Monday, May 21, 2012

Investment News and Commentary from Emerging Markets in Asia - China, India and ASEAN





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2point6billion.com discusses investment news and events from the emerging markets of Asia - including India, China and the ASEAN countries. It is produced by the Asian foreign direct business advisors at Dezan Shira & Associates from their offices across emerging Asia.



Politics

India Set to Be Largest Foreign Investor in Afghanistan

Afghanistan Parliament Building, Kabul. Funded by India.

May 18 – With the U.S. pulling out of Afghanistan, India is poised to become the nation’s largest investor. When NATO withdraws troops by 2014, the Indian government is keen to take up the mantle of helping redevelop the country.

U.S. research has suggested some US$1 trillion of minerals and deposits exist in Afghanistan, with Indian investors looking to secure contracts to obtain mining and processing rights. India’s Geological Survey Department and the National Mineral Development Corporation are already involved with the country. Delhi is also hosting a Global Investors Afghanistan Conference in the Fall, among several that have started to be announced recently, including recent events that have taken place in Dubai and the Middle East. India already supplies helicopters to the Afghan military, and the Afghan police force has been undergoing training in camps in Hyderabad for some time. Continue reading

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China and Japan Hold High-level Maritime Negotiations

By Nicholas Clement

May 17 – On Wednesday, China held negotiations with Japan regarding maritime issues in the East China Sea, with their territorial dispute over the Diaoyu/Senkaku Islands on the top of the agenda. Currently involved in a naval standoff with the Philippines in the South China Sea and ongoing border disputes with India, it is increasingly clear that China’s relations with its neighbors are exemplified by geopolitical processes.

The territorial dispute over the Diaoyu Islands (which is currently controlled by Japan, yet also claimed by China and Taiwan) intensified last month when the governor of Tokyo, Shintaro Ishihara, announced plans to buy the islands from a private owner, claiming that they were extremely important to Japan as a source of natural resources. The reaction from China was negative; with Chinese Foreign Ministry Spokesman Liu Weimin stating that “any unilateral action taken by Japan on the Diaoyu and nearby islands is illegal and invalid and cannot change the reality of China’s ownership.” Continue reading

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China-Philippines Standoff: Territorial Tension in the South China Sea

By Nicholas Clement

May 10 – The South China Sea (SCS) continues to act as a regional flashpoint in the Asia Pacific, recently exemplified by the ongoing naval standoff between China and the Philippines. The current standoff began at the beginning of April when the Filipino navy intercepted Chinese fishing vessels in Scarborough Shoal, who they claimed were illegally operating inside of its 200-nautical mile exclusive economic zone (EEZ). Before the fishermen were arrested, however, China sent vessels from its maritime surveillance unit who placed themselves between the Filipino navy and Chinese fishing vessels – thus starting the standoff. Continue reading

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China’s Panchen Lama Makes First Speech Outside of Mainland

Apr. 26 – Gyaltsen Norbu, the individual that China’s central government has hand-selected as the 11th Panchen Lama, made his first official speech outside of Mainland China on Thursday.

He took no questions at the World Buddhist Forum in Hong Kong and stayed away from controversial subjects, instead taking the opportunity to talk about Buddhism, Dharma, and using inner peace to achieve social harmony. Continue reading

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China’s Future Political Ideology Being Examined in Beijing

Op-Ed Commentary: Chris Devonshire-Ellis

Apr. 11 – The inauguration of the next generation of Chinese leaders this autumn will be the third time I have witnessed such a handover of national power in Beijing. The first time saw the elderly Deng Xiaoping hand over the reins to Jiang Zemin who, alongside Premier Zhu Rongji, oversaw a decade of China’s opening up and reform, culminating with the handover of Hong Kong to China, the granting of WTO membership, and the winning of the Olympic Games to be held in Beijing.

Those years of the Jiang-Zhu partnership were some of the most fascinating in China as the nation woke up to capitalism and seemed to embrace a much-needed policy of openness and foreign investment. Taxes were low, and favorable policies towards foreigners working and investing in China encouraged many to enter the Chinese market. Continue reading

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Pakistan Urged to Follow ‘Sino-Indian Model’

Apr. 10 – In meetings that Pakistani President Asif Ali Zardari had with Indian Prime Minister Manmohan Singh in Delhi on Sunday, emphasis was made on improving ties and moving decades of mistrust aside.

Although terrorism was high on the agenda, so was trade, with Pakistan being urged to adopt the “Sino-Indian Model” of engaging each other; a move endorsed by Beijing. Pakistan has long held that only negotiations over Kashmir could lead to trade talks, but this has come at the expense of an unofficial impasse and a massive drop off of Indian investment into Pakistan. Continue reading

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Indian Communist Party Rejects Modern China’s Ideology

Communist manifestos diverge due to concerns that China is losing its way over GINI coefficients and capitalism

Apr. 9 – The Communist Party of India (CPI) which has for decades followed policies issued by the Communist Party of China (CPC) is for the first time taking a critical stance on contemporary Chinese communism, including the decision to admit capitalists into the party and a widening income gap.

The CPI, currently holding its 20th Party Congress, has heard a draft ideological document, presented by CPI politburo member Sitaram Yechury which states that “negative tendencies” such as economic inequality, unemployment, corruption and nepotism have surfaced in China. Continue reading

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For the latest political news and analysis from South East Asia, visit 2point6billion.com. Stories are contributed by the foreign direct investment experts at Dezan Shira & Associates, who have offices in China, India and Vietnam.



Dezan Shira & Associates provide a range of services for companies looking to undertake foreign direct investment into Asia, These include corporate establishment, accounting, tax, payroll, audit and due diligence. To learn more about the firm, please contact one of our specialists at china@dezshira.com, download our corporate brochure or visit at us www.dezshira.com


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