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China vs. Rest Of World: Battle For Dominance Continues

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China vs. Rest Of World: Battle For Dominance Continues

The entire world witnessed and became a victim of the deadly coronavirus since the beginning of the year. This was due to the careless actions of one country, China. Globally, as of July 15, 2020, there have been 13.8 million confirmed cases, including 5.9 lakh deaths. The United States of America (U.S.) is the most affected country, with 3.53 million confirmed cases. It cannot be denied when the U.S. officials believe that China ‘covered up’ the outbreak of the virus in December 2019.

As per the report by the Department of Homeland Security, dated May 1, 2020, the Chinese leaders ‘intentionally concealed the severity’ of the pandemic from the world in early January 2020.

China’s undying desire to be best

The fatal pandemic has divided the world’s period as ‘Before Corona’ (B.C.) and ‘After Corona’ (A.C.). The Chinese economy has enjoyed around thirty years of ‘explosive growth’, and there is no doubt that it is not willing to back down. When all economies are suffering, the Chinese economy has started to return to its former splendour.

As per the figures released on July 15, 2020, the world’s second-biggest economy returned to growth during April to June 2020. Experts have mentioned that the figures are way higher than what they were expecting.

During the global pandemic, the Chinese economy has successfully portrayed a ‘V-shaped economy’. A V-shaped economy is one which had experienced a sharp fall in the beginning, but was able to recover quickly. China also avoids getting into a technical recession. Also, the Chinese government has been coming up with measures that aid in boosting its economy, including tax breaks.

Tensed world, except China

China is known for being the frontrunner in trade and economics; its increasing growth is proportional to rising tensions across the globe, wherein it has been and is feeding at the cost of other nations’ power as they are ‘economically weak’. China exploited the situation by ‘tempting’ investments, which were intended to push the other countries into ‘debt traps’. This will enable China to acquire assets strategically and empower its objectives at the least possible cost, and this is mainly governed by the country’s governance model and the role of the Chinese Communist Party (C.C.P.)

Few notable responses of other Countries to China’s financial roar

  • United States of America

The Trump Administration has talked about resorting to Asian countries, other than China, to help produce essential goods. Mr Donald Trump went on to add that the U.S. A would “save $500 billion” if it cuts ties with China. The United States Secretary of State, Mr Mike Pompeo (whose Department announced an Economic Security Strategy in 2019) had named Australia, New Zealand, Japan, India and South Korea as the ‘alternatives’ with whom the U.S.A. has been talking to regarding the supply chains.

On July 13 2020, Mr Mike Pompeo stated China’s chase after resources in the South China Sea as ‘unlawful’. He had further said, “The world will not allow Beijing to treat the South China Sea as its maritime empire.”

  • India

Amid the ongoing India-China dispute, New Delhi has taken the drastic step to get rid of Chinese goods. Despite being dependent, India is trying its level best to come up with similar alternatives and local content, thereby trying to eliminate Chinese hold on the Indian market.

In an interview with The Economic Times, Sameer Raje (Head at Zoom, India) said that he was ‘shocked’ at the resemblance between JioMeet (H.D. video conferencing app by the Indian Telecom, Reliance Jio) and Zoom. The Indian citizens are also with the movement to cut off all relations with the Chinese.

China vs. Rest Of World: Battle For Dominance Continues

Source: Twitter

  • United Kingdom (U.K.)

In 2015, George Osbourne, then Chancellor, had ensured a ‘golden decade’ for Britain-China relations as he assured of new trade opportunities and further investments. Halfway through the so-called decade, the U.K. decides to ban the Chinese telecom giant, Huawei, from supplying 5G network equipments from December 31 2020 and also remove the present Huawei kits from the U.K. networks by 2027. This was all after China had imposed a harsh new security law in Hong Kong.

Liu Xiaoming, the Chinese Ambassador at the U.K., expressed his ‘frustration’ to the situation, which are evident from his tweets:

In addition to the above, China has entered into fights with the following countries:-

Maritime Disputes

Land Disputes
Brunei

Indonesia

Japan

Malaysia

North Korea

The Philippines

Singapore

South Korea

Taiwan

Vietnam

Bhutan

India

Laos

Mongolia

Myanmar

Nepal

Tibet

 

While China is clearly recovering from its inflicted state, the other countries are trying their best to resist the influence of the Chinese in their country’s trade, market and economic activities. Considering China’s ‘broken’ relationships with several countries, it could be difficult for the Chinese to dominate the world market even in the ‘After Corona’ phase.

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How SEBI’s New Margin Rule Is Affecting Retail Traders?

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SEBI Margin Rule | News Aur Chai

Securities and Exchange Board of India has introduced new margin rules for traders. Traders and Brokers are not happy with the new regulations because they will have to invest a large amount of cash in fulfilling margin requirements for trade.

SEBI had introduced the new margin rule in the year 2020 for intraday traders. It is being implemented in a phased manner. Traders were supposed to maintain 25 per cent of the peak margin in the first phase; the margin was raised by 50 per cent in the second phase. In the third phase, as per the new margin rule, intraday traders will have to pay a 100 per cent upfront margin. According to new norms, the margin requirements will be calculated four times during every trading session because the money margin must be greater than the need.

As per the new rule, brokers must collect margin from investors for any purchase or sale, and if they fail to do so, they will have to pay the penalty. Thus, brokers will not receive power of attorney. Brokers cannot use power of attorney for pledging anymore.

Those investors who want to make use of margin will have to create margin pledges separately. As per the new rule, investors will have to pay at least a 30 per cent margin upfront to avail a margin loan. Shares brought today cannot be sold tomorrow. Funds from shares sold today cannot be used for new trades on the same day.

The market experts said that there must be proper adjustments for implementing new rules, or it may create chaos, trouble and disturbance to the market participants. The CEO and founder of Zerodha broking firm, Nithin Kamath tweeted that, “the day when the new rules came into effect was the dreaded day for brokers, exchanges, intraday traders”.

Traders Are Not Happy:

Changes in rules have evoked strong reactions from traders because they will have to invest a large amount of cash in fulfilling margin requirements for trades as per new margin rules. Even the trading in futures and options will become more expensive. Traders are disappointed because they will have to pay up more money to bet in stock markets. As per new margin rules, Traders are also liable for the penalty if the rules are not followed during the trading session. If a trader wants to buy Nifty worth Rs 10 lakh, he will have to pay a 20 per cent margin of around 2 lakh. If the margin of the trader does not meet the need, he will be penalized. Traders will have to pay the minimum amount for opening the Multilateral Trading facility account, and they have to maintain a minor balance at all times.

Why Gas SEBI Introduced A New Margin Rule?

SEBI has introduced new rules to protect retail investors from purchasing difficulty. The intended goal of SEBI behind new margin rules is to bring down the difficult market situation and avoid huge fluctuation in stock markets during extreme stress. The new margin rules are likely to bring transparency to the market; it is expected to strengthen the market’s safety.

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Maya Global Education Society Acquires GIAP Journals

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GIAP MGES Journals | News Aur Chai

Gyandhara International Academic Publications (GIAP Journals), headquarter at Mira Road, Thane, Maharashtra, has been completely acquired by Maya Global Education Society (MGES), Prayagraj, India, with effect from 25th August 2021. Maya Global Education Society is an emerging confluence of academicians to cater to challenges in the educational and research domain in the post-pandemic world. Its headquarter is at Prayagraj, India.

According to our trusted sources value of this acquisition is around 50,000 USD. MGES claimed that their core activity is developing an online research-based education and training system that will reach all parts of the society irrespective of their economic status.

MGES aims to delve into the following activities:
* Training to academicians on tools and systems to improve students’ engagement in an online environment.
* Training to early researchers on research tools, software, and methodology.
* Training to early professionals and graduates to meet the skills demand of Industrial Revolution 4.0 (based on World Economic Forum suggestions).
* Publication of open access research journals and books (Recently acquired GIAP Journals).
* Distribution of scholarly content to Universities and higher education institutions.

GIAP cofounder and CEO Mrs. Rajni told us in an exclusive interview that the journey of GIAP was like a dream come true. It started in 2012 with loans on personal jewelry. After serving in the academic fraternity for the last 9 years, it was a timely decision for all journals and books to grow under the able guidance of pure academicians and researchers.

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Kitex’s Stock Surged 46% In A Week Post Tussle With Kerala Government

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Kitex Vs Pinarayi Vijayan & Kerala Government 2021 | News Aur Chai

The stock of Kitex Garments, the world’s second-largest manufacturer of kids’ garments, based in Kerala, saw a secular uptrend recently, after the company’s announcement that it will relocate to Telangana following a squabble with the Kerala government. The group withdrew a 3,500-crore investment project from Kerala and is planning to move to Telangana with a 1000 crore worth investment project.

Sabu M Jacob, the chairperson and managing director of the Kitex Group, stated his morality forbids him from ever investing a single rupee in Kerala, his native state. The comment brings the confrontation between the Kerala government and the homegrown firm to a close.

What is at the root of the clash?

Kitex has been subjected to repeated inspections by various Kerala government authorities in recent weeks, with group chairperson Sabu Jacob publicly accusing Pinarayi Vijayan’s Left administration of hounding the firm.

The inspections, Jacob said, were intended to “harass” businesses like him and “push him into a corner.” The authorities who came down to examine the firm, he claimed, seemed as though they were on the lookout for thieves and criminals.

P Rajeev, the state’s Industries Minister, emphasized that the government had not conducted any Suo Motu inspections of the firm. While the industries department did not conduct any searches, he said the health and labour agencies did so in response to orders from the Kerala High Court and the National Human Rights Commission based on individual complaints. The accusations are allegedly related to the company’s treatment of employees and the contamination of a nearby river due to wastewater discharge.

A Congress MP and a Congress MLA, and a female employee filed charges against the organization. The charges ranged from polluting a local waterway to harassing employees and violating minimum wage laws.

The Kerala government has denied targeting Kitex on purpose. The inspections were carried out in response to complaints and directives from courts and the state’s human rights commission; according to state industries minister P. Rajeev, he said his government stands for “responsible investment”, and the state would be a hub for such investments in a few years. He added, “The LDF Govt. ensures that sustainable and innovative industries thrive here,”

What was the aftermath of the inspections?

Even though the final findings of the official inspections are still pending, Jacob escalated his feud with the government by announcing that he was cancelling investments worth Rs 3,500 crores that were announced during the ASCEND conference in January 2020. By 2025, the investments were intended at establishing an apparel park and industrial parks along the proposed economic corridor in Kochi, Thiruvananthapuram, and Palakkad, resulting in the creation of thousands of employment opportunities.

Without identifying anyone in the state administration, Jacob said that the state lacked a business-friendly environment. While he did not want to relinquish the intended investments in Kerala, he said he was compelled to do so due to political and bureaucratic persecution. He said that although other states in the country were gradually improving their economic environment, Kerala was still 50 years behind.

Jacob and a few Kitex officials went to Hyderabad last week on a private plane supplied by the Telangana government, where they met with a team led by the state’s Industries Minister, KT Rama Rao. The business revealed intentions to spend Rs 1,000 crore in an apparel park at the Kakatiya Mega Textile Park in Warangal after two days of negotiations.

The political consequences of the experiment

Jacob, the founder of the Kitex Group, is an industrialist who has also dabbled in politics. Jacob launched Twenty 20, a one-of-a-kind political experiment that won seats in panchayat elections in 2015 and then built on that success in the 2020 elections by winning seats in new panchayats.
This corporate-driven panchayat model has resulted in a lot of growth in tiny villages, putting both the Congress and the Communist Party of India in danger (Marxist).

Kerala’s rating in terms of ease of doing business

Kerala ranks worse than many other states and union territories when it comes to the ease of doing business. Based on improvements that states were asked to adopt in 2019, it was placed 28th out of 36 states and UTs in the ease of doing business rankings.

Kerala was judged to have failed to implement some labour reforms, such as single-window clearance and measures to ensure simple information flow and transparency.
Following the Kitex withdrawal, however, several groups that had thrived in the state for years came out openly in favour of the state administration.

RPG Enterprise’s chairperson Harsh Goenka publicly tweeted in support of the administration. He stated, “We are the largest employers in Kerala. We find the local government very supportive,”

Where does the company stand in the share market?

With the decision to invest in Telangana, Kitex’s shares were once again trapped in the upper circuit. On Wednesday, the stock soared almost 10%, reaching a record high of Rs 204.05.

Within a week, the stock price of the children’s clothing company rose by almost 85 percent. The stock price increased from Rs 110.05 to Rs 204.05, reaching its highest level in three years. The company’s market capitalization increased to Rs 1,357 crore from Rs 732 crore as a result of this.

Because it controls 55 percent of the firm, the promoter entity, which includes Kitex Managing Director Sabu Jacob, profited Rs 347 crore. Sabu Jacob’s entire share value increased to Rs 754 crore.

Meanwhile, the BSE pressed Kitex for an explanation for the sharp increase in share prices, which the firm attributed to a Rs 1,000 crore investment plan in Telangana.

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