Over the past four years, China has switched from being an importer of high-speed trains to the world’s largest manufacturer. Much of this can be attributed to the transfer of foreign technology to Chinese state-owned enterprises. How have Chinese government policies and economic heft aided this effort?
By Spike Nowak
Sept. 3 – Traveling at 300 kilometers per hour, a passenger on China’s domestically-manufactured high-speed trains can go from Beijing to Shanghai, approximately the same distance as Delhi to Mumbai, in less than five hours. Four years ago, the same trip on an older Chinese-manufactured train would have taken more than 12 hours.
China has now become one of the largest manufacturers of high-speed trains in the world. How has it achieved this in such a short time? The same question could be asked of windmills, automobiles, computers, software, and various other products manufactured in China.
Technology transfer – a process by which technology, knowledge, skills and manufacturing methodologies are transferred from one country to another – has made all this possible. Continue reading
Aug. 28 – Jaguar Land Rover (JLR) saw sales to China increase by 91 percent over the past three months as Chinese consumers eagerly snapped up the luxury cars. Imported into China from JLR’s UK plants, the brands comprise the best of British manufacturing expertise tied to Indian management, regional marketing knowledge and ultimate ownership – Tata Group purchased the then-struggling brands from Ford in 2008. Since then, the UK-based operations have been extensively re-financed and re-modeled. The result? Two now Indian-owned premium auto brands that China just can’t get enough of. Continue reading
Op-Ed Commentary: Christoph Unrast
Aug. 17 – Recent developments on the Korean Peninsula indicate that the Peoples Republic of China may be further consolidating their control of the global supply of rare earth elements. Already China has a monopoly in the production of rare earth elements, and could now it could get a hand on North Korea’s resources, which are estimated to be the second largest in the world.
Rare earth elements have been a perennial topic for quite a while. Although the metals are not as rare as the name suggests, China was able to develop a production monopoly since the 90s, replacing the once leading nation of the United States. This issue received its first major attention when Beijing used its monopoly in a diplomatic stand-off with Japan in 2010, cutting of Japans industry from several of the most essential elements used in high-technology products. Continue reading
Aug. 15 – It is expected that the state-owned Aluminium Corp of China Ltd, or Chalco, will drop its takeover bid for Mongolia’s coal-producer SouthGobi Resources Ltd due to fierce resistance from the Mongolian government.
In April of this year, Chalco offered $926 million for a 60 percent stake in SouthGobi. Almost immediately, however, the Mongolian government reacted by introducing a new investment law that limits foreign companies from owning more than 49 percent of companies involved in mining, finance, media and telecommunications sectors. In an even more aggressive stance, the Mongolian government has delayed the renewing of some of SouthGobi’s license, scaring away customers and squashing production. Continue reading
By Ian Bhullar
Aug. 3 – India’s recent power outage, which affected 20 of India’s 24 states this week, has raised questions both within and beyond India’s borders about capacity to deal with growing energy demands.
As power returns to the 700 million affected, India’s population asks how such a huge blackout could happen. In other parts of the world, including China, commentators ask what lessons can be learned from a blackout affecting one tenth of humanity.
Reports of the blackout, which ran from Tuesday into Wednesday morning, have stressed just how dramatic its costs were. Alongside miners trapped underground, surgery procedures cancelled, and hundreds of trains stuck on the tracks, the economic costs are likely to be very large. Continue reading
Jul. 26 – China’s third-largest oil company, the China National Offshore Oil Corporation (CNOOC), has agreed to pay US$15.1 billion in cash to acquire the Canadian oil company Nexen Inc. If this deal is successful, it will be the largest overseas takeover by a Chinese company. CNOOC is offering US$27.50 a share, which is a 61 percent premium on Nexen’s Friday stock price.
“For Canada, this agreement provides a stable source of investment for the many projects that Nexen operates,” said CNOOC Chief Executive Li Fanrong. Continue reading
Jul. 3 – Hackers have broken into Indian naval computers in Visakhapatnam, where India’s Eastern Naval Command is headquartered, and have relayed confidential data to IP addresses based in China. The Eastern Naval Command is in charge of Indian operations and deployments in the South China Sea, a region in which China currently has numerous territorial disputes. The Command’s Visakhapatnam location is also the current base for India’s first nuclear missile submarine, which was undergoing trials at the time of the cyber-attack. Continue reading