Taiwan Gains Mainland Market Entry
By JONATHAN ADAMS
Published: February 11, 2010
TAIPEI — Taiwan’s decision to relax some restrictions on investment in mainland China will help its flat panel manufacturers compete in the mainland’s booming consumer electronics market, analysts and company officials said Thursday.
The top producer of liquid crystal display panels in Taiwan, AU Optronics, said it would apply to the Taiwanese government to build an advanced LCD panel facility in China as soon as possible. Until now, Taiwanese companies have been allowed to assemble only panel modules — consisting of panels and frames — in China.
The company expects China to become the world’s No.1 market for flat screen televisions sometime next year.
AU Optronics, which has 20 percent of the market in China for the screens used in such televisions, said the new rules would help it compete against South Korean and Chinese rivals.
“China will be the biggest market next year, so it will be very helpful for us” to have a factory there to provide faster service to customers and shorten shipping times, said Freda Lee, a company spokeswoman. A factory to build LCD panels can cost $3 billion.
The government in Taiwan, under pressure from its top technology companies and other businesses, has been relaxing limits on China-bound investment over the past decade.
Taiwan said Wednesday that it would let flat panel makers build screen-making factories in China, as long as their most advanced plants stayed in Taiwan and they keep equivalent investments on the island.
The government also lifted some limits on investment in China by semiconductor companies, and will let them use more advanced manufacturing technology at their mainland plants. Also relaxed were China investment rules for Taiwan chip testers, packagers and companies involved in real estate, telecommunications, wind power and solar energy.
The biggest implications are for flat panel makers in Taiwan, who build the screens used in devices like cellphones, computer monitors and televisions.
Companies in Taiwan have long battled with the South Korean giants of Samsung Electronics and LG Display to dominate that market. The move by Taiwan on Wednesday followed the South Korean government’s approval late last year of ambitious plans by those two companies for joint-venture factories in China.
AU Optronics said it wanted to build a “7.5 generation” factory in China when the new rules take effect. Such factories produce 42-inch to 46-inch screens. The company’s most advanced, “8.5 generation” factory produces 65-inch screens, Ms. Lee said.
On Wednesday, the chairman of Hon Hai Group, Terry Gou, told Reuters that the group’s flat panel unit, Innolux, would also consider building a factory in China.
Dale Gai, a flat panel industry analyst at Yuanta Securities in Taipei, said that the Chinese flat screen television market was growing 80 percent yearly and that Chinese makers were “aggressively” building factories.
DisplaySearch, a market researcher, said last year it expected flat panel television sales in China to increase from 13 million in 2008 to 37 million in 2012, as subsidies from the Chinese government fueled demand and Chinese users replace old cathode-ray tube televisions with newer models.
Flat panel companies in Taiwan sell screens to Chinese televisions makers. Chi Mei Optoelectronics has about a 35 percent share of the market in China for flat screens while AU Optronics has 20 percent, Mr. Gai said.
Samsung and LG Display, each have 10 percent to 20 percent, according to Mr. Gai.
AU Optronics’ main customer is Changhong, Mr. Gai said, and Chi Mei’s main customers are Skyworth and Hisense.
“The weakness of both companies is they don't have own brands, like LG and Samsung, so they need to be close to their Chinese TV brands,” Mr. Gai said. “Now Taiwan panel makers can set up fabs in China to compete with South Korea,” he said referring to factories.
Chi Mei is in the process of merging with Innolux. The combined company would be the largest flat panel maker in Taiwan and No. 3 globally by revenue.
AU Optronics reported revenue in 2009 of 359 billion Taiwan dollars, or $11.2 billion while Chi Mei Optoelectronics posted 209 billion dollars in revenue from its LCD business last year.
According to DisplaySearch, LG Display was the No.1 LCD panel maker in 2009, followed by Samsung, AU Optronics and Chi Mei.
Reference:
http://www.nytimes.com/2010/02/12/technology/12chip.html?scp=6&sq=Taiwan%20news&st=cse
Tuesday, 2 March 2010
India's exports jump in January - Shantanu
March 2: India's exports jumped for a third straight month in January, rising 11.5 per cent from a year earlier as demand picked up in the United States and other major overseas markets, data showed Tuesday.
India's exports totalled 14.34 billion dollars in January, helped by demand for cars and jewellery, after growing by 9.3 per cent in December, figures from the commerce ministry showed.
Imports jumped 35.5 per cent from a year earlier to 24.7 billion dollars, reflecting buoyant domestic demand.
The better figures during the last three months showed India's export outlook was improving, analysts said.
"Our exports are coming out of the woods," Rakesh Mohan Joshi of the Indian Institute of Foreign Trade said.
Unlike China, where overseas sales have been a main growth driver over the past three decades, exports account for just 15 per cent of gross domestic product in India's still relatively inward-looking economy.
India's exports totalled 14.34 billion dollars in January, helped by demand for cars and jewellery, after growing by 9.3 per cent in December, figures from the commerce ministry showed.
Imports jumped 35.5 per cent from a year earlier to 24.7 billion dollars, reflecting buoyant domestic demand.
The better figures during the last three months showed India's export outlook was improving, analysts said.
"Our exports are coming out of the woods," Rakesh Mohan Joshi of the Indian Institute of Foreign Trade said.
Unlike China, where overseas sales have been a main growth driver over the past three decades, exports account for just 15 per cent of gross domestic product in India's still relatively inward-looking economy.
NEWS from CNN--August
How did Toyoda do?
Perhaps the highlight of the head of Toyota's trip to Washington happened not on Capitol Hill, but when speaking before U.S. Toyota dealers at the National Press Club after giving hours of testimony before U.S. legislators.
"At the hearing, I was not alone -- you and your colleagues, around America, across the world, were there with me," said Akio Toyoda, breaking into tears as the dealers applauded Wednesday.
It was a human moment that reflected the considerable weight placed upon the typically taciturn scion of the Toyota family, and perhaps even his relief -- and the collective relief of Japanese corporations, politicians and public -- that Toyoda came out of the experience burnishing the image of his tarnished company.
Japan Inc.'s reputation rides on Toyoda
"Under the circumstances, he did very well indeed," said Dave Bartlett, the Washington-based senior vice president of Levick Strategic Communications. "He did suffer from the language barrier, which made it tougher for him to express the emotion that would have probably amplified his message in a way he would have liked."
"My impression was that he did better than expected and that the politicians, for the most part, were surprisingly gentle," added Michael Alan Hamlin, president of Team Asia, which provides communications advice to multinational companies.
Toyada was more circumspect about his performance. He admitted to CNN's Larry King that the day had been difficult, "and I am not confident to what degree our sincerity was conveyed."
Kyung Lah, CNN's Tokyo correspondent, noted "this is a different Akio Toyoda we're seeing today. He's appearing more earnest, trying to portray a sincere attitude -- a humble appearance for a company head.
"This is a different attitude than we saw in Japan," added Lah, who covered Toyoda's three Tokyo press conferences in the weeks leading up to his appearance before U.S. Congress.
In Japan, television reports noted that Toyoda was answering carefully and choosing his words cautiously because the "U.S. is a lawsuit-oriented culture." Cultural differences were also remarked upon when the hearing chairman asked Toyoda, "Is that a yes or no?"
"Japanese often answers questions circuitously before getting to the answer ... the (television) station pointing out that this is a culture gulf," Lah noted.
Toyoda in Washington: A clash of cultures?
Wall Street applauded Toyoda's performance -- Toyota stock ended the day in New York trading up 4 percent.
Much is riding on Toyota's recall mop-up. The company saw its sales drop 16 percent last month in the U.S., its biggest market. Consultancy "Brand Finance" -- which annually ranks the world's top 500 brands by monetary value -- recently ranked Toyota as the 9th most valuable brand in the world. But the consultancy said if the company fails to resolve the sudden acceleration problem consumers could turn on Toyota and risks losing more than 25 percent of its brand value.
So far in their handling of the global recall, "they appeared to be the gang that couldn't shoot straight -- was it the mats? Was it the pedal? Was it the computer?" Bartlett said. "They have to tighten that up and get it behind them."
"They have to do two things they haven't done up to now: (show) transparency and competence," Barlett added.
reference:
http://www.cnn.com/2010/BUSINESS/02/25/toyota.congress.react/index.html
Perhaps the highlight of the head of Toyota's trip to Washington happened not on Capitol Hill, but when speaking before U.S. Toyota dealers at the National Press Club after giving hours of testimony before U.S. legislators.
"At the hearing, I was not alone -- you and your colleagues, around America, across the world, were there with me," said Akio Toyoda, breaking into tears as the dealers applauded Wednesday.
It was a human moment that reflected the considerable weight placed upon the typically taciturn scion of the Toyota family, and perhaps even his relief -- and the collective relief of Japanese corporations, politicians and public -- that Toyoda came out of the experience burnishing the image of his tarnished company.
Japan Inc.'s reputation rides on Toyoda
"Under the circumstances, he did very well indeed," said Dave Bartlett, the Washington-based senior vice president of Levick Strategic Communications. "He did suffer from the language barrier, which made it tougher for him to express the emotion that would have probably amplified his message in a way he would have liked."
"My impression was that he did better than expected and that the politicians, for the most part, were surprisingly gentle," added Michael Alan Hamlin, president of Team Asia, which provides communications advice to multinational companies.
Toyada was more circumspect about his performance. He admitted to CNN's Larry King that the day had been difficult, "and I am not confident to what degree our sincerity was conveyed."
Kyung Lah, CNN's Tokyo correspondent, noted "this is a different Akio Toyoda we're seeing today. He's appearing more earnest, trying to portray a sincere attitude -- a humble appearance for a company head.
"This is a different attitude than we saw in Japan," added Lah, who covered Toyoda's three Tokyo press conferences in the weeks leading up to his appearance before U.S. Congress.
In Japan, television reports noted that Toyoda was answering carefully and choosing his words cautiously because the "U.S. is a lawsuit-oriented culture." Cultural differences were also remarked upon when the hearing chairman asked Toyoda, "Is that a yes or no?"
"Japanese often answers questions circuitously before getting to the answer ... the (television) station pointing out that this is a culture gulf," Lah noted.
Toyoda in Washington: A clash of cultures?
Wall Street applauded Toyoda's performance -- Toyota stock ended the day in New York trading up 4 percent.
Much is riding on Toyota's recall mop-up. The company saw its sales drop 16 percent last month in the U.S., its biggest market. Consultancy "Brand Finance" -- which annually ranks the world's top 500 brands by monetary value -- recently ranked Toyota as the 9th most valuable brand in the world. But the consultancy said if the company fails to resolve the sudden acceleration problem consumers could turn on Toyota and risks losing more than 25 percent of its brand value.
So far in their handling of the global recall, "they appeared to be the gang that couldn't shoot straight -- was it the mats? Was it the pedal? Was it the computer?" Bartlett said. "They have to tighten that up and get it behind them."
"They have to do two things they haven't done up to now: (show) transparency and competence," Barlett added.
reference:
http://www.cnn.com/2010/BUSINESS/02/25/toyota.congress.react/index.html
China defends decision to execute drug-smuggling Briton Akmal Shaikh
China vigorously defended its justice system today, a day after its Supreme Court rejected the final appeal from a Briton who faces the death penalty on charges of drug-smuggling.
The case of Akmal Shaikh, 53, from London, has prompted several appeals from Gordon Brown to China’s leaders to exercise clemency towards a man who reportedly suffers from mental health problems.
A Chinese Foreign Ministry spokeswoman Jiang Yu said: "China’s judicial authorities independently handled this case in accordance with the law. Drug-smuggling is a grave crime in international practice."
She rejected charges from groups supporting Mr Shaikh that the courts had refused to allow independent assessments of the Briton’s mental health. "During the entire process, the litigation rights and the relevant rights and interests of the defendant were fully respected and guaranteed. China has offered prompt consular information to the UK and arranged consular visits."
Mr Shaikh was arrested in September 2007 on arrival in Urumqi, the capital of the far western Xinjiang region, in possession of four kg (8.8lb) of heroin. Campaigners said that he was duped into carrying the drugs for a criminal gang.
The Foreign and Commonwealth Office said that the Chinese authorities had confirmed the execution would take place on December 29. The FCO said it was “alarmed and deeply concerned" at the news that the final appeal had been denied.
It also said it regretted that Chinese officials had not taken Mr Shaikh's mental health into account despite repeated requests by Mr Brown, government ministers and the European Union.
If the death penalty is carried out, Mr Shaikh would become the first national from a European Union country to be executed in China in decades.
The British prisoners' rights charity, Reprieve, which has been campaigning on behalf of Mr Shaikh, said he would become the first EU national to be put to death in China in 50 years. Diplomats have said an Italian national was executed during the chaotic Cultural Revolution in the 1970s.
Mr Brown pressed the case to the Chinese Premier Wen Jiabao in a telephone call earlier this month, officials have said. An FCO spokesman said: "We will be using the next few days to renew and intensify our appeal to the Chinese authorities for clemency. The Prime Minister and other ministers have been, and remain, closely engaged."
Reprieve said it has medical evidence that Mr Shaikh, who is married with three children, suffered from a delusion that he was going to China to record a hit single that would usher in world peace. However, he was duped by a criminal gang into unwittingly carrying drugs for them into China, Reprieve alleged, saying that his strange behaviour was "influenced or caused by" his mental illness.
Clive Stafford Smith, Reprieve’s director, said: “I just spoke to Akmal’s brother about this terrible news, and it is impossible to imagine what Akmal’s family are going through this holiday season. This is no time for pride – they beg the Chinese authorities to show compassion and take Akmal’s mental health problems into account.”
http://www.timesonline.co.uk/tol/news/world/asia/article6964839.ece
The case of Akmal Shaikh, 53, from London, has prompted several appeals from Gordon Brown to China’s leaders to exercise clemency towards a man who reportedly suffers from mental health problems.
A Chinese Foreign Ministry spokeswoman Jiang Yu said: "China’s judicial authorities independently handled this case in accordance with the law. Drug-smuggling is a grave crime in international practice."
She rejected charges from groups supporting Mr Shaikh that the courts had refused to allow independent assessments of the Briton’s mental health. "During the entire process, the litigation rights and the relevant rights and interests of the defendant were fully respected and guaranteed. China has offered prompt consular information to the UK and arranged consular visits."
Mr Shaikh was arrested in September 2007 on arrival in Urumqi, the capital of the far western Xinjiang region, in possession of four kg (8.8lb) of heroin. Campaigners said that he was duped into carrying the drugs for a criminal gang.
The Foreign and Commonwealth Office said that the Chinese authorities had confirmed the execution would take place on December 29. The FCO said it was “alarmed and deeply concerned" at the news that the final appeal had been denied.
It also said it regretted that Chinese officials had not taken Mr Shaikh's mental health into account despite repeated requests by Mr Brown, government ministers and the European Union.
If the death penalty is carried out, Mr Shaikh would become the first national from a European Union country to be executed in China in decades.
The British prisoners' rights charity, Reprieve, which has been campaigning on behalf of Mr Shaikh, said he would become the first EU national to be put to death in China in 50 years. Diplomats have said an Italian national was executed during the chaotic Cultural Revolution in the 1970s.
Mr Brown pressed the case to the Chinese Premier Wen Jiabao in a telephone call earlier this month, officials have said. An FCO spokesman said: "We will be using the next few days to renew and intensify our appeal to the Chinese authorities for clemency. The Prime Minister and other ministers have been, and remain, closely engaged."
Reprieve said it has medical evidence that Mr Shaikh, who is married with three children, suffered from a delusion that he was going to China to record a hit single that would usher in world peace. However, he was duped by a criminal gang into unwittingly carrying drugs for them into China, Reprieve alleged, saying that his strange behaviour was "influenced or caused by" his mental illness.
Clive Stafford Smith, Reprieve’s director, said: “I just spoke to Akmal’s brother about this terrible news, and it is impossible to imagine what Akmal’s family are going through this holiday season. This is no time for pride – they beg the Chinese authorities to show compassion and take Akmal’s mental health problems into account.”
http://www.timesonline.co.uk/tol/news/world/asia/article6964839.ece
news about China --Hanna
Rescue workers are attempting to reach at least 31 miners trapped in a flooded coal mine in the
China flooded mine traps dozens in Inner Mongolia
Inner Mongolia region of China, say officials.
One person has been killed in the flooded mine, near the city of Wuhai, 1,000km (600 miles) west of Beijing.
State media said powerful water pumps were being used but that 12 hours after the flood, "no progress" had been made.
China's coal mines remain notoriously dangerous despite tighter government regulations aimed at upgrading safety.
China Daily said 77 miners had been working at depths of up to 289m (948ft), when the mine flooded in the early hours of Monday morning. And a regional mining official told the newspaper 46 of them had been rescued by Monday evening.
According to official figures, 2,631 coal miners died in 1,616 mine accidents in China in 2009, down 18% from the previous year.
The government says the fall was due to a tightening of regulations and the closure of some 1,000 smaller and less well-regulated mines.
reference:http://news.bbc.co.uk/1/hi/world/asia-pacific/8544682.stm
China flooded mine traps dozens in Inner Mongolia
Inner Mongolia region of China, say officials.
One person has been killed in the flooded mine, near the city of Wuhai, 1,000km (600 miles) west of Beijing.
State media said powerful water pumps were being used but that 12 hours after the flood, "no progress" had been made.
China's coal mines remain notoriously dangerous despite tighter government regulations aimed at upgrading safety.
China Daily said 77 miners had been working at depths of up to 289m (948ft), when the mine flooded in the early hours of Monday morning. And a regional mining official told the newspaper 46 of them had been rescued by Monday evening.
According to official figures, 2,631 coal miners died in 1,616 mine accidents in China in 2009, down 18% from the previous year.
The government says the fall was due to a tightening of regulations and the closure of some 1,000 smaller and less well-regulated mines.
reference:http://news.bbc.co.uk/1/hi/world/asia-pacific/8544682.stm
News article from China - Sue
Toyota boss Akio Toyoda apologises in China
The president of the Japanese car company Toyota, Akio Toyoda, has apologised to customers in China, the world's biggest auto market.
Mr Toyoda travelled to Beijing after his high-profile appearance before angry US lawmakers last month.
The visit to China is more low key, but reflects the importance Toyota attaches to the market there.
Mr Toyoda spoke to reporters after meeting Chinese quality control officials earlier in the day.
"I'd like to express my sincere apologies to Chinese customers for the impact and the worries this incident caused," he said.
"Toyota as an automaker thinks it is important to not cover up and to put consumer safety first."
Toyota's share of the Chinese car market is small compared to that of most of its rivals, about 5% of the country's total auto sales.
It has recalled just over 75,000 vehicles here because of concerns over faulty accelerators, a tiny fraction of the 8.5 million recalls worldwide.
Analysts agree the visit is an effort to shore up consumer confidence in the Toyota brand.
It is a gesture to show how important the Chinese market is to the company.
That importance is likely to grow as worries over quality have damaged Toyota's sales elsewhere.
The company's sales here have held steady in recent weeks.
As one commentator put it: Mr Toyoda has come to say thanks as well as sorry.
Reference:http://news.bbc.co.uk/1/hi/world/asia-pacific/8543135.stm
The president of the Japanese car company Toyota, Akio Toyoda, has apologised to customers in China, the world's biggest auto market.
Mr Toyoda travelled to Beijing after his high-profile appearance before angry US lawmakers last month.
The visit to China is more low key, but reflects the importance Toyota attaches to the market there.
Mr Toyoda spoke to reporters after meeting Chinese quality control officials earlier in the day.
"I'd like to express my sincere apologies to Chinese customers for the impact and the worries this incident caused," he said.
"Toyota as an automaker thinks it is important to not cover up and to put consumer safety first."
Toyota's share of the Chinese car market is small compared to that of most of its rivals, about 5% of the country's total auto sales.
It has recalled just over 75,000 vehicles here because of concerns over faulty accelerators, a tiny fraction of the 8.5 million recalls worldwide.
Analysts agree the visit is an effort to shore up consumer confidence in the Toyota brand.
It is a gesture to show how important the Chinese market is to the company.
That importance is likely to grow as worries over quality have damaged Toyota's sales elsewhere.
The company's sales here have held steady in recent weeks.
As one commentator put it: Mr Toyoda has come to say thanks as well as sorry.
Reference:http://news.bbc.co.uk/1/hi/world/asia-pacific/8543135.stm
articel from Hong Kong--kelvin
AIA shelves listing as Prudential seals $276b takeover
Mandy Lo
Tuesday, March 02, 2010
ADVERTISEMENT
American International Assurance has shelved its flotation in Hong Kong after attracting a buyer.
British insurer Prudential has agreed to take over AIG's Asian life insurance arm for US$35.5 billion (HK$276.9 billion).
The post-merger unit will seek to dual-list in the SAR after the transaction is complete by the third quarter earliest.
"This transaction is hugely exciting and a one-off opportunity to transform the group," said Prudential chief executive Tidjane Thiam. "Aside from the transaction, it is our intent in due course to seek a dual primary-listing on the Hong Kong Stock Exchange to enable our customers and investor base to share in this value creating opportunity."
Hong Kong Exchanges and Clearing (0388) chairman Ronald Arculli said it was a "pity" to lose the large IPO deal - AIA had aimed to raise up to US$20 billion in the city. He said it will be possible for AIA's new owner to trade it publicly.
Prudential's London-listed shares declined 13 percent yesterday after a short suspension pending the announcement.
Announcing the merger yesterday, Prudential said the move aimed "to capture the future growth opportunity in Asia."
It will pay AIG a total consideration of US$35.5 billion made up of US$25 billion in cash and US$10.5 billion in new Prudential shares and other securities.
This is 1.69 times AIA's embedded value and 25.4 times its new-business profit in 2009. The price-to-earnings multiple of the deal excluding cost of synergies is 24.7 times.
The British firm said the integration cost of the two insurers is expected to be US$340 million, the same amount as saved after cutting regional offices and management-related expenses.
The rights issue and transaction are subject to approval from Prudential shareholders in May.
Reference:
http://www.thestandard.com.hk/news_detail.asp?pp_cat=30&art_id=95192&sid=27251990&con_type=1
Mandy Lo
Tuesday, March 02, 2010
ADVERTISEMENT
American International Assurance has shelved its flotation in Hong Kong after attracting a buyer.
British insurer Prudential has agreed to take over AIG's Asian life insurance arm for US$35.5 billion (HK$276.9 billion).
The post-merger unit will seek to dual-list in the SAR after the transaction is complete by the third quarter earliest.
"This transaction is hugely exciting and a one-off opportunity to transform the group," said Prudential chief executive Tidjane Thiam. "Aside from the transaction, it is our intent in due course to seek a dual primary-listing on the Hong Kong Stock Exchange to enable our customers and investor base to share in this value creating opportunity."
Hong Kong Exchanges and Clearing (0388) chairman Ronald Arculli said it was a "pity" to lose the large IPO deal - AIA had aimed to raise up to US$20 billion in the city. He said it will be possible for AIA's new owner to trade it publicly.
Prudential's London-listed shares declined 13 percent yesterday after a short suspension pending the announcement.
Announcing the merger yesterday, Prudential said the move aimed "to capture the future growth opportunity in Asia."
It will pay AIG a total consideration of US$35.5 billion made up of US$25 billion in cash and US$10.5 billion in new Prudential shares and other securities.
This is 1.69 times AIA's embedded value and 25.4 times its new-business profit in 2009. The price-to-earnings multiple of the deal excluding cost of synergies is 24.7 times.
The British firm said the integration cost of the two insurers is expected to be US$340 million, the same amount as saved after cutting regional offices and management-related expenses.
The rights issue and transaction are subject to approval from Prudential shareholders in May.
Reference:
http://www.thestandard.com.hk/news_detail.asp?pp_cat=30&art_id=95192&sid=27251990&con_type=1
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