Chinese President Hu Jintao Kicks Off US Visit

This is a transcript of top stories presented by China's CCTV Business Channel as produced by CNBC Asia Pacific.

Good evening to our viewers across China.

I'm Saijal Patel and you're watching “Asia Market Daily”.

China's outbound investments passed the $50 billion mark in 2010.

Those figures are expected to rise further, with Beijing's recent "Going Abroad" Mandate - which allows local firms to make overseas investments in Chinese Yuan.

But as Cheng Lei discovers, Chinese firms still have a lot to learn when foraying overseas.

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Sinopec's $7 billion investment in Repsol, PetroChina's joint $3 billion stake in Arrow Energy — judging by the biggest deals of 2010, the mainstay of China's outbound investments — is still state firms buying resources.

(SOT) David Xu, Partner, Transaction Services, KPMG China:

"Two thirds of the total deals are in the mining/energy sector, usually that's carried out by the COE's, some of the SOE's like energy related companies, oil and gas companies, they're well established with outbound experience of over let's say 10+ years, so they have own teams & they know where the risks are."

But state backing can be a double-edged sword. State firms face more regulatory scrutiny overseas and are sometimes forced to pay a premium, even if they're not always proxies of the government.

In comparison, private firms may not be as cashed up, but are playing a growing part in China's overseas investment drive. Take Zheng Yonggang, chairman of Shanshan group. A textiles firm turned investment conglomerate. Lately, Shanshan has expanded its global footprint to Australia and Argentina, also to buy resources.

(SOT) Zheng Yonggang, Chairman, Shanshan Group:

"We have an edge, we're more market oriented. We have no other mission, just supply and demand, market factors, whereas SOE's, well western countries don't understand their ideology. What's the deal with SOE's, is it Chinese government encouraging them to buy up resources? This can be an obstacle."

Like most private companies, Shanshan's investment approach is to put prudence first.

(SOT) Zheng Yonggang, Chairman, Shanshan Group:

"Companies, like Geely buying Volvo, they're different to us, we wouldn't want to do a big deal like that. Those things may be good, maybe every firm's strategy's different. We're not that bold.

Zheng's caution is warranted as relative newcomers to international dealmaking, Chinese firms are still paying tuition.

(SOT) David Xu, Partner, Transaction Services, KPMG China:

""There's still an issue of negotiation tactics, and definitely the Chinese companies need to elevate themselves a lot in terms of how to negotiate with seller. "

After the deal is done, there are integration challenges. It took TCL years to recover from losses after its takeover of Thomson. Now Geely's purchase of Volvo is being watched to see whether cultural clashes offset any potential synergies.

(SOT) Arthur Yeung, Associate Dean, China Europe International Business School:

"But I find many Chinese firms they don't have a well-established system on their own. As a result when they want to integrate, there's no way they can integrate, because their own systems are not clear at all."

Private or state companies, resources or manufacturing deals, Beijing is supporting outbound investments — because it helps balance trade and tests Chinese firms' globalization capabilities.

The Ministry of Commerce will soon launch formal regulations to encourage more investments.

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Chinese President Hu Jintao has kicked off his 4-day visit to America.

Some analysts say the summit could be the most significant bilateral event between the two countries in 30 years.

CNBC's John Harwood takes a look at what's on the agenda.

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President Hu Jintao of China has arrived in the United States for his eight face-to-face meeting with President Obama. They'll have a private dinner at the White House tonight, and then a full state dinner tomorrow night. The frequency of these meetings reflects a structure of a relationship that American officials say is built not for specific high profile announcements but the steady application of pressure. Here are the top U.S. concerns: first national security, help with the Iranian and North Korean nuclear programs and US attempts to restrain them. Second is Chinese progress on human rights which is a big concern of US foreign policy. But most conspicuously is progress on the economic front. That is currency values, protection of intellectual property and opening up market access for American companies. Treasury Secretary Tim Geithner in advance of the session said the most important things we can do are insure that China continues to grow and becomes less export dependent, that it lets the value of its currency rise. And that it levels the playing field for American companies. There's some disagreement as to how effective the administration of policy has been. Although China's currency has risen somewhat against the dollar lately. President Hu Jintao and President Obama both will meet with corporate CEOs tomorrow, as part of the effort by the United States Government to pressure China to opening up market access for those companies. Back to you.

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Apple shares remain in focus, after the company reported blowout earnings after the bell.

Revenue rose 71 percent to more than $26.7 billion last quarter, while earnings-per-share came in at $6.43, more than a dollar above estimates.

But the tech giant's strong profit results were pre-empted by the announcement that CEO Steve Jobs is taking another medical leave of absence - putting COO Tim Cook in charge for the interim.

CNBC's Brian Shactman has more on Apple's number two man.

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Thank you very much, with Steve Jobs taking yet another leave of absence due to health, running the company once again falls on COO Tim Cook. And if past performance is any indication, the company actually should be fine. When I covered last week's iPhone launch for Verizon, there were rumors that jobs might actually make an appearance in New York. When it was cook on the stage instead, no one really flinched. This is cook's third stint filling in for Jobs. 2004 and 2009 were the others.

Here are the numbers I want to share with you on 2009. The stock dropped about 10-percent right after the announcement, but soon fully recovered. And as the rest of the market bounced off those March 2009 lows, Apple popped 70 percent until Jobs returned. That out-paced the SP 500 by 60 percent. Of course, since Jobs' return in June of 09, the stock has climbed another 134 percent.

The 50-year old cook is now relatively well known, but here are a few contextual reminders for you if you don't know much about him. After career stops that included at IBM and Compaq, he was one of jobs' first hires after his return to apple in the late 90's. Named COO in 2005, cook's management is widely credited with helping stream-line apple and pile up about 50-billion in cash and short term investments. Piper Jaffray Analyst Gene Munster said Cook is quote "as much an operational genius as Steve Jobs is a product genius."

But Cook is not a tech design guy. If cook maybe some-day is the CEO full time, he would likely share the stage with someone. Even still, some wonder if cook should have been named the CEO in 2009 and let Jobs be Chairman. That of course did not happen. Back to you.

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Thanks for watching “Asia Market Daily”.

I'm Saijal Patel from CNBC Asia.

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