&w=3840&q=100)
China starts building world's largest hydropower project in Tibet
Commencement of the hydropower project, China's most ambitious since the Three Gorges Dam on the Yangtze, was seized by Chinese markets as proof of economic stimulus, sending stock prices and bond yields higher on Monday.
Made up of five cascade hydropower stations with the capacity to produce 300 billion kilowatt-hours of electricity annually, equal to the amount of electricity consumed by Britain last year, the dam will be located in the lower reaches of the Yarlung Zangbo. A section of the river tumbles 2,000 metres (6,561 feet) in a span of 50km (31 miles), offering huge hydropower potential.
India and Bangladesh have already raised concerns about its possible impact on the millions of people downstream, while NGOs warned of the risk to one of the richest and most diverse environments on the plateau.
Beijing has said the dam will help meet power demand in Tibet and the rest of China without having a major effect on downstream water supplies or the environment. Operations are expected sometime in the 2030s.
China's CSI Construction & Engineering Index jumped as much as 4 per cent to a seven-month high. Power Construction Corporation of China and Arcplus Group PLC surged by their 10 per cent daily limit.
"From an investment perspective, mature hydropower projects offer bond-like dividends," Wang Zhuo, partner of Shanghai Zhuozhu Investment Management said, while cautioning that speculative buying into related stocks would inflate valuations.
The project will drive demand for construction and building materials such as cement and civil explosives, Huatai Securities said in a note to clients.
Shares of Beijing-listed Hunan Wuxin Tunnel Intelligent Equipment Co, which sells tunnel construction equipment, surged 30 per cent. So did shares of Geokang Technologies Co Ltd, which makes intelligent monitoring terminals.
Cement maker Xizang Tianlu Co Ltd and Tibet GaoZheng Explosive Co, producer of civil explosive materials, both jumped their maximum 10 per cent.
BROADER IMPACT
The Chinese premier described the dam as a "project of the century" and said special emphasis "must be placed on ecological conservation to prevent environmental damage," Xinhua said on Saturday.
Government bond yields rose across the board on Monday, with the most-traded 30-year treasury futures falling to five-week lows, as investors interpreted the news as part of China's economic stimulus.
The project, overseen by the newly formed state-owned China Yajiang Group, marks a major boost in public investment to help bolster economic growth as current drivers show signs of faltering.
"Assuming 10 years of construction, the investment/GDP boost could reach 120 billion yuan ($16.7 billion) for a single year," said Citi in a note. "The actual economic benefits could go beyond that."
China has not given an estimate on the number of jobs the project could create.
The Three Gorges, which took almost two decades to complete, generated nearly a million jobs, state media reported, though it displaced at least a similar number of people.
Authorities have not indicated how many people would be displaced by the Yarlung Zangbo project.
The Yarlung Zangbo becomes the Brahmaputra River as it leaves Tibet and flows south into India and finally into Bangladesh. NGOs say the dam will irreversibly harm the Tibetan Plateau and hit millions of people downstream.
The chief minister of Arunachal Pradesh, Pema Khandu, said earlier this year that such a colossal dam barely 50km from the border could dry out 80 per cent of the river passing through the Indian state while potentially inundating downstream areas in Arunachal and neighbouring Assam state.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
19 minutes ago
- Time of India
Economy to grow slower unless more women join workforce: MeitY secretary
Unless more women join the workforce, the pace of economic growth in India will remain slower than it optimally can be, ministry of electronics and information technology (MeitY) secretary S Krishnan said on Thursday. It also won't be possible to realise the government's aim of raising the share of the manufacturing sector in gross domestic product (GDP) to 25 percent, he at an event here, Krishnan argued that for states with an ageing population, such as Tamil Nadu, higher female participation in the labour force will be crucial in order to balance the demand and supply of jobs and worker availability."There has been a preference for women as employees in certain sectors for a long time. In the electronics sector, safety and conditions of work and stay are prime concerns for women employees," Krishnan component manufacturer Foxconn had faced major protests back in 2021 from about 3,000 women employees over unsuitable living conditions, Krishnan reminded. "This drove us, and recently, the state entity (in Tamil Nadu) built accommodations for 20,000 women employees close to the electronics cluster in Chennai under the PM Awas Yojana," he said. Many private investors have stepped in now to create dormitory-style accommodations for female employees in the electronics manufacturing sector as part of shelter funds where corporates can invest in housing, the secretary emergence of factories with up to 40,000 workers has been possible in India due to the large number of women working in them, he female labour force participation rate (FLFPR) in India has risen to 41.7 percent in 2023-24, up from 23.3 percent in 2017-18, according to the Economic Survey 2024-25. However, the figure is much lower considering women as by business services provider Quess Corp and not-for-profit Udaiti Foundation, the event focussed on ways to unlock women's potential in India's fast-growing blue-grey collar economy. Among sectors, information technology (IT) has the second-highest participation rate for women as employees, at 34 percent, an assessment by the Foundation shows. Based on the analysis of annual reports of 115 NSE-listed IT companies, the Foundation's 'Close the Gender Gap' data hub showed that the percentage of women in key managerial positions and board of directors was at 22%.
&w=3840&q=100)
Business Standard
19 minutes ago
- Business Standard
Govt gets ₹16,000 cr investment proposals under electronic component scheme
The government had opened applications for the ₹22,805-crore electronics component manufacturing scheme (ECMS) on May 1 Press Trust of India New Delhi The government is learnt to have attracted investment proposals worth ₹16,000 crore under the Electronics Component Manufacturing Scheme, according to sources. The government had opened applications for the ₹22,805-crore electronics component manufacturing scheme (ECMS) on May 1. "Received proposals worth around ₹16,000 crore under ECMS," an official source said. An industry body also confirmed the development, based on its discussion with government officials and industry players. According to the government source, the approval process has started and shortlisted projects are expected to be announced in September. "The scheme has received a good response from both domestic and foreign companies," the source said. Sources had earlier mentioned that Tata Electronics, Dixon Technologies, and Foxconn were among the big players that have shown interest in the scheme. Recently, Dixon signed separate agreements with Chinese electronic component firms -- Chongqing Yuhai Precision Manufacturing Co Ltd and the Indian arm of Kunshan Q Technology -- for manufacturing and sales of electronic components used in electronic devices like mobile phones and laptops, among others. The scheme aims to address the demand-supply deficit in the electronic component segment. Electronic Industries Association of India (Elcina), the country's oldest industry body of the Indian electronics sector, estimates that the demand-supply deficit for inputs in the electronics segment will increase to $248 billion (about ₹21 lakh crore) by 2030 to cater to projected $ 500 billion electronics production, and it would be met largely by imports in absence of any measure from the government. The major portion of the scheme,₹21,093 crore, is earmarked for sub-assemblies like camera module, multi-layered printed circuit board (PCB), flexible PCB, and passive components that are fixed on the PCB by machines. A total of ₹1,712 crore has been earmarked for making parts used in sub-assemblies and capital goods used in electronics manufacturing. The scheme classifies display module and camera module sub-assembly in category A, while category B products include bare components like non-surface mount devices (non-SMD), multi-layered printed circuit board, lithium-ion cells for digital applications, enclosures for mobile, IT hardware products and related devices. Category C includes components like flexible PCB, SMD passive components. Besides, components used in making items listed under A, B and C categories, as well as capital goods used in electronics manufacturing, have been clubbed under the D category. The government has opened the application window for A, B and C categories initially for three months starting May 1, and for two years for D category items. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
&w=3840&q=100)
First Post
19 minutes ago
- First Post
EU pushes for trade reset as China's Xi urges ‘proper handling' of disputes, strategic choices
At a shortened summit in Beijing, Xi Jinping urged the EU to manage trade frictions and warned against 'building walls', as leaders clashed over tariffs, Ukraine, and industrial overcapacity, but pledged to cooperate on climate action read more Chinese President Xi Jinping shakes hands with European Council President Antonio Costa and European Commission President Ursula von der Leyen at the Great Hall of the People in Beijing, China. Reuters Chinese President Xi Jinping urged top European Union officials on Thursday to 'properly handle differences and frictions' as he criticised Brussels's recent trade actions against Beijing at a tense summit dominated by concerns on trade and the Ukraine war. Expectations were low for the summit in the Chinese capital marking 50 years of diplomatic ties after weeks of escalating tension and wrangling that led to the duration being abruptly halved to a single day at Beijing's request. STORY CONTINUES BELOW THIS AD 'The current challenges facing Europe do not come from China,' Xi told visiting European Commission President Ursula von der Leyen and European Council President Antonio Costa, state news agency Xinhua said. He urged the EU to 'adhere to open cooperation and properly handle differences and frictions', after von der Leyen earlier called for a rebalancing of trade ties with the world's second largest economy, saying relations were at an 'inflection point'. 'Improving competitiveness cannot rely on 'building walls and fortresses',' Xi added, according to Xinhua. ''Decoupling and breaking chains' will only result in isolation.' 'It is hoped that the European side will keep the trade and investment market open and refrain from using restrictive economic and trade tools,' Xi said. EU trade actions in the past year have targeted Chinese exports of electric vehicles among other goods, and its officials have repeatedly complained about Chinese industrial overcapacity. Xi also warned EU leaders to 'make correct strategic choices', in a further veiled criticism of Brussels' recent hawkish stance on China. 'As our cooperation has deepened, so have imbalances,' von der Leyen told Xi during their meeting in Beijing's Great Hall of the People, according to a pool report. STORY CONTINUES BELOW THIS AD 'We have reached an inflection point,' she added, urging China to 'come forward with real solutions'. She was referring to the EU's trade deficit with China, which ballooned to a historic 305.8 billion euros ($360 billion) last year. 'We think increasing market access for European companies in China, limiting the external impact of involution, and reducing export controls are important steps forward,' von der Leyen told Premier Li Qiang later, according to a pool report. She described her meeting with Xi as 'excellent'. The two sides also issued a joint statement on climate, reiterating their commitment to new climate action plans across the whole economy. They will boost cooperation in areas such as energy transition, adaptation, methane emissions management and control, carbon markets and green and low-carbon technologies, the joint statement said. 'Lack of impetus' At the start of US President Donald Trump's second term, both sides had more of a consensus in working together to tackle trade challenges from the United States, said Cui Hongjian, a foreign policy professor at Beijing Foreign Studies University. STORY CONTINUES BELOW THIS AD 'Recently the situation has changed,' Cui said. 'The EU has continued to compromise with the United States, which means that there is currently a lack of impetus for EU-China ties to become closer.' After intense negotiations, the EU is likely to seal a trade deal with the United States for a broad tariff of 15% on its exports, down from 30% threatened by President Donald Trump. On Thursday, Costa said the EU officials discussed 'at length' their expectations for China to discourage Russia in its war against Ukraine. 'We call on China to use its influence on Russia to respect the United Nations charter and to bring an end of its war of aggression,' Costa told Xi earlier. The run-up to the summit saw tit-for-tat trade disputes and hawkish European rhetoric, such as a July 8 accusation by von der Leyen that China was flooding global markets as a result of its overcapacity and 'enabling Russia's war economy'. STORY CONTINUES BELOW THIS AD In a posting on X, however, she struck a more conciliatory tone on Thursday, saying the summit offered an opportunity to 'both advance and rebalance our relationship'. Topics the Europeans were expected to raise in the talks are electric vehicles and China's rare earth export controls that disrupted supply chains worldwide, causing temporary stoppages in European automotive production lines in May. But China's exports of rare earth magnets to the EU surged in June by 245% from May, to stand at 1,364 metric tons, though that was still 35% lower than the year-earlier figure, customs data showed. On Thursday, China's foreign ministry defended the rare earths curbs as being 'in line with international practice', while pledging stronger dialogue and cooperation with relevant countries and regions in the field of export controls.
