Sentury's China-made aircraft tires set to roll

The first group of commercial aircraft tires made by a Chinese company is expected to roll off the production line by the end of this year, which will likely end the history of total reliance on imported tires for China's civilian aircraft. Qingdao Sentury Tire Co Ltd, manufacturer of the home-made aircraft tire, has just poured 300 million yuan ($44 million; 37.49 million euros; ￡33.83 million) into the new facility, which covers 30,000 square meters and will reach a capacity of 150,000 tires per year in the coming five years. According to Boeing's forecast, China's civilian aircraft fleet, including both passenger aircraft and cargo aircraft, will reach 7,210 by 2034, nearly three times that of 2014. This will create a lucrative market for aircraft tires, since the industry practice is to replace them after 150 takeoffs and landings.

Dip seen in spending on luxury goods

Sales of major luxury goods companies in the Chinese mainland and Hong Kong fell by 2.4 percent year-on-year in the 2015 financial year, according to a report released by auditing and consulting firm Deloitte. It found that the slowing economy resulted in lower spending, and the central government's crackdown on luxury gifts in the corporate sector continues to have an impact. Nevertheless, demand remains steady among the country's expanding middle class, as they continue to buy better quality products and showcase their social status with growing disposable incomes. The report found that, as in other emerging markets, the prices of luxury goods in China are being adjusted downward. This, it said, is bringing them in line with global markets and encouraging more consumers to buy luxury brands in the domestic market.

Didi and Careem join forces in 2 new markets

China's ride-hailing giant Didi Chuxing announced on Aug 8 that it will invest in Dubai-based ride-hailing platform Careem, as part of a new partnership agreement between the two companies, to grow their networks in the Middle East and North Africa. It marks Didi's latest move to strengthen the company's global presence, right after it announced a week ago a similar investment in Uber rival Taxify to expand in Europe and Africa. The two companies on Aug 8 said they would cooperate in intelligent transportation technology, product development and operations. Didi declined to reveal the size of the investment in Careem.

China's coal producers seeing better profits

Coal producers in China have reported impressive profits for the first half of the year. In its semi-annual report filed with the Shenzhen Stock Exchange, Henan Shenhuo Coal and Power Co Ltd said the company's net profits, excluding nonrecurring gains and losses, increased by more than elevenfold year-on-year to 576 million yuan ($86 million; 73,27 million euros; ??66.12 million) due to a rise in prices. Meanwhile, China Shenhua Energy Co, the country's largest coal miner, announced earlier that its first-half profit jumped by 147 percent from the same period last year to 24.3 billion yuan. The company attributed the huge rise to higher coal prices.

Banking sector to see stable growth

China's banking sector is expected to grow steadily during the 2017-18 period with a lower nonperforming asset ratio. The commercial banks' assets are likely to grow by 10 percent a year, China Banking Association said in its annual report. The money supply will gradually expand, but problems including weak growth of interest rate differentials and rising credit costs might threaten net profits. Commercial banks lent more money to small and micro businesses and in individual housing loans in 2016, and much less to industries suffering from overcapacity, according to Pan Guangwei, executive vice-head of the CBA. In 2017, commercial banks are expected to make adjustments to better serve the Belt and Road Initiative, Beijing-Tianjin-Hebei coordinated development and Yangtze River Economic Belt plans.

Joint action to protect intellectual property

French luxury group Kering and Chinese e-commerce company Alibaba announced their cooperation on Aug 3 to protect brands' intellectual property rights. In a joint news release, the partners said the new partnership would see the companies "fight against infringers in order to provide the best consumer experience and a trusted environment." "This agreement reflects the parties' firm belief that taking proactive measures and using advanced technology will help law enforcement bodies and other relevant authorities address the challenges of intellectual property infringement," they added. Under the agreement, the two groups had set up "a joint task force" aimed at "collaborating fully, exchanging useful information, and working closely with law enforcement bodies to take appropriate action against infringers of Kering's brands identified with Alibaba's advanced technology capabilities." As part of the new cooperation, the French luxury group has dropped its lawsuit against the Chinese e-commerce giant filed in 2015 in New York over alleged counterfeit brands sold on Alibaba's websites.

Zambia's digitial TV project gets a boost

A Chinese pay-to-view television provider announced on Aug 9 a cut in the prices of its decoders in Zambia to help local people benefit from a digital migration program. TopStar Communication Co, a joint venture between Zambia National Broadcasting Corp and Chinese digital television provider StarTimes, said it has reduced prices of the settop box to enable more Zambians to benefit from the television digital migration program being rolled out across the country. Cliff Sichone, the company's sale director, said the decoders have been reduced from 199 Zambian Kwacha ($22; 19 euros; ￡17) to 99 Kwacha in a campaign to roll them out after the government subsidized the price. Zambia will switch off all analog television services in urban areas beginning on Oct 1 as the southern African nation moves to digital. The International Telecommunication Union had set June 17, 2015, as the deadline for countries to migrate from analog to digital terrestrial television. Zambia partially met the deadline, but the country has been running simulcast television services in urban areas.

Morocco will host investment forum

The second edition of the China-Africa Investment Forum will be held in the Moroccan city of Marrakech on Nov 27-28, local media reported on Aug 7. The forum will bring together more than 400 top-level Chinese and African business leaders, the Moroccan financial daily l'Economiste said. The event will facilitate business meetings between the main stakeholders of trade and investment between China and Africa countries in order to foster the creation of sustainable partnerships with high added value, particularly in the industrial sector. The forum dedicates two days of conferences and debates to the financial implications of investment for African economies, and to making the continent a true industrial platform. Alongside the conferences, practical workshops will provide insights and keys to understanding Chinese and African economic policies and operational environments.

(China Daily European Weekly 08/11/2017 page24)