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China Economy Forum

Good news for Russia bro. Time for VN to buy some, too :tup:

The MOU is “an important stage in promotion of the SSJ-100 in the Chinese market,” Sukhoil Civil Aviation said in a statement on Tuesday. “The Chinese side is interested not only in buying new aircraft, but also in the implementation of large scale deals to develop local aviation infrastructure in offset programs.”

O-Bay Aircraft also plans to manufacture SSJ-100 jets in partnership with Sukhoi and two Chinese companies in Zhengzhou city, Henan province, said the executive, who declined to be named.

"We are still in detailed discussions with Sukhoi for the China assembly plant which would be up and running by 2018. Part of the 100 jets would be manufactured in the China plant," the executive told Reuters, without disclosing financial details of the plant.

Russia’s Sukhoi eyes big jet deal with Chinese company | beyondbrics
Private Chinese firm to buy 100 regional Sukhoi jets| Reuters

We are not just buying planes, we are also buying the assembly plant. Soon SSJ-100 will be manufactured in China. We have the money and the manufacturing capability to introduce aircraft production.
 
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Yep China doesn't need FDI to survive, if Japan wants to invest more in the jungle that's not gonna hurt us, plenty still want to put their money in China just as this rich Russian comrade.

You made a mistake, Russian cam-rade is not Putin now, China CPC don't know about him, who is Russia Communist party' leader now, he is here.:enjoy:

xin_422020529103848438984.jpg


Ask Putin why he thanked us and not Vietcongs

We taken a neutral position in this matter, kid.
 
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I think to have the Russian planes manufactured in China is a good strategic move because when you think about
the terrible "embargo" then you can imagine most of our commercial planes will be grounded for lack of replacement engines or something.

Our own commercial jet liners still have to depend on the import of many subsystems plus the engines and we need to strengthen the experience of making jet liners

We dont have to put too many eggs in one basket If the Russians are helping us, even though their model also has some import systems,

The only down side of the deal is our own ARJ-21 and C-919 will be facing more cut throat price wars
 
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Ask Putin why he thanked us and not Vietcongs
Mr.Putin take back his 'thank' to China soon coz China dont support Russia in the annexation of Crimea.
UN rejects Russian annexation of Crimea

The 11 countries that voted against the text were Armenia, Belarus, Bolivia, Cuba, North Korea, Russia, Nicaragua, Sudan, Syria, Venezuela and Zimbabwe.

NATO and Western powers voted overwhelmingly in favor. Among the abstentions were Afghanistan, China, India and Pakistan, as well many South American nations.
UN rejects Russian annexation of Crimea
 
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China crosses milestone: 20th operating nuclear reactor

Why is it important that China has 20 operating nuclear reactors? A single gigawatt-class nuclear reactor (like the newly-operational Yangjiang 1) "produces an estimated 293 kilograms of plutonium per year -- enough plutonium every year to make forty thermonuclear bombs."

China's civilian nuclear reactors produce sufficient plutonium for at least 500 thermonuclear warheads per year.

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Commercial operation for Yangjiang 1 | World Nuclear News

"Commercial operation for Yangjiang 1
27 March 2014

Unit 1 of the Yangjiang plant in China's Guangdong province has entered commercial operation, becoming China's 20th operating nuclear power reactor.

wwbP0UC.jpg

Yangjiang 1 is now in commercial operation, while the adjacent unit 2 will soon start pre-operational tests (Image: CGN)

Yangjiang 1 - the first of six units under construction at the site in China's Guangdong province - began a full-power demonstration phase on 18 March. China General Nuclear (CGN) announced that this trial run was successfully completed on 25 March at which point it formally started commercial operation.

Yangjiang 1 represents CGN's ninth operating unit and brings the company's installed generating capacity to 9410 MWe.

Work on the first reactor at Yangjiang began in December 2008. It achieved first criticality on 23 December 2013 and was connected to the grid on 31 December. The equipment localization rate at the unit reached 83%, according to CGN.

The first four Yangjiang units are 1080 MWe CPR-1000 pressurized water reactors, with units 5 and 6 being ACPR-1000. With unit 1 now in operation, unit 2 is currently preparing to conduct hot tests, aimed at simulating the temperatures and pressures which the reactor's systems will be subjected to during normal operation. This phase ensures coolant circuits and nuclear safety systems are functioning properly before fuel is loaded. Equipment installation is underway at unit 3 while civil construction works continue at units 4, 5 and 6.

All six reactors should be in operation by 2018, producing a grand total of around 6100 MWe.

Researched and written
by World Nuclear News
"

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A gigawatt nuclear reactor produces 293 kg of plutonium (40 fusion bombs) per year

China has four sources of plutonium to build 5,000 thermonuclear warheads. For a modern warhead, you need 25 kg of highly enriched uranium (HEU) and 4 kg of plutonium (see illustration below).

FeU2wVO.jpg


a) Two above-ground plutonium plants. These two plants produced a stockpile of plutonium. Also, the two plants can be reactivated if necessary.
b) Underground plutonium plants, such as the massive one at Chengdu.
c) Extraction of plutonium from civilian spent nuclear fuel rods. China has operated numerous nuclear power plants for fifty years. There is plenty of spent nuclear fuel rods from the civilian nuclear reactors.
d) Fast breeder reactors. China has an operational 60 megawatt fast breeder connected to the electricity grid. It is safe to assume there are military-specific fast breeder reactors.

I have previously said that China has four sources of plutonium. Today, we will discuss the plutonium available from China's civilian nuclear reactors. I don't know much about China's smaller nuclear research reactors, but those produce plutonium too.

RCrjn.jpg

China currently has 16 large nuclear reactors in operation. Source: China Nuclear Power | Chinese Nuclear Energy

Though China has 16 large (gigawatt-class) nuclear reactors in operation, there are a few that are supplied with Australian uranium. The Australians are picky. They basically said, "we know China is a recognized nuclear weapons state (that is allowed to freely manufacture thermonuclear weapons), but we want you to agree not to use our uranium to make thermonuclear weapons." China said okay.

This means the total number of available gigawatt-class nuclear reactors as a source of plutonium is less than 16. Let's just say the correct number is somewhere around 10 reactors supplied with Chinese uranium and not subject to the Australian restriction.

I don't want to get entangled in minutiae and my goal is to simply obtain a ballpark figure for Chinese plutonium availability from civilian nuclear reactors. There is also plutonium available from smaller nuclear research reactors (both civilian and military), but I have no idea how to compile the information for research reactors and I'm just going to ignore the research reactors.

Referring to the citation below, a single gigawatt nuclear reactor produces 293 kg of plutonium each year. This provides sufficient plutonium to build 40 thermonuclear warheads. As a rough estimate, China probably has 10 reactors using indigenous uranium. This means China produces 2,930 kg of plutonium each year from its civilian nuclear reactors or the ability to manufacture 400 thermonuclear warheads.

Of course, China has been operating nuclear reactors for decades. I have no idea how much plutonium they have, but it should be a pretty big stockpile. The point is pretty simple. If Chinese nuclear reactors are producing enough plutonium to build 400 thermonuclear warheads a year then China should have plenty of plutonium in their stockpile to build a few thousand thermonuclear warheads.

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Nuclear Power Plant Fuel--a source of Plutonium for Weapons? - NIRS

"Nuclear Power Plant Fuel--a source of Plutonium for Weapons?

Many people may not realize that every nuclear power plant -- as a normal part of the fissioning process -- produces plutonium. Plutonium and/or highly-enriched uranium are essential ingredients of nuclear bombs.

Every year the thousand-megawatt Callaway reactor in Missouri, for example, produces an estimated 293 kilograms of plutonium[1] -- enough plutonium every year to make forty nuclear bombs (each containing about 7.3 kilograms [16 pounds] of mixed isotopes of plutonium per bomb).[2]

If the nuclear power reactor continues operating for a total of 30 years, it will have produced enough plutonium for at least 1200 bombs.

Every year and a half, some of the irradiated fuel rods -- all of which contain plutonium[3] -- are removed from the reactor vessel and are replaced with fresh uranium rods. The irradiated rods are then stored in a concrete spent-fuel pool or in dry-storage canisters -- on site --for an indefinite amount of time. No permanent repository exists anywhere for the irradiated rods.

"Reprocessing" technologies exist that can extract plutonium from irradiated reactor fuel. Although no commercial reprocessing plant is currently operating in the U.S., reprocessing is under way in Japan, England, France, Russia and India. And the Department of Energy and Japan are expending significant funds here in the U.S. on research, development, and demonstration projects for cheaper, faster, more efficient ways to reprocess irradiated fuel.

The nuclear industry and others support the reprocessing of irradiated, commercial nuclear power plant fuel and the "recycling," then, of its extracted plutonium into new nuclear plant fuel (a mixture of uranium and plutonium oxides). Proponents of reprocessing are advocating the "burn-up" of plutonium as fuel in existing and/or "advanced" nuclear power reactors.

Environmentalists, on the other hand, point out that past reprocessing has been responsible for major environmental degradation in the countries that have employed it, including the United States. In order to extract plutonium, reprocessing requires that irradiated reactor fuel rods -- the most radioactive materials on earth -- be cut up, and dissolved in a solvent, resulting in the release of massive quantities of radioactive gases and other substances. Leakage of the remaining stored high-level radioactive wastes at West Valley, New York; Hanford, Washington; Idaho Falls, Idaho; and Savannah River, South Carolina, has created cleanup problems that will take hundreds of billions of dollars, with complete remediation an impossibility.

They also warn that terrorists could steal the extracted plutonium from stockpiles at reprocessing or fuel fabrication plants, or during transport between the facilities, and use it in the manufacture of nuclear bombs. The potential for sabotage or theft at these facilities would be substantial.

Additionally, other dangers inherent in nuclear power plants would remain: the routine releases of fission products into the environment, the exposure of workers to radiation, the potential for a major accident, and the accumulation of long-lived wastes from the reactors' continuing operation.[4]

Proposals pending in Congress to transport the irradiated fuel that is currently stockpiled at some seventy nuclear power plant locations out to Nevada for interim storage -- and possibly someday, for ultimate disposal or reprocessing -- would place thousands of shipments of plutonium-bearing fuel onto our railroads and highways, coast-to-coast. Federal regulations require that armed escorts be present during all shipments of irradiated fuel -- evidence that the threat of nuclear terrorism is real.

No American electric utility has placed an order for a nuclear power plant that was not subsequently canceled since October 1973 (the Palo Verde plant in Arizona). That is, no new nuclear plants are being added. However, every existing reactor, because of the presence of plutonium, is a potential target for terrorism.

Nuclear reactors and the plutonium they generate threaten the hope for world peace and survival.

We would like to acknowledge the contribution by Dr. Thomas B. Cochran, Senior Staff Scientist of the Natural Resources Defense Council, who calculated the annual plutonium production of the Callaway nuclear power plant.

NOTES:


1. The above calculation of 293 kilograms of plutonium per year assumes the Callaway reactor (1150-megawatt electric; 3565-megawatt thermal) operates at 80% of its capacity. Please remember: approximately 60 percent of the plutonium will be plutonium-239, which has a half-life of 24,000 years and remains hazardous for at least ten half-lives.
2. See Reviews of Modern Physics, Vol. 50, No. 1, Part II, Jan. 1978, page S29. With greater technical expertise, a nuclear weapon can be built with considerably less plutonium than the amount estimated here.
3. Although the plutonium generated by a commercial nuclear power plant is not technically "weapons grade," it has long been acknowledged that nuclear bombs can be and have been built with reactor-grade plutonium.
4. All nuclear power plants release radioactive gases, liquids, and particulates into the environment as a part of their routine operation. It does not take an accident. Such releases include tritium (radioactive hydrogen) and other radioactive gaseous material, much of which can be neither filtered nor monitored.

July 19, 1996, Kay Drey"
 
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求证重大传闻:工信部或撤销三大运营商】据小道消息:为加快混合经济并鼓励员工参股,大力推进集约化与网业分离实施,明年下半年可能撤销三大运营商,新组建三个部门为:国家网络安全与建设维护中心(电信为母体);国家通信渠道服务管理中心(移动为母体);国家虚拟运营商运营公司(联通为母体)。
 
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China is propelling its IT industry into the next generation

Last Updated: 2014-03-31 11:15 | CE.cn

Next-generation IT firms have mushroomed in northern China, as forward-thinking policies showcased by industrial parks such as the Tianjin Economic-Technological Development Area (TEDA) come to fruition.

In the region, six internet industrial clusters have been established, comprising over 150 enterprises with overall main business revenue of 5.1 billion yuan and together employing some 5,600 employees.

TEDA's R&D investment in the so-called "New-Gen" IT industry has reached 7.8 billion yuan in terms of R&D investment, already producing over 800 patents.

According to Ms. Zou Fang, Deputy Director of TEDA's Investment Promotion Bureau, the park has many advantages in fostering IT innovation, including its mature investment climate, green credentials, government efficiency, and its stable infrastructure.

But perhaps the most important factor is TEDA's appreciation of the importance of clustering - locating complementary companies and services in hubs, so they can spark off one another.

"The clustering effect, or cross-pollination advantage, here at TEDA is outstanding," says Zou. "The electronic industrial chain and the information service chain rely on each other, making a new-generation information technology industry ecosystem, and the best digitization development area in China."

Each of the six clusters has its own specific focus and success stories. The cloud computing and big data cluster, for example, is home to the National Supercomputer Center in Tianjin, HP's Cloud Center, and Tencent, developer of WeChat and QQ. The e-commerce cluster has attracted titans such as Alibaba's Tmall shopping platform, as well as smaller players such as ihaveu, China's equivalent of Gilt. The Internet Services Provider cluster houses Sohu's rapidly-growing online video operation, and China's online classifieds leader 58TongCheng, which recently listed on the NASDAQ.

TEDA's approach is in line with the key best practices for accelerators, as defined by Duncan Innes-Ker, China Economist at the Economist Intelligence Unit. These are effective collaboration between the private and public sector; regulation that responds to developments and does not block off potential avenues for new development; and an intensely competitive environment in which companies chase both clients and talent.

One exemplar of the benefits of the cluster system at TEDA is IT infrastructure solution provider Teamsun, which benefits from and contributes to the collaborative ideology. TEDA's Science and Technology Development Group purchases products and services from Teamsun, such as cloud services, server capacity and technical training, which are then given to tenants free-of-charge. Although this accounts for only around 7 percent of Teamsun's overall operation, General Manager of Teamsun Zhou Peiyong says it has become strategically important to their business, as down the line the firms that benefit often approach Teamsun directly and become clients.

"We have found that this cooperation pattern has secured its own viable business model, which is win-win for all: to the tenants, to our company as a service provider, and to the whole region, said Zhou.

All the Next-Gen clusters benefit from TEDA's support strategies, which fall into three areas: talent, financing and operations.

Such innovations are attracting industry leaders to the region, according to Mr. Wei Kai, Senior Director, Internet Center, China Academy of Telecommunication Research of Ministry of Industry and Information and Technology (MIIT). He adds that there are also wider socio-economic factors influencing IT firms to choose TEDA.

"The region has a vast manufacturing base, which in itself poses a big market for the IT industry," says Kai. "Also, the services and support on offer such as schooling, housing and family medical care programs help attract top talent. As a result, it's fair to say that many industry players are flocking into this region, out of enterprises' voluntary and rational choices."

TEDA is also reaching out to neighboring areas to strengthen inter-regional cooperation, says Ms. Zou Fang. One primary focus of this is the capital, Beijing, which is only around 30 minutes away by high-speed train, but where rents are as much as triple that of Tianjin.

The region has developed the Tianjin-Beijing Interconnected Entrepreneurship Promotion Center, with Zhongguancun - the area in Beijing known as the Silicon Valley of China - being a key collaborator. Chinese Premier Li Keqiang visited the center on December 27, 2013.

China is propelling its IT industry into the next generation--China Economic Net
 
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Robot industry gets down to nuts and bolts
(ECNS / China Daily, April 2)

Guangzhou-based GSK CNC Equipment Co, one of the leading domestic computer numerical control providers, estimates its industrial robot sales will double to over 800 sets this year and 3,000 sets next year.

The company expects that domestic demand for the robots will surge by as much as 20 percent annually in the coming years, said Jiang Miren, deputy director of the general manager's office.

The domestic market has been under-performing in the past few years, with industrial robots used in only a few sectors, such as automobile and high-end electronic industries, he said.

But manufacturers are increasingly shifting to robots as they seek to improve efficiency and a new generation of laborers demand higher incomes and better working environments.

As the population ages, "the problem of the demographic dividend has yet to fully present itself," Jiang said.

Zhang Lingyan, with research firm CCID Consulting, forecast in a report in February that "the use of industrial robots in China will grow by 16 percent year-on-year to 32,000 sets this year, with a broader spectrum of industries following the trend."

The industrial robot sector will embrace opportunities in the coming three years from government support, the need for industrial transformation and the weakening demographic dividend, Zhang said.

The government aims to have a relatively well-developed industrial robot industry by 2020, with three to five internationally competitive companies and eight to 10 supporting industrial clusters, according to a guideline on promoting the sector issued by the Ministry of Industry and Information Technology last December.

Earlier this month, the government of Guangzhou, capital of Guangdong province, joined a number of cities in approving an ambitious plan for developing the industry. It aims to have annual output of over 100 billion yuan ($16.13 billion) from the intelligent equipment industry and annual capacity of 100,000 sets of industrial robots and intelligent equipment by 2020.

More than 80 percent of manufacturers in Guangzhou will be using industrial robots and intelligent equipment by 2020, with the demand for robots increasing by more than 30 percent annually in the manufacturing-heavy Pearl River Delta area in Guangdong, according to the Guangzhou Commission of Economy and Trade.

full: Robot industry gets down to nuts and bolts - Headlines, features, photo and videos from ecns.cn|china|news|chinanews|ecns|cns
 
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China eyes early start of joint feasibility study on China-EU FTA
(ECNS / Xinhua, April 2)

China on Wednesday expressed the will to start as soon as possible joint feasibility study on a China-EU free trade agreement (FTA).

China made the appeal in a policy paper issued Wednesday which defines its policy objectives towards the European Union and blueprints comprehensive bilateral cooperation in the next 5 to 10 years.

China will actively advance negotiations of an investment agreement between China and the EU, and strive to achieve an agreement as soon as possible to facilitate two-way investment, said the policy paper with regard to bilateral economic cooperation and trade.

"China views the EU as one of its most important trade and investment partners and hopes that both sides will contribute to the long-term, steady and in-depth development of their economic and trade relationship," it said.

"The EU should commit to resolving economic and trade frictions with China through dialogue and consultation, act cautiously when resorting to trade remedy measures and create a good trade environment for the two sides," said the policy paper.

China called on the two sides to continue to make use of the China-EU High-Level Economic and Trade Dialogue, the China-EU Economic and Trade Joint Committee and other mechanisms as a platform for policy coordination, promoting cooperation and addressing the concerns of both sides.

"China will continue to urge the EU to ease its restrictions on and facilitate high-tech product and technology export to China, so as to release the great potential of bilateral high-tech trade," it said.

China also expressed the will to enhance cooperation in such areas as quality supervision, inspection and quarantine, and e-commerce.

Concerning fiscal and financial cooperation, China expressed welcome for financial institutions from EU member states to start business in China under relevant Chinese laws and regulations.

"China hopes EU member states will actively open their markets to the Chinese financial sector and support Chinese financial institutions in setting up branches and doing business in the EU," the policy paper said.

full: China eyes early start of joint feasibility study on China-EU FTA - Headlines, features, photo and videos from ecns.cn|china|news|chinanews|ecns|cns
 
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Sinopec picks Goldman Sachs for $30 bln retail sale -Bloomberg

April 3 Thu Apr 3, 2014 9:04am IST


April 3 (Reuters) - China Petroleum & Chemical Corp (Sinopec) , Asia's biggest oil refiner, has picked Goldman Sachs Group Inc to help sell a stake in its retail assets, Bloomberg reported, citing people with knowledge of the matter.

Beijing-based Sinopec could raise about $30 billion from what would be the biggest asset sale by a Chinese state-owned company, Bloomberg said. (link.reuters.com/rus28v)

Sinopec did not immediately return calls seeking comment. Goldman Sachs declined to comment.

Sinopec on Feb. 20 said it would sell up to 30 percent of its marketing arm, which owns more than 30,000 petrol stations, in a multi-billion dollar asset restructuring.

That announcement of major restructuring was China's first since President Xi Jinping unveiled sweeping reforms of the socialist economy at a Communist Party conclave in November.

Xi promised to encourage private participation in state-owned enterprises, which include some of the world's largest companies. (Reporting by Arnab Sen in Bangalore; Editing by Christopher Cushing)

Sinopec picks Goldman Sachs for $30 bln retail sale -Bloomberg| Reuters
 
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Turning the tap a little? There are many leverages to give the economy a tick-up, such as lowering the deposit reserve ratio(sky high at over 20%), cutting interest rates(sky high comparing with subdued inflation level of about 2% and removing policies restricting the purchase of big items such as cars and properties, etc.

April 3, 2014 4:19 am

China fast forwards infrastructure plans to boost growth

By Jamil Anderlini in Beijing

c59942a5-ddc7-413b-90a1-61f6a6cd03dd.img
©AFP

China’s Premier Li Keqiang pledged to speed up construction of railways and housing for the poor this year to prop up flagging growth and reassure domestic and international investors that Beijing will not allow the economy to slow too much.

With growth in the world’s second-largest economy continuing to slow, Mr Li has set a target of “about 7.5 per cent” expansion this year, a goal he is unlikely to achieve without further stimulus in the coming months.

At a regular meeting of the State Council, China’s cabinet, on Wednesday evening, Mr Li said the government would accelerate construction of railways in the central and western parts of the country.

The measures helped lift Chinese stocks in Hong Kong by 1.2 per cent. China Railway Construction jumped more than 8 per cent, while cement maker Anhui Conch rose 2.6 per cent. Many construction and transport stocks had risen sharply in the past two weeks on expectations of government support.

Mr Li said the target was to build 6,600km of new track this year, 1,000km more than China built last year, in an effort to support employment and help the government to create the 10m jobs it has identified as necessary to maintain economic and social stability this year.

Mr Li also said he had ordered China Development Bank, a lending arm of the central government, to set up departments whose main responsibility will be to finance construction of low-income, government-subsidised housing.

The government is also considering extending tax breaks to small businesses.

“The announcement is a limited commitment to stimulating growth that should be interpreted more as an attempt to shore up domestic confidence in the economy than as a step to usher in aggressive stimulus moves,” said Nicholas Consonery, director for Asia at the Eurasia Group. “That said, it does also create a pathway for more aggressive moves later if the economy continues to cool beyond the leadership’s comfort zone.”

The government is trying to tread a fine line by reducing economic reliance on credit-fuelled infrastructure and real estate investment while maintaining rapid growth rates and high employment.

The danger of the current approach is that it might not be enough stimulus to convince markets that growth can be propped up but might be too much stimulus for investors hoping to see a longer-term commitment to reform.

Part of the reform drive is aimed at reducing China’s growing reliance on credit to fund growth and on Wednesday Mr Li unveiled a plan to set up a Rmb300bn railway investment fund that will be open to outside investors.

Around Rmb150bn of the fund will come from railway bonds to be issued this year.

Beijing has already unveiled plans to renovate or build 4.7m homes for people living in slums and shantytowns and the State Council reiterated that commitment again on Wednesday.

China fast forwards infrastructure plans to boost growth - FT.com
 
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Turning the tap a little? There are many leverages to give the economy a tick-up, such as lowering the deposit reserve ratio(sky high at over 20%), cutting interest rates(sky high comparing with subdued inflation level of about 2% and removing policies restricting the purchase of big items such as cars and properties, etc.

April 3, 2014 4:19 am

China fast forwards infrastructure plans to boost growth

By Jamil Anderlini in Beijing

c59942a5-ddc7-413b-90a1-61f6a6cd03dd.img
©AFP

China’s Premier Li Keqiang pledged to speed up construction of railways and housing for the poor this year to prop up flagging growth and reassure domestic and international investors that Beijing will not allow the economy to slow too much.

With growth in the world’s second-largest economy continuing to slow, Mr Li has set a target of “about 7.5 per cent” expansion this year, a goal he is unlikely to achieve without further stimulus in the coming months.

At a regular meeting of the State Council, China’s cabinet, on Wednesday evening, Mr Li said the government would accelerate construction of railways in the central and western parts of the country.

The measures helped lift Chinese stocks in Hong Kong by 1.2 per cent. China Railway Construction jumped more than 8 per cent, while cement maker Anhui Conch rose 2.6 per cent. Many construction and transport stocks had risen sharply in the past two weeks on expectations of government support.

Mr Li said the target was to build 6,600km of new track this year, 1,000km more than China built last year, in an effort to support employment and help the government to create the 10m jobs it has identified as necessary to maintain economic and social stability this year.

Mr Li also said he had ordered China Development Bank, a lending arm of the central government, to set up departments whose main responsibility will be to finance construction of low-income, government-subsidised housing.

The government is also considering extending tax breaks to small businesses.

“The announcement is a limited commitment to stimulating growth that should be interpreted more as an attempt to shore up domestic confidence in the economy than as a step to usher in aggressive stimulus moves,” said Nicholas Consonery, director for Asia at the Eurasia Group. “That said, it does also create a pathway for more aggressive moves later if the economy continues to cool beyond the leadership’s comfort zone.”

The government is trying to tread a fine line by reducing economic reliance on credit-fuelled infrastructure and real estate investment while maintaining rapid growth rates and high employment.

The danger of the current approach is that it might not be enough stimulus to convince markets that growth can be propped up but might be too much stimulus for investors hoping to see a longer-term commitment to reform.

Part of the reform drive is aimed at reducing China’s growing reliance on credit to fund growth and on Wednesday Mr Li unveiled a plan to set up a Rmb300bn railway investment fund that will be open to outside investors.

Around Rmb150bn of the fund will come from railway bonds to be issued this year.

Beijing has already unveiled plans to renovate or build 4.7m homes for people living in slums and shantytowns and the State Council reiterated that commitment again on Wednesday.

China fast forwards infrastructure plans to boost growth - FT.com

Switzerland's ABB to invest $300 mln on production plant in China

ZURICH, April 3 Thu Apr 3, 2014 3:16am EDT



ZURICH, April 3 (Reuters) - Swiss engineering group ABB plans to invest $300 million over the next five years to set up a production hub for power products in the coastal city of Xiamen in southeast China.

"This investment is a strong sign of confidence in China and Xiamen," Chief Executive Ulrich Spiesshofer said on Thursday. "We continue to serve our Chinese customers with new technologies and products that were developed and made in China to improve energy efficiency and productivity."

ABB generates the majority of its sales revenue in China from localised manufacturing. The Swiss group currently employs 19,000 people in the country across 109 cities.

(Reporting by Caroline Copley; Editing by David Goodman)

Switzerland's ABB to invest $300 mln on production plant in China| Reuters
 
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Hyundai Motor Builds Large-scale R&D Center in China


hyundai-motor-group-headquarters.JPG

Hyundai Motor Group headquarters buildings located in Seoul, South Korea. (Photo courtesy of Chu/Wikimedia Commons)

2 April 2014

Hyundai Motor Company is building a large-scale R&D center, comparable to the Namyang Research Institute, in China at a total investment of 200 billion won. The completion of the construction, which is already underway in part, is scheduled for late this year.

The new research center is slated to house R&D facilities covering design, vehicle environment and performance control, test driving, and may more, with the only exception of internal combustion engine R&D. The automaker has recently set up Hyundai Motor China R&D Ltd. in order to build the center in Yantai, Shandong Province.

The Hyundai Motor Group is already running its overseas R&D centers in the United States, Europe, India, and Japan. However, the Yantai facility is its first integrated R&D complex located outside Korea. It seems that the exclusion of the engine and transmission R&D divisions is to forestall any tech leak.

The carmaker is likely to break the 10 million unit mark in cumulative sales volume in China late this year. The construction of the local R&D center is expected to contribute greatly to the cycle of R&D, production, and sales. China called consistently for the construction and Hyundai decided to build the facilities in step with its fourth plant in the country.

According to Chinese government regulations from 2004, any automaker that is to set up a manufacturing plant in China has to build an R&D center at a minimum investment of US$62 million. “The purpose of the new facility is better localization,” said the Hyundai Motor Group, continuing, “Still, we have yet to fix on the size and the other details of the facilities, because talks are still going on with China.”

R&D in China: Hyundai Motor Builds Large-scale R&D Center in China | BusinessKorea
 
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April 02, 2014

Intel bases innovation hub in China to fuel its mobile processor business

Intel is establishing a new center in Shenzhen, the heart of one of China's major technology hubs

By Michael Kan | IDG News Service

As devices powered by ARM chips flood the Chinese market, Intel is hoping to popularize its own mobile processors with a new center built in the heart of one of China's major technology hubs.

The new innovation center, announced on Wednesday, will be based in Shenzhen and focus on helping Chinese hardware vendors build PCs and mobile devices around Intel chips. Shenzhen is home to many of the nation's tech companies and manufacturers, and has become a key segment in both the Chinese and global supply chain.

[ Understand how to both manage and benefit from the consumerization of IT with InfoWorld's "Consumerization Digital Spotlight" PDF special report. | Subscribe to InfoWorld's Consumerization of IT newsletter today. ]

Along with the new center, Intel plans to spend US$100 million through its venture capital arm to fund local Chinese product development in the areas of convertible laptops, tablets, smartphones and wearables.

The U.S. chipmaker made the announcements at its annual Intel Developer Forum in China, this time held in Shenzhen. The company is trying to grow an ecosystem around its mobile processors in China, but its chips have yet to gain much traction in the market. Instead, rival ARM processors have become the chips-of-choice for many smartphone and tablet vendors.

Part of the challenge for Intel is that ARM chips can cost vendors significantly less, especially when building products at the lower-end. Not only are Qualcomm and Taiwan's MediaTek bringing mobile chips to the Chinese market, but also domestic ARM processor makers including Allwinner and Rockchip. This is helping local hardware vendors develop smartphones and tablets at around 1000 yuan ($161) or less.

Intel, however, is responding with its own mobile chip code-named SoFIA that's designed for lower-end devices. The first SoFIA chips, which will start shipping in the fourth quarter, will use an Intel Atom chip and have 3G connectivity. On Wednesday, Intel's CEO Brian Krzanich showed off an Android smartphone built with the processor. In 2015, SoFIA chips will come with 4G support.

In addition, the company is developing a new 4G modem for smartphones that can run on China's LTE TDD and LTE FDD networks. It will start shipping in this year's second quarter.

Krzanich also acknowledged the company had missed out on tablets, but the chip maker hasn't given up on the market. For this year, Intel has set the goal of shipping 40 million tablets with its chips, four times more than it shipped in 2013.

To bring more Intel-powered tablets to market, the company is offering to help vendors pay for component and design costs in making the products.

Intel unveils China innovation center - Computerworld
 
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