how what is happening in china will affect the property rental market
An understanding of what is happening in China politically at this crucial time helps greatly in predicting potential consequences for the Canadian property market with a segment of the western market being influenced by money invested from Asian Sources, and the automotive market mainly located in Ontario as China begins to massively produce cheap vehicles that become exported to our marketplace. It obviously also has larger ramifications worldwide as China’s economy slows from a fallen Eurozone and struggling American economy. How the current leadership is able to manage the transition to the next generation becomes a critical juncture in the endpoint outcome for the Chinese economy. Not only does the next generation of leadership have to continue the economic focus while dealing with landlord deposit claims it will have to deal with a politically disenfranchised military that has grown increasingly large over the past few years, an over- engorged infrastructure development that has been both internal and external in its consumption of funds, the graft and corruption that comes out of a centralized system flush with money and unafraid to spend it, and the demands a society on the brink of a social restructuring will require. Consider the automotive market, property market, banking system, robots versus slave workers, an internationally exchanged renminbi, and everything for China has gone according to plan. Or consider a civil war and things have gone very badly for China with an attempted coup, factories and infrastructure destroyed, and the future direction is uncertain. Or consider a regional resource war with China and various countries trying to stay afloat after a marked economic decline, demographic shifts, and climate change causing social instability in the region. It is not clear whether a wheel could come off the Panda Wagon, or which one. What is clear is that a period of relative instability and marked change is approaching.
China is often mistaken for a somewhat slumbering Panda Bear, but as leadership changes approach for the Chinese Central Committee, a rather angry bear has emerged. Chinese crowds have trashed anything Japanese in their vicinity, cars were destroyed, factories closed and stores demolished. The animosity towards the Japanese being driven by the not so distant memories of harsh Japanese treatment during the occupation with the Second Sino-Japanese war, which included Japanese efforts to try and control vital resources in the region. The battle for control of the disputed islands in the East China Sea, called the Diaoyu by the Chinese and the Senkaku by the Japanese, symbolizes the re-enactment of history for many. The triggering of this outpouring of emotion represents a triggering point for a change process that has begun formally. This process is now being felt informally and dynamically as other political forces are played out.
Most of us have read about the now disgraced Bo Xilai, and the scandal involving his wife and the murder of British businessman Neil Heywood, but few realize the evolution of the power struggle that the events overlie. Neil was involved with the sale of Volvo to the Chinese Zhejiang Geely Holding Group Co., Ltd. (“Geely Holding Group”) with Chinese State Banks financing a deal that was David swallowing Goliath. Eventually financing became a major issue, as Geely reworked details to refinance its loan structure. Bo Xilai had contacts with Geely going back to 2006. The involvement of Chinese state banks could have been a liability for Bo and his group, and may have established a motive for his drive for attempting to grasp a firmer base of power within the Chinese leadership structure. With the pending change of leadership within the Central Committee from the Fourth generation to the Fifth generation, the evolution of China from a focus on militaristic power to economic power would remain, continuing in its current trajectory. The Fourth Generation in their final phase of leadership has gone on an unprecedented buying spree and has purchased the infrastructure they consider essential to continue China on its path towards growth. But this has not been without internal power shifts and attempts to regain control by the disenfranchised military elite. The exclusion of the military from the leadership succession of the current leadership had opened a rift between the military hard liners who were disgruntled both personally and politically. The overly ambitious Bo Xilai had cultivated this dynamic, and this alliance is alleged to have been plotting a coup during the 18th Conference which is only now scheduled for November 8th. What has been clear is that a major purge has gone through the military with numerous retirements, reshuffling of responsibilities, and demotions. Bo now has been expelled from the Communist Party is to face criminal charges while his wife Gu Kailai and henchman former Chongqing police chief Wang Lijun have already been sentenced. Along with a change in the army guarding the 18th Conference to ensure it’s loyalty, the official date has been set, and a gentle calming of the hostilities between China and Japan has begun internally, while the transition towards a reforming communist society has been set in motion. Whether any further attempts are made in the near future to destabilize the leadership’s goals, remain to be seen.
Aug17, 2006, the Awarding Ceremony of the National Auto and Spare Parts Exporting Base was held in Beijing, at which the former Premier Wu Yi and Minister of Commerce, Mr. Bo Xilai were present. And Geely, represented by Chairman Li attended the ceremony and received the Award.
Dec 2 2009 China .org.cn reports that Geely, the Chinese car manufacturer picked as the preferred bidder for Ford Motor’s Volvo unit, is seeking at least $1 billion in loans from Chinese banks to finance its $1.8 billion bid, the banks, including Bank of China, China Construction Bank and Export-Import Bank of China had agreed to extend loans to Zhejiang Geely Holding Group, said the banking sources briefed on the plan. “Money is not a problem for Geely,” said a source. “They definitely have strong support from Chinese banks and there are a number of private equity funds queuing up to invest in Geely.”
2nd August 2010 – Hangzhou, China Geely Holding Group Co., Ltd. (“Geely Holding Group”), one of the fastest-growing car manufacturers in China, today announced it has completed the acquisition of 100 per cent of Volvo Car Corporation (“Volvo Cars”) from Ford Motor Company. Stefan Jacoby becomes chief executive at Volvo August 2010
Mr. Heywood played a role in several business ventures with foreign companies, including Zhejiang Geely Holding Group Co.’s takeover of Volvo.
November 2011 Geely finally began sales operations after much delay with government requirements.
14 November 2011 Neil Heywood dies
15 November 2011 WantChinaTimes reports: Geely, China’s biggest car maker, needed to borrow funds to complete last year’s purchase of Volvo. As it tries to repay them, funding sources are becoming harder to find. Overseas high-interest loans are strangling the operation of Zhejiang-based Geely, a major Chinese automaker, after its acquisition of Swedish carmaker Volvo and the company is having difficulty accessing funding sources, according to a report from a Chinese magazine. Geely Group is a model for private enterprises in China and founder Li Shufu is a shining star among Chinese entrepreneurs, building his auto empire from scratch over 10 years. His career hit its peak with Geely’s acquisition of Volvo.
February 6 2012: Wang visits U.S. consulate in Chengdu, reportedly to seek asylum.
March 2: Xinhua says Wang is under investigation.
March 9: Bo defends himself and his wife, Gu Kailai, at a press conference at the National People’s Congress.
March 15: Bo dismissed as Chongqing party chief.
March 26: Britain asks China to investigate November death of Briton Neil Heywood in Chongqing.
April 10: Bo suspended from Communist Party posts. China says his wife is being investigated for Heywood’s death.
April 17: New York Times reports U.S. officials held Wang so he could be handed to Beijing authorities instead of local police.
July 26: Gu charged with Heywood’s murder.
August 20: Gu given suspended death sentence after confessing to Heywood’s murder.
September 18: Two day trial of Wang for defection and abuse of power ends without him contesting the charges.
September 24th Stefan Jacoby, 54, after having a mild stroke, is handing the reins over to Jan Gurander the chief financial officer, who will serve as the acting chief executive for Volvo.
Sept 26 2012 Fu Qiang is appointed as the new sales head for China
China is often mistaken for a somewhat slumbering Panda Bear, but as leadership changes approach for the Chinese Central Committee, a rather angry bear has emerged. Chinese crowds have trashed anything Japanese in their vicinity, cars were destroyed, factories closed and stores demolished. The animosity towards the Japanese being driven by the not so distant memories of harsh Japanese treatment during the occupation with the Second Sino-Japanese war, which included Japanese efforts to try and control vital resources in the region. The battle for control of the disputed islands in the East China Sea, called the Diaoyu by the Chinese and the Senkaku by the Japanese, symbolizes the re-enactment of history for many. The triggering of this outpouring of emotion represents a triggering point for a change process that has begun formally. This process is now being felt informally and dynamically as other political forces are played out.
Most of us have read about the now disgraced Bo Xilai, and the scandal involving his wife and the murder of British businessman Neil Heywood, but few realize the evolution of the power struggle that the events overlie. Neil was involved with the sale of Volvo to the Chinese Zhejiang Geely Holding Group Co., Ltd. (“Geely Holding Group”) with Chinese State Banks financing a deal that was David swallowing Goliath. Eventually financing became a major issue, as Geely reworked details to refinance its loan structure. Bo Xilai had contacts with Geely going back to 2006. The involvement of Chinese state banks could have been a liability for Bo and his group, and may have established a motive for his drive for attempting to grasp a firmer base of power within the Chinese leadership structure. With the pending change of leadership within the Central Committee from the Fourth generation to the Fifth generation, the evolution of China from a focus on militaristic power to economic power would remain, continuing in its current trajectory. The Fourth Generation in their final phase of leadership has gone on an unprecedented buying spree and has purchased the infrastructure they consider essential to continue China on its path towards growth. But this has not been without internal power shifts and attempts to regain control by the disenfranchised military elite. The exclusion of the military from the leadership succession of the current leadership had opened a rift between the military hard liners who were disgruntled both personally and politically. The overly ambitious Bo Xilai had cultivated this dynamic, and this alliance is alleged to have been plotting a coup during the 18th Conference which is only now scheduled for November 8th. What has been clear is that a major purge has gone through the military with numerous retirements, reshuffling of responsibilities, and demotions. Bo now has been expelled from the Communist Party is to face criminal charges while his wife Gu Kailai and henchman former Chongqing police chief Wang Lijun have already been sentenced. Along with a change in the army guarding the 18th Conference to ensure it’s loyalty, the official date has been set, and a gentle calming of the hostilities between China and Japan has begun internally, while the transition towards a reforming communist society has been set in motion. Whether any further attempts are made in the near future to destabilize the leadership’s goals, remain to be seen.
Aug17, 2006, the Awarding Ceremony of the National Auto and Spare Parts Exporting Base was held in Beijing, at which the former Premier Wu Yi and Minister of Commerce, Mr. Bo Xilai were present. And Geely, represented by Chairman Li attended the ceremony and received the Award.
Dec 2 2009 China .org.cn reports that Geely, the Chinese car manufacturer picked as the preferred bidder for Ford Motor’s Volvo unit, is seeking at least $1 billion in loans from Chinese banks to finance its $1.8 billion bid, the banks, including Bank of China, China Construction Bank and Export-Import Bank of China had agreed to extend loans to Zhejiang Geely Holding Group, said the banking sources briefed on the plan. “Money is not a problem for Geely,” said a source. “They definitely have strong support from Chinese banks and there are a number of private equity funds queuing up to invest in Geely.”
2nd August 2010 – Hangzhou, China Geely Holding Group Co., Ltd. (“Geely Holding Group”), one of the fastest-growing car manufacturers in China, today announced it has completed the acquisition of 100 per cent of Volvo Car Corporation (“Volvo Cars”) from Ford Motor Company. Stefan Jacoby becomes chief executive at Volvo August 2010
Mr. Heywood played a role in several business ventures with foreign companies, including Zhejiang Geely Holding Group Co.’s takeover of Volvo.
November 2011 Geely finally began sales operations after much delay with government requirements.
14 November 2011 Neil Heywood dies
15 November 2011 WantChinaTimes reports: Geely, China’s biggest car maker, needed to borrow funds to complete last year’s purchase of Volvo. As it tries to repay them, funding sources are becoming harder to find. Overseas high-interest loans are strangling the operation of Zhejiang-based Geely, a major Chinese automaker, after its acquisition of Swedish carmaker Volvo and the company is having difficulty accessing funding sources, according to a report from a Chinese magazine. Geely Group is a model for private enterprises in China and founder Li Shufu is a shining star among Chinese entrepreneurs, building his auto empire from scratch over 10 years. His career hit its peak with Geely’s acquisition of Volvo.
February 6 2012: Wang visits U.S. consulate in Chengdu, reportedly to seek asylum.
March 2: Xinhua says Wang is under investigation.
March 9: Bo defends himself and his wife, Gu Kailai, at a press conference at the National People’s Congress.
March 15: Bo dismissed as Chongqing party chief.
March 26: Britain asks China to investigate November death of Briton Neil Heywood in Chongqing.
April 10: Bo suspended from Communist Party posts. China says his wife is being investigated for Heywood’s death.
April 17: New York Times reports U.S. officials held Wang so he could be handed to Beijing authorities instead of local police.
July 26: Gu charged with Heywood’s murder.
August 20: Gu given suspended death sentence after confessing to Heywood’s murder.
September 18: Two day trial of Wang for defection and abuse of power ends without him contesting the charges.
September 24th Stefan Jacoby, 54, after having a mild stroke, is handing the reins over to Jan Gurander the chief financial officer, who will serve as the acting chief executive for Volvo.
Sept 26 2012 Fu Qiang is appointed as the new sales head for China
Comments
Post a Comment