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BMW to invest in Chinese expansion

BMW and its Chinese partner will invest five billion yuan ($732 million) to expand production capacity in the world's biggest car market, the German auto maker said Thursday.

BMW to invest in Chinese expansion
Photo: DPA

The long-term injection by BMW and its joint venture partner Brilliance Auto Group will take their total investment in China to 9.5 billion yuan, BMW said in a statement, without providing an exact timeframe for the new investment.

The German luxury car maker said the money would be used to boost the production capacity of an existing plant at Shenyang in northeastern China, and to build an engine facility.

BMW said this week that sales in China of its own-name and Mini-brand autos soared 81 percent in October from a year earlier to a monthly record of 9,558 units, without providing a comparative figure for 2008.

That compares with an anaemic two percent increase in overall global sales.

China sales in the January-October period jumped 36.7 percent to 71,952 units from 52,622 units a year earlier, BMW said.

The Asian giant has been a bright spot for foreign auto makers struggling to boost sales in the rest of the world amid the financial crisis.

China’s total car sales outstripped those in the United States for the first time in January to make the Asian giant the world’s largest car market, helped by Beijing’s efforts to stimulate domestic consumption.

These measures included slashing taxes on cars with engines smaller than 1.6 litres and subsidising alternative-energy vehicles.

China’s auto sales rose 72.5 percent in October from a year ago to 1.23 million units, an industry body said this week, the eighth straight month that sales exceeded the one million unit mark.

For the first 10 months of the year, sales rose 37.7 percent on-year to 10.89 million, the China Association of Automobile Manufacturers said in a statement.

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CHINA

China derides Copenhagen democracy meet as ‘political farce’

China on Tuesday blasted a democracy conference in Copenhagen attended by Taiwan's president and a Hong Kong activist alongside Danish government officials this week, qualifying it a "political farce".

China derides Copenhagen democracy meet as 'political farce'
Demonstrators gathered outside the Copenhagen Democracy Summit on Tuesday. Photo: Emil Helms/Ritzau Scanpix

The Copenhagen Democracy Summit was held Monday and Tuesday in the Danish capital and organised by the Alliance of Democracies, an organisation targeted by Beijing sanctions in March and founded by former NATO boss Anders Fogh Rasmussen.

In addition to Taiwan’s President Tsai Ing-wen and Hong Kong democracy activist Nathan Law, Danish Foreign Minister Jeppe Kofod also participated in the forum by video link, which Beijing said violated “the one-China principle.”

“This summit is a political farce,” the Chinese embassy in Denmark wrote in a statement published on Tuesday. “Inviting those who advocate Taiwan and Hong Kong ‘independence’ to the meeting violates the one-China principle and interferes in China’s internal affairs,” it said.

“Some hypocritical western politicians are good at meddling in other countries’ internal affairs and creating divisions and confrontation in the name of ‘democracy’ and ‘freedom’. They are bound to fail,” it added.

At the conference on Monday, Kofod said it was “deplorable” that Beijing had imposed sanctions on 10 European individuals and organisations in response to EU sanctions on Xinjiang officials over their actions against the Uyghur Muslim minority.

Like most countries, Denmark applies the one-China principle — under which Beijing bars other countries from having simultaneous diplomatic relations with Taipei — though it does maintain relations with Taiwan.

Cut off politically from the rest of China since the end of the Chinese Civil War in 1949, the territory is self-governing but is not recognised by
the United Nations.

Beijing considers Taiwan a rebel province that will one day return under its control, by force if necessary.

China’s sabre-rattling has increased considerably over the past year, with fighter jets and nuclear-capable bombers breaching Taiwan’s air defence zone on a near-daily basis.

“Our government is fully aware of the threats to regional security, and is actively enhancing our national defence capabilities to protect our
democracy,” Tsai told the conference in a video address on Monday. US President Joe Biden is expected to present his China strategy soon, as
calls mount for him to publicly commit to defending Taiwan militarily in the event of a Chinese attack.

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