Archives for July2014

Follow us:

Youtube Twitter facebook

July 26 – August 3, 2014

[Breaking News] Strong quake in China topples thousands of homes, kills at least 367 – Los Angles Times

A strong earthquake in southern China’s Yunnan province toppled thousands of homes on Sunday, killing at least 367 people and injuring more than 1,881. About 12,000 homes collapsed in Ludian, a densely populated county located around 277 miles northeast of Yunnan’s capital, Kunming, China’s official Xinhua News Agency reported. The magnitude-6.1 quake struck at 4:30 p.m. at a depth of 6 miles, according to the U.S. Geological Survey. Its epicenter was in Longtoushan township, 14 miles southwest of the city of Zhaotong, the Ludian county seat… Read Full Story

[Breaking News] Death Toll Rises to 75 in Chinese Factory Blast –ABC News

The death toll in for an explosion at a Chinese auto parts factory has risen to 75 people, as investigators fault poor safety measures and news reports reveal that workers had long complained of dangerous levels of dust at the facility. Metal dust produced from polishing steel hubcaps ignited Saturday morning at the factory in the eastern Chinese city of Kunshan, causing an explosion that destroyed almost the entire roof of the plant, city officials said. More than 200 workers were at the factory at the time of the blast, China’s most serious industrial disaster since a fire at a poultry plant killed 119 people in June last year… Read Full Story

[Technology] Beijing to bar Symantec, Kaspersky anti-virus in procurement: report – Reuters

(Reuters) – China has excluded U.S.-based Symantec Corp(SYMC.O) and Russia’s Kaspersky Lab from a list of approved anti-virus software vendors, according to a Chinese media report suggesting Beijing is expanding efforts to limit use of foreign technology. The state-controlled People’s Daily reported the news early Sunday on its English Twitter feed, saying that the government’s procurement agency “has excluded Symantec & Kaspersky” from a list of security software suppliers… Read Full Story

[Politics] Police-Chief Zhou’s Trial Tests Xi’s Rule of Law Pledge – Bloomberg

China’s biggest trial in three decades may also be the prime test of whether President Xi Jinping’s campaign to bolster the rule of law in the world’s second-largest economy remains a work in progress.Zhou Yongkang, the former internal security chief whose investigation for corruption was made public last week, faces a potential trial akin to that of his allyBo Xilai in 2013. Preparatory work during an 18-month campaign against Zhou’s faction featured officials across the nation being taken for questioning and held incommunicado without trial, often for months… Read Full Story

[Technology] Xbox One coming to FTZ – Shanghai Daily

MICROSOFT and BesTV New Media Co said last week that a new-generation games console, the Xbox One, will go on sale in the Shanghai free trade zone on September 23. The model, priced at 3,699 yuan (US$599), will be the first console to be sold on China’s mainland in over a decade… Read Full Story

[Technology] What Microsoft Has Done Right (And Wrong) In China With Xbox One – Forbes

Half a year after China lifted its console ban, allowing gaming consoles to be legally sold within the country for the first time in over a decade, China’s console gamers are yet to get their hands on anything. But the launch of China’s first official console is drawing ever closer. At the recent ChinaJoy game conference,Microsoft announced the device’s official price (RMB 3699, or about $600) and its official release date (September 23). The Xbox One is coming, and it’s coming soon… Read Full Story

The War of Words in China – The New York Times

BEIJING — I DIDN’T ask for a Wikipedia page, but a few months ago, alerted by a friend, I found that someone had created one, ostensibly devoted to my journalistic achievements. I was flattered. Until I opened the page.“Since 2008, Jacobs has written over 400 articles, the vast majority of which portray China in a negative light,” read the entry, which went on to claim that many of those articles contained “journalistic distortions.”… Read Full Story

China Warns Microsoft Against Obstructing Probe – The New York Times

Chinese regulators on Monday publicly warned Microsoft Corp. MSFT +0.21% against obstructing an antitrust investigation into the firm, in the latest sign that Beijing has turned frosty on the U.S. software maker.China’s State Administration for Industry and Commerce said in a statement that Microsoft should avoid “interfering in or obstructing” the probe. The regulator also said it had questioned Microsoft Deputy General Counsel Mary Snapp as part of the investigation… Read Full Story

Doing Business In China: Terry & The Pirates – Forbes

This is the first in a series of articles about doing business in China.  While my formal job is as a management professor at a business school in China, my educational background and experience has been in political science, the US Air Force, and individual, group and organizational psychology as a Leadership Professor at a European management institute for 25 years… Read Full Story

[Business] China’s Salt Monopoly: Cracking Down on Illegal Contraband –Forbes

China’s 2,132-year old salt monopoly and why it makes sense to finally end it.

Early last year Taobao, Alibaba’s online marketplace, went through a cleansing process to remove contraband being sold by merchants on the site. What was this illicit item? Was it cocaine or heroin sale of which is prohibited under China’s Drug Administration Law? No. Was it firearms which private citizens in China are not allowed to own or sell? No. Was it stolen merchandise being resold by unscrupulous thieves? No. In fact, the Taobao merchants were attempting to sell… common table salt… Read Full Story

[Business] For China Investors, Bad News Erases The Good – Forbes

The tug of war between bears and bulls in China equities rages on, with the bears getting an extra pull of much needed muscle following poor service sector PMI data this weekend. For the past month, investors have been pouring into China equities, according to flow data from EPFR Global.  Manufacturing PMI beat market consensus, but service sector PMI declined. And many in the market view the service sector as the new China. When the new China looks weak, it means the old China has to step up on stimulus programs and fixed-asset investments in order to get investors bullish again.  Technicals aside, China is still a topsy-turvey economy, where the bad news often outweighs the good… Read Full Story

[Technology] Xiaomi Overtakes Samsung in China Smartphone Market – The Wall Street Journal

Xiaomi, the Chinese smartphone maker with the diminutive name, became the leading smartphone vendor in China in the second quarter, with its shipments exceedingSamsung 005930.SE +1.93%’s for the first time, according to figures from market research firm Canalys. Xiaomi led China’s second-quarter smartphone shipment rankings with 14% market share, following by Samsung, Lenovo and Yulong each with 12%. It’s quite a jump from the first quarter, when Xiaomi’s 10.7% market share trailed Samsung’s 18.3% and Lenovo’s 11%. And an even bigger leap from a year ago, when Xiaomi only held 5%… Read Full Story

[Business] U.S., China compete to woo Africa – PewResearch Center

The U.S. and China have been jockeying for economic influence in Africa in recent years as the region experiences robust GDP growth and presents more opportunities for investment…Read Full Story

[Environment] China’s surprise on climate change: Our view – USA Today

With the scientific evidence of human-caused climate change growing stronger all the time, advocates of inaction have turned to another argument: It’s pointless for the U.S. to limit emissions of greenhouse gases, they say, because increases from other nations — particularly China — will overwhelm any U.S. reductions… Read Full Story

[Business] Legal fight chills China metal trade after port fraud probe – Reuters

As global banks and trading houses fire off lawsuits over their estimated $900 million exposure to a suspected metal financing fraud in China, the tangled legal battle to recoup losses is set to drag on for years and hinder a swift recovery in metal trade. HSBC is the latest bank to launch legal action since Chinese authorities started a probe into whether the firm at the center of the allegations, Decheng Mining, used fake warehouse receipts to obtain multiple loans… Read Full Story

[Business] IMF Says China Should Aim Lower As Housing Prices Triple-Dip – Forbes

China’s government should lower its GDP target to 6.5% next year instead of 7.5%, The InternationalMonetary Fund said this Friday as the country’s real estate market continues to decline.Non-performing loans, shadow banking at the municipal level and housing woes were cited as the risks to China growth again next year, Alfred Schipke, senior resident representative at the IMF , said at a news conference in Beijing… Read Full Story

[Business] Global Logistic Properties Invests in China State Firm- The Wall Street Journal

SHANGHAI—Singapore’s Global Logistic Properties is investing 2 billion yuan (US$324 million) for a stake in China’s largest state-owned warehouse logistics provider, the latest deal intended to capitalize on growing domestic consumption in the country. The Singapore-listed GLP will take a 15.3% stake in Shanghai-listed CMST Development Co., becoming its second-largest shareholder, GLP said in a statement Monday… Read Full Story

[Entertainment] China to Open $323 Million Musical Production Center-The Hollywood Reporter

Musicals, a still relatively unknown form of entertainment in China, are about to get a big push with a planned $323 million (2 billion RMB) musical production center in the country, according to a report by the China News Service. The center, to be located in Langfang, just 30 miles outside of Beijing, will be a 1 million square feet compound, including theaters, classrooms and related facilities and is set to be completed in 2017. The center will be tasked with not only creating commercially viable musicals in China, but also promoting the art form in the country… Read Full Story

[Society] Why China’s Second-Baby Boom Might Not Happen-BloombergBusinessweek

Last November, China announced the loosening of its restrictive one-child population policy: Couples would soon be permitted to have two children so long as one parent was an only child. Government planners predicted that roughly half of China’s 11 million eligible couples would chose to have a second child within five years, and investors predicted a boom in sales of diapers, baby formula, and educational toys in China…Read Full Story

[Environment] U.S. Hits China Solar Firms – The Wall Street Journal

NEW DELHI—The U.S. is shaking up the solar-equipment industry by imposing heavy antidumping tariffs on Chinese panel makers, a move that is benefiting not just producers at home but also those operating in Asia and encouraging them to expand. The Commerce Department has issued preliminary tariffs on solar products of between 20% and 40% from China and Taiwan, saying they were sold too cheaply to U.S. buyers. But with prices now rising from Chinese importers as they have to deposit money in U.S. escrow accounts until the preliminary findings are confirmed, buyers are turning elsewhere… Read Full Story

[Business] China Moves to Ease Home-Registration Rules in Urbanization Push – New York Times

HONG KONG — The Chinese government issued proposals on Wednesday to break down barriers that a nationwide household registration system has long imposed between rural and urban residents and among regions, reinforcing inequality, breeding discontent and hampering economic growth.Yet even as officials promoted easier urbanization and the goal of permanently settling an additional 100 million rural people in towns and cities by 2020, they said changes to the system — which links many government entitlements to a person’s official residence, even if that person has long since moved away — must be gradual and must protect big cities like Beijing…Read Full Story

[Business] Banks Fear Missing Collateral in China – The New York Times

Large banks and trading firms are frantically trying to determine whether they have fallen victim to a suspected commodities fraud emanating from the giant Qingdao Port in northeast China. Citigroup and several other big Western banks are concerned that their loans may lack the appropriate collateral of big stockpiles of copper and aluminum at the port. The banks have inspectors on the ground who are trying to assess whether enough of the metals are there… Read Full Story

[Business] Why Do Foreign Brands ‘Break Bad’ in China? – Caixin

One of the major suppliers of famous multinational brands like McDonald’s and KFC was recently found using old meat to produce fast food. The news dragged foreign fast food chains into another wave of public outcry, with “get out, foreign fast food” appearing on the Internet. If I remember correctly, this is the third straight year that KFC’s parent, Yum Brands Inc., was exposed in scandals involving supply chain quality. In 2012, Yum was reported to have used hormones to raise fast-growing chickens in just 45 days, implicating its KFC chains. Last year, Yum’s Little Sheep Mongolian Hot Pot & Grill restaurants were found using chicken, fox and rat meat in place of lamb, damaging its business. These three crises all resulted from problems with upstream supply companies…Read Full Story

[Politics] How the Hammer Falls as China Nails Corruption – Caixin

(Beijing) — Curiosity is one reason the website of the Central Discipline Inspection Commission (CDIC) attracts up to 2 million page views every day.Another reason is fear. Some website visitors, for example, want to know whether they or anyone they know has been targeted by a government campaign to root out corruption led by the CDIC Inspection Team.Since the campaign began in December 2012, 33 high-level government and state company officials – all in positions at the deputy provincial level or higher – have come under investigation for violating laws or Communist Party rules. Each has been removed from office and detained. Some have been kicked out of the party…Read Full Story

[Business] China will soon be the world’s top business travel market – CNN Money

China is the world’s hottest market for business travelers, and spending in the country could surpass the U.S. as soon as 2015, according to a new report…Read Full Story

[Business] Investors Bet on China’s Large Property Developers –The Wall Street Journal

As China’s real-estate market slows, investors are turning bullish and buying up stocks of large property developers, betting they won’t only ride out the storm but also grow. The MSCI China Real Estate Index, which tracks the stocks of mainland developers, has surged 16.5% from the start of July through Friday, on pace for its best month in nearly three years, as local governments have started to ease restrictions on housing purchases to boost sales. The index remained down more than 3% for the year…Read Full Story

[Technology] Baidu’s search engine reaches 500 million active users on mobile – Tech In Asia

Baidu (NASDAQ:BIDU), China’s top search engine, released its Q2 earnings report overnight. The financials were dull, but the conference call with Baidu execs yielded some interesting user numbers and a few new milestones. With a strong focus on mobile – now that China’s mobile internet users outnumber its PC web users – Baidu CEO Robin Li hailed the fact that the company’s “mobile revenue, which is largely comprised of mobile search revenue, accounts for 30 percent of our total revenue.”…Read Full Story

[Technology] China’s JD to take pre-orders for the country’s first official Xbox One shipments on WeChat – Tech In Asia

This morning, Chinese e-retailer JD announced it has attained exclusive rights to accept China’s first pre-orders for the Xbox One. But gamers who open a desktop web browser and input JD’s URL won’t be able to snag the console – instead, the company will accept orders exclusively through Tencent’s WeChat and Mobile QQ apps, from July 28 through July 30. “Through our partnership with Tencent, Chinese consumers are increasingly able to enjoy the JD.com shopping experience directly on China’s most popular mobile communications platforms,” says Shuang Du, vice president of JD, in a statement. “We will continue to focus on providing the most convenient channels for Chinese consumers to purchase authentic products through their mobile devices.”…Read Full Story

[Society] China’s 1 Percent vs. America’s 1 Percent – Bloomberg Businessweek

A new study by Peking University’s Social Science Research Center pulls back the curtain a bit on China’s überwealthy. The richest 1 percent of Chinese households control more than a third of the country’s wealth, according to the July 26 study…Read Full Story

[Society] China gets richer but more unequal – The Guardian

China is becoming more unequal as it gets richer, with about a third of the country’s wealth now concentrated in the hands of 1% of its citizens, according to new research. A report by the Peking University Institute of Social Science Survey also found that the poorest quarter of Chinese citizens owned only 1% of the country’s wealth. The report, which was covered extensively by China’s state media, concludes that while the country is getting richer as a whole – the average net worth of a Chinese household rose 17% between 2010 and 2012 to $71,000 (£42,000) – inequality is a serious and growing problem…Read Full Story

[Business] Managing the Challenges of Food and Agribusiness Investment in China – China Business Review

Demand for foreign-branded foods, beverages, and other agricultural products and services is soaring in China, largely due to the rising income of Chinese consumers and their growing concerns about food safety. This trend affects not just the kinds of food purchased, but every aspect of China’s food industry, including retail, distribution, warehousing, and farming. It also presents an enormous opportunity for multinational agribusiness and food companies. But agribusiness remains a highly regulated industry in China, and multinational companies seeking to invest in China face a number of barriers. Regulatory challenges include restrictions on foreign investment, lengthy anti-trust reviews, and China’s new national security review process for mergers and acquisitions…Read Full Story

[Business] Tiny Luxembourg Wants a Piece of China’s Offshore Currency Market – The Wall Street Journal

The small nation of Luxembourg already boasts a financial sector that has benefited from the Grand Duchy’s proximity to some of Europe’s largest economies. Now, the country of just half a million people wants to be at the heart of a new trend in global finance: the rising use of China’s currency outside its home market…Read Full Story

[Immigration] NY Wheel reels in Chinese EB-5 investors – China Daily

The New York Wheel, an observation Ferris wheel planned for Staten Island that will be the tallest of its kind in the world, has so far received $150 million from foreign investors, the vast majority from China in exchange for green cards. The 630-foot-wheel project has attracted 300 Chinese investors, at least 90 percent of the foreign investors involved, through the EB-5 visa program, which gives foreign investors a temporary visa to the US, said Richard Marin, president and CEO of New York Wheel LLC…Read Full Story

[Business] Investment from China to boom – China Daily

Economic changes in China have set the world’s second largest economy up for a “structural increase” of foreign direct investment (FDI) in a broad range of industries in the United States over the next decade, according to a director at a New York-based global research and advisory firm. “China is only at the beginning of a structural catch-up process in global outbound investment,” Thilo Hanemann, research director with the Rhodium Group (RHG), said July 26 in an email to China Daily. Hanemann, who leads RHG’s cross-border investment work, said the US will see “strong inflows in the next decade,” but the amount of investment from China will depend on a number of factors including: “the relative attractiveness of the US economy; the ability of Chinese firms to compete in an advanced marketplace like the US; and the progress both countries make in sustaining two-way openness to investment.”…Read Full Story

[Business] Alibaba Has Big Hopes for New Big Data Processing Service – Caixin

Alibaba Group Holding Ltd. and its wealth of data on online vendors and shoppers has for a long time inspired imaginations for how big data technologies can reshape life on the Internet and beyond. The e-commerce giant has been using advanced data-analyzing technologies to help extend small loans since 2010, paving the way for clouding computing services that aim to commercialize its computing power. It launched a service on July 8, lifting the veil on the technologies and offering a glimpse into how other companies can make use of them. The Open Data Processing Service (ODPS) allows users to remotely tap into Alibaba servers equipped with algorithms that, according to the company, can process 100 million high-definition movies’ worth of data in six hours…Read Full Story

[Environment] What Do Chinese Dumplings Have to Do With Global Warming? – The New York Times

‘In Sichuan, we’re eaters,” said Chen Zemin, the world’s first and only frozen-dumpling billionaire. “We have an expression that goes, ‘Even if you have a very poor life, you still have your teeth to please.’ ” He smiled and patted his not insubstantial belly. “I like to eat.”…Read Full Story

[Business] China Currency Gaining Among American Corporations – Forbes

Here’s a good one for those who think the dollar’s days are numbered.  A survey released last week by HSBC Global says more U.S. multinationals are closing trade transactions in…you guessed it…the Chinese yuan. Of course, this sort of news is right up HSBC’s alley. They are one of the premier financial centers in Hong Kong, where much of the off-shore Chinese currency transactions take place.  It’s like a dream come true for the old colonial bank: the yuan increasingly being taken seriously as a viable trade currency…Read Full Story

[Environment] Solar Industry Is Rebalanced by U.S. Pressure on China – The New York Times

Even as regulators continue to wrestle with the protracted trade conflict with China over solar panels, the case has already started to reshape the industry, lifting manufacturers based outside China while also raising prices of panels for developers…Read Full Story

 

July 19 – July 25, 2014

Nielsen: China’s consumer confidence remains at record high – CCTV.com

Chinese consumer confidence remains at a record high, according to new data from Information company Nielsen. The report released on Monday shows that for the third quarter in a row, Chinese consumer confidence for Q2 is staying unchanged at 111 points… Read Full Story

Tencent invests $3.2M in a laundry-on-demand service in China –  VentureBeat

Not be outdone by the U.S. and its Washio, Chinese Internet giant Tencent has invested $3.2 million in an on-demand laundry service with an app made by laundromat chain Rongchan, reports say… Read Full Story

A Chinese luxury e-retailer raises $100 million for global expansion – iResearch News

Beijing Secoo Trading Co., a Chinese retailer that sells such luxury items as watches and handbags online, has raised $100 million to open shops in major Western cities to cater to the growing number of affluent Chinese traveling abroad.The series D financing round was led by China-based CMC Capital Partners and is one of the largest infusions of capital into a Chinese luxury e-commerce company. Also participating were four existing investors: U.S-based IDG Capital, Japan-based Vangoo Investment Partners, and French companies Ventech Capital and Crehol China.  Secoo also announced that it has secured a credit line of “tens of millions of U.S. dollars” from Silicon Valley Bank in California…Read Full Story

Shanghai passes law to bolster Free Trade Zone – ShanghaiDaily

THE Shanghai People’s Congress unanimously passed a new law today that covers regulations on supervision, investment, trade, financial services and taxation in the China (Shanghai) Pilot Free Trade Zone…Read Full Story

Where’s Upton Sinclair? The Roots of China’s Expired-Meat Scandal – Wall Street Journal

Meat madness is overtaking China this week, and while consumers have been quick toblame fast-food chains for lax oversight of suppliers, industry insiders say the real beef is with China’s inspectors.Gao Guan, deputy secretary-general of the China Meat Association trade group, said there are no regular inspections of meat-processing plants here. “In China neither the laws nor law enforcement is sound and complete enough,” Mr. Gao said.The number of regulators is actually small, so authorities rely on the public and media for supervision of the industry, Mr. Gao said…Read Full Story

Tainted food scandal now focuses on supply chain – ChinaDaily

Shanghai Husi Food Co was suspected of using expired meat and was shut down by local regulators in China. The long-time McDonald’s meat supplier was also cut by other fast food chains it supplied.Due to the vast size of the fast-food market in China, which poses an obstacle to consistent regulating, foreign companies are going to need to invest a lot more resources in their supply lines, an expert said.”We’ve got a situation now where a lot of multinationals and domestic firms as well are really facing a credibility issue in the China market,” Ben Cavender, a senior analyst at China Market Research Group in Shanghai, told the Wall Street Journal… Read Full Story

China and US reached agreement on cooperation on infrastructure – ChinaDaily

China and the United States agreed Wednesday to strengthen cooperation on infrastructure while calling for an acceleration of talks on a bilateral investment treaty.”This year’s dialogue led to new consensus on infrastructure investment between China and the US,” Chen Wenling, chief economist at the China Center for International Economic Exchanges, said at the closing of the Sixth Annual US-China CEO and Former Senior Officials’ Dialogue, held in Beijing this week…Read Full Story

Why Tmall is the smartest route into China’s ecommerce market – Venturebeat

The challenges that face a western company seeking China online market share are increasing in proportion to the size of the opportunity, and that opportunity grows daily. China passed the 300 million mark in online shoppers last year, representing 25 percent year-over-year growth, while total e-commerce transactions rose 30 percent to $1.64 trillion… Read Full Story

Chinese Ecommerce Market Exploding But Logistics Tricky – Multichannel Merchant

While the Chinese ecommerce market is growing wildly as consumers there love western brands, getting goods to them can prove tricky even with an in-country partner, attendees were told during a packed session at Multichannel Merchant’s Growing Global conference last week in Long Beach, CA… Read Full Story

Napa’s Quixote Winery Sold to Chinese Company – Wine-Searcher.com

After 43 years in the wine business in Napa Valley, Carl Doumani was looking for a retirement plan; he found it earlier this month, selling his Quixote Winery to a Chinese company for more than $20 million...Read Full Story

Everything that Apple is doing right in China – Quartz

While Apple reported a mostly ho-hum quarter on July 22, the company’s growth in China was an unexpected bonus. “China honestly was surprising to us,” CEO Tim Cook said. “The unit growth was really off the charts across the board.” Revenue from Greater China, which includes Hong Kong and Taiwan, grew 28% to $5.94 billion, as buyers snapped up iPhones, iPads and computers at much faster rates than in the rest of the world. Chinese iPhone sales were up 48%, Mac sales were up 39%, and iPad sales (which were down 9.2% globally), were up an impressive 51%… Read Full Story

Chinese Now Prefer Mobile When Going Online – The New York Times

For the first time, more Chinese people are gaining access to the Internet with mobile devices than with personal computers.The shift is significant, if expected, in China, which is the world’s biggest market for both Internet and smartphone users…Read Full Story

Alibaba, banks launch online service to make loans to SMEs – Ecns.cn

Alibaba Group Holding joined seven of China’s major banks in launching an upgraded online financial product to offer low-interest loans to small and medium-sized trade companies, a move the largest e-commerce company in China said would help ease funding costs for these companies… Read Full Story

Ethiopia Becomes China’s China in Search for Cheap Labor – Bloomberg

Ethiopian workers strolling through the parking lot of Huajian Shoes’ factory outside Addis Ababa last month chose the wrong day to leave their shirts untucked…Read Full Story

China to contribute to new global trade system- Xinhua News

BEIJING, July 22 (Xinhua) — China will join in and contribute to the construction of a new global trade system, said Premier Li Keqiang here on Tuesday. Li also called on the United States to be more open and to create more favorable conditions for the two countries’ deeper cooperation, while meeting a delegation of U.S. business leaders and former senior officials… Read Full Story

McDonald’s and KFC Caught in China’s Latest Food-Quality Scandal – BloombergBusinessweek

An investigation aired by China’s state media on Sunday turned into one of the worst possible advertisements for Big Macs, Happy Meals, and KFC Chicken Burgers. The broadcast showed workers at Shanghai Husi Food, a supplier to bothMcDonald’s (MCD) and KFC parent company Yum! Brands (YUM), preparing expired beef and chicken and packaging meat that had been picked up off the floor…Read Full Story

Xiaomi Unveils a Fresh Chapter in Its Plan to Conquer the World – Bloomberg

Chinese smartphone upstart Xiaomi (XIAOMZ:CH) is turning the release of high-end, low-priced gadgets into a ritual. At a press conference on Tuesday in Beijing, Xiaomi Chief Executive Officer Lei Jun unveiled the Mi4, a metal-backed iPhone-esque smartphone with a 5-inch display, the latest Qualcomm (QCOM)Snapdragon chip, and a $320 price tag that puts it far closer to the reach of China’s middle class than the iPhone 5S (AAPL), which sells in that country for close to $700… Read Full Story

German group plans to launch hospital in Free Trade Zone In Shanghai – ShanghaiDaily

THE first wholly foreign-owned hospital will open in the China (Shanghai) Pilot Free Trade Zone in about 18 months, Shanghai Daily learned yesterday.Germany-based medical and health care provider Artemed Group signed an agreement to establish Artemed Hospital in Shanghai’s FTZ… Read Full Story

Strategic and Economic Dialogue Kicks Off in Beijing Following US-China Discussions on Innovation, Climate Change, and Security – The US-China Business Council

US and Chinese government officials kicked off the sixth annual meeting of the US-China Strategic and Economic Dialogue (S&ED) Wednesday in Beijing, the highlight of a busy week of bilateral meetings on topics such as innovation and climate change. Despite recent tension in the relationship, both sides continue to message that they plan for robust, constructive discussions on bilateral issues. Formal outcomes remain unclear at this point, but key topics of discussions include China’s economic reform agenda, state-owned enterprise (SOE) reforms, currency, investment restrictions, intellectual property rights (IPR) protection, licensing barriers, and trade and investment agreements… Read Full Story

18 die in China’s strongest storm in decades, with more rain on way – Shanghai Daily

THE death toll from the strongest storm to hit China in decades reached 18 yesterday, as forecasters issued warnings of more extreme weather.Typhoon Rammasun, the most powerful typhoon to hit south China in 40 years, brought gales and downpours to a number of southern provinces. At least five people are missing, according to local civil affairs authorities…Read Full Story

Brand wars: Battling China’s trademark ‘squatters’ –CNN

They’re known as trademark “squatters” and they’ve long caused headaches for foreign companies entering the Chinese market.Savvy to China’s complex trademark laws, these individuals target valuable foreign brands and register them as trademarks in China.When international companies want to launch their products on the Chinese market, they’re often left with little choice but to cough up huge sums to buy back the trademark, rebrand their product or fight for the right to use the brand through lengthy legal battles… Read Full Story

Female Shoppers Remain The Main Force in The Online Shopping Market With Stable Online Shopping Habits – iResearch

According to 2014 China Online Shoppers Behavior Report issued by iResearch, over 30% of online shoppers did the online shopping for more than 40 times in 2013, and over 60% of online shoppers expended more than 3,000 Yuan in this year. Shoppers are gradually forming the habit of online shopping. In comparison with male shoppers, female shoppers spent more money with more frequent online shopping, and they became the main force in China online shopping market… Read Full Story

RMB developing quickly as major world currency – ChinaDaily

The renminbi is on track to become the third-largest international currency behind the US dollar and the euro within five years as China accelerates its promotion of the yuan, said a Renmin University of China report released on Sunday.Last year, RMB cross-border trade settlement amounted to 4.63 trillion yuan ($746 billion), up 57.5 percent from 2012. It accounted for 2.5 percent of cross-border trade settlement worldwide, the report said… Read Full Story

Alibaba has a second attempt at making a social network – Tech in Asia

Ecommerce titan Alibaba has a new social network. It’s a sort of Instagram that’s based around tagging brand names that appear in your photos. Rather than making it a standalone app, Alibaba’s newest effort, called Fun, is built into its Tmall shopping app and is rolling out to users in an update for iOS and Android. Tmall is an online marketplace for large vendors and major brands…Read Full Story

China’s Rich Look Abroad as Home Prices Fall, Others Stay Put – The New York Times

Rattled by falling home prices, some of the wealthiest Chinese are paring their property investments and turning to private equity or overseas holiday homes, a sign of fading hopes that the once red-hot market can bounce back any time soon…Read Full Story

Alibaba’s I.P.O. Could Be a Bonanza for the Scions of Chinese Leaders – The New York Times

It was billed as the biggest private financing deal in the history of China.In September 2012, the Alibaba Group announced that it had completed a $7.6 billion deal to buy back half of Yahoo’s stake in it. The giant e-commerce company raised part of the money by selling shares to select investors, notably China’s sovereign wealth fund and three prominent Chinese investment firms… Read Full Story

Moody’s positive on China’s SOE reform – Xinhua News

Global rating agency Moody’s said reform of China’s six big state-owned enterprises (SOEs) is credit positive, calling it a prudent, yet concrete, step toward broader reform.The State-owned Assets Supervision and Administration Commission (SASAC) announced on Tuesday that six big SOEs will pilot reforms in ownership, management and supervision, including selectively setting up investment companies and a “board of directors” system… Read Full Story

The power of women in China’s booming ecommerce market – Tech in  Asia

In China, there are more male online shoppers than female online shoppers. However, women are the ones really shaping the thriving Chinese ecommerce market that saw a massive US$74 billion spent in the first three months of this year. China’s women spend more and shop online more frequently. More importantly, many female eshoppers view ecommerce as part of their lifestyle. They enjoy the fun of exploring and shopping online… Read Full Story

Chinese Billionaire Guo Guangchang Buys Like Buffett – Bloomberg

Borrowing from the approach used by Warren Buffett’s Berkshire Hathaway(BRK/A), Fosun buys financial companies such as insurers to secure long-term funding it can use to invest in consumer brands and other businesses. Since 2010 it has invested more than $3.4 billion overseas, buying JPMorgan Chase’s (JPM) 60-story tower, One Chase Manhattan Plaza, in New York, and stakes in French resort operator Club Méditerranée (CU:FP) and Raffaele Caruso, an Italian maker of $3,300 suits. “Many people talk about being Buffett in China, but few can pull it off,” says Eugene Qian, Citigroup’s (C) head of global banking for China. “Fosun is the closest in our view.”… Read Full Story

China’s Wine Market Shifts Toward Entry Level – The Wall Street Journal

When the Chinese government announced a crackdown on lavish gift-giving in its effort to root out corruption in 2012, the wine industry braced for a slowdown in corporate entertainment spending. But John Watkins, the chief executive of ASC Fine Wines, never thought the restrictive policies would last…Read Full Story

July 12-July 18, 2014

All you need to know about business in China – McKinsey&Company

A lot of people view China business as mysterious. Relax. Consumers behave pretty much the same everywhere. Competition is pretty much the same everywhere. You just need to ignore the hype and focus on the basic fact that in China today, there are six big trends (exhibit). That’s it. Six trends shape most of the country’s industries and drive much of China’s impact on the Western world. They are like tectonic plates moving underneath the surface. If you can understand them, the chaotic flurry of activity on the surface becomes a lot more understandable—and even predictable… Read Full Sotry

China outlook remains strong – U.S. Dairy Export Council

Chinese Dairy consumption growth is expected to remain strong. The International Farm Comparison Network (IFCN) projected Chinese dairy demand would increase from 43 million tons liquid milk equivalent to 61 million tons, a 42 percent increase, by 2024. That’s an increased appetite for about 40 billion lbs. of milk, equivalent to nearly all the milk produced in New Zealand each year… Read Full Story

China to get new dairy hub – ChinaDaily

US-based Abbott Laboratories, one of the biggest infant formula sellers in China, is getting deeper into milk production for the world’s most populous country by building a dairy farm hub with New Zealand company Fonterra…Read Full Story

Shanghai woos MNCs with friendly visa policies – ShanghaiDaily.com

TO make the city friendlier to foreign investors, Shanghai yesterday allowed more multinational companies to benefit from the city’s 2012 policies for foreign investment…Read Full Story

Introducing the iPhone 6, made in China by a robot – The Week

The worst kept secret of Apple and its Taiwanese manufacturer Foxconn isn’t their poor labor conditions. It isn’t even the fact that they use robots to help bring together all the pieces that make up an iPhone. It’s that their robots are now performing more and more human-like functions… Read Full Story

China Reveals Charges for British-American Couple in Case Involving Glaxo – The New York Times

BEIJING — China said on Monday that a British-American couple, who have been detained for a year after working as investigators for the pharmaceutical company GlaxoSmithKline, would be tried on charges of illegally acquiring private personal information… Read Full Story

California’s Drought Is ‘The Greatest Water Loss Ever Seen,’ And The Effects Will Be Severe – Yahoo News

California’s current drought will cost the state $2.2 billion and 17,000 jobs, researchers announced at a press conference July 15 in Washington, D.C. The findings are from a new report from the UC Davis Center for Watershed Science.  Read Full Story

June 14 – June 20, 2014

 

China’s Mini-Stimulus Shows Results, More Support Measures Likely – Wall Street Journal

China’s May economic data brought some pleasant surprises, with the government’s “mini-stimulus” measures credited with producing a modest turnaround after the sluggish start to the year. Many analysts said the data show signs the economy is stabilizing, but others said there’s trouble ahead and that more support for the economy – on top of the stepped-up tax breaks and railway spending already announced – will be needed. The biggest risk to growth is the sagging property sector. “The worst is not over, we believe,” Standard Chartered economists wrote in a note to clients. “We maintain our call that actual activity growth is likely to slow further in the third… – Read Full Story

China’s Gray-Haired Set Could Boost Digital Shopping – Wall Street Journal

Online shopping in China isn’t just for the young, according to a new survey. That could be good news for an already quickly growing e-commerce industry that largely caters to the young. While the bulk of online shoppers are still in their 20s and 30s, a survey published Tuesday by data provider Nielsen said the number of online consumers aged 55 or older grew 72% between 2012 and 2013. It cited data from Taobao, one of China’s largest shopping websites, which is owned by Alibaba Group, though it didn’t release the underlying figures. “China could become the world’s most aged… – Read Full Story

Japan’s Muji Joins Alibaba’s Tmall – Wall Street Journal

As Alibaba’s Tmall courts international brands and retailers to set up shop on its site, the latest company to join the virtual shopping mall is Muji, the Japanese retailer of simple but design-conscious housewares and clothing. Muji’s Tmall store, which opened this week, comes as Alibaba is stepping up its efforts to attract global brands that can help elevate the overall image of its online shopping mall. Alibaba has been working hard to cultivate the reputation of Tmall as a trusted marketplace for high-quality, authentic branded goods… – Read Full Story

Chow Tai Fook to Buy U.S. Diamond Retailer Hearts on Fire – Wall Street Journal

Chow Tai Fook Jewellery Group Ltd. is buying U.S. diamond company Hearts on Fire Co. for $150 million, as the mass-market Hong Kong jeweler hopes to expand its catalog of high-end gems for Chinese consumers. It is Chow Tai Fook’s biggest acquisition since it went public in Hong Kong almost three years ago. The world’s biggest jeweler, as ranked by its $15 billion market value, has the bulk of its vast retail network in… – Read Full Story

Smaller Hollywood Studios Make Their Move in China – Wall Street Journal

Independent U.S. movie studios have struck new deals with Chinese companies as they try to follow the gains big Hollywood studios have made in the world’s No. 2 movie market. Relatively Media LLC, which produced the film “The Social Network,” said on Monday it struck a deal with China’s Jiangsu Broadcasting Corp., a broadcaster in the eastern Chinese province of Jiangsu, to jointly finance, produce and distribute mainly Chinese-language film and TV content for both Chinese and international markets. The Beverly Hills, Calif., company also signed two other deals this week to distribute Chinese language films licensed by the state-run China Film Promotion International in the international market… – Read Full Story

Hillhouse’s Zhang Says Now One of Best Times to Invest in China – Bloomberg News

Now is one of the best times to invest in China in 10 years as a slowing economy reduces overcapacity and forces companies to focus on generating free cash flow, said Zhang Lei, founder of Yale University-backed Hillhouse Capital Management Ltd. “China is in a structurally slowing-down phase,” Zhang said at a Financial Times conference in Hong Kong today. “That overcapacity, that lack of free cash flow, is a really bad recipe for equity investors. When growth slows down, you have high-quality companies… – Read Full Story

Shanghai to Start International Gold Trading in 4Q – Bloomberg News

China, the world’s biggest gold user, will start international gold trading in Shanghai’s free-trade zone in the final quarter of this year, according to a city government official. “We will aim to commence trading in the fourth quarter,” Zheng Yang, head of Shanghai’s financial services office, said today in a conference in the city. The nation’s central bank earlier this week approved the trading platform to be included in the zone’s banking system. China, also the world’s largest bullion producer, is seeking to step up its presence in the global gold market at a time when the industry is discussing changes to the century-old fixing benchmark in London used to trade and value the metal. The country overtook… – Read Full Story