February 27, 2009
Beijing Readies Logistics Stimulus
February 26, 2009
400,000 Empty Containers Sit at ShenZhen Port
A dramatic illustration of the collapse occurring in the great rebalance of global trade can be found at Yantai port, ShenZhen, China, one of the top 5 container ports in the world: 400,000 empty container boxes
A similar story is heard from Hong Kong and Shanghai where the drop in activity is the worst on record...
Labels: foreign trade, panic of 2008, shipping
February 25, 2009
PetroChina Delays New Refineries
Oil and gas refinery projects, long in planning, are underway all over China with at least two planning production this year - an ExxonMobile joint venture between Sinopec and Saudi Aramco along the Fujian coast and CNOOC's first major refinery at Huizhou in Guangdong. Even more capacity is planned including a multi-billion dollar value Saudi-Chinese refinery inked in China's recent state visit to Saudi Arabia.
Labels: energy security, gas, peak oil
February 24, 2009
Taiwan-China Trade Slump Continues
February 23, 2009
Gwadar Port Advances
The largely Chinese developed deep water port at Gwadar, Pakistan, continues to move forward with new roads
and an agreement for dredging
by a Chinese entity signed while Pakistan President Zardari is in China...
Labels: foreign relations
February 20, 2009
Chery Reveals Plug-In Electric Car
February 19, 2009
Energy Security: Brazil - China Oil Deal, Possible Petrobras Loan
Brazil will supply China with up to 150,000 barrels of oil per day under an agreement signed today in Brasilia
. And China may invest $10 billion (US dollars) in Petrobras to develop the giant new Santos Basin offshore oil fields. Details would be finalized before Brazilian President Lula goes to Beijing in May...
Labels: energy security, foreign relations, oil, peak oil
February 18, 2009
NATIONALISM: Aussie Greens Say NO to China
Chinese metal giant Minmetals is offering $1.7 billion (US dollars) for Australian zinc miner OZ Minerals. OZ's shares are up 17 percent today. The news comes just after Chinese conglomerate Chinalco offered near $20 billion to iron ore producer/supplier Rio Tinto. All this activity is too much for the Australian Green Party which is objecting to the deals
Labels: australia, free trade
February 17, 2009
Energy Security: Russia China Oil Deal On
When first announced last October by PM Wen Jiabao $25 billion in loans was proposed from China National Petroleum Corp. to Roseneft for a pipeline directly from the emerging eastern Siberia oil fields to connect with China's oil pipeline and refinery centers. As announced today
Roseneft will get $15 billion (US dollars) and Transneft
- Russia's pipeline monopoly - $10 billion. When complete, China will get a steady supply of crude oil for 20 years. This is a major blow to the Japanese government which tried for years to prevent a pipeline direct to China...
Labels: asian energy security grid, energy security, japan, oil, peak oil, russia
February 16, 2009
The great global correction in trade continues to hit shipping companies hard. Barely a year old, Great Ocean Container Lines of Hong Kong will file for bankruptcy
. And New Econ Line of Singapore is suspending operations
. Also ceasing operation is Shandong Yantai International Marine Services. The China-Japan route has rates as low at $30 per TEU
according to the SeaTrade Asia website...
Labels: foreign trade, panic of 2008, shipping
February 13, 2009
Clinton Signals China Policy Back at State Department
But Clinton's remarks at the Asia Society gathering today in Manhattan indicate that she and her boss President Obama are starting off with a pragmatic and positive note on China. Earlier today Clinton said: "Now, some believe that China on the rise is, by definition, an adversary. To the contrary, we believe that the United States and China can benefit from and contribute to each other’s successes," adding:
"Even with our differences, the United States will remain committed to pursuing a positive relationship with China, one that we believe is essential to America’s future peace, progress, and prosperity. "
Labels: foreign relations, strategic dialogue
February 12, 2009
GM Sell Off to China
February 11, 2009
FedEx Opens Huge New Hub in China
FedEx opened its new Asia-Pacific hub at the international airport outside Guangzhou
, Guangdong Province, with 136 weekly flights and capacity on opening day to process 24,000 packages an hour. Of particular importance, the $150 million facility can manage and control the movements of its own planes. The hub is key to FedEx's plans to be a global logistics facilitator. Logistics cost in China have traditionally run high - as much as twice global averages. The FedEx hub will lower logistics costs and ensure that the Pearl River Delta continues to be one of the world's great workshops, despite increased labor costs and the shuttering of thousands of manufacturing plants over just the last few months...
Labels: foreign investment, free trade
PEANUT SCARE: BLAME CHINA!
Stewart Parnell, owner of Peanut Corp. of America, the company at the center of a salmonella outbreak in peanut products, refused to testify to Congress today citing his 5th Amendment right not to self incriminate.
Reports are the company knew about salmonella tainted peanuts dating back to 2006 yet continued to process the peanuts. Mr. Parnell runs his company from offices behind his home in Lynchburg, Virginia. According to company "officials" the salmonella came from "organic Chinese peanuts."
This should be a relatively easy claim to prove unless "family owned and operated" Peanut Corp.'s purchasing records are as flimsy as its quality assurance.
China was the number 2 supplier of peanuts to the USA in 2006 accounting for just under 17% of all peanut imports valued at almost $23 million...
Labels: food fda, free trade
February 10, 2009
GM Forms New China Venture, Cuts Jobs Worldwide
As GM announced a further 10,000 jobs reduction worldwide it is reportedly in talks with the Chinese FAW (First Auto Works) conglomerate on a new joint venture to build light commercial vehicles. It would be FAW's first foreign venture in the commercial vehicle sector. GM is not denying reports
but saying they are "inaccurate" and the JV is far from being finalized...
Labels: foreign investment, free trade, gm
February 09, 2009
China Shipbuilders Want Bailout
The National Development and Reform Commission has readied a bailout for Chinese shipbuilders
that is before the State Council in Beijing. According to varying reports from the China Association of National Shipbuilding Industry
shipbuilding orders have plummeted since the second half of 2008 by some metrics down almost 100%
. The industry saw tremendous expansion over the last few years and now - according to the bailout plan - plans consolidation. The bailouts of Chinese industrial sectors seem to have as their focus the creation of two to three solid 'brand' companies, part of Beijing's desire to have an American style economic oligarchy with Chinese characteristics...
Labels: panic of 2008, shipping
Futures Up on China Wheat Crop Threat
February 06, 2009
Energy Security: China - Saudi Arabia Official Visit
Chinese President Hu Jintao and a 100 person delegation will make an official visit to Saudi Arabia
next week and meet with King Abdullah on a variety of issues including oil supplies (Saudi Arabia is China's number 1 supplier), Chinese-Saudi investments in both countries, and rebuilding Gaza. It will be Hu's second official visit to Riyadh and it will be followed by a tour of African nations - Mali, Tanzania, Senegal, and Mauritius...
Labels: energy security, free trade
Former Number 2 China Securities Regulator Charged in Corruption Probe
Wang Yi, was Vice President of China Development Bank until last June when he was "detained" in a corruption investigation. Earlier Wang was Vice Chairman of the China Securities Regulatory Commission in the years before the first big Shanghai bubble. He is accused of taking 10 million Yuan in bribes
and other crimes. The Communist Party's corruption probe appears to be intensifying...
Labels: banking, chinese stocks
February 05, 2009
Deflation: McDonald's Cut Prices 1/3 in China to Boost Sales
February 04, 2009
Air Tanzania Gets Chinese Cash to Buy Planes
The announcement today that Air Tanzania would sell a 49 percent stake to a private Chinese investor
- China Sonangol International - was in the works since last August. The company plans to use the cash to buy 9 planes, renovate its airport terminal, and fund operations (the airline was grounded recently). The interesting speculation to me is what planes will it buy - Airbus A320 assembled in Tianjin? The smaller domestic Chinese jet the ARJ21 (first deliveries are expected this year) or made in Europe or USA Airbus or Boeing? The financing is by the China Development Bank
which was shored up not to long ago by China's Soverign Wealth Fund the China Investment Corp. Could this be one way of funding your own nation's production and export?
Labels: foreign investment, jet planes, swf
February 03, 2009
China Auto Sales Higher than USA for First Time
Sales volume in auto sales fell so far in the USA that they are now behind China for the first time making China - for the time being at least - the number one auto market in the world
Labels: chinese autos, free trade
USA, China Now Lead in Wind Energy
February 02, 2009
Bangka: A New Pearl On the String
An obscure developer called the "Fujian Mining Company" will develop a waterfront city in Ketapang on the island of Bangka off the coast of Sumatra
(Indonesia) strategically located south of Singapore. The development will allow the company to extract tin ores (the area is very rich in tin and has been mined by Chinese for centuries) in exchange for hotels and quays and other tourism related facilities. The quays will most likely be large enough for bulk carriers and other big ships. Tin prices are up regionally but could the real motive behind this development be to create a "pearl" in the so-called "String of Pearls" China is establishing to protect its sea route through the Strait of Malacca? The location could also protect the Strait of Sunda to the south.
As recently as 1975, Chinese made up close to 5% of the population of Bangka Island and as far back as 1867 Chinese were so numerous the Dutch allowed them to conduct their own affairs there...
Labels: shipping, strategic
China 1 Wales 0 in Airbus Deal?
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