What's news

WeChat global push slows

The globalization of WeChat, a messaging application owned by Tencent Holdings Ltd, may face a bump in the road after the Chinese Internet giant decided to reduce promotional activities for the app in overseas markets.

Pony Ma, founder and chief executive officer of the Shenzhen-based Tencent, said on March 18 that the company will stop overseas commercial promotions through hard advertisements as the app's user growth has been plateauing in overseas markets.

Chinese tourists spent $163b overseas in 2014

Chinese outbound tourism rose 19.5 percent to 109 million departures last year, according to a recent report by the China National Tourism Administration, a dramatic rise from 10 million departures in 2000. Chinese tourists spent almost $163 billion on overseas shopping sprees last year.

China has been the world's largest outbound travel market since 2012, says the United Nations World Tourism Organization.

About 174 million Chinese tourists are expected to spend $264 billion by 2019, predicts Bank of America Merrill Lynch.

Firm takes stake in French airport

The Shandong provincial government has approved the acquisition by Shandong Hi-speed Group Co Ltd of a 49.99 percent share in Toulouse-Blagnac Airport, the fourth-largest in France, for 308 million euros.

Shandong Hi-speed Group, a state-owned investing and operating company involved in the road, rail and maritime transport segments, together with Friedman Pacific Asset Management Ltd, a Hong Kong-based investment company, formed a consortium to complete the acquisition, according to the local government's announcement.

The French government and authorities will retain a 50.01 percent stake in the airport. France chose the Chinese consortium from among a field of bidders in late 2014.

Li Ning to team with Xiaomi

Li Ning Co, which makes athletic shoes and sporting goods, is teaming up with Chinese smartphone maker Xiaomi to produce a new generation of "smart" running shoes this year in an effort to revive its waning fortunes.

Li Ning, backed by private equity powerhouse TPG Capital and Singapore wealth fund GIC, warned in January that it expects to post its third consecutive full-year loss as it grapples with restructuring, bloated inventories and slowing demand following the 2008 Beijing Olympics.

Li Ning's efforts to recapture its glory days by appealing to a younger generation have been evident in its product designs and high-profile marketing campaigns. In 2013, it signed a multimillion dollar sponsorship deal with NBA basketball superstar Dwayne Wade.

Rare earth production quotas set for 2015

The Ministry of Industry and Information Technology on March 17 announced the first batch of rare earth production quotas for 2015. Of the total, the production quota for rare earth minerals and smelting and separation products for 2015 stood at 52,500 metric tons and 50,050 tons, respectively. China Northern Rare Earth (Group) High-tech Co Ltd, the largest rare earth producer, took the lion's share in the total production quotas, with quotas for minerals production and smelting and separation products amounting to 29,750 tons and 25,960 tons respectively, up 4,750 tons and 4,690 tons, or about 20 percent from the preceding year.

Direct flight to link Chengdu and Moscow

A direct flight between Chengdu, capital of Sichuan province, and Moscow will be launched by Sichuan Airlines on May 2, the airline announced on March 13.

The first direct flight linking a southwestern city in China and Russia will fly every Tuesday, Thursday and Saturday to cut the travel time between the two cities to eight or nine hours.

Currently three direct flights are available between Chengdu and Europe, including to Amsterdam, London and Frankfurt.

Major shipbuilder posts hefty profits in 2014

Net profit for China State Shipbuilding Corp rose 11.8 percent from the previous year to 44.19 million yuan ($7.21 million) in 2014 due to rebounding market demand, the company said on March 14.

The shipbuilder attributed last year's performance to recovering demand and because it finished more orders of ships, drilling platforms and diesel engines. The shipbuilder built 48 ships and repaired 360 in 2014. Revenue last year reached 28.32 billion yuan, up 27.6 percent from a year ago, it said.

Land Rover accused of using faulty gearboxes

Land Rover has adopted faulty gearboxes in its Evoque sports utility vehicle in China, according to a March 15 report by China Central Television.

Owners of the Evoque throughout China encountered malfunctions, such as sudden stops while driving and a faulty reverse gear, that occurred soon after Land Rover stores swapped out previously defective gearboxes with new ones for free, according to a consumer protection show by CCTV on March 15, which is International Day for Protecting Consumers' Rights.

Land Rover has not announced a recall of Evoque cars in China. The average price for an Evoque in China is over $100,000.

JD launches door-to-door delivery app

JD Inc, China's largest online direct sales company, launched an app on March 16 to offer delivery services for nearby businesses, a move to tap into the country's rapidly growing online-to-offline business.

The app, named Paidaojia, allows users to make online orders from nearby merchants and receive door-to-door delivery service from JD. As long as users make orders from stores within a 3-kilometer radius, JD guarantees delivery within two hours.

Corn imports from Ukraine to rise

China, the world's second-largest corn consumer, has booked over 600,000 metric tons of corn from Ukraine this year and more deals are expected as Beijing's stockpiling dries up supplies and boosts domestic prices. China's move to import Black Sea shipments under a loan-for-grain deal is seen as a blow to US corn exporters who are struggling to sell the country's record crop. US corn futures fell for a fourth straight session on March 17, trading near a six-week low with additional pressure from China's purchases of Ukrainian corn. Some of the Ukraine cargoes for April-May shipment were struck at about 1,500 yuan ($240) per ton, including cost and freight, said one buyer.

China Daily

(China Daily European Weekly 03/20/2015 page18)