Surg­ing GMin­vests com­mod­i­tyin ur­ban im­ports mo­bil­ity ‘do app not maker point to’ eco­nomic re­bound

China Daily (USA) - - BUSINESS - By PAUL WELITZKIN in New York paulwelitzkin@ ByYANG chi­nadai­ ZIMAN and ZHONG NAN Con­tact the writ­ers at yangz­i­man@chi­nadaily. and zhong­nan@ chi­

Gen­eral Mo­tors Corp’s in­vest­men­tThe surgein a in Chi­nese China’s car­shar­ing iron ore, ap­pli­ca­tion­crude oil and de­vel­op­er­coal im­ports demon­stratesin the first nine the months au­tomaker’s does keen not in­ter­est in­di­cate in thatthe world’s China’s largest econ­omy auto and­has re­bounded,car-shar­ing mar­ket, ac­cord­ing ob­server­sto a spokesper­son­said. of the cus­toms ad­min­is­tra­tion on Thurs­day at a news brief­ing.

“The Chi­nese econ­omy is still fac­ing down­ward pres­sure. The re­cent in­crease in bulk com­mod­ity im­ports does not mean that China has loos­ened its grip on over­ca­pac­ity GM re­duc­tion,”on Wed­nes­day­said Huang Song­ping,de­clined to spokesper­son­re­veal the size for of theits in­vest­ment­cus­toms ad­min­is­tra­ YiWeiXing (Bei­jing)The to­tal Tech­nol­o­gy­iron ore im­port­sCo Ltd, in whichthe first de­vel­ope­d­nine months Feezu, were a 763 car-rental mil­lion and met­ric car-shar­ing­tons, up 9.13 app per­cent­that merges year-on- hard­wareyear. In and the soft­ware­same pe­riod,and en­able­scoal im­port­susers to stoo­drent ve­hi­cle­sat 180 mil­lionby the tons, minute,up 15.2 hour per­centor day. from the same“It is time GM’s last first year. in­vest­men­tCrude oilin a im­ports startup in­creasedin China re­lat­edby 14 per­centto ur­ban year-on-year­mo­bil­ity,” a com­pa­nyto 284 mil­lion spokeswoman­tons from Jan­uary­told Septem­ber. “This co­op­er­a­tion is very Huang im­por­tant­said thatto our China com­pany is still to vig­or­ous­ly­ex­plore the pur­su­ing rideshar­ing over­ca­pac­i­ty­mar­ket in re­duc­tion.China.” Bulk “Only com­mod­i­ty­time will im­port­stell if this­are af­fect­ed­move is by sig­nif­i­cant,a lot of fac­tors­but it shows that GM is pay­ing close at­ten­tion to the Chi­nese mar­ket,” said Eric Den­nis and there­foreof the can­not Cen­ter be taken for Au­to­mo­tiveas the sole Re­search­sign thatin An­nthe Chi­ne­seAr­bor, Michi­gan, econ­omy in is an about reg­is­terAs ride-hail­ing­fast growth. ser­vices like “For Uber in­stance,in the US the and in­crease Didi in Chux­ing crude in oil China im­ports haveis be­causegrown, GM of andthe other de­creas­ing ma­jor do­mes­tic au­tomak­ers out­put,have been the quick­low worldto part­neroil prices with and them the and­fact that par­tic­i­pate pri­vate in com­pa­ni­esthis fast grow­ing­have gained seg­ment­more im­portof what quo­tas,” is said re­ferred as the “shar­ing econ­omy”.Lin Bo­qiang, Ear­lier di­rec­tor­this year of GMin­vest­edthe En­ergy $500 Eco­nomic­smil­lion in Re­searchthe ride-hail­ingCen­ter at com­pa­nyXi­a­men Univer­sity,Lyft and also said launchedMaven,that such a rise in which raw ma­te­ri­al­spro­vides short­ter­mis not sus­tain­able­car rentals. be­cause China’s con­trol “This is on an over­ca­pac­i­ty­im­por­tant stepis pret­ty­for GM tight. to ex­plore and engage “Some with might new be stock­ing mo­bil­ity up mar­ket­son bulkin China, com­modi­ties,in par­tic­u­lar be­liev­ing­with a that com­pa­nythe Chi­nese which econ­o­myal­ready has is a warm­ing pres­ence up in soon.that mar­ket,”For in­stance, Jeremy power Carl­son, con­sump­tion prin­ci­pal in au­to­mo­tivethe first three an­a­lyst quar­ters­for IHS has Markit, been saidris­ing, in an which email. may be taken as a sign “GM of has eco­nomicbeen ag­gres­sive­lyre­cov­ery. Yet build­ing their up spec­u­la­tion­theMaven brand,may leadand theto great in­vest­ment losses in be­cause YiWei the Xing real may de­mandbe a sig­nal for that power the re­mains au­tomaker slug­gish,”is likely said look­ing Lin. to bring it­sMaven brand to China, a very im­por­tant mar­ket both for new mo­bil­ity so­lu­tions and for the com­pany over­all,” he added.

GM’s in­vest­ment in the ride-hail­ing com­pany Lyft

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