Archive for August, 2006

Don’t Quote Me (On IPR Abuse)

Thursday, August 24th, 2006

Here is the latest in our little series of comments worthy of noting and quoting…It comes from Ekkehard Rathgeber, Preseident of Bertelsmann Direct Group Asia. He had the following to say about the perspective of Chinese officials in rural areas in relation to intellectual property abuses: “My people are poor; people in western China are […]

China is (Not) the Most Cost-Effective Country in the Region

Wednesday, August 23rd, 2006

The profit squeeze being faced by manufacturing companies in China, was noted in an earlier post (“Profits Squeeze May Hit Growth“), and the issue is starting to have an impact. The latest news (from the FT) is that the savvy Hong Kong conglomerate, Li & Fung, is to increase operations outside China. The paper notes: […]

Statistical Oversight

Wednesday, August 23rd, 2006

“Lies, damn, lies and statistics” fill the news pages in relation to China, as I have commented before (see “Chinese Statistics. Go Figure!”). Now the Financial Express reports: “China’s annual economic growth rates issued by the NBS [National Bureau of Statistics] have always been lower than those calculated by the local governments of the 31 […]

Foreign Companies Lead in China but a Chinese Company Leads the World

Tuesday, August 22nd, 2006

There has been much focus recently on the roles of foreign investment and foreign companies in China, and the need for anti-monopoly measures and other restrictions. This is partly a result of nationalist protectionism, and partly due to a need to protect “national security” and state assets. We already know that 58 percent of China’s […]

The First International Logistics China Congress 2006

Tuesday, August 22nd, 2006

China Business Services is pleased to announce that we will be a partner for The First International Logistics China Congress (ILCC) in Beijing from October 18-20, 2006. The Chinese transportation and logistics market has been growing at an exponential rate over the past few years, fueled by the Chinese government reforms and opening up of […]

Restricting Foreign M&A to Protect National Interests

Monday, August 21st, 2006

Regulation aimed at foreign purchases of Chinese companies were recently drafted by the Ministry of Commerce, and have been causing a bit of a stir since their release on 30 June. Caijing magazine reports on the thinking behind the new rules: “In recent years, foreign investment in Chinese companies has caused widespread controversy because of […]

No Agreement on Unified Taxation

Friday, August 18th, 2006

Taxes are rarely an easy issue, even at the best of times, so proposed changes to the tax law (see: “Equally Taxing Times Ahead”) have been causing concern in the foreign investment community. The proposal to equalize tax rates for local and foreign-invested companies was proposed by the Ministry of Finance as part of the […]

Apple Serves Up iPod Compliance Report

Friday, August 18th, 2006

Corporate Social Responsibility has been a growing PR concern for multinationals operating in China. This has been due to concerns over the role of foreign investment in China, as well as politically-charged concerns in the US and EU about off-shoring of jobs, and the treatment of foreign workers. I covered the problems of Apple recently […]

Search Chinese News in English

Thursday, August 17th, 2006

Have you ever wanted to search Chinese news, but could not because you can’t read the characters? Well, thanks to a post from Danwei, you can now navigate your way through the Chinese language maze. The secret is a new service from Adsotrans, the China Search Robot. This search engine (in beta at present) allows […]

Corporate (Non) Governance

Thursday, August 17th, 2006

The risks of doing business in China range from intellectual property rights abuses and lack of enforcement of court awards, to fraud and theft (to name a few). I have covered corruption before (see here), but for investors seeking to share in the spoils of China’s economic success story, corporate governance (or lack of it) […]