Free Newsletters - Space - Defense - Environment - Energy - Solar - Nuclear
..
. Energy News .




TRADE WARS
S. America mulls effect of China slowdown
by Staff Writers
Sao Paulo (UPI) Sep 21, 2012


Sotheby's gains new foothold in China art market
Beijing (AFP) Sept 21, 2012 - Sotheby's is set to become the first international fine art auction house in China after signing a joint venture with a state-owned company, it said Friday.

The deal with Beijing GeHua Art Company, which is subject to government approval, will give Sotheby's a foothold in China where foreign auction houses are normally prevented from operating by law.

Sotheby's opted for the creation of a joint venture in its years-long bid to overcome the legal hurdle.

"China and its growing class of collectors has been the single most attractive growth market for the company, and collectors from this region have become a significant force in our salerooms worldwide," said Sotheby's Asia chief executive Kevin Ching.

The auction house said it would be the controlling share holder in the business.

For centuries the worldwide art market was dominated by a few European auction houses, but a revolution has seen five Chinese houses enter the top ten by revenue, according to a recent report by information specialist Artprice.

A new generation of collectors in Beijing and Shanghai has pushed China to the forefront.

And Chinese artists Zhang Daqian (1899-1983) and Qi Baishi (1864-1957) now hold the top two places in Artprice's global ranking of artists by auction revenue, ahead of Andy Warhol (1928-1987) and Pablo Picasso (1881-1973).

China's slowing growth is causing concern in Latin America but the outlook remains stable, new analytical data indicated.

SinoLatin Capital equity fund said a weakening of Chinese demand for Latin American commodities had caused concern among analysts focused on the East Asian country's short-term prospects.

The correct approach, it said, would be to look at the longer-term prognoses for China's giant economy and its appetite for commodities. SinoLatin has headquarters in Shanghai and offices in Beijing and Lima, Peru.

Brazilian analysts are among economists who have set alarm bells ringing with recent drops in Chinese growth data and forecasts.

SinoLatin Capital Managing Partner Erik Bethel told the fourth annual Latin America China Investors Forum in Shanghai last week "Latin America will continue to be an indispensable commodities supplier for China."

Latin America has what China needs with the world's largest reserves of silver at 49 percent, copper at 44 percent and tin at 33 percent, he said. The region has at least 16 percent of the global oil reserves and the most arable land in the world to provide for the people of China, Bethel said.

SinoLatin Capital, focused on natural resource transactions between China and Latin America, organized the Sept. 11-12 forum.

Bethel said countries such as Brazil, Peru, Chile and Colombia "present some of the best opportunities for Chinese investors due to relatively low inflation, stable governments and a strong growth rate."

Bethel's comments followed market speculation over the slowdown of China's gross domestic product, with 2012 estimates likely to fall below 8 percent.

Bethel dispelled fears of a "China meltdown" as he addressed an audience of 500 invited delegates from Latin America and China.

"The majority of the China analysts in the Western media are focused on the short-term," noted Bethel.

"Will China's (gross domestic product) growth decline by 1 percent or by 2 percent this year? I think people are missing the more important medium and long-term picture.

"The China story is about demographics and urbanization. Despite the short-term expected drop in China's GDP growth rate, the Chinese government has been facilitating the largest wave of human migration in the history of the world."

For the last 20 years, hundreds of millions of people have moved from rural to urban areas, he said. "And there is still a long way to go. China is 50 percent urbanized, therefore there are still 700 million people living in the Chinese countryside!" he added.

China isn't only urbanizing but the country is creating a massive urban middle class, Bethel said. This middle class requires commodities such as copper, oil, and soybeans to keep up with urbanization.

"Take the refrigerator as one proxy -- of many -- for commodity consumption. Urban citizens buy refrigerators, and in less than 20 years, 1 billion more refrigerators will be needed," Bethel said.

"These refrigerators are made out of stainless steel, copper, plastics and aluminum. They run on electricity using copper and aluminum cables, and of course an electric power plant, which in the case of China is coal-fired. Meanwhile, everything inside the refrigerator is a commodity.

"A piece of meat requires animal feed. And animal feed comes from corn, soybeans, and other agro-commodities." Bethel said that refrigerators, cars, apartment buildings, and urban transportation, among others, are going to continue to drive commodity prices.

"China will continue to grow, albeit more slowly than in the past, but it is still going to consume commodities because of urbanization, and this doesn't seem to be slowing down," Bethel said.

Citing links between China and Latin America, he said, "Latin America will continue to be an indispensable commodities supplier for China. More specifically, countries such as Brazil, Peru, Chile and Colombia present some of the best opportunities for Chinese investors due to relatively low inflation, stable governments and a strong growth rate."

Bethel told a Mines and Money Beijing conference in June "Latin America has become the new frontier for China's growing commodity demands."

Chinese investment in Latin America rose by $120 billion in 2011.

SinoLatin Capital recently appointed former UBS banker Gonzalo Waldman, an Argentinian, as its managing director.

.


Related Links
Global Trade News






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News





TRADE WARS
China tightening customs inspections from Japan: firms
Tokyo (AFP) Sept 21, 2012
China is ramping up customs inspections for Japanese products at its ports, firms said on Friday, as a diplomatic row over disputed islands appeared to spill over into multi-billion dollar trade ties. The move comes after Chinese state media threatened economic retribution over Tokyo's nationalisation of the Japanese-controlled Senkaku islands, which Beijing calls Diaoyu. "We've heard fr ... read more


TRADE WARS
Home sweet lab: Computerized house to generate as much energy as it uses

'Smart growth' strategies curb car use, greenhouse gas emissions

China to invest $3.5 bn in Zimbabwe power plant: report

EP passes sulfur fuel, efficiency bills

TRADE WARS
New EU deep-water oil rules advance

World record holder

Canada woos Asia for LNG

Shell wants Greenpeace protest ban or hefty fine

TRADE WARS
Wind power faces tax credit uncertainty

Sufficient wind energy available to meet global demands without damaging climate

Report backs greater role for wind energy

Wind could meet many times world's total power demand by 2030

TRADE WARS
Q.CELLS North America Showcases Latest Innovation at Solar Power International 2012

Hanwha Solar Unveils Product Innovations with Strategic Partners

SolarBridge Technologies Introduces Global Microinverter Platform

Eltek Hits Solar Interoperability Milestone

TRADE WARS
Emirates, Saudis drive for nuclear power

Japan will go nuclear free, PM insists

Japanese power firm to suffer record loss

Quebec shutters sole nuclear plant as Ontario eyes more

TRADE WARS
World's first biofuel jet flight to take off in Canada

Sorghum Eyed as a Southern Bioenergy Crop

EU confirms change in biofuel targets

France reconsiders plans to boost biofuel use

TRADE WARS
Tiangong Orbit Change Signals Likely Date for Shenzhou 10

China Focus: Timeline for China's space research revealed

China eyes next lunar landing as US scales back

China unveils ambitious space projects

TRADE WARS
Emerging powers press rich nations on emissions cuts

New Chinese 'commitments' to tackle spiralling emissions: EU

Effectiveness and impact of climate change mitigation measures unclear

U.S. underestimates costs of carbon pollution and climate change




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement