. The latest survey shows that earnings of US affiliates have rocketed,
making China’s markets look lucrative. The CEOs’
estimate for total China earnings, which includes
affiliate earnings in Hong Kong & Singapore and income
from licensing fees & private services--last year’s
total amounts to $8.2 billion.
.
But in 2003, US companies made $7.1 billion in Australia,
a market of only 19 million. They earned $8.9 billion in
Taiwan and South Korean, emerging economies with a
combined population of 70 million. And in Mexico,
considered by many people to be an investment dud compared
with China, US companies earned $14.3 last year.
.
The fact is that foreign earnings for the Chinese economy
have increased quickly, but from a low base. Indeed many
foreign businesses in China are still struggling to make
money at all from many surveys, including one done by the
American Chamber of Commerce.
. For the second year running, leaders of ASEAN have failed to take
Myanmar to task formally for its regressive steps on the
road to democracy.
. HSBC Private Equity has raised $700 million to buy stakes in companies
in India, China and elsewhere in Asia. The fund has
invested in business, including STX Shipbuilding of South
Korea.
. Asian airlines persuaded Airbus to build the world’s biggest-ever
passenger jet. Their buying decisions could help determine
the future of global aviation.
. Distortions in Chinese history are coming to the surface, e.g., silence
on wars of aggression in Tibet (1950) and ill-fated war
with Vietnam (1979), Japan’s defeat due to Chinese
resistance, not by US, etc. The closer history gets to the
present, the more political it becomes.
. China is to approve construction of 3 steel mills expected to free the
country from its dependence on import in 3 years.
. Fifty Chinese companies are setting up a $121 million fund that will
invest in overseas oil and gas fields, an executive with
one of the companies said.
. China is trying to shore up its weak credit-checking systems by
launching a pilot consumer credit information network and
a court-operated database that will publicly blacklist
recalcitrant debtors.
. U. of MD’s Robert Smith School of Business has strengthened its
position in China, agreeing to form
a partnership with an e-learning provider.
. A secession law being drafted by China could provide the legal basis for
using force against Taiwan, but is unlikely to include a
clear deadline for when reunification must take place,
analysts said.
.
How can Taiwan secede from China when it has never been
(perhaps soon will be) part of PRC?
.
A proposal to the legislature gives Taiwan a deadline of
Dec. 31, 2020 to agree to reunification and give up any
independence aspirations or face war, according to Hong
Kong-based Phoenix TV’s Web site.
. A trade deal between US and Taiwan could distract the island from
normalizing relations with China, according to a new
research.
. Wal-Mart Japan said its imminent restructuring of store group Daiei
presented opportunities although its focus was integrating
local partner Seiyu.
. Japanese companies are increasingly wary of raising capital in the
European Union because of fear that Brussels could insist
that they overhaul their accounts.
. Japan and US signed an agreement cementing cooperation on the
development of a ballistic missile system. They began the
joint research on the next-generation missile defense
system after
North Korea test-fired a missile that passed over Japan in
1998.
.
Carrefour of France will spend $454 million in the next 2
years to accelerate store openings and renovations in
South Korea. It already has 27 superstores and 6,500
employees in the country.
. Dawn Communications, a South Korean Web site operator, said it would
launch Internet-based call services in a bid to cope with
stalled subscriber growth.
. North Korea’s only foreign car company launched a new model last year.
But a shortage of gasoline, roads and buying power
suggests the venture isn’t about profit.
. Singapore Airlines will offer live TV news on flights around mid-2005.
Passengers can choose from 4 channels fed to their laptops
via the Connexion by Boeing system.
.
Meanwhile, Japan Airlines which is installing the same
technology, will start providing wireless Internet access
on flights between Tokyo and London.
.
Access will be available in all classes but will open
initially only every other day. For the first 3 months a
specialist from Connexion by Boeing will be on board to
assist users in English and Japanese.
. Singapore-based budget airline Jetstar Asia had set its fares for its
initial destinations of Hong Kong, Thailand and Taiwan. It
was seeking the right to fly to India and to add route to
China.
. Singapore has always been the high cost/high quality center for SE Asia.
Yet the first few months of 2002 have seen companies
opting for Malaysian and other alternatives.
. Fitch Ratings last week revised its outlook on Philippine debt, from
stable to negative, suggesting a ratings downgrade was
likely next year.
. Senators want more time to scrutinize the lateral attrition bill, a
major component of P80-billion tax-reform package endorsed
by Malacanang to Congress for early approval to raise
revenues for the cash-strapped Arroyo administration.
.
The foreign debt of RP, Asia’s most active sovereign
debt issuer, was 0.98% lower (at $55.6 billion) than the
$56.2 billion in Sept. 2003, said the central bank, which
did not give a reason for the decline in foreign debt.
. Thailand has filed a complaint with WTO over US anti-dumping duties
violate WTO rules.
. Traditionally divided by geography and ethnicity, Thailand’s northern
& southern Muslims are becoming increasingly
collaborative. Thai security officials are worried but the
implications.
. Australia has received new information warning that a terrorist attack
could be carried out soon in Indonesia, possibly targeting
international hotels, said the Dept. of Foreign Affairs
& Trade.
. Japan, South Korea, Taiwan, Hong Kong, Australia and New Zealand have
the highest proportion of their respective populations
online in Asia, while China and Japan can boast the
highest number of users overall.
.
The latest Political and Economic Risk survey by Hong
Kong-based PERC has just been released, making Australia
and Hong Kong the most secure, and India the least secure
in Asia, from the 10 countries polled.
. Indonesia and East Timor have agreed to establish a bilateral “truth
and friendship” commission to address the outbreak of
violence in 1999 that accompanied a vote for independence
in the former Portuguese colony.
. Special prosecutors in Indonesia arrested the governor of the restive
province of Aceh last week on graft charges in the highest
profile move against corruption since the election in
Sept. of Pres. Susilo Yudhoyono.
. The situation in Laos today—gross corruption, unpaid deserting
soldiers, and economy dependent on foreign aid closely
resembles the late 1980s. All that’s missing is the war
in Vietnam.
.
The economy is in shambles and poverty is widespread. Its
human rights record remains poor.
.
Purchasing power and private savings of many Laotians were
wiped out by triple digit inflation in 2 years following
the 1997 economic collapse. The kip
(local currency) dropped from 1,080 against 1 US dollar
that year to over 10,000. Tax collection is weak and
social services barely exist. Govt. workers wait months to
get paid.
. Ferrari signed Indian software group Tata to provide technology services
for its car in next year’s Formula One season.
.
Indian authorities may come under pressure to break with
the past when they appoint the next chairman of the
country’s embattled securities regulators, following the
agency’s setback in prosecuting alleged white-collar
malpractices.
.
Supporters of India’s new Congress-led coalition
government accused it last week of going back on a
controversial pledge to set the country’s first
nationwide safety net.
