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Senators (Incl. Hilary) Call For ‘Sweatshop-Free Barbie’ 2007-10-31 13:23:00 Titles like this one are ones that pretty much jump off the RSS feed as I I enjoy my Free Trade Starbucks Lattes in the morning.  It was just days before that I had seen the well written piece American Imports, Chinese Deaths and the announcement that theInternational Labor Rights Forum Critiques Wal-Mart’s Sourcing Practices.. and the article of this title seemed to fit right in What I came to understand is that 14 months ago, before the prduct recalls, several Senators (with 60 cosponsors) put forward an ammendment to a previous bill that banned the importation of “convict goods” (convict goods are those goods that are made by, you guessed it, convicts). to treat “sweat shop” goods as if they were “convict goods”. Now, before I get into the specifics of the bill, I will say that the timing of this bill is interesting as I seem to remember a lot of trade rhetoric flying around.. and my impression is that some of the support for this bill w ...

Chinese Chemicals Flow Unchecked to Market — New York Times Investigative Piece 2007-10-31 08:23:42 Apologies for sparsely posting of late, but my practice has not allowed me much spare time. In the meanwhile, read this article on unregulated Chinese chemical exports finding their way into the pharma drug chain. Podcast available. Read Original Post Here ...

Youtube is BACK! 2007-10-31 06:22:43 Now, would everyone please play fair with the Net Nanny, we can all continue to enjoy our favorite Youtube movies without the use of an annoying proxy server. Read Original Post Here ... Youtube

UPS Nails Down Staples in China’s 2007-10-30 23:22:38 Without a doubt, 2007 has been one of the most active in the logistics in China. this is primarily a result of WTO restrictions passing their final milestone on Dec 1, 2006.. but it is also a result of the business in China improving on a macro level. For me, while I found working in the logistics industry in the States boring, it is definately one of the most interesting industries that I focus on in China… and this week is already proving me right on that. The first reference is to the deal that UPS has just announced a JV with Staples (see: Staples, UPS to establish joint venture in China). Much like their partnership (ownership) of Mailboxes Etc in the U.S., this partnership (ownership) could potentially result in UPS getting a lot of street level presence in China: The first two Staples UPS Express stores will be opened in Beijing’s Central Business District. Two additional locations are planned for Shanghai by the end of 2007. With regard to what the stores will p ...

CHAiNA’s China Supply Chain 20 2007-10-30 16:21:39 Last week I got a notice that I have been chosen as one of CHAINA’s supply chain top 20, and given this is probably the first award I have received at this level I thought I would share the news.  Maybe I am making too much of it, but even if I am pulling up the rear at number 20, that is still a pretty good place to be. As part of my profile, I was also asked to submit answers to the following 3 questions: 1. What developments in supply chain matters this year in China have pleased you most, and which have you found most disappointing? 2. Have you noticed any logistical trends this year? How are they going to affect matters next year? 3. What is the future for the supply chain in China? and while you will have to wait until the issue comes out (I am guessing this is for December issue) to see what I said, I thought it would be interesting to see what you the readers though of the three questions above. Any thoughts? Read Original Post Here ...

Lawyers on Logistics, China’s Policy Toolbox, Foreigners Prey on Chinese Labor, and The Rise of Female Consumers 2007-10-30 02:18:10 InterConnect Winter 2007 Report on Logistics (PDF Report here) Based in Clevland Ohio, Benesch, Friedlander, Coplan & Aronoff LLP has just released a 6 pager on the status of logistics in China. At 6 pages, this report was written from the copilot seat of a B52, however where their report gets interesting (and why I have included it) is on the 2 pages they devoted to the security regualations related to the Security and Accountability for Every Port Act (“SAFE Port Act”) and Container Safety Initiative. For those of you who don’t know, these two policies will have a massive impact on frieght as ports exporting containers to the U.S. will be required to scan the contents of the container before being put on the boat…. and regardless of whether or not the deadlines are met, and/ or foreign governments actually make the investments, these are policies that will affect everyone as the investment required to meet the requirements of SAFE and CSI will be shared by por ...

Race for the Environment 2007-10-29 13:40:52 As reports emerge - out of thick smog in Beijing - of worries about the 2008 Olympics (despite over US$10 billion being spent on pollution control measures), China has announced a major environmental clean-up project, with investment of US$14.5 billion. IHT reports: “The 108.5 billion yuan (US$14.5 billion; €10 billion) plan to clean up Lake Tai, in a densely populated area northwest of Shanghai, should take five years, said a statement dated Friday and posted on the government Web site of the nearby city of Taizhou. The plan comes amid mounting official urgency about curbing chronic pollution in China’s rivers and lakes. The problem has left millions of people without clean water and disrupted city water systems.” While the Chinese leadership has increased its focus on environmental protection , the challenges of scale and local enforcement remain. The Olympics – not to mention the people – provide a strong incentive for Beijing to get the environment back on track q ...

Updated Economic Estimates for 2007 2007-10-29 13:40:50 China’s trade surplus is a frequently quoted figure, but it is only one of the fast-moving economic indicators coming out of China. The latest batch of stats shows no sign of a slow down. The following reports come from Forbes, and are from a source at the National Development and Reform Commission (“NDRC”): • GDP: Projected at 11.5% for 2007 and 11% in 2008 (well ahead of government and private sector estimates made in April) • Inflation (CPI): Projected at 4.3% for 2007 and 3.5% in 2008 (The National Bureau of Statistics predicts 4.5% for 2007, and the People’s Bank of China 4.6%, according to another report) • Industrial value-added output: Projected at 18% for 2007 • Urban fixed-asset investment: Projected at 29% for 2007, and 25% in 2008 • Retail sales: Projected at 16.2% in 2007, and 16.5% in 2008 • Exports: Projected at 24.3% in 2007, with slower growth in 2008. • Trade surplus: Projected to hit US$257 billion in 2007, and US$308.4 billion in 2008. Blo ...

HTB Logistics Falls Off the Radar 2007-10-29 12:17:10 Recently, we stumbled on a bit of a mystery…  what happened to Hutchison Tibbett & Britten Logistics…. known as HTB Logisitcs for the last year or so. Like Kerry Logistics, HTB Logistics is a HK based logistics service provider who was (as far as we could tell) developing one of the strongest networks in China through inhouse and 3rd party partnerships..  but last week, we began to wonder what happeed to them. The first clue arose when I received email bouncebacks on Friday to several contacts. Then, when following up this morning, I found their phone numbers were all out of order as well. The last sign was when we went to the website , and instead of the well design HTB logistics website of old we found blank space. Then… as a final step, we decided to do a Google search and found that they have changed their name to Hutchison Logistics Services and their new website is under construction. If anyone knows the back story to HTB, please post it in the comments ...

SIP’s Past, Present, and Future 2007-10-29 05:15:51 One thing I love about Youtube, is you really can find anything. (Note: if you are in China, the Youtube videos below will not be visible without the use of a proxy service.) Recently, my work has taken me to Suzhou quite a bit. the area really has improved dramatically over the last 5 years, and there is still a ridiculous amount of growth still expected. During one of my first visits, I was given the tour of a museum that laid SIP’s history, and for those that don’t know it, it is quite extrodinary as both the Chinese government and Singaporean government really put a lot of faith into what was little more than a water town a 100km from Shanghai.. which was just beginning to see any real action. The first video below (prepare yourself for the music!) shows clips of SIP from the early days to now, and the second shows what the future will be (hmm.. I see high tech in SIP’s future). http://www.youtube.com/watch?v=vPUcik8zVao http://www.youtube.com/watch?v=iwEogP4 ...

China inaugurates first bank-invested trust company 2007-10-28 21:32:24 (Xinhua) Updated: 2007-10-29 06:39 Wuhan — China’s first bank-invested trust company is officially set up in Wuhan, capital of central China’s Hubei Province, on Sunday. The new trust company is held by the Bank of Communications (BOCOM), China’s fifth largest lender, and Hubei provincial finance department, which control 85 percent and 15 percent of the total shares respectively. The BOCOM invested 1.2 billion yuan (about US$160m) to buy the shares of the Hubei international trust and investment company, the first commercial bank investment in a trust company approved by the China Banking Regulatory Commission. Jin Dajian, chairman of the new company named “jiaoyin-guoxin”, or BOCOM-International Trust, said the company would focus on “professional wealth management”. Jin called the establishment of the new trust company “a breakthrough for China’s trust industry”, given that the country’s law on commercial banks ...

China Mobiles To Pass 540 Million 2007-10-26 22:37:12 It was only in July that China’s mobile phone numbers passed the 500 million mark. Now it is reported that the number will reach 540 million by the end of the year – and that falling prices will lead to greater penetration of smartphones. It is no wonder then that China Mobile stocks have been hot. Now it seems they plan an A-Share listing (as does fixed-line operator China Netcom) so that Chinese investors in China can share in the boom. As well as ever more mobile phones, we can expect more local IPOs from returning Chinese companies. Maybe even from a really foreign firm – some time in the future. See news souces: China expects to have 540 mln mobile phone users by year-end … Forbes - NY,USA China had 515.67 mln mobile phone users at the end of August, according to the Ministry of Information Industry. Xu also said China is projected to produce … China Mobile, China Netcom reportedly plan A-share IPOs next year MarketWatch - USA Both China Mobile and China Net ...

EU in China: Bras, Steel, and the RMB. 2007-10-26 22:37:11 The “Bra Wars” of 2005 seem a long way off, but discussions have been going on in the background. Now it seems that the EU has agreed to end quota restrictions, and to set up a joint monitoring system for a year from 2008. Hopefully more stable development – and free trade - will follow. Bras are one thing, but steel is another. And the EU is to press China to end subsidies for local producers. According to a Reuters report: “Speaking at a steel conference in Berlin, Michael Glos [Germany’s Economy Minister] said he understood why European steelmakers were concerned about the impact of cheap Chinese steel on business, and that the European Commission had agreed to investigate the matter. “We need fair rules in world trade and you cannot expect the German and European steel industries to compete against government subsidies,” Glos said. “That is why the European Commission will apply pressure, supported by us”. Separately, the head of China’s ...

Banking on (Foreign) Banks 2007-10-26 22:37:09 The go global push has created a lot of controversy in relation to resources in the past, but more recently the focus has been on the impact of China’s investment into financial services firms (a flow of money that has traditionally gone the other way). Further to reports on Chinese stakes in Blackstone and Barclay’s, reports also now indicate that Bear Stearns and UCBH in the US, and Standard Bank in South Africa, are also to get some Chinese shareholders. (AFP) “The Industrial and Commercial Bank of China said Thursday it would pay 5.5 billion dollars for 20 percent in South Africa’s Standard Bank, in the largest Chinese acquisition in the financial field ever. …China’s CITIC Securities and Wall Street icon Bear Stearns announced a strategic alliance earlier this week. The deal involves investments of at least two billion dollars. Earlier this month, China Minsheng Bank said it planned to buy 9.9 percent of UCBH Holdings Inc. for up to 317 million dollars in the ...

Fresh Produce Logistics in China 2007-10-25 17:05:51 One of my very first projects in China involved a study of 400 farmers in the Jiangsu province bringing agriculture to market. My team at the time went through town after town and interviewed farmers, wet market buyers, truckers, and food processors to understand the process as it stood .. .and we used that to develop our platform. It was one of the most interesting projects that I worked on, and one that I wish had received the funding (we were 3 years too early). So, while doing some research on trucking in China, I ran into a report online entitled The supply chain and management of fresh produce in China (PDF Report Here) by Huang Zu-hui, Song Yu and Liu Dong-ying of Zhejiang University that examined the process by which produce makes its way from the farm to the market (retail, wholesale, and export).. and it reminded me of many of the things we found in our earlier study. While obviously a rough draft, and written by students who were ag. majors rather than logistics majors, they ...