Economy & Trade

Understanding China’s Youth Consumer Marketing

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Interview with Kevin Lee, COO – China Youthology

China Youthology offers provocative insights about Chinese youth and facilitate the use of insights to spark actions, to help brands be part of youth culture, to be relevant and meaningful to today’s individual and society.

Please tell us a bit about China Youthology and what it does.

China Youthology is a consumer insight agency and one of the top quality research companies in China. Youths in China today are really striving to find meaning and we believe brands have a role to play in that. We focus on digging very deep into youth culture, understanding youth and their changing values, including their lifestyles, behaviors, what they say, what decisions they make, what they buy, etc. We take all that information and we help brands understand and bring them closer to young people today. Continue reading…

Leveraging India to Sell More China Manufactured Products

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Op-Ed Commentary: Chris Devonshire-Ellis

The dynamics between China and India have long been one of Asia’s more fascinating relationships. Both are vast countries with similar population sizes. Both are ancient cultures, and have long had significant impact upon the development and shape of the modern world over their centuries of existence. Yet they can also appear mysterious, impenetrably exotic and inscrutable for the foreign investor. Much also has been written about the rise of China and India, and their very different paths over the last twenty years. China is often projected as superior, dynamic and modern, and India as dirty, poor and archaic.

Yet in fact, India has been following China’s development progress at a steady clip for much of the past 15 years. Growth rates have reached 8 and 9 percent and, although “languishing” at the 5-6 percent mark for the past two years, the fact remains that India has not been at all slovenly in its development. Much needed infrastructure has been and continues to be put in place. The Delhi and Mumbai international airports are first rate, the Delhi Metro system is arguably better than Beijing’s, and ring roads and express highways continue to spring up in all major cities, and crucially, between them. Continue reading…

Leveraging ASEAN to Sell More China Manufactured Products

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China Outbound

Op-Ed Commentary: Chris Devonshire-Ellis

One of the benefits of being part of a firm that now has a Pan-Asia presence is the different viewpoints and perspectives it provides in terms of business opportunities beyond China. Although China will remain a heavyweight in Asia, it is changing, and manufacturers that came to China twenty years ago to manufacture cheap products and then resell overseas, primarily back to the United States and Europe, are having to change their business models.

It is now China that is developing as the “must be there” consumer market, with its middle class consumer base expected to rise from about 250 million today to some 600 million by 2020. That is the equivalent of adding the entire population of the United Kingdom as new affluent consumers, every year. Asia, meanwhile, is also going through a period of rapid economic growth and wealth creation. Continue reading…

Hengqin New Area Announces Preferential Policies

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GUANGZHOU – On Mar 27, the Ministry of Finance and State Administration of Taxation jointly issued a Preferential Corporate Income Tax (CIT) Catalog for Hengqin New Area (hereinafter referred to as “Preferential Catalog”), which lists the industries that will be eligible for the preferential CIT rate of 15 percent.

Hengqin New Area, located in the Zhuhai Special Economic Zone in Guangdong Province, is situated next to Macau and only a stone’s throw away from Hong Kong. Given its geographic advantage, the Hengqin New Area is the first pilot zone of the “one country, two systems” policy and has already attracted over RMB226.3 billion (US$36.4 billion) total investment so far. It is equipped with high-quality development resources and advanced management mechanism, as well as provides the most preferential investment policies in South China. Continue reading…

Economic Cooperation to Play Stronger Role in China-France Relationship

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SHANGHAI – Several high-level trade deals were signed between China and France during President Xi Jinping’s three-day visit this week as one stop on a wider European tour.  In the largest of these agreements, French investors were granted a RMB 80 billion (US$12.9 billion) quota to invest in mainland Chinese markets as part of a campaign to promote the yuan as an international currency.

Other deals focused on the automobile and aviation industries: Chinese automobile manufacturer Dongfeng purchased a 14 percent stake in its French counterpart PSA Peugeot Citroen and plans are in the works for China to purchase US$20 billion of aircraft from Franco-German manufacturer Airbus. Continue reading…

China Outbound: Shifting Demographics and Manufacturing Trends in Asia

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Why and Where Foreign Manufacturing Investment is Slipping out of China and into Asia 

In this edition of China Outbound, we highlight the shifting demographic dynamics taking place across Asia and explore their impact on manufacturing centers throughout the region. As China grows from a manufacturing-focused economy to one driven by consumer demands, these demographic trends will be of great interest to companies looking to establish a manufacturing presence in Asia to serve China’s expanding market. To stay up-to-date with the latest trends across China and Asia, subscribe to our complimentary weekly newsletter concerning legal, tax, investment and regulatory updates throughout Asia. Continue reading…

Frankfurt Beats London to Become First RMB Clearing Hub Outside Asia

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SHANGHAI – Germany’s Deutsche Bundesbank and the People’s Bank of China signed a memorandum of understanding (MoU) on Saturday that will establish an RMB settling and clearing service in Frankfurt. Coinciding with Chinese President Xi Jinping’s visit to Berlin, the new MoU will make Frankfurt the first hub for clearing RMB trades outside Asia – narrowly beating London’s Bank of England, which will sign a similar MoU today.

Clearing and settling are essential for international finance and entail converting a promise of payment into the actual movement of money from one bank to another. Continue reading…

China Law Firm Acquisition Market Heats Up with Multiple M&A Deals

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SHANGHAI – The push to get into the Chinese legal services market has been heating up with the announcement that Ernst & Young, one of the “Big Four” auditors, have acquired Shanghai-based law firm Chen & Co. Meanwhile, two of China’s largest domestic firms, Jun He and Zhong Lun, have proposed a merger deal that will see them become the largest Chinese law practice.

Along with King & Wood, whose own merger with Mallesons took place just two years ago, these firms made up the “Big Three” law practices in mainland China. Continue reading…