Temporary Traffic Control Implemented at Main Channel Tianjin Port, Operations of Import and Export of Dangerous Goods Ceased

Effected by the "8.12" explosion, the Main Channel at Tianjin Port implement temporary traffic control, the operations of import and export of dangerous goods at Tianjin Port will be ceased. At present, the Binhai New Area Government sent commissioners and let them make investigation to all gas station, storage tanks and other explosive materials storage sites.

On August 13, Tianjin Port made an announcement, dock workers could not be able to work, all ships would be suspended. The Main Channel at Tianjin Port would implement temporary traffic control, customs office would be in a state of full of martial law.

According to a logistics company at Tianjin Port, on the morning of August 13, unio International Terminal has resumed operations, the Eurasian International Terminal Port has made recovery job application to the Authority and wait for the Port Authority’s restore job notification. The dock cable is damaged and is being repaired. The company also received the Port Authority’s phone call, the operations of import and export of dangerous goods at Tianjin Port would be ceased.

Tianjin International Trade and Shipping Service Center noticed, at present, Tianjin Customs, inspection and quarantine operations, maritime operations, and the port group temporarily adjusted office location. (www.chinainout.com)

People's Bank of China Announces RMB Depreciates by 1.9%

China's central bank devalued its currency Tuesday in what it said was a one-time move to make rates more market-oriented.

The yuan is allowed to fluctuate 2 percent above or below a central point set daily by the People's Bank of China (PBOC). The PBOC cut the central rate by 1.9 percent as a result of the change that it said would enhance "the market-orientation and benchmark status of central parity."

Beginning Tuesday, the PBOC said the central point would reflect the previous day's closing price "in conjunction with demand and supply condition in the foreign exchange market and exchange rate movement of the major currencies."

A dro in the yuan will make China's exports cheaper overseas. Tuesday's move follows the announcement that July exports were down more than 8 percent from the same time last year. (www.chinainout.com)

Google Restructures itself

[Why] Google restructures
This time Google restructures itself in the final analysis in order to encourage innovation. With Page's words, "We have always thought that over time, companies would become more conformist, content with Conservative, and do some adjustments, but in the technology industry, the revolutionary disruptive innovation continue to push forward to the next great growth areas, you need to get yourself restless to remain linked with the industry. "

For a long time, under the premise of the dominant Internet business, Google has developed a variety of sectors, it seems that these sectors have little relationship to the core business, but also presence high risk, these sectors include pilot-less vehicles, balloons Network Project, blood glucose monitoring contact lenses and other projects. Under the new framework of Alphabet, these businesses will leave from Google, and become independent subsidiaries of Alphabet.

Page wrote in a blog: "Fundamentally, we believe this allows us to have greater management scale, and we therefore can independently run more businesses which are not closely related to the present business."

[Why the new company calls "alphabet"]

Why the new holding company names Alphabet? Page explained, Alphabet is a collection of language letters, and the language is the most important innovation of mankind, and is also the index core of the Google search. Meanwhile, Alpha also means the return of investment, he said they would try to give return to investors.

In fact, the name of the various projects currently operated by Google already covers 26 English letters, in which we are more familiar with the following:

A, Android system;

C, Calico companies in the life sciences;

G, Google;

F, "Google Fiber" project providing fiber-optic broadband access;

L, intelligent health company Life Science;

X, Google X Lab, which is responsible for research and development of forward-looking technology (including autonomous vehicles, high-altitude Internet balloon, unmanned aircraft, etc.);

V, Google venture capital and capital operations;

Y, YouTube.
www.chinainout.com

Emerging market Slowdown Forces Car Companies to Turn into US

Slowing car sales in China and other emerging markets could help customers in the US obtaindiscounts at their local dealership.

BMW says carmakers have reallocated vehicles intended for China and other emergingmarkets to the US, increasing competition and leading to higher incentives.

Friedrich Eichiner, chief financial officer, said: “Competition is increasing in the US. The strongdollar is creating attractive market conditions. Every manufacturer wants a piece of the cake.”

Partly because of weaker pricing in the US and China, BMW’s automotive operating margindipped to 8.4 per cent in the second quarter. Although this was within BMW’s targeted rangeof 8-10 per cent, it missed the consensus forecast of 9.3 per cent and was substantially lowerthan the 10.5 per cent margin achieved by rival Mercedes-Benz in the same period.

In his first earnings update since taking over as chief executive, Harald KruegerreaffirmedBMW’s goal to achieve a pre-tax profit increase of between 5 and 9.9 per cent in 2015.

However, BMW cautioned that the increase would be tempered by fierce competition, risingpersonnel costs, high investments and the normalisation of the Chinese market.

Last year China accounted for 22 per cent of BMW’s sales, but is slowing due to the volatilestock market, a government crackdown on corruption and limits on new vehicle registrations.

BMW’s operating profit declined 3 per cent to 2.5bn in the second quarter, in line withforecasts. (www.chinainout.com)

China and Singapore Establish diplomatic relations for 25 Years, New Cooperation Speeds up

    

China and Singapore have established diplomatic relations for over 25 years since 1990, to take this opportunity, high-level visits will be more closely, which also reflects the tightness of the new partnership. In the next three years, Sino-Singapore relationship will be in the process of upgrading, and should be further pushed f orward again.

To develop western cooperation and advance "one belt one road" together

Foreign minister Wang Yi pointed out that the new opportunity should also include new cooperation exploration.

At present, there is a good basis for cooperation, we have had two government cooperating projects, the Suzhou Industrial Park and Tianjin Eco-city. The Chinese hopes that on the basis for good cooperation, the Singapore could be able to meet the needs for Chinese western development, to accelerate the determination of the third-governmental cooperation project following the Suzhou Industrial Park and the Tianjin Eco-city.

Singapore’s Ambassador to China Luo Jialiang said China and Singapore would have two big cooperation projects in the future, one the updated version of bilateral free trade agreement, the second would be the third inter-government cooperation project.

Singapore’s Deputy Prime Minister Teo Chee Hean said that to promote the success of this project we should have the following features. First, we should be in step with China's western development. Second, the project should be innovative and can open up new areas and models. As China develops very fast, it can develop fast in many areas by virtue of its ability, we have to make the innovation embodied. Third, it should be commercially viable, lending itself to maintain the momentum.

Enhance the level of FTA, start FTA updating talks as soon as possible

Xu Liping from the Chinese Academy of Social Sciences said in an interview, the upgraded version of the talks could involve three main elements, one tariff reduction, the second is to expand the existing cooperation in the field of free trade agreements, the third is to explore new breakthroughs in trade services. "Singapore is well-developed in service sector, whether the two sides can have closer cooperation in the service sector , I think it’s very important." Xu Liping expressed. (www.chinainout.com)

Imported Snack Food Demand Grow by 20%

Chinese Candy and Snacks Expo Organizing Committee recently released that, in recent years, China's annual growth rate of demand for imports of snack foods is between 15% -20%. Besides it forecast that by 2020 China will enter the golden years of the rapid growth of food imports, and that market share will reach $480 billion.

The committee further reports, there are many types of imported snack foods, mainly including puffed food, chocolate, sweets, biscuits, fruit drinks, jelly, coffee, nuts and other two series, totally tens of thousands of varieties, among them, confectionery accounts for about 70% of overall imports, moreover imported snack foods’ average profit margin up to 40% -50%, so in recent years many investors have been attracted to engage in the import snack food business, and many traditional dealers have turned to import food market. (www.chinainout.com)

Foreign FMCG Brands Lose Market Share in China

No matter how much China’s growth might slow or its stocks stumble, the country’s consumers will not stop washing their clothes or eating cup noodles anytime soon.

But multinational makers of fast-moving consumer goods are finding it harder to rely on China to take up the slack for other regions.

Growth in sales of necessities has tumbled, even before the latest market gyrations, which could exacerbate the slowdown, retail analysts say.

With local brands grabbing share for items from toothpaste to fruit juice, multinational consumer companies are finding it harder to compete, especially in lower-tier cities that account for much of the growth in the sector.

Growth in China’s FMCG market by value has slowed from nearly 12 per cent in 2012 to 4.4 per cent in the first quarter of 2015 year on year, according to a report by Bain & Co and Kantar.

FMCG sales volume was flat in 2014 compared with 2013, while average prices rose 5.4 per cent — more than twice the rate of inflation.

“The economic slowdown is the main factor triggering the decline,” says Chen Ke, partner at retail consultancy Kurt Salmon in Shanghai.

Mainland car sales fell in June for the first time in nearly two years, with carmakers also blaming slowing economic growth.

“It’s a different game for FMCG brands in China,” says Bruno Lannes, a partner in Bain’s China consumer products practice. “Without the advantages of volume growth or premium pricing, FMCG companies are seeking new ways to compete.”

Foreign brands lost market share in 2014 for the third year in a row, according to Bain, with local rivals gaining share in 18 of the 26 categories surveyed for the report, including the four largest consumer goods sectors: personal care, homecare, beverages and packaged food.

Domestic brands account for about 70 per cent of the market in those categories, Bain says, adding that what growth did occur in the sector primarily went to local brands. (www.chinainout.com)