Economy and Politics

U.S. Burdens Chinese Solar Panel Manufacturers with Anti-Dumping Tariffs

By Sofia Liska

May 22 – The U.S. Commerce Department has imposed tariffs of 31 percent to 250 percent on Chinese solar panels, upsetting American solar panel installers, Chinese solar panel manufacturers, and Chinese officials. In doing so, the U.S. government effectively sided with solar panel manufacturer SolarWorld Industries America, who claimed that Chinese companies were dumping their under-priced and illegally subsidized solar panels onto the U.S. market.

The United States had already imposed a tariff in March of between 2.9 percent and 4.73 percent in order to offset the illegal government subsidies received by Chinese solar panel manufacturers, but American solar panel manufacturers were not satisfied. Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade, Science and Tech, Technology | Tagged China Exports, China Green Energy, China Solar Panels, China Trade, Chinese Solar Panels, Green Energy, SolarWorld Industries America, Suntech, Trina Solar, U.S. Anti-Dumping Tariffs, U.S. Department of Commerce | Leave a comment

Why ASEAN Matters For Your China Business

The 2015 Free Trade Agreement will soon kick in. Is your China business ready?

Op-Ed Commentary: Chris Devonshire-Ellis

May 22 – The term “ASEAN” is cropping up more often these days, yet still many businesses in China are unaware of what it is and why it is gaining in importance. The basic answer is fairly simple – free trade across Asia. That means reduced or zero customs duties across a space that includes the 10 ASEAN nations in Southeast Asia, and includes China, India, Australia, New Zealand, Japan and South Korea. Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade, Featured | Tagged ASEAN, ASEAN Free Trade Agreements, ASEAN-China Free Trade Area, Double Taxation Agreements, Free Trade Agreements, Manufacturing in ASEAN, Manufacturing in Vietnam, Selling to China, Selling to India, Singapore Holding Companies | 1 Comment

China-Japan-South Korea Sign Trilateral Agreement and Launch FTA Talks

By Xiaolei Gu

May 14 – Leaders from China, Japan, and South Korea concluded the Fifth Trilateral Summit Meeting and signed the Trilateral Agreement for the Promotion, Facilitation and Protection of Investment (hereinafter referred as the Trilateral Agreement) at a summit in Beijing yesterday. The Trilateral Agreement represents a stepping stone towards a three-way free trade pact to counter global economic turbulence and to boost economic growth in Asia.

According to a joint declaration, the three nations will further enhance the “future-oriented comprehensive cooperative partnership” to unleash vitality into the economic growth of the three countries, accelerate economic integration in East Asia, and facilitate economic recovery and growth in the world. Continue reading →

Posted in Economy and Politics, FDI and Foreign Trade, Markets | Tagged East Asia, Foreign Trade, Free Trade Agreement, Japan, South Korea, Trilateral Agreement, Trilateral Summit Meeting | Leave a comment

China’s PBC to Cut Reserve Rate Requirement by 0.5 Percentage Points

May 14 – The People’s Bank of China announced on May 13 that it would cut the amount of cash that banks must hold as reserves by 0.5 percentage points (50 basis points) recently released statistics pointed to a sharper-than-expected slowdown of the economy. The cut, which is the second this year following the first cut in February, will be effective from May 18, 2012.

With this latest adjustment, the bank reserve requirement ratio will be reduced from 20.5 percent to 20 percent for large banks, while smaller banks will be required to maintain 16.5 percent of reserves. Continue reading →

Posted in Business, Economy and Politics, Finance, Tax and Accounting | Tagged China Banking, China Economy, China Finance, China Regulatory, China Reserve Requirement Ratio | Leave a comment

Hedging China – Manufacturing and Selling in India, Vietnam and Myanmar

Op-Ed Commentary: Chris Devonshire-Ellis

May 4 – As it becomes apparent that China’s slowdown is to have a greater impact than originally thought this year, debate needs to be constructed concerning whether to just ride any downturn out or to be proactive and go looking for new markets and production centers. With several prominent China economists suggesting that China’s growth has flat-lined and given increasing costs in China, there is a need to consider other options. Here is an overview of India, Vietnam and Myanmar and what is happening in these different, yet rapidly-emerging markets. Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade, Featured, Markets | Tagged ASEAN, China Alternatives, China Economy, China Growth, China Manufacturing, China Overheads, Hedging China, India, Myanmar, Vietnam | Leave a comment

Experts Skeptical about China’s Economic Figures

May 3 – Patrick Chovanec, an economist and associate professor at the Tsinghua University School of Economics and Management expressed skepticism about China’s key economic figures in a recent article in the South China Morning Post.

“If investment merely remains stable compared to last year, you could lose 5 percentage points off GDP growth, bringing it to 4.5 percent,” Chovanec says.

Chovanec also cites examples of inflation, which he says is far higher than the Chinese government admits. Fresh milk he has delivered in China has increased in price by 33 percent over the past 12 months while over the last three years a KFC meal has increased by 53 percent and petrol by 50 percent. Continue reading →

Posted in Economy and Politics | Tagged China Economic Growth, China Economy, Marc Faber, Michael Pettis, Patrick Chovanec | 2 Comments

Devonshire-Ellis & U.S. Commerce Dept. – Trade Winds Asia, Singapore May 16

Dezan Shira & Associates founder to speak on China, India, Vietnam and emerging Asia

May 3 – Chris Devonshire-Ellis, founding partner of Dezan Shira & Associates, will be providing a keynote address at the annual U.S. Department of Commerce Trade Winds Asia event, held this year in Singapore from May 16 to May 18.

This program, now in its fifth year, promises to deliver tangible bottom-line results, as demonstrated by a proven track record of success in Turkey (2008), Poland (2009), Brazil (2010) and Mexico (2011), attracting well over 1,000 international business executives from across the United States.

As an official U.S. Department of Commerce multi-sector trade mission, Trade Winds Asia offers participants a unique venue for connecting to business opportunities in Asia. Singapore, the host city for Trade Winds Asia, is an ideal launching point for expansion throughout the region. Continue reading →

Posted in Economy and Politics, FDI and Foreign Trade | Tagged Chris Devonshire-Ellis, Dezan Shira & Associates, Events, Trade Winds, U.S. Commercial Services, U.S. Department of Commerce | Leave a comment

China’s Four Ocracies

The path to power in China is still dominated by revolutionary political divisions

Op-Ed Commentary: Chris Devonshire-Ellis

May 2 – Recent events in China, ranging from the jostling of power for seats on the Central Commission for the CCP, the downfall of Bo Xilai, and the recent escape of activist Chen Guangcheng from house detention in Shandong have all displayed to varying degrees the changing faces of China’s evolution. In fact, in over 20 years in China I have never personally seen anything quite like the vying for influence being acted out in today’s contemporary political scene. The fact that they are observable at all says perhaps rather more for certain factions that are involved in the path for reform than the oft-lauded “freedom via internet” that many believe is behind an unprecedented media coverage of the struggles and power plays currently underway. Continue reading →