China-US Geopolitics: News & Discussions

[Jlaw]

Foxconn chairman raises uncertainties over building displays for Apple in USA

By Malcolm Owen

Thursday, March 09, 2017, 08:20 am PT (11:20 am ET)

Apple manufacturing partner Foxconn has yet to decide whether or not to proceed with plans to jointly invest in a $7 billion facility in the U.S., with Chairman Terry Gou expressing concerns over government incentives, supply chain issues, and a shortage of skilled labor in the country.

Speaking at an event commencing the construction of a new display panel production facility in southern China, Chairman Gou revealed he had returned from a visit to Washington, D.C., reports Nikkei, though it was not confirmed whether he had met officials in the Trump administration.

Gou questioned whether government officials were capable of attracting foreign investors in a short timeframe. Major projects, such as the proposed Apple-Foxconn facility that relies heavily on investment from overseas, could be put at risk if the government is considered by investors as too slow to be helpful in completing such deals.

"I am concerned as to whether the U.S. can resolve all the investment issues in only a few months' time," said Gou. "Does the U.S. offer incentive programs for foreign investors? They'll need to pass bills first, and we'll need to wait for American authorities to make a decision first."

Gou also claimed the U.S. lacked the supply chains and skilled labor required for display panel production, which would be the main focus of the proposed facility. A lack of a skilled workforce and the inability to acquire materials would give the U.S. a considerable disadvantage when attempting to attract investment, whereas China's existing manufacturing industries already have the supply chains and the eager workforce in place.

Despite the drastically different manufacturing environments, Gou is still keen to work with both the United States and China for production, and does not wish to "see a trade war happen" between the two. "I am not willing to choose between [the U.S. and China], why should I give up on any market?"

The chairman does still hope the "top two economies in the world" can work together peacefully. "I can forsee that the two will eventually work together to grow [their] economies and deliver beneficial outcome for many. If they don't, then everyone will be losers."

The Apple-Foxconn facility in the U.S. is believed to potentially create between 30,000 and 50,000 jobs, with the higher cost of production thought to be a better option than paying to import display panels from China. A second molding plant is also on the cards, with Pennsylvania thought to be a possible location for the facility.

The talks of increased manufacturing in the U.S. is likely to be a response to campaign promises of President Donald Trump, to increase domestic job opportunities by driving companies to manufacture goods in the country, including Apple. Part of the campaign involved threats to make it more expensive for companies to import their goods from abroad, including Mexico and China, while also hinting at concessions on land and electricity, as well as tax, to encourage home-grown production efforts.

Other Apple suppliers have also expressed an interest in bringing manufacturing to the United States, because of Trump's policies. Sharp, owned by Foxconn, and chip maker Taiwan Semiconductor Manufacturing Co (TSMC) have also been linked to potential manufacturing investments.

http://appleinsider.com/articles/17...nties-over-building-displays-for-apple-in-usa

Chicano and low educated white Americans just can't do the job. Best to stay in china.

 

[shadows888]

Good.

Unfortunately this is not what I'm talking about.

I already know that local governments provide such incentives to private, even foreign owned companies.

What I'm talking about is banks.

They should give DJI a 100 billion dollars loan, at good interest rates, for a period of 20 years.

DJI can do wonders with that money.

It's a private company, leave them alone.

Incorrect. There are not hundred failures.

Secondly, I am not talking about banks funding startups.

I am suggesting that banks should first form a big venture fund, that operates like other venture funds.

Second, after seed and A stages, banks can themselves fill in.

Just so that you know, backing good private companies, with a track record of success, is far far better than backing SOEs, who rely totally on government favor for everything.

the job of SOE's is to carry out the policies of the state, not make profits. any profits are bonus. DJI's in the business to make profits.

 

[GS Zhou]

the job of SOE's is to carry out the policies of the state, not make profits.

Hi bro, I can not agree with you here. Making profits is part of the duty to SOE as well.

If the SOE is concentrating on military stuff, e.g. Chengdu Aircraft or Shenyang Aircraft, profit is not the key object. But if the company is in other none-sensitive areas, e.g. automobile, profit is of course the top priority.

For automobile SOE, we now see the rise of some very competitive players, with nice products and double digit sales growth, e.g. Chang'an, GAC, SAIC (长安, 广汽, 上汽); meanwhile we also see some "layman" SOE, with slow responses to market needs, poor design,etc, e.g. FAW (一汽). For such low-performing SOE like FAW, SASAC (国资委) needs to insert pressure to them to ask for a performance change.

 

[The SC]

The US labour wages can not match the Chinese at any level, be it High-end or low-end manufacturing.. that explains it best..

 

[Bussard Ramjet]

the job of SOE's is to carry out the policies of the state, not make profits. any profits are bonus. DJI's in the business to make profits.

Sadly, the best way to carry out the policies of the state is also to keep in mind efficiency and profit.

Here, SOEs are given trillions in loans, which they are unable to pay back later, to keep them afloat.

This is a loosing proposition.

 

[TaiShang]

CRI听力:China manufacturing industry moves toward intelligent, innovative and high-end
2017-03-09 我要投稿

China has recently released 11 guidelines for implementing the "Made in China 2025" strategy, identifying smart manufacturing, branding and high-end equipment as the core of the plan.

During the ongoing session of the top legislature, the role of this strategy in boosting the country's competitiveness is still a hot topic among deputies.

In this year's government work report, Chinese premier Li Keqiang said the country will intensify efforts to push forward the Made in China 2025 initiative.

"We'll work hard on the implementation of projects to build a robust foundation for industrial development and projects in developing and making major equipment, and we'll make a big push to develop advanced manufacturing, thus moving toward mid- and high-end manufacturing. We'll improve policies to turn China into a manufacturer of quality," said Li.

Chen Fengying, a researcher from China Institutes of Contemporary International Relations, says breakthroughs have been achieved in brand recognition and quality.

But how to apply new technologies into the production, management and marketing models is crucial for the next step.

"We have established manufacturing innovation centers across the country, which is important to the enhancement of smart manufacturing," said Chen. "And this year, around 25 more centers will be set up to reach a more comprehensive nationwide layout. We also carried out several remarkable intelligent manufacturing projects with the world leading position, such as the key technologies in realizing robot intelligence."

Based in Xuzhou, XCMG Group is a Chinese heavy machinery manufacturing company, ranking 5th in the world's construction machinery industry.

Company Vice Director Yan Lijuan says the real economy is the cornerstone of China's development, and the manufacturing industry is the core of the real economy.

"The revitalization of the real economy is in close relation with the realization of the Chinese dream. To implement the initiative, our company aims to become top-3 in the global engineering machine industry by 2025. We have implemented sound measures to make sure our equipment manufacturing skills are developing toward the high-end level, and our products can compete in the world market. We also pour money and efforts into innovation, quality improvement and personnel training," said Yan Lijuan.

Deputy Yan Chengzhong, a professor of Donghua University in Shanghai, said the upgrading of the manufacturing sector needs advanced talents.

He called for deeper reforms for the higher education system.

"This time, one of my suggestions will concerning with how to re-educate or retrain our BA degree graduates," said Yan Chengzhong. "It also needs policy leading, because so far, we don't have a systematic policy design for the big nation skill masters in manufacturing. How could they really enjoy good rewarding and social positions? So I believe the central government will realize this is something really substantial."

 

[AndrewJin]

CRI听力:China manufacturing industry moves toward intelligent, innovative and high-end
2017-03-09 我要投稿

China has recently released 11 guidelines for implementing the "Made in China 2025" strategy, identifying smart manufacturing, branding and high-end equipment as the core of the plan.

During the ongoing session of the top legislature, the role of this strategy in boosting the country's competitiveness is still a hot topic among deputies.

In this year's government work report, Chinese premier Li Keqiang said the country will intensify efforts to push forward the Made in China 2025 initiative.

"We'll work hard on the implementation of projects to build a robust foundation for industrial development and projects in developing and making major equipment, and we'll make a big push to develop advanced manufacturing, thus moving toward mid- and high-end manufacturing. We'll improve policies to turn China into a manufacturer of quality," said Li.

Chen Fengying, a researcher from China Institutes of Contemporary International Relations, says breakthroughs have been achieved in brand recognition and quality.

But how to apply new technologies into the production, management and marketing models is crucial for the next step.

"We have established manufacturing innovation centers across the country, which is important to the enhancement of smart manufacturing," said Chen. "And this year, around 25 more centers will be set up to reach a more comprehensive nationwide layout. We also carried out several remarkable intelligent manufacturing projects with the world leading position, such as the key technologies in realizing robot intelligence."

Based in Xuzhou, XCMG Group is a Chinese heavy machinery manufacturing company, ranking 5th in the world's construction machinery industry.

Company Vice Director Yan Lijuan says the real economy is the cornerstone of China's development, and the manufacturing industry is the core of the real economy.

"The revitalization of the real economy is in close relation with the realization of the Chinese dream. To implement the initiative, our company aims to become top-3 in the global engineering machine industry by 2025. We have implemented sound measures to make sure our equipment manufacturing skills are developing toward the high-end level, and our products can compete in the world market. We also pour money and efforts into innovation, quality improvement and personnel training," said Yan Lijuan.

Deputy Yan Chengzhong, a professor of Donghua University in Shanghai, said the upgrading of the manufacturing sector needs advanced talents.

He called for deeper reforms for the higher education system.

"This time, one of my suggestions will concerning with how to re-educate or retrain our BA degree graduates," said Yan Chengzhong. "It also needs policy leading, because so far, we don't have a systematic policy design for the big nation skill masters in manufacturing. How could they really enjoy good rewarding and social positions? So I believe the central government will realize this is something really substantial."

SOEs bear the responsibility of developing key sectors in China.
Companies like XCMG and CRRC are upgrading China's manufacturing capacity to a new level.

 

[ahojunk]

Tillerson meets with Xi Jinping, says Trump looks forward to enhancing understanding

PUBLISHED : Sunday, 19 March, 2017, 11:51am
UPDATED : Sunday, 19 March, 2017, 1:14pm

China's President Xi Jinping (R) shakes hands with US Secretary of State Rex Tillerson (L) before their meeting at the Great Hall of the People in Beijing Photo: AFP

Chinese president Xi Jinping told US Secretary of State Rex Tillerson that China and US can be good partners and called for enhanced cooperation between the two sides.

In a meeting on Sunday, Tillerson said President Donald Trump looks forward to enhancing understanding with China and the opportunity for a visit in the future.

Xi said he was glad to see good progress from Tillerson’s meetings in China so far and that he and Trump expect a new stage of constructive development in bilateral relations.

As long as both sides bear in mind that they can be good partners, bilateral relations can move towards a”correct direction”, Xi told Tillerson.

Tillerson said Trump places a “very high value on the communications that have already occurred” between Xi and Trump.

“He looks forward to enhancing that understanding in the opportunity for a visit in the future,” Tillerson said.

“We know that through further dialogue we will achieve a greater understanding that will lead to a strengthening of the ties between China and the United States, and set the tone for our future relationship of cooperation.”

The call for more understanding was made ahead of a summit between US President Donald Trump and his Chinese counterpart Xi Jinping, expected to be held next month. Tillerson, despite giving warnings that US may make pre-emptive strike against North Korea prior to his visit to China, also strike a positive note on China US relations.

Xi said Tillerson had made a lot efforts to achieve a smooth transition in this new era of relations.

“You said that China-U.S. relations can only be friendly. I express my appreciation for this,” Xi said.

Xi added he had communicated with Trump several times.

“We both believe that China-U.S. cooperation henceforth is the directions we are both striving for. We are both expecting a new era for constructive development.”

Tillerson and Xi were meeting in Beijing’s Great Hall of the People at the end of Tillerson’s first visit to China after taking office last month.

In an interview shortly before his Beijing trip with the Independent Journal Review, Tillerson said Trump and Xi should have further conversations.

“[The] overall China-US relationship really needs better clarity that can only be achieved by a meeting between our two leaders – a face-to-face meeting – and some time for them to be together and some time for us to exchange views,” he said.

On Saturday, Tillerson had meetings with Chinese Foreign Minister Wang Yi and State Councillor Yang Jiechi. Speaking after a two-hour talk with Chinese Foreign Minister Wang Yi, Tillerson said the pair had “a very extensive exchange” on the escalating tensions on the Korean peninsula and that the two sides had agreed work together to stop Pyongyang from provocations.

 

[艹艹艹]

Welcome to China, but we don't believe him（Rex Tillerson）.

 

[Russell]

Hopefully he isn't too 'fatigued'

 

[powastick]

Enhanced misunderstanding.

 

[Kiss_of_the_Dragon]

you guys have notitce the difference between these pictures:

First 1: Read his body language and look at his eyes, Tellerson sent a clear message "watch out what you gonna say about THAAD, my South Korean friend"

Picture #2: shake and with smiles

conclusion: Strong nation get more respect.

 

[terranMarine]

you guys have notitce the difference between these pictures:

First 1: Read his body language and look at his eyes, Tellerson sent a clear message "what out what you gonna say about THAAD, my South Korean friend"

Picture #2: shake and with smiles

conclusion: Strong nation get more respect.

Very observant. Tillerson can say China's economic sticks spanking South Korea is inappropriate during his short stay in kimchi land but when arrived in China his attitude shifted. Viet members here should take notice how Trump is now focusing on DPRK and hasn't said much about the SCS. Obviously DPRK's nuclear ambition and its missile tests are of concerns to the Trump administration. Again the US regards China as one of the key players in this whole debate so it should not come as a surprise the US wants to keep close contact with China hoping for a denuclearization. The Trump administration seem to be going nuts regarding Fat Kim and deluded Viets believe the US would help Vietnam getting nukes lol

 

[onebyone]

Sealing investment deal ‘within reach’ at Trump-Xi talks

Analysts say concluding discussions on such an accord would support US leader’s job promises

PUBLISHED : Sunday, 19 March, 2017, 11:59pm
UPDATED : Monday, 20 March, 2017, 3:09am

19 Mar 2017

One accomplishment of a summit between US President Donald Trump and his Chinese counterpart Xi Jinping could be a road map for a bilateral investment treaty, business analysts in the United States say.

They believe there is a favourable environment for both sides to conclude the discussion on such a deal, which started nine years ago and entered substantial negotiations in 2013, because it would support one of the few Trump campaign pledges that has survived into his presidency – more American jobs.

“They both could agree over the next six to 12 months to produce an agreement that would increase American access to China and encourage Chinese investment in the US that would generate jobs,” said Dr David Lampton at the Paul H. Nitze School of Advanced International Studies at Johns Hopkins University in Washington.

Politics aside, Trump and Xi could bond as ‘strong men’

Moreover, now that Trump has backed off pledges to brand China a currency manipulator, and with no recent reiteration of threats to erect a 20 per cent tariff wall, the path to a positive meeting of the two presidents is clearer.

Given that Trump had shown a preference for bilateral agreements over multilateral ones, “they could rekindle something like the bilateral investment treaty [initiated under the administration of former US president Barack Obama]”, Lampton said.

“There was substantial work on a bilateral investment treaty, which I think Trump could repackage as his own and get some concessions from the Chinese government on market access.”

US Secretary of State Rex Tillerson’s meeting with Xi in Beijing on Sunday has strengthened expectations that Xi and Trump will meet in the US next month.

Tillerson also met Foreign Minister Wang Yi over the weekend for what he described as “a very extensive exchange” on the escalating tensions on the Korean peninsula.

Preparation under way for Donald Trump, Xi Jinping to meet at G20 summit in July, sources say

While an agreement on a new approach to North Korea would likely feature in any summit, Trump will need to address concerns around jobs and market access to please his home audience.

Chinese investment in the US has already proven to align with Trump’s goals.

Chinese companies invested a record US$45.6 billion in the US economy in 2016, according to the Rhodium Group, an authority on investment flows between China and other countries.

That amount is triple the figure recorded for 2015, when US$15 billion worth of Chinese investment in the US led to 13,000 full-time jobs, according to an earlier report by Rhodium and the National Committee on US-China Relations.

Pure extrapolation would put the number of full-time jobs created by Chinese investment in 2016 at 39,000.

That represents about one-sixth of the total new non-farm jobs that were reported in the latest monthly payroll data from the US Bureau of Labour Statistics.

The dark side to Trump and Xi’s summit in sunny Florida

Xi may make other moves that would support US jobs.

Overcapacity among Chinese producers of steel has been blamed for allowing state-owned companies in China to undercut competitors in global markets.

“Chinese overcapacity that affects the US industrial base is a particular focus for President Trump, and President Xi may be willing to take some action on that front given the renewed focus at the recent meeting of the National People’s Congress on addressing overcapacity,” Jeremie Waterman, the senior policy adviser for Asia at the Washington-based US Chamber of Commerce, said.

“I don’t think there are going to be many concrete outcomes at what amounts to a first date, but there’s clearly a desire on the Chinese side to bring more stability to the relationship,” Waterman added.

Still, many of the issues Trump will be under pressure to resolve in the trade and investment relationship between the world’s two largest economies will likely be papered over or ignored.

When Xi meets Trump: why the casual approach in Mar-a-Lago could pay dividends

“There are significant concerns with a range of Chinese policies right now that even a high-standard investment agreement won’t address,” Waterman said.

“For example, large subsidies for domestic companies in targeted advanced and foundational industries to expand around the world as well as acquire foreign technology.

“Also, China is using a broad definition of national security and related information security standards to shield its ICT and data-reliant industries from foreign competition, including areas like cloud and electronic payments.

“At present, there is little indication that China is willing to alter its approach in these areas.”

In the end, the personalities of the two leaders may help them reach some form of agreement on trade and investment, even if it doesn’t directly address subsidies, information security standards or other issues concerning groups like the US Chamber of Commerce.

“Xi has his own sensitive domestic circumstances, and Trump does too,” Lampton said.

“They’re both nationalistic leaders, they’re both prone to be sensitive to criticism.”

http://www.scmp.com/news/china/article/2080331/sealing-investment-deal-within-reach-trump-xi-talks

 

[Kiss_of_the_Dragon]

China and US are been like this for over 40 year, we knife throwing at each other over geo-politic arena but keep close cooperation in economy. We could have been better if US is not paranoid about China's rise, I don't think it's China's geo-political objective to replace US as #1.