IN BRIEF (Page 24)

JAC drives ahead with VW tie-up

German carmaker Volkswagen AG is to set up a 50-50 joint venture on new energy vehicles with China's Anhui Jianghuai Automobile Co, according to a nonbinding agreement the two signed in Germany on Sept 7. The two will evaluate the feasibility of a new joint venture to focus on research, manufacturing and sales of new energy vehicles and spare parts, Volkswagen said in an email to China Daily. The time frame is not yet specified but they plan to sign a formal agreement within five months.

Birmingham signs deal with Country Garden

The leader of Britain's second-biggest city, Birmingham, signed an investment deal worth up to $2.7 billion on Sept 6 with a major Chinese development company. The city council said its leader, Councilor John Clancy, has signed a joint statement of investment commitment with Country Garden. It will initially see the Guangdong-based company explore large-scale investment opportunities in the Birmingham region, with particular focus on regeneration and investment options related to the HS2 high-speed rail project.

Brazil's Embraer soars to more share gains

Brazil's Ibovespa equity market index rose as investors piled into local planemaker Embraer SA after it announced orders from Chinese carriers, and amid speculation that supply-chain issues at its biggest rival would benefit the Brazilian group. Embraer advanced for the eighth straight session, putting in the longest winning streak since December 2005, helping push the country's benchmark stock index to a two-year high. The plane maker announced sales agreements with China Colorful Guizhou Airlines and Colorful Yunnan on Sept 2.

Aquacultural deal signed with Mexico

The governments of Mexico and China have signed a nonbinding agreement to collaborate on aquaculture, to deepen technical, scientific and commercial know-how in the field, according to the Mexican Ministry of Agriculture. The agreement was signed during the visit of a Chinese delegation to Mexico. Mario Aguilar Sanchez, the national commissioner for aquaculture and fishing, said this deal would lead to the exchange of personnel and sharing of information on freshwater aquaculture, sanitary standards and conservation of fishery resources.

Chengdu to Istanbul freight express starts

China Railway Express launched a cargo express service from Chengdu, capital of Sichuan province, to Istanbul, on Sept 6. Loaded with 41 containers with mechanical products and general merchandise mainly from Shanghai and Shenzhen, the express train will leave the border through Horgos, Xinjiang Uygur autonomous region, and travel to stations in Aktau, Baku, Poti and Istanbul, according to Chengdu Port and Logistics Office.

Loan finalized for purchase of Syngenta

China National Chemical Corp has secured commitments from lenders on a $12.7 billion loan for its purchase of Swiss pesticides producer Syngenta AG, people familiar with the matter said. The Beijing-based company, known as ChemChina, attracted 17 banks for financing. The facility comprises a $12.5 billion term loan and $200 million ($177 million euros) in revolving credit.

Bayer raises offer for Monsanto again

German pharmaceutical giant Bayer AG says it's increasing its bid for US seed company Monsanto Co. The Leverkusen-based drug and chemicals company said in a statement on Sept 6 it was offering $127.5 per Monsanto share, up from the previous $125 a share offer that had valued Monsanto at around $65 billion. It gave no further details on the takeover bid and said "there can be no assurance that the parties will enter into an agreement". Monsanto has already rejected two offers from Bayer and described a previous offer in July as inadequate.

Yingkou Port mulls European transport bids

Shanghai-listed Yingkou Port Co Ltd is moving to invest in European transportation companies and is determined to seek a bigger share in the China-European Union logistics market. Chairman Li Hezhong said that the company has prepared to invest billions of yuan in bidding for one "key railway terminal" in Europe. But, he declined to reveal specific names of the target companies. Yingkou Port is one of the country's major hubs, linking China and Europe, with six direct international cargo train services opened since the central government launched the Belt and Road Initiative.

Huawei eyes role as supplier for global cloud

Huawei Technologies Co intends to become a major provider of gear and software to global cloud computing providers, aiming for a $10 billion business by 2020. The Chinese company will keep investing in the cloud, its fastest-growing business, as it seeks to supply chips, servers and other equipment to a booming market, said Ken Hu, the rotating chief executive overseeing the fledgling division. Huawei has begun working with foreign firms including SAP SE and Intel Corp to crack the market for cloud services.

Lufthansa, Air China said to finalize venture

Deutsche Lufthansa AG and Air China Ltd plan to finalize a joint venture this month, sealing a deal to share revenue and coordinate routes after more than two years of negotiations, people familiar with the matter said. Lufthansa Chief Executive Officer Carsten Spohr plans to travel to Beijing to attend a signing ceremony scheduled for Sept 20, said one source, who asked not to be identified prior to an announcement. The joint venture is the closest two carriers can get under legal restrictions limiting foreign control of airlines.

Sri Lanka attracts Chinese tourists

China remains the largest tourist source market for Sri Lanka, with more than 27,000 tourists arriving in the island country in August, statistics from the country's Tourism Ministry showed on Sept 7. Nearly 200,000 Chinese tourists arrived in Sri Lanka between January and August, a 32 percent increase from the same period last year. Overall, tourist arrivals to Sri Lanka rose 11.8 percent from a year earlier to 186,288 in August, with total visitors up 16 percent to 1.3 million, according to the ministry.

Latvia eyes increasing milk sales to China

Latvia's major dairy producer Food Union Group said on Sept 6 it plans to further expand milk sales to China. The group plans to export 300 metric tons of milk to China for 3 million euros ($3.375 million), and next year to increase sales to 10 million euros, said the group's CEO Normunds Stanevics. Stanevics said that Food Union had been affected by the Russian food product embargo against the European Union as its sales fell. Therefore, Food Union had focused on the domestic market.

(China Daily Africa Weekly 09/09/2016 page24)