BUSINESS CHINA DAILY HONG KONG EDITION Wednesday, February 13, 2019 Open global trade remains the way ahead

Senior official calls on nations to ‘inject Trade and Economic Cooperation year,” he said. “Investment in manu­ ed and authoritative public service Many opportunities also came late last month, already warned Chi­ facturing and other real economy products this year, said Han Yong, from the recent trade and economic new strength into the world economy’ nese companies to make better fields had remained fast and irra­ deputy director­general of the min­ talks between China and the US in preparations to avoid investment tional ODI activities had been effec­ istry’s department of outward both Beijing and Washington, By ZHONG NAN reviews of foreign investment, but risks in North America, since the tively curbed.” investment and economic coopera­ which showed signs of moving in [email protected] also had an impact on Chinese busi­ United States and Canada adopted Qian said China’s ODI to econo­ tion. the right direction, and government nesses operating overseas. stricter investment restrictions last mies related to the Belt and Road He said the move aims to help measures to help small and medi­ China has called for an open glob­ “We hope those countries can year. Initiative will witness fast­paced Chinese companies better partici­ um­sized businesses to unclog the al business environment and reiter­ uphold an open and inclusive atti­ Despite confronting certain glob­ growth, while their cooperation will pate in international competi­ lending channels and remove their ated its commitment to further tude, to create an open, transparent al challenges, China’s outbound be increasingly diversified. Member tion. funding pressures, according to the encourage outbound investment and convenient business environ­ direct investment climbed 4.2 per­ countries of the Association of In addition to investing in more executive. from capable domestic companies ment for global investors, including cent year­on­year to $129.83 billion Southeast Asian Nations have great global locations, Honson To, chair­ As China has growing demand in accordance with international Chinese companies, and inject new in 2018, while nonfinancial ODI investment potential in infrastruc­ man of KPMG in the Asia­Pacific for infrastructure such as more market principles and practices, a strength into the world economy,” rose 0.3 percent year­on­year to ture projects, power generation, region and China, said advanced high­speed rail, roads and regional senior commerce official said on he said at a news conference in Bei­ $120.5 billion. engineering contracting and manu­ manufacturing, growing consump­ transportation, To said it is equally Tuesday. jing. “We found encouraging ODI facturing. tion power, urbanization and digital important to increase the supply of Qian Keming, vice­minister of The 2018 Report on Development growth momentum in different The ministry will make continued economy, contributed especially by “new infrastructure”, such as 5G commerce, said the rise of protec­ of China’s Outward Investment, shapes including industrial invest­ efforts to innovate the way of out­ the private sector, will help China networks, cloud computing, the tionism in some countries has not released by the Beijing­based Chi­ ment, equity replacement, joint ven­ bound investment, and provide put its economic growth on a firmer internet of things and AI infra­ only caused tightened security nese Academy of International ture and franchising in the past companies with more timely, target­ footing this year. structure. Dubai turning strategic TECH hub for Chinese investors

By JIANG XUEQING North Africa. It was officially regis­ [email protected] tered at the DIFC in 2015. Last year, the DIFC continued to Chinese banks and investors have deepen its relationship with the Chi­ achieved great success through nese financial system, signing a their entities in Dubai, reaching a memorandum of understanding vast market of opportunities in the with the China Banking Association Middle East, Africa and South Asia. to collaborate on sharing best prac­ The four largest State­owned com­ tices and delivering enhanced servi­ mercial banks in China by assets are ces to their communities. a key driver of the entire banking “Currently, at least three Chinese balance sheet of Dubai International financial institutions are waiting for Financial Centre (DIFC), a financial regulatory approval to come to the hub for the region. DIFC,” Jaffery said. Last year, the size of its collective Over the last few decades, the vol­ balance sheet for banking was esti­ ume and value of Chinese invest­ mated at between $170 billion and ments in the UAE has increased $180 billion. A quarter of that came considerably in line with China’s from China’s “big four” banks, accord­ growing economic influence in the ing to Salmaan Jaffery, the center’s Gulf country. chief business development officer. Official Chinese statistics show Chinese banks have been involved that bilateral trade between the UAE in some of the center’s biggest infra­ and China reached $41 billion in structure projects in the region, 2017. During the same year, Chinese including the Hassyan clean coal visitors to the UAE surged to more project and a 700­megawatt concen­ than 1 million. trated solar power project. Today, China remains Dubai’s big­ “Much like the Belt and Road Initi­ gest trading partner with non­oil ative, Chinese banks take a long­term trade growing steadily in recent years, view. They are here for the long run. while the UAE has become a major That makes a huge difference to cor­ re­export hub for Chinese products in porate and government clients,” said the Middle East and North Africa, Participants arrive for a Huawei product launch in Beijing. REUTERS Jaffery, who added that local resi­ according to Hamad Buamim, presi­ dents had seen Western financial dent and CEO of the Dubai Chamber institutions come and go as their of Commerce and Industry. commitment to emerging markets He said that the Belt and Road Ini­ Huawei in major league of chip buyers fluctuated. tiative, in which the UAE is a strate­ Chinese banks have also demon­ gic partner, as well as China’s rising strated tremendous expertise in middle­income group, joint ventures By FAN FEIFEI $13.7 billion. Xiaomi rose eight market in the fourth quarter of last large infrastructure projects and the and new infrastructure projects are [email protected] notches to 10th place, increasing its year, up 23.3 percent year­on­year. ability to fund such projects. They expected to be key drivers of bilateral semiconductor spending by about It topped the list with a market have a very innovative way of trade and investment. Huawei Technologies Co Ltd $2.7 billion in 2018, a whopping Smartphone share of 29 percent, according to approaching emerging market risks “This massive infrastructure became the world’s third­largest 62.8 percent rise from a year earlier. manufacturers research firm IDC. because they understand emerging project offers plenty of business buyer of semiconductors last year, Samsung Electronics Co Ltd and Oppo ranked in second place, markets better than many other opportunities which UAE businesses with its expenditure on purchasing Apple Inc remained the top two should explore new with its shipment of smartphones Western institutions, he said. can benefit from,” he said. chips witnessing the largest growth semiconductor chip buyers in 2018, business reaching 20.3 million units in the “The Chinese are not outsiders in Trade, construction, infrastructure, among the top five companies, representing 17.9­percent market fourth quarter, accounting for 19.6 the United Arab Emirates but an inte­ tourism, energy, real estate and retail according to a recent report by share, which is a decrease of 1.6 opportunities from percent of the market share, fol­ gral part of the country. Anywhere are among the key sectors in Dubai US­based research firm Gartner percent as compared to last year. technology lowed by Vivo, with a market share from 10 to 15 percent of the popula­ that continue to attract Chinese busi­ Inc. Eight of the top 10 companies in of 18.8 percent. tion come from China. Among 5,000 nesses and investors. Chinese con­ The Chinese tech heavyweight 2017 remained in the top 10 in 2018, accumulation, Apple Inc’s smartphone ship­ Chinese companies in the UAE, 4,000 tractors are well­represented in spent over $21 billion on semicon­ with US memory chip maker product operation ments in the Chinese market plum­ are in Dubai alone,” he said. Dubai’s construction market, while ductor chips last year, accounting Kingston Technology and Xiaomi meted about 20 percent during this Dubai has been selected as the they continue to secure a large share for 4.4 percent of the total world­ replacing South Korea’s LG Elec­ and user period, taking up 11.5 percent of the Middle East headquarters for most of mega projects in the city as it pre­ wide market. It increased its chip tronics and Japan’s Sony, Gartner maintenance.” market share. Weakening demand, Chinese­funded enterprises due to pares to host World Expo 2020. spending by 45.2 percent, jumping said. lengthening replacement times the rapid development of China’s “The shift in economic power from in front of Dell Inc and Lenovo The research firm also said semi­ Wang Xi, a senior analyst of IDC and iPhone’s hefty price contribut­ trade in the Middle East, as well as the West to the East is gaining Group Ltd to the third spot. conductor spending by the top 10 ed to Apple’s decline in China, the boom in investment and project momentum, with China serving as Three other Chinese companies, buyers increased significantly, and chip vendors must allocate a according to IDC. contracting of Chinese energy and one of the main engines of global Lenovo, BBK Electronics Co Ltd their share reached 40.2 percent of majority of their resources to their Wang Xi, a senior analyst of IDC, construction companies, according growth. As a strategic business hub and Xiaomi Corp, ranked in the top the total semiconductor market in top 10 potential customers,” said expressed negative views about the to Bank of China Dubai Branch. and a key trading partner of China 10 semiconductor buyers in 2018, 2018, up from 39.4 percent in 2017. Masatsune Yamaji, senior principal smartphone market environment Taking the countries and regions and other emerging markets, Dubai according to Gartner. This trend is expected to continue. analyst at Gartner. in 2019. “Smartphone manufactur­ associated with the Belt and Road stands to benefit from these trends,” Lenovo spent $17.7 billion pur­ “With the top 10 semiconductor In terms of smartphone sales, ers should explore new business Initiative as the strategic focus of the Buamim said. chasing semiconductors, ranking chip buyers commanding an Huawei shored up its leading posi­ opportunities from technology overseas network of Bank of China “As China, the UAE and other in fifth place, followed by BBK Elec­ increasing share of the market, tion. The company shipped 30 mil­ accumulation, product operation Ltd, the Dubai branch of the fourth­ nations work towards the establish­ tronics, with its expenses rising to technology product marketers at lion smartphones in the domestic and user maintenance,” Wang said. largest commercial lender by assets ment of a New Silk Road, the ground­ in China puts a premium on provid­ work will be laid for a new world ing more direct trading and financial trade order that will usher in a new efits may take some time to materi­ services for China, the UAE, and oth­ era of economic cooperation,” he alize. The Hong Kong stock market er countries in the Middle East and said. Bay Area plan triggers stocks rally is unlikely to rise too much in the near term but, as morale goes up By DAI KAIYI in Hong Kong A shares on the mainland mar­ notching up more than 1 percent. with the impending release of the [email protected] kets surged, with the benchmark 5G concept stocks also did well as Bay Area blueprint, there would be Shanghai Composite Index edging China Tower gained 2.4 percent and stability in the local equity markets. Stock markets on the mainland up 0.68 percent to close at 2,671.89, Yangtze Optical Fibre and Cable At the same time, worries and in Hong Kong were given a and the Shenzhen Component climbed 3.5 percent. shrouding the mainland’s stock boost on Tuesday as investors took Index closing 1.15 percent higher at Linus Yip Sheung­chi — chief markets seem to be dissipating as A heart from the news that the much­ 8,010.07 points. strategist at First Shanghai Securi­ shares remained bullish on Mon­ awaited blueprint for the Guang­ Hong Kong investors responded ties — said the Hong Kong market’s day after trading resumed follow­ dong­Hong Kong­Macao Greater relatively calmly as the Hang Seng flat performance was due to its ing the week­long Spring Festival Bay Area will be unveiled soon. Index put on just 0.1 percent to already high level as the HSI had break despite earlier profit warn­ Chief Executive Carrie Lam close at 28,171 points, while the accumulated some 3,000 points ings from listed companies under Cheng Yuet­ngor said on Tuesday Hang Seng China Enterprises Index since early this year. the ChiNext Index and the Shenz­ the central government is poised to closed up 0.25 percent at 11,044. He said the spotlight has been on hen SME Board Index that had rat­ outline details of the Bay Area’s Bay Area­related stocks were the the Bay Area development plan for tled investors. development plan within days, and star performers, with Kaisa Group, a long time, and any fresh piece of Yip suggested that investors keep that a symposium on the matter will which boasts an abundant land news would certainly lift market an eye on 5G concept shares. Since be held in Hong Kong on Feb 21, to bank in the region, soaring 3.5 per­ sentiment. the outlook remains cloudy, some A picture shows a general view of the Dubai International Financial be attended by senior officials from cent and Shenzhen International Yip noted that since the Bay Area defensive and high­dividend stocks Centre. AFP Macao and Guangdong province. Holdings and Shenzhen Invest both plan is a long­term initiative, its ben­ are also recommended.