MUMBAI (Reuters) – India has approved smartphones maker Oppo’s request to open single-brand retail stores in the country, paving the way for the Chinese firm to sell directly to consumers and add to its existing wholesale business.
The move would help Oppo expand its reach in the world’s third-largest smartphones market, where global giants such as Apple Inc have been trying to gain a foothold.
The Foreign Investment Promotion Board approved Oppo Mobiles India Pvt Ltd’s request on Tuesday, according to a notice on the department’s website.
The government also approved luxury goods retailer Louis Vuitton’s application to open its own stores in India.
India allows foreign firms to sell directly to consumers through the so-called ‘single-brand retail’ route, but companies need to source 30 percent of the products locally. India moved to partially relax those conditions in 2016, exempting foreign retailers for three years from the 30 percent local sourcing rule in a bid to attract more investment.
Reporting by Zeba Siddiqui in Mumbai; Editing by Sunil Nair
Greetings from San Francisco, where Thursday night I helped host a 100-strong delegation from Guangzhou, China. We gathered for dinner at the plush St. Regis Hotel with Silicon Valley’s best and brightest to discuss Chinese innovation.
Those last two words until recently might have constituted what I learned in elementary school to be an oxymoron. No longer. Chinese companies, in their well-capitalized, rapidly growing, and surprisingly lightly regulated markets, have become global innovation leaders.
Michal Lev-Ram has a fine write-up of the night’s proceedings here. Investors Ying Wang and Hans Tung as well as McKinsey thinker Jonathan Woetzel wowed the crowd with examples of how the Chinese already are leading the way is areas like payments, insurance, healthcare, and e-commerce. The unanswered question is whether Chinese companies can export their success, the way a generation of commercially imperialistic U.S. goliaths like Coca-Cola (ko), IBM (ibm), and McDonald’s (mcd) did in previous generations. If I had to guess, the answer is yes.
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Economist, policymaker, and academic Laura Tyson sounded a refreshing note of caution. China’s successes have taken place in an asymmetric fashion, Tyson noted in after-dinner comments, whereby China has repeatedly enjoyed open access to markets like the U.S. while closing its own for key sectors. This was the conclusion of an Obama-era commission on which she served. The current administration in Washington will only form harsher assessments.
U.S.-China commerce will be the most important business story of the next decade. And it certainly will be the biggest story at Fortune the first week of December, when we convene two major conferences in Guangzhou: Brainstorm Tech International and the Fortune Global Forum.
Have a great weekend.
Apple’s developer software Xcode will soon be available to Chinese developers.
First spotted by Apple Insider, this news comes on the heels of a malware attack on apps in the App Store.
Last week, security researchers at Palo Alto Networks discovered the infected apps and publicized an analysis report detailing the malware’s spread and impact. Xcode is a set of software tools developers use to create iOS apps, but a modified version of Xcode containing the malware, dubbed XcodeGhost, made its way into the App Store.
As Palo Alto Networks explains, the standard Xcode installer is nearly 3GB, which means it could take even longer to download large files from Apple’s servers in other countries. In response to this, some Chinese developers choose to download the software from other sources or obtain copies from colleagues. It’s also hard for developers to detect malware like XcodeGhost because it’s deeply hidden. Read more…
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