In what should come as a surprise to no one, a deal announced last week for a little-known Chinese firm to buy bankrupt US aircraft maker Hawker Beechcraft has already hit its first turbulence with objections from a major trade union, the International Association of Machinists and Aerospace Workers. This objection is only the first of many that I expect to see in this case, not only from the US but also from skeptical Chinese regulators, meaning this deal is almost guaranteed to fail. Let’s look at this first big obstacle, which comes just a week after Superior Aviation Beijing, partly owned by the Beijing municipal government, said it was in exclusive talks to buy Hawker for up to $1.8 billion. (previous post)
Tag Archives: ZTE
ZTE: Yet Another Probe as Profit Tumbles 中兴通讯又遭调查
Embattled telecoms equipment maker ZTE (HKEx: 763; Shenzhen: 000063) is probably starting to feel like an ailing hospital patient, following word that it’s coming under yet another investigation in what seems like a never-ending stream of probes by western governments. The recent investigations and other setbacks in both North America and Europe are taking a growing toll on ZTE’s bottom line, with the company warning that its profit dropped sharply in the second quarter and may have even disappeared completely.
News Digest: July 13, 2012 报摘： 2012年7月13日
The following press releases and media reports about Chinese companies were carried on July 13. To view a full article or story, click on the link next to the headline.
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- China’s Cable Operators to Receive Subsidies for Broadband – Source (English article)
- China Lodging Group (Nasdaq: HTHT) Announces Preliminary Q2 Operating Results (PRNewswire)
- Tom Group (HKEx: 2383) May Lose Skype China Operating Rights – Source (English article)
- Foreign Ministry Responds to EU Probe Against Huawei, ZTE (HKEx: 763) (Chinese article)
- ZTE (HKEx: 763) Says to Release Most Advanced Gaming Smart Phone in 6 Days (Chinese article)
Huawei: Manufacturer or Telco? 华为要做电信运营商？
Chinese telecoms equipment giant Huawei is trying all kinds of tricks to jump-start its flagging growth in the face of a global slowdown and political obstacles in the West, but its latest move in the Middle East that will see it become a network operator looks a bit desperate to me, and also quite risky. The latest deal comes against a backdrop of slowing growth that has seen Huawei’s revenue increase less than 20 percent last year, ending years of much stronger gains.
Chinese US Home Loan Set for Trouble 国开行拟向美国地产商贷款料遇政治障碍
News Digest: June 27, 2012 报摘： 2012年6月27日
The following press releases and media reports about Chinese companies were carried on June 27. To view a full article or story, click on the link next to the headline.
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◙ Xiaomi Wins $216 Million in Third-Round Funding (English article)
◙ US Home Builder Lennar (NYSE: LEN) Said to Discuss $1 Bln China Loan (English article)
◙ Trina Solar (NYSE: TSL) Replaces Deloitte With KPMG as Independent Auditor (PRNewswire)
◙ LDK Solar (NYSE: LDK) Reports Financial Results for Q1 of Fiscal 2012 (PRNewswire)
◙ China Rejects EU Accusations on Huawei, ZTE (HKEx: 763) Subsidies (English article)
Huawei Takes Refuge in India 华为在印度寻找避风港
Telecoms equipment giant Huawei, facing hostility on nearly ever major front in the West, is turning to India as it looks for a friendly face, with the announcement that it will spend some $2 billion on a new global product development center in this neighboring BRICS country. As a longtime Huawei watcher, I find this latest move somewhat ironic, as India was actually one of the first countries to launch an investigation due to security concerns into Huawei and crosstown rival ZTE (HKEx: 763; Shenzhen: 000063).
ZTE Commits to US, Huawei Hesitates 中兴“死磕”美国市场 华为略有收手
We’re seeing some interesting new signs coming from troubled telecoms equipment giants ZTE (HKEx: 763; NYSE: 000063) and Huawei in the US, with the former reaffirming its commitment to the difficult market even as the latter reportedly scales back its presence there. These latest signals reflect not only the many obstacles that both companies have faced in the US lately, but also challenges they are seeing in many western markets where governments worry that the pair are simply spying arms of Beijing.
News Digest: June 20, 2012 报摘： 2012年6月20日
The following press releases and media reports about Chinese companies were carried on June 20. To view a full article or story, click on the link next to the headline.
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◙ LaShou Withdraws US IPO Application (Chinese article)
◙ 360Buy VP of Technology Resigns (English article)
◙ ZTE (HKEx: 763) to Sustain US Telecoms Investment at 10% Annual Growth Rate (Businesswire)
◙ China Eastern (HKEx: 670), Shanghai Airlines and Sabre Sign Long-term Agreement (Businesswire)
◙ China Eyes Subsidies to Develop Energy-Saving Vehicles: Paper (English article)
News Digest: June 15, 2012 报摘： 2012年6月15日
The following press releases and media reports about Chinese companies were carried on June 15. To view a full article or story, click on the link next to the headline.
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◙ Baidu (Nasdaq: BIDU) to Share Revenue With Apple (Nasdaq: AAPL) on iPhone Deal (English article)
◙ US Lawmakers Probe China Telecoms Firms Huawei, ZTE For Ties, Contracts (English article)
◙ Nissan Plans $785 Mln North China Plant, to Challenge VW, Toyota: Source (English article)
◙ Jack Ma to Step Back from Alibaba Daily Management – Source (English article)
◙ Silicon Valley Bank Gears Up China Venture (English article)
News Digest: June 14, 2012 报摘： 2012年6月14日
The following press releases and media reports about Chinese companies were carried on June 14. To view a full article or story, click on the link next to the headline.
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◙ Jingdong Mall Has $1 Bln Cash, to Go On Buying Spree in Second Half of 2012 – CEO (Chinese article)
◙ Vidtel, ZTE (HKEx: 763) in Videoconferencing Partnership for North America (PRNewswire)
◙ Ctrip (Nasdaq: CTRP) Announces Up to US$300 Million Share Repurchase Program (PRNewswire)
◙ Sabre Forms Alliance with China’s TravelSky (Businesswire)
◙ Saab Auto Sold to China-Japan Group in Electric-Car Push (English article)
