After a year of relative calm in which its shares have surged, electric vehicle (EV) aspirant BYD (HKEx: 1211; Shenzhen: 002594) is once embroiled in a couple of mini-scandals involving its labor practices and technology in California. While I doubt that either of these problems will have a long-term impact on the company, they do highlight the many speed bumps that BYD and other Chinese automakers will face as they move into the global marketplace. The risks are particularly high for BYD, which is 10 percent owned by billionaire investor Warren Buffett, since the company is relying heavily on global markets to fuel its EV business. Read Full Post…
I don’t usually write about expat-specific topics in this column, as I prefer to focus on broader issues of interest to everyone here in Shanghai. But a recent news story on the difficulties faced by an expat who obtained a rare Chinese green card seemed like a good opportunity to look at the bureaucracy that affects all of us here as we go about our daily lives. Read Full Post…
Rupert Murdoch’s News Corp (Nasdaq: NWSA) ended its stormy love affair with Chinese television late last week, when it sold its last remaining major asset to a private equity firm. The company’s gradual withdrawal over the last 3 years underscores the difficulty that many western media firms still face in China’s TV market despite rapid changes over the last year. Domestic and foreign companies alike need space to act more commercially in a streamlined regulatory environment for China to develop a truly world-class industry that can someday challenge the dominance of Hollywood. Read Full Post…
After several years of trying to figure out what to do with billions of dollars in problematic loans made by Chinese banks during the global financial crisis, Beijing may be close to a long-term solution with plans to create a special market for selling off those loans. Central leaders should be commended for finally addressing a problem that has been hanging over China’s banking sector for the last 2 years, putting the nation’s financial recovery at risk. At the same time, this latest rescue plan once again underscores the close relationship between China’s major banks and the central government, which often prevents them from behaving like true commercial banks. Read Full Post…
The coming months will be a pivotal time for Beijing to show its commitment to free trade, as China’s three telcoms operators get set to award billions of dollars in new contracts to build 4G mobile networks. The building spree will mark the first batch of big new contracts since both the US and Europe took moves last year that could severely limit or ban the import of Chinese networking equipment for reasons of national security and unfair competition. Read Full Post…
