By Geoff Dyer, David Pilling and Henny Sender
Published: January 17 2011
Anil Ambani was in ebullient mood last October when he arrived at a luxury hotel in Shanghai to sign one of the biggest business deals of the year. The Indian billionaire’s Reliance Power had just agreed to purchase $10bn of power generation equipment from the state-owned Shanghai Electric.“It is the largest order in the history of the power sector,” proclaimed Mr Ambani, “and the largest single business relationship between India and China.”
The size of the deal was not its only notable aspect. Shanghai Electric was offering its equipment at about 30-40 per cent below the cost of an equivalent turbine from General Electric of the US. With the generous financing deal offered by China Development Bank and a group of other Chinese banks, the discount was in fact closer to 60 per cent.
Welcome to a new era of globalisation, China-style. As the financial crisis recedes, one of the big fears is that the process of increasingly closer links among big economies worldwide will go into reverse as governments and countries look inward. The message coming from the world’s second-largest economy for the past year has been clear: China wants to accelerate the integration of the global economy, but on its own terms. Full Story – www.ft.com…
Ewen MacAskill in Washington
Hu Jintao due in Washington for start of four-day visit including first US state dinner for a Chinese leader in 13 years.
The White House is to throw a lavish reception for the Chinese leader, Hu Jintao, on Wednesday in an effort to patch up relations after a difficult year dominated by tensions over currency rates, jobs, North Korea and other international issues.
President Hu is due in Washington tomorrow for the start of a four-day visit, the highlight of which is to be a state dinner at the White House on Wednesday evening.Full Story www.UK.Guardian…