An Indian journalist once recalled to me how his wife was serenaded by young men in Egypt and Turkey singing Bollywood songs. I myself had the pleasure of watching a film in Jaipur’s Raj Mandir Cinema and I’ve been a convert ever since.
So, I’m pleased to see the industry is making efforts to grow its overseas market. The Middle East is a natural destination. When the Bollywood film Lamhaa was recently banned in parts of the Gulf, the director fretted, saying the Middle East was the film industry’s third largest market.
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Hold on tight. I argued last month that the Middle East was about to be swamped by Chinese steel. There’s growing evidence that the steel is now arriving.
The latest data shows China’s exports to the Middle East continuing to rise sharply. We’ve seen this before — in late-2008, during the midst of the global crisis, China’s exports of steel to the Middle East surged. So, either the Middle East is currently experiencing a mini-consumption boom or, and far more likely, it is being swamped by Chinese steel as the latter’s demand slows.
This Al Hayat article captures Saudi Arabia’s worries. There’s a lot of concern about the government’s difficulty in setting prices in a competitive market.
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Han Ruihui should be working for Egypt’s investment promotion agency. He says in this report, “Egypt has signed free-trade agreements with Europe and the Arab countries. Its geographic location makes shipping to Europe very easy”. And, if that wasn’t enough. “Egypt’s electricity prices are low, labor abundant, and energy and labor costs not high”.
I’m mentioning this because of last week’s reports that the Northwest Suez Industrial Zone is in some trouble owing to disagreement between the Egyptian government and the zone’s Chinese investors (see “One step forward. Two back”).
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Japan who? This week, the media has been full of stories about China overtaking Japan as the world’s second largest economy.
But there’s another equally important story. That was China’s agreement, reported by AI Hayat, to provide financing for an Omani purchase of four giant tankers to carry iron ore from Brazil. And guess who’s manufacturing the tankers? That’s right. It’s also China.
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Websites are statements of intent. They are the modern version of a ground-breaking ceremony. China is especially fond of them, so it’s about time that the country has created a site dedicated to China’s trade with the Middle East.
Launched last week, the site is nicely designed, although there isn’t much content yet. There are the usual figures and official statements, and a few interesting picture galleries. But more interesting is the fact that Ningxia province is one of the site’s major sponsors. (You can find it’s advertisement in the right hand-corner of the site).
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China got old while it grew. The average Chinese is 34-years old. The average Indian is 24-years. It’s a big age-gap. It’s the difference between raising a family or searching for a first job.
It’s also one of the Silk Road’s biggest challenges.
The world’s youth population, aged between 15-24 years, is set to decline by 12 million people from now until 2020, according to United Nations estimates. Europe and the United States will account for most of the decline. But China will also account for its share.
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The West’s bookshelves are already cluttered by souvenirs purchased in Egypt. Now for China.
The overseas edition of the People’s Daily has written about overseas Chinese bringing gifts home to friends. It used to be a no-brainer. Not anymore. In the 1980s, relatives wanted clothes and daily goods. But China has grown wealthy since then. Besides, the article argues, most of this stuff is made in China, even if it’s sold overseas as a local product. I feel for one embarrassed returnee who is told by her brother: “If you can’t find anything else, it’s better not to bring that type of thing anymore”.
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It’s holiday season. I’m off myself to Japan this week. But Saudi Arabia is apparently disappointed that the number of domestic tourists has fallen 35% this year, according to an Al Hayat report. The local tourism authorities are citing several factors, including the high cost of domestic travel. Some entertainment parks, for example, only open their facilities for part of summer, so they have to hike prices to cover costs during that short period.
I’m reminded of a conversation I had with a senior Japanese official a few weeks ago. He was touting the Japanese government’s new economic plan.
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