China Economy Forum

[ChineseTiger1986]

Taiwan's 2015 trade surplus is $51.56 billion. Why it matters.

For 2015, Taiwan earned a trade surplus of $51.56 billion (see first citation below). This is important, because Taiwan is the unofficial research and development lab for mainland China.

On December 7 2015, "TSMC, the world's largest contract chipmaker, said the Nanjing plant will begin turning out 16nm chips made from 12-inch wafers in the second half of 2018. Such chips are currently being used in the latest Apple iPhones." (see second citation below)

Taiwan's KMT government has said it will give TSMC a decision within two months on its proposed plant in Nanjing, China. The KMT government is business-friendly and approval is likely.

Since China's SMIC is currently producing only at 28nm, TSMC's 16nm technology will be a significant upgrade to mainland Chinese semiconductor fabrication technology.
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Taiwan sees exports slide for 11th consecutive month | Economics | FOCUS TAIWAN - CNA ENGLISH NEWS

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The 'godfather' of Taiwan's chip industry lets it ride at TSMC - Nikkei Asian Review

Don't let the DPP ruining it.

 

[Martian2]

China's economic fundamentals are rock-solid | See Brookings Institution

According to the Brookings Institution, China's trade-weighted exchange rate has appreciated 50% in the last ten years. Over the same time period, China's merchandise export surplus has exploded from $100 billion in 2005 to $600 billion in 2015.

This means China's technological base has grown much stronger. Despite the sharp 50% rise in the Chinese currency, China is exporting more high-value goods and increasing its trade surplus.

A reasonable question to ask is: Why doesn't China just let the Yuan keep appreciating? The Chinese trade surplus doesn't seem to be affected.

If China wanted a US-style economy then it would let the Yuan continue its appreciation. However, China has two different economies. The high-tech Chinese economy is performing well. On the other hand, the low-tech export economy (like steel) is getting hammered. In China, social stability is an important government priority. Thus, we expect the Chinese government to moderate future appreciations of the Yuan. The Chinese government wants to keep the steel workers employed and off the streets.
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Anchor aweigh? China’s currency devaluation and the global economy | Brookings Institution

 

[cirr]

Lithium-ion batteries rule！

January 10, 2016 2:00 am JST

TDK to double investment in lithium-ion operations

TOKYO -- TDK plans to spend over 100 billion yen ($841 million) between fiscal 2015 and fiscal 2017 to ramp up production of lithium-ion batteries, company sources said on Saturday.

TDK's factory in Thailand

The Japanese company invested less than 50 billion yen in its Li-ion battery business during the previous three-year period, through fiscal 2014, which ended last March.

TDK has decided to double the investment as it expects demand for thin-film battery products to grow for use in notebook PCs, robots and smartphones.

TDK plans to spend the money to boost the capacity of its plant in China's Fujian Province, in the hope of more than doubling annual battery sales to 350 billion yen in fiscal 2017 from current levels.

TDK also hopes the investment will help it catch up with stronger South Korean and other rivals in the global marketplace.

(Nikkei)

Thin-film batteries: TDK to double investment in lithium-ion operations- Nikkei Asian Review

 

[TaiShang]

China overfulfills affordable housing target
January 10, 2016

China completed 7.72 million units of affordable housing in urban areas in 2015, beating the annual target of 4.8 million, official data have shown.

The construction of 7.83 million units began in 2015, compared with the full-year goal of 7.4 million, the Ministry of Housing and Urban-Rural Development said earlier this week.

Last year, China started to renovate 6.01 million dilapidated urban homes, accounting for 104 percent of the target. It aims to rebuild 18 million such homes between 2015 and 2017.

The country invested 1.54 trillion yuan (236.9 billion U.S. dollars) last year in the affordable housing program, which provides cheaper homes to low-income families that have been priced out of the property market.

 

[Keel]

中国企业9亿欧元收购全球塑料机械巨头克劳斯玛菲
2016年01月11日 17:29

中国企业9亿欧元收购全球塑料机械巨头克劳斯玛菲|中国|机械制造|德国_新浪军事_新浪网

新浪扶翼行业专区
克劳斯玛菲注塑机
　　1月11日，中国化工集团公司宣布，以9.25亿欧元收购德国橡塑化机巨头克劳斯玛菲集团，这是迄今中国在德国最大的投资。国新国际和汉德资本参股此项交易。收购尚需获得反垄断机构及有关监管机构的审批。

　　同日，中国化工控股企业天华院也发布公告称，1月10日，公司收到控股股东《关于控股股东及关联公司收购橡塑及化工机械制造商克劳斯玛菲集团的通知》。公司实际控制人中国化工集团公司及其控股公司中国化工装备有限公司在德国设立的项目公司作为一方，与加拿大Onex公司控股的Munich Holdings II Corporation S。à。r.l。于2016年1月9日签署《股份购买协议》，收购了加拿大Onex公司旗下的德国KraussMaffeiGroupGmbH（克劳斯玛菲集团公司，“目标公司”）100%股权。

　　本次收购尚需获得境内外反垄断机构及有关监管机构的审批，尚存在不确定性。

　　克劳斯玛菲现东家是总部位于多伦多的私募公司Onex Corp。，Onex在2012年超过几家亚洲企业的竞购报价，以5.68亿欧元从美国投资公司Madison Capital手中收购了克劳斯玛菲。当时中国化工集团公司、海天国际、日本的住友商事（Sumitomo）及美国的Milacron均表示了收购兴趣。其中一位消息人士说，未具名中国企业的报价对克劳斯玛菲的估值接近后者未计利息、税项、折旧及摊销之利润（EBITDA）的7倍 。

　　私募公司通常收购-持有-出售的周期为3-7年，Onex当年对赫斯基的操作就是如此。

　　Madison Capital曾持有克劳斯玛菲长达六年，业内人士表示这对私募来说算是很长的时间。当然那也是有原因的，可能2008年开始的经济危机使得市场形势不利，没有出售的合适机会，只能长期持有。

　　创立于1838年的克劳斯玛菲拥有三大品牌，克劳斯玛菲（KraussMaffei）、克劳斯玛菲·贝尔斯托夫（KraussMaffeiBerstorff）和耐驰特（Netstal），能够满足全球不同客户的定制化需求，是全球最大的塑料机械企业之一，被誉为行业中的“劳斯莱斯”。

　　服务范围涵盖了从注塑、挤塑和反应技术的全套工艺。目前克劳斯玛菲在世界各地拥有员工4500名，其中在德国有2800名。过去几年来，克劳斯玛菲实现了强有力的增长，2014年，克劳斯玛菲集团的销售额为11.1亿欧元。

　　在去年10月的德国展会上，该公司表示其2015年上半年销售达到了5.76亿欧元，比2014年同期的5.21亿欧元提高了11个百分点。

　　克劳斯玛菲总部以及负责欧洲运营和管理的部门，尤其是生产、技术、专利和研发机构，仍然设在慕尼黑。

　　中国化工是在原化工部所属企业基础上组建的央企，成立于2004年，总部设在北京，在150个国家和地区拥有生产、研发基地和营销体系，是中国最大的化工企业，世界500强排名第265位，全球化工排名第9位，主要业务在材料科学、生命科学、高端制造和基础化工领域。在高端制造领域，中国化工装备公司的橡塑机械、化工机械业务活跃于国内市场。此前，中国化工成功收购了法、英、以色列、意大利等国的8家行业领先企业。

责任编辑：王金志 SN100


标签: 中国机械制造德国

Translation
Chinese enterprises € 900 million acquisition of the global plastics machinery giant KraussMaffei
At 17:29 on January 11 2016

中国企业9亿欧元收购全球塑料机械巨头克劳斯玛菲|中国|机械制造|德国_新浪军事_新浪网

Sina Rotary Wing Industry Zones
KraussMaffei injection molding machines

January 11, China National Chemical Corporation announced the acquisition of 925 million euros to the German giant rubber granulation machine KraussMaffei Group, which is by far the largest Chinese investment in Germany. Hande new international and national capital shares of the transaction. The acquisition is subject to the approval of antitrust authorities and the relevant regulatory authorities.

On the same day, Chinese Academy of Tianhua Chemical Holding companies also announced that on January 10, the company received the controlling shareholder "on the acquisition of the controlling shareholder and its related companies and chemical machinery, rubber and plastics manufacturer KraussMaffei Group's notice." The company's actual controller of the project company China National Chemical Corporation and China National Chemical Equipment Co., Ltd. holding company set up in Germany as a party, with the Canadian holding company Onex Munich Holdings II Corporation S. à. r.l. On January 9, 2016 signed the "Share Purchase Agreement", the acquisition of the German subsidiary of Onex Corporation of Canada KraussMaffeiGroupGmbH (KraussMaffei Corporation, "Target Company") 100% stake.

The acquisition is subject to the approval of domestic and foreign antitrust authorities and the relevant regulatory authorities, there are still uncertainties.

KraussMaffei current owner is a Toronto-based private equity firm Onex Corp. , Onex over bid offer several Asian companies in 2012 to 568 million euros from US investment firm Madison Capital acquired the KraussMaffei. At that time China National Chemical Corporation, Haitian International, Japan's Sumitomo Corporation (Sumitomo) and the United States have expressed interest in acquiring Milacron. One of the sources said, quoted unnamed Chinese enterprises to close the latter KraussMaffei valuation before interest, taxes, depreciation and amortization (EBITDA) seven times.

Private companies typically acquire - hold - Sales cycle for the 3--7 years, Onex year of operation Husky is the case.

KraussMaffei Madison Capital has held for six years, industry sources said this is considered a very long time for private equity is. Of course, that is a reason, probably started in 2008 economic crisis, unfavorable market conditions, the right opportunity did not sell, the only long-term holding.

Founded in 1838, has three brands KraussMaffei, KraussMaffei (KraussMaffei), KraussMaffei Berstorff · (KraussMaffeiBerstorff) and Netstal (Netstal), to meet global customer customization needs, is one of the largest plastics machinery enterprises, known as the industry's "Rolls-Royce."

Services covers a full process from injection molding, extrusion and reaction technology. KraussMaffei currently has 4,500 employees worldwide, including 2,800 in Germany. Over the past few years, KraussMaffei achieve strong growth in 2014, KraussMaffei Group sales of 11.1 billion euros.

In October last year, the German exhibition, the company said its first-half sales in 2015 reached 576 million euros, compared with 521 million euros over the same period in 2014 increased by 11 percentage points.

KraussMaffei headquarters and departments in charge of European operations and management, especially in production, technology, patents and research institutions, are still based in Munich.

China Chemical Industry is in the former Ministry of Chemical Industry-owned enterprises established on the basis of the central enterprises, was founded in 2004 and headquartered in Beijing, with production, R & D base and marketing system in 150 countries and regions, China's largest chemical company, the world's top 500 Article 265, ranked No. 9 in the global chemical, the main business in material science, life science, high-end manufacturing and basic chemicals. In the high-end manufacturing, China's rubber machinery chemical equipment, chemical machinery business active in the domestic market. Earlier, the Chinese chemical industry successfully acquired France, Britain, Israel, Italy and other countries 8 industry leader.

Editor: Wang Jinzhi SN100


Tags: China Machinery Manufacturing in Germany

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[JSCh]

China to continue to have abundant labor force: official
English.news.cn | 2016-01-11 20:23:01 | Editor: huaxia

BEIJING, Jan. 11 (Xinhua) -- China will have an abundant labor force for decades to come, though its overall quality needs to be improved, said a senior official with the National Health and Family Planning Commission (NHFPC) on Monday.

Wang Pei'an, deputy head of the NHFPC, said at a press conference that in 2015, China had a labor force of one billion, which is expected to slip slightly to 958 million in 2030.

According to the official, the labor force is estimated at around 827 million for 2050.

Therefore, the challenge for the nation in the next few decades lies not in the size of the labor force but in its quality, said Wang.

Wang highlighted the nation's need to allow all couples to have two children.

The new family planning law took effect on Jan. 1, ending the one-child policy that had been in place for decades.

He said the timing for the new policy is good, considering the trend of a declining labor force, and rising demographic dependency ratio, which rose from 34.2 in 2010 to 36.2 in 2014, in addition to the population of child-bearing women, which has dropped from the peak of 380 million in 2011.

 

[JSCh]

China 2015 growth to meet target of around 7 pct: NDRC
Xinhua Finance 2016-01-13 08:05 BEIJING

​

China's growth in 2015 could meet its target of around 7 percent and economic fundamentals will remain healthy in 2016, an official said on Tuesday.

The growth rate was 7 percent in the first and second quarter and 6.9 percent in the third quarter, said Li Pumin, secretary general of the National Development and Reform Commission (NDRC), China's top economic planning agency.

Employment was stable with 12.51 million new jobs created for urban residents in the first eleven months and the whole year will see about 13 million new jobs for urban residents, he said.

He also stressed efforts to cut overcapacity, including more macro control, market supervision and favorable policies. China verified its 2014 growth rate as 7.3 percent last week, unchanged from the preliminary verification figure.

___________________________________________________________
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China's trade surplus up 56.7 pct in 2015
Xinhua Finance 2016-01-13 11:12 BEIJING

China's foreign trade surplus widened to 3.69 trillion yuan (562 billion U.S. dollars) in 2015, an increase of 56.7 percent from a year earlier, customs data showed on Wednesday.

Exports fell 1.8 percent year on year to 14.14 trillion yuan in 2015, while imports declined 13.2 percent to 10.45 trillion yuan in 2015, according to the General Administration of Customs data.

Last year, the country's total export and import values decreased 7 percent year on year to 24.59 trillion yuan.

 

[JSCh]

China's December exports up 2.3 pct, imports down 4 pct
Xinhua Finance 2016-01-13 10:02 BEIJING

China's exports in yuan terms climbed 2.3 percent year on year in December, compared with November's 3.7-percent drop, while imports declined 4 percent, an improvement over the previous month's 5.6-percent fall, customs data showed on Wednesday.

Exports rose to 1.43 trillion yuan (218 billion U.S. dollars) in December while imports dropped to 1.05 trillion yuan, according to the General Administration of Customs (GAC) data.

Total foreign trade values in December edged down 0.5 percent year on year to 2.48 trillion yuan, while monthly trade surplus widened to 382.1 billion yuan from 343.1 billion yuan in November, customs data showed.

For the whole year of 2015, China's foreign trade surplus widened to 3.69 trillion yuan, an increase of 56.7 percent from a year earlier, data showed.

Exports fell 1.8 percent year on year to 14.14 trillion yuan in 2015, while imports declined 13.2 percent to 10.45 trillion yuan in 2015.

Last year, the country's total export and import values decreased 7 percent year on year to 24.59 trillion yuan.

GAC spokesman Huang Songping attributed the foreign trade decline in 2015 mainly to falling commodity prices and sluggish demand.

 

[Keel]

China's Tianfu cola to make comeback after 20 year hiatus
English.news.cn 2016-01-07 16:12:54

CHONGQING, Jan. 7 (Xinhua) -- The Chinese cola brand Tianfu, once the country's top-selling soft drink, will return to the market after being absent from shelves for nearly two decades, according to the producer on Thursday.

Tianfu Cola will be relaunched around Spring Festival (the Lunar New Year), which falls on Feb. 8 this year, said Qian Huang, general manager of the company.

Qian said Tianfu would still use its natural traditional Chinese medicine (TCM) herbal recipe to produce the "healthy drink."

Back in 1980s and 1990s, the Chongqing-based company was the largest soft drink maker in China with a strong hold of 70 percent of the soft drink market. Tianfu Cola was sold beyond China and started to gain market recognition in Russia and America.

In 1994, the company set up a joint venture with American cola producer Pepsi, which was not successful. By 2005, Tianfu Coke's market share had plummeted to 1 percent.

Qian attributed the failure to the decision to decrease the production of Tianfu Coke to make way for the production of Pepsi-Cola.

In 2006, the company sold its stakes in the joint venture to Pepsi, however, Pepsi refused to give back Tianfu's production right.

In 2010, Tianfu took Pepsi to court accusing the U.S. firm of stealing the secret recipe for its beverage. The court ordered Pepsi to return the formula and technical secrets, but rejected Tianfu's request for 1 million yuan (151,700 U.S. dollars) compensation.

Qian said 2016 would witness a "reincarnation" of Tianfu. In addition to the reproduction of Tianfu Coke, the company plans to debut a new series of soft drinks including fruit juice and a protein beverage.

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[bobsm]

OECD Report: China, Brazil Stabilizing Economically

JANUARY 13, 2016• ECONOMIC CONDITIONS• BY EW NEWS DESK TEAM

For months, economists have worried about the state of the Chinese economy. As the world's second largest economy, a slowdown of the Chinese economy could drag down the economy of the entire world. Fortunately, China's economic slowdown may end later this year according to a report released Monday by the Organization for Economic Cooperation and Development (OECD).

The Paris-based research body of the OECD said in its report, which it based on data that ran only through November 2015, which indicators are solid for gradual economic improvement and stabilization in China and Brazil for 2016. However, it continued to forecast slowing growth for nations like the United States, the United Kingdom, and Russia. It predicted an uptick in growth for Canada and Japan, and full-blown economic acceleration in India.

The positive indicators for China are good news for both the Asian nation and the world as a whole. As China's economy stabilizes and begins to expand once more, it should provide a much-needed boost to the global economy, as well. Many economists feared China would continue to slump in 2016, even predicting a so-called "hard landing." If the indicators prove true, then this could serve as a huge point of relief for investors and businesses around the world.

In the third quarter of 2015, China's economy grew by 6.9 percent. While that may seem quite healthy compared to the much smaller amount of growth experienced regularly in the United States, it is actually the slowest pace of growth for the Chinese economy since the global financial crisis. Fortunately, the OECD's leading indicator for the Chinese Economy rose to 98.4 in November (up from 98.3 in October). This was the second straight month of increase, which has given the OECD reason to call the trend "tentative signs of stabilization."

The OECD's leading indicators provide early signs of an economy's performance, including transitions from times of expansion to slowdown. The indicators derive from a variety of data points, and interpret against a history of past performance. Based on the data, the OECD believes the Chinese economy should stabilize before the midway point of 2016.

Brazil, too, showed similarly strong indicators for growth and stabilization in 2016. While significantly less influential than the Chinese economy, Brazil's economy is still one of the largest in South America. Taken together, the improving performance of these two nations may demonstrate that the global economy will improve significantly in the early part of 2016. Though most nations will see only modest gains, the OECD predicts that India and France will experience significant economic acceleration over the first half of the year.

Still, according to The Denver Post, the overall indicators for all of the OECD's member nations, taken as a whole, remained unchanged at 99.8. Unfortunately, anything under 100 indicates slower than normal anticipated growth, meaning the global economy is not out of the woods yet.


OECD Report: China, Brazil Stabilizing Economically | Economy Watch

 

[TaiShang]

Auto sales hit record in 2015, but growth slows down
China Daily, January 13, 2016

Workers examine cars at the general assembly shop of "Zhonghua" cars of Huachen Auto Group in Shenyang, capital of northeast China's Liaoning Province, June 10, 2015. [Xinhua]



Vehicle sales in China, the world's largest car market, surged to a record 24.6 million units last year, but at a much lower growth rate, as demand waned due to uncertain economic conditions.

Passenger vehicle sales grew 7.3 percent year-on-year to 21.1 million units in 2015, while that of commercial vehicles declined by 10 percent. Demand for trucks dropped by 11.4 percent, according to the China Association of Automobile Manufacturers.

According to industry data released on Tuesday, the growth rate in 2015 was 4.7 percent, a three-year low, largely due to slowing economic growth and volatile stock markets.

Other factors which contributed to the lower growth were the restrictions imposed by local governments on issue of license plates for newly purchased vehicles and for used vehicles transferred from other cities, the ending of the 3,000 yuan ($455) subsidy for energy saving cars and dwindling overseas demand for Chinese exports.

Growth in the sales of passenger vehicles slowed continuously during the first eight months and even flattened in August. However, tax incentives introduced for purchase of smaller-engine vehicles in September helped kick-start the moribund sales, it said.

Dong Yang, executive vice-president of CAAM, said: "Sales of 1.6-liter and lesser category passenger vehicles surged in the fourth quarter. This demonstrates the continued strong demand for passenger cars. We expect the momentum to continue, as long as fresh policies do not crimp growth," he said.

Sports Utility Vehicles continued to be the mainstay of the industry and accounted for 25.2 percent of the total automobile sales last year. SUV sales topped 6.2 million units, a 52.4 percent growth over the corresponding period in 2014. Sales of Multiple Purpose Vehicles grew 10 percent, but that of sedans, hatchbacks and vans dropped, the CAAM report said.

Dong said: "Sales of imported cars and luxury cars dropped significantly due to the ongoing austerity measures and the graft crackdown."

Among foreign brands, Mercedes-Benz was one of the brands that clocked excellent sales in the premium segment. This was fueled by the launch of 14 locally produced and imported models, including GLA, GLC and GLE SUVs. The brand had annual sales of over 363,000 units and a growth rate of 35 percent last year in China.

Wu Song, general manager of GAC Motor Co, a Chinese carmaker based in Guangdong province, said the overall market slowdown would provide more opportunities for domestic carmakers.

"We don't see the current slowdown as a grim situation for domestic carmakers. There is still huge potential for growth through self-innovation and development," he said.

The company, a division of Guangzhou Automotive Group, sold more than 190,000 units in 2015, a year-on-year growth of 63 percent, thanks to the launch of a series of self-developed vehicles.

According to Wu, the company will launch more varieties this year to meet the growing demand for high-end cars and more units would be exported to the Middle East, a market focusing on luxury brands.

"Boosting global presence would help increase Chinese brands and create a new era for domestic cars," Wu said.

 

[AndrewJin]

China FDI inflow rises 6.4% in 2015
BEIJING - Foreign direct investment (FDI) into the Chinese mainland rose 6.4 percent year on year to $126.27 billion in 2015, the Ministry of Commerce said Thursday.

Foreign investment in the service industry rose 17.3 percent, accounting for 61.1 percent oft he total flow for the period.

 

[bobsm]

China's Haier to Buy GE's Appliance Unit for $5.4 Billion
Daniela Wei Stephanie Wong
January 15, 2016 — 11:36 AM HKT Updated on January 15, 2016 — 5:34 PM HKT

Chinese company plans to pay cash for the century-old unit
Deal is China's biggest purchase of foreign electronics firm

China’s Haier Group agreed to buy General Electric Co.’s appliance business for $5.4 billion in the country’s biggest acquisition of an overseas electronics company.

The group’s Qingdao Haier Co. signed an agreement with GE and the transaction, which will be paid in cash, is targeted to close in mid-2016, according to a statement. While the boards of GE and Haier have approved the deal, it’s still subject to shareholder and regulatory approval, it said.

Buying a century-old business that makes $8,500 refrigerators from the likes of GE would underscore the rise of a Chinese company once known for making cheap fridges for college dormitories. It also highlights Haier’s global ambitions as the acquisition would help the company expand in the U.S., one the markets it’s trying to focus on besides Europe and Japan.

“It may be a step for the Chinese company to build up an international network, while its overseas exposure now is still small,” Andrew Song, an analyst in Guotai Junan Securities Co., before the announcement. “It’s also likely that they will have more synergy as Haier is developing smart appliances.”

If completed, the size of the deal would make it the largest Chinese purchase of an electronics business overseas, surpassing state-backed Tsinghua Holdings Co.’s plans for a $3.8 billion investment in Western Digital Corp. announced last year and Lenovo Group Ltd.’s $2.8 billion acquisition of Motorola Mobility Group in 2014, according to data compiled by Bloomberg.

GE was seeking another suitor for the unit after an agreement with Electrolux AB collapsed following opposition from the U.S. Justice Department. The business drew offers from suitors including China’s Midea Group Co., people with knowledge of the matter said in January.

Haier’s purchase price is $2 billion more than the $3.3 billion Electrolux had agreed to pay for the business. The Chinese company said it paid a premium for GE’s long history, brand value as well as its supply chains. The deal will also help it tap the strong consumer spending in the U.S. and its advanced technology.

GE Appliances will continue to be headquartered in Louisville in Kentucky and run by its current management team. Shanghai-listed Qingdao Haier, whose shares have been halted since Oct. 19, will continue to be suspended on Jan. 18.

The deal, which will be funded through the company’s capital and loans, will need anti-trust approval from authorities in U.S., Mexico, Canada and Colombia.

Overseas Expansion

Haier has used international acquisitions in the past to achieve quick expansion and to consolidate its overseas resources. The last major overseas purchase was completed in 2012 when it bought the control of New Zealand’s Fisher & Paykel Appliances Holdings Ltd. for about NZ$742 million ($478 million). It also took over part of Sanyo Electric Co.’s washing machine and refrigerator businesses from Panasonic in March to expand its presence in Southeast Asia.

Midea is China’s biggest manufacturer of appliances, with a 17.1 percent share of the country’s market in 2015, followed by Qingdao Haier with 7.9 percent, Euromonitor International data show. Haier had a 1.1 percent share of the U.S. appliance market last year, according to Euromonitor.

GE and Haier also announced Friday they will cooperate in industrial internet, healthcare and advanced manufacturing. Both companies will also work together to develop and grow affordable consumer health initiatives in China, according to the statement.

Hong Kong-listed Haier Electronics Group Co. was increasing capital spending last year as it seeks to capture a greater share of the country’s e-commerce sales and develop more Web-connected appliances users can control with their smartphones, Chairman Zhou Yun Jie has said in an interview.

The company has already rolled out smart appliances such as heaters you can turn on with your mobile phone, and washing machines which adjust their cleaning functions according to clothing load. It showcased its latest technology at the International Consumer Electronics Show in Las Vegas this month.

China's Haier to Buy GE's Appliance Unit for $5.4 Billion - Bloomberg Business

 

[Martian2]

China's Haier has grown into a $14 billion multinational.

Over the last six years, China's Haier has grown into a huge company.

Haier is a consumer electronics and appliance company. Today, Haier has $14 billion in annual sales. GE Appliance sales are only $8 billion per year. (See Bloomberg chart below)

Six years ago, it was a very different story. Back then, GE Appliance was the giant with $12 billion in sales. In 2008, Haier only had $4.5 billion in sales.

Circumstances have changed dramatically for Haier and GE Appliance over the last six years. If Haier completes the purchase of GE Appliance then Haier sales would have grown to $22 billion per year. This will give Haier incredible economies of scale.
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China's Haier to Buy GE's Appliance Unit for $5.4 Billion - Bloomberg Business

 

[ahojunk]

The Yuan is already in the SDR of the IMF.

The Yuan is getting more influential by the day. This is a reflection of the dominance of China's economy.

This is another step towards the globalization of the Yuan.

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Yuan Clearing Center Opens in Switzerland
2016-01-15 19:07:24 | CRIENGLISH.com | Web Editor: Fei Fei

A opening ceremony of the yuan clearing center is held in Zurich, Switzerland, on Jan. 14, 2016. [Photo: CRI Online]

A new yuan clearing center has opened in Switzerland, marking a first in the European country.

China Construction Bank's Zurich branch runs the yuan clearing business.

The Swiss National Bank and the People's Bank of China agreed to establish yuan clearing in Switzerland last year.

The move aims to promote the use of the yuan by enterprises and financial institutions in cross-border transactions and promote facilitation of bilateral trade and investment.