He needs to step down from his high hat and see the real reality of rising ChinaMarkus ain't gonna like how Chinese companies buying up Italian assets
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DJI is about to become the first billion dollar consumer drone company
The company did around $500 million in sales during 2014 and is on pace to double that this year
Ben Popper
March 12, 2015
Over the last two years Da-Jiang Innovations, better known as DJI, has emerged as the world’s most popular consumer drone maker, at least by revenue. And The Verge has learned that the company is currently in talks with Silicon Valley’s top venture capital firms to potentially raise a new round of funding.
Sources familiar with the negotiations say DJI reported around $500 million in revenue for 2014, roughly four times what it did in 2013, and is on pace to do about $1 billion in sales this year. The potential valuation of the company would be a healthy multiple of that, several billion dollars, although no deal has yet been finalized.
The company helped bring small, powerful drones to the masses with its Phantom line of quadcopters, our favorite unit during last year’s testing. In doing so, the Shenzhen based firm became one of the first Chinese companies to help forge a new category of consumer electronics at global scale. The Phantom was simple enough for beginners, but powerful enough to interest serious hobbyists, professional photographers, and filmmakers. Last year we dubbed it “the kleenex of drones,” and that ubiquity has become a very big business.
With over 2,800 employees, DJI now has offices in Shenzhen, Hong Kong, Los Angeles, Rotterdam, Tokyo, and Kobe. It sells several different variations of its Phantom drone, as well as its higher-end “prosumer” unit, the Inspire One, and its much larger S-class units. It also has a popular line of gimbals used for stabilizing cameras during flight, and has translated that technology into a handheld camera stabilizer, the Ronin, used by film and TV professionals.
The company was founded in 2006 by Frank Wang, then a student at the Hong Kong University of Science and Technology. Originally DJI was centered on building flight control systems for model helicopters, which Wang had loved since childhood. But as multi-rotor drones began to gain popularity, Wang deftly turned the company toward that market.
Before the Phantom, most highly capable consumer drones were sold to serious hobbyists and required a lot of assembly and know-how. The French company, Parrot, had a simple, popular unit with its A.R. Drone, but that was not a very powerful craft. The Phantom represented the first relatively cheap drone that came ready to fly out of the box, but boasted top of the line flight control systems. They also had a potent pitchman in Colin Guinn, who we met for the first time at SXSW in 2012. North America represents DJI’s biggest market.
Mr. Guinn has since left for rival drone maker 3D Robotics, which two weeks ago announced a $50 million round of funding led by Qualcomm. And Parrot recently released its own more powerful quadcopter, the Bebop, taking direct aim at DJI’s Phantom line. Up until now, DJI had taken on relatively little outside capital, preferring to bootstrap the business. But as competition heats up, it is considering taking on venture capital to help maintain its lead and potentially branch out into new sectors of the booming drone market.
DJI is about to become the first billion dollar consumer drone company | The Verge
The company did around $500 million in sales during 2014 and is on pace to double that this year
Ben Popper
March 12, 2015
Over the last two years Da-Jiang Innovations, better known as DJI, has emerged as the world’s most popular consumer drone maker, at least by revenue. And The Verge has learned that the company is currently in talks with Silicon Valley’s top venture capital firms to potentially raise a new round of funding.
Sources familiar with the negotiations say DJI reported around $500 million in revenue for 2014, roughly four times what it did in 2013, and is on pace to do about $1 billion in sales this year. The potential valuation of the company would be a healthy multiple of that, several billion dollars, although no deal has yet been finalized.
The company helped bring small, powerful drones to the masses with its Phantom line of quadcopters, our favorite unit during last year’s testing. In doing so, the Shenzhen based firm became one of the first Chinese companies to help forge a new category of consumer electronics at global scale. The Phantom was simple enough for beginners, but powerful enough to interest serious hobbyists, professional photographers, and filmmakers. Last year we dubbed it “the kleenex of drones,” and that ubiquity has become a very big business.
With over 2,800 employees, DJI now has offices in Shenzhen, Hong Kong, Los Angeles, Rotterdam, Tokyo, and Kobe. It sells several different variations of its Phantom drone, as well as its higher-end “prosumer” unit, the Inspire One, and its much larger S-class units. It also has a popular line of gimbals used for stabilizing cameras during flight, and has translated that technology into a handheld camera stabilizer, the Ronin, used by film and TV professionals.
The company was founded in 2006 by Frank Wang, then a student at the Hong Kong University of Science and Technology. Originally DJI was centered on building flight control systems for model helicopters, which Wang had loved since childhood. But as multi-rotor drones began to gain popularity, Wang deftly turned the company toward that market.
Before the Phantom, most highly capable consumer drones were sold to serious hobbyists and required a lot of assembly and know-how. The French company, Parrot, had a simple, popular unit with its A.R. Drone, but that was not a very powerful craft. The Phantom represented the first relatively cheap drone that came ready to fly out of the box, but boasted top of the line flight control systems. They also had a potent pitchman in Colin Guinn, who we met for the first time at SXSW in 2012. North America represents DJI’s biggest market.
Mr. Guinn has since left for rival drone maker 3D Robotics, which two weeks ago announced a $50 million round of funding led by Qualcomm. And Parrot recently released its own more powerful quadcopter, the Bebop, taking direct aim at DJI’s Phantom line. Up until now, DJI had taken on relatively little outside capital, preferring to bootstrap the business. But as competition heats up, it is considering taking on venture capital to help maintain its lead and potentially branch out into new sectors of the booming drone market.
DJI is about to become the first billion dollar consumer drone company | The Verge
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terranMarine
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yup, a "third world country" (as he described China) buying up Italian brands with Chinese in charge. Can't get more hilarious than this when he has been bragging how Westerners own Alibaba.He needs to step down from his high hat and see the real reality of rising China
TaiShang
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Li vows reforms to help Yuan be World’s 5th Reserve Currency
March 24, 2015
Chinese Premier Li Keqiang (R) meets with Christine Lagarde, managing director of the International Monetary Fund (IMF), in Beijing, capital of China, March 23, 2015 [Xinhua]
Chinese Premier Li Keqiang on Monday asked the International Monetary Fund (IMF) to include the Chinese currency in the special drawing rights (SDR) basket, endorse the yuan as a global reserve currency alongside the dollar and euro.
Li met IMF Managing Director Christine Lagarde in Beijing on Monday.
State news agency Xinhua quoted Li as saying “China will speed up the basic convertibility of yuan on the capital account and provide more facility for domestic individual cross-border investment and foreign institutional investment in China’s capital market”.
Including the yuan in the SDR system would allow the IMF to recognize the ascent of the world’s second-biggest economy while aiding China’s attempts to diminish the dollar’s dominance in global trade and finance.
In late 2015, the IMF will conduct its next twice-a-decade review of the basket of currencies its members can count toward their official reserves.
SDRs are international foreign exchange reserve assets. Allocated to nations by the IMF, an SDR represents a claim to foreign currencies for which it may be exchanged in times of need.
Although denominated in US dollars, the nominal value of an SDR is derived from a basket of currencies, with, specifically, a fixed amount of Japanese yen, US dollars, British pounds and euros, without RMB.
China would need to satisfy the Washington-based lender’s economic benchmarks and get the support of most of the other 187 member countries.
At the time of the last SDR review in 2010, the RMB met the export criterion, but was assessed as not meeting the “freely usable” criterion. Since then there have been a number of developments in the RMB’s international use, and the upcoming review will take stock of these developments, IMF Chief Lagarde said on Friday.
Li told Lagarde, “China will push forward financial reform for the real economy and prevention of risk. China will develop private, small and medium banks to provide better support for small businesses”.
“China hoped to, through the SDR, play an active role in the international cooperation to maintain financial stability and promote the further opening of China’s capital market and financial area,” he added.
The yuan became the world’s No. 2 currency for trade finance globally in 2013, and overtook the Canadian and Australian dollars to enter the top five world payment currencies in 2014, according to global transaction services organization SWIFT.
China said the yuan has also been used as a reserve currency in some countries and regions.
World's fifth largest tire maker. Not bad...
March 24, 2015
Chinese Premier Li Keqiang (R) meets with Christine Lagarde, managing director of the International Monetary Fund (IMF), in Beijing, capital of China, March 23, 2015 [Xinhua]
Chinese Premier Li Keqiang on Monday asked the International Monetary Fund (IMF) to include the Chinese currency in the special drawing rights (SDR) basket, endorse the yuan as a global reserve currency alongside the dollar and euro.
Li met IMF Managing Director Christine Lagarde in Beijing on Monday.
State news agency Xinhua quoted Li as saying “China will speed up the basic convertibility of yuan on the capital account and provide more facility for domestic individual cross-border investment and foreign institutional investment in China’s capital market”.
Including the yuan in the SDR system would allow the IMF to recognize the ascent of the world’s second-biggest economy while aiding China’s attempts to diminish the dollar’s dominance in global trade and finance.
In late 2015, the IMF will conduct its next twice-a-decade review of the basket of currencies its members can count toward their official reserves.
SDRs are international foreign exchange reserve assets. Allocated to nations by the IMF, an SDR represents a claim to foreign currencies for which it may be exchanged in times of need.
Although denominated in US dollars, the nominal value of an SDR is derived from a basket of currencies, with, specifically, a fixed amount of Japanese yen, US dollars, British pounds and euros, without RMB.
China would need to satisfy the Washington-based lender’s economic benchmarks and get the support of most of the other 187 member countries.
At the time of the last SDR review in 2010, the RMB met the export criterion, but was assessed as not meeting the “freely usable” criterion. Since then there have been a number of developments in the RMB’s international use, and the upcoming review will take stock of these developments, IMF Chief Lagarde said on Friday.
Li told Lagarde, “China will push forward financial reform for the real economy and prevention of risk. China will develop private, small and medium banks to provide better support for small businesses”.
“China hoped to, through the SDR, play an active role in the international cooperation to maintain financial stability and promote the further opening of China’s capital market and financial area,” he added.
The yuan became the world’s No. 2 currency for trade finance globally in 2013, and overtook the Canadian and Australian dollars to enter the top five world payment currencies in 2014, according to global transaction services organization SWIFT.
China said the yuan has also been used as a reserve currency in some countries and regions.
yup, a "third world country" (as he described China) buying up Italian brands with Chinese in charge. Can't get more hilarious than this when he has been bragging how Westerners own Alibaba.
World's fifth largest tire maker. Not bad...
TaiShang
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Yahoo staff in hot demand
China Daily, March 24, 2015
Yahoo Inc's announcement last week that it was shutting up shop in the Chinese mainland has seen a rush by Internet companies across the country to attract its staff.
As China's booming Internet industry continues to gain momentum, companies are competing fiercely for the best talent.
The coffee house below Yahoo's Beijing office was overwhelmed with human resources staff on Monday.
"We have been in contact with a dozen Yahoo employees since last week," said Pony Liu, director of VIP.com, an online retailing platform dedicated to selling discounted brand products, adding it had around five vacancies.
"We are looking for young engineers who are interested in e-commerce, but the fight is so intense."
The scramble for Yahoo's more than 200 engineers started shortly after the United States Internet giant announced on Wednesday it was to close its Beijing research and development center.
Even industry heavyweights such as Baidu Inc and JD.com Inc are believed to be finding it hard to hire enough staff, according to recruitment specialists.
"The burgeoning Internet sector has resulted in a considerable shortage of talent, especially in cutting-edge technologies such as cloud computing and mobile technologies," said Rio Goh, China country head of employment adviser group Morgan McKinley.
Salaries in the talent-starved sector are rising as a result. A recent report by Morgan McKinley shows that software engineers can expect to earn 15,000 yuan ($2,410) to 25,000 yuan a month.
But to lure exceptional individuals, cash-rich Chinese enterprises are willing to offer a lot more, maybe as much as 50 percent, to the best candidates.
At another cafe near the soon-to-close research center, one HR representative from Huawei Technologies Co Ltd had a target list of Yahoo employees.
He said his company is willing to take on any Yahoo engineers equipped with the right skills. "We place no limit on the number," he said.
And it is not just Chinese companies reported to be on the look out for the best prospects, said recruitment experts. Multinationals too are struggling to hold on to their own.
In September, Zhang Yaqin, a long-time Microsoft Corp research executive and president of Microsoft Research Asia, for instance, joined Baidu as its president, overseeing research.
In fact, said Rio Goh, it is the main Chinese players who are now emerging as the most likely to attract ambitious young IT professionals with the best ideas.
"It's Chinese Internet startups that are attracting the most talent."
Thomas Zhang, a R&D engineer who has worked at Yahoo for five years, said he is now more inclined to work for a medium-sized Chinese enterprise, as he is likely to be given a more senior position.
"I have already had seven offers. Three of them offered to take on the whole team, and the four others were willing to promote me to project manager," Zhang said, who fully expected more offers to come his way.
***
Talking about "exiting China." LOL.
China Daily, March 24, 2015
Yahoo Inc's announcement last week that it was shutting up shop in the Chinese mainland has seen a rush by Internet companies across the country to attract its staff.
As China's booming Internet industry continues to gain momentum, companies are competing fiercely for the best talent.
The coffee house below Yahoo's Beijing office was overwhelmed with human resources staff on Monday.
"We have been in contact with a dozen Yahoo employees since last week," said Pony Liu, director of VIP.com, an online retailing platform dedicated to selling discounted brand products, adding it had around five vacancies.
"We are looking for young engineers who are interested in e-commerce, but the fight is so intense."
The scramble for Yahoo's more than 200 engineers started shortly after the United States Internet giant announced on Wednesday it was to close its Beijing research and development center.
Even industry heavyweights such as Baidu Inc and JD.com Inc are believed to be finding it hard to hire enough staff, according to recruitment specialists.
"The burgeoning Internet sector has resulted in a considerable shortage of talent, especially in cutting-edge technologies such as cloud computing and mobile technologies," said Rio Goh, China country head of employment adviser group Morgan McKinley.
Salaries in the talent-starved sector are rising as a result. A recent report by Morgan McKinley shows that software engineers can expect to earn 15,000 yuan ($2,410) to 25,000 yuan a month.
But to lure exceptional individuals, cash-rich Chinese enterprises are willing to offer a lot more, maybe as much as 50 percent, to the best candidates.
At another cafe near the soon-to-close research center, one HR representative from Huawei Technologies Co Ltd had a target list of Yahoo employees.
He said his company is willing to take on any Yahoo engineers equipped with the right skills. "We place no limit on the number," he said.
And it is not just Chinese companies reported to be on the look out for the best prospects, said recruitment experts. Multinationals too are struggling to hold on to their own.
In September, Zhang Yaqin, a long-time Microsoft Corp research executive and president of Microsoft Research Asia, for instance, joined Baidu as its president, overseeing research.
In fact, said Rio Goh, it is the main Chinese players who are now emerging as the most likely to attract ambitious young IT professionals with the best ideas.
"It's Chinese Internet startups that are attracting the most talent."
Thomas Zhang, a R&D engineer who has worked at Yahoo for five years, said he is now more inclined to work for a medium-sized Chinese enterprise, as he is likely to be given a more senior position.
"I have already had seven offers. Three of them offered to take on the whole team, and the four others were willing to promote me to project manager," Zhang said, who fully expected more offers to come his way.
***
Talking about "exiting China." LOL.
Keel
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China's indigenously built and the world's first semi-submersible cylindrical marine life-supporting platform "Hope 7" on first sea trial
Specifications
Main deck platform 66 meters in diameter (equivalent to 22 storeys)
Main hull 60 meters in diameter,
Depth 27 meters, 19 meters draft design, equipped with DP3
The platform can provide accomodations for 490 people.
世界首座半潜式圆筒型海洋生活平台出海试航_图片频道_新华网
2015年01月12日 14:55:00 | 责任编辑: 刘路 | 来源： 新华网江苏频道
1月11日，“希望7号”圆筒型海洋生活平台出海试航。(许丛军 摄)
新华网南京1月12日电 2015年1月11日，南通中远船务设计建造的“希望7号”圆筒型海洋生活平台出海试航。“希望 7 号”为世界首座半潜式圆筒型海洋生活平台，入级 DNV。平台主甲板直径66米（相当于22层楼高），主船体直径60米，型深27米，设计吃水 19 米，配备 DP3，该平台可供 490 人同时入住。
其独特的圆筒型设计理念具有技术先进性、安全稳定性和作业可靠性等方面的优势，适应各种恶劣海域环境下的安全作业。
2#
1月11日，工作人员为“希望7号”圆筒型海洋生活平台出海试航做准备。
在许多人的印象中，海洋生活平台的形象与钻井平台更加类似，但一台中国制造新装备打破了这个常规思维定势。1月11日，南通中远船务设计改造的“希望7号”海洋生活平台出海试航。作为世界上第一台半潜式圆筒型海洋生活平台，“希望7号”可供490人同时入住，其独特的圆筒型设计理念具有技术先进性、安全稳定性和作业可靠性等方面的优势。在海试期间，“希望7号”将进行推进器安装作业等一系列试验。
准备出海海试的“希望7号”
据悉，“希望7号”原来是圆筒式海上浮式储油平台，原名为“SEVAN 300”，由南通一家造船企业为挪威塞旺海事公司（Sevan Marine）设计建造。在2008年国际金融危机爆发后，由于各种因素，塞旺公司不得不暂停“SEVAN 300”储油平台的建造。
作为塞旺海事公司的长期合作伙伴，南通中远船务主动提出承接“SEVAN 300”储油平台的改装工程，并于2012年就开始对将“SEVAN 300”号改装成圆筒型半潜式海上生活平台的可行性进行市场调研，根据不同的客户制定了多套改装方案，为该项目的顺利实施奠定了技术基础。
2013年7月，在南通市政府的支持以及南通海关等部门的帮助下，经过多次谈判，塞旺公司最终同意把“SEVAN 300”号改装项目交给南通中远船务，平台被重命名为“希望7号”，于2013年9月开板建造。在安装了6个推进器底座、发电机吊运和安装、锚绞机平台、锚架安装等大量坞内工程以后，2014年6月3日、4日，“希望7号”平台顺利出坞。
“希望7号”平台出坞画面
改装后的“希望7号”平台主船体直径60米，主甲板直径66米，型深27米，操作吃水14米，甲板工作面积2200平方米，拥有DP3动力定位系统，6台5535千瓦全回转螺旋桨，9点定位锚泊系统，生活区有98个单人间、196个双人间、可供490人同时入住，平台设计使用年限20年。
同传统海洋生活平台相比，“希望7号”所以采用的圆筒型设计理念具有技术先进性、安全稳定性和作业可靠性等方面的优势，可适应各种恶劣海域环境下的安全作业。在试航期间，“希望7号”平台将进行推进器安装作业，航速、倾斜试验和DP3全球定位系统等相关试验。
“希望7号”海工改装生活平台项目开板建造_中国海洋工程网
时间:2013-09-05 16:59 来源:中国海洋工程网
日前，南通中远船务为挪威船东公司设计改建的“希望7号”（N380）海工改装生活平台项目顺利开板建造。
“希望7号”原为圆筒型半潜式FPSO半成品，此次将改建成圆筒型半潜式海工生活平台，入级DNV。改装后的平台主甲板直径66米，主船体直径60米，型深27米，设计吃水19米，配备DP-3，该平台可供490人同时入住。
Specifications
Main deck platform 66 meters in diameter (equivalent to 22 storeys)
Main hull 60 meters in diameter,
Depth 27 meters, 19 meters draft design, equipped with DP3
The platform can provide accomodations for 490 people.
世界首座半潜式圆筒型海洋生活平台出海试航_图片频道_新华网
2015年01月12日 14:55:00 | 责任编辑: 刘路 | 来源： 新华网江苏频道
1月11日，“希望7号”圆筒型海洋生活平台出海试航。(许丛军 摄)
新华网南京1月12日电 2015年1月11日，南通中远船务设计建造的“希望7号”圆筒型海洋生活平台出海试航。“希望 7 号”为世界首座半潜式圆筒型海洋生活平台，入级 DNV。平台主甲板直径66米（相当于22层楼高），主船体直径60米，型深27米，设计吃水 19 米，配备 DP3，该平台可供 490 人同时入住。
其独特的圆筒型设计理念具有技术先进性、安全稳定性和作业可靠性等方面的优势，适应各种恶劣海域环境下的安全作业。
2#
1月11日，工作人员为“希望7号”圆筒型海洋生活平台出海试航做准备。
在许多人的印象中，海洋生活平台的形象与钻井平台更加类似，但一台中国制造新装备打破了这个常规思维定势。1月11日，南通中远船务设计改造的“希望7号”海洋生活平台出海试航。作为世界上第一台半潜式圆筒型海洋生活平台，“希望7号”可供490人同时入住，其独特的圆筒型设计理念具有技术先进性、安全稳定性和作业可靠性等方面的优势。在海试期间，“希望7号”将进行推进器安装作业等一系列试验。
准备出海海试的“希望7号”
据悉，“希望7号”原来是圆筒式海上浮式储油平台，原名为“SEVAN 300”，由南通一家造船企业为挪威塞旺海事公司（Sevan Marine）设计建造。在2008年国际金融危机爆发后，由于各种因素，塞旺公司不得不暂停“SEVAN 300”储油平台的建造。
作为塞旺海事公司的长期合作伙伴，南通中远船务主动提出承接“SEVAN 300”储油平台的改装工程，并于2012年就开始对将“SEVAN 300”号改装成圆筒型半潜式海上生活平台的可行性进行市场调研，根据不同的客户制定了多套改装方案，为该项目的顺利实施奠定了技术基础。
2013年7月，在南通市政府的支持以及南通海关等部门的帮助下，经过多次谈判，塞旺公司最终同意把“SEVAN 300”号改装项目交给南通中远船务，平台被重命名为“希望7号”，于2013年9月开板建造。在安装了6个推进器底座、发电机吊运和安装、锚绞机平台、锚架安装等大量坞内工程以后，2014年6月3日、4日，“希望7号”平台顺利出坞。
“希望7号”平台出坞画面
改装后的“希望7号”平台主船体直径60米，主甲板直径66米，型深27米，操作吃水14米，甲板工作面积2200平方米，拥有DP3动力定位系统，6台5535千瓦全回转螺旋桨，9点定位锚泊系统，生活区有98个单人间、196个双人间、可供490人同时入住，平台设计使用年限20年。
同传统海洋生活平台相比，“希望7号”所以采用的圆筒型设计理念具有技术先进性、安全稳定性和作业可靠性等方面的优势，可适应各种恶劣海域环境下的安全作业。在试航期间，“希望7号”平台将进行推进器安装作业，航速、倾斜试验和DP3全球定位系统等相关试验。
“希望7号”海工改装生活平台项目开板建造_中国海洋工程网
时间:2013-09-05 16:59 来源:中国海洋工程网
日前，南通中远船务为挪威船东公司设计改建的“希望7号”（N380）海工改装生活平台项目顺利开板建造。
“希望7号”原为圆筒型半潜式FPSO半成品，此次将改建成圆筒型半潜式海工生活平台，入级DNV。改装后的平台主甲板直径66米，主船体直径60米，型深27米，设计吃水19米，配备DP-3，该平台可供490人同时入住。
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TaiShang
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Silver Lining, Open Door
Foreign companies' departure is no reason to panic
By Mei Xinyu
Are large multinationals leading an upsurge in foreign companies leaving China? Some media reports may give that impression, but these reports are somewhat one-sided.
It is true that some factories owned by foreign companies in China have recently been shut down, and these actions by some large multinationals particularly arrest people's attention: Japanese watchmaker Citizen shut down its factory in Guangzhou, south China's Guangdong Province; Panasonic announced plans to shut down two TV production lines in China; and Microsoft decided to shut down two cellphone production lines of Nokia in China.
Company and industry operations are an ever-changing process. However prosperous a company once was and however good a business environment used to be, the shutdown or even bankruptcy of some companies is inevitable. We should instead focus on the net amount of foreign investment. In recent months, China's paid-in foreign direct investment (FDI) has been going up on a yearly basis. Despite slight monthly drops in the latter half of 2014, China still saw a yearly increase of 1.7 percent in FDI in the non-financial sectors. With the amount of non-financial FDI reaching $119.56 billion last year, China has become the world's largest FDI recipient.
In the shutdown of Chinese factories by large multinationals, we can find that the major reason is not the deterioration of China's business environment but rather business difficulties faced by those multinationals after they become less competitive than Chinese-funded or other foreign companies. The most typical examples include Japanese home appliance makers, which have suffered huge losses for years, and the former world's biggest mobile phone maker Nokia, which has failed in market competition.
Japanese companies used to lead the world home appliances industry. However, with the robust rise of Chinese and South Korean companies, Japan's home appliances industry has lost power, in part due to several major mistakes in decision-making. For instance, Sony's home appliance business alone has lost 300 billion yen ($2.47 billion) in the past decade. As a result, slashing manufacturing operations worldwide, not just closing factories in China, has become the only option for some Japanese home appliance makers. However, they still sustain their relations with Chinese production chains by offering semi-finished products or other supplies to Chinese manufacturers. Sharp not only acquired 150 billion yen ($1.24 billion) in bank loans but also gained financial support from a deal with Samsung. Sharp is also withdrawing from the Mexican, Southeast Asian and Australian markets. Like Sony, though, Sharp still sustains its relations with Chinese production chains.
Rise of Made-in-China
Is this a sign of the decline for China's manufacturing industries? The answer is no. Chinese manufacturers are growing rapidly. In the 1990s, China had already become the world's largest home appliance producer and exporter, and it now holds even bigger advantages in this industry.
While Motorola and Nokia are in decline, Chinese mobile phone makers, which got a late start, have become world leaders in production and exports. Motorola made the world's first mobile phone in June 1983, but China's mobile phone industry only began in 1997, and Chinese manufacturer Kejian produced the country's first mobile phone in 1998. At that time, domestic market shares of Chinese mobile phone makers could even be overlooked, and almost all the 3.96 million mobile phones made in China were from wholly foreign-funded enterprises or joint ventures. However, in 2012, China produced 1.18 billion mobile phones, almost 300 times the amount in 1998 and accounting for 75 percent of all the mobile phones sold worldwide. In 2013, among all the 1.8 billion mobile phones made in the world, 81.1 percent or 1.46 billion were from China.
After China joined the Information Technology Agreement in 2003, it reduced the import tariff on mobile phones to zero. In such a market for open competition, the Chinese mobile phone industry has realized high growth in both output and exports.
Citizen's Chinese counterparts such as Fiyta and Seagull have also kept growing and more than half of the watch movements for Swiss brands are made by Chinese factories. Under these circumstances, reactions to individual cases seem overblown.
Some foreign companies shut down their old factories in China, but unless they declared bankruptcy, most of them are trying to transform their businesses so as to remain competitive in the Chinese market.
After all, China is very likely to replace the United States and become the largest economy in the world in the next decade. It has already been the world's largest consumer of various kinds of raw materials, consumer goods and equipment, and it is also maintaining one of the highest economic growth rates in the world. Leaving such a market will mean suicide to any multinational who aims at being a global leader in its industry.
The closing of Nokia's factory was an inevitable outcome after Microsoft acquired Nokia's device and service business in 2014, because according to their mutual agreement, Nokia sold all its device and service business to Microsoft and will no longer manufacture products. However, it will retain its patent portfolio related to telecommunications and smartphones with the aim of establishing a model focusing on technology development and patent operations.
Japanese home appliance giants have reduced their traditional business, but have in turn developed some new businesses. In Panasonic, car and housing businesses have contributed 50 percent to the company's total profits.
Business environment matters
A reasonable view on multinational companies' shutdown of factories in China certainly does not mean we will not improve the investment environment. As China has already been a net capital exporter and its capital exports will continue its trend of quick growth, we must pay special attention to this.
Rapid growth of China's outbound investment is a result of the country's fast-growing economy and national strength, and the improvement of its position among world economies will be more conducive to elevate the efficiency of China's trade and investment.
Just as every coin has two sides, outbound direct investment can weaken the strength of domestic industries and impede China's sustainable economic growth. Since the late 1800s, the United Kingdom invested heavily in overseas countries, but its domestic investment remained stagnant. In other words, the origin of modern industrial revolution missed the opportunity of the second and third industrial revolutions. Such risks should not be neglected. In China, private capital from Wenzhou, east China's Zhejiang Province, was formerly invested throughout the country, but the local economy later hit a bottleneck. This has also warned us to proceed with caution.
Moreover, sustained high growth of outbound direct investment is also likely to dampen the efforts China has made to balance regional development. China's overall economic development falls behind those of developed countries, and the development is unbalanced among different regions.
When China's developed coastal areas are transferring out labor-intensive industries because they have lost cost advantages, the central and western regions have to compete with developing countries such as Viet Nam, the Philippines and Indonesia for these investments. If surplus capital in the developed coastal areas is transferred to foreign countries merely for profits, the less developed central and western regions, which are still in want of capital, will be deprived of opportunities for development.
For these risks, it is not advisable for China to restrict outflow of capital. Instead, it must keep the domestic business environment attractive for investors in order to ensure the country's long-term competitiveness.
Foreign companies' departure is no reason to panic
By Mei Xinyu
Are large multinationals leading an upsurge in foreign companies leaving China? Some media reports may give that impression, but these reports are somewhat one-sided.
It is true that some factories owned by foreign companies in China have recently been shut down, and these actions by some large multinationals particularly arrest people's attention: Japanese watchmaker Citizen shut down its factory in Guangzhou, south China's Guangdong Province; Panasonic announced plans to shut down two TV production lines in China; and Microsoft decided to shut down two cellphone production lines of Nokia in China.
Company and industry operations are an ever-changing process. However prosperous a company once was and however good a business environment used to be, the shutdown or even bankruptcy of some companies is inevitable. We should instead focus on the net amount of foreign investment. In recent months, China's paid-in foreign direct investment (FDI) has been going up on a yearly basis. Despite slight monthly drops in the latter half of 2014, China still saw a yearly increase of 1.7 percent in FDI in the non-financial sectors. With the amount of non-financial FDI reaching $119.56 billion last year, China has become the world's largest FDI recipient.
In the shutdown of Chinese factories by large multinationals, we can find that the major reason is not the deterioration of China's business environment but rather business difficulties faced by those multinationals after they become less competitive than Chinese-funded or other foreign companies. The most typical examples include Japanese home appliance makers, which have suffered huge losses for years, and the former world's biggest mobile phone maker Nokia, which has failed in market competition.
Japanese companies used to lead the world home appliances industry. However, with the robust rise of Chinese and South Korean companies, Japan's home appliances industry has lost power, in part due to several major mistakes in decision-making. For instance, Sony's home appliance business alone has lost 300 billion yen ($2.47 billion) in the past decade. As a result, slashing manufacturing operations worldwide, not just closing factories in China, has become the only option for some Japanese home appliance makers. However, they still sustain their relations with Chinese production chains by offering semi-finished products or other supplies to Chinese manufacturers. Sharp not only acquired 150 billion yen ($1.24 billion) in bank loans but also gained financial support from a deal with Samsung. Sharp is also withdrawing from the Mexican, Southeast Asian and Australian markets. Like Sony, though, Sharp still sustains its relations with Chinese production chains.
Rise of Made-in-China
Is this a sign of the decline for China's manufacturing industries? The answer is no. Chinese manufacturers are growing rapidly. In the 1990s, China had already become the world's largest home appliance producer and exporter, and it now holds even bigger advantages in this industry.
While Motorola and Nokia are in decline, Chinese mobile phone makers, which got a late start, have become world leaders in production and exports. Motorola made the world's first mobile phone in June 1983, but China's mobile phone industry only began in 1997, and Chinese manufacturer Kejian produced the country's first mobile phone in 1998. At that time, domestic market shares of Chinese mobile phone makers could even be overlooked, and almost all the 3.96 million mobile phones made in China were from wholly foreign-funded enterprises or joint ventures. However, in 2012, China produced 1.18 billion mobile phones, almost 300 times the amount in 1998 and accounting for 75 percent of all the mobile phones sold worldwide. In 2013, among all the 1.8 billion mobile phones made in the world, 81.1 percent or 1.46 billion were from China.
After China joined the Information Technology Agreement in 2003, it reduced the import tariff on mobile phones to zero. In such a market for open competition, the Chinese mobile phone industry has realized high growth in both output and exports.
Citizen's Chinese counterparts such as Fiyta and Seagull have also kept growing and more than half of the watch movements for Swiss brands are made by Chinese factories. Under these circumstances, reactions to individual cases seem overblown.
Some foreign companies shut down their old factories in China, but unless they declared bankruptcy, most of them are trying to transform their businesses so as to remain competitive in the Chinese market.
After all, China is very likely to replace the United States and become the largest economy in the world in the next decade. It has already been the world's largest consumer of various kinds of raw materials, consumer goods and equipment, and it is also maintaining one of the highest economic growth rates in the world. Leaving such a market will mean suicide to any multinational who aims at being a global leader in its industry.
The closing of Nokia's factory was an inevitable outcome after Microsoft acquired Nokia's device and service business in 2014, because according to their mutual agreement, Nokia sold all its device and service business to Microsoft and will no longer manufacture products. However, it will retain its patent portfolio related to telecommunications and smartphones with the aim of establishing a model focusing on technology development and patent operations.
Japanese home appliance giants have reduced their traditional business, but have in turn developed some new businesses. In Panasonic, car and housing businesses have contributed 50 percent to the company's total profits.
Business environment matters
A reasonable view on multinational companies' shutdown of factories in China certainly does not mean we will not improve the investment environment. As China has already been a net capital exporter and its capital exports will continue its trend of quick growth, we must pay special attention to this.
Rapid growth of China's outbound investment is a result of the country's fast-growing economy and national strength, and the improvement of its position among world economies will be more conducive to elevate the efficiency of China's trade and investment.
Just as every coin has two sides, outbound direct investment can weaken the strength of domestic industries and impede China's sustainable economic growth. Since the late 1800s, the United Kingdom invested heavily in overseas countries, but its domestic investment remained stagnant. In other words, the origin of modern industrial revolution missed the opportunity of the second and third industrial revolutions. Such risks should not be neglected. In China, private capital from Wenzhou, east China's Zhejiang Province, was formerly invested throughout the country, but the local economy later hit a bottleneck. This has also warned us to proceed with caution.
Moreover, sustained high growth of outbound direct investment is also likely to dampen the efforts China has made to balance regional development. China's overall economic development falls behind those of developed countries, and the development is unbalanced among different regions.
When China's developed coastal areas are transferring out labor-intensive industries because they have lost cost advantages, the central and western regions have to compete with developing countries such as Viet Nam, the Philippines and Indonesia for these investments. If surplus capital in the developed coastal areas is transferred to foreign countries merely for profits, the less developed central and western regions, which are still in want of capital, will be deprived of opportunities for development.
For these risks, it is not advisable for China to restrict outflow of capital. Instead, it must keep the domestic business environment attractive for investors in order to ensure the country's long-term competitiveness.
TaiShang
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China becomes Dubai's largest trading partner
March 25, 2015
According to customs statistics released by Dubai of the United Arab Emirates, in 2014 bilateral trade between China and Dubai amounted to 175 billion dirhams (some 48 billion US dollars), an increase of 29 percent over the previous year.
China overtook India to become Dubai's largest trading partner last year, followed by India, the United States, and Saudi Arabia.
The statistics also show that Dubai's total foreign trade in 2014 reached 1.331 trillion dirhams (about 365 billion US dollars), a slight increase of 0.15 percent over 2013.
The growing strength of non-oil business is an important driver behind the strong overall economic performance of Dubai. Stable foreign trade between Dubai, the East Asian emerging economies, Europe, and its Gulf neighbors, reflects the steady development of its foreign business, and good economic momentum.
This article was edited and translated from 《中国去年成为迪拜最大贸易伙伴》, source: Xinhua.net
March 25, 2015
According to customs statistics released by Dubai of the United Arab Emirates, in 2014 bilateral trade between China and Dubai amounted to 175 billion dirhams (some 48 billion US dollars), an increase of 29 percent over the previous year.
China overtook India to become Dubai's largest trading partner last year, followed by India, the United States, and Saudi Arabia.
The statistics also show that Dubai's total foreign trade in 2014 reached 1.331 trillion dirhams (about 365 billion US dollars), a slight increase of 0.15 percent over 2013.
The growing strength of non-oil business is an important driver behind the strong overall economic performance of Dubai. Stable foreign trade between Dubai, the East Asian emerging economies, Europe, and its Gulf neighbors, reflects the steady development of its foreign business, and good economic momentum.
This article was edited and translated from 《中国去年成为迪拜最大贸易伙伴》, source: Xinhua.net
cirr
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China's ZPMC builds four world's largest lock gates
3 days 5 hours 57 minutes ago
(Follow @Logistic_Guru on Twitter for important updates)
IHS Maritime reported that Chinese steel constructor ZPMC has completed four giant lock gates for the port of Antwerp's Deurganck dock lock that will set a new world record. At 70 m long, 11 m wide, 27 m high and weighing 2,000 tonnes each, the gates are 4 m deeper than those at Antwerp's Berendrecht lock, currently the world's largest.
ZPMC also built the trolleys on which the gates will ride, two combined road/rail bridges, the caisson, and other items. All are now loaded aboard transport vessel Zhen Hua 15, an operation that began on 3 March. They will be shipped in early April and arrive in Antwerp at end of May. Their construction marks a new era for ZPMC, which since the worldwide recession, has diversified into building civil engineering structures, including bridges, for global customers.
ZPMC, which employs about 30,000 people and is best known for its container gantry cranes, now has an array of specialist construction equipment, a 5 km quay, and its own fleet to ship completed steel structures.
Ms Annik Dirkx, port of Antwerp spokeswoman, said that "Since we are building the biggest lock in the world, I'm pretty sure these are the biggest gates in the world. When completed in March 2016, the Deurganck dock lock will be 500 m long, 68 m wide and 27 m deep - big enough to accommodate an 18,000 teu container ship. Total cost of the lock is EUR 380 million and the cost of the steel structures built by ZPMC is EUR37 million.”
She said that "When the gates arrive in Antwerp after their eight-week voyage, manoeuvring them into position will itself be a major operation that's expected to take at least two weeks."
A ceremony to mark the gates' completion, held in Changxing, was attended by the Flemish government's maritime access head Mr Freddy Aerts, Deurganck Dock Lock Company director and Mr Luc Arnouts, chief commercial officer of Antwerp Port Authority and Mr Eric Beyts from the Waasland Lock construction consortium. They were welcomed by Mr Liu Jianbo VP of ZPMC who said that his company had been working hard on the gates since 2011 and represented a new chapter in ZPMC's engineering activities.
He said that "Of course, we hope that the bridges that we have physically built will also contribute metaphorically to mutual understanding between the Chinese and Belgian people."
Source – IHS Maritime
China's ZPMC builds four world's largest lock gates
3 days 5 hours 57 minutes ago
(Follow @Logistic_Guru on Twitter for important updates)
IHS Maritime reported that Chinese steel constructor ZPMC has completed four giant lock gates for the port of Antwerp's Deurganck dock lock that will set a new world record. At 70 m long, 11 m wide, 27 m high and weighing 2,000 tonnes each, the gates are 4 m deeper than those at Antwerp's Berendrecht lock, currently the world's largest.
ZPMC also built the trolleys on which the gates will ride, two combined road/rail bridges, the caisson, and other items. All are now loaded aboard transport vessel Zhen Hua 15, an operation that began on 3 March. They will be shipped in early April and arrive in Antwerp at end of May. Their construction marks a new era for ZPMC, which since the worldwide recession, has diversified into building civil engineering structures, including bridges, for global customers.
ZPMC, which employs about 30,000 people and is best known for its container gantry cranes, now has an array of specialist construction equipment, a 5 km quay, and its own fleet to ship completed steel structures.
Ms Annik Dirkx, port of Antwerp spokeswoman, said that "Since we are building the biggest lock in the world, I'm pretty sure these are the biggest gates in the world. When completed in March 2016, the Deurganck dock lock will be 500 m long, 68 m wide and 27 m deep - big enough to accommodate an 18,000 teu container ship. Total cost of the lock is EUR 380 million and the cost of the steel structures built by ZPMC is EUR37 million.”
She said that "When the gates arrive in Antwerp after their eight-week voyage, manoeuvring them into position will itself be a major operation that's expected to take at least two weeks."
A ceremony to mark the gates' completion, held in Changxing, was attended by the Flemish government's maritime access head Mr Freddy Aerts, Deurganck Dock Lock Company director and Mr Luc Arnouts, chief commercial officer of Antwerp Port Authority and Mr Eric Beyts from the Waasland Lock construction consortium. They were welcomed by Mr Liu Jianbo VP of ZPMC who said that his company had been working hard on the gates since 2011 and represented a new chapter in ZPMC's engineering activities.
He said that "Of course, we hope that the bridges that we have physically built will also contribute metaphorically to mutual understanding between the Chinese and Belgian people."
Source – IHS Maritime
China's ZPMC builds four world's largest lock gates
TaiShang
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Cross-border capital inflows surge, exodus groundless
(Xinhua) 19:02, March 26, 2015
BEIJING, March 26 -- China's cross-border capital net inflows rose 38 percent year onyear to a total of 55.1 billion U.S. dollars in the first two months this year, China's forexregulator said Thursday.
The surge reversed the capital net outflows which occurred between August-Decemberlast year, according to Wang Yungui, an official of the State Administration of Foreign Exchange.
The foreign exchange settlement and sale of foreign-capital banks logged a total deficit ofmore than 25.4 billion U.S. dollars in the first two months.
Wang attributed the deficit to increasing holdings of U.S. dollar-denominated assets amongenterprises and individuals instead of capital outflows.
In the first two months, foreign-currency deposits of enterprises and individuals increased 63.9 billion U.S. dollars while the ratio of exchanging foreign currencies into Renminbi, or Chinese yuan, decreased 10 percentage points in the mean time, Wang told a briefing inBeijing.
In the first two months this year, China's surplus in commodity trade rose almost twelve fold to stand at 120.6 billion U.S. dollars, said Wang.
Meanwhile, actual inflow of foreign investment soared 17 percent year on year to 22.5billion U.S. dollars.
Robust exports, investment and consumption data indicate China still has great growthpotential, according to Wang.
Chinese economic growth has entered a "new normal" of slower growth with the second-biggest economy expanding by 7.4 percent last year and setting a more modest target ofaround 7 percent in 2015, arousing a new wave of pessimistic forecasts.
In recent years, China has strived to steer the economy away from investment-and infrastructure-led spending towards being more consumer-and household-spending focused.
Structure optimization and spontaneous momentum for growth have been upgradedthanks to China' s continuous economic restructuring efforts in recent years, said Wang.
China has a full "tool kit" at its disposal and will use them if growth nears the lower end of its range, Chinese Premier Li Keqiangtold a press conference after the annualparliamentary session earlier this month.
To tap growth potentials, mini stimulus measures could be adopted include reserverequirement ratio and interest rate cuts and tax reductions while plans also in place to engineer longer-term development containing comprehensive reform and major strategiessuch as construction of "Belt and Road" Asian trade infrastructure, coordinated development of the Beijing-Tianjin-Hebei region, and development of the Yangtze Rivereconomic belt.
Overall, there is no data available that supports assertions of capital exodus or predictionsof an impending collapse of the Chinese economy, said Wang.
When asked about the Renminbi exchange rate formation mechanism, Wang said marketwas designed to play a decisive role.
In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percentfrom the central parity rate each trading day. The central parity rate of the yuan againstthe U.S. dollar is based on a weighted average of prices offered by market makers beforethe opening of the interbank market each business day.
Wang said the central parity rate of the yuan against other foreign currencies including theeuro and the Japanese yen should also be considered when talking about the Renminbiexchange rate formation mechanism.
The central bank was quitting a normal intervention on the exchange rate over the pastyear, said Wang, adding that market is playing a more and more important role.
(Xinhua) 19:02, March 26, 2015
BEIJING, March 26 -- China's cross-border capital net inflows rose 38 percent year onyear to a total of 55.1 billion U.S. dollars in the first two months this year, China's forexregulator said Thursday.
The surge reversed the capital net outflows which occurred between August-Decemberlast year, according to Wang Yungui, an official of the State Administration of Foreign Exchange.
The foreign exchange settlement and sale of foreign-capital banks logged a total deficit ofmore than 25.4 billion U.S. dollars in the first two months.
Wang attributed the deficit to increasing holdings of U.S. dollar-denominated assets amongenterprises and individuals instead of capital outflows.
In the first two months, foreign-currency deposits of enterprises and individuals increased 63.9 billion U.S. dollars while the ratio of exchanging foreign currencies into Renminbi, or Chinese yuan, decreased 10 percentage points in the mean time, Wang told a briefing inBeijing.
In the first two months this year, China's surplus in commodity trade rose almost twelve fold to stand at 120.6 billion U.S. dollars, said Wang.
Meanwhile, actual inflow of foreign investment soared 17 percent year on year to 22.5billion U.S. dollars.
Robust exports, investment and consumption data indicate China still has great growthpotential, according to Wang.
Chinese economic growth has entered a "new normal" of slower growth with the second-biggest economy expanding by 7.4 percent last year and setting a more modest target ofaround 7 percent in 2015, arousing a new wave of pessimistic forecasts.
In recent years, China has strived to steer the economy away from investment-and infrastructure-led spending towards being more consumer-and household-spending focused.
Structure optimization and spontaneous momentum for growth have been upgradedthanks to China' s continuous economic restructuring efforts in recent years, said Wang.
China has a full "tool kit" at its disposal and will use them if growth nears the lower end of its range, Chinese Premier Li Keqiangtold a press conference after the annualparliamentary session earlier this month.
To tap growth potentials, mini stimulus measures could be adopted include reserverequirement ratio and interest rate cuts and tax reductions while plans also in place to engineer longer-term development containing comprehensive reform and major strategiessuch as construction of "Belt and Road" Asian trade infrastructure, coordinated development of the Beijing-Tianjin-Hebei region, and development of the Yangtze Rivereconomic belt.
Overall, there is no data available that supports assertions of capital exodus or predictionsof an impending collapse of the Chinese economy, said Wang.
When asked about the Renminbi exchange rate formation mechanism, Wang said marketwas designed to play a decisive role.
In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percentfrom the central parity rate each trading day. The central parity rate of the yuan againstthe U.S. dollar is based on a weighted average of prices offered by market makers beforethe opening of the interbank market each business day.
Wang said the central parity rate of the yuan against other foreign currencies including theeuro and the Japanese yen should also be considered when talking about the Renminbiexchange rate formation mechanism.
The central bank was quitting a normal intervention on the exchange rate over the pastyear, said Wang, adding that market is playing a more and more important role.
TaiShang
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China creates key telecom chip
(Xinhua) 20:42, March 26, 2015
BEIJING, March 26-- A Chinese state firm has successfully invented a cutting-edge chip for data transmission in telecommunication.
Centec Networks under the China Electronics Corporation unveiled the fourth-generation GoldenGate switch silicon on Thursday, which boasts of high performance, reliability and energy efficiency.
As the first domestic chip of its kind, GoldenGate is expected to challenge U.S.semiconductor maker Broadcom's dominance in the Chinese telecom market, one of the largest in the world.
GoldenGate is available now with volume production scheduled for the third quarter of 2015.
A chip is the most important component of an electronic device. A major producer ofmobile phones, computers and other digital gadgets in the world, China can't produce high-quality chips for many uses.
Last June, the Ministry of Industry and Information Technology released a guideline to encourage research on and production of home-grown integrated circuits. Domestic chipmakers have reported some improvements or even breakthroughs.
(Xinhua) 20:42, March 26, 2015
BEIJING, March 26-- A Chinese state firm has successfully invented a cutting-edge chip for data transmission in telecommunication.
Centec Networks under the China Electronics Corporation unveiled the fourth-generation GoldenGate switch silicon on Thursday, which boasts of high performance, reliability and energy efficiency.
As the first domestic chip of its kind, GoldenGate is expected to challenge U.S.semiconductor maker Broadcom's dominance in the Chinese telecom market, one of the largest in the world.
GoldenGate is available now with volume production scheduled for the third quarter of 2015.
A chip is the most important component of an electronic device. A major producer ofmobile phones, computers and other digital gadgets in the world, China can't produce high-quality chips for many uses.
Last June, the Ministry of Industry and Information Technology released a guideline to encourage research on and production of home-grown integrated circuits. Domestic chipmakers have reported some improvements or even breakthroughs.
Martian2
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TaiShang
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This Is How NSA Spying Screws US Businesses
01:33 28.03.2015(updated 14:34 28.03.2015) Get short URL
According to a filing published by the World Trade Organization Thursday, the United States is outraged by China’s proposed restrictions on US-made information technology in the banking sector - by all accounts a reaction to the disclosure of secret documents by former NSA contractor Edwards Snowden.
China has argued that the move is a way to foster much-needed “secure and controllable” banking technology, a phrase whose murky definition puts US officials on edge.
'Arrogance and Hypocrisy': China Slams Obama Over Cybersecurity Demands
The country’s main concern seems to the possible sabotage of consumer security products such as encryption software, for espionage purposes, a year and half after whistleblower Edward Snowden revealed US spy agencies had been planting code in American technological exports to surveil overseas targets.
The new rules, which were announced in December and represent one of the most significant steps China’s made toward banishing foreign tech, have already come under fire from various business groups, and senior Obama administration officials, including Secretary of State John Kerry, have expressed their concerns to their Chinese counterparts.
Exposure of Alleged NSA Spying Program to Hurt US Economy, Interests
Experts have noted the potential major economic setback China’s new regulations could deal the US.
In addition to servers, desktop and laptop computers, China’s new rules also aim to push the use of “indigenous” software.
WTO member states have the prerogative to challenge foreign laws that would affect international trade, and the US noted that the move calls into question Organization compliance rules which prohibit countries from favoring domestically made products over foreign ones. And the US isn’t alone in their concerns over China’s new cybersecurity regulations, as the move isn’t sitting well with Japan and the European Union either.
“Does China exclude the possibility that foreign-developed technology may provide a better security solution than a technology developed indigenously?” the US inquired in the filing.
"Do the guidelines apply to foreign-owned banks operating in China?"
China, for its part, has called the US’ criticism of the proposal “arrogance and hypocrisy.”
"All countries are paying attention to and taking measures to safeguard their own information security. This is beyond reproach," China’s Foreign Ministry spokesman Hua Chunying said of the controversy in early March.
Why is China Strangling US Tech Firms With New Cybersecurity Demands?
The restrictions say that all new servers, desktops, laptops, and 50% of all tablets and smartphones bought by the banking sector must meet the “security and controllability” requirements.
“The requirement for a product to be 'indigenous' would allow for little involvement by foreign companies," the US’ filing read.
While the WTO very may well rule that China’s banning of foreign technology from its state-owned banks violates its trade obligations, China’s position that national security comes first should ring a bell with US politicians.
Read more: This Is How NSA Spying Screws US Businesses / Sputnik International
01:33 28.03.2015(updated 14:34 28.03.2015) Get short URL
According to a filing published by the World Trade Organization Thursday, the United States is outraged by China’s proposed restrictions on US-made information technology in the banking sector - by all accounts a reaction to the disclosure of secret documents by former NSA contractor Edwards Snowden.
China has argued that the move is a way to foster much-needed “secure and controllable” banking technology, a phrase whose murky definition puts US officials on edge.
'Arrogance and Hypocrisy': China Slams Obama Over Cybersecurity Demands
The country’s main concern seems to the possible sabotage of consumer security products such as encryption software, for espionage purposes, a year and half after whistleblower Edward Snowden revealed US spy agencies had been planting code in American technological exports to surveil overseas targets.
The new rules, which were announced in December and represent one of the most significant steps China’s made toward banishing foreign tech, have already come under fire from various business groups, and senior Obama administration officials, including Secretary of State John Kerry, have expressed their concerns to their Chinese counterparts.
Exposure of Alleged NSA Spying Program to Hurt US Economy, Interests
Experts have noted the potential major economic setback China’s new regulations could deal the US.
In addition to servers, desktop and laptop computers, China’s new rules also aim to push the use of “indigenous” software.
WTO member states have the prerogative to challenge foreign laws that would affect international trade, and the US noted that the move calls into question Organization compliance rules which prohibit countries from favoring domestically made products over foreign ones. And the US isn’t alone in their concerns over China’s new cybersecurity regulations, as the move isn’t sitting well with Japan and the European Union either.
“Does China exclude the possibility that foreign-developed technology may provide a better security solution than a technology developed indigenously?” the US inquired in the filing.
"Do the guidelines apply to foreign-owned banks operating in China?"
China, for its part, has called the US’ criticism of the proposal “arrogance and hypocrisy.”
"All countries are paying attention to and taking measures to safeguard their own information security. This is beyond reproach," China’s Foreign Ministry spokesman Hua Chunying said of the controversy in early March.
Why is China Strangling US Tech Firms With New Cybersecurity Demands?
The restrictions say that all new servers, desktops, laptops, and 50% of all tablets and smartphones bought by the banking sector must meet the “security and controllability” requirements.
“The requirement for a product to be 'indigenous' would allow for little involvement by foreign companies," the US’ filing read.
While the WTO very may well rule that China’s banning of foreign technology from its state-owned banks violates its trade obligations, China’s position that national security comes first should ring a bell with US politicians.
Read more: This Is How NSA Spying Screws US Businesses / Sputnik International
Chinese telecom equipment maker releases 1GE switch silicon
Xinhua Finance 2015-03-27 09:06 BEIJING
Centec Networks (Suzhou) Co., Ltd., a provider of innovative switching silicon and whitebox solutions, rolled out China's first 1GE switch silicon, the fourth-generation GoldenGate switch silicon CTC8096, at a promotion activity on Thursday.
The company is a subsidiary of China's largest state-owned comprehensive IT company, China Electronics Corporation (CEC). Its new product features 32nm manufacturing technique, 940 million transistors and a switching capacity of 1.2 Tbps.
The new product is expected to overturn the monopoly position of imports in the Chinese hardcore chip market and boost the development of China's information security industry.
Another subsidiary of CEC headquartered in Tianjin released a self-developed 64-bit CPU, FT-1500A series, at the same activity. The chip uses leading technologies in China and is expected to replace some medium- and high-end Intel server chips.
Xinhua Finance 2015-03-27 09:06 BEIJING
Centec Networks (Suzhou) Co., Ltd., a provider of innovative switching silicon and whitebox solutions, rolled out China's first 1GE switch silicon, the fourth-generation GoldenGate switch silicon CTC8096, at a promotion activity on Thursday.
The company is a subsidiary of China's largest state-owned comprehensive IT company, China Electronics Corporation (CEC). Its new product features 32nm manufacturing technique, 940 million transistors and a switching capacity of 1.2 Tbps.
The new product is expected to overturn the monopoly position of imports in the Chinese hardcore chip market and boost the development of China's information security industry.
Another subsidiary of CEC headquartered in Tianjin released a self-developed 64-bit CPU, FT-1500A series, at the same activity. The chip uses leading technologies in China and is expected to replace some medium- and high-end Intel server chips.
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FT-1500A series CPU chips that are set to replace some medium- nd high-end Intel server chips
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