markets on Tuesday by leaving yields unchanged in its closely watched one-year bill sale, after increasing them in the two previous auctions. But analysts said it was likely only a pause in tightening aimed at leaving enough cash in the system for the long Lunar New Year holidays which begin in the middle of next month.
"The auction result shows the central bank wants to stabilize expectations a bit to avoid large market swings. So it is pausing the uptrend in bill yields," said Liu Jinyui, analyst at China Merchants Bank in Shenzhen.
World stocks as measured by MSCI fell 0.8 percent but losses were deeper in Asia.
Taiwan's benchmark TAIEX index suffered its biggest one-day drop in six months while the Shanghai Composite and Hong Kong's Hang Seng index both dropped 2.4 percent in a broad Asia equity retreat.
Commodities and higher-yielding currencies also fell while the yen jumped as investors moved into lower-risk assets considered to be safer havens.
"The auction result shows the central bank wants to stabilize expectations a bit to avoid large market swings. So it is pausing the uptrend in bill yields," said Liu Jinyui, analyst at China Merchants Bank in Shenzhen.
World stocks as measured by MSCI fell 0.8 percent but losses were deeper in Asia.
Taiwan's benchmark TAIEX index suffered its biggest one-day drop in six months while the Shanghai Composite and Hong Kong's Hang Seng index both dropped 2.4 percent in a broad Asia equity retreat.
Commodities and higher-yielding currencies also fell while the yen jumped as investors moved into lower-risk assets considered to be safer havens.
Reuters reported last week that CITIC Bank, the country's seventh-largest bank, and Industrial and Commercial Bank of China (ICBC), the top lender, had been instructed to raise their reserve ratios after excessive lending.
AIM IS TO SLOW LENDING, NOT STOP IT
Chinese media reported that other big lenders had suspended lending in some areas of the country.
The Guangzhou Daily said the Bank of China had suspended lending in the southern city of Guangzhou, and that some branches of China Construction Bank and Agricultural Bank of China had also stopped making new loans for now.
The crackdown on banks followed the PBOC's first moves to wind down the ultra-loose monetary conditions that had helped fuel the economy's rapid rebound, which in turn buoyed the economies of many of its Asian neighbors.
It raised overall bank reserve requirements on January 12, a move that went into effect January 18, but some analysts noted those moves may have only prompted some lenders to push out loans even faster ahead of implementation of the measures.
Many analysts expect the central bank to resume gradual tightening following the Lunar New Year holidays in mid-February, eventually leading to increases in benchmark interest rates.
AIM IS TO SLOW LENDING, NOT STOP IT
Chinese media reported that other big lenders had suspended lending in some areas of the country.
The Guangzhou Daily said the Bank of China had suspended lending in the southern city of Guangzhou, and that some branches of China Construction Bank and Agricultural Bank of China had also stopped making new loans for now.
The crackdown on banks followed the PBOC's first moves to wind down the ultra-loose monetary conditions that had helped fuel the economy's rapid rebound, which in turn buoyed the economies of many of its Asian neighbors.
It raised overall bank reserve requirements on January 12, a move that went into effect January 18, but some analysts noted those moves may have only prompted some lenders to push out loans even faster ahead of implementation of the measures.
Many analysts expect the central bank to resume gradual tightening following the Lunar New Year holidays in mid-February, eventually leading to increases in benchmark interest rates.
Source article: http://www.reuters.com/article/idUSTRE60P19P20100126
Google May Keep Some China Offices If Local Site Shut, AP Says
Source: Bloomberg NewsGoogle Inc.’s in talks with the Chinese government to keep its research center in Beijing and its Chinese sales offices open in the event the domestic search- engine site is shut down, the Associated Press reported, citing a person it didn’t identify.
The U.S. Internet company is also seeking to maintain its mobile-phone business in China, AP said. Google’s future plans in the country depend on whether the company’s decision to end censorship of search results in China would jeopardize local employees, the report said.
Google said on Jan. 12 that it may stop operating its Google.cn site and close its offices in China, pending talks with the government on the company’s plan to stop censoring search results. The U.S. Internet operator said the review of its Chinese operations follows cyber attacks from the country targeted at obtaining proprietary information and personal data of some users.
Courtney Hohne, a Singapore-based spokeswoman at Google, declined to comment on the report.
Source article: http://www.bloomberg.com/apps/news?pid=20601089&sid=a4UC3Zqr1qjk
Apple-operated stores to debut in Shanghai
Source: Shanghai DailyApple Inc will open two directly-operated retail stores in Shanghai - for the first time - this year, including one in the city's tallest building, Shanghai Daily learned yesterday.
Apple's decision to open the stores to penetrate the local market was confirmed to the newspaper by Huang Yuna, a spokesperson for Apple China.
"One store will open as early as spring," said Huang, who declined to reveal more details such as the locations and size of the stores.
One difference between the Apple-owned stores and those selling Apple products is that consumers can receive free one-to-one training and technical support, according to the technology giant.
One of the Apple stores will be located in the Shanghai World Financial Center in Lujiazui area in Pudong New Area.
The other Apple store will be in Huaihai Road M., sources in the property market told Shanghai Daily.
The expansion of retail firms, including Apple, will help boost the local real estate market, especially in the commercial property sector, said a retail source who declined to be identified.
The new stores will help Apple to penetrate the Chinese market, the No. 1 for phones globally and the No. 2 for personal computers worldwide, analysts said.
Apple already has a store on the Chinese mainland when it opened an outlet in Sanlitun in Beijing last year. It plans to open a second directly-operated store in the capital this year.
Apple debuted its iPhone in China last year in a tie-up with China Unicom, the country's No. 2 mobile phone operator.
Source article: http://www.china.org.cn/business/2010-01/26/content_19309063.htm
Lotus marks first premier outlet
Source: Shanghai DailyLotus Supermarket yesterday opened its first premier store on China's mainland in Shanghai as it taps booming consumption and the growing ranks of wealthy individuals.
The 11,800-square-meter "five-star" supermarket is located in Super Brand Mall in Pudong New Area, and more than 40 percent of its 40,000 products are imported. The supermarket also sells 1,000 varieties of imported wines as well as fresh seafood.
"Lotus will actively expand the presence of such premier supermarkets in first and second-tier cities to meet the rising consumer demand," said Joe Zhou, chief operating officer and chief merchandize officer of Lotus, whose parent is Charoen Pokphand Group, one of Thailand's biggest conglomerates.
Officials of Lotus Supermarket said they are eying commercial areas, high-end business zones or luxury communities in major cities to open more premier stores.
"The retail market is shifting its focus from rampant expansion in stores to seeking better profitability," TX Investment Consulting Co said. "And China's consumer market will brace for a strong expansion momentum this year amid rapid economic growth."
China's retail sales rose 15.5 percent from a year earlier to 12.5 trillion yuan in 2009.
Lotus' rivals such as Hutchinson Whampoa, Park N Shop and Hualian Hypermarket entered the premier market segment last year.
China's Suguo Reports 10% Growth In 2009
Source: China Retail NewsNanjing-based supermarket chain Suguo has announced that its sales increased by 10% to CNY33 billion in 2009, despite the global economic crisis.
At the same time the company maintained the rate of its network expansion in 2009, opening 120 new outlets and increasing its total number of retail sites to 1,900.
According to Ma Jialiang, the chairman and general manager of Suguo, facing the unfavorable market environment, enterprises should turn challenges into opportunities. He added that by sticking to the promise of "no layoffs, no salary reduction", Suguo had stimulated the enthusiasm of its 50,000 employees and promoted the rapid recovery of the company.
Ma told local media that the company plans to add Jiangxi and Hubei into its retail network.
Monday, January 25, 2010
China steps up defense of Internet controls
Source: ReutersChina widened its attack against U.S. criticisms of Internet censorship on Monday, raising the stakes in a dispute that has put Google in the middle of a political quarrel between the two global powers.
China has defended its curbs on the Internet nearly two weeks after the world's biggest search engine provider, Google Inc., threatened to shut down its Chinese Google.cn site after a severe hacking attack from within China.
The dispute could narrow room for Beijing and Washington to back down quietly and focus on other disputes such as trade, currency, human rights and U.S. weapons sales to Taiwan.
"The more this case takes on high-level political import for the Chinese government, the more likely it is to stick to its guns," said David Wolf, president of Wolf Group Asia, an advisory firm covering Chinese media and telecommunications.
"The Chinese government can't be seen as backing down on such a fundamental issue," said Wolf.
The dispute could narrow room for Beijing and Washington to back down quietly and focus on other disputes such as trade, currency, human rights and U.S. weapons sales to Taiwan.
"The more this case takes on high-level political import for the Chinese government, the more likely it is to stick to its guns," said David Wolf, president of Wolf Group Asia, an advisory firm covering Chinese media and telecommunications.
"The Chinese government can't be seen as backing down on such a fundamental issue," said Wolf.
U.S. Secretary of State Hillary Clinton last week urged China and other authoritarian nations to pull down Internet censorship, prompting scathing commentary in Chinese papers.
The White House backed Google, while China accuses Washington of using the Internet for its own aims.
"This year, we're seeing problems over trade, the Dalai Lama, and U.S. weapons sales to Taiwan coming to the surface," said Jin Canrong, an international relations expert at Renmin University.
"The politicization and ideological turn of the Google case could make it more difficult to work together. The basic need for cooperation, economically and diplomatically, hasn't changed, but each of these issues could disrupt cooperation from day to day."
The White House backed Google, while China accuses Washington of using the Internet for its own aims.
"This year, we're seeing problems over trade, the Dalai Lama, and U.S. weapons sales to Taiwan coming to the surface," said Jin Canrong, an international relations expert at Renmin University.
"The politicization and ideological turn of the Google case could make it more difficult to work together. The basic need for cooperation, economically and diplomatically, hasn't changed, but each of these issues could disrupt cooperation from day to day."
In coming months, U.S. President Barack Obama may meet the Dalai Lama, Tibet's exiled Buddhist leader who Beijing considers a separatist. Washington has also unveiled arms sales to Taiwan, the self-ruled island Beijing regards as a renegade province.
In Riyadh, the CEO of Cisco Systems Inc, John Chambers, told reporters he was optimistic that Google's dispute in China would be resolved through "give and take.
Chinese Human Rights Defenders said its website and four other activist sites were hit by denial of service attacks on Jan 23-24. It called the Chinese government the most likely culprit.
DEFENSE
In Riyadh, the CEO of Cisco Systems Inc, John Chambers, told reporters he was optimistic that Google's dispute in China would be resolved through "give and take.
Chinese Human Rights Defenders said its website and four other activist sites were hit by denial of service attacks on Jan 23-24. It called the Chinese government the most likely culprit.
DEFENSE
China's State Council Information Office said the nation "bans using the Internet to subvert state power and wreck national unity, to incite ethnic hatred and division, to promote cults and to distribute content that is pornographic, salacious, violent or terrorist."
"China has an ample legal basis for punishing such harmful content, and there is no room for doubting this. This is completely different from so-called restriction of Internet freedom," an unnamed spokesperson said in comments issued on the central government's website (http://www.gov.cn/).
Although the comments made no direct mention of Google or Clinton, the State Council Information Office is the cabinet arm of China's propaganda apparatus, steered by the Communist Party, and is one of several agencies behind Internet policy.
China's Education Ministry published a notice on Monday reminding schools they should be monitoring and filtering web content, as well as teaching "Internet morality."
"China has an ample legal basis for punishing such harmful content, and there is no room for doubting this. This is completely different from so-called restriction of Internet freedom," an unnamed spokesperson said in comments issued on the central government's website (http://www.gov.cn/).
Although the comments made no direct mention of Google or Clinton, the State Council Information Office is the cabinet arm of China's propaganda apparatus, steered by the Communist Party, and is one of several agencies behind Internet policy.
China's Education Ministry published a notice on Monday reminding schools they should be monitoring and filtering web content, as well as teaching "Internet morality."
China's Ministry of Industry and Information Technology rejected suggestions the government was behind the sophisticated hacker attacks described by Google.
China has jailed dissidents and Tibetan activists who used the Internet to challenge Communist Party policies and one-party rule. Prominent dissident, Liu Xiaobo, was jailed for 11 years in December on charges of "inciting subversion," largely through essays he published on overseas Internet sites.
The Communist Party mouthpiece, the People's Daily, on Sunday said United States used social media like Twitter and YouTube, to foment Iran unrest. Both are blocked in China.
On Monday, the paper called Washington hypocritical, noting U.S. laws restrict images and words that can be seen by children.
China has jailed dissidents and Tibetan activists who used the Internet to challenge Communist Party policies and one-party rule. Prominent dissident, Liu Xiaobo, was jailed for 11 years in December on charges of "inciting subversion," largely through essays he published on overseas Internet sites.
The Communist Party mouthpiece, the People's Daily, on Sunday said United States used social media like Twitter and YouTube, to foment Iran unrest. Both are blocked in China.
On Monday, the paper called Washington hypocritical, noting U.S. laws restrict images and words that can be seen by children.
"This 'Internet freedom' that is being promoted everywhere is nothing more than a foreign policy tool, a fantasy of freedom," said a commentary in the paper.
Google said it will negotiate for an unfiltered search engine, but firms in sensitive sectors like the Internet or media find politics are never far from the negotiating table.
"Google may look back and see it pursued an ill-advised course by bringing in the U.S. government in such high-profile way," said Wolf, the industry consultant.
Google said it will negotiate for an unfiltered search engine, but firms in sensitive sectors like the Internet or media find politics are never far from the negotiating table.
"Google may look back and see it pursued an ill-advised course by bringing in the U.S. government in such high-profile way," said Wolf, the industry consultant.
Source article: http://www.reuters.com/article/idUSTRE60L1DK20100125
Melamine-tainted products go off shelves
Source: By Wang Yan (China Daily)Three companies have been found selling milk products tainted with melamine, the industrial chemical responsible for the deaths of six children and injuring 300,000 in 2008.
Three batches of milk products have been ordered off shelves by the health department in Guizhou province because they contain melamine, local media reported.
These products are: A batch of products produced by the Shandong Zibo Lusaier Dairy Company Ltd on April 25, 2009; a batch of popsicles produced by the Liaoning Tieling Wuzhou Food Company Ltd on April 9, 2009; and a batch of popsicles produced by the Laoting Kaida Refrigeration Plant at Tangshan, Hebei province on March 19, 2009.
It follows the country's most notorious food scandal in Sept 2008, when the chemical melamine was found in the milk products of 22 dairy companies around the country. The industrial chemical causes kidney stones and kidney failure among children.
The National Business Daily reported that melamine-tainted products were found and banned in Sichuan province and Jiangsu province last December.
An official who participated in the investigation in Mianyang of Sichuan said a government body in Beijing ordered the investigation.
Wang Dingmian, former chairman of the Guangdong Provincial Dairy Association, said the products likely contained tainted milk recalled after the 2008 scandal but which somehow made its way back into the market.
"After the 2008 scandal, most tainted milk products were recalled. However there were still some leftovers in the dealers' hands that nobody cared about. The problems were not totally solved. From this point, it's inevitable to see new problems popping out," he said in an interview yesterday.
According to local media reports, the three companies said their products contain melamine because they bought milk powder as a raw material to use in their products.
"The companies were just shirking their responsibilities. The companies should have been required to test each and every batch of milk powder they bought," Wang said.
Wang said the latest scandal exposed weak government regulation of the market because it involved leftover tainted milk.
"The government should be more responsible and avoid bureaucracy. You can't just assume that everything is fine," he said.
"The companies were just shirking their responsibilities. The companies should have been required to test each and every batch of milk powder they bought," Wang said.
Wang said the latest scandal exposed weak government regulation of the market because it involved leftover tainted milk.
"The government should be more responsible and avoid bureaucracy. You can't just assume that everything is fine," he said.
Internet companies foresee a future in mobiles
Source: By Chen Limin (China Daily)China's Internet companies are excited at the prospect of increasing their presence on mobile platforms.
The sector is enjoying rapid development following the introduction of third generation (3G) networks. But before they can replicate their success or experiences with traditional Internet platforms, they are having to cope with new challenges.
Tencent Holdings, the owner of QQ, the most popular instant messaging (IM) service in China, said it had to make a painstaking turnaround to meet the needs of mobile Internet users.
"In the past, we always wanted our products to be fancy because we believed this would create the best user experience," said a manager from Tencent who declined to be named. "But later we found that things worked completely differently in the mobile Internet world."
Though users of the mobile Internet and PC-based Internet have an overlap of about 50 to 60 percent, according to research firm Analysys International, mobile Internet users tend to use quick and convenient services because they usually access the Internet for very short time periods.
"As a result we have to let our products 'lose weight' now, to make them as simple and easy to use as possible, which was a hard lesson to learn," added the Tencent manager.
Tencent entered the mobile Internet five years ago and has by now put most of its PC-based Internet services on the mobile platform, including the IM service QQ, a mobile portal and mobile gaming. Its mobile QQ had about 81.2 million active users over the last quarter of 2009, ranking it top in the mobile IM market, according to Analysys International.
To gain an upper hand in the mobile market, Internet companies have to largely increase their research and development input though most of them are still looking for a way to make profits.
Alipay, the e-payment arm under the Alibaba Group, said the company spent three to five million yuan every year just in developing client software for different mobile phone operating systems.
"To come out with suitable solutions for each different operating system has become a big technological challenge for us," said Chen Lei, director of the wireless department at Alipay.
The number of China's mobile Internet users increased by 120 million to reach a total of 233 million in 2009, according to China Internet Network Information Center.
Subtle relations
Internet companies may dominate the traditional Internet, but in the mobile industry they have to work with other leading characters and sometimes play a supporting role.
These companies have to work with not only content providers but also cell phone makers and telecom carriers, which link their products and Internet users.
"Telecom carriers, to a large extent, influence the way we do business," said Wang Xiaochuan, chief technology officer of Sohu, one of the largest portals in China, referring to the resources carriers control and their dominant position in telecommunications networks.
The company is considering launching a media platform integrating different kinds of information, and is in talks with carriers about fee charging.
These companies have to work with not only content providers but also cell phone makers and telecom carriers, which link their products and Internet users.
"Telecom carriers, to a large extent, influence the way we do business," said Wang Xiaochuan, chief technology officer of Sohu, one of the largest portals in China, referring to the resources carriers control and their dominant position in telecommunications networks.
The company is considering launching a media platform integrating different kinds of information, and is in talks with carriers about fee charging.
"If we are to charge fees for the service, we have to consider how carriers' charging systems work and how we should design our products to fit them," said Wang.
Tencent said it had to closely keep pace with carriers when launching their products.
"There are growing needs of our users, but sometimes we have to constrict the needs a little to follow carriers' development steps," said the manager from Tencent. "We will not make a new application available on all operating systems and different types of cell phones all at once because this may cause a big burden to the telecom networks. We have to do it step by step."
Tencent said its mobile QQ users more than doubled earlier last year because the carriers changed their policy for GPRS Internet connection, which largely reduced the cost of the service.
"It (the change) really stimulated users' needs," said the manager.
Telecom carriers can help Internet companies gain more market share, but the two may also generate competition.
Fetion, an IM service launched by China Mobile in 2006, claimed a 21.6 percent share of the mobile IM market, only behind QQ's 59.6 percent.
Tencent said it had to closely keep pace with carriers when launching their products.
"There are growing needs of our users, but sometimes we have to constrict the needs a little to follow carriers' development steps," said the manager from Tencent. "We will not make a new application available on all operating systems and different types of cell phones all at once because this may cause a big burden to the telecom networks. We have to do it step by step."
Tencent said its mobile QQ users more than doubled earlier last year because the carriers changed their policy for GPRS Internet connection, which largely reduced the cost of the service.
"It (the change) really stimulated users' needs," said the manager.
Telecom carriers can help Internet companies gain more market share, but the two may also generate competition.
Fetion, an IM service launched by China Mobile in 2006, claimed a 21.6 percent share of the mobile IM market, only behind QQ's 59.6 percent.
"The carrier doesn't want to see its domains, such as short message services and voice calls, affected by the popular Fetion, so it had to launch a similar service to hold on to its users and keep its position in the IM market," said Fang Li, an analyst with Analysys International.
Despite restrictions, Internet companies are likely to see a more open mobile market.
"Take the channels for Internet companies' applications for example," said Fang. "Two or three years ago, these applications largely depended on the carriers' channels, but now there are more and more free WAP channels and those offered by cell phone makers, such as Nokia's Ovi Store, so the carriers' influence becomes less, which will lead to a more open market in mobile Internet," said Fang.
Despite restrictions, Internet companies are likely to see a more open mobile market.
"Take the channels for Internet companies' applications for example," said Fang. "Two or three years ago, these applications largely depended on the carriers' channels, but now there are more and more free WAP channels and those offered by cell phone makers, such as Nokia's Ovi Store, so the carriers' influence becomes less, which will lead to a more open market in mobile Internet," said Fang.
Taobao.com, BOC Launch Joint Credit Card
Source: China Tech NewsChinese Internet shopping website Taobao.com has announced that it has cooperated with its sister company Alipay.com and Bank of China in the launch of a joint-brand credit card.
This is the first time for Taobao.com and Alipay.com, the two subsidiaries of China's B2B e-commerce group Alibaba, to enter the Chinese credit card sector.
With the cooperation of the three parties, Taobao.com's users who apply for this new credit card can bind their Alipay accounts with it. By doing this, these users can directly pay with their credit cards by merely providing their passwords when they want to complete an Internet payment via Alipay. This new joint-brand credit card aims to improve the Internet payment experience of users in China.
In addition, the holders of this BOC-Taobao credit card will be free from the limit of CNY500 for a single Internet payment. The triple financial guarantee mechanism established by Taobao.com, Alipay.com, and BOC will also ensure the smooth transaction of large sum of money.
According to the performance report published by Taobao.com, by the first half of 2009, the company had gained 145 million registered members, accounting for 43% of the total Chinese netizens. The launch of this BOC-Taobao credit card is expected to promote and guarantee the development of Internet payment and to stimulate the healthy growth of the general e-commerce environment in China.
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