Xiaomi Corp aims to become the largest smartphone vendor in India over the next three to five years, after it sold more than 1 million handsets over just 18 days in the world's fastest-growing handset market. The announcement came shortly after the company's archrival, Huawei Technologies, confirmed that it would start assembling phones in India, and highlights Xiaomi's latest effort to revive declining sales as the Chinese smartphone market - its home turf - approaches saturation. Lei Jun, founder and CEO of Xiaomi, said on Oct 19: "India is an extremely important market in Xiaomi's globalization strategy. It has become our largest market outside the Chinese mainland."

Corn producer to develop diet products

A leading Chinese corn oil producer says it will develop diet products tailor-made for Chinese consumers, after it has completed the acquisition of Canadian diet food company Kerr Investment Holding. Sources at Shenzhen Stock Exchange-listed Xiwang Foodstuffs, based in Shandong province, said the consortium, set up with Chinese investment firm Primavera Capital, will conclude the purchase of Kerr by November. The deal, valued at 4.8 billion yuan ($713 million, 650 million euros, 580 million pounds), was endorsed in a Xiwang shareholders meeting, the sources said.

Boeing to announce location in China

Aircraft manufacturing giant Boeing Co will formally name the location of its first overseas B737 completion center in China by the end of the year, as it expands its industrial footprint in the world's fastest-growing aviation market, the company said on Oct 18. After two years of preparation, Zhoushan, Zhejiang province, sent a plan for the facility to the State Council, Shanghai Securities News reported. Other cities expressing hope to host the new facility with government support include Shenyang, Liaoning province, and Xi'an, Shaanxi province. The center will deliver 100 planes every year" said Ian Chang, vice-president of Boeing Commercial Airplanes, who is responsible for China operations and business development.

Chinese investment in Germany surges

Chinese investment in Germany jumped to $10.8 billion in the first half of this year, nearly twice the total volume of the past decade, a top official at the Ministry of Commerce said. Chinese investors invested $5.9 billion in Germany from 2005 to 2015, said Yi Yang, deputy director of the ministry's Investment Promotion Agency, during the 2016 China-Germany Investment and M A Forum in Kunshan, Jiangsu province. Germany is China's biggest trade partner in Europe. Trade between the two countries exceeded $160 billion last year, accounting for one-third of the total volume between China and the European Union.

COSCO acquires stake in Italian shipper

COSCO Shipping Ports Ltd announced on Oct 18 that its subsidiary has acquired a 40-percent stake in Italy's Vado Holding BV from Maersk Group's APM Terminal for 53 million euros ($58.3 million, 47.5 million pounds). Vado Holding operates the Vado Reefer Terminal in northwest Italy, one of the largest refrigeration facilities in the Mediterranean region, with an annual handling capacity of 300,000 TEUs (20 foot equivalent units) and 600,000 pallets.

VW mainland sales up10.7% in 9 months

Volkswagen AG posted 10.7 percent growth in sales in the Chinese market for the first three quarters of this year, sources with the company said on Oct 17.

The German carmaker's China unit and its two joint ventures in China sold 2.85 million vehicles on the mainland and in Hong Kong, including 131,500 imported vehicles, maintaining the automaker's leading position in the Chinese passenger car market. Jochem Heizmann, head of Volkswagen Group's China business, said the company would expand its product range, especially in SUVs and new energy vehicles, to meet growing customer demand.

UK National Grid picks Chinese bidders

National Grid Plc has selected a consortium of investors that includes Allianz SE and the infrastructure arm of Australian investment bank Macquarie Group Ltd as potential bidders for its UK gas distribution business, people familiar with the matter said. Two separate groups of Chinese investors, including one led by Fosun International and another by China Resources Gas Group, have also been invited to make final bids for the assets by the November deadline, the people said, asking not to be identified as the information was private. A group of investors that included Canada Pension Plan Investment Board and Middle Eastern wealth funds has dropped out, the sources said.

TCL to make major investment in Argentina

Chinese electronics giant TCL Corp plans to invest $100 million in Argentina over the next 12 months, Argentina's government announced. The announcement followed a meeting between Argentine President Mauricio Macri and the CEO of TCL, Li Dongsheng, at the presidential headquarters and residence in Argentina's capital, Buenos Aires. TCL Corp, based in Huizhou, Guangdong province, is one of the largest firms in its field, producing mobile phones, televisions and home appliances, among other consumer goods.

Wal-Mart plans to boost cooperation with JD

Wal-Mart Stores Inc said on Oct 19 in Beijing that it plans to take further steps to deepen its strategic cooperation with JD.com Inc, one of China's leading e-commerce marketplaces, as the world's largest retailer plans to further tap the retail market in China. On Oct 6, Wal-Mart raised its stake in JD from 5.9 percent to 10.8 percent, and it is reported that Wal-Mart has become an observer member of the board of JD. In June, Wal-Mart partnered with JD and received 5 percent stake in JD, and the two planned to partner in several strategic areas.

China Life invests in Starwood hotels

Starwood Capital Group has sold a stake in US hotels, valued at about $2 billion, to China Life Insurance Co, extending a streak of Chinese investments in overseas lodging properties and travel-related businesses. China Life, the country's largest life-insurance company, will be the lead investor in the properties, with sovereign wealth funds and others also owning a piece of the 280 select-service hotels in 40 US states, Starwood said in a statement on Oct 18. The whole portfolio is valued at more than $3 billion, according to Starwood. The Greenwich, Connecticut-based firm, which last year sold New York's luxury Baccarat hotel to another Chinese insurer, will continue to be the asset manager.

More cargo trains expected by 2020

There will be a safe, convenient and efficient system for China-Europe direct cargo trains by 2020, China's top economic planning body said. An estimated 5,000 cargo trains will be running between China and Europe annually by 2020, according to a development plan issued by the National Development and Reform Commission. As a key component of the Belt and Road Initiative, direct cargo trains will connect a growing number of cities in China and Europe. Demand for the service has exploded in recent years, because it offers an economical alternative to slower and riskier sea freight and much costlier air cargo.

( China Daily Africa Weekly 10/21/2016 page24)