The guys at 2point6billion.com have a long post on an industry close to the heart of China-watchers: telecoms. (more…)

Millions of Indians reside in the Middle East. They constitute the largest portion of the populations within the Arab Gulf – upwards of 50% in some country states. Spread across the economic divide, the Gulf is the cherished destination for a first time expat from India – a softer landing internationally & importantly cultural affinity which could be traced back to time.

It’s the Chinese though who are stepping in with a concerted investment strategy within the Middle East. Will leave the investments within the Oil & Gas industry to be a foregone conclusion and focus on the supposedly USD 300+ million investment by the Chinese government within Dubai, UAE for setting up the largest Chinese exhibition centre for goods manufactured within China in a country outside the Mainland. (more…)

A quite fascinating post from the folks at 2point6billion.com by Josh Gartner of China Expat magazine on the ancient trade route, through Tibet, between China and India:

The western media has meticulously documented China’s recent economic explosion. Yet for a long time many wondered why India, the world’s second most populous country, lagged so far behind. Some surmised it had something to do with cultural differences, while other postulated that the problem was political. In the last few years, this debate has disappeared as quickly as India’s record of slow growth has. But a new question has emerged: will China and India be able to move past their rivalry and become partners once again?

The two countries share long borders, primarily along the edge of Tibet, and have coexisted in one form or another for thousands of years. Tea and Buddhism have flowed across their mountainous boundaries and defined their cultures since before Mohammed was born. Yet in the modern era, bilateral trade has remained surprisingly minimal until quite recently. As of 2000, it amounted to only US$2.9 billion, or slightly more than 1980 levels of Sino-US trade, well before China had liberalized its economy.

In the last six years, though, things have changed considerably. China and India’s once precarious relationship, while still somewhat fragile, is gaining strength quickly. Trade has gone up nearly nine-fold since the turn of the millennium, and Beijing is now India’s second most important trading partner by volume (after the US). While specific political differences contributed to the late start of modern economic cooperation, trade has been difficult, yet critical, throughout their shared history.

(more…)

A post from 2point6billion.com that touches on the same theme as a recent dispatch from us:

With Shanghai Having a Market Cap Four Times The Size of Bombay - Why Is It Indian Companies Are Taking The Lead In Global M&A?

An examination of the roles and responsibilities of the stock exchanges of Shanghai and Mumbai leads to some interesting potential implications for the development of companies listed on the respective bourses – and some pointers as to why it is currently Indian – and not Chinese – companies that are currently expanding globally.

Firstly, lets look at some comparisons and history.

The Bombay Stock Exchange (BSE) – is known as the oldest exchange in Asia. It traces its history to the 1850s, when stockbrokers would gather under banyan trees in front of Mumbai’s Town Hall. The location of these meetings changed many times, as the number of brokers constantly increased. The group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as ‘The Native Share & Stock Brokers Association’. In 1956, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act.

The Bombay Stock Exchange developed the BSE Sensex in 1986, giving the BSE a means to measure overall performance of the exchange. In 2000 the BSE used this index to open its derivatives market, trading Sensex futures contracts. The development of Sensex options along with equity derivatives followed in 2001 and 2002, expanding the BSE’s trading platform.

Historically an open-cry floor trading exchange, the Bombay Stock Exchange switched to an electronic trading system in 1995. It took the exchange only fifty days to make this transition.

The Exchange is known for tough listing regulations and a strict adherence to transparency, giving it an well deserved reputation internationally. This is demonstrated in it’s recent history and stability – over the past 15 years there have been only 22 changes of it’s top 100 listed companies. In total, the BSC has a market capitalization of USD900 million spread around 3,500 listed companies. (more…)

A brief look at China’s involvement in Africa over at 2point6billion.com:

The theme at hand is extremely controversial in terms of what the world thinks about a country that is ‘going global’ to a different place; a not-so-convenient place where nothing, yet everthing is as it seems… China’s works in continential Africa regardless of intentions (and unexpected consequences) are certainly a phenomenon to be watched closely. A history in the making?

The link brings us to perceptions - a bit negative (but which may represent the world’s thoughts on what China is doing in Africa. At large). Have a peek: http://www.spiegel.de/international/world/0,1518,484603,00.html

But more interestingly, I’m curious to hear what you all have to say about what India is doing in Africa, that is, in parallel to the scale of China’s influence there…

A recent post from 2point6billion.com with comparing free trade zones in China and India — read on:

The free trade zones that China so cleverly used to kick start the entire reconstruction of the country have now arrived in India.

With low tax rates and high investment into their local infrastructure, they remain a proven way in which a large country can suddenly offer world class facilities - for the world’s multinationals - without breaking the bank in doing so, and without disenfranchising much of the rural population.

Read the rest of the article at Shanghai Daily

A recent post courtesy of the folks at 2point6billion.com:

First piece from our new contributor, Siddharth Soni whose blog ‘drumming’ http://profss.blogspot.com/, provides some very critical analysis on India’s education imperative. His contribution is an observation and a selfless recognition of an important step that China has made to prioritize development (and improvement???) in education and the emphasis the government has placed on the need for training and producing more teachers. A lesson to be learned for India perhaps but would India be willing and able to replicate such a model?

—

Part-1

Chinese teachers’ colleges to offer free education soon

Yes, six of the top universities of China plan to waive all the expenses for students enrolled to become teachers and who’ve agreed to serve as teachers for 10 years after graduation. It is no small measure since it involves enrolling 12000 students and taking taking care of expenses to the tune of $5120 per student at least. And if this measure succeeds in the six universities, it would be implemented in other Chinese universities too. This initiative doesn’t just include imparting education to future teachers but it also ensures suitable employment in middle and primary school once students graduate.

(more…)

A fascinating new development on a bilateral China-India joint-venture - this time of an ancient and shared historical product of both countries, Tea! Wonder if they’ll brand the product or the farm in a fusion’esque name such as ‘Chai & Cha Farms’ or perhaps ‘Chai and Cha Tea Brothers’!!!

Check it out…

Indian, Chinese tea firms join hands (GOV.cn Tuesday, May 8, 2007)

Indian firm Tata Tea recently entered into a joint venture agreement with Zhejiang Tea Import and Export Company of China, news website businessstandard.com reported Tuesday.

Quoting a release issued Tuesday by Tata Tea to the Bombay Stock Exchange, the website said the agreement involves setting up a joint venture company at Economic Development Zone of Anji County, China’s Zhejiang province, for manufacture and marketing of green tea polyphenols, other green tea extracts, instant tea, liquid tea concentrates and other value-added tea beverages.

The project cost is estimated at 16 million U.S. dollars be funded by a mix of equity capital and borrowings.

Source: Gov.cn (the Chinese government’s official web portal) and originally on Business Standard

April 15th - the second part to a fascinating yet bizarre insight into the potential of India overtaking China…

My brother-in-law pointed me in the direction of this extraordinary site some days back.

It has some amazingly cool presentations on global development statistics and trends.

For a fascinating perspective, see this chart check the box labelled “trails” (bottom right) and chart India and China from 1979 to date.

It may just make the case for why India may overtake China in income and development indicators over the next 2-3 decades if it continues on the same trajectory.

* And in case you are still wondering about the title (which was in the best traditions of sensationalism), I accept it should be “might” rather than “will”

Thanks again Shantanu!

Shared by Shantanu Bhagwat (from his blog, global-themes), December 17, 2006

Starting with an intro to an IHT article by Thomas Friedman, who discusses the problems with and consequences of China’s inability - at least so far - to innovate; Shantanu flags up the comparative scenario in India, arguing that India has an edge thanks to its ‘3D Advantage’…

China, India and the “3D Advantage”
Thomas L Friedman writing in yesterday’s NYT (“Tough Choices” or “Learning to Keep Learning” Pg 7, 13th/14th Dec ’06) about the many changes that China will need to make to get into the “rank of innovation-oriented countries by 2020″ had a very interesting comment to make:

“…I still believe it is very hard to produce a culture of innovation in a country that censors Google – which for me is a proxy for curtailing people’s ability to imagine and try anything they want,”

As Friedman goes on to say, “You can command K-12 education. But you can’t command innovation. Rigor and competence, without freedom, will only take China so far…”

And this is where India may have an edge with its vibrant democracy, a culture of “questioning” and its tradition of free thinking…all of which gets turbo-charged when coupled with our enormous diversity…

In the long-running discussion of India vs. China, India’s “3D Advantage” (Democracy, Demographics and Diversity) may well prove to be decisive.

Thanks for sharing this Shantanu!