Starbucks to source coffee from China

Starbucks has set up a joint venture with a Chinese company to buy and process coffee beans in Yunnan province, Chinese state media reported. Starbucks and Ai Ni Group will purchase and export coffee to help supply Starbuck stores around the world, the official Xinhua news agency said, citing Starbucks China President Wang Jinlong. Financial details of the venture were not mentioned in the report.

Starbucks entered the mainland Chinese market when it opened its first retail outlet in Beijing in 1999. Starbucks has plans to increase its number of stores in China from more than 800 today to 1,500 by 2015.

Starbucks is making the right move by developing this joint venture as the Chinese government is encouraging more agricultural development in China. – David Nealis

Australian infrastructure boom due to China and India

David Nealis in booming Shanghai China

Australia is set for an US$115 billion infrastructure boom as the nation adds ports and railways to feed China and India's appetite for coal and iron ore.

The largest exporter of the key steelmaking materials will build enough railroads to stretch from Washington DC to Los Angeles over the next decade, as well as a new port on the Great Barrier Reef coast that will dwarf the world's biggest bulk harbor. The projects will near-double global coal trade and add 57% to the market for seaborne iron ore.

If you are a Bull on the Australian Market then you better hope China and India keep up their rapid growth.

Banking Deals Between China and Taiwan

Will the outcome of this weekend’s presidential election in Taiwan affect banking deals between China and Taiwan? 

David Nealis in Taipei Taiwan

Taiwan recently said it would allow Chinese banks to take up to five percent stake in Taiwanese banks, this isn’t exciting economic news but it is very exciting political news. China and Taiwan signed a trade deal in June 2010 that brought access to investment in China’s banking market but due to its political sensitivity it has been are to implement.  

Two of China’s four largest banks, the Industrial and Commercial Bank of China (ICBC) and the China Construction Bank (CCB) are expected to be the first banks to invest in Taiwanese banks. The other two banks, The Bank of Communication and the Bank of China have been given permission by Taiwanese authorities to upgrade their Taiwan offices to bank branches. The Taiwanese bank Nan Financial is bidding to become the first Taiwanese bank to make a direct investment in mainland Chinese bank, by taking a 20 percent stake in Fujian Haixia Bank this will be the first deal will be the first.

With Taiwan’s economy being export dependent, the global economic slowdown may affect corporate demand for lending on the island, an investment by Chinese banks into the Taiwanese banking sector could help during the downturn of the Taiwanese banking sector.