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Is Dell Looking to go Higher with Haier? 2007-10-01 23:33:11 It has only been a few days since Dell announced its partnership with Gome, and they are wasting no time at all before stirring up the rumor mill once again. According to the Digitimes article Dell and Haier Group reportedly interested in Founder-acquisition for China market boost, Dell and Haier are looking at the possibility of joining forces to rollup Founder. you may remember last year I mentioned Haier taking a stake in Founder.. and how I thought from a supply chain and distribution perspective this deal made a lot of sense. Well, if Dell and Haeir come together on Founder, and both Dell and Founder computers can reach consumers through Haier’s distribution network and GOME’s network.. all using Haier’s world class logistics infrastructure.. well, I would say you have the makings for a potentially big deal. One that Legend/ Lenovo - IBM are going to follow very closely. Read Original Post Here ... Dell

Is China Export-Led? 2007-10-01 09:32:50 UBS Managing Director Jonathan Anderson recently released an excellent report entitled Is China Export-Led? that is a must read. It is one of those documents where everyone will learn something or have a myth busted Part of their Asia focus, Jon and his team have 1-2 reports that come out each week, and this week they have decided tolook at one of the biggest myths (”The Granddaddy”) surrounding China and its development… that it is led by exports. Peeling the layers of the onion off, Jon and his team structured the report to address the following issues (many of these issues are supported by their own reports) to understand the actual contribution of exports to China.. and more importantly what that means in terms of global exposure should something occur (US recession…) Please note: as I am not a master or PhD in economics and as it has been 10 years since I have looked at an econ book, I would suggest you read the report yourself as what I am about to writ ...

October Holiday Reading List 2007-10-01 09:32:49 With the October holiday no upon us, and the theoretical week holiday now in sight, I thought I would pass along some of the articles I have set aside for when the phone stops ringing. Macro China: Is China’s Growth Real and Sustainable? - (PDF Here) Toward Consumption - (PDF Here) Second Tier Cities: Chengdu: An Up-and-Coming Market in China’s Heartland - (PDF Here) Variations in the economic development of China’s provinces .- (PDF Here) Structural Change and Energy Use: Evidence from China’s Provinces - (PDF Here) Logistics related The Air Cargo Market between China and the United States:Demand, Developments and Competition - (PDF Here) China’s Need For Ultrahigh Speed Railways - (PDF Here) Sustainable Development: Sustainable Real Estate Development in China - (PDF Here) Accelerating the Commercialization of Fuel Cell Vehicles in China - (PDF Here) China’s Cities at a Crossroads: The Need for Smart Growth - ( PDF Here) Status and Planning on Renewable Energy De ...

Weekly Roundup 2007-10-01 09:32:48 While I have had more time this week to catch up on writing, there are still a lot of stories that I cannot tackle for lack of time, or experience… but that doesn’t mean they aren’t important… so, here is a list of items that I think everyone should take 10 minutes out and read through. China no longer exporting deflation / Rising prices expected to pose inflationary danger for Japan, world economy, China inflation near 11-year high , and Higher Prices to Hit Americans as Labour Costs, Demand Rise in Asia While many Americans are discussing lead toys and product failures, there is another more serious discussion beginning to occur, and it is one that is far more serious. The discussion relates to the rising costs in China, and how that will filter back into the wider global economy. For years, foreign companies and governments were able to benefit from China’s reduced cost base, but with the RMB depreciating, the VAT rebate being reduced, and raw materia ...

Are Super Logisitics Mergers in China On the Way? 2007-10-01 09:32:48 While recently looking further into the Yangtze, recent container traffic patterns, and the companies operating on the Yangtze we have been able to see that there is something on the horizon… something in the planning among the big 5 state owned shipping companies (COSCO?China Shipping?China Changjiang Shipping, Sinotrans, and China Merchant Shipping). These big five central companies have all develop their own specialties and market very well.COSCO, China Shipping, China Merchants and Changjiang are all heavy hitters in the shipping area with COSCO and CSL primarily export shippers and China Merchants and Changjiang primarily river shipping. Sinotrans however has carved out their niche not in shipping, but in freight forwarding, an area closely aligned with all four of the shippers. Where this gets interesting is that China is in desperate need to begin privatizing its state assets, and with nearly 20% of GDP going to logistics, there is clearly ways to find efficiencies& ...

What Level of Product Failure is Acceptable? 2007-10-01 09:32:47 The last 3 months have been a nightmare for anyone with a Made in China sticker on their goods, and for China as a whole. Through this process, one of the things I keep coming back to is “what level of product failure is acceptable”. For consumers, the first response is none. No product failures should be accepted. that 1 is too many…. but is that reasonable? Is it economical? or have consumers gone a bit overboard? In debating this, there are three examples that have particularly bothered me, or at least have led me to ask this question: 1) FTS/ Hongce Tires - One of the first cases to hit the press, this story received a lot of attentention early on. Through press accounts, of the 450,000 or so tires imported, 2 tires failed. a failure rate of .0004%. 2) Mattel - Probably the most covered of all the recalls, Mattel has announced 3 recalls this year of more than 20 million toys across multiple categories. 20 million toys is a lot of toys, and according to a WS ...

World Economic Forum on Youtube 2007-10-01 09:32:46 From September 6-8 the World Economic Forum held its meeting of New Champions in Dalian, which is one of China’s newest champions… for investment. A testament to the power of Web 2.0, and the power of the internet, the entire summit has been put on Youtube, at the World Economic Forum Youtube Channel. With 22 videos, roughly 20 hours of showing, one would need a weekend of non-stop broadband and Starbucks to watch the entire summit worth of videos…. However, I do suggest spending some time watching those that you feel are most pertinent to your organization or your own interest. Overall, the discussions themselves are very interesting, and if there is one theme that I see throughout is that the level of Chinese panelists was much higher than the foreign side (on average). As Rebecca McKinnon pointed out in her analysis of the Soft Power debate, Thomas Friedman was out of his element.. and his comfort zone…. and he was not the only one. As I have spoken on ... Youtube

Mattel Apologize to China… TO CHINA! 2007-10-01 09:32:44 It is funny how 6 weeks can make all the difference, and how villians today can be vindicated through time. Well, China… take your victory lap! Maybe I am going making too much of it, but the fact that the COO of Mattel recently apologized to senior leaders of China for the recent recalls (and their failure to properly assess the responsibility) must be a huge boost to Beijing who has contended all along that the majority of recalls were design related. Now.. if only FTS would come out and take responsibility for their products…. Read Original Post Here ...

A couple of weeks in Review 2007-10-01 09:32:43 It has been a few weeks since the roundup, and whlie it is tempting to make up for lost time and list 10 of the most interesting articles and reports for you, I am going to keep it to 5. however, I must apologize that these are more than a week of the press… so, at risk of writing about out of date topics, here are 5 of the most relevant and topical articles/ publications I have seen lately.. White Collar Photo Gate h/t to ESWN for bringing this story to light…. It is a story that really makes me wonder why expats are often unable to exercise any common sense while in China. The topic isn’t new…. Executive MNC gets involved with young woman working (Senior Executive Assistant) within the company. Nothing new in China… nothing shocking… but extremely idiotic. Especially when someone hacks the accounts, plasters the pictures of the girl all over the internet, and the mob starts looking for heads. My guess is that this issue will reach HQ, and some ...

New Poll: VAT Rebate Removal - What’s Your Impact? 2007-10-01 09:32:42 While the removal of the VAT rebate at the end of this year is purely rumor at this point, the fact is that at some point it will be removed. For some that will mean the removal of a rebate for up to 17% of their material costs, and that could lead to signigicantly reduced profits for exporters. So, the question is. what impact would the removal of the VAT rebate have on your operations? Would it take you out of the market? Would your customers absorb the cost? Is your market share big enough to hold pricing and wipe off a few competitors? Let us know. And if you don’t know… I suggest you clear the schedule of your accountant, CFO, Sales Manager, and production team. Because it isn’t a matter of if, it is a matter of when. Read Original Post Here ...

Call Your Accountant… VAT Rebate is Going Away!! 2007-10-01 09:32:40 For those of you who were readers of All Roads earlier in the year, you will know that I beat the majority of news services to the punch when reporting the reduction of the VAT rebate for 3000 goods. Well… if our sources are correct (same sources as last time), then we are about to see the end of the VAT rebate system for all or part of the goods still enjoying these rebates. Update: I am not expecting a 100% across the board removal of the VAT rebate regime.  I would expect goods in the 5-8% rebate category as highest risk, and while China will probably follow HK and other countries with some ongoing VAT rebates, there are certainly going to be changes in the near future for many categories. Now, I am not suggesting anyone start ramping up production to beat the clock, but I am suggesting that readers begin factoring in the fact that VAT is going away. It may not be tomorrow, it may not be at the end of the year (current rumor), it may not be next summer (my original expecta ...

Chengdu Investment News 2007-09-30 12:27:38 It is 11pm on the 30th… and my friends in Chengdu have once again proven they are hard at work (they should be on vacation). For software talent training, Chengdu to use European Standard for the first time On September 8, the first International Lecture on Skills Standard and Training SISE (Sino International Software Engineer)/SFIA (Skills Framework for Information Age) for EU Software Outsourcing Talents 2007 with the co-sponsorship of Ireland Cornerstone International was held in Chengdu, which marked the full landing of EU’s outsourcing talent skills standard and training system in Chengdu. It was also learned that Ireland National Chamber of Commerce has chosen Chengdu as “Overseas BPO Base for Ireland National Chamber for Exports”. Chengdu airport’s easy and smooth aerial transportation ranked second in China It was learned on September 12 that China Association for Civil Airports recently published the Rating on Easy and Smooth Aerial Transportation of ...

October Holiday Reading List 2007-09-29 08:23:25 With the October holiday no upon us, and the theoretical week holiday now in sight, I thought I would pass along some of the articles I have set aside for when the phone stops ringing. Macro China: Is China’s Growth Real and Sustainable? - (PDF Here) Toward Consumption - (PDF Here) Second Tier Cities: Chengdu: An Up-and-Coming Market in China’s Heartland - (PDF Here) Variations in the economic development of China’s provinces .- (PDF Here) Structural Change and Energy Use: Evidence from China’s Provinces - (PDF Here) Logistics related The Air Cargo Market between China and the United States:Demand, Developments and Competition - (PDF Here) China’s Need For Ultrahigh Speed Railways - (PDF Here) Sustainable Development: Sustainable Real Estate Development in China - (PDF Here) Accelerating the Commercialization of Fuel Cell Vehicles in China - (PDF Here) China’s Cities at a Crossroads: The Need for Smart Growth - ( PDF Here) Status and Planning on Renewable Energy De ...

Central bank: China to further rein in credit growth 2007-09-29 01:11:03 (Source: Xinhua) BEIJING, Sept. 29 - The policy makers of China’s central bank said at their third quarterly meeting that the country should carry out “moderately tightening” monetary policies to further rein in credit growth. They said the central bank should coordinate the adjustments of interest rates and exchange rates and step up controls over the liquidity within the nation’s banking system to maintain “rational” growth of lending. The policy makers suggested a close watch on the potential impact of the U.S. subprime crisis to the Chinese financial market despite the nation’s economy being “generally stable”. Increasing inflationary risks and rising assets prices have added to the problems of excess investment growth and widening trade surplus, they said. The central bank should carry out studies on the problems to find a solution and “improve the quality of China’s economic gr ...

Weekly Roundup 2007-09-28 04:20:42 While I have had more time this week to catch up on writing, there are still a lot of stories that I cannot tackle for lack of time, or experience… but that doesn’t mean they aren’t important… so, here is a list of items that I think everyone should take 10 minutes out and read through. China no longer exporting deflation / Rising prices expected to pose inflationary danger for Japan, world economy, China inflation near 11-year high , and Higher Prices to Hit Americans as Labour Costs, Demand Rise in Asia While many Americans are discussing lead toys and product failures, there is another more serious discussion beginning to occur, and it is one that is far more serious. The discussion relates to the rising costs in China, and how that will filter back into the wider global economy. For years, foreign companies and governments were able to benefit from China’s reduced cost base, but with the RMB depreciating, the VAT rebate being reduced, and raw materia ...