Industries

Sales, Import, and Manufacture of Alcoholic Beverages in China

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Foreign beer and wine consumption is increasing significantly in China. In 2016, Chinese consumed 567.5 million liters of imported wine, with bottled wine leading the total imports, followed by bulk wines and sparkling wines, according to statistics from the China Association for Imports and Exports of Wine and Spirits. During the same period, beer imports grew by 18.7 percent in volume to 598.5 million liters.

The rise of global consumer culture in China and consumers’ increased desire for premium liquor has largely driven this growth. Rising disposable income, increased exposure to Western lifestyles, and growing distrust of domestic liquor are among other factors that have contributed to the changing trend.

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China’s Most Polluted Cities – What it Means for Business

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By Gidon Gautel 

Chinas Most Polluted Cities BANNER

Five of China’s ten most polluted cities are located in Hebei province in the country’s north, with the city of Shijiazhuang ranking the highest, according to the latest data from the World Health Organization’s (WHO) Ambient Air Pollution Database.

WHO information shows that air pollution in certain areas of China has markedly improved since 2011. Beijing, which was ranked the fifth most polluted city in China in 2011, has dropped out of the top 20. This is partially due to increasing efforts by the government to address air quality issues, though it still ranks 12th for levels of PM2.5.

The drive to tackle China’s air pollution presents a variety of opportunities for foreign investors. Foreign businesses in green industries will benefit from easier market entry and greater demand for cleantech products, while firms in highly polluted cities will enjoy higher retention rates for employees as a result of cleaner air. However, significant challenges remain as China continues to pollute heavily and numerous obstacles will have to be overcome to successfully curb air pollution.

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Why Ford Chose China Over Mexico

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By Gidon Gautel

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US-based Ford Motor Company recently announced plans to expand automotive production in China. Ford officials had initially planned to manufacture its Ford Focus model in Mexico; representatives said the decision to move Focus production to Chongqing in 2019 would help the manufacturer avoid unnecessary retooling and investment costs.

A statement on Ford’s website said, “Ford is saving US$1 billion in investment costs versus its original Focus production plan”, before adding that the plan will improve the company’s financial health and improve its manufacturing scale in China.

Ford President Joe Hinrichs stated in a radio interview that the biggest advantage is that the move will allow Ford to “leverage existing capacity, and frankly invest in one less plant to build the Focus worldwide, and that involves things like tooling for the body shop”.

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Exporting Food Products to China: A Step by Step Guide

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China has a multi-layered food regulatory system to ensure the quality and safety of imported food items. Every year, however, a large amount of food imported into the country is either returned or destroyed due to lack of compliance or irregularity in food quality.

This causes a significant loss to both the importing and exporting companies. In times of greater transgression, the import license may be revoked and the companies may be barred from future trade.

Keeping in mind the high business risks involved, companies must stay abreast of the latest food regulations and ensure the conformity of the products to the necessary import procedures. In this article, Dezan Shira & Associates and the Silk Initiative will introduce some of the many certifications, regulations, and procedures required to export food products to China.

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Investing in China’s Green Industries

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By Alexander Chipman Koty

After US President Donald Trump announced the US would pull out of the Paris climate agreement, French President Emmanuel Macron stated “Now China leads.” China is currently the world’s largest polluter – what was Macron thinking?

China has fully embraced renewable energy and clean technology to solve its pollution problem; the country is now global leader in emerging green industries. The government has consistently demonstrated its willingness to invest heavily in green industries to resolve its pollution problem and support green industries with investment incentives and preferential policies.

Indeed, the Business and Sustainable Development Commission (BSC) recently reported that businesses stand to gain a combined US$2.3 trillion from solving China’s various environmental issues.

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Consumer Trends in China and India’s F&B Industry

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China and India are increasingly consuming global brands and foods in tandem with their rapid development. The two countries are, after all, the largest and fastest growing economies in the world, and account for one-third of the world’s population. Together, they also host two of the world’s most rapidly developing consumer markets.

Key drivers shaping this consumer market growth is the increasing GDP and greater consumer spending power in these countries, which in turn facilitate rapidly changing lifestyles, a growing aspirational middle class, and rising interest in health and wellness.

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Made in China 2025: Implications for Foreign Businesses

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By Zolzaya Erdenebileg and Weining Hu

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Made in China 2025 (MIC 2025) – an initiative to transform China into a hub for advanced manufacturing – has been met with curiosity, and some confusion, by observers since it was unveiled in 2015.

The international business community is curious about how effective the policy will be. Many wonder whether MIC 2025 will end up like Germany 4.0, which was successful in increasing Germany’s national industrial capacity, or Make in India, an initiative to encourage manufacturing in the country, which has not fully lived up to expectations.

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Pharmaceuticals Distribution in China: A Guide to the New Two Invoices System

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By Jake Liddle

At the beginning of this year, China’s National Health and Family Planning Commission, along with seven other ministries, issued a new policy designed to streamline pharmaceutical distribution channels. The policy, which regulators are piloting in a number of provinces before an expected countrywide reform in 2018, will change the way manufactures, distributors, sales, and compliance teams in the pharma industry operate from both a business and tax perspective.

The policy introduces a ‘two invoice system’, meaning that during the distribution process from drug manufacturer to hospital, only two tax invoices, or fapiao, may be issued. This aims to both reduce the cost of pharmaceuticals and to prevent corruption.

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Dezan Shira & Associates

Meet the firm behind our content. Dezan Shira & Associates have been servicing foreign investors in China, India and the ASEAN region since 1992. Click here to visit their professional services website and discover how they can help your business succeed in Asia.

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