China downgrade shows emerging market ratings stuck in reverse

index.jpgSource : Economic Times 26 May 2017

LONDON: A Moody’s downgrade on China on Wednesday and the likelihood that Brazil and South Africa face further rating cuts in the coming months is highlighting how emerging market credit quality remains stuck in reverse. Since the start of 2014, Reuters analysis shows that the big three rating agencies – S&P Global, Moody’s and Fitch – have racked up more than 150 emerging market downgrades between them.

That averages out a roughly one a week and though there have been hopes that rising global growth and commodity prices will ease the pressure, that does not seem to be occurring yet.

Read the rest of this entry »


India’s refusal to join China’s One Belt and One Road initiative regrettable: Chinese media

Source : Financial Express 15 May 2016

India’s refusal to join China’s high-profile Belt and Road initiative is “regrettable” but New Delhi’s boycott will not at all affect the cooperation in infrastructure development among its neighbouring countries, a report in a state-run newspaper said today.

The two-day Belt and Road Forum which is being attended by leaders from 29 countries, including Pakistan, has been boycotted by India due to sovereignty concerns over the USD 50 billion CPEC (China-Pakistan Economic Corridor), which passes through Pakistan-occupied Kashmir.

“While India recently issued an official statement saying it would not be part of the “One Belt and One Road” (B&R) initiative, it will not affect the trend towards cooperation in infrastructure development among its neighbouring countries at all,” Global Times reported today.

“India was openly sceptical of China’s Belt and Road Forum (BRF) hours ahead of the opening of the event, mainly due to concerns over the China-Pakistan Economic Corridor (CPEC), a key project of the B&R, and whether it might influence the disputed Kashmir region,” it said.

China proposes 4-point initiative to improve Sino-India ties

download (4)Source : The Hindu Business Line
NEW DELHI, MAY 7:  Amid increasing strain in Sino-India ties, China has proposed a four-point initiative to overcome differences and deepen relations which includes aligning its ‘One Belt One Road’ project with India’s ‘Act East Policy’ and restarting negotiations on a free trade pact.

The proposal put forward by Chinese envoy Luo Zhaohui also includes starting negotiations on a ‘China-India Treaty of Good Neighbourliness and Friendly Cooperation’ and prioritising finding an early solution to the border dispute between the two countries.

Read the rest of this entry »

Bilateral ties: India, China agree on foreign secretaries-level dialogue

Source: The Hindu Business Line, Aug 15, 2016

New Delhi: With less than a month to go before Prime Ministers of India and China are expected to meet post the NSG fiasco, the two countries have decided to set up a dialogue mechanism at the level of the foreign secretaries for the first time.

The decision to set up a new mechanism at the level of foreign secretaries was taken during a meeting between External Affairs Minister Sushma Swaraj and Chinese Foreign Minister Wang Yi, who was on a three-day visit to India.

“A new mechanism at the level of Foreign Secretaries agreed to discuss ties. It’s a new mechanism so earlier mechanisms remain,” said an official who was present in the talks.

The Foreign Secretary-level talks will be a new mechanism that will encompass all bilateral issues between both countries. This will be over and above the Strategic Economic Dialogue (SED) that both sides already have in place, sources told BusinessLine.

Read the rest of this entry »

Chinese companies plan big investment across sectors in India

index.jpgSource: The Economic Times, May 26, 2016

GUANGZHOU: China is poised to make huge investments in the coming months across sectors including the Narendra Modi government’s flagship projects from smart cities to Digital India as President Pranab Mukherjee on Wednesday nudged the Chinese leadership and business honchos to take advantage of prevailing growth rate in South Asia’s biggest country. Read the rest of this entry »

China SMEs plan to invest $1 billion across Indian states

NEW DELHI: Hoping to give a leg up to the Chinese investments in India, small and medium-sized enterprises (SMEs) from China are planning to invest $1 billion across various states in sectors ranging from telecommunications to electrical equipment to appliance manufacturing and machinery as part of President Xi Jinping’s announcement in 2014 of investing $20 billion in India in five years.

While there was a decline of Chinese investments in India in 2015, Beijing is hoping to increase the quantum of its foreign direct investment (FDI) in India in the current year to boost economic partnership, notwithstanding differences over strategic issues including Pak-based terror. Ahead of what can be described as a China week, with the defence minister and NSA travelling to Beijing and External Affairs Minister Sushma Swaraj’s meeting with her Chinese counterpart in Moscow, senior Chinese government sources told ET that China is revising its proposal for two industrial parks in Gujarat and Maharashtra with additional capital and planning to invest $6.8 billion in these two facilities.

Read the rest of this entry »

Govt gives nod to 18 Chinese firms to set up base in India

Source: Financial Express, Aug 18, 2015

New Delhi: PM Narendra Modi-led government has cleared 18 applications received from Chinese firms since June 2014 to either set up project offices, branch offices or liaison offices in the country.Several of these applications were from Chinese companies in the power sector, some from construction companies and a few from petroleum companies. The list also includes an airlines company and a prominent tyre manufacturer.

The most recent security clearance granted to a Chinese company by the Ministry of Home Affairs (MHA) was on August 11, giving a nod to an application for establishing a liaison office in India by China Non-Ferrous Metal Industry’s Foreign Engineering and Construction, Hong Kong.

Read the rest of this entry »