China Economy Forum

[Zsari]

they want a free rmb as a currency, that's why the sdr standard is set for rmb to meet. having a free exchange currency means china will lose part of its leverage to control the finance security of the country, in favor of international money flow, and cannot 'manipulate the currency' as us has been charging, at the same time enjoying benefits as a reserve currency. its a double blade sword all the time.

You can still manipulate your currency as everyone else has been doing, unless you are in the EU where you don't have a sovereign currency for your country at all.

 

[ChineseTiger1986]

Automotive industry should never be under SOE control. It's not an industry that's vital to national security.

I would say the most important industries for national security are energy (oil, gas, nuclear), banking, telecommunication, defence, utility (water, electricity). Those are the most important industries to national security.

Other industries should be left for the private sector to develop.

Yes, the government should strengthen its control on the strategic industries, while leaving those trivial ones to the private sector if the SOE is not profitable of doing these jobs.

But China's current auto industry sucks so bad, so perhaps the government could help the industry to thrive first and leave it completely private when the domain becomes mature.

 

[Zsari]

Yes, the government should strengthen its control on the strategic industries, while leaving those trivial ones to the private sector if the SOE is not profitable of doing these jobs.

But China's current auto industry sucks so bad, so perhaps the government could help the industry to thrive first and leave it completely private when the domain becomes mature.

There are just way too many auto makers in China, like 30+ in all, they need to merged into 2-3 companies in order to be competitive. I don't see why SOE must get out of industry where no national security is involved. You can have SOE & private companies running side by side within the same industry as long as the SOE is making a profit.

 

[ChineseTiger1986]

There are just way too many auto makers in China, like 30+ in all, they need to merged into 2-3 companies in order to be competitive. I don't see why SOE must get out of industry where no national security is involved. You can have SOE & private companies running side by side within the same industry as long as the SOE is making a profit.

Indeed, the SOE has no obligation to withdraw from those non-strategic industries as long as it is still making the profit.

When the corruption has been weeded out, the SOE with more profit can provide more welfare for the poor children in those impoverished areas. And we cannot expect the POE to do such well-being for the society.

The goal to reform the SOE is to kill the corruption, but the SOE by its nature has absolutely no sin as it was born to be a noble entity.

 

[大汉奸柳传志]

. You can have SOE & private companies running side by side within the same industry as long as the SOE is making a profit.

But in reality we have SOEs 与民争利，undercutting private companies to the point no one will be profitable，they only care about market share，and have nothing to worry about ever getting bankrupt since they are backed by state，usually in the form of low interest bank loans.

 

[Zsari]

But in reality we have SOEs 与民争利，undercutting private companies to the point no one will be profitable，they only care about market share，and have nothing to worry about ever getting bankrupt since they are backed by state，usually in the form of low interest bank loans.

Its not a choice between all or nothing. SOE needs better performance and profitability, but that doesn't mean that we should do away with them. SOE heads are appointed by the state, and just as local government official, the evaluation criteria can be modified and fine-tuned to reflect the overall need of the system in change. You can't do that with a MNC, can't you?

 

[somebozo]

That's weird.

Since America basically has veto power in the IMF (America + allies have majority voting rights). They could have vetoed it.

Instead they are supporting it?

What is the game here?

China is eventually the largest trading partner of America..who would want to shoot in the foot...??
Almost every major american manufacturer today holds assests on Rembi..by giving it reserve status global positioning of American business will be strengthened..

 

[waz]

Well done China!

 

[Raphael]

China Leads In IoT Revenue Services Market | PYMNTS.com

The Internet of Things revolution is underway — and China is leading the way.

New research from ABI Research shows that China’s IoT market will grow fivefold in the next five years, topping $41 billion by 2020. Of the countries ABI Research tracks in its IoT Market Tracker, China leads in overall revenue growth, as well as across six service sectors (connections, connection management, security, data analytics, platform and professional services).

“Driving China’s IoT numbers is the smart meter segment,” said Dan Shey, VP and IoT Practice Director at ABI Research. “It leads all other segments in both connections and revenues. In fact, by 2020, smart meter connections will exceed the next highest market segment in total connections by nearly 10 to 1.”

Also driving the IoT market in the region is home security and automatic, OEM telematics, video surveillance, home appliances, aftermarket telematics and home monitoring.

“Interestingly, data analytics revenues will generate the most IoT revenues in China. This statistic is reflective of the sheer volume of smart meter connections,” Shey said. “But it is also indicative of the relative lack of revenues in both platform and professional services in the China market. Platform revenues are not as high due to, for example, a higher share of proprietary embedded telematics deployments, especially by domestic OEM brands. Professional services revenues are similarly not as high, not only due to fewer connections in the telematics segments, with a higher proportion of tethered solutions, but also because IT and consultancy services are not as mature a market segment as in some of the more developed world markets such as Japan, South Korea and the United States.”

 

[TaiShang]

Data analytics gives China global lead in IoT services revenues

13:04, October 23 2015

News: Smart meters behind Chinese domination.

Chinese IoT service revenues are predicted to grow at a faster rate than any other country, mostly driven by data analytics.

A report has found that by 2020, these revenues will grow more than five times, exceeding $41 billion.

Dan Shey, VP at ABI Research, said: "By 2020, smart meter connections will exceed the next highest market segment in total connections by nearly 10 to 1.

"Data analytics revenues will generate the most IoT revenues in China. This statistic is reflective of the sheer volume of smart meter connections. "

He also said that platform revenues are not as high due to, for example, a higher share of proprietary embedded telematics deployments, especially by domestic OEM brands.

 

[TaiShang]

Chinese Property Developer Snaps Up Texas Oil Fields

Yantai Xinchao Industry Co. says it will acquire West Texas oil properties as part of a $1.3 billion deal

ENLARGE
An oil pump jack in Cisco, Texas. Chinese property developer Yantai Xinchao Industry Co. says it will acquire oil properties in West Texas. PHOTO: REUTERS

Oct. 25, 2015 7:37 a.m. ET

BEIJING—A little-known Chinese real-estate developer says it is scooping up oil assets in West Texas as part of a billion-dollar deal that underscores China’s keen interest in the U.S. energy patch.

Shanghai-listed Yantai Xinchao Industry Co. said in a securities filing Saturday that it was acquiring oil properties in West Texas as part of a deal to buy an investment company called Ningbo Dingliang Huitong Equity Investment Center. Yantai Xinchao valued the overall deal at 8.3 billion yuan ($1.3 billion).

The weekend filing said the oil properties were being acquired from two U.S. companies, Tall City Exploration LLC and Plymouth Petroleum LLC. The companies didn’t immediately respond to requests for comment on Sunday. Plymouth Petroleum is owned by Boston-based ArcLight Capital Partners LLC, a private-equity firm. Tall City is backed by another, Denham Capital Management LP.

Bankers and other industry insiders say a host of Chinese firms—including some whose primary businesses are outside of oil and gas—have expressed interest in buying up energy assets in North America. The long slide in global oil prices as a result of oversupply has, in many cases, made asset prices particularly attractive.

The filing gave few details on the oil assets being purchased, beyond saying they were in the Texas counties of Howard and Borden. However, the fields being purchased lie within what is known as the Permian Basin, a vast area that has been drilled for decades and undergone a resurgence in recent years as new technology enabled energy producers to tap deeper oil and gas deposits.

As the fall in oil prices has rendered many prospects around the U.S. uneconomic, investors have flocked to the Permian, drawn by low drilling costs and easy access to market that make many wells still worth drilling. Exploration and production companies that focus on the region have sold more than $5 billion of new stock this year, and have been among the few energy producers able to attract demand for shares as oil has slumped below $50 a barrel.

In a research report published last week, Canadian broker Canaccord Genuity Group Inc.estimated that wells drilled in the most prolific areas can produce average annualized returns of 30% based on its commodity price forecasts. “Permian wellhead economics are the best of any U.S. resource play overall,” the firm said.

ENLARGE
An oil well owned and operated by Apache Corp. in the Permian Basin in Garden City, Texas, in February.PHOTO: SPENCER PLATT/GETTY IMAGES

The U.S. has long been a desired destination for Chinese energy companies, owing to stable laws governing oil exploration and production. But U.S. restrictions on Chinese investment in potentially sensitive areas means investment in U.S. energy by Chinese companies is, to date, limited. Yantai Xinchao said it had already received permission from the U.S. government for the deal.

The latest deal reflects how Chinese companies are looking to new industries beyond China’s borders to profit, as domestic demand for everything from cars to real estate slows alongside a weakening economy.

In another case last year, Chinese gold retailer Goldleaf Jewelry Co. acquired Texas-based energy firm ERG Resources LLC for $665 million.

Chinese companies are looking abroad for oil deals partly because of tight restrictions at home, making investment in oil-and-gas exploration and production next to impossible in many cases. State-owned oil behemoths dominate China’s energy landscape, leaving little space for independent companies to invest. China’s government says it aims to bring more private capital into the oil sector as part of ongoing reforms.

Yantai Xinchao, based in the coastal province of Shandong, reported revenue of about one billion yuan in 2014. It is mainly engaged in property development and smaller operations producing electronics components.

 

[TaiShang]

Tertiary industry accounts for over 50% of Q1-Q3 GDP
CCTV.com

10-27-2015

Optimising the country's industrial structure has been a crucial part of China's economic reform process. The country aims to drive the service sector in order to promote a better quality economy, and ease the pressure of the sluggish manufacturing industry. As for the first three quarters of this year, the country has seen the industrial structure increasingly optimized.

The added-value of the tertiary industry, which is the service sector, stood at over 25 trillion yuan, accounting for over 50 percent of the country's GDP for the first time. That number was only 48 percent in 2014, and 43 percent five years ago. But the percentage is still relatively low, compared with more than a 70-percent GDP contribution in some developed countries.

Growth of China's GDP stood at 6.9 percent over the first nine months, but despite the economic slowdown, growth of the tertiary sector was over eight percent, and is really starting to become a major driving force of the country's GDP growth.

 

[TaiShang]

Chinese telecom firm ZTE reports surging income
Oct 27,2015

GUANGZHOU, Oct. 27 (Xinhua) -- ZTE Corp., China's second-largest telecom equipment maker, announced Tuesday that its net income in the third quarter rose 40.6 percent to 988 million yuan (155.6 million U.S. dollars).





During the July-Sept. period, the firm's revenues rose 7.2 percent year on year to 22.6 billion yuan, ZTE said in a filing to the Shenzhen Stock Exchange.





In the first nine months, net income rose 42.2 percent to 2.6 billion yuan, while revenues jumped 16.5 percent to 68.5 billion yuan.





ZTE said mobile e-commerce, e-learning, agricultural modernization and smart city construction are driving the fast growth of its new business, including cloud computing, big data and video.





The company said its smart city solutions have been adopted in more than 140 cities in 40 countries and the Belt and Road Initiative will bring about more business opportunities.

 

[Keel]

China now leads the world in game revenues - Newzoo
By James Brightman

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BUSINESSINSIGHTS

China's game industry is worth $22.2bn, ahead of the US at $21.96bn


Newzoo
Newzoo is an innovative global market research firm with a primary focus on games. The company provides...

newzoo.com

Research firm Newzoo today released its Top 100 Countries by Game Revenues report, revealing that for the first time China has surpassed the US in total game revenues. With a population four times greater than the US and an internet audience more than double the US, China's 2015 game revenues are estimated to be $22.2 billion, just ahead of the US at $21.96 billion. The complete list is available at the link above but you can peruse the top 25 countries in the table below.

As you can see, the top 20 countries will generate an estimated $83.0 billion this year, which is the bulk (over 90 percent) of worldwide game revenues. With China in the lead, it's interesting to note that Asia Pacific countries now comprise nearly half of total global revenues. You might assume that mobile gaming is what's leading to China's surge, and while mobile continues to grow quickly, PC gaming still dominates China, Newzoo explained, at $15.2 billion this year (68 percent of total Chinese revenues).

Also of note is that Southeast Asia is moving up the ladder very quickly. "Thailand remains Southeast Asia's biggest earner. Thai revenues will reach $338 million in 2015, up +42.2 from the previous year, making Thailand the 23rd largest games market in the world. Hot on Thailand's trail, Indonesia will gain six ranks this year to take position 24 and generate $313 million in revenues, an astounding increase of +52 percent on 2014. With explosive growth rates like these, it wouldn't be too surprising to see a Southeast Asian country break into the top 20 in 2016," Newzoo observed.

Another country to keep an eye on is India, which has jumped five ranks this year to be the 18th largest games market in the world, according to Newzoo. It's expected that India will have 159 million gamers who will generate revenues of $428 million this year, which would represent 62 percent growth over 2014.

"By 2018, the Indian games market, driven primarily by the mobile segment, will break the billion dollar mark, representing an impressive compound annual growth rate (CAGR) of +49.2 percent for 2014-2018. This makes India one of the fastest growing games markets in the world and on its way to being a major global player. Increasingly, international companies are turning their focus to India, especially following recent news that Apple and Google have lowered the minimum price for apps and in-app purchases there," Newzoo remarked.

While the US remains firmly in second place at the moment, the explosion of game revenues in other parts of the world means that countries in Western Europe are not as valuable on a global scale as they once were. Newzoo expects the overall Western European games market to reach $15.6 billion this year, which would be an increase of just under two percent year-on-year, but individual countries are actually losing their positions in the top 100.

"Notably, the Netherlands will lose two spots, while Belgium and Norway will lose five positions each. Mexico will gain one place to be the 13th largest games market in 2015, while further down the ranking, Argentina and Colombia will also see slight gains. Brazil remains, Latin America's leader at $1.5 billion. In Middle East and Africa, Turkey, Saudi Arabia and Iran will also climb the ladder and overtake Western European countries in the process. Meanwhile, Germany will maintain its spot as the largest Western European games market and generate $3.7 billion, with TV/Console gaming taking the biggest share of the market," Newzoo said.

 

[Dungeness]

China now leads the world in game revenues - Newzoo
By James Brightman

Tweet
BUSINESSINSIGHTS

China's game industry is worth $22.2bn, ahead of the US at $21.96bn


Newzoo
Newzoo is an innovative global market research firm with a primary focus on games. The company provides...

newzoo.com

Research firm Newzoo today released its Top 100 Countries by Game Revenues report, revealing that for the first time China has surpassed the US in total game revenues. With a population four times greater than the US and an internet audience more than double the US, China's 2015 game revenues are estimated to be $22.2 billion, just ahead of the US at $21.96 billion. The complete list is available at the link above but you can peruse the top 25 countries in the table below.

As you can see, the top 20 countries will generate an estimated $83.0 billion this year, which is the bulk (over 90 percent) of worldwide game revenues. With China in the lead, it's interesting to note that Asia Pacific countries now comprise nearly half of total global revenues. You might assume that mobile gaming is what's leading to China's surge, and while mobile continues to grow quickly, PC gaming still dominates China, Newzoo explained, at $15.2 billion this year (68 percent of total Chinese revenues).

Also of note is that Southeast Asia is moving up the ladder very quickly. "Thailand remains Southeast Asia's biggest earner. Thai revenues will reach $338 million in 2015, up +42.2 from the previous year, making Thailand the 23rd largest games market in the world. Hot on Thailand's trail, Indonesia will gain six ranks this year to take position 24 and generate $313 million in revenues, an astounding increase of +52 percent on 2014. With explosive growth rates like these, it wouldn't be too surprising to see a Southeast Asian country break into the top 20 in 2016," Newzoo observed.

Another country to keep an eye on is India, which has jumped five ranks this year to be the 18th largest games market in the world, according to Newzoo. It's expected that India will have 159 million gamers who will generate revenues of $428 million this year, which would represent 62 percent growth over 2014.

"By 2018, the Indian games market, driven primarily by the mobile segment, will break the billion dollar mark, representing an impressive compound annual growth rate (CAGR) of +49.2 percent for 2014-2018. This makes India one of the fastest growing games markets in the world and on its way to being a major global player. Increasingly, international companies are turning their focus to India, especially following recent news that Apple and Google have lowered the minimum price for apps and in-app purchases there," Newzoo remarked.

While the US remains firmly in second place at the moment, the explosion of game revenues in other parts of the world means that countries in Western Europe are not as valuable on a global scale as they once were. Newzoo expects the overall Western European games market to reach $15.6 billion this year, which would be an increase of just under two percent year-on-year, but individual countries are actually losing their positions in the top 100.

"Notably, the Netherlands will lose two spots, while Belgium and Norway will lose five positions each. Mexico will gain one place to be the 13th largest games market in 2015, while further down the ranking, Argentina and Colombia will also see slight gains. Brazil remains, Latin America's leader at $1.5 billion. In Middle East and Africa, Turkey, Saudi Arabia and Iran will also climb the ladder and overtake Western European countries in the process. Meanwhile, Germany will maintain its spot as the largest Western European games market and generate $3.7 billion, with TV/Console gaming taking the biggest share of the market," Newzoo said.

I really doubt if India actually has the internet population of 268 millions. I think they count all the dummy accounts that come with any smartphone purchase. Otherwise, you can't explain the fact that their super low on-line spending.