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China Pulse
The Monthly China Journal of Confederation of Indian Industry
December 2013
December 2013- Volume 10 No 12
India & China
India-China trade (Jan. –Nov. 2013)
Trade
Nov. 2013 US$
billion
Jan. - Nov. 2013
US$ billion
Change Compared
to Jan.- Nov. 2012
Total Trade
5.386
59.249
-2.7%
Imports from China
3.945
44.379
2.2%
Exports to China
1.441
14.870
-14.8
India’s deficit
2.504
29.509
15%
http://www.customs.gov.cn/publish/portal0/tab49666/info679722.htm
CII & China
India China Meeting of Multinational Corporations Leaders
CII organized an 18-member business delegation led by Mr. Deep Kapuria, Chairman, CII National MSME Council & Chairman, HiTech Group to attend the 6 th Multinational Corporations Leaders Roundtable (MCLR) from 15-17 November 2013 in Beijing. As part of
the MCLR program, a session on ‘India-China Industry Roundtable’ was held on 16 November. The Meeting was attended by over 40
senior representatives from Indian and Chinese companies. It was chaired by Mr. Deep Kapuria and Mr. Xu Tianliang, former Deputy
Editor in Chief of People’s Daily, Vice President of China International Council for the Promotion of Multinational Corporations
(CICPMC). Mr. Wang Liping, Deputy Director General of Asian Affairs, Ministry of Commerce; Ms. Namgya Khampa, Counselor (Trade
& Commerce), Embassy of India, Beijing; Mr. Gan Jingzhong, Vice Governor of Beijing Chaoyang District; Mr. James Zhan, Chairman,
CII IBF China and President of Tata Sons Limited China; Mr. Jin Tao, Deputy Director General of China Development Bank delivered
speeches on the theme of “Setting the Agenda for Building India-China Sustainable Business Partnership”. Speakers from Indian and
Chinese companies such as Wipro Infrastructure, China CNR, Tech Mahindra, ZTE, Essar Group, etc. spoke on specific sectors like
Infrastructure, Manufacturing, Service & Knowledge Industry, and Environment & Sustainable Development to map the road on how the
Indian and Chinese companies can join hands to work together in these sectors. CII and CICPMC signed an MoU at the conclusion of
the meeting.
Indian & Chinese entrepreneurs at India China Meeting of Multinational Corporations Leaders, 16 November 2013, Beijing
Session on “China Update 2013 & the Way Forward 2014 and Shanghai Free Trade Zone Update”
CII IBF China organized a session on “China Update 2013 & the Way Forward 2014 and Shanghai Free Trade Zone Update” on 13
November 2013 in Shanghai. Mr. Andreas Odrian, Director, Head of Corporate Banking Coverage, MNC China Corporate Finance,
Deutsche Bank AG made a presentation on the key decisions of the Third Plenary Session of the 18th Communist Party of china (CPC)
Central Committee, which was held in Beijing from 9 to 12 November, and their impact on different sectors. The Shanghai Free Trade
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December 2013
Zone (FTZ) which came into force on September 29 is a historic step for the Chinese government, which has aroused the interest of
many companies willing to invest in China. Establishment of the Shanghai FTZ highlights the simplification of foreign investment and
trade rules, favorable fiscal policies and financial reform. Ms. Clare Lu, Qin Li Law Firm made a presentation on policy update of
Shanghai FTZ. More than 45 representatives of Indian companies attended the session. This meeting was followed by an interaction
with Mr. Wang Xinlin, Vice Chairman of China (Shanghai) Pilot Free Trade Zone Administration on 27th November 2013.
Mr. Rangarajan Vellamore, Chairman, CII IBF China
presents a gift to Mr. Andreas Odrian at the “China
Update 2013 & the Way Forward 2014 and Shanghai
Free Trade Zone Update”.
Mr. Ravi Venkatesan speaking at the China Europe
International Business School, 11 October 2013,
Shanghai
Talk on "India: A Defining Choice for your business"
CII along with the Embassy of India, Beijing and China Europe International Business School organized talks on "India: A Defining
Choice for your business" by Mr. Ravi Venkatesan, former Chairman, Microsoft India & Member of the Board of Infosys and Volvo at
Beijing on 8th October and at Shanghai on 11th October 2013 respectively. Mr. Venkatesan offered advice on how firms can overcome
the unique challenges of the Indian market. He argued that chaotic India is in fact an archetype of most emerging markets, many of
which present similar challenges but not the same potential. Succeeding in India therefore becomes a litmus test for your ability to
succeed in other emerging markets. If you can win in India, you can win everywhere. Around 60 representatives from Chinese and
multinational companies attended the talk in Beijing and Shanghai each.
China Economy
China’s external trade (Jan. –Nov. 2013)
Nov. 2013
Jan.- Nov. 2013 Change Compared to
Trade
US$ billion
US$ billion
Jan. - Nov. 2012
Total trade
370.609
3,770.492
7.7%
Exports
202.205
2,002.319
12.7%
Imports
168.404
1,768.173
5.3%
Surplus
33.801
234.146
17.6%
http://www.customs.gov.cn/publish/portal0/tab49666/info679722.htm
Economy indicators
CPI (Nov)
PMI (Nov)
51.4
CPI (Jan-Nov)
3%, down from 3.2%
in October
2.6%
PPI (Nov)
Contracted 1.4%
Urban
fixed
asset
investment (Jan-Nov)
Grew 19.9% to 39.13
trillion yuan
Industrial
valueadded output (Nov)
Up 10% YOY
Retail sales (2013)
To increased by over
13%
Retail sales (JanOct, 2013)
Grew 13%
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December 2013
Banks' non-performing loans up slightly in Q3
Bad loans by China's lenders rose 24.1 billion yuan ($3.96 billion) in the third quarter, the biggest quarterly rise since the fourth quarter
of 2005. The ratio of nonperforming loans rose to 0.97 percent at the end of September from 0.96 percent at the end of June (More).
China's Jan.-Sept. gold output rises 6.8%
China produced 307.8 tons of gold in the first nine months of this year, an increase of 6.8% from a year earlier. Of the total output,
253.155 tons came from gold mines, up 4.93% year on year. The remaining 54.655 tons were a by-product of nonferrous metal
smelting, up 16.44%. China became the world's largest gold producer in 2007 and is likely to overtake India as the world's largest gold
consumer this year (More).
China's mobile phone users hit 1.22 billion
The number of Chinese mobile phone users reached 1.22 billion at the end of October. Among them, 67.19 percent or 817 million
mobile phone users are connected to the internet and 34.5 percent of them are 3G users. In contrast, the number of fixed line users
shrank by 8.82 million in the first ten months of this year to 269 million (More).
Government & Politics
CPC Central Committee pushes for reforms
The Third Plenary Session of the 18th CPC Central Committee which was in session from 9-12 November 2013 took decisions on
major Issues concerning comprehensively deepening reforms in China. Reform and opening-up has been a crucial choice that China
has made regarding its destiny in modern times. The Chinese leadership has emphasized that successful experience of the past
reforms and opening-up must be built upon and decisive results are to be achieved in key areas in 2020. The proposed reforms
covered areas such as: Basic economic system, Modern market system, Government role, Fiscal and tax system, Urban-rural
development, Further opening-up, Political system, Rule of law, Supervision of power, Cultural system, Social services, Social
governance, Ecological civilization, Defense and army reform, CPC's leadership etc. The document of the Third Plenary Session also
stressed that the CPC must strengthen and improve its leadership in such a way to become a Party that learns, innovates and serves
the people (Detailed reform roadmap).
Zhejiang province approves first private financing regulations
Zhejiang Province of China has approved regulations on private financing for Wenzhou City on November 22. According to the
regulations, first of its kind in China, private loans involving more than three million yuan or more than 30 lenders should be recorded by
local financial management authorities or private lending registration service centers. The State Council, China's cabinet, approved the
establishment of a pilot financial reform zone in Wenzhou in March last year to regulate private finance after a crisis in the city in 2011
(More).
Yuan cross-border trade settlement hits 8.6 trillion
China's cross-border trade settlements in its national currency, the yuan or renminbi, totaled 8.6 trillion yuan ($1.4 trillion) by the end of
September this year since the program's launch in July 2009, according to Xing Yujing, secretary general of the monetary policy
committee of the People's Bank of China. Cross-border yuan transactions have been conducted in 220 countries and regions. China
had signed currency swap contracts with 23 countries and regions by the end of September (More).
Shenyang, Dalian to offer 72-hour visa-free stays
Shenyang and Dalian cities in Liaoning Province of China will launch 72-hour visa-free stays for foreign travelers from January 2014.
Travelers from 45 countries would be allowed 72-hour visa-free stays if they hold third country visas and have onward tickets to leave
for a third country or region within 72 hours. So far, Beijing, Shanghai, Guangzhou, Chengdu and Chongqing have introduced 72-hour
visa-free service (More).
China to target price fixing
China's leading price regulator will crack down on excessively high prices in six industries as it looks to further protect consumers,
according to the news of Shanghai Securities. These six industries include aviation, consumer goods, automobiles,
telecommunications, pharmaceutical and home appliances (More).
Business & Industry
China Construction Bank buys Brazil's BIC
China Construction Bank has entered into a share purchase and sale agreement with Brazilian bank BIC to acquire BIC's controlling
stake for 1.6 billion Brazilian Reais ($720 million). China Construction Bank has agreed to buy 157.4 million ordinary shares and 24.7
million preferred shares issued by BIC, by which it would hold 72% of BIC's total shares upon completion of the transaction. The
transaction is subject to approvals from the China Banking Regulatory Commission, Banco Central do Brasil (Brazil's central bank) and
other regulatory authorities in China and other jurisdictions. The acquisition would mark a significant step in the globalization strategy of
China Construction Bank, facilitating future expansion of the bank's networks in Latin America (More).
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December 2013
PetroChina acquires 25% interest in Iraq oil field
PetroChina Company Limited (PetroChina) has acquired a 25 percent interest in the Technical Service Contract (TSC) for the West
Qurna-1 (WQ1) oil field in Iraq. The entry of PetroChina into the WQ1 project will be beneficial for PetroChina to work efficiently with
other projects in Iraq and can help the company develop a larger and stronger presence in the upstream operations in the Middle East,
as well as drive cooperation with other international oil companies in high-end oil markets. (More)
Sinopec takes share in Apache's Egyptian business
Sinopec Group and Apache Corporation announced on November 15 that Sinopec has acquired a one-third share of Apache's
Egyptian oil and gas business for $3.1 billion. Apache is an independent U.S. upstream oil and gas company, with 24 contractual
blocks in Egypt, mainly located in Egypt's West Desert (More).
CII India Office
U. D. Bhatkoti, Advisor
Confederation of Indian Industry
The Mantosh Sondhi Centre
23 Institutional Area, Lodi Road, New Delhi-110003
Tel: 91-11-2462 9994-7; Fax: 91-11-24601298
Email: u.d.bhatkoti@cii.in; Website: www.cii.in
CII China Office
Madhav Sharma, Chief Representative
Confederation of Indian Industry
Room No 11A47/49, Shanghai Mart,
2299 Yan'an Road (West), Shanghai 200336, China
Tel: +86 (21) 62360969; Fax: +86 (21) 32283510
Email: ciichinarep@cii.in; Website: www.cii.in
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