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There are flaws in Chinese Economy, says daily

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By NewsGram staff writer shanghai-skyline_economy

Beijing:  The Chinese economy does have its flaws, said a state-run Chinese daily which also added that after decades of speedy growth, the economy is bound to be slow.

An editorial “Hype against economic model unjustified” in the Global Times on Thursday said that the recent disappointing Chinese stock market performance is “unlikely to be perceived as the result of good governance of the Chinese economy. There have been excessive criticisms and complaints, which are understandable”.

It said that “some media outlets were quick to draw the conclusion that the market fall ‘symbolizes a slow-motion denouement of China’s economic and political model’, which has gone too far”.

“The stock market’s sharp fall is like a fever, but foreign media described it as a cancer. If so, the market plunge seven years ago would have ended the China model.”

The editorial said that China has emerged as the world’s second-largest economy, up from third place, and generated GDP worth trillions of dollars. “China’s economic might can be felt in all corners of the globe, especially the Asia-Pacific”.

It admitted: “The economy does have its flaws. The government has been trying to solve these problems, and at the same time society has learned to withstand them.”

“If a stock market index falls, investors now have been prepared for it. And the country’s financial institutions have made contingency plans.”

The editorial went on to say that the Western media has played up the notion that rapid economic growth has become the source of legitimacy of the ruling Party. “They reckon that an economic crisis will lead to national chaos.”

“An economic boom will boost the popularity of any regime. If the Chinese economy crumbles and people are on the edge of starvation, no regime can sustain its rule. But will periodic economic slowdowns and difficulties in adjustment hurt the legality of China’s political system? That’s a delusion,” it added.

The daily noted that after decades of rapid growth, “the economy is bound to slow”.

“This was predicted several years ago. China is facing a severe economic situation. The model of China’s development needs adjustment, and society has a consensus about this. But it is too much to hype against China’s political system.”

It is also added that many countries are facing economic difficulties, and some Western powers have even lost their growth momentum.

“Some Westerners may wish for a collapsed China and hope they can eventually benefit from it, but they forget their countries may be the ones that crash.

“Chinese people should listen to those doomsayers. At least they can remind us that China’s strategic environment is not that favourable. China should avoid its past mistakes and show a firm determination in reforms,” it added.

(with inputs from IANS)

 

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Chinese Behemoth BBK Group Dominates Xiaomi in Smartphone Market

This year, the group has infused another brand called iQOO in the competitive Indian market that will be the first

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Xiaomi
In comparison, Xiaomi grew 5 per cent year-over-year in 2019 driven by expansion in the offline and strong performance of its Redmi Note series. Wikimedia Commons

Chinese behemoth BBK Group, the parent company of OPPO, Vivo, Realme and OnePlus brands, dominated the India smartphone market with 37 per cent share for the full year 2019, compared to 28 per cent of Xiaomi, reveals latest data from Counterpoint Research.

In the fourth quarter of 2019, the BBK Group captured a mammoth 43 per cent share in the India smartphone market while Xiaomi had 27 per cent share.

While Vivo’s market share grew to 16 per cent in the calendar year 2019 from 10 per cent in 2018, realme’s share grew to 10 per cent in 2019 from 3 per cent in 2018, OPPO’s share grew to 9 per cent in 2019 from 8 per cent in 2018. With 29 per cent growth in market share, OnePlus also became one of the fastest growing smartphone brands in India in 2019.

While Realme grew a massive 255 per cent in 2019, Vivo registered 76 per cent growth and OPPO 28 per cent, In comparison, Xiaomi grew 5 per cent year-over-year in 2019 driven by expansion in the offline and strong performance of its Redmi Note series.

“India now has emerged as the biggest market for Xiaomi, surpassing its home market China in 2019. However, the growth rate has declined to single-digit as Xiaomi is now serving a much larger installed base in India,” according to the data.

Vivo’s stunning growth in 2019 was driven by good performance of its budget-segment series. “Also, by successfully pivoting to online and aggressively positioning the S series in the offline segment with new features, it managed to make a dent in Rs 15,000-Rs 20,000 segment,” said Counterpoint.

Overall, in the fourth quarter of 2019, the BBK group captured a mammoth 43 per cent share in the India smartphone market. Interesting here to note is that the BBK Group does not seem to be resting on its laurels.

This year, the group has infused another brand called iQOO in the competitive Indian market that will be the first, 5G-ready premium device in the country and would take on Xiaomi’s new sub-brand POCO.

Xiaomi
In the fourth quarter of 2019, the BBK Group captured a mammoth 43 per cent share in the India smartphone market while Xiaomi had 27 per cent share. Wikimedia Commons

The iQOO brand — which already has six devices in its portfolio in China with the most recent one being the iQOO Neo 855 Racing — would work as a separate legal entity in the country. With this brand, the BBK Group will now have five brands — OnePlus, Vivo, OPPO, Realme and now iQOO — to take on its rivals in India in 2020.

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“We aim to sell 10 lakh iQOO devices next month in India. It will be 100 per cent ‘make in India’ premium device focused on strong performance, design innovation and 5G-ready,” Gagan Arora, Director-Marketing, iQOO India, recently told IANS. (IANS)