Author Archives: GovWorldMag

Today’s announcement confirms that the Tories have been taking people for a ride – Andy McDonald

Andy McDonald MP, Labour’s Shadow Transport Secretary, commenting on the Government’s scrapping of plans to electrify the Great Western Mainline between Cardiff and Swansea, said:

“The Tories have been promising the electrification of the Great Western Mainline from Paddington to Swansea since 2012 and today’s announcement confirms that they have been taking people for a ride.

“The cancellation of works means passengers will be denied the faster, greener, more reliable train journeys they were promised, and South Wales will miss out on the economic activity that improved rail services deliver.

“The decision betrays a promise to South Wales and the Transport Secretary sneaking out the news on the final day before he goes on his summer holidays adds insult to injury.

“The Tories do not act in the interests of the whole UK. They have put their own survival, finding £1 billion for a deal with the DUP, ahead of everything else and it’s communities like those in South Wales that pay the price.”

UK Retail sales rise

The volume of retail sales was up 0.9% in June. We now know that in the first year post the Brexit vote retail sales increased by 2.9% in volume, confounding pessimistic forecasts. The value of these sales rose by 5.7%, with petrol prices the most buo… read more

July 20, 2017 GovWorldMagJohn Redwood MPJohn Redwood • opinions

China’s insurance premium up by 27.5% in 2016

China’s insurance premium income reached 3.09 trillion yuan (US$457 billion) in 2016, overtaking Japan and the UK to become the second largest market after the U.S., according to the 2016-2017 Insurance Industry Risk Management Report, released by EY, a global service firm and one of the “Big Four” accounting firms, in Beijing on July 18.

The insurance revenue witnessed a year-on-year increase of 27.5 percent and accounted for nearly half of the world’s total.

The EY report said life insurance was the main driver of growth.

The premium income of life insurance companies climbed 31.72 percent to hit 1.74 trillion yuan (US$257 billion), largely due to people increasingly preparing for old age.

In addition, China’s health insurance market has also witnessed fast growth in the lastfour years, up 67.71 percent to over 404.2 billion yuan (US$59.7 billion) in 2016, an indication of people’s enhanced awareness of heath guarantees and an increased number ofdiversified insurance products, said the report.

The report also analyzed the challenges and risks the insurance companies face including disruption from stricter supervision, a slowing economy which may not grow enough to significantly boost insurance sales and higher financial market risk.

July 20, 2017 GovWorldMagEast AsiaChina

China police crack cases of illegal firearms manufacturing, trade

The police have discovered more than 3,800 cases related to the sale and manufacturing of illegal firearms since August 2016, said the Ministry of Public Security. A total of 25,000 suspects have been questioned, with 192 firearms workshops dismantled… read more

July 20, 2017 GovWorldMagEast AsiaChina

Why haven’t more UK businesses been able or willing to build long term businesses in France or Germany?

The single market was meant to promote good long term investment both ways across the Channel. The weakest type of business arrangement is an agreement to buy their exports. You can always switch to some other company and country to buy your next consignment. The strongest is founding businesses in other EU countries and growing them in situ.It is much more complex closing them down or selling up.

The French and Germans have been keen to exploit opportunities to invest in the UK and establish businesses. Just look at the way Aldi and Lidl have brought their business model to UK shoppers, and grown a large market share. Look at the way the French have exploited easy access for mergers to buy up large amounts of the UK utilities sectors. The UK does not have similar freedoms on the continent where nationalisation, government controls and directions impede similar investment.

In contrast, the UK’s largest food retailer, Tesco, has no shop at all in France or Germany (or for that matter in Italy or Spain). In general retailing, an area of UK strength, M and S set up a continental business only to close most of it down in 2001 claiming it was not profitable and had no future. M and S today has just a few shops in the Paris area, with nothing in Germany, the continent’s largest and richest market. Boots too has no stores in France or Germany.

Most UK multinationals have made far larger commitments to the USA and to Asia than they have to continental Europe. Some have found too many cultural and business model barriers to establishing in Europe. Most have found it easier and more worthwhile to establish in the USA. Perhaps the enthusiasts for the single market writing to this site could help us as to why this is true.