11/07/2017 Asia Business Report


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11/07/2017

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

:00:00.:00:00.

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

:00:00.:00:00.

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

:00:00.:00:19.

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

:00:20.:00:25.

will affect business and religious communities in India.

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

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

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Road. Good morning, Asia, hello, world,

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

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

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

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the sale of cattle for slaughter through animal markets. Their

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leather and beef export industry said the government move violates

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

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

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Delhi. India's top court has asked the

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

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

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

:01:31.:01:33.

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

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

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

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

:01:48.:01:52.

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

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

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

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people mostly from the Muslim community. The decision is expected

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to affect millions of farmers nationwide who use cattle for things

:02:12.:02:15.

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

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slaughterhouses after they become old or unproductive. Many states are

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

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

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

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

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

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

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

:03:01.:03:03.

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

:03:04.:03:10.

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

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

:03:17.:03:22.

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

:03:23.:03:26.

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

:03:27.:03:31.

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

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

:03:35.:03:38.

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

:03:39.:03:45.

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

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these payment systems without additional integration work. You

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talk about infrastructure, these transactions were mainly done with

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China based businesses and there were relatively few Chinese

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consumers buying online from overseas because of the lack of

:04:06.:04:09.

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

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

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

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

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

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

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

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

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

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

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

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payment infrastructure improves Chinese consumers have more global

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

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

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

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

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

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

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

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

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

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

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

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

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they have gone without a massive expansion spree overseas and they

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

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

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

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

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

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

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

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

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

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

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of WANDA, Sunap has been a residential rather than commercial

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

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cities cities and generated revenue from property sales so now they

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

:07:38.:07:41.

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

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is can they all WANDA manage these properties that generates

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

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

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

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trillion initiative to build infrastructure in more than 60

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countries. Carrie Gracie has travelled the 7000 mile route from

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

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

:08:21.:08:24.

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

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

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

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

:08:40.:08:44.

the excess capacity from its construction companies inside China

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

:08:48.:08:51.

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

:08:52.:08:56.

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

:08:57.:08:59.

exports and create more Chinese influence. What are the challenges

:09:00.:09:04.

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

:09:05.:09:08.

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

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

:09:18.:09:21.

instability and questions of corruption. Infrastructure projects

:09:22.:09:26.

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

:09:27.:09:30.

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

:09:31.:09:34.

China and then nontransparent government in its neighbours and

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

:09:39.:09:44.

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

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

:09:48.:09:51.

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

:09:52.:09:55.

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

:09:56.:09:59.

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

:10:00.:10:03.

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

:10:04.:10:10.

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

:10:11.:10:14.

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

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

:10:19.:10:24.

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

:10:25.:10:28.

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

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

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

:10:39.:10:42.

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

:10:43.:10:46.

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

:10:47.:10:50.

the independent body which

:10:51.:10:51.