Apple supplier Foxconn – US and China lead technology war

foxconnThe fierce clashes between the US and China, according to the board of directors of the Apple supplier Foxconn, Terry Gou turn to technology.

“They are not really fighting a trade war, it’s a technology war,” Gou said at the General Assembly on Friday.
For his company, the conflict was the biggest challenge in the company’s history. Various plans have been worked out to react, said Gou, without giving any details.

Foxconn has become known as Hon Hai Precision . The company has more than one million employees, most of them in China.

The dispute between the US and China has rocketed up recently. US President Donald Trump announced on Monday that he would impose new tariffs on Chinese goods worth $ 200 billion should the government in Beijing implement retaliatory tariffs on previous US import restrictions. Analysts also believe that this is disrupting the supply chains for the technology and automotive industries, for which Foxconn produces for the most part.

Largest bank in the world opens branch in Zurich

icbc zurichThe Chinese Industrial and Commercial Bank of China (ICBC) now has a branch in Zurich.

After China Construction Bank, ICBC is the second major Chinese bank to establish a presence in the financial center of Zurich.

The opening of the branch was on Thursday evening, an illustrious circle: were present in addition to the ICBC President Shu Gu and a representative of the Chinese Embassy also Finance Minister Ueli Maurer (SVP), National Bank President Thomas Jordan and Government Councilor Carmen Walker Späh (FDP), like the Zurich Department of Economic Affairs announced on Friday.

Over two years ago, a Zurich delegation in China made itself strong for the branch. Accordingly, Economics Director Walker Späh was pleased to announce a “further highlight of the cantonal engagement to promote trade relations with China”. That strengthens the financial center. According to Walker Späh, ICBC is the largest bank in the world in terms of total assets.

US Treasury Demands More Transparency on “New Silk Road”

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WASHINGTON (Dow Jones) – US Treasury Secretary Steven Mnuchin has called on the International Monetary Fund (IMF) and the World Bank to launch a “joint action plan” to better illuminate China’s credit-financed infrastructure projects. “Increasingly, we are seeing cases where low-income countries are over-indebted and permanently unsustainable to sovereign creditors such as China or private creditors,” Mnuchin said in a statement at the IMF’s Spring meeting.

Mnuchin’s call for an action plan to clarify the documentation of rising debt is directly addressed to the Chinese initiative “One Belt, One Road”, also called “New Silk Road”. China will be better connected with 64 other countries in Asia, Europe and Africa via infrastructure projects such as motorways, railways, ports and airports.

China has started projects so fast and on such a scale that international observers are struggling to keep an eye on the amount of credit that is being spent by a variety of Chinese local governments and state-controlled institutions, but in the end they are based on one source: Beijing.
According to a report by the Center for Global Development, Djibouti, Tajikistan, Kyrgyzstan, Laos, the Maldives and Mongolia are among the countries that will soon account for more than half of their foreign debt to China. Chinese President Xi Jinping has made the “New Silk Road” a core piece of his plans to expand Beijing’s influence on the global economy.
IMF fears financial problems

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LBS Bina proposes to joint-venture with NWP on China development job

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LBS Bina Group Bhd intends to form a joint venture with NWP Holdings Bhd, timber manufacturer to work on a development project on its 264-acre land in Zhuhai, China.

The Star reported that as part of the deal, LBS Bina has also proposed to subscribe to 1.1 billion NWP shares which is equals to 73.7 per cent of the enlarged number of issued shares of NWP.

The total cash consideration for the project is RM93.5 million, or 8.5 sen per share in order  to part-finance the proposed development project.

In their separate filings with Bursa Malaysia, LBS Bina and NWP on March 5, the group said they had entered into a heads of agreement (HoA) for the proposed joint-development project and share subscription exercise.

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China’s Dalian Wanda Group says 2017 Revenue Down 10.8 percent on Asset Sales

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Chinese conglomerate Dalian Wanda Group’s revenue fell by 10.8 percent in 2017, the second consecutive year it declined, as the debt-laden group sold off property assets and faced increasing scrutiny from regulators and lenders.

The  property-to-entertainment group, owned by tycoon Wang Jianlin, reported 227.4 billion yuan ($35.54 billion) in revenue for last year, while net profit remained flat compared with 2016, according to a statement posted on the company’s website on Saturday. It did not reveal the profit figure.Total assets, of which 93 percent are domestic, declined 11.5 percent to 700 billion yuan.The group came under pressure last year from a government crackdown on perceived risky spending overseas and high levels of corporate debt.

Banks heightened their scrutiny and ratings agencies downgraded its property unit to junk status.The Chinese conglomerate is expected to announce the sale of two Australian property projects in the coming days, sources have told Reuters, the latest in a string of asset sales as the firm looks to reduce its portfolio after a major acquisition spree.

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