John's Feed
Jun 19, 2013
via Breakingviews

China milk deal leaves small investors whey-faced

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By John Foley

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

Small shareholders in Chinese companies have a new reason to be whey-faced. Big investors in Hong Kong-listed Yashili have agreed to sell out to Chinese dairy giant Mengniu for HK$3.50 a share – a fifth below the price at which the milk powder maker floated just three years ago.

Jun 14, 2013
via Breakingviews

China’s spiking rates create winners and worriers

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By John Foley

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

China’s biggest banks have thumbed their noses at the government. The Ministry of Finance sold just two-thirds of the 15 billion yuan ($2.5 billion) of bills it offered on June 14, according to Bloomberg. The failed auction is not a vote of no confidence, or a sign that interest rates are too low, but a reflection of reality: banks can get better returns lending to each other.

Jun 10, 2013
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How Huawei can dial down the fear factor

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By John Foley

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

How scary is Huawei? The Chinese telecom equipment maker has met resistance from politicians who fear it could be used as a Trojan horse by the Chinese government. Most recently a group of UK parliamentarians complained the group supplied critical infrastructure without ministers’ knowledge; American and Australian politicians have already blocked Huawei from key contracts. The political tribulations will take years to resolve, but there are ways to dial down the fear.

Jun 10, 2013

Breakingviews -How Huawei can dial down the fear factor

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

By John Foley

BEIJING, June 10 (Reuters Breakingviews) – How scary is
Huawei? The Chinese telecom equipment maker has met resistance
from politicians who fear it could be used as a Trojan horse by
the Chinese government. Most recently a group of UK
parliamentarians complained the group supplied critical
infrastructure without ministers’ knowledge; American and
Australian politicians have already blocked Huawei from key
contracts. The political tribulations will take years to
resolve, but there are ways to dial down the fear.

Jun 6, 2013
via Breakingviews

Obama and Xi should consider Confucian diplomacy

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By John Foley

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

If the emperor fulfils his role by sitting and facing south, Confucius said, all else will fall into place. Presidents Obama and Xi should heed the ancient sage when they meet at a resort in the California desert on June 7. The United States and China have emotive issues to work out. In public, however, harmonious inaction is the best policy.

May 30, 2013
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Double arbitrage validates China’s pork purchase

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By John Foley

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

China has been rearing pigs for at least 6,000 years. Now its biggest pork producer is paying $4.7 billion to import them from the United States. What explains the reversal? It’s not just that richer consumers demand more meat, but that poor decisions by China’s planners have created a double arbitrage.

May 28, 2013
via Breakingviews

Europe rightly throws shade on solar tariffs plan

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By John Foley

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

European opposition to tariffs on Chinese solar panels sounds like turkeys voting for Christmas. After all, China has used cheap state financing to lower the cost of making solar equipment – and European companies like Germany’s Solar World have borne the brunt. Yet the reluctance of most EU member states to back proposals for a punitive tariff is smart. In a world of cross-border supply chains, Europe has too much to lose by pushing the point.

May 24, 2013
via Breakingviews

China-U.S. audit truce wisely avoids big issues

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By John Foley

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

Deng Xiaoping used to say that ideological disputes were best left for future generations to solve. Audit authorities in China and the United States are wisely following the former Chinese leader’s advice. Their compromise on inspecting the audits of Chinese companies listed overseas, a non-binding memorandum announced on May 24, leaves the biggest questions unanswered. That’s exactly as it should be.

May 24, 2013

Breakingviews-Microsoft stages nebulous Chinese comeback

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

By John Foley

BEIJING, May 24 (Reuters Breakingviews) – Microsoft (MSFT.O: Quote, Profile, Research)
is staging a comeback in China. The world’s biggest software
maker hopes to use the twin technological disruptions of cloud
computing and mobile devices to get a second bite of a market
where profit has proved elusive. Yet the financial benefits may
prove no less hard to grasp the second time round.

May 22, 2013
via Breakingviews

Goldman trumps HSBC in financial Chinese chequers

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By John Foley

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

Who’s the smarter investor in China – HSBC or Goldman Sachs? The UK lender’s business in China has grown impressively. But based on their recent sale of stakes in two of China’s biggest financial groups, the Wall Street investment bank has the edge.