Jul. 25 – The Mayor of London, Boris Johnson, famously quipped that his policy on cake is to have it and to eat it. The Chinese authorities have long employed the cake policy on the subject of corrupt practices of foreign pharmaceutical companies.
In the last week, we have seen a growing official condemnation of the activities of GlaxoSmithKline, the British drugs giant. This has now developed into a plethora of foreigner-bashing in the Chinese state-controlled media. The chief investigator in the GSK case has hinted that other foreign companies may also have a case to answer. Meanwhile, the international media coverage of this story has focused on the alleged wrong-doing of GSK and the doctors and officials who have been corrupted. The impression is of a chaotic environment where the authorities have permitted, due to widespread bribery, a system favoring the machinations of foreign-invested pharmaceutical MNCs. What has not been discussed is that corruption in the drugs business is not merely a result of lax regulation and enforcement, but is a direct result of the regulatory landscape. The systems failings are not merely tolerated by the authorities, but are in fact an inevitable result of the regulatory framework controlling the sale and prescription of drugs. Continue reading
By Christian Fleming and Shirley Zhang
May 28 – Development zones are not a Chinese creation, but China in particular has found tremendous success with this economic tool. Historically, the liberal business environment in these areas have allowed foreign enterprises to operate more comfortably in the Chinese business environment, sheltered from the bureaucracy and red tape that often characterizes the rest of the country while at the same time such businesses could benefit from preferential policies, greater resource availability, and prime locations within regional hubs of creativity and innovation. Continue reading
Posted in Automotive, Business, Central China, Chemical & Pharmaceutical, East China, Economy and Politics, FDI and Foreign Trade, Featured, Manufacturing, Markets, Northeast China, Shipping & Logistics, South China, Technology, West China
Where to source Chinese expertise and academic research from within city clusters around China
Feb. 23 – China originally began clustering its national industries under directives from Chairman Mao Zedong in the early 1950s. This occurred during the Cold War era when it was feared that either Soviet or American attacks on cities such as Beijing and Shanghai could wipe out much of the nation’s industry, centered at that time in these cities. Strategic industries were thus spread across the country to protect against attack and invasion.
The legacy of this today has been that different industrial clusters have developed in different areas of China. In order to develop an effective supply chain, source universities with the right set of talents, and recruit the right type of workers, attention needs to be paid to the regional differences around China as concerns available expertise. Continue reading
Posted in Automotive, Business, Chemical & Pharmaceutical, Economy and Politics, FDI and Foreign Trade, Manufacturing
Tagged China Clusters, China Industry Report, China Manufacturing, Pearl River Delta, Professional Clusters, Yangtze River Delta
Will rare earths be next?
By Vivian Ni
Feb. 1 – Following two years of investigation, the World Trade Organization’s (WTO’s) Appellate Body ruled on Monday that China’s use of export duties and quotas on nine types of industrial materials has breached free trade rules. The ruling could affect the organization’s judging of other similar cases where export restrictions are used to hoard domestic natural resources.
The case, filed in 2009 by the United States, the European Union (EU) and Mexico, accused China of imposing trade barriers to the exports of nine minerals: bauxite, zinc, yellow phosphorus, coke, fluorspar, magnesium, manganese, silicon carbide and silicon metal, all of which are widely applied in industrial production. Continue reading
Oct. 20 – China will start levying anti-dumping duties on imports of caprolactam – an organic compound that is used in the manufacturing of synthetic fibers – from the United States and the European Union, according to the Chinese Ministry of Commerce (MoC).
The MoC released the “Final Determination on the Anti-dumping Investigation into the Caprolactam Imports from the United States and EU (MoC Announcement  No.68)” on October 18, announcing the collection of anti-dumping duties on imports of U.S. and EU-originated caprolactam will start on October 22, and last for the next five years. Continue reading
Posted in Chemical & Pharmaceutical, FDI and Foreign Trade, Finance, Tax and Accounting, Legal and Regulatory, Manufacturing, Regulatory Update
Tagged Caprolactam, China Anti-dumping, China Anti-dumping Duty, China Fabrics, China Nylon 6, China Plastics, China Synthetic Fibers, China Textiles, Ministry of COmmerce, The European Union, The United States
Sept. 29 – China’s Ministry of Commerce (MOFCOM) released its 2010 Rankings of National Economic and Technological Zones on September 21. At present, China has 128 national-level development zones, 90 of which were included in the 2010 MOFCOM rankings.
According to the rankings, the top 10 development zones remained unchanged from 2009. Most notably, TEDA has been ranked the best national development zone in China for the 14th consecutive year. Continue reading
Posted in Automotive, Business, Chemical & Pharmaceutical, Economy and Politics, FDI and Foreign Trade, Manufacturing, Markets, Technology, Textiles
Tagged Development Zones, Great Wall Motors, Jiangsu Province, John Deere, Ministry of COmmerce, Motorola, TEDA
Mar. 9 – Although happy to see its rapid economic growth, China is growing increasingly concerned over the heavy pollution it is generating at the same time. A recently released document that calls for stronger quality control in the exploitation and smelting of heavy metals is a sign that China is paying more attention to encouraging an environmentally-friendly economic development model.
China’s State Council recently passed the “Twelfth Five-year Plan to Combat Heavy Metal Pollution” requiring that pollution from heavy metal emissions in critical areas be reduced by 15 percent, compared to 2007, by the year 2015. For all other areas, the pollution levels from heavy metal emissions should not exceed the levels reached in 2007. Continue reading
Jan. 20 – China and the United States announced a new public/private sector joint partnership yesterday focusing on the healthcare industry. The U.S. Trade and Development Agency, the U.S. Department of Health and Human Services and the U.S. Department of Commerce joined with China’s Ministries of Health and Commerce to announce their support for the establishment of the new organization.
“The economic and social development of any nation depends on the health and productivity of its people,” said U.S. Department of Health and Human Services Secretary Kathleen Sebelius. “This partnership builds on a strong foundation of bilateral cooperation in this critical sector of our economies.” Continue reading