IN BRIEF (Page 24)

IT industry output expanding rapidly

The output of China's information technology industry expanded 10 percent year-on-year in 2016, thanks to the strong performance of smartphones, routers and LCD panels, an official said on Feb 21. The growth rate was 4 percentage points higher than the rate of overall industrial expansion last year, according to Zhou Zixue, deputy head of the China Information Technology Industry Federation. China's industrial output expanded 6 percent year-on-year in 2016, the National Bureau of Statistics data showed. Industrial output, officially called industrial value-added, is used to measure the activity of designated large enterprises with annual turnover of at least 20 million yuan ($2.9 million; 2.8 million euros; 2.34 million).

Polish plane-maker lands in Nantong

Polish aircraft-maker Marganski has teamed up with an airport industrial park in Nantong, Jiangsu province, to jointly produce light utility aircraft. Tongzhou district authorities in Nantong confirmed the deal on Feb 21. Investment for the aircraft manufacturing base totals 375 million yuan ($54 million; 51.7 million euros; 43.9 million) with $30 million of foreign investment. The plant is based in the airport industrial park and will start production of Marganski's EM-11C Orka aircraft in the first half of 2018. The twin-engine aircraft is constructed of composite materials with a four-seat cabin. It can be used for touring, business travel, flight instruction and patrols.

Mercedes-Benz recalls vehicles

German carmaker Mercedes-Benz started recalling 59 vehicles in China on Feb 21 over defective electronic power steering, according to China's quality watchdog. The recall affects 29 cars made between July 4, 2013 and March 3, 2015, as well as another 30 other models manufactured between June 16, 2014 and June 27, 2015, according to an online statement by the General Administration of Quality Supervision, Inspection and Quarantine. The defective electronic power steering in these vehicles could lead to vehicle collisions and fires, causing safety risks, the statement said.

Samsonite hopes to bag bigger share

Samsonite International SA, the world's largest luggage brand by market share, is pinning its hopes on e-commerce and social media to fuel growth and make China its biggest market within five years. Sales in China, which now account for more than 10 percent of its total revenue, are likely to double by 2022, thanks to the explosion in online shopping and a wealthier population eager to travel, Samsonite CEO Ramesh Tainwala said on Feb 22. The company said that virtual stores on Tmall and JD.com, the country's duopoly of business-to-customer sites, have claimed 60 percent of Samsonite's online business in China. They also sell through the digital outlets of shopping malls and department stores. To harness that growth, Samsonite will open its own online shopping portal this year to attract more sophisticated buyers who wish to purchase bigger-ticket items directly, rather than through a third party.

PPPs to drive infrastructure

Public-private partnerships will be the main financing model Chinese local governments use for infrastructure investments up to 2020, with state-owned enterprises to play the leading role, global ratings agency Fitch said on Feb 20. The PPP model will also help Chinese construction companies expand their order books, Fitch said. However, the model is in its early stages of development, and SOEs have emerged as the main partners of Chinese local governments, rather than private investors. "This is mainly because returns on most PPP projects, typically 5 percent to 8 percent, are not appealing to private investors, but are sufficient for SOEs, which enjoy lower financing costs," Fitch said.

Chengdu to double trains to Europe

Chengdu, the capital of Sichuan province, is expected to run 1,000 cargo trains to Europe in 2017, more than double last year, Chengdu International Railway Services Co said on Feb 20. Chengdu ran 460 cargo trains to cities in Poland, the Netherlands and Germany last year - more than any other Chinese city. It delivered a total of 73,000 metric tons of goods worth $1.56 billion (1.5 billion euros; 1.3 billion) in 2016 globally. The southwestern hub has planned three major rail line services to Europe, with a middle route to Germany, Poland and the Netherlands, a southern route to Turkey and beyond, and another northern route to Russia.

Benin sees China as top trade partner

China ranked as Benin's ninth-largest importer and fourth-largest exporter in the fourth quarter of 2016, the National Institute of Statistics and Economic Analysis said in its quarterly review issued on Feb 19. During the period, China imported over 1,149 metric tons of goods valued 5.7 billion CFA Francs ($9.2 million; 8.7 million euros; 7.4 million) from Benin but exported 30,099 tons of goods valued 87 billion CFA Francs to the West African country. Globally, Benin's exports during the period amounted to 29.7 billion CFA Francs in a quarter-to-quarter decrease of 29 percent, compared with 42.3 billion CFA Francs in the third quarter 2016. "It's an annual decrease of 60.6 percent compared with the same quarter the previous year," the quarterly review said.

China still atop S. African tourism

China remained the leading growth market for South Africa's tourism industry, with year-on-year growth recorded at 38 percent last year, figures released on Feb 20 showed. The growth in tourist arrivals from China has been consistent over the year, following improvements in the visa application processes, according to Tourism Minister Derek Hanekom. South Africa can build on this and attract even more tourists from China and other countries, he said after Statistics South Africa released figures showing a sharp increase in tourist arrivals. According to Stats SA, international tourist arrivals surpassed 10 million last year, 13 percent more than in 2015.

Czech finance group expanding on mainland

Home Credit Consumer Finance Co, the Czech Republic-based international consumer finance provider, will expand and add two call centers in China with more than 10,000 employees, as the country is seeing a boom in consumption upgrading, a senior executive said. Petr Krumphanzl, chief operations officer of Home Credit Consumer Finance Co, said that after the trial operation proved to be a success in Tianjin, "enlarging our Tianjin facility is urgent for our business strategy in China". Home Credit plans to boost the number of employees from 2,000 to 3,500 at its Tianjin call center by the end of June. Established in 2010 and 2014, its call centers in Wuhan and Changsha currently are supported by more than 6,000 employees.

Lego planning 40 chain stores

Lego has big ambitions to open chain stores in 40 Chinese cities in the next four years, aiming to expand the market from first-tier to second- and third-tier cities by 2020 through a combination of online and offline sales, the company says. "We are very optimistic about the future of the Chinese market," said Wang Li, vice-president of Lego China. "Lego has seen its fastest growth in China. With easing birth control and upgrading of consumption, the number of consumers in China will keep increasing. The toy industry sees great potential in China, the world's largest toy manufacturing and exporting country."

(China Daily Africa Weekly 02/24/2017 page24)