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Chengdu’s News for Sept 19 2007-09-19 16:44:11 Following a couple weeks of break, I thought this would be an easy post to get me back into the saddle…  here is the news as reported by my friend Jessica at the Foreign Investment Bureau 468 Project will roundly upgrade Chengdu’s informationization next year In order to cooperate with the application of China’s first “ministry-province-city co-built interactive demonstration zone of informationization and information industrialization”, on August 26, Chengdu’s informationization office published the recent project construction plan: Chengdu is planning to gradually improve four basic systems which are “networking support”, “data resources”, “information security” and “application services”, start up 6 key informationization projects as well as 8 major application demonstration works, which are expected to be finished next year. It is revealed that the projects plan to absorb social capital and government direct investment of over RMB 1.2 billion, and ...

Ningbo Ruyi Joint Stock Co., Ltd. 2007-09-19 08:50:32 Ningbo Ruyi Joint Stock Co., Ltd. specializes in manufacturing Hand Pallet Trucks, Electric Pallet Trucks, Electric High Lift Trucks and Electric Scissor Lift Tables with “XILIN” as their brand, is the largest manufacturer for hand pallet trucks in Asia. Our assets is 1.8 hundred million RMB. And our bank credit grade is AAA. We have 618 workers, and 115 technicians and engineers. (more…) ...

Inflation Hits A 10-Year High (Again) 2007-09-18 09:31:44 The Chinese economy continues to report rapid growth, and to cause some concern as inflation hits a 10-year high of 6.5 percent (though that is partly driven by the food sector, and especially problems with pork supply). The Asian Development Bank (ADB) reports (via Bloomberg): “Brisk exports, strong investment and buoyant consumption will lift economic growth in China to 11.2 percent this year, up from an earlier estimate of 10 percent, with the inflation rate breaking 4 percent, says an Asian Development Bank (ADB) report released here on Monday.” ADB (via Xinhuanet) suggests that inflation for the year could be 4 percent, and that GDP growth could hit 11.2 percent. Another Bloomberg report adds that the trade surplus “widened 33 percent to $24.97 billion, the second-highest monthly total”. The only figure that seems to have slowed down (a bit) is that for industrial output, which seems to have felt the impact of recent export curbs, and which fell to 17.5 percent in August f ...

Higher Rates…Higher Markets 2007-09-18 09:31:43 While the US is engulfed with “toxic debt” problems, and there is “a run” on a UK bank, the Chinese markets are registering new records, despite more attempts to cool them, according to China Daily: “China’s major stock index shrugged off the latest monetary tightening measures on Monday, rising more than two percent to hit an all-time high. The benchmark Shanghai Composite Index increased 109.21 points, or 2.06 percent, to close at 5,421.39 points. The Shenzhen Composite Index rose 1.99 percent to 1,512.29, while CSI 300 Index went up 1.88 percent to 5,498.90. The rally came after the central bank announced an interest rate hike on Friday, the fifth so far this year and the third in less than two months. The latest monetary tightening was a response to an 11-year high inflation, a rapid growth in investment and industrial production, and trade surplus in August.” As the UK experience of the last few days shows, markets can move quickly - in either direction - and ...

Don’t Quote Me (On “The China Price”) 2007-09-18 09:31:42 Following some difficult times for Chinese export quality… “It is now clear that part of the China price resulted from the shift of production from jurisdictions with strong regulation and high compliance costs, to those with light regulation and low compliance costs.” Arthur Kroeber from his article, Lessons for China Inc., in the August 20, 2007, hard copy of the China Economic Quarterly (CEQ) (h/t China Law Blog) The “China price” may still be cheap, but costs are continuing to move up for raw materials, labour…as well as regulation and compliance. And this is making companies like Intel move to second tier cities like Dalian, or to inland cities away from the coastal boomtowns. Read Original Post Here ...

Typhoon Wipha on the way… I need groceries 2007-09-18 05:40:59 I apologize for the fact that it has taken a natural disaster to provide the catalyst for my first post in 2 weeks…. but with Typhoon Wipha bearing down on Shanghai, I figured no time like the present. According to the Shanghai Daily, this will be bigger than Typhoon Saomi that tore all my trees out 2 years ago. If you are external to Shanghai, and are in need of something from someone in Shanghai, I would prepare for a delay. Personally, between DVDs, I plan to use the time to catch up on some blog post… but I am sure there will be those who chose to just watch DVDs and claim they couldn’t find a battery for their blackberry. Read Original Post Here ...

Flying The Communist Skies: Air Koryo To North Korea 2007-09-17 06:58:38 [Editor’s Note: I’ve never traveled to North Korea, but dearly wish to do so. As an American, the likelihood is slim, alas. I envy PRC Chinese who, following the footsteps of the presumably still incarcerated Yang Bin — the ex-flower magnate, embezzler and bankrupt of Shenyang who had planned to corner the cross border trade — flit over to Shinuiju to gamble on the crap tables installed by Stanley Ho of Macao casino fame and fortune. I long, redheaded, white-skinned Chinese speaker that I am, to turn the heads and fix the eyes of those North Koreans who’ve never seen a Westerner, as I did with PRC Chinese in the early 1980s. In essence, to turn back the calendar by thirty years and re-visit ancient Asian “communism,” still on display in its only remnant, the death defying holdout. I wonder how I would apprehend it this time around. Most likely with the same desperate sadness I did then, but who knows? I find any first-hand account of N ...

Management Flows Downhill 2007-09-15 05:54:18 China ex-pat managers: You shouldn’t be directly managing more than one layer of your organization’s stucture – at least in your sales / marketing department. If you aren’t tagging your older guys to do the worst, most difficult management tasks, then you are passing up a great training/development opportunity – and depriving yourself […] Read Original Post Here ...

China Marketing — Clients, End Users and Profiling 2007-09-15 05:54:17 Knowing where customers are coming from is a senior management responsibility – and it is strategic to your business. Many China-based international managers are delegating too much client contact to front-line staffers who tend to be paid little, trained less and leave quickly. Do you have a thorough demographic profile of your own target market? [more] Analyze […] Read Original Post Here ... Marketing

China Marketing (con’t): Matching Resources and Payout 2007-09-15 05:54:17 Last week we boldly asked a very tough question: Who are your customers — and who do you want them to be? Now we are back to ask you another potential stumper: Where are you spending most of your marketing budget? Are you spending the most time, money and manpower going after […] Read Original Post Here ... Marketing

China HR: Orientation Programs 2007-09-15 05:54:16 Sometimes the most basic concepts are the hardest to explain. Fortunately you usually don’t have to worry about explaining the obvious – unless you have decided to manage in China. Then you’ll need to figure out how to explain big-picture issues that seem obvious and “common sense”. One of the things […] Read Original Post Here ...

Are your China sales managers really managing – or just doing their old jobs at a higher level. 2007-09-15 05:54:15 Sales management in China has two aspects: operational and leadership. Good sales-managers are usually the best sellers that the company can lay its hands on. But they also usually have to lead a team that is probably quite management-intensive and is prone to personality and relationship issues. Maybe it’s a […] Read Original Post Here ...

Sales HR in China — Strategic Sr. Manager Wanted. Experience Helpful. 2007-09-15 05:54:15 Just saying Sales HR is strategic to your China business is not enough. You have to step up and act it. That means getting engaged with a wide range of people and problems at every level of your sales department. I love watching managers and owners pass responsibility down the line – […] Read Original Post Here ...

“Rich Foreigner Syndrome” Claims Another Victim 2007-09-15 05:54:14 British Reuters has a sad story today that all international managers in China can learn from: China recall toy factory boss hangs himself: report “Zhang Shuhong, a Hong Kong businessman in his 50s and boss of the Lida Toy Company in the southern province of Guangdong, was found dead in his factory workshop on Saturday, […] Read Original Post Here ...

Working with Local Chinese Distributors and Sales outsourcers 2007-09-15 05:54:14 It sounds so tempting. You are a western service provider, designer or importer. You need to make sales – and you’ve already tapped out your own AmCham, alumni association and sports team. Selling in China is much harder—and time consuming – than you had originally projected. Maybe working with a […] Read Original Post Here ...