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  • cnfdi ~By Charmaine Mirza

    Chinese investment in India’s real estate sector increased six-fold in 2015, topping out at approx. US$870 million. The door is still wide open. The Indian government’s decision to allow 100 percent Foreign Direct Investment into the real estate sector has lead to a spike in interest from Chinese investors.

    Haryana has certainly jumped on the bandwagon. Dalian Wanda’s MoU with the Haryana State government to develop the Wanda Industrial New City that spreads over 100 kilometers, has flagged off a trickle of investment from China into India that could turn into a steady stream. China Fortune Land Development is also sizing up large-scale industrial park projects in Haryana, while Gezhouba, another real estate player from the mainland, is eyeing an investment in Telengana. Not to be left far behind, Madhya Pradesh is also seeking Chinese help to develop large scale industrial projects, while in the private sector, financing major China Fosun International, is considering investing in Locon Solutions, the owner of housing finance start up, Housing.com. So why is there such a sudden gold rush from China into India’s real estate segment?

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  • MBBS-Graduates-in-China-TianjinIndian students are increasingly bearing the brunt of being caught between India and China. Its a chasm that runs deep and has been mishandled by both governments.

    There are two types of Indian students in China. Medical students whose numbers have swelled to 14,000 this year and language students who are being lured by scholarships to Chinese universities to study Mandarin and become China’s soft power ambassadors. Various issues exist between the two.

    Recently a violent skirmish between two gangs of medical students in China left one severely wounded and hospitalized. The incident brought to light not only the vengeance Indians are weilding against each other but also their problems. Indian medical students who go to China because Indian medical universities are bursting at the brim, return home to find their Chinese qualifications are not recognised in India, in addition, they face language and food problems as well as being ragged by senior Indian students. While ragging is a criminal offence, none are reported to the Indian Embassy or Consulates in China for fear of repercussions. This has aggravated the problem as the students feel they are above the law.

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  • rio-2016The upcoming Rio Olympics, to be held from from August 5 to 21 will see an exceptional array of Indian and Chinese athletes that will demonstrate both nations growing emphasis on sport. While China will outshine India in taking home more medals, the increase in India’s delegation from 84 to 120 athletes, will hopefully bode her better than previous years.

    For nations that prioritise academics over athletics, China and India have not only increased the number of delegates representing their country, but have also widened the events they are participating in. This shows that both nations are emphasizing on developing sport – a sign of a nations growth as she rises above basic developing nation issues of education, sanitation and housing.

    While neither nation is completely above any of these problems, the ability to simultaneously focus on sport signals both China and India are moving towards a more developed, well rounded and balanced society and economy. The Chinese delegation includes 416 athletes, more than 3 times the Indian delegation of 120 delegates. In their 10th appearance at the Summer Olympics since China’s debut in 1952, 160 Chinese men and 256 Chinese women, who will compete in 210 events across 26 sports. China is expected to excel in Badminton, Basketball, Table Tennis, Diving, Swimming, Weightlifting, Shoooting and Gymnastics. China won the second largest number of medals at the 2012 London Olympics after the United States, 88 medals in total – 38 gold, 29 silver, and 21 bronze.

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  • — By Charmaine Mirza JNPT - Hindu Business Line

    China has swept the shipping industry off its feet in a massive tsunami wave of dominance over Asia’s waters. In comparison, India’s harbours are barely a drop in the ocean.

    As the Chinese economy starts to lose steam, the mandarin sea dragon is huffing and puffing to stay on top of the wave – even as the Indian ocean-crocodile starts to snap its jaws. Even as we conclude the Maritime India Summit, Jawaharlal Nehru Port Trust (JNPT) in Mumbai, is ramping up productivity. Currently one of the largest port facilities in the country, JNPT had a record number of container lifts in 2015-16 as compared to previous years.

    In contrast, China’s shipping industry is flailing badly, and ruthlessly crashing its shipping rates to do whatever it takes to maintain its flagship status. So do Indian ports really hold a strategic advantage over mainland China’s anchorages? Inchin Closer takes a closer look from the crow’s nest to analyze the situation and weigh the options based on the following:

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  • FullSizeRenderMr. Han Zheng, Communist Party Secretary of Shanghai, and a member of the Politburo of the Communist Party of China visited India on a landmark 5 day tour of Delhi, Mumbai and Bangalore.

    Mr. Zheng who was accompanied by a 80 member business delegation met Indian Prime Minister Mr. Narendra Modi in New Delhi and in Mumbai met heads of companies including Mr. Cyrus P. Mistry, Chairman of Tata Sons, Mr. K V Kamath President, New Development Bank and Mr Rangarajan Vellamore CEO, Infosys Technologies (China) Co Ltd.

    The architect of modern day Shanghai, Mr. Zheng’s maiden visit of India was to lay the ground work for stronger collaborations between the two nations. While cross border investments in the IT, financial services, transport and healthcare sectors were highlighted, the leaders of the two nations also talked of building stronger links between China and India. Mumbai and Shanghai became sister cities in 2014, however since then little has been done to collaborate or cooperate. It is hoped that this initial visit will lay the groundwork for future ties between the two trading cities.

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  • ukchina ~ by Charmaine Mirza

    The United Kingdom’s Brexit vote to leave the European Union has hard-hitting implications on both China and India. While the true impact will be felt only in the years to come, Inchin Closer peers into the future to see what lies ahead for the diamond and ruby of the British Empire.

    CURRENCY CRUNCH: The Reserve Bank of India feels that the INR is adequately buffered against the GBP. London is the second largest RMB trading hub after Hong Kong. If global banks exit London, Beijing may have to scramble for a new base. In the long run, a depreciated pound could prove beneficial to savvy investors from both countries, who will swoop in to take advantage of the devaluation.

    INBOUND INVESTMENT: Thus far, both Indian and Chinese companies used the UK as a convenient conduit for unshackled access to the European markets, to circumvent the EU’s protectionist view on global trade. If the UK can no longer serve this purpose, it will certainly impact inbound investment from China and India into the UK.

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  • India_Budget_2016India’s union Budget 2016-17 wasn’t centered around Chinese investments which are flocking into the nation and looking for a quick return on investments, but was rather focused around long term players.

    With India’s rural economy occupying centerstage, New Delhi’s aim is to spend on rural India, create jobs and boost the agrarian economy which in turn will reap rich dividends in the years to come. The belief that rural India will run India’s economy is a pluralist concept which bodes well for all governments catering to the vote bank, however it does little to spur the growth of an economy in the near term. Chinese investors and companies on the other hand are more interested in the new India, one that sizzles on software and is tethered to technology for which India’s union budget gave little leeway.

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  • kfcYum Brands is undergoing a strategic shift in China, signaling towards changing market trends and slowing revenue. The brand under which KFC, Pizza Hut and Taco Bell operate decided to spin off its China business into a separate entity last year.

    As part of the realignment, CEO China of Yum Brands Inc Muktesh Pant sold 91,228 shares of Yum on the 22nd of July, for US$8.2 million. The Indian born CEO, of Yum China led the China entity to be the company’s highest profit earner. At the end of February 2016, Yum had over 5,000 KFC restaurants in China, accounting for a quarter of KFC restaurants worldwide. It also held more than 1600 Pizza Huts, in more than 400 cities and had acquired Little Sheep hot pot due to burgeoging demand in the Fast food space.

    However, as tastes changed – being healthy came back into vogue and the the brands faced backlash due to their involvement in International uprisings, the Yum brand faced sever criticism in local media resulting in a fall in revenue. Although China remains the company’s primary source of profit the company’s revenues fell from US$ 6.898 billion in 2012 to US$ 6.909 billion in 2015.  The latest performance report shows that in the first half of 2016, Yum clocked revenues of US$ 5.627 billion, down 1.75 percent.

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  • NSG ~ By Charmaine Mirza

    The Asian hotpot is simmering again. India’s bid to join the Nuclear Suppliers Group (NSG) has put Sino-Indian geopolitics back in focus – this time with the added masala of India’s arch nemesis and China’s ally: Pakistan.

    The Nuclear Suppliers Group is a group of nuclear supplier countries, which aim to stave off nuclear proliferation by monitoring exports of raw materials, equipment and technology that can be deployed to create nuclear weapons. China is spearheading strong resistance from a handful of member countries to India’s NSG bid.

    Beijing’s official party line is that India has not signed the Non Proliferation Treaty (NPT), which is a vital criterion for membership to the NSG. The not-so-subtle subtext is that Pakistan has also retaliated to India’s NSG bid with one of its own – and China is the key instigator behind Pakistan’s nuclear program. In an ironic twist of fate, India will have to bear the brunt of Pakistan’s poor track record. If Pakistan doesn’t get in, India’s not getting China’s vote.

    If Pakistan has built its nuclear resources from the ground up, it is largely due to the fact that China has supported it consistently, in gross violation of its own commitment to the NSG. Given Pakistan’s dubious track record of harbouring terrorists (it hasn’t signed the NPT either) and the fact that the father of its nuclear program sold nuclear technology and secrets to Iran and North Korea, red flags are waving madly across the globe about its acceptance into the NSG.

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  • 153917_600Two complementary, interesting trends are emerging from the warmer understanding between China and India and both nations fierce desire to constantly grow.

    Firstly, Chinese investors are eagerly watching the Indian market, coming to investigate investments and often pouring millions into Indian start ups as the Indian economy starts to trot at a slightly faster clip than the Chinese economy.

    The second interesting, emerging trend is that with the Chinese economy far ahead that of India, many entrepreneurs, venture capitalists and private equity players are visiting small to mid sized firms and start up conferences to understand and predict where the Indian market will be five to ten years from now.

    The mix of these two trends, is seeing a higher and more sophisticated level of transactions between the sweet and sour neighbours. While all of this is government agnostic, it is building stronger relationships between the two nations and filling a need gap in both economies. The Chinese have a new, energetic market to invest in and Indian start ups have an orb to see the future.

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