A weekly sampling of news, analysis and
opinion on economic issues of
India, China and the U.S.
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Legal & Investment Guidance |
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Join us for a Webinar on Wed, March
12 at
11am EST.
This webinar will share thoughts and
reflections from
Ken Cutshaw, a lawyer and business executive who
has undertaken and advised on business
investments in India, China and the USA. He
will offer
insights of recent business transactions. He
will also
offer thoughts on the franchising business
trends for
both China and India. India continues to
liberalize and
encourage foreign direct investment and Indian
investment outside of India. There is a new
trend for
Legal Process Outsourcing that he will share.
China
has been expanding its business markets for
internal
investment and at the same time tightening up
safety
regulations in food processing and
manufacturing.
The US shows trends towards protectionism with
outsourcing regulations. This presentation
will bring
you up to date on many relevant legal /
investment
issues for your practical business concerns.
Kenneth A. Cutshaw, Honorary Consul for the
country
of India in the US and Executive VP for Church's
Chicken, has extensive experience with a wide
spectrum of global business transactions and
authored the Corporate Counsel's Guide to
Doing
Business in China.
The only cost is your long distance phone
call to dial-
in.
Title: Practical Business Concerns Between
India &
China
Date: Wednesday, March 12, 2008
Time: 11:00 AM - 12:00 PM EDT
System Requirements
PC-based attendees
Required: Windows® 2000, XP Home, XP Pro, 2003
Server, Vista
Macintosh®-based attendees
Required: Mac OS® X 10.3.9 (Panther®) or newer
Space is limited.
Reserve your Webinar seat now at:
https://www1.gotomeeting.com/register/2803747
67
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Headlines |
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Olympic Pressure on China (Washington Post,
Mar 11)
It remains in question whether international
pressures will stir China to expand press freedoms,
shift long-term environmental policy, or change policy
on hotly controversial topics like Darfur and Tibet.
Human Rights in China s executive director, Sharon
Hom, credits the communist country with reforming
education and healthcare and increasing funds for
social services. But she says these changes could be
in response to domestic unrest and international
monitoring bodies as much as pressure related to the
Olympics. It is clear that any reforms will be limited by
the key political imperative to maintain political and
social control, says Hom. She recommends that
China release a public progress report on its
Olympics pledges so it can be held accountable in a
transparent manner.
Singapore poised to ride China-
India wave, says Prime Minister Lee(The Hindu,
Mar 11)
He hailed the existing Singapore-India
Comprehensive Economic Cooperation Agreement
as "a gold-standard" pact, for the conclusion of which
the SICCI had provided "useful inputs." The
Chamber "can be an important agent" in growing the
bilateral relationship.
India's diplomacy in
Central Africa on the upswing(Thaindian News,
Mar 11)
In an apparent bid to catch up with China, India is set
to ramp up its economic diplomacy in resource-rich
Central Africa - a region that didn't loom large on New
Delhi's radar till now - by signing two pacts with the
Democratic Republic of Congo (DRC) Wednesday.
Official sources told IANS that a joint commission
declaration and an agreement for the
Telecommunications Consultants India Ltd (TCIL) to
set up a segment of the Pan-African e-network in the
African country are to be signed.
Opinion
Vietnam in Growth
league with China, India(The Nation: Bangkok's
Independent Newspaper, Mar 12)
The answer is rather positive if you ask Phung Dinh
Thuc, vice president of Petroviet-nam, who yesterday
attended Gastech 2008, the global natural-gas
exhibition and conference in Bangkok.
Thuc, whose country will host the next major regional
natural-gas event in Hanoi in November, said while
Vietnam was not on the scale of China, it certainly was
a significant economy in Asia.
"Through the end of last year, Vietnam's growth rate
exceeded that of Thailand, Malaysia, Taiwan, South
Korea and even India, its closest rival."
Thuc believes Vietnam can be the new Asian
economic tiger, as evidenced by some key economic,
financial and industrial indicators.
For instance, the country now produces and uses
more cement than does France, its former colonial
ruler, and the main index for Ho Chi Minh City's stock
market and smaller exchanges in Hanoi have nearly
doubled this year.
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Energy |
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India's Reliance Energy to
change name to Reliance Infrastructure
(Forbes, Mar 10)
India's largest integrated private sector power utility,
Reliance Energy Ltd, said it has decided to change its
name to Reliance Infrastructure Ltd.
The change is subject to shareholder approval.
In a filing with the Bombay Stock Exchange, the
company said that over the past two and a half years it
has emerged as a leader in all areas of infrastructure
business and the new name adequately reflects the
current nature of its businesses.
China reshuffles energy sector, little
change seen(Reuters, Mar 11)
China on Tuesday unveiled a long-awaited reshuffle
of its energy sector, setting up two new but relatively
weak bodies that analysts say may struggle to
improve handling of demand, security and powerful
companies.
The government is keen to consolidate control of
industries that are a vast magnet for investment, a key
component of foreign policy and a potential
touchstone for social unrest at home.
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Information & Communication Technologies |
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China SMBs set to spend
US$42B on ICT(ZDNet Asia, Mar 7)
According a new report from AMI-Partners, SMBs will
spend US$42 billion on infocomm technologies this
year, a 12-percent increase over 2007. The New York-
based research house specializes in SMB research.
The study also found that about 70 percent each of
small businesses with fewer than 100 employees
and medium-sized businesses with between 100 and
999 employees expect revenue growth this year.
Some 55 percent of small businesses, and 53
percent of midsize ones, reported a jump in revenues
in 2007.
Nigeria: Revenue From Removable Memory Cards
for Cell Phones Booms, Says Abi(allAfrica.com,
Mar 10)
The trade exhibition which attracted no fewer than
6,000 exhibitors around the world paid particular
attention green IT. For one thing, millions of
professionals who attended the event witnessed the
coming of age of mobile communication and the event
the market success of the internet. The fair which
afforded foreign vendors to showcase their latest ICT
products available in the global ICT market also
afforded world class memory card supplies including
China Biwin Technology and Hong Kong Coby
manufacturing to present the latest removable cards
available in the mobile phone industry.
Investigation threat to RIM's India market
Probing whether BlackBerry poses security risk
(Financial Post, Mar 11)
Research In Motion Ltd. faces a potential BlackBerry
blackout in one of its hottest markets after the Indian
government said it is investigating whether the device
poses a security risk and could be used for terrorism-
related purposes.
The Indian government's Home Affairs office is
involved in meetings with four of the country's telecom
carriers to evaluate whether the BlackBerry's secure
encrypted messaging features would help terrorists
evade authorities.
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Agriculture |
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World Bank to increase Africa agriculture
loans(Reuters, Mar 11)
China has become one of the biggest investors in
Africa as the world's most populous nation hunts the
globe for resources to fuel its economic growth.
But questions remain over whether China will adapt
its various commercial interests to developing the
African continent and push it toward more sustainable
economic growth.
China earmarks record
funding to ensure grain safety, boost farmers'
income(China View, Mar 8)
China's record amount of agricultural funding this year
will help ensure grain safety and increase farmers'
income, but challenges to redress the rural-urban
income gap remain, researchers say.
Premier Wen Jiabao said in his government work
report to the ongoing annual session of the National
People's Congress (NPC) that the central government
will spend 562. 5 billion yuan (about 79.2 billion U.S.
dollars) on agriculture sector this year, nearly doubling
the 2004 figure.
India dumped from meet on Doha(Business
Standard, Mar 12)
India has been excluded from a high-profile meeting
of the European Union, the US and Brazil that is
attempting to hammer out an agreement on the Doha
trade negotiations in London, trade diplomats said.
Up until now, India is part of what is called the Group
of Four - the US, the EU, Brazil and India - that held
rounds of informal meetings to address issues
pertaining to reduction commitments in agricultural
subsidies and tariffs, and cuts in industrial products.
Last year, the G-4 meeting collapsed in Potsdam,
Germany, because of unbridgeable differences
between the US and the EU on the one side, and
Brazil and India on the other over how to liberalise
trade in industrial goods.
Subsequently, the US, the EU and Brazil held one-on-
one private meetings without India to see how far they
could stitch an acceptable package to address their
specific concerns.
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Industrial Resources | Manufacturing |
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Companies
look to China as growth market and
manufacturing hub (American Machinist,
March 10)
The advantage of China solely as a low-cost,
manufacturing-for-export market is
diminishing. Companies that integrate China
into their global supply chains as
a source of competitive advantage are far
more successful than companies that
pursue narrower objectives in China,
according to a study jointly conducted by
management consulting firm Booz Allen
Hamilton and the American Chamber of Commerce
in Shanghai.
India's
Ceat to invest 8 bln rupees in new tyre
manufacturing facilities (Forbes,
March 10)
Indian tyre manufacturer Ceat Ltd said it
will invest 8 bln rupees in a new radial
project and OTR (off-the-road) facilities.
Speaking to journalists in Mumbai,
managing director Paras K Chowdhary said Ceat
will invest 5 bln rupees in the
radial project in the first phase and 3 bln
rupees in the OTR facility, which
will be set up in the western Indian state of
Maharastra.
Wyeth
To Build Nutritional Manufacturing Facility
In China With $280 Mln Investment
(RTT News, March 10)
Madison, New Jersey-based research-driven
pharmaceutical firm Wyeth (WYE) on Monday
announced that it is investing $280 million
in China, to build a state-of-the-art
nutritional manufacturing facility, which
would be one of the world's largest
nutritional manufacturing facilities when
completed. The production in the new
facility in Suzhou Industrial Park, Jiangsu
Province will mainly be infant formula
milk powder and other nutritional products.
Paradigm
shift for Manufacturing industry (India
PR Wire, March 10)
The 21st centuryis seeing a paradigm shift
for Indian Manufacturing industry. Companies
looking at local markets are now aiming to be
connected with Global markets. "To
reach out to newer markets and alliances and
business opportunities, company's
are faced with the hard fact that unless they
improve their return on investments,
comply with tough regulatorynorms and
enhanced safety requirements, they will
miss the mark" said Mr J P Singh,
President,Automation Industry Association(AIA),
while speaking at PharmaTech 2008.
China factory gloom
plays into state plan (The Guardian,
March 9)
When production lines close in the United
States, protectionism tends to rear
its head. In China, the opposite is
happening. A volatile mix of inflation, a
rising yuan and new labour legislation has
corroded profits in the country's
manufacturing
heartland. Hundreds, possibly thousands, of
factories have been forced to close
or leave the Pearl River Delta, which churns
out more than a quarter of China's
exports. Some are moving inland. Others are
going to places like Vietnam, where
labour is even cheaper.
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Environment | Climate Change |
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India,
China to work on 'carbon sinks'
(Business Standard, March 9)
Having pushed the idea that countries should
be compensated for conservation of
forests at the UN convention on climate
change at Bali, India is once again in
a leading role to make this happen. New Delhi
has invited China, that had supported
India's idea vociferously, and all other
developing nations to a two-day
meet where scientists and policy makers are
discussing ways to quantify 'carbon
sinks' - which in the layman's terms means
the amounts of harmful
green house gases (GHG) that a particular
forest has guzzled up and thereby helped
climate change mitigation.
India's
climate change policy a hot topic (San
Francisco Chronicle, March 9)
It is Friday night in the center of new
Indian ambition. The air is thick with
the construction dust of new glass-fronted
high-rise buildings. The traffic moves
so slowly that commuters can gape all they
want at the Burberry advertisement
that lights up the facade of a shopping mall.
In the din of car horns and cranes,
Sucharita Rastogi, 27, a business school
graduate, waits wearily for her office
van to pull up and take her home; it will be
at least a 90-minute crawl.
"Mind-wise,"
she says, "we are exhausted, sitting,
waiting."
China's green leap
forward (Toronto Star, March 8)
No gasoline-powered car assembled in North
America would meet China's current
fuel-efficiency standard. Even vehicles
produced under California's proposed,
and much praised, efficiency law - being
fought tooth and nail by the U.S.
and Canadian governments and the auto
industry - wouldn't come close to
the Chinese mileage limits. If that's a
shock, take a deep breath. There's more.
China
to integrate biodiversity and climate
change (China Internet Information Center,
March 6)
While harsh blame for global warming is
directed at auto emissions released from
automobile exhaust pipe that congest traffic
on busy roads, or criticism is directed
at the countless heavily smoking chimneys in
plants, we may inadvertently ignore
the wealth of natural resources -
biodiversity and healthy ecosystems -
as a way to mitigate and adapt to the impacts
of climate change. For example,
forests and marshlands are natural carbon
dioxide sinks and naturally reduce atmospheric
greenhouse gas concentrations.
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Corporate Responsibility |
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Companies
focus more on social responsibility projects
in villages (LiveMint, March
11)
Several foundations run by corporate houses
plan to devise a common strategy to
ensure transparency in their social and
community development operations, such
as tracking spending in and progress of such
projects in their annual reports.
The effort is significant because it brings
together a wide range of Indian companies
to share ideas on innovating sustainable
programmes. Among them are Multi Commodity
Exchange of India Ltd, Anil Dhirubhai Ambani
Groupand media company Bennett, Coleman
and Co. Ltd, which are expected to meet
sometime next month in New Delhi.
'Sapporting'
a cause (The Economic Times, March 10)
"When you sit in air-conditioned offices day
and night, it's very
easy to lose perspective of daily realities,"
muses SAP Labs employee Rathish
Balakrishnan. So how does he manage to stay
afloat amid the rigours of the daily
grind? "Being part of the CSR initiative of
SAP Labs keeps me grounded and
gives me a chance to create opportunities for
the underprivileged and make a difference
to society."
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Innovation |
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What's
Next For India? (InformationWeek, March
8)
Gail Farnsley knows in her gut that better
online collaboration tools will help
Cummins build better truck engines. But gut
feelings don't deliver ROI, so this
CIO hasn't been lobbying for a big budget
to implement them. Instead, she's talking
with IT outsourcing partners in India,
including IBM, Tata Consultancy Services,
and its own IT joint venture, KPIT Cummins,
about what they have going in this
area. Do they have collaboration tools that
they hope to sell to other companies,
where Cummins could be a test site for little
or no cost?
China's new
designers: Building on a rich heritage of
innovation (IHT, March 9)
It is the country that once invented
gunpowder, wrought iron, the compass, paper,
silk, and the toothbrush. These days it is
the world's biggest workshop, making
everything from the contents of
Wal-Mart's bargain bins to lusciously
designed
objects like the iPhone. That country is, of
course, China. Given its frenzied
growth, the next logical step is for the
Chinese to revive their rich history
of innovation to ensure that some of their
future products are "Designed
in China," not just "Made in
China." Whether they succeed is one
of the most contentious issues in design
today, and a thorny challenge to all
of the foreign companies that have been
manufacturing there so profitably.
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Healthcare | Medicine |
 |
Chinese doctors
say wronged on health care woes (Reuters,
March 6)
Thousands of Chinese doctors are beaten up
every year and the profession is commanding
less respect as rising medical costs and
inequality of access fuel mounting discontent,
a survey in the country has shown. China
embarked on massive economic reforms
three decades ago and has since abandoned a
cradle-to-grave welfare system, causing
hardships for millions left behind by rapid
development.
Pfizer's
anti-smoking drug in India despite US
regulator warnings (LiveMint, March 10)
Doctors and experts have expressed concern
over an anti-smoking drug, manufactured
and marketed by the world's largest drug
maker Pfizer Inc., being launched
in India barely a month after the US health
regulator issued safety warnings and
said it was continuing investigation whether
the drug triggers mood changes and,
in some instances, suicides. Pfizer Ltd, the
Indian unit of the US pharmaceutical
giant, which has launched the drug
varenicline sold as Champix in India (it is
branded Chantix in the US), says the drug has
proven therapeutic value. It is
a prescription drug that will be promoted
only through doctors who will be informed
of its risks carried in its labelling, the
company insists, adding that it will
carry out detailed post-marketing
surveillance on the drug.
Minister
calls for ethical medicine (China Daily,
March 5)
Improving the ethics of the country's
medical professionals is a key task for
the nation's universities, China's
top health official has said. Chen Zhu, the
minister of health, made remarks to this
effect at a two-day inter-ministerial
meeting on medical education that concluded
last Friday. He said the medical community
was beset by a general unwillingness to
accept responsibility and a lack of awareness
on the part of its members about their legal
obligations.
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Logistics | Transportation |
 |
Beijing
Takes Aim at Passenger-Jet Market (Wall
Street Journal, March 10)
China has confirmed plans to set up a company
to make large passenger airplanes,
taking another small step toward a grand goal
but with a long haul yet ahead.
The new company will aim to design, produce
and sell jetliners big enough to carry
more than 150 passengers. If successful, it
could eventually pose a threat --
at least in mainland China -- to Boeing Co.
and Airbus, which now dominate the
Chinese and global markets for passenger
aircraft.
Bumpy ride
for automobile industry, falls 10.34 pc
(The Hindu, March 10)
The rough ride for the Indian automobile
industry continued with the overall vehicle
sales declining by 10.34 per cent in
February, mainly on account of falling
motorcycle
sales, down by 17.68 per cent. According to
figures released by the Society of
Indian Automobile Manufacturers (SIAM), the
domestic passenger car sales managed
a growth of 2.31 per cent in February.
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Newsletter staff |
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Publisher: L. Roxanne Russell
Editor of Academic Resources: Dr. S.V.
Char
Co-Editor: Abhijit Agrawal
Co-Editor: RJ Paulsick
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ICA
Institute, founded by Dr. Jagdish Sheth,
is a non-profit research institute working to
foster research and dissemination of
knowledge on the rise of China and India and
their impact on global markets, global
resources and geopolitics of the world. The
ICA Institute's mission is to generate new
perspectives on the role of market and
resource driven economic development. ICA
Institute fosters interaction and dialogue
between academic scholars, industry leaders
and policy makers on the impact of emerging
economies in general and China and India in
particular. Specifically, ICA Institute is
positioned to be a catalyst between faculty
and students in International Business and
industry leaders and managers.
Learn more about the ICA institute
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