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from Breakingviews:

Hollywood’s hopes in China rest on Youku

By Rob Cox

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Look around the subway in Beijing or Shanghai and maybe nine of 10 passengers are watching videos on their mobile devices. Chances are most of them are watching content delivered to them by Youku Tudou. The country’s leading internet television operator streams 400 million videos a day. In that sense, Youku is Netflix and YouTube - plus Comcast and Liberty Media - stuffed into one dumpling. It is also the nexus for Hollywood’s high hopes in the Middle Kingdom.

You wouldn’t know it from Youku’s financial reports. The company founded by Victor Koo, and run day-to-day by a former student of central planning, Dele Liu, is listed in New York, where it commands a relatively modest $4 billion market cap compared to Netflix’s $26 billion. In the first quarter, it lost $36 million on revenue of $113 million. Still, the company is making progress, enough that China’s sultan of e-commerce, Alibaba, bought 16.5 percent of the group for $1 billion in April.

Youku’s long-term fortunes depend on two things: securing and defending copyright for hit shows, and getting Chinese consumers to pay for the privilege of watching them, something they’ve long resisted. China’s government even seems to be getting on board in the battle to protect the makers of intellectual content from robbery. For this reason alone, Tinseltown should hope the scrappy Chinese company can pull it off.

from Photographers' Blog:

Heshan: a poisonous legacy

Heshan, China

By Jason Lee

Heshan, a village with a population of about 1,500 in China’s Hunan province, is sometimes given the grim label: “cancer village”.

Located some 1,200 kilometers (770 miles) from Beijing it stands in an area rich in realgar, or arsenic disulphide.

from Counterparties:

In Beijing we trust

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China’s credit woes are bubbling up into the news again (previously here and here).

The World Bank’s top economist, Kaushik Basu, is worried about China’s reliance on credit to fuel growth. He said last week that eventually credit will catch up with it: “We’ve seen that in the U.S. in 2008, and China may have to face up to that sometime in the coming year, or couple of years because of its bloated finances.” Back in April, the IMF’s Global Stability Report warned that China was risking a financial crisis if it didn’t rein in borrowing, and that the country should settle for lower growth in order to save itself from credit calamity (the WSJ has a good summary of the report). “Pockets of stress have already begun to emerge, particularly in the trust sector, with spillovers to other parts of the financial system,” the report says.

from Hugo Dixon:

Is Greece losing its reform drive?

By Hugo Dixon

Hugo Dixon is Editor-at-Large, Reuters News. The opinions expressed are his own. 

Is Greece losing its reform drive? Prime Minister Antonis Samaras has stuck to a harsh fitness programme for two years. But just as it is bearing fruit, he has sidelined some reformers in a reshuffle. There is only one viable path to redemption for Athens: stick to the straight and narrow.

from Breakingviews:

Alibaba is case study in U.S.-China legal gulf

By Richard Beales

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Alibaba’s coming U.S. initial public offering will probably value the Chinese e-commerce firm at more than $100 billion. But will shareholders actually own the business? That’s the timely concern raised by a U.S. congressional commission. Lack of clarity in PRC law is mainly to blame.

from Breakingviews:

Review: ‘Leftover Women’ may hinder China’s growth

By Katrina Hamlin

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

Women’s rights have taken a step backwards in China. A new book by Leta Hong Fincher blames that on the ruling Communist Party’s desire for social stability. But China may be depriving itself of an economic opportunity.

from MacroScope:

Of Iraq and Ukraine

Barack Obama’s message that any military support for Iraq’s besieged government is contingent on Prime Minister Nuri al-Maliki taking steps to broaden his Shi'ite-dominated government may be having an impact.

Just hours after Maliki's Shi'ite allies vowed to boycott any cooperation with the biggest Sunni party and his government had accused Sunni neighbour Saudi Arabia of backing "genocide", Maliki broadcast a joint appeal for national unity alongside Sunni critics of his Shi'ite-led government.

from Breakingviews:

China veto is wake-up call for world’s dealmakers

By Ethan Bilby 

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Chinese regulators have sunk their first overseas transaction, killing a container-shipping alliance led by Denmark’s Maersk. The particular national interest made this tie-up especially vulnerable. But there’s a real risk China could torpedo other global deals.

from Breakingviews:

China Macau tolerance won’t last forever

By Rob Cox

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Spreadsheets with astonishing forecasts can only tell so much about China’s economic miracle. The sole path to believing, or at least comprehending, the scale of the country’s development is to see it. And so it is with any attempt to grasp Macau’s transformation from a Portuguese trading outpost to the Middle Kingdom’s gambling and entertainment hub.

from Breakingviews:

Alibaba’s slow unveiling shows good and bad sides

By Peter Thal Larsen

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Alibaba is lifting its veil to reveal both good and bad sides. The e-commerce giant has released more information ahead of its highly anticipated initial public offering. Though some of the disclosures will persuade prospective investors its business is relatively robust, the rapid shift by users to mobile phones is squeezing margins.

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