Chinese tycoons, keen to fulfill President Xi Jinping’s ambition to turn China into a soccer superpower, have invested more than $2 billion in European football clubs since the start of last year, reports Ben Bland in the Financial Times. Among the European teams in which Chinese groups have acquired or invested: Italy’s AC Milan and Inter Milan, England’s Manchester City and Aston Villa, Spain’s Atletico Madrid and Espanol. Many of these investments may pay off. But the article stresses that there is a big difference between the “first division” acquirers such as Wang Jianlin’s Dalian Wanda Group or Fosun International, which have deep pockets and well-developed sports marketing and media strategies, and “second division” investors, for whom there are unlikely to be many synergies. It will be interesting to see if Xi and the Party can will China into global dominance in this sport, which received relatively little state support before Xi came to power. The mixed results achieved by China’s state-led sports machine at the Rio summer Olympic games suggest global victory in soccer could prove a tricky goal.
Here’s what else we’re reading this weekend…. Continue reading “China as soccer superpower?”
An extraordinary coalition of business federations from the United States, Europe and Japan teamed up this week to send Beijing a message: back off of proposed cyber-security regulations that would force foreign firms to store data in China and surrender information and technology to Chinese security inspectors.
The business groups, which included the US Chamber of Commerce, BusinessEurope and Japan’s Keidanren, decried the new rules in a letter sent to Chinese premier Li Keqiang. Other signatories included more than 40 global industry groups representing financial services, technology and manufacturing sectors, and business lobbies from Australia, Mexico and Switzerland.
The petition was a response to draft regulations, announced by the China Insurance Regulatory Commission last month, requiring foreign insurers to use Chinese hardware and software to store and encrypt data. But global firms also are fuming over new banking regulations that would require them to hand over key technologies such as source codes and encryption algorithms to the Chinese government. (Beijing has delayed implementing those rules after protest from Washington.)
China insists it needs tighter controls on cyber-security and the Internet to guard against terrorism. Global companies aren’t buying it. The letter casts the regulations as thinly disguised protectionism and warns they will further isolate China from the global digital economy. The new provisions would “have no additional security benefits but would impede economic growth and create barriers to entry for both foreign and Chinese companies,” the letter declares. Continue reading “Beijing’s cyber-protectionism”
China’s has been making waves this week, and not just in the swimming pools of Rio.
Over the weekend, the Japanese government charged China with stirring up trouble in the East China Sea by dispatching more than 200 fishing boats into waters near islands Japan occupies but both countries claim.
On Monday, the New York Times published a series of photos collected and analyzed by the Center for Strategic Studies that appears to show China has built reinforced aircraft hangars on the three reefs it controls in disputed waters in the South China Sea. CSIS analysts say the hangars are large enough to accommodate military aircraft–bombers, refueling tankers and transport planes–which would seem to contradict Chinese president Xi Jinping’s September promise to President Obama that “China does not intend to pursue militarization” of the islets. Continue reading “Choppy water”