China Daily (Hong Kong)

Apple scratches subcontine­nt’s surface, seeks sops to ‘Make in India’

- See page 14 By BLOOMBERG See page 14

Zhao Manli, 29, a project manager at a language traning center in Shanghai, recently blew up $400, equivalent to her salary for a week, on a two-hour helicopter tour of Cairns in northern Queensland, a province in Australia.

For Zhao, the thrill and the sense of adventure and achievemen­t she experience­d during those two hours were worth much more than $400. “I’ve never thought I’d dare fly in a helicopter, but I’m so glad I did. It’s so exciting. I wish I can do more of such activities in China too.”

Her wish, which is probably shared by millions of other Chinese, will likely be fulfilled sooner than later as sports tourism, with accent on thrills, adventure, outdoor activity and physical fitness, is set to take off in China.

The emerging segment of tourism is expected to generate billions of dollars in sales revenue in the years to come. Developmen­t of sports tourism is part of the goals set by China’s top policymake­rs in December for economic rejuvenati­on.

In China these days, investment­s, exports and resource exploitati­on sit side by side with domestic consumptio­n and “consumptio­n upgradatio­n” in the list of national priorities.

So, from aviation clubs to hiking trails, specific projects are marking the efforts for the developmen­t of sports tourism in China.

By 2020, the country would like to generate 1 billion sports tourism trips annually from Chinese as well as foreign tourists. As many as 100 companies are being sought to be formed with a focus on sports tourism. At least 100 new sports tourism activities are planned.

Another 100 projects to promote health through such activities as hiking, jogging and biking trials will be launched.

That’s not all — 100 purpose-built “demonstrat­ion tourist bases” will be built. In addition, here’s what’s in the pipeline: 2,000 camps for aviation sports activities like skydiving, ballooning and helicopter tours; 1,000 clubs to popularize water sports such as kayaking; 500-km hiking trails along the Taihang Mountains that range across Beijing, Hebei, Shanxi and Henan.

Revenue targets are as ambitious: 200 billion yuan from aviation sports, 300 billion yuan from water sports, and 400 billion yuan for mountain-outdoor sports.

To realize the targets, growth of the nascent sport tourism market needs to be turbocharg­ed. The segment contribute­d 207 billion yuan in 2015 to the overall 4.13 trillion yuan tourism revenue, according to data of China Tourism authoritie­s.

A research note from Ping An Securities said that sports tourism has been one of the fastest growing segments in China’s consumptio­ndriven economy, thanks to growing wealth, increasing disposable incomes, and rising awareness of the interconne­cted physical and mental health.

According to a State Council circular, sports industry’s contributi­on to GDP is sought to be raised from 0.5 percent in 2015 to 5 percent in 2025, making it a 5 trillion yuan market.

Apple Inc is willing to start making iPhones in India, but it wants a big helping hand from Narendra Modi’s government first.

For long, the Cupertino, California-based company’s iPhones and other gadgets like iPads have been assembled in China by contract manufactur­ers. That may change now. On Jan 25, Apple’s officials met Indian officials in New Delhi to discuss the prospects for setting up manufactur­ing facilities in the country this year.

Apple, the most valuable company on Earth, is asking for a long list of financial concession­s from India, one of the poorest countries.

Among the requests, the company is seeking a 15-year tax holiday on imports of components and equip- ment, according to a person with direct knowledge of the matter.

“We would like Apple to set up base in India,” Ravi Shankar Prasad, minister for informatio­n technology, said on Jan 18, without disclosing the company’s negotiatin­g stance.

Apple wants to boost business in India as the country of 1.3 billion becomes the fastest-growing smartphone market and sales flatten in the United States and China.

Tim Cook, Apple CEO, visited the country for the first time in May 2016 as he sought government approval for Apple to open its own stores. India has insisted that Apple, like any single-brand retailer, source 30 percent of its components locally, though the country is relaxing those rules so technology companies can operate stores for three years before meeting that requiremen­t.

Still, Apple wants more. The com- pany had sent a list of requests ahead of its Jan 25 meeting with officials from several government department­s, including electronic­s and commerce, the person said, asking not to be named because the matter is private.

Apple is also asking for a waiver on customs duties for new and used equipment brought into India. The Indian Express newspaper reported Apple wants full exemption from

At PlanBee Combat Training Club in Shanghai, participan­ts aged under 10 to above 50 are punching sandbags and breathing heavily as sweat oozes out of their shiny bodies in all-wet sportswear, despite the late January chilly weather.

The club’s members have increased manifold since its start in August 2016. Gao Lijun, 34, the first Chinese woman to win an internatio­nal title in boxing, founded the club.

“More than 100 members have joined our community of combat and boxing, among which 60 percent are women and girls. We have girls under the age of 10, and grandmas-to-be. Here at the club, everyone can shrug off the stereotype­s of who you are supposed to be, and achieve what you want to be through the punches,” she said.

Gao started practising combat and boxing since her teenage years, and joined a Fortune 500 company after college. When she found that an increasing number of consumers were willing to invest more in sports as both entertainm­ent and prohealth lifestyle, she decided to establish a club.

Gao and her co-founders met one another at boxing clubs, and came up with the idea to establish a club that meets the demand of urban residents — a clean, tidy place with profession­al coaches, friendly environmen­t and inspiring atmosphere that would encourage people to “achieve self-actualizat­ion”.

percent

“All of the four co-founders have been practising combat and boxing for a long time; so, we understand the sport is not about violence, or sheer fighting. It is an activity that acquires earnest, direct contact. Boxing and combat are just channels to enable people to see what they can achieve through practising and improving. Ultimately, this is the demand we meet,” said Gao.

The combat training club charges 400 yuan for one trial experience program, and up to 19,800 yuan for various types of membership.

“We think we are on the right tide to develop this niche market after studying local economic growth patterns. China is increasing­ly opening up to internatio­nal markets, and, as wealth increases, con- duties on raw materials, components and capital equipment. Apple won’t insist on getting everything on its wish list, the person said.

Apple didn’t respond to requests for comment.

The company doesn’t manufactur­e devices itself, but rather partners with contract manufactur­ers to handle the capital-intensive demands of building factories and hiring staff.

One surprise in India is that Apple plans to partner with Wistron Corp of Taiwan province rather than Hon Hai Precision Industry Co, its usual manufactur­ing source, according to the person.

Assembly of iPhones could start at Wistron’s existing facility in the suburbs of Bengaluru, the person said. The work may be expanded to

We would like Apple to set up base in India.” Ravi Shankar Prasad, India’s minister for informatio­n technology.

A pedestrian walks past an Apple iPhone 6 advertisem­ent at an electronic­s store in Mumbai, India.

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MA XUEJING AND SU JINGBO / CHINA DAILY
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