2009 December | AsiaLynx

AsiaLynx Top Stories – 12/29/2009

Asia News Survey, AsiaLynx Top Stories 30.12.2009 Comments Off

Japan mulls turning JAL into domestic carrier: TOKYO: The Japanese government is discussing an option to strip debt-ridden Japan Airlines (JAL) of its international operations to enable it to survive as a domestic carrier, a newspaper reported on Thursday.” (Via Channel NewsAsia Business News.)

McDonald’s Aids Re-construction Of Four Schools In Sichuan: The re-construction of four primary schools that were destroyed during the 5.12 Sichuan earthquake in 2008 will be completed by the end of 2008 and one of the major contributors for the re-construction is McDonald’s. Located in Pingwu county in Sichuan province, the new school building of Yetang Primary School has recently been completed and put [...] (Via ChinaRetailNews.com.)

Business › Toyota’s 2009 auto sales in Asia to top those in Japan for 1st time: Auto sales by Toyota Motor Corp in Asia other than Japan will outnumber those in the domestic market in 2009 for the first time due…” (Via Japan Today: Japan News and Discussion – Business.)

Japan mulls plan to withdraw JAL international services: The government is considering transferring all international flights operated by the financially troubled Japan (Via Mainichi Daily News – All Stories.)

PetroChina buys into Canadian oil sands: “PETROCHINA has won approval to buy a stake in two Canadian oil-sands projects in its biggest North American acquisition. China’s largest oil producer will pay US$1.8 billion to buy a 60 percent stake in the MacKay… (Via Shanghai Daily: Business.)

Tags: Asia business, Asia news
Costco to set up logistics and distribution center in Taoyuan

Taiwan 26.12.2009 Comments Off

Costco to set up logistics and distribution center in Taoyuan: “Taipei, Dec. 25 (CNA) Costco Wholesale Corp. will set up a Taiwan logistics and distribution center in Taoyuan County at the end of next year, a move expected to significantly cut its cost of distribution, which is currently being outsourced, a county official said Friday.

After factoring in the bright prospects for the Taoyuan Aerotropolis development project and the northern county’s favorable geographic location, Costco decided to set up the center there to facilitate the distribution of products to its various branches around Taiwan, according to the official from the county’s Economic Development Department.

Costco, the largest membership warehouse club chain in the United States, expects to invest NT$800 million (US$24.81 million) in the center and two new big box outlets in northern and southern Taoyuan.

This was the first large-scale investment project in the county to be announced since Magistrate John Chih-yang Wu assumed his post earlier this month, and the economic development official said it should help stimulate the development of related industries.

Ahmen Lee, Costco Taiwan’s regional marketing manager, confirmed the project earlier Friday and said Costco decided to locate the center in Taoyuan because it is a very important market in Taiwan and home of Taiwan Taoyuan International Airport.

The planned logistics center, to cover an estimated 49,600 square meters, will be located in Dayuan Township.

The two Costco branches to be set up in the county at yet-to-be finalized locations will allow local Costco members to shop only a short distance from their homes, rather than needing to travel to Costco outlets in Taipei or Hsinchu as they do now, Lee added. (By Chiu Chun-chin and Y.L. Kao)” (Via Taiwan Headlines – Business.)

Tags: Costco, Taiwan, Taoyuan
AsiaLynx Top Stories – 12/25/2009

AsiaLynx Top Stories 25.12.2009 Comments Off

Jumbo jet on track with nose delivery:
CHINA’S jumbo jet manufacturer received the main structure of a sample jet nose in Shanghai yesterday as it continues on its path to build a domestically-made 150-seat jet to compete against its United States and… (Via Shanghai Daily: Business.)

Geely says Volvo to remain the same:
CHINA’S Geely would barely lay a finger on Ford Motor Co’s Volvo if it succeeds in acquiring the Swedish luxury car brand, the firm’s top executive was quoted by media as saying yesterday. Volvo’s current production… (Via Shanghai Daily: Business.)

JR Tokai to start work on maglev in ’14 or ’15: “Central Japan Railway Co. President Masayuki Matsumoto said Thursday the company plans to begin construction in 2014 or 2015 on the Chuo Shinkansen, a maglev train line between Tokyo and Nagoya it plans to have up and running by 2025. It is the first time that JR Tokai has indicated a start date for work on the high-speed line. The company plans to hasten negotiations with local governments along the line regarding matters such as route selection and the selection of intermediate stations. (Yomiuri) (Via News On Japan.)

Facebook traffic jumps in Japan but It still lags Mixi: Facebook has seen an almost fourfold increase in the number of visitors to its Web site from Japan in the last year but the site still lags far behind market-leader Mixi, according to data released on Thursday by NetRatings Japan. In November 1.39 million unique visitors accessed the Facebook site, up from just 355,000 visitors in November last year, said NetRatings. Growth has been trending upwards throughout the year but became stronger three months ago when monthly visitors were at the 767,000 mark. The figures are extrapolated from data gathered from a panel of several thousand users in offices and homes. (PC World) (Via News On Japan.)

Singapore’s Industrial Production declines: Singapore reported a fall of 3.6 per cent in its industrial production in November, mainly due to the decline in output by pharmaceutical companies. Manufacturing accounts for around 25 per cent in the economy of the city-state which declined 8.2 percent in November, according to the Economic Development Board. Singapore’s economic prospectuses are largely dependent on the revival of overseas sales. Government believes that low recovery in demand of Companies such as Stats Chippac Ltd may prove detrimental for the Singapore economy. (Via TopNews Singapore.)

Tags: Asia business, Asia news
Chinese airlines’ spirits soar with maiden Boeing 787 flight

China 23.12.2009 Comments Off

A Boeing 787 Dreamliner flies over onlookers during its maiden test flight in Washington on Tuesday. (Agencies)

By Xin Dingding (China Daily) – Chinese airlines breathed a collective sigh of relief this week after Boeing completed the long-delayed first test flight of its new 787 Dreamliner.

The three-hour maiden flight on Tuesday of the light and fuel-efficient airplane was cut short from the planned five because of bad weather.

Boeing said on Tuesday it hopes to deliver its first 787 – to Japan’s All Nippon Airways – during the fourth quarter next year.

Boeing China yesterday declined to say when it hopes to deliver aircraft ordered by Chinese customers. A source with China Southern, the largest domestic airline by fleet size, said it expects to receive 10 starting in 2011.

“We plan to use the 787 jet to gradually replace part of our Boeing 777 jets on international flights to Europe, America and Australia,” the source, who declined to be named, told China Daily.

State broadcaster CCTV said industry insiders believe the 787 will become one of the main models in China.

The aircraft, which has been described as “game-changing”, went no higher than 4,572 m, at a maximum speed of about 333 km per hour, during its test flight but it was hailed as “a milestone” for aviation.

The United States aerospace giant hopes the Dreamliner will revolutionize the airline industry worldwide.

The medium-sized, twin-aisle 787 is being marketed as the world’s first passenger airplane made largely from lightweight composite materials, such as carbon fiber. Other passenger jets are made mainly from aluminum and titanium.

Because it is so light, the plane will use 20 percent less fuel than comparable aircraft and produce fewer emissions, Boeing said.

David Wang, president of Boeing China, said the 787 is also “a milestone in Boeing’s partnership with China’s aviation industry” because three Chinese companies – from Chengdu, Harbin and Shenyang – are producing its rudder, wing-to-body fairing and vertical fin leading edge.

Among the three, Chengdu Aircraft Corp is Boeing’s sole supplier of the 787′s rudder.

“This signifies that China’s aviation industry is no longer a contract manufacturer, but has entered strategic cooperation (with Boeing) in the development of an advanced passenger jet,” Boeing China said in a news release. – read more at ChinaDaily.com…

Tags: 787, Airlines, Boeing, China, China Southern, Dreamliner
AsiaLynx Top Stories – 12/23/2009

AsiaLynx Top Stories 23.12.2009 Comments Off

China’s Retail Sales Up 15.8% In November 2009: “China’s National Bureau of Statistics has published its major economic indices for November 2009 showing that the country’s retail sales of the country rapidly during the month. According to the statistics, China’s total retail sales in November 2009 increased by 15.8% year-on-year to CNY1.134 trillion although the growth rate was five percentage points lower in than [...]” (Via ChinaRetailNews.com.)

China’s 30-year CPI Growth Systemically, Greatly Under-counted: “In China’s current statistical data system, CPI (consumer price index) is the most questioned. Recently, a spokesman from the National Bureau of Statistics said: ‘The change of CPI from negative to positive in November mainly resulted from increasing food and housing prices, and there is no inflation at present. …” (Via ChinaStakes.)

Record price for land plot in Shanghai: “THE highest price on record on China’s mainland for housing land was paid in Shanghai yesterday. A wholly owned subsidiary of China State Construction Engineering Corp acquired a 114,500-square-meter land plot… (Via Shanghai Daily: Business.)

China automaker to acquire Volvo from Ford: “Chinese automaker Geely International Corp. said Wednesday it has reached a basic agreement with Ford Motor Co. to buy Sweden’s Volvo Car Corp. from the financially struggling U.S. automaker. The deal comes on the heels of General Motors Co.’s sale of its Hummer SUV division to a Chinese construction machinery maker based in Sichuan Province.” (Via Kyodo News (Business).)

Asian startup hedge funds beat peers: “(TOKYO) Asian startup hedge funds have returned an average 22 per cent this year, beating global peers and boosting their chances of attracting investors in 2010.” (Via Business Times Online – All The Headlines.)

Tags: Asia business, Asia news
AsiaLynx Top Stories – 12/22/2009

AsiaLynx Top Stories 22.12.2009 Comments Off

Sai Yeung Choi Street, Hong Kong (photo: Randal Rayborn)

East-west China highway completed: “A highway section started a trial operation Saturday, marking the completion of China’s east-west trunk line linking Shanghai to Chongqing.

The 320-km-long Hurongxi Section, in Hubei Province, finally joined up the 1,900-km-long Shanghai-Chongqing National Highway, reducing trip between the two destinations to 17 hours.

Construction of the section started seven years ago, during which workers erected 370 bridges, dug 46 tunnels and paved roads through steep mountain ranges by ove …”

(Via Business – People’s Daily Online.)

China’s Lining To Open New Store In U.S.: “Chinese sports supplies brand Lining has said that it will open its first store outside the Asia region in the United States in January 2010.
In addition, the company will open a badminton products specialty store in Hong Kong before the end of December 2009 as a preparation for its internationalization.
Zhang Zhiyong, the CEO of Lining, [...]“

(Via ChinaRetailNews.com.)

Best Buy Announces Further Expansion In China: “Inspired by a dramatic increase in sales in the Chinese market, the global electronics retailer Best Buy has announced that it plans to open ten to fifteen new stores in China in 2010.
One of the world’s largest leading consumer electronics retailers, Best Buy currently operates eight BestBuy stores in China as well as 167 outlets [...]“

(Via ChinaRetailNews.com.)

IBM, Beijing University Of Technology Jointly Set Up Cloud Computing Experimental Platform: “IBM has announced that it will cooperate with Beijing University of Technology to set up [...]“

(Via ChinaTechNews.com.)

US accuses China of trade restrictions: “Washington says Beijing is moving towards a more restrictive trade regime. The US Trade Representative’s Office says China continues to limit market access for foreign suppliers, and some of its practices raised questions over its World Trade Organisation obligations. But, the US Trade Representative’s ’8th Annual Report on China’, did note that talks with Beijing produced some concrete progress, in areas ranging from agricultural products, clean energy and government procurement.”

(Via RTHK On Internet – Finance News.)

Business › ANA orders 10 Boeing jetliners: “All Nippon Airways has ordered 10 Boeing jetliners. Boeing said Monday the order is for five 777s and five 767s, both the extended-range models. The…”

(Via Japan Today: Japan News and Discussion – Business.)

Toyota presses parts makers for 30% cut in costs: NAGOYA (Kyodo) Toyota Motor Corp. has notified affiliated parts manufacturers that it plans to cut procurement costs for auto parts by a combined 30 percent by 2013, sources said Tuesday.
The move, aimed at marketing new car models in Japan and abroad at lower prices, would benefit people intending to buy new vehicles but is expected to weigh on the operations of Toyota’s subcontractors and sub-subcontractors.

(Via The Japan Times: News & Business.)

Singapore Casino Resort to Open in March End:

With the global slowdown finally receding, a whole lot of projects will get to see light of day. One of the most promising ones is Las Vegas Sands’ $5.5 billion Singapore casino resort, which saw stalled work for want of sand and workers.

read more

(Via TopNews Singapore.)

Ford nears Volvo deal with China’s Geely: “STOCKHOLM: US auto giant Ford and Zhejiang Geely Holding could reach an agreement on Wednesday on the sale of Ford’s Swedish brand Volvo to the Chinese carmaker, Swedish television reported.”

(Via Channel NewsAsia Business News.)

Singapore Airlines to make changes in routes:

Singapore Airlines is going to make major changes on its air routes in a bid to streamline its air operations. The carrier may increase frequency to various routes besides suspending operations to some destinations including Pakistan and Nanjing in China. The last Singapore-Karachi-Lahore flight and Singapore-Nanjing service would be on February 17 and March 26.

read more

(Via TopNews Singapore.)

U.S. beef to be debated on Dec. 29: “(ChinaPost.com.tw) – After a month-long deadlock over the controversial issue of U.S. beef imports, legislative caucuses of Taiwan’s ruling and opposition parties reached a consensus Tuesday that they will meet for a ‘final showdown’ over the issue on Dec. 29.”

(Via China Post Online – Taiwan , News.)

Tags: Asia business, China, Japan, Singapore, Taiwan
Mercedes-Benz: China sales to surpass UK, then US

China 22.12.2009 Comments Off

The S-Class has found its biggest fans in China, where 12,500 units of the model were sold in the first 11 months of this year, the most of any market in the world.

By Gong Zhengzheng (China Daily) – Due to robust sales in the world’s most populous country, Mercedes-Benz expects China to unseat the United Kingdom (UK) as the company’s third-largest passenger car market in the world in 2010.

Joachim Schmidt, executive vice-president of Mercedes-Benz Cars for sales and marketing, told China Daily last week that China would then soon supplant the United States for the No 2 spot.

“I personally believe that China will surpass the United States within two or three years,” Schmidt said.

China now is the luxury carmaker’s fourth-biggest market after Germany, the US and UK.

He said Mercedes-Benz expects to sell around 100,000 cars on the Chinese mainland next year.

Klaus Maier, president and CEO of Mercedes-Benz China Ltd, said recently that the company’s mainland sales would reach 65,000 cars this year, up 65 percent from 2008.

Mercedes-Benz’s sales on the mainland surged 68 percent in the first 11 months to 59,200 units, including 12,500 units of the S-Class, 6,400 new-generation E-Class cars, 14,500 locally produced C-Class vehicles and 14,000 SUVs.

Strong S-Class sales have made China the world’s biggest market for the model.

In November alone, Mercedes-Benz’s mainland sales hit an all-time monthly record of 8,500 cars, rocketing 224 percent from a year ago.

“The luxury car market in China will continue dynamic growth for a few years thanks to the country’s steady economic growth,” Schmidt said.

He said Mercedes-Benz plans to launch 16 all-new car models in the next two years globally, most of which will be introduced into the Chinese market to meet growing demand. – read more at China Daily.com…

Tags: automobile, China, Mercedes-Benz
Shanghai employers go to US to hire returning Chinese

China 22.12.2009 Comments Off

The trading floor of the Shanghai Stock Exchange

By Kelly Chung Dawson (China Daily) – In response to a government mandate to make Shanghai a global financial center by the year 2020, Shanghai officials have teamed up with 17 major financial institutions to recruit in the United States, Canada and Singapore, with a focus on overseas Chinese talent.

“Financial institutions in Shanghai are just beginning to develop and build their capacities,” said a Shanghai municipal representative, who did not want to be named, during an interview with China Business Weekly.

“There is a lack of sufficient human resources at the senior levels,” the source said.

A Dec 5 job fair held in New Jersey and organized by the Shanghai Financial Development Services Office listed 117 jobs and attracted more than 700 candidates.

A similar job fair held last year at the height of the financial crisis attracted so many candidates that organizers were concerned about fire safety.

Ultimately, last year’s fair yielded 66 hires, according to officials. This year, the fair was held in a larger space at the Westin Hotel in New Jersey.

Hopeful candidates waited in long lines that stretched around the room for a chance to speak with representatives from companies that included Bank of Communications, China UnionPay and the Shanghai Futures Exchange.

In addition to the attractive salaries being offered, a 1 million yuan ($146,500) cash bonus will go to those recognized by the government’s 1,000 People Plan, a project announced earlier this year to facilitate the recruitment of overseas Chinese talent in various fields

Of last year’s 66 hires, six were recognized under the 1,000 People Plan.

Some reports suggested that the new employees will also receive tax breaks, but officials deny this.

In the past, major corporations have often recruited foreigners to fill senior management positions in China. However, experts have noted a major trend toward overseas Chinese returning home to work in higher-level positions.

Of the applicant pool, less than 10 were foreigners, said John T. Wu, the president of Triway International Group, which helped organize and market the event.

The Washington DC-based Triway targeted overseas Chinese and Chinese American talent, working closely with Asian-American interest groups and universities to reach potential candidates. The candidates were required to speak fluent Mandarin.

But government officials said that relevant experience would ultimately matter most.

“There is not a particular concern about the nationality of a person,” the representative said.

“So long as they are qualified for the positions, they would all be considered,” he said. – read more at ChinaDaily.com…

Tags: China, Finance, jobs, Shanghai
Rising Chinese middle class offers opportunities for Western firms: US expert

China 19.12.2009 Comments Off

China's middle class is younger than the USA's

(Xinhua) – The rising Chinese middle class, currently ranging between 100 million and 200 million in number, has offered great opportunities for Western companies to sell their goods and services, said a seasoned US-China business expert in Chicago.

In a recent interview with Xinhua, Phil Corse, the Kellogg Adjunct Professor of Global Marketing at Northwestern University, said: “To put it into perspective, the number of China’s emerging middle class is equal or even greater than the entire population of Japan. They are moving up very quickly to buy more home appliances, cars, computers, luxury goods, etc.”

Corse has a classical, disciplined and analytical marketing background and has worked for several companies in consumer products and durables business. He has been working with China for over 15 years and travels to China 3-4 times a year.

According to Corse, China is no longer simply a low-cost manufacturing base for international companies as most people assume, and the burgeoning middle class in China is creating enormous market opportunities for Western companies.

It signifies a large and still growing market of those with enough disposable income and strong purchasing power, he noted.

“We have done the first part of manufacturing in China very well, but the second part of selling to this market is much more difficult,” he said.

Corse pointed out that compared with the US middle class, China’s emerging middle class is much younger.

“They are between 25-44 years old. And about 80 percent of them live in the 9 major coastal cities in China, which makes it a little easier to target, ” he said.

When analyzing Chinese consumers’ characteristics, Corse thinks that they are very pragmatic and inspirational.

“They are savers but also spenders looking for products that they can identify with and express themselves with,” he observed.

Talking about the effective ways to reach the middle class, Corse suggested to start with Chinese social networks, mobile marketing and local advertising.

Looking into 2010, Corse believes that the increasing trend is that the US economy is transferring from a consumption economy to a stimulus economy.
“We have no choices but to look at other places in the world. My No. 1 place is of course China. India is not quite ready yet,” he added.

Having been doing business with China over the last 15 years, Corse is constantly impressed by the tremendous support he received from the Chinese government, both at central and local level.

“In China, we as foreigners are looking at the Chinese government as partners. But in the US we look at the government as barriers because they are not as supportive as Chinese government when it comes to help small and medium businesses,” Corse said. – read more at ChinaDaily.com…

Tags: China, China economy, China middle class
China Airlines chairman says company may post 2010 profit

Taiwan 17.12.2009 Comments Off

Taipei-based China Airlines Boeing 747-400

TAIPEI, Taiwan (The China Post) — China Airlines, Taiwan’s largest carrier, said it may post a profit in 2010 as the global economy rebounds.

“We may have a chance to be profitable next year as the economic recovery boosts demand for our cargo and passenger services,” Chairman Philip Wei told reporters in Taoyuan, where Taiwan’s biggest airport is located. The company celebrated its 50th anniversary yesterday.

China Airlines, based in Taipei, in October posted a third-quarter loss of NT$2.62 billion, narrower than the NT$5.88 billion deficit it reported a year earlier. Improving cross-strait ties have allowed the company to add more mainland flights, offsetting a global slump in passenger and air-cargo demand. Airlines worldwide may lose a total of US$11 billion this year, according to the International Air Transport Association.

China Airlines climbed 0.5 percent to close at NT$10.75 on the Taiwan Stock Exchange. The stock has lost 1.8 percent this year, compared with the 69 percent gain on the benchmark TAIEX index. – read more at The China Post…

Tags: Airlines, China Airlines, Taiwan