China Business Blog
Putting China Business News in Context. From China Business Services.
Google.cn: Searching for Solutions
(Mar 12)
Go on, Google “Google China”, and see what comes up…plenty of news covering a lot of common issues, including the trials and tribulations of good vs evil, censorship vs freedom, compliance & complaints, localization vs long-distance management, protectionism vs free trade, and business strategy vs social activism…
The onset of Google’s current China woes
can be seen here. This is a story we will continue to cover, as it should make an interesting case study, and as Google is still seeking a way out of the woods.
Some of the latest news includes a threatened
WTO case against China:
• Searching analysis
RT @KaiserKuo:
RT @chinahearsay: ...Google, China & the
WTO: Financial Times Brings the Stupid
http://ow.ly/1dX9H 7:23
AM Mar 4th
Stan Abrams lays into the FT, and reminds us that “just because a government does something we don’t like, and even when that action hurts foreign companies, that doesn’t mean that there is necessarily a
WTO action”.
As for China’s position, well...
China, Monopolies & M&A
(Mar 12)
We have covered M&A (including
Chinese outbound investment) and
monopolies in China before, but new news is now on offer, with the announcement of Diageo’s bid for Chinese spirits maker Shuijingfang, as well as coverage of the Anti-Monopoly Law (AML) and the role of state-owned enterprises (SOEs). See the links from our tweets below for more coverage:
•
RT @chinahearsay: Latest China Hearsay post re: Anti-monopoly Law and State sector.
http://tinyurl.com/ydpazo8 6:41
AM Mar 7th
Stan Abrams, in his post (see link above) notes:
“China’s State sector, and its industrial policy in general, presents a competition law problem. How do you square the existence of dominant SOEs, many of which have very large market shares, with fair competition?
The
AML provides some basic guidance on this issue. Article 7 acknowledges that although SOEs may engage in monopolistic conduct, they will be protected by the State. In other words, they will receive special protection. At the same time, h...
China The Biggest: Property Investment Market
(Mar 12)
The latest in our (likely to be endless) series on China’s emergence as
the biggest international player in may areas. The latest, but not that last, is property. China Daily notes:
“China overtook the United States as the world’s biggest property investment market last year and will probably keep the lead in 2010 on economic growth and a lower reliance on debt, Cushman & Wakefield
LLP said.
Real estate investment in China more than doubled to $156.2 billion last year, while the total for the US slumped 64 percent to $38.3 billion, the New York-based broker said in a report on Wednesday.
Excluding residential investments, the US came third after China and the United Kingdom”.
Of course some would say China is also the biggest property bubble.
Others would disagree. We are with the latter.
• h/t @westlawchina: China overtakes US as top property market http://bit.ly/drj7X7 #china # international #chinanews 8:38
PM Mar 8th
Briefly…Top Ten Tweets (From Taxes, Monopolies & Loans, To Bribes, Recalls & Yuppies)
(Mar 12)
Fresh from our
ChinaBlogTweets Twitter feed, here is our roundup of last week’s China business news.
Chongqing:
RT @China_Daily: Chongqing to become China’s first inland tariff-free zone
http://tinyurl.com/y9qa8dx 7:43
AM Mar 7th
Monopolies & M&A
RT @chinahearsay: Latest China Hearsay post re: Anti-monopoly Law and State sector.
http://tinyurl.com/ydpazo8 6:41
AM Mar 7th (Also note: M&A
RT @chinahearsay: Diageo on Shuijingfang bid: “It’s not like Coke-Huiyuan!”
http://tinyurl.com/yejhwph Keep an eye on this one. 9:13
AM Mar 6th).
See more on this in our post here.
Rio Tinto: The 2 are steel co execs
RT @NCUSCR: Two face charges in Rio Tinto China case (Australian)
http://is.gd/9GeW0 china news riotinto 7:22
PM Mar 5th
Bank lending:
RT @niubi: China’s Hidden Debt Risks 2012 Crisis, Northwestern’s Shih Says @vshih2 – Bloomberg
http://bit.ly/9lOm1k 7:18
AM Mar 3rd (Also see:
RMB7.5 trn
RT @China_Daily:
RMB loans to rise by $1.1 trillion in 2010: Gov’t report
http://tinyurl.com...
Briefly…Top Ten Tweets (From ODI, CSR & M&A, To GDP, RMB & NDA)
(Mar 5)
This week’s news update, from our
ChinaBlogTweets Twitter feed, continues with some familiar themes…
...But we are experimenting with a different format – in order to expand on the issues, and improve the key-word searchability of the blog, we are using this post as a summary of our top 10 news items, and will include separate posts on selected issues, along with additional links and our own comments. Let us know how you like it.
ODI US$60bn in 2010?
RT @China_Daily: Overseas direct investment may soar
http://tinyurl.com/yklgb26 7:32
AM Feb 27th
(
See our post here)
Statistics…: Data accuracy
RT @China_Daily: China mulls unified
GDP calculation:
NDRC http://tinyurl.com/yc2mmb7 8:32
AM Feb 28th
(
See our post here)
CSR: Another bad Apple?
RT @niubi: How Sincere is Wal-Mart’s Demand that Chinese Suppliers Meet Labor & Enviro Standards?
http://bit.ly/a6Qe4Z 8:13
AM Feb 28th
(
See our post here)
Employment: Countryside competition
RT @fonstuinstra: China: Labor shortages driving up w...
ODI, M&A, & Policy Perils
(Mar 5)
FDI 9Foreign Direct Investment) is so yesterday…today is all about
Chinese ODI (Overseas Direct Investment).
•
ODI US$60bn in 2010?
RT @China_Daily: Overseas direct investment may soar
http://tinyurl.com/yklgb26 7:32
AM Feb 27th
China Daily suggests rapid growth in 2010:
“There is little doubt that the nation’s
ODI in 2010 will climb up to $60 billion,” said [Liu Zuozhang, director general of the Investment Promotion Agency of
MOFCOM] adding the year-on-year growth could range from 15 to 39 percent.
During the first half of 2009, China’s
ODI slumped nearly 52 percent as the world economy was still in limbo and domestic enterprises shied away from investment. However, things started to change in the third quarter of last year after
ODI rebounded nearly 190 percent year-on-year to $20.5 billion.”
There are many reasons for China’s increased
ODI activity, but one of the key ones has been access to strategic resources:
• The why of
ODI? RT @chinahearsay: Is China trying ...
Better Statistics. Don’t Count On It.
(Mar 5)
We have often written about the (over) abundance of (questionable and re-stated)
data in China, and this continues to be an issue. One that seems to be causing the National Bureau of Statistics (NBS) some stress.
First the powerful National Development & Reform Commission seeks to take away the responsibility for
GDP calculations. Then the China Daily has a go at them for releasing some questionable and confusing data on house prices.
• Statistics…: Data accuracy
RT @China_Daily: China mulls unified
GDP calculation:
NDRC http://tinyurl.com/yc2mmb7 8:32
AM Feb 28th
•
NBS-bashing- China Daily is on a mission this week!
RT @China_Daily: Confusing statistics
http://tinyurl.com/ya4xdqn 7:16
AM Feb 27th
We will have to wait and see what impact all this has on
NBS and on economic data. But, hopefully, it will get better…just don’t count on it (and continue to monitor, seek out multiple sources, and get informed analysis of what it all means in context).
Another Bite at a Bad (CSR) Apple
(Mar 5)
Oh dear…it is
not the first time Apple has been bruised by accusations of poor controls over its China contractors, and it seems unlikely it will be the last.
•
RT @fonstuinstra: China: Apple admits using child labour to build iPods and iPhones in Chinese factories | Mail Online
http://ow.ly/1bZDi 11:43
PM Feb 27th
CSR has become a big issue in China, not least as it touches on political issues such as the “harmonious society”, the environment, increasing unionization, labour law, and anti-corruption campaigns. Of course big foreign investors, like the proverbial tall tree, attract the wind (or, in this case, media storm).
While Apple battles its demons, other firms are taking note, and promoting their own
CSR plans. Among them is Wal-Mart (China’s
7th largest trading partner - if it was a nation!). But a policy alone is not enough, especially for a high-profile company. Some have questioned teh firm’s sincerity:
•
CSR: Another bad Apple?
RT @niubi: How Sincere is Wal-Mart’...
A Labour Shortage? In China?
(Mar 5)
Excuse the (stretched)
Monty Python paraphrase, overcome your shock that there could be a shortage of people in a country of 1.3 billion, and remember that things are rarely simple in China.
While there is no shortage of people in China overall, there is a growing shortage (?) in some areas, such as the manufacturing hubs of the Pearl River Delta in south China. How could this be?
There are a number of reasons, including the mobility and preferences of the mobile (migrant) workers. The southern factories are suffering from rising costs and compliance, as well as a fall-off in exports last year and, for those reasons, many have closed. But there is also competition from inland cities that are seeing a construction and manufacturing boom. And those cities are closer to home for many migrants. Why drive all the way to Dongguan, when you can be near home in Hunan?
• Employment: Countryside competition
RT @fonstuinstra: China: Labor shortages driving up wages – China.org.cn
http:...
Briefly…Top Ten Tweets (From Protectionists, Paper & Pipes, To Hackers, Lawyers & NDAs)
(Feb 26)
Another week flies by – with the help of a post Chinese New Year surge – and it is already the end of February! So without further delay, here is our
ChinaBlogTweets roundup of China business news from last week.
Going Global joelbackaler Whose your favorite of FastCompany 10 most innovative Chinese companies
http://bit.ly/dlAugb @sagebrennan favs Eno, I’m partial to Alibaba 8:11
AM Feb 21st
Comment: We have been reading (and writing) about China
climbing the value chain, Chinese companies doing more R&D, China doing more to protect IP etc., for a long time. Now we are seeing more innovative Chinese companies (another of our favourites is Broad Air Conditioning, from Changsha). More to come.
Consumers: A sharp, double-edged sword!
RT @elliottng: Chinese consumers: brand-sensitive price-sensitive and fickle… #berkeleyabc2010 7:27
PM Feb 20th
Comment: Many global companies are seeking the holy grail of “the Chinese consumer”. Of course there are fantastic opportunitie...