M&As by China in countries part of BRI soar, despite capital crack down
The Dollar Business Bureau Mergers and acquisitions (M&As) by Chinese firms in nations which are part of the Belt and Road Initiative (BRI) are rising, even as the Government cracks down on acquisitive conglomerates of China to limit capital outflows. The acquisitions by Chinese firms in 68 countries that are officially linked to the foreign policy of President Xi Jinping totaled around $33 billion till August 14, exceeding the $31 billion total count for the entire 2016, as per the data by Reuters. The BRI project, unveiled in 2013, is aimed at creating a modern-day ‘Silk Road’, which connect China by sea and land to Pakistan, Southeast Asia and Central Asia, and further to the Europe, Africa and Middle East. President Xi has ...
Chinese envoy proposes action plan to resolve Sino-India differences
The Dollar Business Bureau Extending an olive branch to India, Chinese envoy Luo Zhaohui proposed a four-pronged plan to resolve disputes, and further a friendly Sino-Indian bilateral cooperation. “Firstly, start negotiation on a China-India Treaty of Good Neighbourliness and Friendly Cooperation. Secondly, restart negotiation of China-India Free Trade Agreement. Thirdly, strive for an early harvest on the border issue. Fourthly, actively explore the feasibility of aligning China’s ‘One Belt One Road Initiative, and India's 'Act East Policy',” Luo said, in his address to the United Service Institution on May 5, 2017. While many sensitive issues, including China’s opposition to India’s Nuclear Suppliers Group (NSG) membership, have put daylight between the two nations, this move showcases China’s willingness to meet India half-way through. Speaking ...
China dismisses Pak industries' concerns over cheap imports
PTI China on Friday dismissed as "unnecessary" the concerns of Pakistani businesses over the possibility of local markets getting flooded with cheap Chinese goods due to tax exemption under the CPEC project, marginalising local industries. "As for the specifics, I am not aware of them, but I think your concerns are unnecessary," Chinese foreign ministry spokesperson Hua Chunying said. Pakistani companies have expressed concerns over Chinese suppliers, who will get heavy tax exemptions, may flood local markets with cheap Chinese goods when the trade route under the USD 46 billion China-Pakistan Economic Corridor opens. Playing down such concerns, Hua said the CPEC, part of Beijing's Silk Road project, is a new cooperation framework set by China and Pakistan ...
China's outbound direct investment reaches $170.11 billion last year
The Dollar Business Bureau China's non-financial outbound direct investment (ODI) grew 44.1% year-on-year to $170.11 billion in 2016, as it began to invest its forex reserves, over $3.05 trillion, in various projects abroad. Last year, the Chinese companies invested in 7,961 overseas ventures across 164 countries and regions, according to the Chinese Ministry of Commerce. Beijing is also giving fillip to Chinese President Xi Jinping's Silk Road initiative, also known as The Belt and Road Initiative, which requires a mammoth investment of about $1 trillion. China’s state-run Xinhua news agency said The Belt and Road initiative was a strong boost to collaboration between Chinese and foreign firms. Chinese companies have pumped in almost $15 billion in countries taking part in Beijing's new Silk Road initiative ...
China to boost PPP model in Silk Road initiative countries
The Dollar Business Bureau China will encourage public-private partnerships (PPP) in the nations participating in the Belt and Road Initiative or One Belt One Road (OBOR) initiative, a trade and infrastructure network connecting Asia with the Europe and Africa with the ancient trade route, said an official on Sunday. He Lifeng, Deputy Head, National Development and Reform Commission (NDRC), said NDRC and other departments, in order to encourage the PPP model in nations along the routes, have come up with the mechanism. However, he did not divulge more details. The PPP model would help in facilitating the growth of the projects as it widens the financing channels for the forms, he said. Innovative financing mechanisms were essential as some projects under Belt and Road Initiative need huge investments ...
India must focus on Silk route connectivity: UNESCAP
The Dollar Business Bureau Asking India to explore the full potential of the South Asian region, a senior executive of the UNESCAP said since India aspires to play a key role in the economic transformation of the region and establish itself as a central point for Asia-Europe trade; it must focus on enhancing connectivity along the Silk Route. "South Asia can again be a hub of economic activities through improved connectivity, as it was in the ancient times," said Nagesh Kumar, director (South and South-West Asia Office), United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP). "Reviving the Asian trade route would put South Asia at the centre of Europe and East Asia," he said, calling on India to explore the full ...
Russia offers Indian firms a stake in Yamal LNG
The Dollar Business Bureau Russia has made an offer to Indian oil firms for a stake in Phase II of Yamal LNG, the largest proposed liquefied natural gas project in the Arctic. The stake offer was made when Dharmendra Pradhan, Minister of State for Petroleum and Natural Gas of India, visited Russian city St. Petersburg last month, according to sources. Petronet LNG Ltd, India's leading importer of natural gas, is examining the offer and other state-owned companies such as Indian Oil Corporation Ltd (IOC) may join in afterwards, sources said. In 2013, Novatek OJSC, Russia's biggest independent producer of natural gas, had offered a stake of 9 percent in the $27 billion Phase I of Yamal LNG to a consortium of IOC, ONGC Videsh Ltd (OVL) ...
China's economic slowdown adversely affected India: Rajan
Source: PTI Some comments from India that China's pain is India's gain has drawn strong reactions from the Chinese media China's pain of economic slowdown is India’s pain too, RBI Governor Raghuram Rajan said contradicting government assertions that India will not be affected by deceleration of Chinese economy. “The Chinese slowdown is a concern for the whole world. There is a lower demand for some of our exports to China. But indirectly too, many of the countries are not exporting to China as much as they did and they are buying less from us,” Rajan said in an interview with Hong Kong-based South China Morning Post. “But India being a commodity importer, has been helped a bit by cheaper commodities. ...
