Chinese Economics Thread

[bladerunner]

:china::china::china:

$150 million for the entire Hummer-company is not bad a deal because investors can turn around and sell all the tangible assets like the plant, machinery, inventory, land, etc. and recover the monies. The business is doable; that's why investors buy the company. We will see what sort of strategy the investors have to turn this venture into a profitable one.

I was thinking more along the lines of continued operations......... Theres no new product on the line and it would cost squillions to design a new model

 

[AssassinsMace]

In other articles I've read that they plan to make a more fuel efficient model.

 

[solarz]

Has anyone thought about the military possibilities of this acquisition? Perhaps the PLA could use this acquisition to improve their ability to produce military-grade vehicles?

 

[maozedong]

first, Sichuan Tengzhong will put more money to help GM to continued operation of the lines, Tengzhong will help Hummer into China market.
the second step Tengzhong and GM will open a new produce line in China, to reduce the cost for Hummer production. this step will be after 3 years.
every body knows it is a matter of fact GM already bankruptcy, just depend on the US government support, but GM company in China branch still making money.

 

[bladerunner]

In other articles I've read that they plan to make a more fuel efficient model.

Yip I read that to, something like 20miles to the gallon or something, its not much, with a trend going towards the thirtys for bigger vechiles 40+ for mid size and smaller. In my opinion they should stick with what they do best.

I dont know if they export alot to the West but things could get tricky if the WEst have their way, something I predicted earlier on in this thread.

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Climate protectionism on the rise
By Martin Khor

A new and dangerous form of trade and technology protectionism is fast emerging in the name of climate change, and it is poisoning North-South relations in the two negotiating arenas on climate change and on trade.

There are clear signs that some developed countries, especially the United States, are preparing to use unilateral trade measures, such as imposing tariffs, taxes or charges on the products of developing countries, on the grounds of combating climate change.

A bill passed recently by the US House of Representatives gives the US president authority to impose financial charges (or taxes) on some imports coming from developing countries that in the US view are not taking enough action to curb their greenhouse gas emissions.

The US House of Representatives has also sought protectionism against technology transfer through three bills it has adopted that prevent US negotiators in the UN Climate Change Convention from agreeing to any relaxation in the rules or enforcement of intellectual property. There are signs that other developed countries, including in Europe, are also preparing the grounds for climate-linked protectionism.

The developing countries are starting to oppose these moves. Indian political leaders protested to US Secretary of State Hillary Clinton about the threat of US carbon tariffs during her recent visit. China's Commerce Ministry has also criticized the protection element in the US climate bill.

Most importantly, the developing countries have taken up the issue at the climate talks leading up to Copenhagen. On August 13, the Group of 77 countries and China made a statement at the Bonn climate talks, warning developed countries not to adopt unilateral trade-restrictive measures, as these would contravene the Climate Change Convention's provisions.

India also proposed text for the outcome of the upcoming Copenhagen climate meeting that developed countries "shall not resort to any form of unilateral measures including countervailing border measures, against goods and services imported from developing countries on grounds of protection and stabilization of climate".

The text listed many provisions of the Convention that would be violated if such measures are taken. This was supported by many countries, including China, Argentina, Brazil, Singapore, South Africa, Saudi Arabia, and by the G-77 and China's statement.

In Geneva, many developing country diplomats are increasingly concerned about the likelihood of the United States and other developed countries making use of either tariffs or financial charges on imports of developing countries. Imposing extra tariffs or financial charges on imports on the basis of how the products are produced ("process and production methods", or PPMs in technical jargon) is very controversial.

It has been rejected by developing countries at the World Trade Organization (WTO) since 1996 as a form of protectionism, which they say will unfairly curb developing countries' exports. They also argue that it is against the rules of the WTO.

Many developed countries however have wanted to make use of trade measures on environmental grounds. They are preparing the case that trade measures linked to PPMs are legitimate, or else climate-linked trade measures are allowed under the general exception for the environment under the General Agreement on Tariffs and Trade (GATT).

Developing countries claim that linking trade measures to climate and the environment are unjust because they have lower technological capacity and thus cannot match the developed countries. Developing countries should instead be assisted through technology transfer, but the intellectual property rights regime (especially the TRIPS intellectual property rights agreement of the WTO) is an obstacle, and now the US Congress is proclaiming that the US administration cannot allow relaxation of the intellectual property rules.

If climate protection is allowed, it will also open the floodgates to all kinds of protection by blocking developing country products on the basis of how they are made.

This "mother of new trade protection" is coming at a time of economic recession when world leaders have piously proclaimed they will not resort to trade protection. The climate-trade issue is thus explosive, and is opening a Pandora's box that threatens to contaminate the negotiations in the United Nations Framework Convention on Climate Change as well as the WTO.

Before the situation deteriorates, developed countries should re-consider their moves on this issue, restrain the climate-protection forces in their society, and commit instead to a "fair game".

Martin Khor is Executive Director of the South Centre. He can be contacted at: [email protected]. For further reading on Climate Protectionism, check out this special edition of the South Centre bulletin.

(Published with permission of the Global Policy Innovations program at the Carnegie Council for Ethics in International Affairs.

Lets keep our fingers crossed that this doesn't happen, because if it does, a lot of chinese companys are gonna have to find money to ensure their factories comply, and thats where this 150mil. could come in handy. Futhermore the Hummer wont be seen as eco friendly vechile, and thus attracting so much tax no one would be interested in purchasing it.

 

[AssassinsMace]

That's not gonna to happen especially when the majority of Chinese exports are made for foreign corporations. Inflation will rise in the developed world and they can kiss selling those products to China when it comes to profits, their only bright spot, too. Zero-sum gain.

There are already charges that the developed world is going to sabotage Copenhagen which is just going to show the world that all those developed countries pointing the finger over Kyoto for years now are liars.

 

[bladerunner]

Has anyone thought about the military possibilities of this acquisition? Perhaps the PLA could use this acquisition to improve their ability to produce military-grade vehicles?

I understand the Hummer is a civilian vehicle, the military version is made by a entirely different company.

AS mentioned earlier, if it goes ahead it would be interesting times for the Chinese company thats already making Hummer copies.

 

[maozedong]

Lets keep our fingers crossed that this doesn't happen, because if it does, a lot of chinese companys are gonna have to find money to ensure their factories comply, and thats where this 150mil. could come in handy. Futhermore the Hummer wont be seen as eco friendly vechile, and thus attracting so much tax no one would be interested in purchasing it.

maybe you don't understand in China already many Hummers runing on the road,
It is a matter of fact there is a market demand, such as military, police, in China's vast western region, as well as transport difficulties in mountainous areas, it has its advantages, such as trucks, which fuel consumption, but still use it.
same as GM Buick, in U.S, Canada market, its hard to sale, but in China, GM China branch sale a lot of Buick.
reason 1, GM in U.S production costs are too high, only labour the worker pay 60 U.S. dollars per hour,and lots of benifits.
2 the U.S the economic downturn, it is significantly reduced purchasing power.
3 in China,the production cost are much lower, and government tax is very low, but for import car, chinese government levy high taxes,dfficult for foreign producers to enter the Chinese automobile market.
now,Sichuan Tengzhong purchase Hummer is the fact, but still nee the U.S government approve of the deal.

 

[bladerunner]

maybe you don't understand in China already many Hummers runing on the road,
It is a matter of fact there is a market demand, such as military, police, in China's vast western region, as well as transport difficulties in mountainous areas, it has its advantages, such as trucks, which fuel consumption, but still use it.
same as GM Buick, in U.S, Canada market, its hard to sale, but in China, GM China branch sale a lot of Buick.
reason 1, GM in U.S production costs are too high, only labour the worker pay 60 U.S. dollars per hour,and lots of benifits.
2 the U.S the economic downturn, it is significantly reduced purchasing power.
3 in China,the production cost are much lower, and government tax is very low, but for import car, chinese government levy high taxes,dfficult for foreign producers to enter the Chinese automobile market.
now,Sichuan Tengzhong purchase Hummer is the fact, but still nee the U.S government approve of the deal.

OK But theres already a company in China thats making Hummer look alikes for the military

 

[AssassinsMace]

China's billionaires rise to 130 despite global crisis

BEIJING, Oct 13 (AFP) Oct 13, 2009
Car battery tycoon Wang Chuanfu topped a new list of China's 1,000 richest people released Tuesday, which has 130 dollar billionaires in an emphatic declaration of the Asian giant's economic arrival.
Most of the super-wealthy on the Hurun Rich List, unlike Wang, made their fortunes in the property and stock markets -- the focus of Beijing's massive government stimulus efforts over the past year.

"China's wealth is growing at breakneck speed," Rupert Hoogewerf, the founder of the Shanghai-based Hurun Report which publishes the annual list, told a press conference.

"You can double the real number of billionaires in China to 260. There are still a large number of billionaires off the radar screens, managing to build up substantial wealth away from the public spotlight from property, the stock market and investments."

Wang, the founder of rechargeable battery and electric car maker BYD, leapt 102 places to top the rich list after his fortune increased more than five-fold to 5.1 billion dollars, said Hoogewerf.

The rich list gained 180 new members -- despite the entry criteria for the latest list rising by 50 percent to 150 million dollars.

Seven people moved into the top 10, in the biggest shake-up since the report started publishing the rich list in 1999.

Last year's richest man, Huang Guangyu, who made his fortune building up the nation's largest electrical appliance chain Gome, slipped to the 17th spot after he was detained late last year on suspicion of market manipulation.

Du Shuanghua, last year's second-richest person, plunged 39 places to 41 as he battled a state-owned company for control of Shandong-based private steel manufacturer Rizhao Steel.

"Since our 2004 list, we have seen a ten-fold increase in the number of individuals with personal wealth of at least 150 million dollars," said Hoogewerf.

"In 2004, we could only find 100 individuals with 150 million, whereas this year, we managed to find 1,000 individuals with 150 million."

Rebounding capital markets and property prices pushed the collective net worth of the 1,000 richest people in China to 571 billion dollars by September 15 of this year, from 439 billion dollars last year, the report found.

Zhang Yin, the woman who founded paper-recycling company Nine Dragons Paper and China's richest person in 2006, was in second place.

Zhang was one of 102 women on the list -- up from 88 last year and accounting for 10.2 percent of the total.

"Significantly, all are self-made, a remarkably high percentage compared with their Western counterparts. Chinese women now lead the world's richest self-made women," the report said.

Among the new people in the top 10 were husband and wife Huang Wei and Li Ping, who shot up 23 spots to fifth place through their 71 percent stake in Shanghai-listed property developer Xinhu Zhongbao.

Shares in Xinhu Zhongbao had surged 265 percent to 12.5 yuan in early September from 4.7 yuan a year ago, the report said, reflecting strong gains in the Chinese stock market.

Zhongwang Holdings chairman Liu Zhongtian moved into 10th place with 4.1 billion dollars after the aluminium manufacturer raised 1.3 billion dollars through an initial public offering earlier this year.





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