In the news: Apple delays iPhone 6 release in China, the Premier reassures multinational companies and CNEEC invests big in Serbia

Apple iPhone 6 China release delayed

The Chinese market faces a delay in the release of the iPhone 6 and iPhone 6 Plus, which are set to hit stores in the US and some European and Asian countries on September 19. The Ministry of Industry and Information Technology has not listed the new phones among the devices it approved for sale. But analysts believe a moderate delay won't cause damage to Apple's China sales as the brand and bigger screens are attractive to Chinese consumers for streaming TV shows and playing games. Apple has faced increasing competition from rival Samsung Electronics, as well as rising players Xiaomi and Lenovo.

Source:
The Wall Street Journal

Apple has recently had run-ins with Chinese regulators for its warranty practices and location tracking feature – CCTV labelled the phone-maker a security threat. It has also faced increasing scrutiny from labour conditions among its suppliers. On the other hand, Apple struck a deal with China Mobile, the world's largest mobile carrier, and saw its market share increase. A tech marketing expert said that the iPhone 6 Plus is set to “kill all the big-screen Android devices” and the value tag it carries will be popular among the wealthy – both the iPhone 6 and iPhone 6 Plus are more expensive than the comparable Samsung Galaxy S5. The delayed release in the Chinese market is expected to significantly open up a grey market (typically Hong Kong) through which mainland customers will purchase the phones. The new product will only push Apple further under the eyes of regulators and how they manage this amid the competition crackdown will be interesting to follow.

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Premier Li Keqiang reassures foreign companies

The Chinese Premier announced at the World Economic Forum in Tianjin this week that the government will attract more imports, punish IP violators and treat foreign and domestic companies equally. Executives from companies such as Qualcomm and Marriott attended the event. A series of anti-monopoly investigations into multinational companies and state news' criticisms of foreign brands drew concern from around the world as these companies felt they were facing unjust regulatory pressure. Premier Li said that only 10% of anti-monopoly probes targeted foreign firms and that policy efforts will continue to draw overseas expertise and investment.

Source:
Bloomberg

The American Chamber of Commerce in China called the increased anti-monopoly enforcement “selective and subjective” and the EU Chamber of Commerce reported receiving alarming anecdotes over PRC regulators' intimidation tactics. The crackdown has heightened challenges for foreign companies in various industries (especially high tech and auto) operating in the country. Qualcomm faces an NDRC probe over its licensing business and Microsoft, Daimler, BMW and Audi are also among the many companies being targeted. Are domestic companies also facing the same pressure tactics from regulators?

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CNEEC plans US$1.2 billion Serbia investment

China National Electric Engineering has announced to invest US$1.2 billion in Serbia and create 15,000 jobs. This would be the country's second largest FDI inflow from a single source. The investment comprises an industrial park, a power plant upgrade and three companies facing closure. ZTE will also explore possibilities of developing a 4G network in the country.

Source:
Bloomberg

The Serbian government has turned to Russia and China for business ties and funding despite plans to join the EU by 2019. It has looked to Chinese SOEs to improve infrastructure, create jobs and consolidate public finances, all to kick-start an economy that is on its way to a third recession in five years. The largest Chinese ventures in Serbia have been a US$260 million bridge in Belgrade, two US$334 million highways in the western part of the country and a US$716 expansion of the Kostolac power plant and lignite mine. All loans were financed by Export-Import Bank of China.

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