25/01/2017 Asia Business Report


Similar Content

Browse content similar to 25/01/2017. Check below for episodes and series from the same categories and more!



Now on BBC News all the latest business news live from Singapore.


Beijing must do more about counterfeiters. A warning from Lego


as its boss in China can't tell the difference between the fake and the


real thing. And the mainland's most famous tech giant Ali Barack Obama


reports strong revenues and looks to soar even higher with the cloud.


Good morning, Asia and hello, world. It's a Wednesday and glad you could


join us for this edition of Asia Business Report. We kick off with


Lego and the Danish owned company has told the BBC that authorities in


China need to do more to tackle fake goods after the man in charge of


Lego's huge new factory in the mainland failed to spot a fake piece


from the real thing. Lego is currently involved in legal action


against one Chinese manufacturer it claims is ripping off its products.


Here's Robin in Shanghai. Billions and billions of these


little plastic bricks have been sold the world over and now Lego is


betting big on China. What started out with hand cut bricks in Denmark


in 1949 is now $100 million state-of-the-art operation near


Shanghai. But they're not the only ones doing it.


Copies like this and fakes or counterfeits are prolific in China.


Lego is currently suing the firm behind this copycat Star Wars model.


So how easy is it to spot the difference? We bought a real one and


a copycat and asked the experts. If you have to ask me to guess I


would say this one maybe. Which one do you think is real? You think this


one is real? You're right! The truth is, they look and feel


almost identical. The copy's so good in fact that even the boss of the


huge new Lego factory can't tell. Have a little look at that for me...


What do you think of that? It looks like a mini figure to me. What do


you think of him, two men? Which one's yours? Just have a guess for


me. I would say this is Lego, this is not. OK, this is Lego. This is


Lego? Bought from Toys "R" Us yesterday. This one isn't real, it's


trying to be Lego is my assessment of it.


Lego's not the only foreign firm investing big in China but having


trouble with local copycats. Land Rovers are now made here. These ones


sell particularly well. But the British firm has been powerless to


stop this. Tucked away on a Shanghai sidestreet, this is a Land Wind, it


is similar on the inside and very similar on the outside but a lot


cheaper. This is our copycat that court people out, you can buy him


and the real thing on the huge online retailer Ali Barack Obama.


They took down thousands of links to copycat Lego products last year


alone but that manufacturer is suing them in the courts because even the


boss can't tell the difference. As Robin mentioned in his report,


Ali Barack Obama has a huge problem with counterfeits being sold on his


site. It was recently reinstated to the blacklist for selling fake goods


but that hasn't stopped it from reporting third-quarter revenues


beating estimates, writing 54% to 58 billion US dollars -- rising. It is


mainly due to cloud and digital mean media ventures and gains in its core


business. We were told why Ali Barack Obama continues to see these


strong earnings. Looking at the three third-quarter earnings, they


have had good results. In November they came out with several


initiatives to drive sales but of course the growth rates aren't as


high as before. They have slowed a bit and that is why they are


focusing on other areas of business like cloud computing and digital


media, looking at international expansion from these areas. Revenue


from cloud business jumped by 150%. Can this be sustained? About I don't


know if it can be sustained with the higher growth rates in China, it


depends on how much it can expand globally. We have seen increasing


demand from consumers and enterprise in cloud computing. But there are


risks, you have them in the US blacklist over counterfeiting and


there's a securities and exchange commission investigation in the US


including accounting practices. Will this create a whole going forward


into the bottom line of the company, will it have a reputational damage?


There is definitely some negative damage that we have seen from this


news but this isn't something new for Alibaba, it's been on the


blacklist four years ago and now they have taken steps to try to


counter this, for example suing sellers for the first time, it is


sending a strong message to consumers and other potential


players that they are doing something about it. Are these


initiatives and measures by Alibaba sufficient? There are still a lot of


fake goods sold on their online marketplace. This isn't going to be


easy but they are addressing this slowly and then they will help them


improve the image to the international audience.


In other business news, the road to Brexit is proving to be a bumpy one


for the UK Prime Minister Theresa May. In a landmark case, the UK


Supreme Court has delivered a ruling against the government on the way in


which the UK is to leave the EU. The highest court in the land says the


Prime Minister must get the authority of Parliament before she


can trigger Article 50. But ministers have insisted there will


be no delay. Japanese exports rising for the first time in December for


more than a year, data shows gaining 5.4% from the previous year, up for


the first time in 15 months and this is mainly due to a pickup in global


demand and the effects of a weaker yen the dollar. US President Trump E


is pressing home his policies by meeting with the heads of the big


three US carmakers. He's urging them to build more vehicles in America


and during a White House meeting with the chief executives of General


Motors, Ford and Fiat Chrysler he promised to make investments more


attractive through cuts in regulations and taxes. He has


criticised some carmakers, warning them about expanding facilities in


Mexico and elsewhere and expecting to import vehicles tariff free. Mr


Trump has invited the Indian Prime Minister Narendra Modi to visit the


White House later this year. They had a phone call on Tuesday but what


else did they discussed? Let's find out from our colleague in Delhi on


how Indians are reacting to the new US President. Schleper, thank you so


much for joining us. So what do they talk about? -- Shilpa. It was a


highly anticipated call, at least in the Indian media here, because


everyone wondered what Mr Trump was going to talk about and apparently


he called Mr Modi a true friend and India a true friend and a partner in


facing challenges around the world and he personally praised Mr Modi


for championing the fight against bureaucracy in India and promoting


the economy but they also resolved to look at challenges in various


parts, like the fence and trade and they discussed security in the


region, both south and Central Asia. So it was a highly anticipated call


here so the media here is covering it non-stop. What are the concerns


of Indians regarding the new US President? This is the thing. During


his campaign he has been largely positive about India but there are


two big concern areas, one is the whole make in America rather than


make in India policy, India has been promoting manufacturers coming here


and making things cheaper and more efficiently, whereas Trump's whole


policy has been make in America so there's a foreign investors will


close up their units and go back home to America. The second big


concern is of course about the visas, the skilled visas, H one B,


as they call them, is crucial for the IT industry in India to do


business with the US and the US accounts for 60% of all IT exports


from India. And Mr Trump has been largely critical about these visas


and the way they are used to promote more migrant workers and taking, as


he says, taking jobs away from Americans. That is a big concern for


the IT industry here, which is already discussing how they can


campaign in the US and how they can really push their cause. All right,


he's one of the first leaders to be invited to the White House this


year. Thank you so much, Shilpa from Delhi.


Let's have a quick look now at the markets and as you can see, most of


them are in positive territory, the Nikkei 225 gaining 1.4%, the Hang


Seng opening up by nope .5% and the all ordinary is in positive


territory by 0.3% because of the positive mood on Wall Street and the


broader S closing at record highs. -- -- 0.5%.


The Chinese government has rejected criticism from President Trump's


administration over the South China Sea,


saying it will be firm in safeguarding its rights


The UN Secretary General has expressed concern over Israel's


Download Subtitles