China holds parade in celebration of the People’s Liberation Army (PLA) 90th Birthday



Viewhttps://youtu.be/2fhP6IcIiv4

What message did China’s military parade send?

China holds ceremony to mark 90th anniversary of PLA founding

Chinese President Xi celebrates military in speech  focused on peace, future – CGTN America

BEIJING — President Xi Jinping said Tuesday that the Chinese People’s Liberation Army (PLA) is moving rapidly toward “strong” informationized armed forces.

Xi said the PLA has transformed from a “millet plus rifles” single-service force to one that has fully-fledged services and has basically completed mechanization.

He said that the PLA must be bold in reform and adept in innovation while staying away from rigidity and stagnation at any time and under any circumstances.

Xi reaffirmed the Communist Party of China (CPC)’s absolute leadership over the PLA.

“To build a strong military, [we] must unswervingly adhere to the Party’s absolute leadership over the armed forces, and make sure that the people’s army always follow the Party,” he said.

Xi called for a new generation of “capable, brave and virtuous” army “with souls” in order to build a strong military.

Calling political work the “lifeline” of the PLA, Xi said troops must have ironclad faith, beliefs, disciplines and responsibilities, and retain their nature and tenet as the people’s army.

Xi has urged the country’s armed forces to bear in mind the sacred duty of fighting for the people.

The PLA is deeply rooted in the people and the strength comes from the people, said Xi.

Xi called on the PLA to maintain its close relationship with the people and “go through thick and thin” with them.

The PLA should also actively contribute to the economic and social development in stationed areas to benefit the people with actions, said Xi.

Xi urged boosting integrated military and civilian development amid efforts to build a strong military.

China must build a national strategic system and capacity of military-civilian integration, he said.

The CPC has established its thoughts on building a strong military in a new phase, Xi said.

The Party has put forward a series of new ideas and requirements concerning national defense and military building in the past five years since the 18th CPC National Congress, which together constitute the CPC’s thoughts on building a strong army in the new phase, Xi said.

The Party’s military strengthening theories should be constantly enriched and developed to cope with new challenges and solve new problems under new circumstances, he said.

He stressed “coordinated, balanced and inclusive development” of economic and national defense construction.

China will never compromise on its sovereignty, security or development interests, Xi said.

“The Chinese people love peace. We will never seek aggression or expansion, but we have the confidence to defeat all invasions. We will never allow any people, organization or political party to split any part of Chinese territory out of the country at any time, in any form,” Xi said.

“No one should expect us to swallow the bitter fruit that is harmful to our sovereignty, security or development interests,” he said.

Xi, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, made the remarks while addressing a grand gathering in celebration of the PLA’s 90th founding anniversary.

Source: China Daily/Asian News Network

PLA ready to guard sovereignty 

 

Standing ready: Chinese paramilitary policemen stand in formation at Tiananmen Square after attending a ceremony to commemorate the 90th anniversary of the founding of the People’s Liberation Army at the Great Hall of the People in Beijing. — AFP

BEIJING: The Chinese army will step up its pace of improving its joint combat capabilities and “stand ready to fight and win at any time”, State Councilor and Minister of National Defense Chang Wanquan said.

Speaking about the cross-Straits situation, Chang said yesterday the People’s Liberation Army is “confident, capable and fully prepared to resolutely safeguard State sovereignty and territorial integrity”.

Chang made the remarks during a speech at a grand reception marking the 90th anniversary of the founding of the PLA, which fell yester­day.

President Xi Jinping, who is also general secretary of the Communist Party of China Central Committee as well as chairman of the Central Military Commission, attended the reception along with other party and state leaders.

The PLA has come a long way since its birth during the armed uprising in the city of Nanchang on Aug 1, 1927, when it had only 20,000 soldiers.

Xi oversaw and addressed a grand military parade on Sunday marking the 90th anniversary at the Zhurihe Training Base in North China’s Inner Mongolia region.

Yesterday morning, Xi attended a grand ceremony in Beijing commemorating the 90th anniversary and delivered a speech.

Led by Xi, the PLA has been advancing reform, technological upgrades, boosting training and combat readiness, Chang said.

Through this, it has achieved thorough restructuring and greatly enhanced its combat effectiveness, he added.

The military will press ahead with reforms and staunchly focus on winning in combat and training for readiness, Chang said.

Speaking of the cross-Straits situation, Chang said adherence to the 1992 Consensus and opposition to Taiwan independence constitute the political foundation of peace and development of cross-Straits relations.

Any form of secessionist attempt by anyone at any time would surely be opposed by the whole Chinese people and nation, he added.

Noting the Chinese military’s role as a contributor to world peace, he said the PLA facilitates global development and supports international order.

As of June, the Chinese military had participated in 24 UN peacekeeping missions, sending 31,000 personnel, 13 of whom lost their lives on duty. — China Daily/Asia News Network

Related Links

People’s Daily, China – Facebook

Related posts:

Political tone at Penang heritage do


Politics was the name of the game at George Town heritage event involving a wealthy Chinese community leader and the current and former Chief ministers of Penang.

IT is rare to see the current and former chief ministers of Penang together but there they were, sharing the same stage at a heritage event at one of the most historical sites in George Town.

But going by the expressions on their faces, they seemed less than thrilled unlike the host of the occasion, Zhang Wei Lu, who was seated between them.

Zhang, a wealthy and good-looking businessman and currently chairman of the Penang Chinese Clans Association, looked buoyant and confident even though he is embroiled in a brewing dispute with the state government. His composure was all the more remarkable given the news reports in the Chinese vernacular press about his personal life just days earlier.

At the heart of Zhang’s dispute with the state government is a heritage property in George Town known as “50, Love Lane” which is historically connected to the Ghee Hin secret society in the 1800s.

The trustees who oversaw the property have died, leaving behind a backlog of unpaid property charges that resulted in the property being forfeited by the state.

The association has been trying for years to redeem the property but things took on an accelerated tone after Zhang came into the picture and discussions with the state government became strained along the way. The ties were also marred by disputes over state allocations for the association’s cultural events.

Things came to a head last week at the association’s annual heritage festival.

The Chinese clans and guilds have long been a part of local politics in Penang and politicians tend to dance around them because of their perceived clout over the community.

Over the years, it has been the practice for the chief minister of the day to attend but relations with the state government had grown so awkward this year that Zhang’s invitations to the state exco drew a blank. Only one state exco said he would be there.

As a result, the association turned to former chief minister Tan Sri Dr Koh Tsu Koon to launch its event.

Dr Koh was said to be quite reluctant because he had made a clinical cut with all things political after retiring from politics. His status on Facebook is listed as “Writer” and he has been working on his memoirs.

It is understood that Dr Koh only agreed to attend after Zhang told him that Lim Guan Eng would not be able to make it. Dr Koh is not the confrontational type and he was not interested in getting into a conflict.

But according to Zhang, a day before the event, he was informed that Lim would be attending. It was too late to change the arrangements and that was how Zhang found himself sandwiched between the sitting and former chief ministers.

That was when things took a rather political turn. Zhang made what some thought was a rather political speech. He praised Dr Koh for his contributions to the state and thanked him and the former state government for laying the foundation for George Town’s Heritage City status.

There is a Chinese saying, jie dao sha ren (borrow a knife to slay someone), and those watching on could see that Zhang was using Dr Koh to hit out at the state government.

It was a significant moment because members of the former state government had been treated like the proverbial black sheep since 2008 and Dr Koh had been like some kind of invisible man in Penang where he lives.

“It was the first time a big Chinese association had openly acknow­ledged and thanked Dr Koh for his contributions,” said Gerakan politician Dr Thor Teong Ghee.

Zhang also used the occasion to hit out at politicians for their “dirty politics” and for attacking him on personal matters.

He was referring to Chinese press reports quoting some DAP politicians who had dug into Zhang’s academic background.

The Chinese media often refers to him as “Dr Zhang” but checks by the DAP side showed that he did not complete his medical studies in Taiwan and they also questioned reports that he had furthered his studies in the Philippines.

There was also an awkward protocol moment which some thought was disrespectful to the Chief Minister. Normally, the highest ranking guest speaks last but Dr Koh was the final speaker.

The former and current chief ministers are as different as night and day and it was reflected in their respective speeches.

Lim was his usual combative self. He elaborated on his achievements for Penang and at one point, he sort of challenged Dr Koh to contest the general election and let the people decide on who they wanted.

But he did indicate that the state government would abide by the law on the “50, Love Lane” issue and he urged the association to consult their lawyers to find a solution.

Dr Koh played the gentleman po­li­tician. He said Penang’s Heritage City status was a long and challenging effort that would not have been possible without the input of his state exco members and the backing of the federal authorities.

“It is also the success of the people, of the different races, so we have to preserve it for the future generations,” he said.

The issue of “50, Love Lane” has become more complicated now that it has strayed into political waters.

Jelutong MP Jeff Ooi, who has a weekly column in the Penang-based Kwong Wah Yit Poh newspaper, had written on the issue: “Politicians and office-bearers come and go but the assets of the community are forever. We have to think of the long-term interests of the community. We have our expiry date and his (Zhang) expiry date is May next year.”

It was a signal to Zhang that his term as association chairman will end in May and he should not delay the legal process if he wants to be part of the solution.

Is the “50, Love Lane” issue a sign of the shifting tides in Penang Chinese politics?

Source: The Star by Joceline Tan

 Related Links:

Penang relents over heritage house – Nation 

Heritage property transferred for only RM1

No money to repair historical buildings

Colonial buildings‘ ownership puzzle

More historical buildings to be preserved

 

Related posts:
Father of modern Penang, Dr. Lim Chong Eu, a truly towering leader dies 
Rejuvenating George Town, Penang 
Rosy outlook for Penang 2014: Strong growth, rise in FDI seen 
Penang has confirmed the illegal hill clearing cases reported by Penang Forum 
Penang Chief Minister may have too much on his plate, be fair when sharing power 
Reject corrupt practices, weed out the bad apples, don’t hesitate reporting bribery
Wall and awning collapsed in house near construction site

The Asian financial crisis – 20 years later




East Asian Economies Remain Diverse

 

It is useful to reflect on whether lessons have been learnt and if the countries are vulnerable to new crises.

IT’S been 20 years since the Asian financial crisis struck in July 1997. Since then, there has been an even bigger global financial crisis, starting in 2008. Will there be another crisis?

The Asian crisis began when speculators brought down the Thai baht. Within months, the currencies of Indonesia, South Korea and Malaysia were also affected. The East Asian Miracle turned into an Asian Financial Nightmare.

Despite the affected countries receiving only praise before the crisis, weaknesses had built up, including current account deficits, low foreign reserves and high external debt.

In particular, the countries had recently liberalised their financial system in line with international advice. This enabled local private companies to freely borrow from abroad, mainly in US dollars. Companies and banks in Korea, Indonesia and Thailand had in each country rapidly accumulated over a hundred billion dollars of external loans. This was the Achilles heel that led their countries to crisis.

These weaknesses made the countries ripe for speculators to bet against their currencies. When the governments used up their reserves in a vain attempt to stem the currency fall, three of the countries ran out of foreign exchange.

They went to the International Monetary Fund (IMF) for bailout loans that carried draconian conditions that worsened their economic situation.

Malaysia was fortunate. It did not seek IMF loans. The foreign reserves had become dangerously low but were just about adequate. If the ringgit had fallen a bit further, the danger line would have been breached.

After a year of self-imposed austerity measures, Malaysia dramatically switched course and introduced a set of unorthodox policies.

These included pegging the ringgit to the dollar, selective capital controls to prevent short-term funds from exiting, lowering interest rates, increasing government spending and rescuing failing companies and banks.

This was the opposite of orthodoxy and the IMF policies. The global establishment predicted the sure collapse of the Malaysian economy.

But surprisingly, the economy recovered even faster and with fewer losses than the other countries. Today, the Malaysian measures are often cited as a successful anti-crisis strategy.

The IMF itself has changed a little. It now includes some capital controls as part of legitimate policy measures.

The Asian countries, vowing never to go to the IMF again, built up strong current account surpluses and foreign reserves to protect against bad years and keep off speculators. The economies recovered, but never back to the spectacular 7% to 10% pre-crisis growth rates.

Then in 2008, the global financial crisis erupted with the United States as its epicentre. The tip of the iceberg was the collapse of Lehman Brothers and the massive loans given out to non-credit-worthy house-buyers.

The underlying cause was the deregulation of US finance and the freedom with which financial institutions could devise all kinds of manipulative schemes and “financial products” to draw in unsuspecting customers. They made billions of dollars but the house of cards came tumbling down.

To fight the crisis, the US, under President Barack Obama, embarked first on expanding government spending and then on financial policies of near-zero interest rates and “quantitative easing”, with the Federal Reserve pumping trillions of dollars into the US banks.

It was hoped the cheap credit would get consumers and businesses to spend and lift the economy. But instead, a significant portion of the trillions went via investors into speculative activities, including abroad to emerging economies.

Europe, on the verge of recession, followed the US with near zero interest rates and large quantitative easing, with limited results.

The US-Europe financial crisis affected Asian countries in a limited way through declines in export growth and commodity prices. The large foreign reserves built up after the Asian crisis, plus the current account surplus situation, acted as buffers against external debt problems and kept speculators at bay.

Just as important, hundreds of billions of funds from the US and Europe poured into Asia yearly in search of higher yields. These massive capital inflows helped to boost Asian countries’ growth, but could cause their own problems.

First, they led to asset bubbles or rapid price increases of houses and the stock markets, and the bubbles may burst when they are over-ripe.

Second, many of the portfolio investors are short-term funds looking for quick profit, and they can be expected to leave when conditions change.

Third, the countries receiving capital inflows become vulnerable to financial volatility and economic instability.

If and when investors pull some or a lot of their money out, there may be price declines, inadequate replenishment of bonds, and a fall in the levels of currency and foreign reserves.

A few countries may face a new financial crisis.

A new vulnerability in many emerging economies is the rapid build-up of external debt in the form of bonds denominated in the local currency.

The Asian crisis two decades ago taught that over-borrowing in foreign currency can create difficulties in debt repayment should the local currency level fall.

To avoid this, many countries sold bonds denominated in the local currency to foreign investors.

However, if the bonds held by foreigners are large in value, the country will still be vulnerable to the effects of a withdrawal.

As an example, almost half of Malaysian government securities, denominated in ringgit, are held by foreigners.

Though the country does not face the risk of having to pay more in ringgit if there is a fall in the local currency, it may have other difficulties if foreigners withdraw their bonds.

What is the state of the world economy, what are the chances of a new financial crisis, and how would the Asian countries like Malaysia fare?

These are big and relevant questions to ponder 20 years after the start of the Asian crisis and nine years after the global crisis.

But we will have to consider them in another article.

By Martin Khor Global Trend

Martin Khor (director@southcentre.org) is executive director of the South Centre. The views expressed here are entirely his own.
Related Links:

Related posts

The government is moving ahead to
investigate whether there were any wrongdoings in the massive foreign
exchange losses suffered by Ba…
Unique gift: Ahmad Shabery (centre)
presenting kain songket made of pineapple fibre to China’s General
Administration of Quality Supervi…

Prospering with Belt and Road to reap the benefits of China’s initiative


Malaysia is one of 64 countries to reap the benefits of China’s initiative.

CAN money grow on fruit trees?

Yes, that is as far as Agriculture and Agro-based Industry Minister Datuk Seri Ahmad Shabery Cheek is concerned.

After witnessing the signing of a deal worth US$1.53bil (RM6.65bil) between Malaysia’s AgroFresh International and China’s Dashang Group for the export of local Cavendish bananas and tropical fruits to China, he said:

“Money does grow on fruit trees if our agriculture products could open up China’s market.”

The deal was part of the nine memorandums of understanding (MoUs) and agreements, with value totalling more than US$7.22bil (RM31.26bil), which were signed between Malaysian and Chinese companies on May 14.

But Datuk Seri Ong Ka Chuan, International Trade and Industry Minister II, sees more money flooding in once Malaysia is linked up with other Asean nations, China and Europe via rail connection under China’s Belt and Road Initiative, now termed as the New Silk Road project.

“Our trade figures can jump by three to four folds once Malaysia can export and import goods to our major trade partners (such as China, Europe and Middle East) overland via rail systems,” he tells Sunday Star.

Both ministers are among Cabinet members in the Malaysian delegation led by Prime Minister Datuk Seri Najib Tun Razak to attend the Belt and Road Forum for International Cooperation held in Beijing from May 14 to 15.

Malaysia is one of the 64 countries outside China that have benefited from the Belt and Road Initiative, propounded by Chinese President Xi Jinping in the autumn of 2013.

One project to be launched soon will be the RM55bil East Coast Rail Link. Examples of existing projects include Xiamen University and the deepening of Kuantan Port.

At the opening ceremony of the forum, Xi injected fresh impetus to his pet project by announcing hundreds of billions in new funds for infrastructure investment in Belt and Road countries that span Asia, Middle East and Europe.

According to some estimates, Chinese funds allocated for investing in Belt and Road countries – which include several exiting funds announced since 2013 – total around US$900bil (about RM4 trillion) now.

“Model of regional cooperation”

From Mongolia to Malaysia, Thailand to Pakistan and Laos to Uzbekistan, many projects, including high-speed railways, bridges, ports, industrial parks, oil pipelines and power grids, are being built, Xi said.

Since 2013, Chinese private businesses have invested more than US$60bil (RM260bil) in countries along the Belt and Road, in addition to the US$50bil invested by the Chinese government.

Xi’s speech also reveals that China will expand China-Europe railway cargo services, which are stirring up excitement in European nations – particularly Britain.

Belt-road: Ong signing Belt and Road MoU with Vice Chairman of National Development and Reform Commission of China Zhong Yong on May 13, 2017. Witnessing are Najib and China’s Premier Li Keqiang.

Calling his brand of globalisation as “project of the century” to achieve a win-win situation for all, Xi has committed to importing US$2 trillion (RM8.7bil) of goods from the 64 Belt and Road countries – many of which are under-developed and impoverished nations hungry for infrastructure and industrial investments.

The Chinese leader’s pledge of “non-interference” with the domestic politics of other countries is comforting, given that there are concerns that China could aim to be a hegemony with its economic and military might.

“What we hope is to create a big family where we can co-exist harmoniously,” Xi said last Sunday in his speech that also focused on connectivity in policy, infrastructure, trade, finance and people.

The forum is by far the most important and largest meeting on the Belt and Road Initiative since 2013.

About 130 countries were represented at the forum and they accounted for two thirds of the world’s population. Their combined gross domestic product accounts for 90% of the world’s total, according to Xinhua.

Klaus Schwab, founder and executive chairman of the World Economic Forum, regards the Belt and Road Initiative as “a shining model for regional collaboration, development and growth”.

“This initiative respects the differences between countries and their various paths for development, not imposing a specific plan or ideological framework, but seeking to create common ground for cooperation and mutual benefit,” Schwab told Xinhua.

UN secretary-general Antonio Guterres, also told Xinhua: “China will play a very important role in multi-lateralism with the Belt and Road. The initiative reflects a new model of international cooperation and interaction with mutually beneficial cooperation through the connection of policies and development strategies.”

And Jack Ma, executive chairman of Alibaba Group, shared: “The initiative goes far beyond the economic strategy of any single country or region. Its mission is to make the world more innovative, dynamic, and equal.”

Big step: Fernandes is excited that China has allowed AirAsia to be the first low-cost carrier to set up shop in the Middle Kingdom.

AirAsia deal – another first in China

On the sideline of the forum, Malaysian and Chinese leaders took the opportunity to clinch more agreements that brought bilateral ties to another new high.

While the deals signed last November were far more than this round and higher in total value, the Chinese Government continued to grant “first” to Malaysia. This was reflected in a project given to Tan Sri Tony Fernandes, group chief executive officer and founder of AirAsia Bhd. Soon, the sky will see AirAsia China.

“It is the first time a foreign airline is given permission to establish and operate a low-cost carrier in China. We are the first country to be granted such licence,” Najib told reporters at the conclusion of his visit to China.

AirAsia is establishing a joint venture with China Everbright Group, with an initial stake of 22%. However, AirAsia may raise its stake in future.

China Everbright is a government-owned financial services conglomerate, which is a major shareholder in China Aircraft Leasing Group Holdings Ltd and the Henan Government Working Group.

The plan is to set up AirAsia China to be based in Zhengzhou, the capital of Henan, to ply domestic and international flights.

“Tony Fernandes was very excited because he was able to meet the top transport and aviation officials, whom he could not secure appointments with previously. He has been working on this project for years,” a minister told Sunday Star.

Other Cabinet ministers are also upbeat after attending the Belt and Road Forum.

“I have witnessed the fruits of the close diplomatic ties between Malaysia and China, and between Najib and Xi Jinping during this trip,” says Transport Minister Datuk Seri Liow Tiong Lai, who signed a MoU on infrastructure cooperation with China.

“In China, economic developments are influenced by government policies. Now that our leaders have good ties with China, it is very timely for Malaysian businessmen to enter China, and vice versa,” he tells Sunday Star.

Important talks: Liow (second from left) leading a Malaysian delegation at a meeting with his Chinese counterpart at China’s Transport Ministry in Beijing on May 12 morning. From left are Transport Ministry deputy secretary-general Datuk Chua Kok Ching, MCA vice president Datuk Dr Hou Kok Chung and Fernandes.

“We have to promote economic growth fast enough so that we can harvest the fruits of the Belt and Road Initiative.

“The opportunities for Malaysia to develop the infrastructure and boost economic growth would not be available if not for the Belt and Road Initiative pushed forward by China,” he adds.

Minister in the Prime Minister’s Department Datuk Seri Dr Wee Ka Siong observes: “There are quite a number of business-to-business MoUs signed during this trip, in addition to the nine witnessed by Prime Minister Datuk Seri Najib Tun Razak.

“I was also invited to attend many discussions and meetings, sometimes I had to have many meals a day! (as discussions were held over meals).”

Wee, whose ministerial portfolio covers development of Chinese small and medium enterprises (SMEs), has personally requested Ma to reduce charges for Malaysian SMEs when they use Alibaba’s platform to sell products.

Ma, an e-commerce wizard and China’s second richest man, is expected to give consideration to the proposal as he has pledged to help Malaysia develop its digital economy. Ma will set up the Asean data centre in Malaysia before the end of the year.

Analysing Belt and Road Initiative, Shabery Cheek says: “Belt and Road is a different form of cooperation from other pacts, such as the Trans-Pacific Partnership (TPP) and World Trade Organisation (WTO). Those emphasised on what goods were tax-free and what were not, which sectors to open up and which could not. Essentially, they focused on how to protect the self-interests of individual countries.

“However, the Belt and Road talks about infrastructure networking, which is very important. They take the cue from the ancient Silk Road, which was not only a channel to transport goods, but also to spread Islam and Buddhism. That is a great thing.”

Source: Sunday Star by Ho Wah FoonTho Xin Yi

Related Link:

Trade can be boosted several fold
Related posts:

One Belt One Road paving the way to success 

Belt-road changes world order 

Xiamen University shaping up to be the largest foreign university campus in Malaysia 

A new China in the making at Xiamen International Fair for Investment and Trade (CIFIT) 

Liberty, Equality and Fraternity in the 21st century of China’s One Belt One Road strategy

Chinese car-maker Geely to make Malaysia its global hub, help Proton drive into future


PUTRAJAYA: The entry of a major Chinese carmaker into Proton Holdings Bhd will not only ease its financial woes, but also bring fresh capacity to the group’s underutilised factories.

Zhejiang Geely Automotive Co Ltd plans to turn Malaysia into its global hub to manufacture all of its right-hand drive cars, including its premium Volvo brand.

Geely will take a leadership role in production, sales and marketing. Proton will be responsible for distribution of the brand in Malaysia.
These were among the highlights mentioned at the signing ceremony in Putrajaya between DRB-Hicom, the parent company of Proton, and Geely.

Proton and Geely yesterday signed an agreement that would see Geely take a 49.9% stake in Proton. Both parties have not finalised the price Geely would pay for the stake.

Through the partnership, Geely executive vice-president and chief financial officer Daniel Li said Geely would focus on assisting Proton to sell 500,000 cars in Malaysia and around the region by 2020.

He said Geely would be contributing technology, talent and money to Proton. These include platform-sharing that would see the development of Proton’s first-ever SUV model from Geely’s best selling model – the Boyue.

DRB-Hicom group managing director Datuk Seri Syed Faisal Albar said in the competitive automotive industry, partnership among carmakers globally was common.

A partnership would also further expand Proton’s reach to other markets and give it better economies of scale.

“This partnership with Geely will create more jobs in Proton,” he told reporters yesterday.

Proton has a workforce of about 10,000 which produces about 100,000 cars a year. In 2016, sales of Proton cars dropped 30% to 72,290 units from 102,174 previously.

The company reported a loss of almost RM1bil last year.

Proton’s Tanjung Malim plant, which is designed to produce a million cars every year, will be made a new manufacturing hub for Geely.

Syed Faisal said Proton would relocate its entire production from Shah Alam to Tanjung Malim within five years.

Despite the entry of a new foreign partner, Proton will maintain its national car status. This means its industrial linkages, including vendors and dealers, will not be affected by the change in shareholding.

Under the heads of agreement signed between DRB-Hicom and Geely, the Chinese carmaker will take a 49.9% equity interest in Proton and also a controlling stake in Lotus, the British sportscar maker, from Proton.

No financial details were disclosed in the sale of a stake in Proton, while for Lotus, Geely would be paying £51mil (RM284mil) for a 51% stake in Lotus.

Syed Faisal said DRB-Hicom planned to sign a definitive agreement with Geely in July.

Also present at the signing ceremony was Second Finance Minister Datuk Seri Johari Abdul Ghani, who clarified that with the partnership with Geely in place, Proton would need to repay its RM1.25bil soft loan from the Government.

As part of the conditions for the soft loan, Proton was required to collaborate with a well-known strategic partner.

The requirement to collaborate with a well-known strategic partner was imposed on Proton as part of the conditions issued by the Government for its approval of the RM1.25bil soft loan to Proton, in which a bulk of the money was used to pay its vendors.

Separately, Johari said Proton was entitled to a RM1.1bil reimbursement from the Government for its RM3.5bil spent on research and development in the past.

Johari also said there would be no more “subsidy” for Proton from now on, and that the Government would no longer have a golden share in Proton with Geely entering into a partnership with the national carmaker.

Source: The Star by intan farhana zainulandizwan idris

‘Geely to help Proton drive into future’

IPOH: The decision by Proton to embark on a partnership with China’s Zheijiang Geely Automotive Co Ltd is timely because cars are predicted to be next in line to undergo sweeping innovations.

International Trade and Industry Minister II Datuk Seri Ong Ka Chuan said that in light of Industrial Revolution 4.0, bringing in Geely as Proton’s strategic partner would ensure the Malaysian company’s survival as cars increasingly adopt digital technology.

Industrial Revolution 4.0, or Industry 4.0, is the current trend of automation and data exchange in manufacturing technologies which include cyber-physical systems, the Internet of Things and cloud computing.

“After attending the Hannover Messe, the world’s biggest trade fair for industrial technology, I learned that self-driving cars are the next big thing.

“This means that you are looking at a future where cars will have no steering wheel.

“With just the touch of a panel, the car will bring you to your destination,” Ong said after witnessing the swearing-in of the new committee of the Perak Chinese Cemeteries Management Association yesterday.

He said Geely would be Proton’s channel to embracing technological innovations.

“I’m not saying to expect Proton to be a frontliner in this, but at least with a strategic partner it can move along with the times,” he added.

He said Geely would also open a new market for Proton, which was important for the national carmaker’s survival.

He said it was not a decision made purely in favour of China.

“Over the years, it’s been no secret that Proton accumulated losses and will need a big market to cater to in order to settle all the debts. This is the reality.

“Proton only narrowly met its sales target of 580,000 units last year, while Chinese brands sold 28 million units,” he said.

In view of its small volume, Ong said it would be difficult for Proton to fund sophisticated research and development initiatives.

“We need a larger market for things to work out. The Industrial Revolution 4.0 is all about innovation. We can’t do it ourselves, which is why working with advanced nations is our best bet,” he added.

The Star by Amanda Yeap

Related links:

Najib: Up to RM1bil losses for Proton if sale to Geely blocked …

RM500 aid for civil servants – Nation

PM: Sovereignty will never be compromised – Nation

No place for sentiment in Proton deal – theSundaily

Related posts:

Proton and a terribly flawed Malaysian Automotive Policy 

America vs China: odds narrowing


Leaders meet: A file picture showing Trump welcoming Xi to the Mar-a-Lago estate in West Palm Beach, Florida during the latter’s visit to the US recently. Xi has a growing economy too behind him, whatever the hiccups. Trump only promises one, without any clarity or logic. – AFP

THE contrast could not be greater. While United States president Donald Trump raves and rants – and belts this or that person – China’s president Xi Jinping looks measured and assured as he offers a global future to the world.

Xi is no angel of course, as his political opponents would know, but his system conserves and protects him, as Trump’s would not. If only Trump were the leader in a centrally controlled political order – but even then his temperament would blow it apart.

Leadership, like politics, is the art of managing the possible. Trump does not understand this, and does not know how. Xi does, knows why, and knows how.

He has a growing economy too behind him, whatever the hiccups. Trump only promises one, without any clarity or logic.

His plan to boost the American economy, based primarily on slashing corporate tax from 35 to 15%, is likely to flounder in an American Congress seriously concerned about its causing the fiscal deficit to balloon.

Already Trump has had to climb down from trying to secure funds from Congress for his dreaded border wall with Mexico in order to avoid budgetary shutdown in September.

The stock market has fallen back from the boost to the price of banks and industrial products following his election. Interest now has returned to what might be termed “American ingenuity stocks” such as Google, Apple and Microsoft on Nasdaq – a proxy for much that is great about America, which Trump’s immigration and closed-door policies threaten to destroy.

Meanwhile Xi has been rolling out his “Belt and Road” plans – something he first envisaged at the end of 2013 – for greater world connectivity and development, committing funds from China and the Asian Infrastructure Investment Bank, and engaging global financial institutions such as the World Bank.

Malaysia, for instance, will be an actual beneficiary with additional projects thrown in. China is Malaysia’s largest trading partner. But the US has not been a laggard, being Malaysia’s fourth largest trading partner. And indeed the US remains the largest foreign investor in Malaysia, both new investments and total stock.

A staggering statistic not often recognised is that total American investment in Asean is more than its investment in China, Japan and India COMBINED!

The point, however, is that this position is being eroded. Trump’s policies are hastening this process. Abandonment of the Trans-Pacific Partnership (TPP) means there is no American strategic peaceful challenge to the Chinese economic juggernaut in Asia-Pacific.

Balance is important to afford choice. Absence of choice means serious exposure to risk. Price, quality and after-service standards are affected, not to mention a new geostrategic economic underlining.

Over-dominance by China in the region is a price not only countries in the region will pay, something that most probably is on Trump’s mind. It is a price that America too will sooner or later have to pay.

China’s Belt and Road proposition is not without its challenges, of course. India is deeply suspicious of the connectivity with Pakistan which cuts across India-claimed Azad Kashmir, about 3000km of it.

The link to the Pakistani port of Gwadar, in southwest Baluchistan on the shores of the Arabian Sea, is seen by India as a Chinese presence at the entrance to the Indian Ocean and a hawk eye on the Indian sub-continent. With the Chinese also in Sri Lanka, India is circumspect on China’s Belt and Road initiative.

There have also been commentaries on some uneconomic linkages which extend right across the English Channel.

All these reservations, however, do not take into account the benefit of connectivity to economies, the time it often takes to get those economic benefits and, most of all, the patience, persistence and long view of history of China and its leaders.

One of the most striking things about the Belt and Road map is that America is not there. Of course, Xi Jinping does not preclude America just as much as the US did not say that China was not permanently excluded from the TPP. And of course, in the Old Silk Routes and shipping lanes, the New World – America – had not been discovered.

But in their revival, led by now rising and then ancient China after 150 years of national humiliation to the present time, there is the irony that the last three quarters of a century of America world dominance is on course to be marginalised, if not supplanted, by the old Eurasian world centred in an ancient civilisation.

Trump does not seem to understand history. The art of the deal is purely transactional. Short-tempered and short-term gratification does not a strategy constitute.

So we have leader, system and economic promise distinguishing the two leaders – and the two countries.

Instead of America first, what we are seeing is Trump hurrying America’s decline relative to a rising China.

We are not seeing a world changed from people wanting to be like a kind of American to being people wanting to be a kind of Chinese. Actually, the Chinese people themselves want to be like a kind of American, with all that wealth, influence and power.

What we are seeing is China – not America – leading the way to that desired, if not always desirable, end. It is China that is driving the next phase in the evolution of world economic development.

Under Xi Jinping, China appears to be heroically moving towards an epochal point in its Peaceful Rise. With Donald Trump, America is being led backwards and inwards, with all the problems of its governance now all coming out. It is in grave danger of losing in the peaceful competition.

Not knowing how to play that game – certainly under its current President – there remains the danger of the status quo power lashing out against the rising one.

The Greek historian Thucydides observed: “It was the rise of Athens and the fear that this instilled in Sparta that made war inevitable.”

A Harvard professor has studied what is now called the Thucydides Trap and found in 12 out of 16 cases in which this occurred in the last 500 years, the outcome was war.

There are many potential flash points against the background of China’s rise – the North Korean Peninsula and the placement of THAAD missiles in the south, the South China Sea – where Trump may temperamentally find cause to lash out. This is the trapdoor he might take the world down because of failure to compete peacefully.

By munir majid – crux The Star

Tan Sri Munir Majid, chairman of Bank Muamalat and visiting senior fellow at LSE Ideas (Centre for International Affairs, Diplomacy and Strategy), is also chairman of CIMB Asean Research Institute.
Related posts:

Illuminated boards
highlighting Xi’s signature One Belt- One Road foreign policy plan in
Beijing. Leaders of 28 countries

Liberty, Equality and Fraternity in the 21st century of China’s One Belt One Road strategy 

 

Xiamen University shaping up to be the largest foreign university campus in Malaysia 

Western dominance on the global stage coming to an end, entering the era of Chinese influence

China’s President Xi Jinping speaking at the World Economic Forum AP https://youtu.be/dOrQOyAPUi4 Western dominance on the global s..

One Belt One Road paving the way to success


In 2013, Chinese President Xi Jinping proposed building the Silk Road Economic Belt and 21st-Century Maritime Silk Road, which became known as the Belt and Road Initiative.

Countries along the Belt and Road have their own resource advantages, and their economies are mutually complementary. This means there is a great potential and space for cooperation.

Connecting facilities is a priority in implementing the initiative. On the basis of respecting each other’s sovereignty and security concerns, countries along the Belt and Road are improving the connectivity of their infrastructure construction plans and technical standard systems, jointly pushing forward the construction of international passageways, and forming an infrastructure network connecting all sub-regions in Asia, and between Asia, Europe and Africa.

At the same time, China and countries along the way are making efforts to promote green and low-carbon infrastructure construction and operation management, taking into full account the impact of climate change on any construction.

With regard to transport infrastructure construction, they are focusing on key passageways, junctions and projects, and giving priority to linking up unconnected road sections, removing transport bottlenecks, advancing road safety facilities and traffic management facilities and equipment, and improving road network connectivity.

Countries along the Belt and Road are building a unified coordination mechanism for whole-course transportation, increasing connectivity in customs clearance, reloading and multimodal transport, and gradually formulating compatible and standard transport rules, in order to facilitate international transport.

China suggests pushing forward port infrastructure construction, building smooth land-water transportation channels, and advancing port cooperation, increasing sea routes and the number of voyages, and enhancing information technology cooperation in maritime logistics. We should expand and build platforms and mechanisms for comprehensive civil aviation cooperation, and quicken our pace in improving aviation infrastructure.

In this episode, we will see how Belt and Road helps close the distance between people around the world.

The Belt and Road:

http://watchthis.chinadaily.com.cn/video/column/belt-and-road/

Related posts:

Illuminated boards highlighting Xi’s signature One Belt- One Road foreign policy plan in Beijing. Leaders of 28 countries

Liberty, Equality and Fraternity in the 21st century of China’s One Belt One Road strategy 

Xiamen University shaping up to be the largest foreign university campus in Malaysia 

Western dominance on the global stage coming to an end, entering the era of Chinese influence

China’s President Xi Jinping speaking at the World Economic Forum AP https://youtu.be/dOrQOyAPUi4 Western dominance on the global s..

 

China ready to move into the trade and world leadership vacuum created by the US 

Crisis of the West or crisis of faith, year of living dangerously

%d bloggers like this: