Page 1

Magazine_Layout 1 5/16/2013 9:40 PM Page 1


Magazine_Layout 1 5/16/2013 9:40 PM Page 2

Editorial Editor-in-Chief Makhdoom Babar Editor Jamshed Ullah News Editor Arshad Chaudhry Research & Analysis Uzma Zafar Raja Pervaiz Hussain Suzie Worng Waqas Wiki Designing & Layout Asmat Ullah Khan Awais Shehzad Technical Support Sultan Haroon Iqbal Bukhari Co-ordination Sobia Noreen Internet Edition John Nelson Rehmat Chughtai

Contact Head office:

CASH Mass Media, 1102-1103 11th Floor, Longhang No 555, Nathan Road, Mongkok, Kowloon, Hong Kong

Islamabad Office: Mail House, Shakeel Chambers 01 Khayban-e-Soharwardy, Islamabad Email: editor@ccedigest.com newseditor@ccedigest.com webeditor@ccedigest.com ads@ccedigest.com

A

ccording to the reports, China's import will total $10 trillion in the next five years, about three times of Germany's gross domestic product (GDP). In recent years, China's share in global trade has been expanding. In 2012, China registered a total goods trade value of 3.87 trillion dollars, overtaking the United States to claim the top ranking in this regard. However, it is also believed that on the wrangling battle field for the right to set down international trade rules in the 21st century, China faces huge challenges, and even the risk of being marginalized. The major pressure comes from the United States. With the unsolved deadlock in the Doha Round and a weak World Trade Organization (WTO), the US, as the world's largest economy, is establishing a US-dominated new 21st-century global trade pattern, backed by two pillars - the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP). TTIP will bind together two large economies - the US and the European Union, with their combined GDP and trade value accounting for half and one-third of the global total respectively. Using their dominant positions in international trade, the US and EU further push the formulation of new rules for global trade to cope with the rise of new economies, including China, while TPP is aimed at subjecting the stability of Asia-Pacific region to the new order, with security dragging trade against the backdrop of US "Return to Asia" strategy. The CED believes that under such circumstances, China has to weigh between two options: to stay away from this US initiative and set up its own version or wait to see the progress in TPP negotiations and find an opportune moment to extend its olive branches? We also believe that for China's foreign trade, a smooth transition to quality growth from the past quantity-featured glory holds key to its future boom and even for the sustainability of the overall Chinese economy. In the months to come, major world economies will have to continue their battle against slow growth amid debt problems and the trend will remain that powers cooperate with and compete against each other at the same time. We believe that China holds a very pivotal role in the future global trade, keeping in view the prevailing and emerging trends in the global economy.

Editor


Magazine_Layout 1 5/16/2013 9:40 PM Page 4

in this issue

in this issue May 13, 19, 2013

04

Cover Story

Beijing airport cabbies in trouble over bargains

09

China proposes to ADB for Asia’s rapid uplift

12

Coke to increase China investment

BEIJING-Passenger anger at taxi drivers bargaining over night-time fares at Beijing Capital International Airport led to the city's transport authority to issue a new regulation on handling complaints against cabbies.

06

Prosecution staff to be enhanced to check cyber crimes BEIJING-Beijing's prosecuting authorities will bring in more professionals who are capable of inspecting online evidence in an effort to better deal with crimes on the Internet.

The Coca-Cola Company has announced here that it will continue to increase investment levels in China.

China Mobile, Ericsson deploy World’s maiden City Site BEIJING-In the latest round of GSM network construction, China Mobile Guangxi Branch and Ericsson have joined together to deploy world’s first City Site, an innovative radio site solution, which has been put into commercial use on a trial basis.

China replaces US as World’s biggest PC market SHANGHAI-It’s long been known that China’s vast population would see its PC market pass that of the US, and now IHS’s iSuppli’s market intelligence service has found that, for the first time, the country overtook the US as the world’s largest PC market based on annual shipments.


Magazine_Layout 1 5/16/2013 9:40 PM Page 6

Society

Beijing airport cabbies in trouble over bargains CED Monitoring BEIJING-Passenger anger at taxi drivers bargaining over night-time fares at Beijing Capital International Airport led to the city's transport authority to issue a new regulation on handling complaints against cabbies. Drivers operating at the airport late at night have also forced passengers to share a cab, despite campaigns by transport authorities to improve taxi services, according to a number of passengers. In the regulation that took effect on Thursday, the Beijing Municipal Commission of Transport states that commuters can use letters, emails or phone calls to file complaints about taxi services. The regulation also states that the party receiving the complaints, including taxi companies or transport authorities, must respond within 15 days. A taxi company could be fined as much as 28,000 Yuan ($4,540) if the number of complaints filed by passengers against its drivers in six months is three times, or higher than the average. Taxis are the preferred choice for passengers arriving at the airport during the night, as the Beijing Sub04

way Airport Express stops running at about 11 pm, with airport shuttle buses only running to the Xidan commercial area and Gongzhufen. Ma Xiaolin, a veteran journalist and blogger in Beijing, wrote on his micro blog on Sunday that taxi drivers at the airport are asking passengers to share a taxi "with an arrogant attitude" and asking for higher fares from passengers before dawn. "I learned that those drivers are there every night and nobody seemed to have intervened," he wrote. Some cabbies at the airport even offer self-made invoices to passengers and lift car trunk lids to avoid monitoring cameras from capturing their license plate numbers. Li Shengbo, a spokesman for the airport, said there is a taxi shortage there during the night, with drivers bargaining over fares a longstanding problem. "But we are only a business corporation and are not authorized to supervise the operation of taxis," he said. Li called for closer coordination between the law enforcement team from the Beijing Municipal Commission of Transport and the airport to better supervise taxi driv-

ers. "The problem can only be solved through closer coordination on supervision efforts between us and the supervision authorities in Beijing," he said. A shortage of taxis before dawn at the airport has long been a problem, as drivers are unwilling to drive to the airport at night, Li said. Passengers charged more than the normal fare can report the taxi plate number or the driver's operating license number to the service hotline — 96123 — set up by the transport authority. Liu Nuo, a 29-year-old Beijing resident who makes frequent business trips by air, arrived at the airport at around 1 am on Wednesday and was shocked to see a large number of people waiting in line for a taxi, with no cabs arriving. Liu said the airport shuttle bus was still operating at that time but was going in a different direction to her home. She decided against waiting in line and asked her family to pick her up. Beijing Capital International Airport is the world's second-largest airport based on yearly passenger throughput, with some 80 million individual trips in 2012. 05


Magazine_Layout 1 5/16/2013 9:40 PM Page 8

Society

Prosecution staff to be enhanced to check cyber crimes CED Monitoring BEIJING-Beijing's prosecuting authorities will bring in more professionals who are capable of inspecting online evidence in an effort to better deal with crimes on the Internet. The number of Web crimes, especially online fraud, is rising fast, but it is rare to see prosecutors with the technical background and knowledge to handle such cases, according to the Beijing People's Procuratorate. Since 2008, prosecutors in the capital's Chaoyang district have 06

tackled more than 50 cases involving fraud on the Web, while the procuratorate in Shijingshan district has prosecuted more than 200 residents for such crimes. "To handle online cases, prosecutors should be able to analyze and examine e-evidence, but this is a challenge for current prosecutors," said Zhang Kai, a prosecutor from Chaoyang district. Ma Shuang, a prosecutor from Shijingshan district, echoed Zhang's view, saying many prosecutors are not knowledgeable about the online fraud skills that criminals have mastered, which

makes it difficult to solve such cases. "E-evidence can be said to be a key to lodge a prosecution, but is hard to find and inspect. In this way, if prosecutors don't know some cheaters' tricks, the evidence will be easier to transfer and delete," she said. In 2012, the first batch of prosecutors was trained with computer skills and e-evidence inspection, but the number of prosecutors who are good at dealing with online cases across the city is still fewer than 10. "The figure is far from what we

expected and cannot adapt to the boom in crimes on the Internet," both prosecutors added. To make up for the lack of talent, Beijing's top procuratorate will continue training in e-evidence inspection and analysis, while considering employing prosecutors whose majors relate to computers or networks. Prosecuting authorities in Dongcheng district have taken the first step, establishing an office involving five prosecutors to tackle online crimes this year. "We have only one with a computer background, but we will study e-evidence together, and this special group, I believe, can target online crimes and make inspections effectively," said Mao Shoujia, director of the office. 07


Magazine_Layout 1 5/16/2013 9:40 PM Page 10

Finance

China proposes to ADB for Asia’s rapid uplift CED Monitoring BEIJING-China has made certain solid proposals to the Asian Development Bank (ADB) for promoting Asia development, at a time when Asian countries are face with internal structural problems and weakening external demand. Chinese Vice Finance Minister Zhu Guangyao said at the 45th Annual Meeting of ADB Board Governors that China believes ADB's main task now is to contribute to intensifying economic integration, expanding intra-regional demand and promoting investment in real economy. He made the three proposals to ADB to help fulfill such a task: First, adjusting strategic priorities

08

and promoting regional interconnectivity; second, strengthening financial capacity and improving governance structure; third, deepening structural reform and promoting economic development. "ADB should expand its lending scale for the member countries' infrastructure projects, streamline the procedure and enhance its efficiency," he said, adding that infrastructure will help sustain economic development, contribute to intra-regional investment demand and fuel growth. Zhu said ADB, considering its problem of weakening lending capacity, should consult with all its members and put forward a package of solutions. "Such a package should take

a long term vision, including reforming ADB's governance structure that currently dampens its financial capacity and its longterm development, and increasing voice and representation of developing countries," he said. Zhu added that to maintain the momentum of Asia's growth, countries in the region should strengthen policy coordination and create synergy effect. He also said although China understands Japan's economic reform to get rid of deflation, the right policy choice for it should be economic restructuring. "The monetary policy cannot substitute structural reform," he noted

09


Magazine_Layout 1 5/16/2013 9:40 PM Page 12

Coke to increase China investment


Magazine_Layout 1 5/16/2013 9:40 PM Page 14

Finance

BEIJING – The Coca-Cola Company has announced here that it will continue to increase investment levels in China. Ahmet Bozer, president of Coca-Cola International, said during an interview that he expects the business to continue to grow for many years to come. Bozer said 4 billion U.S. dollars of investment will be added by 2014 in China. And he explained that the investment is mixed with marketing assets like plants, transportation and retail outlets. According to the CocaCola chief, the company will open a new plant in Shijiazhuang, capital of north China's Hebei Province, in October. It is also working to de12

velop the markets in China's second- and third- tier cities and its western areas. Those cities may be at a different economic stage of development, Bozer said, but they are expected to have great potential. As told by Bozer, CocaCola has been developing local partners and distribution systems to make the brand locally relevant. According to Bai Changbo, Vice President of public affairs and communications for CocaCola Greater China, Chinese people now drink an average of 39 bottle of Coke per year, which is still much fewer than the 400 bottles consumed in the United States. "Thus, our products have broad growth space in China,"

Bai said. With that growth, CocaCola has to keep investing to satisfy the demand, Bai acknowledged. "We want to make China our largest beverage market soon," added Bozer. The first shipment of CocaCola cans was shipped to China in 1978, so this year marks the brand's 35th year in the country. "Our business in China is a mirror of the progress of its opening-up policy," said David Brooks, president of Coca-Cola Greater China and Korea. Coca-Cola used to make the argument to the Chinese government that foreign tourists had to have Coke if the country wanted them to come in, disclosed Brooks.

The Chinese government approved Coca-Cola's operation in the country in 1979. Now, the beverage giant has established 42 plants all over China, with a total investment of 5 billion U.S. dollars, and 50,000 Chinese local employees. Meanwhile, Coca-Cola is being investigated by the National Administration of Surveying, Mapping and Geoinformation after reports of illegal surveying activities. A statement on Friday said the administration has been informed that the Yunnan branch of the U.S. soft drink giant was suspected of collecting geological information and data using illegal means. Recent reports carried by news outlets stated that the

provincial administration of surveying, mapping and geoinformation of Yunnan had announced at a meeting that Coca-Cola had used GPS devices to carry out illegal surveying in the southwestern border province. Such media reports were described as "inaccurate" by a Yunnan administration official. "We have not released that kind of information and we don't know why the media has chosen to publish such information," said Han Qixiang, a provincial administration official. Han did not disclose any details about the case, citing national security concerns. Yunnan lies along China's border with Myanmar, Laos and Vietnam.

Coca-Cola Thursday denied conducting any illegal surveying activity, adding that it is cooperating with authorities in charge of the investigation. The company said some of its bottling plants use surveying technology, such as electronic maps, to improve their logistical efficiency. It did not mention the GPS claims mentioned in the media. Chinese law forbids foreign organizations and individuals from conducting surveying activities in its territory without permission. Violators may have their surveying equipment confiscated, be forced to pay fines ranging from 10,000 to 500,000 Yuan (1,595 to 79,745 U.S. dollars) or be ordered to leave the country.(XINHUA)

13


Magazine_Layout 1 5/16/2013 9:40 PM Page 16

IT

China Mobile, Ericsson deploy World’s maiden City Site

14

CED Monitoring BEIJING-In the latest round of GSM network construction, China Mobile Guangxi Branch and Ericsson have joined together to deploy world’s first City Site, an innovative radio site solution, which has been put into commercial use on a trial basis. Ericsson ConsumerLab’s latest Networked Society City Index report shows that the number of urban residents on the planet is increasing by 5 million every month. In 2050, cities, which only account for 1 percent of the total area of the planet, will hold 70 percent of the world’s population. Currently, China’s urban construction is in full swing, and its mobile network coverage is rising. In the increasingly crowded urban environment, however, ensuring the quality of mobile-network coverage has become a problem. In order to meet this challenge, Ericsson has launched the City Site integrated solution, and successfully applied it to China Mobile’s GSM network in Nanning, Guangxi. The City Site, which has been deployed with the standard RBS6601 base station, has an integrated Omni Antenna, which only covers a small area and is, therefore, easy to deploy. It could also be launched with just access to power and transmission cables. According to the test of the live network, the City Site has effectively met the capacity and quality needs of network coverage, as well as ensuring excellent user experience. In addition, the City Site has also been equipped with functions such as electronic advertising, clock and public information inquires with touch-screen technology. Operators now can not only enhance the mobile coverage but also launch more value-added services via the City site. The City Site has fewer limitations for site selection compared with standard radio base station, as it can be deployed in crowded areas, and is suitable for a variety of places, such as railway stations, business districts, schools, parks, squares, and main avenues. While enriching the base station building approaches, it provides users with an excellent and satisfactory network experience. Ericsson will continue to cooperate with China Mobile to apply the City Site more extensively through further research. 15


Magazine_Layout 1 5/16/2013 9:40 PM Page 18

IT

China replaces US as World’s biggest PC market

16

17


Magazine_Layout 1 5/16/2013 9:40 PM Page 20

IT

sumers tend to prefer the desktop form factor.” The anomalous patterns in China don’t stop there. According to IHS, 14-inch models are the most preferred size of notebook in the country, accounting for 70 percent of shipments. Yet, in the rest of the world, 14-inch devices account for just 30 percent of notebook shipments. Finally — and perhaps the most interesting signal — less than 50 percent of China’s PCs come with an operating system pre-installed. Worldwide that figure is 90 percent, as you might expect, and the fact it is so low in China is likely down to pricing (machines are typically cheaper if they don’t come with Windows or other licensed software included) and the rampant piracy that al-

CED Monitoring SHANGHAI-It’s long been known that China’s vast population would see its PC market pass that of the US, and now IHS’s iSuppli’s market intelligence service has found that, for the first time, the country overtook the US as the world’s largest PC market based on annual shipments. The US market was top in 2011 — despite China briefly beating it during the third quarter, according to some — but, last year, PC shipments to China touched 69 million units, just 18

ahead of the 66 million total for the US. The interesting part isn’t just that China is the world’s largest market, but it also exhibits a range of unique features. While desktop PCs account for just over one-third (36 percent) of shipments worldwide, in China the desktop-notebook balance is 5050. Likewise, while consumer PCs make up 65 percent of all units shipped worldwide, consumer and enterprise are split 50-50 in China. These two characteristics can be explained by China’s

lows a PC owner to get a fake operating system installed at a fraction of the cost. So, like the smartphone market — where forked Android devices are among the most popular operating systems — the Chinese PC market is vast, but a very different landscape that does not monetize in the same way as other large countries. Nonetheless, it is interesting that a market where many have skipped the PC for mobile phones or tablets — or at least spent much less time on the PC-based Internet — the sheer population is such that the PC market has grown to become the world’s largest. In terms of future growth, IHS projects that shipment numbers will increase by just 3-4 percent

during 2013, because “demand in China remains weak as consumers migrate to using mobile devices”. According to stats from Analysys International last year, Apple dominates China’s tablet space with a 70 percent share of sales. The search firm estimates that the sale of tablet PCs grew 65 percent year-on-year (11.3 percent quarter-on-quarter) during the third quarter of 2012, with an estimated 2.6 million units bought by consumers during the three-month period. While you cannot compare sales with shipments, China’s market may be unique, but it is also undergoing the same shift to tablets and mobile that the rest of the world is seeing too.

rural population who, according to IHS, are not yet focusing on portable devices. “The equal share of shipments for desktops and notebooks in China is unusual, since consumers in most regions today tend to prefer more agile mobile PCs, rather than the bulky, stationary desktops,” says Peter Lin, senior analyst at IHS. “The relatively large percentage of desktop PC shipments in China is due to huge demand in the country’s rural areas, which account for a major segment of the country’s 1.34 billion citizens. These con19


Magazine_Layout 1 5/16/2013 9:40 PM Page 22

Industry

State Council vows to boost economy by cutting intervention

20

21


Magazine_Layout 1 5/16/2013 9:40 PM Page 24

Industry

CED Monitoring BEIJING-China's cabinet has announced detailed plans to deepen economic reform, cutting government interventions that hinder robust growth. It will cancel or delegate power to lower levels for 62 items previously subject to central government administrative approval, after similar approaches removed 71 items last month, according to a statement released after an executive meeting of the State Council chaired by Premier Li Keqiang. China must launch more concrete reforms to "maintain steady economic growth, control inflation and dissolve risks," according to the communique from the meeting. The State Council said it expects new reform efforts to unleash the vigor of society and build up momentum for economic growth. The initiatives include measures to: • Make the process of establishing budgets more "open, transparent, standardized and comprehensive"; • Control the risk of local government debt; • Expand the pilot program for replacing business taxes with valueadded taxes. The present tax system on the use of

22

natural resources is to be revised; • Push forward market-oriented interest rate reform and propose an operational program for making Yuan convertible in the capital account; • Protect small and medium-sized investors overseas. Capital markets for bonds, stocks and trust investment instruments are to be better regulated; • Open the railway system to "social capital", including private capital. With guided access, "social capital" is to be allowed to invest in the existing trunk lines; • Establish a progressive pricing system for the supply of major urban utilities including electricity, water and natural gas; • Improve efforts to guarantee social security networks and related services, including "the strictest possible" system to monitor and regulate food and drug production and markets; • Roll out a new city residential permit system to eventually replace the half century-old hukou (household registration) system; • Develop modern agriculture by providing better legal protection of farmers' land use rights; • Expand pilot reform programs in all State-endorsed science and technology zones

23


Magazine_Layout 1 5/16/2013 9:40 PM Page 26

Industry

The China factor in future global trade

24

25


Magazine_Layout 1 5/16/2013 9:40 PM Page 28

Industry

BEIJING - China's import will total $10 trillion in the next five years, about three times of Germany's gross domestic product (GDP). When Chinese President Xi Jinping announced this figure last month at the Boao Forum, foreign analysts knew its weight. Against the backdrop of a rapidly changing global trade landscape, will China play a bigger role or be forced to retreat? In recent years, China's share in global trade has been expanding. In 2012, China registered a total goods trade value of 3.87 trillion dollars, overtaking the United States to claim the top ranking in this regard. However, some experts believe, on the wrangling battle field for the right to set down international trade rules in the 21st century, China faces huge challenges, and even the risk of being marginalized. The major pressure comes from the United States. With the unsolved deadlock in the Doha Round and a weak World Trade Organization (WTO), the US, as the world's largest economy, is establishing a US-dominated new 21stcentury global trade pattern, backed by two pillars - the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP). The US move is significant amid complex bilateral and multilateral links in international trade. TTIP will bind together two large economies - the US and the European Union, with their combined GDP and trade value accounting for half and one-third of the global total re26

spectively. Using their dominant positions in international trade, the US and EU further push the formulation of new rules for global trade to cope with the rise of new economies, including China, while TPP is aimed at subjecting the stability of AsiaPacific region to the new order, with security dragging trade against the backdrop of US "Return to Asia" strategy. The US TPP strategy is clearly targeted at China, said Wang Yong, professor of the School of International Studies of Beijing University. One and half a year ago, former Secretary of State Hillary Clinton proposed that the US will update the order of priority for its foreign policies and lift economy above anti-terrorism in order to consolidate its leading strategic place. Some scholars said that the" US Diplomacy Rocket", which carried bombs in the past, will carry US goods in the future. With more and more countries announcing their decisions to join in TPP talks, China still stays out of it. Under such circumstances, China has to weigh between two options: to stay away from this US initiative and set up its own version or wait to see the progress in TPP negotiations and find an opportune moment to extend its olive branches? Some observers see that the US-promoted new trade rules set a pretty high bar in regard to intellectual properties, labor protection, transparency and privatization of national enterprises. They say China, which could hardly bear such hefty prices to join the TPP, should

adhere to existing mechanisms including the "ASEAN 10 Plus 3" and Shanghai Cooperation Organization to push forward trade talks. Meanwhile, some other observers believe that exterior pressure has never slowed China's pace to move forward. On the contrary, as showed by China's success in three decades of reform and opening-up, the Asian nation is good at using such pressure to fuel progress at home. The pessimistic voice crying wolf prior to China's WTO entry in 2001 is now remembered only as an interesting episode given the great benefits China has received after becoming a member of the global trade body. Despite China's gaining of the global laurel in trade of goods, the country has come to a critical point to upgrade the "Made in China" label linked with low tech and high emission. For China's foreign trade, a smooth transition to quality growth from the past quantityfeatured glory holds key to its future boom and even for the sustainability of the overall Chinese economy. In the months to come, major world economies will have to continue their battle against slow growth amid debt problems and the trend will remain that powers cooperate with and compete against each other at the same time. With its huge market demand, vast growth prospect and the imagination surrounding its economic restructuring, China has quite a set of bargaining chips in the negotiations toward a reset of global trade rules. (Agencies) 27


Magazine_Layout 1 5/16/2013 9:40 PM Page 30

Automobile

Chery looking to strike back in the game 28

29


Magazine_Layout 1 5/16/2013 9:40 PM Page 32

Automobile

CED Monitoring SHANGHAI-In an effort to rebound from a year of slow sales, Chery Automobile Co demonstrated its innovative prowess with three all-new concept models based on its latest core technologies at Auto Shanghai, The three concepts - the Alpha7, Beta5 and the @Ant - were developed on the iAuto technology platform, which is short for intelligent auto. According to the company, the platform is based on its "independent technologies accumulated over the

30

years in accordance with leading global standards". A key aspect of Chery's drive to regain its growth momentum, the iAuto platform is composed of the CLOUDRIVE intelligent cloud entertainment system, the ACTECO intelligent efficiency powertrain system and the CHERYSMA intelligent balancing system, according to the company, which is based in Wuhu, Anhui province. The Alpha7, the first model utilizing the iAuto technologies, will be put into commercial production dur-

ing the second half of this year. The compact sedan will have two engine options - a 1.6-liter and a 2.0-liter DVVT. The Beta5, a compact SUV, will hit the market at the end of this year or the beginning of next year, according to the company. The one-seat @Ant represents Chery's exploration of the future market for individualized urban transportation systems. On the eve of the Shanghai auto show, Chery announced that it will focus on the Chery brand and give up

three other marques - the Riich, the Rely and the Karry. The Riich and Rely were medium and high-end cars. The Karry is a brand for minivans. Chery Chairman Yin Tongyue said the company plans to trim its lineup from more than 20 models to 11 or 12. It also revealed an allnew brand logo for Chery. Over the past two years, Chery has been plagued by a drop in sales and financial woes due to over-expansion. One major contributing factor

was the lackluster performance of the Riich, Rely and Karry models. . Starting anew with iAuto technologies under a single unified brand, the company aims to consolidate its leadership in the entry-level car market and to be "the best Chinese brand" in the auto industry from 2013 to 2016. During the period from 2016 to 2020, Chery expects to have the same capabilities as major multinational carmakers and that the technology of its products will reach international standards, mak-

ing it a world-class carmaker. Chery and Jaguar Land Rover run an equal joint venture with a total investment of 10.9 billion yuan. Based in Changshu, Jiangsu province, the venture will have an annual production capacity of 130,000 units and start production on Land Rover SUVs next year.

31


Magazine_Layout 1 5/16/2013 9:40 PM Page 34

Automobile

JAC plans to up exports this year CED Monitoring SHANGHAI-Domestic automaker Jianghuai Automobile Co Ltd plans to significantly boost its exports this year, said the company's top executive. JAC's overall sales goal for the year is 520,000 units, 15 percent of which will be exports, according to the com32

pany. JAC Chairman An Jin said the company sold more than 465,100 units last year, 12 percent of which were exported to more than 120 countries and regions. The company has more than 500 dealerships and 14 assembly plants overseas. Founded in 1964 and based

in Hefei, Anhui province, the automaker now has a full lineup of independently developed vehicles and components, including light, medium and heavy trucks, multi-purpose vehicles, small recreational vehicles, sedans, buses, construction machinery, engines, transmissions and chassis.

JAC vehicles sell at a higher price in foreign countries than in the domestic market, An said, noting that overseas sales became an important contributor to the 900 million yuan in net profit JAC realized last year. He said many international distributors recognize JAC as one of the top Chinese auto brands. On April 19 in Shanghai, JAC and US company Green Tech Automotive signed an agreement to export 2,000 JAC IEV pure-electric vehicles to the United States. Marianne McInerney, executive vice-president for sales and marketing at GTA, said JAC's continuous improvements in product quality make it "adaptable to every market". "I think that together we

can penetrate into the North American market," McInerney said. JAC is also displaying the latest product built by its partnership with renowned US truck manufacturer Navistar - the N721 - at the Shanghai auto show. Norris Wu, general manger for purchasing at Navistar (Shanghai) Trading Co Ltd, said about 500 N721 light-duty trucks will be exported to Mexico this year through Navistar's distributors. The figure is expected to rise to around 1,500 units in 2014 and 2015. In another development, JAC announced the opening of Fortune Auto Finance Co Ltd during the Shanghai show. This is a 50-50 joint venture with Spain's Banco Santander, which is now Europe's largest

bank by market value. Fortune Auto Finance General Manager Albert Zsolt Farkas said he hopes the financial services it offers can help boost JAC's vehicle sales and win more customers. "So far, we've received more than 300 applications from our customers," said Farkas. Currently, JAC vehicles are being sold throughout Asia, Africa, Europe, South America and now in North America. JAC sold 142,600 vehicles in the first quarter of this year, a jump of 19.25 percent from a year earlier and accounting for 27.4 percent of this year's sales target. JAC aims to sell 1.6 million units annually and achieve revenue totaling 100 billion yuan by 2015. 33


Magazine_Layout 1 5/16/2013 9:40 PM Page 36

Automobile

The New arrivals Fiat Freemont A highlight of Sino-Italian joint venture Guangqi Fiat's exhibition at the Shanghai auto show, the Freemont SUV comes in two engine options - a 2.4liter double VVT or a 3.6-liter V6. It is equipped with a sixspeed automatic gearbox. The 2.4-liter version features front-wheel drive. It produces maximum power of 125kW/6,000rpm and offers

peak torque of 220Nm/4,500 rpm. It comes with Fiat's U-Connect navigation system. The 3.6-liter version is all-wheel drive and boasts peak power of 206kW/350rpm and maximum torque of 342Nm/4,350rpm. Its comprehensive fuel consumption is 11.3L/100km. The Freemont is 4,910 mm long, 1,878 mm wide and 1,691 mm high. Its wheelbase is 2,890 mm. The model comes in fiveseat and seven-seat versions. It

retails for between 294,800 and 375,800 yuan. Trumpchi GA3 The compact model made by Guangzhou Automobile Group Co made its global debut at the Shanghai auto show this month and is expected to hit the market in July this year. According to the company, the car will have several engine options, including a 1.6liter naturally aspirated engine

and a 1.3-liter turbocharged engine. The turbocharged engine will be paired with a seven-speed dual-clutch transmission. Trumpchi is a wholly owned brand of Guangzhou Automobile Group, which also operates joint ventures with Honda, Toyota and Fiat. Currently the brand has two models - the GA5 sedan and GS5 SUV - in the market. Last year, sales of the Trumpchi totaled 33,000

units. All-new Volvo V40 The new premium hatchback was launched in the middle of this month, shortly before the Shanghai auto show. It is priced at between 239,900 yuan and 325,900 yuan. The model features a 2.0liter turbocharged engine with maximum power of 213 hp and a six-speed automatic transmission. The car is 4,369 mm long,

1,802 mm wide and 1,445 mm high, and it has a 2,647 mm wheelbase. It is going head to head with the BMW 1 Series, Mercedes-Benz A-Class and Audi A3 for dominance in its market segment. The company said that the car was an immediate hit after it went on sale in Europe last year, and it is expected to be equally well re c e iv e d in Ch in a .


Magazine_Layout 1 5/16/2013 9:40 PM Page 38

Construction

VAST TRANSPORT NETWORK TO LINK DISNEYLAND CED Monitoring SHANGHAI-A vast public transport network is in the works to serve the expected flood of visitors to the Shanghai Disneyland, officials have said . A hub at the west gate of the amusement park will comprise five bus terminals, car and taxi parking lots, wash rooms and six lounges. The 77,492-square-meter behemoth will stretch from Xihuan Road to a large square of the Shanghai Disneyland, officials said. Some amusement facilities, shops and trees will line the hub. The city government is inviting tenders for the construction of the hub that is budgeted at 182 million yuan (US$22.54 million). The project should be completed within a year. Metro Line 11 will also be extended from Luoshan Road Station to Disneyland with stops at Kangqiao Road E. Station and Hengxin Road Station. The extended 9.2-kilometer Disney section will use sixcar trains with maximum speed of 100 kilometers per hour. Ten 36

such trains will initially operate on the line. About 7.7km will be over land while the final stretch will be underground. Passengers can enter the park through an underground passage. The Disneyland Station itself will be an added attraction with artificial lake and covered with tress and shrubs and good use of natural light. Two broad slopes will be built on both sides of the stations for wheelchair-bound visitors. The size and decorations will be designed keeping children in mind. Road construction is already underway outside the amusement park that will connect to the Middle Ring Road in the Pudong New Area. The new elevated highway, costing more than 10 billion Yuan (US$1.62 billion), is being built between the Jungong Road Tunnel and Gaoke Road M. It will be completed in 2015, just in time for the opening of the park. An upgrade of the super capacitor buses that were used at the World Expo 2010 Shanghai may be used to shuttle visitors. Shanghai Disneyland, Disney's first theme park on China's mainland, is expected to attract 7.3 million visitors a year when it opens in 2015.CHICAGO -- Gen37


Magazine_Layout 1 5/16/2013 9:40 PM Page 40

Construction

GM TO BUILD BILLIONDOLLAR CADILLAC FACTORY IN CHINA 38

eral Motors has been given green light by China to build a 1.3-billion-U.S.-dollar factory in Shanghai, the automaker has confirmed. The plant will be located in Shanghai's Jinqiao district, GM said in a statement. Construction is to begin in June, according to Chicago Tribune. GM said the planned production capacity for the fac-

tory is 150, 000 vehicles. "We want to build where we sell. That is very important to us," said Alan Adler, a GM spokesman in Detroit. GM has a strong presence in China, with a market share of 15.2 percent, according to Daniel Ammann, GM Chief Financial Officer and Senior Vice President. Daniel Francis Akerson, GM

Chairman and Chief Executive Officer, has repeatedly talked about the importance of Chinese market. Akerson said the company has a "drive targeted to triple Cadillac's annual sales in China to 100,000 units by the end of 2015." He made the remarks during the company's first-quarter earnings teleconference last week.(XINHUA) 39


Magazine_Layout 1 5/16/2013 9:40 PM Page 42

Real est

China’s Real Estate sector continues to climb 40

41


Magazine_Layout 1 5/16/2013 9:40 PM Page 44

Real estate

CED Monitoring BEIJING-In March this year, the government rolled out measures designed to cool China's red-hot property market by reining in speculative investment. One of the measures, a 20 percent tax on capital gains from property sales, triggered widespread panic among potential buyers and sellers. Following a month of heated debate, speculation, anger, expectation and concern from potential homebuyers and sellers, many cities, including municipalities such as Beijing, Shanghai and Chongqing, have recently unveiled detailed plans to implement the guidelines in their own way. More governments are expected

42

to follow suit. Property prices in China's major cities saw an 11th consecutive monthly increase in April, but the growth rate slowed as the government's latest tightening policies gradually kicked in. Some of the measures, especially a ban on single adults purchasing second homes in Beijing, are considered the harshest imposed in recent years. The average price of newly built apartments in 100 Chinese cities hit 10,098 Yuan ($1,640) per square meter in April, rising 1 percent from the previous month. Prices have risen for 11 consecutive months since June, according to a report from the China Index Academy. The policies have pushed

many Chinese investors to buy homes overseas. In February, SouFun International, a real estate and home furnishing network platform, published a survey carried out among its members who want to buy houses abroad. More than 60 percent of those surveyed set their budget for overseas homes at more than $500,000. The favored countries include the United States, Australia, Canada, New Zealand and Malaysia. The top three reasons for buying property overseas were immigration (44 percent), children's education (25 percent) and investment (23 percent). To learn more about how Chinese are affected by real estate control policies, our reporters interviewed five residents in and

around Beijing. Here are their stories. Zhang Xiaobai, 32, has always kept an eye on property prices, and her friends often joke that she behaves more like a real estate saleswoman than a PR consultant. However, for many years she and her husband didn't own an apartment in the capital. They almost made it in March, but the plan became deadlocked over the implementation of China's new house price control polices. "Can I call us victims of the new policies?" asked the native of Wuhan in Hubei province. Because of their limited funds, the couple obtained a business mortgage in 2008 and paid 120,000 yuan ($19,000) for a small apartment in Yanjiao in Hebei province. Although it's outside the capital, the area neighbors the Beijing suburb of Tongzhou. However, it never occurred to Zhang that her modest home could become an obstacle to buying a property in Beijing. "We took a fancy to a 70square-meter apartment that was still being built in the Tongzhou district in late March. Although it's quite a long way from my office, compared with our home in Yanjiao, it's much closer," said Zhang. The couple's second home would cost around 1 million Yuan if they obtained a low-interest mortgage through a housing fund. "I've never dreamed of spending 1 million Yuan, you know. It's much more than our savings, even after all these years. We were like beggars. We called almost every number in our address book to speak to friends and relatives. With their help, we raised the money

and when the funds in our account finally came to 1 million, we both cried," she said. "Both sets of parents live in the countryside and are in poor health. You have no idea how hard we worked to build up our savings and to win the trust of friends and relatives so they would lend us the extra money." However, the procedure for gaining approval for a housing fund mortgage is more complicated and takes longer than that for a business loan. "We were like cats on hot bricks while we were waiting, because we'd heard that stricter polices on loans were likely to be launched soon," Zhang recalled. "The wait was painful. Eventually, we got a call from the sales office, which completely snuffed out our hopes." The government's new policy raised the down payment on the second property to 70 percent from 60 on April 8. "Even finding an extra 5,000 Yuan would be an impossible task for us, let alone another 170,000 Yuan. We explored every avenue, but we were unable to borrow more," she said. In the end, Zhang and her husband had no option but to return the 400,000 Yuan they had borrowed from friends. "The new policies are aimed at cooling house prices, and helping ordinary people. We just want to end the daily commute between the two cities and would like a small apartment in the city in which we have worked and lived for many years. Is that too much of a luxury?" asked Zhang. China's divorce rate has risen sharply in recent years, ringing

alarm bells across a nation that attaches great importance to family harmony. Data from the Ministry of Civil Affairs shows that 2.87 million couples divorced in 2011, a rise of 7.3 percent from 2010. The new housing policies have sparked concerns, because many couples have tried to evade them by getting divorced but continuing to live together, and buying property as single people rather than as a couple. Chu Zhiwei, 40, a landscape designer at a real estate company in Beijing, said she'd read reports about "fake divorces" many times. Usually, she would raise her an eyebrow and laugh at these "pragmatic" people, and she certainly didn't imagine that one day she would almost join the fake divorce army. Chu and her husband own two apartments in the capital, one of them in the Guomao Central Business District, which is near her office. However, for the sake of their son's education, they planned to buy another home in the Taiyanggong area, close to a middle school noted for its high enrollment rate to elite universities. Zhang and husband Wang Gang have stable jobs and some savings, but they still can't afford to pay cash for the 70,000 Yuan-persquare-meter apartment they plan to buy. China's banks have already ceased to provide mortgage facilities for people looking to buy a third home, so Chu had no alternative but to work out the divorce plan. Her husband was against the idea initially, but faced with his 43


Magazine_Layout 1 5/16/2013 9:40 PM Page 46

Real estate

wife's insistence, he consented to the plan. The new house price control policies were implemented just as the couple discussed the content of their divorce agreement. The measures proved a killer blow. "We chose to wait in the hope the new policies might cool the market and lead to lower prices. But who knew the authorities would introduce a new rule banning single adults with a permanent Beijing residence registration (known as hukou) from buying a second home?" said Chu. "The two houses are registered to both of us. Now even if we divorce, we still won't qualify to buy. We should have done it earlier," she said, regretfully. Chu was very sad, but Wang happily tore up the divorce papers. He admitted that suddenly he felt very relaxed. "I think the middle school close to our home is good enough. It's really not necessary to buy an old house at a scary price just to get our son into a certain school. He didn't know about the divorce plan and we are going to keep it a secret from him," he said. When he heard about the new regulations in early March, Qiu Hu, a 26-year-old salesman originally from Heilongjiang province, abandoned his dream of owning property in Beijing, the city he has worked in for ďŹ ve years. "In my opinion, the new regulations are generally making it harder to buy property, because buyers will eventually pay most of the extra taxes," he said. "The measures might curb prices over the long term, but I can't wait because I got married this year." According to Chinese tradition, the husband is responsible for providing a home for the family. A week before Beijing launched the new regulations at the end of 44

March, Qiu bought a two-bedroom apartment in Yanjiao, Hebei province. "It is right on the border of Beijing and Hebei," he said. "It is like the Beijing suburbs, only further out." Although the area borders the capital, different polices are in place; unlike Beijing, purchasing a property doesn't require a local hukou. For most beipiao, or Beijing drifters - people such as Qiu, who work in the capital but don't have hukou or own property - have turned to "border" areas such as Yanjiao. There are fewer restrictions in Yanjiao and property prices are lower, but the costs mount up in other ways. It takes 60 minutes for Qiu to drive to work, even in the best trafďŹ c conditions. "And also I feel lost," he said. "Once you cross the border, it's not Beijing anymore, and everything is different." Qiu said the infrastructure and educational resources also lag behind those in the capital. "Even the heating is switched off a few days earlier than in Beijing," he said. Text messages sent by the local telecom carriers continually remind him he is not in the capital. "Every time I get home, a message pops up saying 'Welcome to Hebei!' Many young people dream of living in a big city and becoming successful, but this is the moment the dream gets busted." He had planned to sell his apartment in Yanjiao a few years after purchase and use the proceeds to buy an apartment in the city, but as the new regulations have imposed stricter rules on the sale of second-hand houses, Qiu said his back-up plan doesn't seem practical anymore. "I am going to wait," he said. "Maybe they will change the policy again. Who knows?" 45


Magazine_Layout 1 5/16/2013 9:40 PM Page 48

Construction

The news that the policies were being introduced saw huge numbers of potential buyers taking the plunge to ensure they didn't get caught out by another rapid price increase. "Our experience and instincts told us the new polices would be stricter than ever. If we didn't grasp the cha nce, w e ma y ha v e l os t i t forever. The price of new homes was sure to increase a lot because of these new p ol i ci es a nd w e s i mp l y w oul d not be able to afford a home i f w e d i d n't a ct q ui ckl y ." Bendza and his wife had been saving for several years and with the help of a friend they quickly found and bought an apartment in the north of Beijing, close to the airport. "The facts show that our decision was a wise one. The price of our new apartment rose hugely in the space of just 20 days," he said. "I suggest that next time the government should undertake more research into the property market. Also, consult a greater number of people from all walks of life to work out really effective policies that will benefit the majority of people and not just a small number." After months of searching and then decorating, Ding Hao, a 26-year-old dancer from Hubei province, finally moved into his new home in Beijing last Some foreigners are instantly recognizable to Chinese people and Luc Bendza, 43, from Gabon is one of them. He often appears on Chinese television performing martial arts, and has played a number of roles in several popular movies and TV plays. Initially attracted by Chinese kung fu films, he moved to China in 1983. In addition to his acting work, Bendza helps Chinese enterprises to invest in African countries.

46

In many people's eyes, he's a star and so they assume he owns a large house or a villa. However, Beijing's highly inflated house prices are as big headache for him as every one else. "The longer I stay in China, the more I like the Chinese, I think. During the past two decades, I have waited for property prices to fall so I could afford to really settle down in Beijing. However, prices have risen ever higher following the intro-

duction of each new control measure," said Bendza. "My desire to have my own apartment has grown since my son was born last year. I feel obliged to give him a stable life and, to me, an apartment of our own is a guarantee of that stability," he said. "I know the property policies well. My wife is Chinese and she and I discussed the subject a lot before the new control polices came into force on March 31."

month. Technically speaking, the 56-square-meter loft, which cost 10.5 million yuan, is not his home but his office, because he bought a commercial, not residential, property. "But nobody really uses these places as offices. All my neighbors are doing the same thing as me," said Ding. His community, between the East Fifth and Sixth Ring Roads, doesn't look like a business district; laundries and massage parlors have opened and the streets are full of people walking their dogs or pushing baby strollers. "You would never know that I live in a commercial building, unless you saw my property certificate which says 'commercial' instead of 'residential'," said Ding. However, his dream of owning an apartment and settling down in the city is strong enough for him to pay the higher costs for a commercial property. "I have a stable job and it's time to settle down. The symbol of settling down is buying your own place." He has spent 170,000 Yuan on decorating "the office", transforming it into a cozy apartment with wooden floors and crimped curtains. "I know it's not a perfect longterm plan," he admitted. "I am thinking buying a real residence, but the new regulations just seem to make it even harder to do that."

“Ou r e x p e rie n c e a n d in stin c ts to ld u s th e n e w p o lic e s wo u ld b e stric te r th a n e v e r. If we d id n ' t g ra sp th e c h a n c e , we ma y h a v e lo st it fo re v e r. Th e p ric e o f n e w h o me s wa s su re to in c re a se a lo t b e c a u se o f th e se n e w p o lic ie s a n d we simp ly wo u ld n o t b e a b le to a ffo rd a h o me if we d id n ' t a c t q u ic k ly ." 47


Magazine_Layout 1 5/16/2013 9:40 PM Page 50

Industry

1Alibaba buys 18% stake of Weibo

BEIJING - E-commerce giant Alibaba has purchased 18 percent stake of China's popular microblogging service Sina Weibo for $586 million, Sina Corp has announced. Sina said in a statement on its website that its subsidiary Weibo and Alibaba China has signed an agreement for strategic cooperation to capitalize on their respective advantages in social networking and e-commerce. They will cooperate in the fields of user accounts sharing, data exchanges, online payment and online marketing, and explore an effective model of socialized e-com48

merce based on Weibo's large user base and Alibaba's business platform, the statement said. "The strategic cooperation is expected to bring Weibo about $380 million of revenue from marketing and socialized e-commerce in the next three years," the statement said. Alibaba bought about 18 percent of Weibo's stake by paying $586 million for its preferred and common stocks. Alibaba has the option to raise its stake to 30 percent in the future by stipulated way of pricing, according to the statement. Cao Guowei, Sina's chair-

man and CEO, said the cooperation with Alibaba will allow Weibo to make sturdy and imaginative strides in establishing a unique business model. Alibaba's board chairman Ma Yun said the cooperation of the two platforms is not only conducive to Alibaba's distribution and development in the mobile internet field, but also bring Weibo users more unique and long-lasting services. Weibo is the most popular microblogging service in China. Its users surpassed 500 million by the end of 2012, up 74 percent from a year earlier, the company's data showed.(XINHUA)

CCEDIGEST  

MAGAZINE DIGEST

Read more
Read more
Similar to
Popular now
Just for you