11/07/2017 Asia Business Report

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Live from Singapore, the essential business news as it breaks and a look ahead to the news that will shape the business day.

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hospital of treating him... The hospital treating him of lying to a


judge. They say they have new proof the child therapy could help him.


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


India's cattle trade, a major decision looms ahead of one that


will affect business and religious communities in India.


And it's venue saw growth, we look at the ambitious plans stretched


across the 7000 miles between China and the UK -- it's the new Silk


Road. Good morning, Asia, hello, world,


glad you could join us for this Tuesday addition of Asia Business


Report. I'm Rico Hizon and we kick off with India were the highest


court there will look at the government's recent decision to ban


the sale of cattle for slaughter through animal markets. Their


leather and beef export industry said the government move violates


the right to free trade. It's a case that could affect the livelihoods of


more than 20 million workers across the meat industry. We have more from


Delhi. India's top court has asked the


government for a detailed response with regards to a law that would ban


the trade of cattle for slaughter. After widespread criticism, Delhi


has clarified the new rolls are in that regulation and not banning the


sale of cattle. It's said it's willing to amend the law after


talking to all stakeholders -- murals. Most of India's beef comes


from water buffalo rather than cows, which are considered wholly by


Hindus. Many states have banned cow slaughter but at the moment there's


no such ban on buffaloes and camels. It would have a massive impact on


meat and leather industries with animal experts worth more than $4


billion, it's the biggest exporter in the world. It employs millions of


people mostly from the Muslim community. The decision is expected


to affect millions of farmers nationwide who use cattle for things


like dairy corruption and ploughing. Farmers generally sell the cattle to


slaughterhouses after they become old or unproductive. Many states are


vehemently opposing the law and they have said they will not implement it


even if it is brought in. The government is expected to give more


details in court on Tuesday. One Silicon Valley start-up has now


reached the shores of mainland China and its hundreds of millions of


customers. Stripe, a digital service that accepts payments over the


Internet, is going against many other companies. They make up 90% of


the mobile wallet market in China. Joining us is the president and


co-founder. How big a game changer is best for your business,


partnering with these companies? Good morning. As you can imagine


this is something we have always wanted to do. STRIPE provides


infrastructure for the online economy, we get businesses to set up


and have the tools to accept payments, if you're online you're


not just addressing a local market, you are serving a global customer


audience and one of the things that often holds you back from trading


globally is payment infrastructure. We are very excited about the news


this week, in an industry first out of the box, they can except all


these payment systems without additional integration work. You


talk about infrastructure, these transactions were mainly done with


China based businesses and there were relatively few Chinese


consumers buying online from overseas because of the lack of


credit cards. Could this be a problem for STRIPE? This is exactly


the problem we are trying to solve, if you look at the history of


Internet commerce, in China, a very large mobile commerce market, over


half of the mobile commerce auctions taking place are in China but in


western countries it is credit card dominant Don Mike -- dominated. We


are trying to fix this so that for Western businesses that we support,


they can now unlock this very large Chinese consumer market. Is the


profitability of STRIPE depending on China's appetite for buying products


from overseas? Yes, I don't think that appetite is in doubt. Chinese


demand for foreign goods is expected to be $150 billion by 2020, we have


seen this pattern growing and we fully expect it to continue. As the


payment infrastructure improves Chinese consumers have more global


options. What is your forecast in terms of transactions over the next


two to five years? It's a little hard for us to say just having


launched this right now, so we are going to be tracking this very


closely over the next few years but there's 4 billion people connected


to the Internet globally, Alipay has 5 billion users and WeChat Pay has


even more so we would be surprised if this wasn't a big driver going


forward. Thanks very much. . The firm is selling more than 90% of


its 13 tourism projects to a Chinese developer for $19.3 billion. Earlier


I asked an expert why wonder is giving up its challenge to Mickey


Mouse. It's sad to hear but this has been a while coming, looking at how


they have performed over the last 12 months, their real estate holdings


haven't done well, they've seen a drop in revenue. At the same time


they have gone without a massive expansion spree overseas and they


are carrying debt on their balance sheets and this will be a way for


them... Why have they accumulated so much debt? They have been


opportunistic as a company, they have seen deals they thought were


good for their brand image and future revenues, but to do that they


have had to borrow a bit of money from major Chinese banks. They've


got $33 billion of debt and that's not sustainable as a business over


the long-term to carry that much. What about the buyer, Chinese


developer Sunap, they are buying the estate for $9.3 billion, why would


they want to buy these properties if the amusement parks aren't


performing well? It's interesting because they are the polar opposite


of WANDA, Sunap has been a residential rather than commercial


developer, they've done well over the last year and expanded into new


cities cities and generated revenue from property sales so now they


looking to move into new segments of the market so for them purchasing


commercial real estate at least on paper makes sense. The that remains


is can they all WANDA manage these properties that generates


significant revenue? -- or WANDA. China's Silk Road was an ancient


trade route that link these to the west and now the Chinese president


is looking to the past to paint the way for the future with a $1


trillion initiative to build infrastructure in more than 60


countries. Carrie Gracie has travelled the 7000 mile route from


the mainland to the UK to assess what it may deliver. She spoke to me


earlier north-west China. This is still very much in its early stages,


it's a huge plan, it is all things to all men and women at the moment


and it's very hard to work out which bits matter and which don't, but as


you know, Rico, the main issue here is China building an almost amount


of infrastructure, roads, rails, ports, airports, pipelines, using up


the excess capacity from its construction companies inside China


and the infrastructure building that's gone on in these China over


the past 20 years or so, bringing that construction effort to China's


neighbours to boost trade at the end of the day, sell more Chinese


exports and create more Chinese influence. What are the challenges


of this initiative and how is this going to be funded? The challenges


are immense and numerous. Different in different places. In many other


places, just beyond me to the West, Central Asia, we have questions of


instability and questions of corruption. Infrastructure projects


are hard to keep clean at the best of times, they unfold over long


periods of time. If you're dealing with non- transparent government in


China and then nontransparent government in its neighbours and


partners, then you have a recipe for potentially Vanotti projects,


projects going wrong and a lot of misallocated resources -- Vanotti.


That something China's commercial partners are worried about and it is


something private business in China is worried about -- that's


something. One of the striking problems President Xi has with this


initiative is in getting his own private sector on board, it's very


much a stake driven initiative at the moment and it's being funded by


China's big state banks. They are talking enormous numbers, the $1


trillion you mentioned, how much of that is going to come through and


whether it's going to come through for projects which are commercially


viable or public goods for their own populations in the long run, that


still remains to be seen. Carrie Gracie on the silk Road route


in north-west China. Thank you so much for investing your time with


us. I'm Rico Hizon. Sport Today is up next.


You're watching BBC News. The Department for Education says pay


rises for teachers in England and Wales will remain capped at 1%, but


the independent body which