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from Breakingviews:

U.S.-backed China tech shows investment curb folly

By Robyn Mak

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

China’s tech companies may be Beijing’s darlings, but they have U.S. dollar funding to thank. The next generation of upstarts look likely to continue the pattern. Foreign currency funds poured $5 billion into venture capital the first half of this year – three times more than local funds raised. The economic benefits these foreign investors bring make the rules keeping them out harder to justify.

New venture capital funds raised almost $7 billion in the first half of this year, up 157 percent from the same period last year, data gatherer Zero2IPO Research estimates. It’s mostly U.S. investors leading this resurgence, accounting for three quarters of the total amount raised. Lucrative exits abroad, such as online retailer JD.com’s recent New York listing, make U.S. dollars the preferred choice for internet upstarts.

Local venture capitalists lack a deep funding pool to match Silicon Valley’s. Individuals and families, who dominate early-stage tech investment in China, make up half of the country’s private equity investors by number but just 1.4 percent by investable capital, according to Zero2IPO. An emerging crop of tech moguls-turned-venture capitalists, like smartphone-maker Xiaomi’s founder Lei Jun, may attract institutional investors, but this will take time.

from Breakingviews:

Yahoo’s Mayer nears post-Alibaba reckoning

By Richard Beales

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

Yahoo is a big company with a much smaller one struggling to get out. A 22.5 percent stake in Alibaba accounts for well over half the U.S. internet group’s roughly $36 billion market capitalization, according to a new Breakingviews calculator. With the Chinese e-commerce giant likely to go public next month, Yahoo Chief Executive Marissa Mayer will find out how investors value the businesses she actually runs.

from Expert Zone:

Afghanistan a building block for China-India ties

(Any opinions expressed here are those of the author and not of Thomson Reuters)

The appointment of a former ambassador to Kabul and New Delhi by China to the role of Special Envoy for Afghanistan highlights China’s thinking of what it can do in Afghanistan.

China is not seeking a leadership role in the country, but is rather looking for regional partners to support its efforts. A key partner is being sought in New Delhi where the Narendra Modi administration has welcomed Xi Jinping’s early overtures for a closer broader relationship. The opportunity presents itself that Afghanistan’s two largest Asian neighbours might be on the cusp of closer cooperation to help the nation onto a more stable footing.

from Breakingviews:

China’s political purges call for financial sequel

By John Foley

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

The formal investigation of China’s former security chief Zhou Yongkang, almost ten months after he was last seen in public, makes compelling viewing. What is needed next is a financial sequel.

from Breakingviews:

China throws weight around on car parts costs

By Ethan Bilby 

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

China’s competition watchdog has forced luxury carmakers into a U-turn. The whiff of a probe into vehicle parts was enough to get Audi and Jaguar Land Rover to reduce their prices, even though neither has been publicly deemed to be abusing its position. Experience shows in China it is better to admit guilt early than risk bigger fines, or lose access to a critical market.

from Breakingviews:

Qualcomm turns from predator to prey in China

By Ethan Bilby

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

Bad news keeps piling on for Qualcomm. Beijing has branded the U.S. chipmaker a monopolist, even as its dominance, which rests on smartphone chips and 3G patents, may be sliding. If that weren’t enough, some Chinese customers aren’t paying their dues. As friction over U.S.-China spying persists, things may only get worse.

from Breakingviews:

China’s old meat is a corporate health warning

By John Foley 

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

Old meat in China’s fast-food chain brings a health warning for foreign companies doing business in the country. After getting fat on rapid growth, some are discovering nasties hidden within their ample folds.

from Photographers' Blog:

Uighurs of Shanghai

Shanghai, China
By Aly Song

The traditional home of China’s Muslim Uighur community is the far western state of Xinjiang, a region that has been plagued by violence in recent years.

The government blames a series of attacks on Islamist militants and Uighur separatists, who it says want to set up an independent state called East Turkestan. But human rights activists say that government policies - including restrictions on Islam - have stirred up the unrest, although the government strongly denies this.

from Breakingviews:

The perks and pitfalls of depending on Jack Ma

By John Foley 

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

Buy a share in Alibaba and you place your trust in Jack Ma. The Chinese e-commerce giant’s founder, executive chairman and spiritual sultan will remain a controlling force even after the company completes its massive initial public offering later this year. The $100 billion-plus question for prospective shareholders is whether they can depend on him to always act in their best interests.

from Ian Bremmer:

World Cup chants reveal true state of U.S.-German relations

 Germany's national soccer players acknowledge their fans after their win over the U.S. at the end of their 2014 World Cup Group G soccer match at the Pernambuco arena in Recife

As Germany basks in its World Cup victory, it’s easy to forget that one of the most telling geopolitical moments of the tournament came during the Germany-U.S. game. As American fans chanted “U-S-A! U-S-A! U-S-A!” the Germans countered with, “N-S-A! N-S-A! N-S-A!”

In the weeks since, relations have crumbled. After it learned that a German intelligence officer allegedly spied for the United States, Germany expelled the CIA station chief in Berlin -- a rare move by a close American ally.

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