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China's retail investors to lead potential demand for industrial metal in 2017 - Report

According to an article by the Australian Financial Review, the demand for industrial metals is expected to surge next year, with China maintaining its role in defining the prices. As per report, the U-turn in China's economic policy last year has brought changes to the industrial metal sector, exceeded expectations, and affected the price of precious metals.

Next year, it is expected that the country will bring more surprises to the sector. At the same period last year, copper was traded in London at USD 4500 per ton, the lowest level since the global financial crisis of 2008-2009 while iron ore also dropped below USD 40 per ton for the first time.

China said that the "supercycle" has ended to give way to fixed asset investment, which would become the "new normal" to be determined by consumers rather than the construction business.

But the country changed its policy and reverted to its so-called "old normal," where government poured in money to traditional investments in construction and property development. By February, investment in real estate, which had been slowing for two years, picked up and reversed the trend. At about the same time in March, the metals index at the London Metal Exchange bottomed out as iron ore traded at above USD 60 per tonne.

On base metals, retail investors made a similar call in the past eight months. Last month, the volume of aluminum traded an all-time high record on the Shanghai futures Exchange. The second highest on record were zinc volumes and tin.

In November, more than 10 million tons of base metals were traded, which equal almost the entire world market's annual tonnage. All metals have also recorded sharp price increases. But again, Chinese authorities raised the margins and trading fees to limit the retailers.

Members of the ShFE were also cautioned to be "well prepared for risk prevention" as well as to "remind investors to prudentially judge information from the market and make rational investment."

The report said that the price of metal, which was once driven by Chinese fundamentals, is now shaped by both fundamentals and funds.

However, the effects of China's policy on providing stimulus to real property sector resulted in property bubbles in top cities.

But the government is now working to control its effects, the report said.

A statement issued by top policymakers at the end of the Central Economic Work Conference thus read: "Houses are for people to live in, not for people to speculate."

The government's campaign to curb air pollution caused by its huge industrial production sector is also seen as a new potential driver for metals prices.

Last week, authorities asked 23 cities in northern China to issue red alerts as inspection teams scoured the country, closing and giving remedial actions to pollution offenders.

Source : Yibada
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China fines 605 power plants CNY 328 million for environmental breaches

Reuters reported that companies running 605 Chinese coal-fired power plants have been fined a total of CNY 328 million ($47 million) by the country's economic planning agency for breaching environmental rules and falsifying data to claim green subsidies.

The National Development and Reform Commission (NDRC) said that excessive levels of pollutants such as sulfur dioxide, nitrogen oxide and dust were released by the power plants in question.

The NDRC in a statement said that a subsidiary of China's power giant Shenhua Group [SHGRP.UL] was fined 52.14 million yuan and a plant controlled by China Guodian Corporation had to pay 7.73 million yuan.

While the NDRC has fined power producers before for breaching environmental rules it has not previously published the size of the penalties.

Source : Reuters
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China starts 2017 engulfed in smog, issues pollution alerts - Report

Reuters reported that heavy smog that blanketed parts of China over the weekend cleared somewhat on Monday, with flights in Beijing back to normal, but it was likely only to be a brief respite with more choking smog expected to return to the wintry north within 24 hours.

Weather forecasts on Monday showed the smog would return to Beijing and nearby Tianjin city on Tuesday. It was expected to persist until Thursday in Hebei, the heavily industrialized province that surrounds the capital, and Henan and Shandong provinces, as the region battles freezing temperatures.

Severe pollution is forecast to persist in the region for three to seven days, the official Xinhua news agency reported.

Authorities have been issuing smog alerts across the north since mid-December, prompting orders for hundreds of factories to scale back production or close outright and for restrictions on motorists to cut emissions.

Pollution alerts are common in northern China, especially during winter when energy demand, much of it met by coal, soars.

Electrical generating plants burn coal and much of the heavy industry, including steel-making, is concentrated in northern provinces.

Smog above WHO recommended levels
A pollution index that measures the average concentration of small breathable particles, known as PM2.5, dropped to just over 100 micrograms per cubic metre in Beijing early on Monday from more than 500 on Sunday night. The safe recommended level of PM2.5 is 10 micrograms per cubic metre, according to the World Health Organization.

A customer service staff member at the Beijing Capital International Airport said flights were returning to normal on Monday after smog on Sunday caused hundreds of flights to be cancelled.

On Monday, the Beijing government maintained its orange alert for heavy pollution and a ban on heavy-duty construction trucks from using the roads.

An orange alert is the second-highest level in a four-tier pollution warning system adopted by Beijing when China, worried that its heavy industrial past was tarnishing its global reputation and holding back development, declared a "war on pollution" in 2014.

Pressure to tackle pollution
Despite that declaration, public anger is mounting about pollution and what many Chinese see as government talk, but little action, to end it. That anger has occasionally spilled over into protests.

China's educated middle-class is increasingly intolerant of the bad air, which some blame on lack of enforcement by government.

There is also pressure on China to move generation away from coal to meet its climate change commitments

Late on Sunday, the Ministry of Environmental Protection said 62 northern cities had issued yellow, orange or red alerts.

Some highways to Beijing and Tianjin were re-opened as motorists headed home at the end of the long weekend, state television reported later on Monday. But 20 highways remained closed in Shandon province, as heavy smog persisted.

Source : Reuters
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China to become net importer of some rare earths

Mining.com reported that China produces more than 85% of the global supply of rare earths and the country is also the largest consumer. After hitting the stratosphere in 2011 prices have been decimated. And a surge in exports from China since a ruling by the WTO deemed the country's export quotas illegal and particularly after the lifting of exports tariffs in May last year, caused a further slide.

The price index for the 17 elements compiled by China's Rare Earth Industry Association hit six-year lows hit in September 2015 and have been bobbing around these levels since then.

A new report by Adamas Intelligence, a rare metal research firm, says since 2011, the market has suffered large-scale demand destruction. "By 2025 China’s domestic demand for neodymium oxide for permanent magnets alone is poised to exceed global production"

According to the Adamas outlook for rare earth demand from 2016 through 2025 over the past five years upwards of 30,000 tonnes of annual rare earth oxide demand were lost due end-users’ growing concerns over supply security. On top of that more than 20,000 tonnes were lost as a result of the ongoing phase out of several mature technologies, such as fluorescent lamps, NiMH batteries, and hard disk drives used in PCs.

According to the authors following the lengthy and painful adjustment, the REE market will return to strong global demand growth for a number of rare earth elements including neodymium, praseodymium, dysprosium, and lanthanum. The resulting rise in price will help "sustain the profitability and growth of today’s dominant producers, and incentivize continued investment in exploration and resource development globally":

REE demand will boom from 2020 onwards as growth rates of top end-use categories including electric vehicles, wind turbines and other hi-tech applications accelerate. Among the high-level findings of the report:

1. Government-led initiatives will fuel over half of all new demand growth through 2025

2. Global rare earth demand has become inextricably and inadvertently linked to government policies, regulations, mandates, and initiatives concerning electric mobility, clean power generation, energy efficiency, greenhouse gas emissions, urbanization, and industry modernization. Looking ahead, we forecast that over 50% of all new global rare earth demand growth over the coming ten years will be directly or indirectly driven by government-led actions.

3. China will become a net importer of certain rare earths by 2025

4. As China’s insatiable demand for rare earth elements continues to grow over the coming ten years, China’s domestic production will struggle to keep up in all scenarios examined herein, leading the nation to become a net importer of certain rare earths at the expense of the rest of the world’s supply security. In fact, by 2025 China’s domestic demand for neodymium oxide for permanent magnets alone is poised to exceed total global production of neodymium oxide by 9,000 tonnes in our base case scenario, highlighting the imminent need for additional sources of supply.

5. The market calls for development of a new mine every year by 2025

6. From 2016 through 2020 demand for neodymium, praseodymium, dysprosium, and lanthanum will grow relatively strongly, but, from 2020 through 2025 the rate of global demand growth for these rare earths will accelerate year-over-year, resulting in major annual demand increases by 2025 that can only be satisfied by the continuous and accelerated development of new mines.

7. In-lieu of conventional sources of capital, China will become a major investor in development of foreign rare earth resources

8. As the supply and demand sides of the global rare earth market continue to evolve on dichotomous paths, and China comes to terms with the fact that domestic demand will soon outgrow domestic production, we believe China’s investments in development of foreign rare earth resources will rapidly accelerate should conventional sources of capital continue to ignore the rare earth industry. Evidence of this likely outcome is already emerging.

Source : Mining.com
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How China plans to take lead in Global Gold Market

Sputnik reported that status as one of the world’s biggest bullion importers, participation in the gold fix at the London exchange and a plan to establish a jewelry gold investment center in Shanghai has turned China into one of the leading players in the global gold market in 2016.

Gold entered the New Year in a downward trend. In 2016, prices of the yellow metal have continued to drop, for the fourth year in a row. The last time such a trend was registered was between 1988 and 1992.

A drop in global gold prices was advantageous for China, the world’ biggest importer of gold bars, gold investment coins and refined gold. At the same time, by the end of 2016 gold prices were on the rise, with an ounce adding nearly six percent in dollar equivalence. In mid-2016, bullion prices jumped by 25% and higher. Then, gold dropped, but the dollar-denominated yield of gold is still higher than that of dollar deposits in banks.

Thus, China found itself in a two-dimensional situation. On the one hand, Chinese gold buyers can now easily enter the global market due to the decrease in prices. On the other hand, gold holders, including the People’s Bank of China and private customers, can take advantage of the slow recovery in the prices.

Mr Andrei Vyazovsky vice president of Russian gold investment company Zoloto MD said that in a bit to curb capitals outflow from China, the government restricted gold imports. Banks licensed to perform operations with the precious metal have faced problems with importing it. Thus, the world’s biggest consumer of gold can influence global prices.

Mr Vyazovsky told Sputnik Chinese that "Those restrictions alongside a currency reform in India resulted in a drop in global gold prices. They dropped below USD 1,200 per an ounce and settled at USD 1,130. At the same time, what Beijing is doing is not an official financial policy. The measure is applied on a case by case basis. It seems that Chinese authorities want to analyze the impact of those quotas on capital outflows.”

However, the expert suggested that Beijing is likely to ease or lift the restrictions in 2017. He pointed out that "The Chinese government eyes a global gold trading center in the country. Moreover, the Shanghai Gold Exchange is ramping up. So, any administrative restrictions would have a negative impact on those plans.”

Source : Sputnik
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McDonald's richt franchise-organisatie in China op

Wordt de grootste buiten Verenigde Staten.

(ABM FN-Dow Jones) McDonald's gaat de grootste franchise-organisatie buiten de Verenigde staten opzetten en stoot een groot deel van zijn belang in zijn Chinese operaties daarmee af. Dit heeft de Amerikaanse snackketen maandag bekend gemaakt.

McDonald's richt daartoe samen met het Chinese CTIC Limtited, CITIC Capital Holdings en investeerder The Carlyle Group een partnership en een bedrijf op die fungeren als de verantwoordelijke overkoepeling voor de activiteiten van McDonald's in China en Hong Kong voor een periode van twintig jaar.

De totale investering door het nieuw bedrijf omvat tot 2,08 miljard dollar, te financieren door middel van cash en nieuwe aandelen. De aandeelhoudersverhouding is als volgt: CITIC verwerft met CITIC Capital een controlerend belang van 52 procent en Carlyle 28 procent. McDonald's houdt dan de resterende 20 procent.

De ambitie is de groei te genereren via de opening van nieuwe vestigingen, met name in middelgrote steden. De aandacht gaat uit naar nieuwe menu's, comfort, online en snelheid. Voor de komende vijf jaar ligt de opening van 1.500 restaurants in de planning.

Eind vorig jaar had McDonald's 2.400 restaurants in China en meer dan 240 in Hong Kong.

De verwachting is dat de deal, in afwachting van goedkeuring door de relevante autoriteiten, halverwege dit jaar wordt afgerond.

Het aandeel McDonld's sloot vrijdag 0,9 procent hoger op 120,76 dollar.

Door: ABM Financial News.

info@abmfn.nl

Redactie: +31(0)20 26 28 999

Copyright ABM Financial News. All rights reserved

(END) Dow Jones Newswires
DeZwarteRidder
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China minder in trek
Gisteren, 18:35 Marcel Vink

PEKING - Een fors groeiend aantal buitenlandse bedrijven trekt zich terug uit China. Machtige binnenlandse concurrentie, stijgende kosten, rechtszaken, censuur en vervuiling: ze raken het voorheen ‘beloofde land’ steeds meer beu.
Gisteren werd bekend dat McDonald's een belang van 80% in zijn Chinese activiteiten verkoopt. De Amerikaanse hamburgergigant krijgt van een consortium investeerders, geleid door de Chinese staatsmultinational Citic, bijna €2 miljard voor zijn bedrijvigheid in China en Hongkong. Citic krijgt een meederheidsbelang van 52%.
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China doet ’marteltherapie’ in de ban
Vandaag, 00:09

PEKING - Chinese tieners met een internetverslaving mogen in de toekomst niet meer worden behandeld met stroomschokken, klappen of andere gewelddadigheden. De Chinese autoriteiten komen volgens staatskrant The People’s Daily met nieuwe wetgeving om dergelijke uitwassen aan banden te leggen.

China werd vorig jaar opgeschrikt door een schandaal rond een behandelcentrum voor internetverslaafden, waar duizenden patiënten met elektroshocktherapie werden behandeld. Een zestienjarig meisje vermoordde haar moeder nadat ze in het centrum was blootgesteld aan de hardhandige behandelmethoden.

De autoriteiten kwamen deze week met een conceptwet om dergelijke praktijken te verbieden, bericht de staatskrant dinsdag (lokale tijd). De nieuwe wetgeving bevat ook maatregelen tegen internetverslaving. Zo mogen tieners mogelijk op bepaalde tijdstippen geen videospelletjes meer spelen via internet.
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Correctie: Chinese producentenprijzen stijgen flink door

Stijging van 5,5 procent in december beter dan verwacht.

(ABM FN-Dow Jones) De Chinese producentenprijzen zijn in december op jaarbasis sterker gestegen dan verwacht. Dit bleek dinsdag uit cijfers van het Chinese bureau voor de statistiek.

De producentenprijzen namen in december op jaarbasis met 5,5 procent toe, waar de stijging in november nog 3,3 procent bedroeg.

Economen rekenden voor december op een stijging van de producentenprijzen met 4,8 procent.

Correctie: om in de eerste en laatste alinea de juiste maand te vermelden.

Door: ABM Financial News.

info@abmfn.nl

Redactie: +31(0)20 26 28 999

Copyright ABM Financial News. All rights reserved

(END) Dow Jones Newswires
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Chinese consumentenprijzen stijgen

Consumentenprijzen in december 2,1 procent hoger.

(ABM FN-Dow Jones) De Chinese consumentenprijzen zijn in december op jaarbasis in een hoger tempo gestegen dan in november. Dit bleek dinsdag uit cijfers van het Chinese bureau voor de statistiek.

In december bedroeg de inflatie 2,1 procent op jaarbasis. Geraadpleegde economen gingen ook uit van een prijsstijging van 2,1 procent. In november lag de inflatie nog op 2,3 procent en in oktober 2,1 procent.

Op maandbasis namen de consumentenprijzen in december met 0,2 procent toe, na een stijging met 0,1 procent in november.

Door: ABM Financial News.

info@abmfn.nl

Redactie: +31(0)20 26 28 999

Copyright ABM Financial News. All rights reserved

(END) Dow Jones Newswires
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USITC will expedite Sunset review on Pure Magnesium from China

The US International Trade Commission has voted to expedite its five-year review concerning the antidumping duty order on Pure Magnesium from China. As a result of the vote, the Commission will conduct an expedited review to determine whether revocation of the order would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.

The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the Department of Commerce and the USITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies (Commerce) and of material injury within a reasonably foreseeable time.

The Commission’s notice of institution in five-year reviews requests that interested parties file with the Commission responses that discuss the likely effects of revoking the order under review and provide other pertinent information. Generally within 95 days from institution, the Commission will determine whether the responses it has received reflect an adequate or inadequate level of interest in a full review. If responses to the USITC's notice of institution are adequate, or if other circumstances warrant a full review, the Commission conducts a full review, which includes a public hearing and issuance of questionnaires.

Source : Strategic Research Institute
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Chinese tin concentrate imports rise
Published on Tue, 10 Jan 2017

Economic Calendar reported that LME Tin prices increased a bit on Thursday, but overall the commodity was feeling pressure in the first trading week of the year, and has fluctuated in a narrow range. Thursday’s upside came from a slight pullback in the value of the US dollar, while China’s higher-than-expected manufacturing PMI released on Wednesday added extra impetus to the ascent.

Tin experienced a positive performance in 2016 amid solid demand from China with idled domestic tin capacity resulting in the need for higher imports. However, concerns are that China will start to ramp up its idled capacity, and that will change the market.

According to Chinese Customs authorities, in November China imported more tin ore and concentrates while imports of refined tin declined significantly. In November, the gross weight of tin ore and concentrate imports by the country was 44,533 tonnes with an estimated 5,300 tons contained tin, up by 17% year over year. Refined tin imports plunged by 36% year over year with 8,396 tonnes imported in November 2016 compared to imports of 13,118 tonnes in November 2015. China exported a negligible amount of tin in November.

The primary supplier of ore and concentrates was Myanmar with the country accounting for nearly 99.7% of the Chinese imports during the month. Looking forward, imports from Myanmar are expected to decline as China restarts idled mine capacity. When it comes to the dramatic fall in refined imports, price differentials between China and the rest of the world are cited as the reason for the huge swing. China exported a negligible amount of tin during the month.

Source : Economic Calendar
DeZwarteRidder
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Winnen in China is alleen voor Chinezen weggelegd

Zakendoen in China blijft lastig voor buitenlandse bedrijven. Na een twee jaar durende concurrentiestrijd met een lokale rivaal gooide Uber China maandag de handdoek in de ring. Deze vijf buitenlandse bedrijven kwamen en overwonnen ook niet.

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MATTEL

'Dit is een legendarisch moment in de geschiedenis van het merk Barbie', zei Richard Dickson, de baas van Barbie in 2009 bij de opening van 's werelds eerste grote Barbie-winkel. Mattel, het moederbedrijf van Barbie, opende met veel tamtam zijn eerste grote winkel ter wereld, een zes verdiepingen tellende tempel geheel gewijd aan de plastic modepop. De Barbie-'fabriek' zetelde aan een van de drukste winkelstraten van Shanghai, schuin tegenover een grote C&A-vestiging. Met ruim 3700 vierkante meter was het de grootste winkel ter wereld waar uitsluitend Barbie-spullen te koop waren.

Twee jaar en $ 30 miljoen aan investeringen later, ging de winkel in alle stilte weer dicht. Het bleek te lastig om Barbie te slijten aan vrouwen en meisjes in een land waar – in tegenstelling tot Europa of Amerika – vrouwen niet zijn opgegroeid met het vrouwelijk schoonheidsicoon. Pogingen om jonge Chinese vrouwen in de winkel te verleiden met verwensessies in een beautysalon, met kleren ontworpen door 'Sex and the City'-ontwerper Patricia Field en met een $15.000 kostende trouwjurk van Vera Wang mislukten jammerlijk. Net als de mogelijkheid om tot twee uur 's nachts te nippen aan een mierzoete roze 'babitini-cocktail' (malibu, lime en aardbeien) in de Barbie-bar.

Exit Barbie, maar Mattel bleef wel actief in China om er speelgoed te laten maken.

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Best Buy

Chinezen zijn dol op gadgets en elektronica. Zo bezien lijkt China een fantastische markt voor westerse elektronicaketens. Dat dacht ook het Amerikaanse Best Buy, toen het in 2007 naar China trok. Amerika's bekendste elektronicaketen opende een groot aantal winkels, die na vier jaar en tientallen miljoenen dollars aan investeringen, afschrijvingen en verliezen weer werden gesloten. Een gebrek aan inloop in de winkels had Best Buy niet, wel een gebrek aan kennis van de Chinese markt. Want waar het sterk op service gerichte verdienmodel van Best Buy in de Verenigde Staten goed werkte, telt in China in de zwaar concurrerende elektronicamarkt maar één ding: prijs.

Chinezen kwam massaal de nieuwste gadgets bekijken en testen in de Chinese best Buy-winkels, om ze vervolgens om de hoek veel goedkoper aan te schaffen in een van de vele semi-illegale maar veel kleinere elektronicawinkels. Best Buys falen was een typisch geval, waarbij een succesvolle strategie in het thuisland één op één werd gekopieerd in China, zonder rekening te houden met de specifieke lokale marktomstandigheden. Dat was 2011. Sindsdien hebben ook grote buitenlandse gadget-merken, misschien met uitzondering van Apple en Samsung, nauwelijks voet aan de grond gekregen in China.

3
eBay

De Amerikaanse internetveilingsite ging al in een vroeg stadium de Chinese internetmarkt op. Al in 2002 opende het bedrijf een Chinese website. Vier jaar later vertrok het bedrijf weer. Het slaagde er niet een substantieel deel van de nog ontluikende markt te veroveren. Belangrijkste oorzaak: verschillen in cultuur. Niet alleen stuurde eBay buitenlanders naar China om de lokale tak te gaan opzetten en managen in plaats van het inhuren van lokale managers. eBay rekende in China net als in de Verenigde Staten ook een klein bedrag per transactie en vroeg het ook een vergoeding voor het plaatsten van een advertentie.

Taobao, de website die later zou uitgroeien tot China's grootste internetmarktplaats voor consumenten, bood transacties volledig gratis aan en hanteerde een betalingssysteem dat beter aansloot bij het gedrag van Chinese klanten. En Taobao bood nog iets anders belangrijks: de mogelijkheid aan kopers en verkopers om via een chatfunctie met elkaar in contact te treden. Onderhandelen over prijzen is usance voor Chinezen, net als netwerken en het ontwikkelen van een relatie. Het onderlinge vertrouwen is immers laag. eBay.bood die mogelijkheden om direct met elkaar in contact te treden vóór de aankoop niet.

4
Google

Misschien wel het bekendste voorbeeld. Het Amerikaanse internetbedrijf heeft in een groot aantal landen een dominante positie, maar heeft nooit echt voet aan de grond gekregen in het land met het grootste aantal internetgebruikers. Google besloot in 2010 te stoppen met de medewerking aan de internetcensuur in China. Dat deed het bedrijf nadat de Gmail-accounts van Chinese mensenrechtenactivisten waren aangevallen vanuit China. Het conflict leidde er uiteindelijk toe dat alle diensten van Google in China niet of nauwelijks toegankelijk zijn.

Hoewel internetcensuur een belangrijke reden is voor de moeizame weg van Google in China, speelt ook het beleid van de Chinese regering om lokale kampioenen op internet (Baidu, Tencent, Alibaba) te creëren waarschijnlijk een rol. Daarnaast had grote concurrent Baidu aanvankelijk het voordeel van de 'lokale' speler die het ook nog eens mogelijk maakte om te zoeken naar illegale films, muziek en tv-series, iets dat via Google een stuk moeilijker was. Bovendien was Baidu al een aantal jaren actief voordat Google de markt betrad en had Baidu daardoor al een grote schare trouwe gebruikers.

5
Tesco

Niet alleen in de Chinese technologiesector is het lastig zakendoen voor buitenlandse bedrijven. Ook in sectoren die op het eerste gezicht overal in de wereld vergelijkbaar lijken, is het veroveren van een stevige marktpositie moeilijk. Neem de Britse supermarktketen Tesco. De Britten betraden de Chinese markt in 2004 door een belang te nemen in een Chinese hyperrmarktketen. In de jaren daarna investeert Tesco honderden miljoenen ponden in de uitbreiding van het belang en de uitrol van hypermarkten in China. Eerst onder de merknaam van het overgenomen Chinese bedrijf Hymall, later ook onder eigen naam.

In 2010 ontvouwt Tesco nog ambitieuze plannen om de komende vijf jaar de omzet in China te verviervoudigen naar £4 mrd. Nog geen vier jaar later tekent Tesco echter de terugtocht, door een joint venture aan te gaan met een Chinese partij, waarin alle Chinese activiteiten van Tesco worden ondergebracht. Tesco houdt daarin alleen nog een belang van 20%. Door een te late entree in China, weinig onderscheidend vermogen, weinig animo voor de in Engeland wél populaire 'Tesco club card' en door de snelle opkomst van internetwinkelen, miste Tesco uiteindelijk de boot in China.
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Chinese autoverkopen vorig jaar behoorlijk gestegen

Snelste groeitempo in drie jaar.

(ABM FN-Dow Jones) De autoverkopen in China zijn in 2016 met 15 procent gestegen, wat het sterkste groeitempo markeerde sinds 2013 in 's werelds grootste automarkt. Dit bleek donderdag uit van de China Association of Automobile Manufacturers.

In totaal werden vorig jaar 24,38 miljoen auto's verkocht. De toename werd vooral gedreven door belastingvoordelen, want de aankoopbelasting op voertuigen met een motor tot 1,6 liter halveerde van 10 naar 5 procent.

Terreinwagens als SUV's waren erg in trek met een verkoopstijging van 45 procent op jaarbasis tot ruim 9 miljoen stuks.

Qua buitenlandse merken was Volkswagen het meest populair. De Duitse autoproducent verkocht in China vorig jaar 12 procent meer auto's dan in 2015. General Motors zag de verkopen in China met 7 procent toenemen, terwijl Ford in het jaar 14 procent meer auto's verkocht dan in 2015.

Door: ABM Financial News.

info@abmfn.nl

Redactie: +31(0)20 26 28 999

(END) Dow Jones Newswires
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Chinese export gedaald

Handelsoverschot in december valt lager uit dan voorzien.

(ABM FN-Dow Jones) De Chinese export is in december gedaald. Dit bleek vrijdag uit cijfers van de Chinese douane.

Uitgedrukt in dollars daalde de Chinese export vorige maand met 6,1 procent ten opzichte van dezelfde maand een jaar eerder. In november was nog sprake van een stijging van 0,1 procent. De verwachting lag op een daling met 3,0 procent.

De import gerekend in dollars steeg op jaarbasis met 3,1 procent tegen een stijging van 6,7 procent in november. Hier was een stijging van 3,0 procent verwacht.

Het Chinese handelsoverschot daalde in december van 44,61 miljard dollar naar 40,82 miljard dollar. Dit is lager dan de door geraadpleegde economen voorziene 48,3 miljard.

Gerekend in de eigen valuta, steeg de export in december met 0,6 procent op jaarbasis, terwijl de import met 10,8 procent toenam.

In heel 2016 daalde Chinese export met 7,7 procent, terwijl de import met 5,5 procent daalde. Dit resulteerde in een handelsoverschot van 510 miljard dollar. In 2015 lag dit op 594,5 miljard dollar.

Door: ABM Financial News.

info@abmfn.nl

Redactie: +31(0)20 26 28 999

Copyright ABM Financial News. All rights reserved

(END) Dow Jones Newswires
morgen1
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Chinese tabloid says U.S. needs to 'wage war' to block off South China Sea islands (reuters)

Blocking Chinese access to islands in the South China Sea would require the U.S. to "wage war", an influential Chinese state-run tabloid said on Friday, after U.S. Secretary of State nominee Rex Tillerson suggested the strategy on Wednesday.

Tillerson told his confirmation hearing before the U.S. Senate Foreign Relations Committee that he wanted to send a signal to China that their access to islands in the disputed South China Sea "is not going to be allowed". He did not elaborate.

The United States would have to "wage a large-scale war" in the South China sea to prevent Chinese access to the islands, the Global Times said in an English language editorial.

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The paper, which is known for writing strongly-worded, hawkish and nationalist editorials, is published by the ruling Communist Party's flagship paper. It does not reflect Chinese policy.

"Tillerson had better bone up on nuclear power strategies if he wants to force a big nuclear power to withdraw from its own territories," the paper added.

The editorial also said that Tillerson, an Exxon Mobil Corp chairman and former chief executive, was the most likely of U.S. President-elect Donald Trump's cabinet picks to be vetoed by congress.

"It is suspected that he merely wanted to curry favor from senators and increase his chances of being confirmed by intentionally showing a tough stance toward China," it said.

The paper did not elaborate on either point.

A similar article was also carried in the paper's Chinese language website that receives thousands of hits every day.

There are also legal questions of any U.S. attempt to block China's access, the editorial said, asking if this might mean that Vietnam and Philippines also should be denied entry.

China claims most of the energy-rich South China Sea through which about $5 trillion in ship-borne trade passes every year. Neighbors Brunei, Malaysia, Taiwan and Vietnam also have claims.

ALSO IN SOUTH CHINA SEA

Avoiding China's wrath, Philippines puts off upgrades to South China Sea isles
Philippines hopes South China Sea 'conduct code' ready this year
The United States has previously called on China to respect the findings of the arbitration court in The Hague earlier this year which ruled in favor of the Philippines, rejecting China's territorial claims in the strategic waterway.

Democratic President Barack Obama’s administration conducted periodic air and naval patrols to assert the right of free navigation in the South China Sea. These have angered Beijing, but seeking to blockade China's man-made islands would be a major step further and a step that Washington has never raised as an option.

(Reporting by Christian Shepherd; Editing by Michael Perry)
www.reuters.com/article/us-china-usa-...
DeZwarteRidder
0
China celebrates ballpoint pen breakthrough
Published: 10:52 am, Sunday, 15 January 2017

The world s largest ballpoint pen manufacturer was previously unable to make one vital component.
China has finally produced its own fully home-produced ballpoint pen after years of trying to master the complex techniques involved in making the delicate tips.

Despite manufacturing 80 per cent of the world's ballpoint pens, the country had previously been unable to produce the small but crucial component. Now, state-owned steel firm Taiyuan Iron Steel has announced it has finally cracked it.

So why did a country renowned for ingeniously replicating technology struggle to create an everyday item for so long?

Firstly, it did not have machines with the precision needed to cut a tiny ball-bearing accurately, meaning the balls had to be imported from Switzerland.
And despite being the world's largest steel producer, China was unable to produce the high quality steel to case the ink-dispensing ball, resulting in the steel being imported from Germany or Japan.

Such was the national concern about the issue that, in June 2015, state-run broadcaster CCTV hosted three manufacturing chief executives in an hour-long talk show discussing what the country could do to solve the problem.

And the dilemma made headline news last year, when Chinese Premier Li Keqiang complained on national TV that the country's pens were 'rough' in comparison with their Japanese, German and Swiss counterparts.

His comments led the Hong Kong Economic Journal to declare: 'The day China can produce a 100 per cent homemade ball pen will be the day it truly qualifies as a first-class industrial power.'

The newly announced breakthrough is a small but very symbolic success for the central government's Made in China 2025 programme, designed to help domestic growth.

Following the announcement, CCTV posted a video on social media site Weibo asking its followers to cheer for the momentous achievement.

China is now hoping to phase out pen tip imports completely within the next two years.

- See more at: www.skynews.com.au/culture/offbeat/20...
voda
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Economische groei China laagst sinds 1990

Gepubliceerd op 20 jan 2017 om 07:53 | Views: 1.260

PEKING (AFN/BLOOMBERG) - De groei van de Chinese economie is afgelopen jaar afgezwakt tot het laagste tempo sinds 1990. In de laatste drie maanden van het jaar lag de groei voor het eerst in twee jaar wel iets hoger dan in het voorgaande kwartaal, bleek vrijdag uit eerste schattingen van de Chinese overheid.

's Werelds op een na grootste economie groeide vorig jaar met 6,7 procent, na een vooruitgang met 6,9 procent in 2015. Ondanks de verdere afzwakking voldeed de economie aan de doelstellingen van de Chinese regering, die mikt op een jaarlijkse groei van 6,5 tot 7 procent.

China probeert zijn economie te stabiliseren na jaren van uitbundige groei, die gepaard ging met een forse opbouw van schulden. Afgelopen jaar werd de groei vooral gesteund door de binnenlandse consumptie die inmiddels goed is voor bijna twee derde van de totale economie. De consumptie neemt daardoor steeds meer de rol van economische motor over van de export en de investeringen.

Algemeen wordt verwacht dat de Chinese economie de komende jaren verder afkoelt. Het Internationaal Monetair Fonds (IMF) voorspelde vorige week een groei van 6,5 procent voor China dit jaar. Voor 2018 wordt een plus van 6 procent voorzien.

In het laatste kwartaal van 2016 werd de Chinese economie 6,8 procent groter, na een plus van 6,7 procent in de drie voorgaande maanden.
voda
0
Chinese steel futures slide continues

Chinese steel futures continued to slide gradually on Thursday, with HRC much weaker than rebar. With the market already preparing for the upcoming holidays, there is unlikely to be any dramatic change from this trend until buyers return from their break, Kallanish notes.

The May rebar contract on the Shanghai Futures Exchange closed down CNY 31/tonne at CNY 3,256/t ($476/t), while the same contract for hot rolled coil closed down CNY 87/t at CNY 3,551/t. With rebar futures slightly higher than spot prices, and HRC futures well below spot prices, the outlook for rebar remains far stronger than HRC in the short term.

The key reason is that rebar is more seasonal and should see demand after the New Year. There will also be more buying of HRC, but manufacturing demand appears to be pulling back from a peak at the end of 2016.

The key trend in the market however is that there is very little actual activity as traders and buyers are breaking for the holiday. Many rolling mills too have closed shop as workers are returning home to spend the next week or two with family. Little dramatic activity is therefore expected until the return from the New Year holiday, officially on 3 February.

Source: Kallanish.com
voda
0
China to grow electric vehicle production by 2020

China’s has announced it plans to increase new energy vehicles production to 2 million units annually by 2020, according to the 2017 Electric Vehicle 100 Forum on 15 January. According to Miao Wei, head of the Economy and Information Commission (EIC), it has crafted a medium-long term development plan for the Chinese automobile industry which should boost the importance of electric cars within the sector.
The plan says by 2025 Chinese new energy car sales should account for over 20% of total new vehicle sales, and this coulld boost steel demand as the charging infrastrucure is expanded, Kallanish notes.

Buyers of electric cars already have advantages in securing number plates and in tax subsidies. In big cities like Beijing and Shanghai buyers can get plates within a month, avoiding the lottery system for plate allocation for other vehicles. Combined with steadily improving infrastructure, this has proved a successful incentive.
Official data from the China Association of Automobile Manufacturers shows in 2017 new energy vehicle sales were up 53% year-on-year to around 507,000 units. The 517,000 units produced also made China the world's No.1 producer. However it failed to reach the target of 700,000 units.

The new energy vehicle development plan over 2015-2020 details infrastructure construction and developing technical specifications. This has helped give confidence to car makers. Wang Chuanfu, the Chairman of BYD Company, says, “Our government has the most complete ...car development plan in the world, in the next five years the plan will keep helping new energy vehicles develop in China.”

China's new energy vehicle subsidies have caused some controversy however. In one case last year, companies were investigated for producing cars and selling them to their own subsidiaries. This was done in order to claim total subsidies for producers and buyers which were worth more than the value of the cars themselves.

However deputy director of the Department of Economic Construction under the Ministry of Finance (MOF) Song Qiuling is suggesting improvements to the scheme. He says that the MOF, together with the EIC, National Development and Reform Commission and Ministry of Technology has proposed a more complete subsidy policy which should ensure incentives are properly aligned.

Source: Kallanish.com
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