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Now on BBC News all the latest business news live from Singapore. | :00:00. | :00:15. | |
Doing business with China, we will look at Germany's treatise with that | :00:16. | :00:22. | |
world is second largest economy. And the special report on what India's | :00:23. | :00:26. | |
auto industry wants to see from the government's next budget. | :00:27. | :00:33. | |
Welcome to Asia business News. China is Asia's largest economy and | :00:34. | :00:42. | |
Germany is it your's though, perhaps, it is no surprise that | :00:43. | :00:47. | |
business is at the top of the agenda for Angela Merkel's visit to China | :00:48. | :00:51. | |
this week. The delegation includes representatives from some of | :00:52. | :00:55. | |
Germany's leading companies, all looking to secure their fortunes. | :00:56. | :01:01. | |
Our reporter has more. Angela Merkel arrived for her second | :01:02. | :01:07. | |
visit to China, a measure of the week she puts on the relationship. | :01:08. | :01:10. | |
In the south`western city of Chengdu, she toured the Volkswagen | :01:11. | :01:17. | |
factory. 3`D tour is all about trade. China and Germany are the | :01:18. | :01:23. | |
world's champion exporters. China buys machinery and its rising middle | :01:24. | :01:30. | |
class buys German cars. Germany's economy has been kept ticking over | :01:31. | :01:33. | |
by a Chinese orders. Trade is pretty balanced. | :01:34. | :01:41. | |
In the past, Angela Merkel struck a balance between condemning human | :01:42. | :01:50. | |
rights abuses in China but not wanting to earlier nectar leadership | :01:51. | :01:54. | |
too much. It is not clear how strongly she will speak out too much | :01:55. | :02:05. | |
`` alienate the leadership. It is just one province, but with the same | :02:06. | :02:09. | |
population of Germany. That is how important the Chinese market is. | :02:10. | :02:15. | |
German companies tread carefully. They have complained that Chinese | :02:16. | :02:20. | |
companies just copy their ideas. China once glossy, Western consumer | :02:21. | :02:25. | |
goods and the Chinese market is too big for the West to ignore. It is a | :02:26. | :02:38. | |
profitable relationship for both. Angela Merkel began her visit to | :02:39. | :02:44. | |
China, not in Beijing or even Shanghai, not even close. She | :02:45. | :02:50. | |
actually kicked off a trip about 1000 kilometres from either city in | :02:51. | :02:55. | |
Chengdu. Earlier, I spoke to someone from the German chamber of | :02:56. | :03:09. | |
commerce. We have been going on with the go West policy for about one | :03:10. | :03:15. | |
decade and during that time, several new German companies moved into this | :03:16. | :03:18. | |
region. Some were here before but they had quite different time to get | :03:19. | :03:26. | |
into this market in the 1990s. These companies, who are based here now, I | :03:27. | :03:33. | |
getting into a market that is I fire market saturated `` by far. This has | :03:34. | :03:42. | |
become more and more visible to the German side. We, with the Germans | :03:43. | :03:50. | |
Consulates, have provided information over the years we have | :03:51. | :03:55. | |
been here now. It is close to five years. This city is getting more and | :03:56. | :04:01. | |
more into the focus of being a new hub. In spite of the promises that | :04:02. | :04:07. | |
China holds, you heard in the report, concerns about copies and | :04:08. | :04:13. | |
intellectual property with the German intelligence chief warning | :04:14. | :04:19. | |
that more than medium`sized firms were at risk of industrial | :04:20. | :04:25. | |
espionage. How concerned should German companies be by that, | :04:26. | :04:30. | |
particularly in Chengdu? This is not a new concern and the Chinese | :04:31. | :04:36. | |
culture and habit of doing business over the last 30 or 40 years, there | :04:37. | :04:40. | |
is no way to calm down these worries. Of course, from the other | :04:41. | :04:48. | |
point of view, it always depends how and which structure you put up the | :04:49. | :04:53. | |
firm in China. This is why lots of companies still do not move into | :04:54. | :04:57. | |
this region, neither into the western region or others, or they go | :04:58. | :05:05. | |
here with products and not taking out or putting out their key | :05:06. | :05:11. | |
competencies so that they could be copied. | :05:12. | :05:19. | |
Matter is recalling more than 42,000 cars produced in China due to issues | :05:20. | :05:26. | |
over airbags `` Mazda. That company is at the heart of massive recalls. | :05:27. | :05:36. | |
Mazda said the faulty airbag in the front passenger seat may fail to | :05:37. | :05:46. | |
work and even lead to fire. High`level British ministers argue | :05:47. | :05:49. | |
in India this week to meet the country's new Prime Minister. | :05:50. | :05:53. | |
Foreign Secretary William Hague and Mr George Osborne will travel to | :05:54. | :05:58. | |
Mumbai later today for talks with their Indian. The focus will be on | :05:59. | :06:04. | |
strengthening economic ties to link trade between the UK and India. The | :06:05. | :06:10. | |
new Indian government is due to have a busy week because on Thursday it | :06:11. | :06:14. | |
will unveil its first budget after coming to power. Venue finance | :06:15. | :06:21. | |
minister `` the new is expected to announce tax breaks as an incentive | :06:22. | :06:28. | |
for individuals to save more. Our reporter has more. | :06:29. | :06:36. | |
Four hours outside of Mumbai, this is a factory of one of India's | :06:37. | :06:38. | |
Westcarr makers. `` best car makers. However, it is | :06:39. | :06:56. | |
looking to the government. To top its wish list is a simplification of | :06:57. | :07:03. | |
the tax rules. The current taxes we have does not allow us to optimise | :07:04. | :07:07. | |
our other costs and therefore, the current tax system does not allow us | :07:08. | :07:13. | |
to make the right business decision. Once the cars roll off the factory | :07:14. | :07:16. | |
line, independent dealers have to sell them. But, for the last three | :07:17. | :07:24. | |
years, they have been suffering. In the early days, they were as | :07:25. | :07:30. | |
affordable as the two 70 cents a litre. Now it has gone up to over | :07:31. | :07:34. | |
$1. That is the most important factor that affects our business. | :07:35. | :07:44. | |
This man is someone who is a potential customer. Over the last | :07:45. | :07:47. | |
few months, he has been checking out quite a few cars but with banks | :07:48. | :07:52. | |
charging over 10% to borrow money, he hasn't bought one yet. The | :07:53. | :08:01. | |
government was voted to power with a huge mandate and the promise of | :08:02. | :08:05. | |
improving the economy so it is no surprise that expectations are | :08:06. | :08:08. | |
running high as the government prepares to announce its next | :08:09. | :08:13. | |
budget. It aims to please everyone from this business to the man on the | :08:14. | :08:21. | |
street. South East Asia's largest bank hopes | :08:22. | :08:27. | |
to expand, even though its chief executive says uncertainty in the | :08:28. | :08:29. | |
global economy could mean a lower growth or many countries in Asia. | :08:30. | :08:36. | |
Earlier I was told that despite China's slowdown, there are sectors | :08:37. | :08:41. | |
that are seeing headwinds. The property and construction centre is | :08:42. | :08:48. | |
definitely one. Steel, cement, and so on. If you look at the export | :08:49. | :08:55. | |
sector in south China, it is clearly benefiting from Europe's | :08:56. | :09:02. | |
turnaround, so that is doing OK. Some portions of manufacturing are | :09:03. | :09:14. | |
doing OK. So, I do see it. DDS is planning an expansion, to places | :09:15. | :09:21. | |
like Indonesia. What you anticipate from that market? Indonesia has the | :09:22. | :09:26. | |
same advantages that China and India do. A large, young population, and a | :09:27. | :09:33. | |
growing middle class. Indonesia's challenge in the short term is | :09:34. | :09:37. | |
making sure that they can attract enough investment. Savings and | :09:38. | :09:45. | |
investment are critical to Indonesia's economy. In that regard, | :09:46. | :09:50. | |
making sure that the economy is as open and open to business | :09:51. | :09:56. | |
investment. Which of the candidates to you think will be better for your | :09:57. | :10:01. | |
business? I think the markets, as a general theme, would look for | :10:02. | :10:08. | |
somebody who is likely to be less nationalistic and more open. From a | :10:09. | :10:12. | |
market", there is an expectation that the government might be more | :10:13. | :10:19. | |
open to investment ideas. The truth is, the rhetoric in the last month | :10:20. | :10:30. | |
has made it difficult to say. Thank you for watching. | :10:31. | :10:39. | |
You are watching BBC News. The top stories this hour: The Palestinian | :10:40. | :10:45. | |
militant group Hamas says at least six of its fighters have been killed | :10:46. | :10:48. | |
in Israeli air strikes on the Gaza Strip. It follows days of rocket | :10:49. | :10:51. | |
attacks against Israel. US officials have given details of | :10:52. | :10:54. | |
the new security measures they want implemented at some foreign airports | :10:55. | :10:56. | |
which have direct flights to the United | :10:57. | :10:58. |