Manufacturing

CEPA Rules of Origin for Hong Kong-Mainland Trade in Goods

Apr. 24 – In order to enjoy zero tariffs under the Closer Economic Partnership Agreement (CEPA), goods exported from Hong Kong to Mainland China must fulfill the rules of origin and show evidence of being “made in Hong Kong.”

The execution of the rules of origin is detailed in the “Customs Provisions of the People’s Republic of China on Executing the Rules of Origin for Trade in Goods under the Mainland/Hong Kong Closer Economic Partnership Arrangement (haiguanshuling No.106, hereinafter refers as ‘Provisions’),” which was promulgated in December 2003 and came in effect from January 1, 2004. Continue reading →

Posted in Business, FDI and Foreign Trade, Finance, Tax and Accounting, Legal and Regulatory, Manufacturing, Shipping & Logistics | Tagged CEPA, Closer Economic Partnership Agreement, Hong Kong, Made in Hong Kong | Leave a comment

Suzhou’s Development Zones – An Introduction to Xiangcheng District

By Michael Keller

Apr. 24 – An opening and project signing ceremony was held at Suzhou’s Xiangcheng District on January 11 in which 16 projects were allocated to different firms – 8 domestic and 8 foreign – with total investment amounting to RMB7.7 billion.

Twelve of these projects are in the categories of either advanced manufacturing (precision machinery, electronic equipment components) or emerging sectors (new materials, environmental protection). Among the firms included were PolyOne, Evans, Digital Innovation Display, and Doony. Continue reading →

Posted in Business, FDI and Foreign Trade, Manufacturing | Tagged Development Zones, Suzhou, Suzhou Industrial Park, Suzhou New District, Wuzhong, Xiangcheng District | Leave a comment

Why China’s Consumer Development is Assured

Lewisian turning point impacts upon China demographics with India close behind, meaning sales opportunities in China exist as never before

Op-Ed Commentary: Chris Devonshire-Ellis

Mar. 27 – China is about to become a great market for international businesses to sell to. That’s quite a statement, and I can recall similar proclamations being bandied about 20 years ago during the early days of Deng Xiaoping’s reforms, and then 10 years later when China eventually joined the WTO. Yet, as many a wise man noted – unless you were in the chopstick business, there weren’t actually a whole bunch of affluent Chinese looking to buy goods and services. That is now changing. But why? Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade, Manufacturing, Markets, Retail | Tagged Arthur Lewis, China Consumers, China Consumption, China Demographics, China Market, India Demographics, Lewisian Turning Point | 3 Comments

China’s Industry Clusters

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 | 1 Comment

Hedging China – Could Apple Manufacture the iPad in India?

Op-Ed Commentary: Chris Devonshire-Ellis

Feb. 17 – The recent dispute between Apple and Proview over the rights to the “iPad” trademark in China has seen some potentially disruptive actions taken, including legal requests made to China Customs looking to prevent Apple from shipping its iPads from China to overseas markets. This is a potentially highly damaging situation given that the bulk of global iPad sales are from Apple’s subcontracted China-based production facilities. The different component parts are being manufactured by a variety of foreign-invested (mainly Taiwanese) and Chinese suppliers before then being assembled, packaged, and exported. Continue reading →

Posted in Business, FDI and Foreign Trade, Manufacturing, Markets, South China | Tagged Apple, China Alternative, China India, China Manufacturing, China Trademarks, Proview | 3 Comments

China Vows to Increase Wages and Improve Employment

Op/Ed Commentary: Vivian Ni

Feb. 10 – In its latest 12th Five-Year Plan on Employment Improvement (“Plan”), China says it will continue working on increasing wage levels and controlling unemployment rates. Under these new targets, enterprises operating in China may face the challenge of increasing operational costs.

Minimum wage and social welfare
According to the new Plan, the average annual growth rate of China’s minimum wage levels will be over 13 percent between 2011 and 2015. The minimum wage standards in most areas will not be lower than 40 percent of the local average wage level. Continue reading →

Posted in Business, Legal and Regulatory, Manufacturing, Minimum Wages, South China | Tagged China HR, China Labor, China Overheads, Migrant Workers, Minimum Wages, Operational Costs | Leave a comment

Relax. South China Exports and Manufacturers are Doing Just Fine

Op/Ed Commentary: Chris Devonshire-Ellis

Feb. 1 – With some media spotlighting potential problems in South China – and one blog even going so far as to suggest smart Chinese businessmen are queuing up to attract orders, only to deliberately declare bankruptcy – it’s time to look again at the realities of the situation. The actual business environment in South China is something we are qualified to discuss with some knowledge – our firm, Dezan Shira & Associates, has four regional offices there (Hong Kong, Shenzhen, Guangzhou and Zhongshan) and has conducted business in the region for 20 years, while our Regional Partner Alberto Vettoretti is an adviser to the Shenzhen Government. Continue reading →

Posted in Business, FDI and Foreign Trade, Manufacturing, South China | Tagged China Exports, China Manufacturing, Chris Devonshire-Ellis, Dezan Shira & Associates, Guangzhou, Hong Kong, Shenzhen, South China, Zhongshan | 9 Comments

China Sets New Greenhouse Gas Emission Reduction Goals

By Vivian Ni

Jan. 18 – In its newest “12th Five-year Plan on Greenhouse Emission Control (guofa [2011] No. 41),” China has set its new goals of reducing carbon emissions in the next five years and called for pilot programs that aim to promote a low-carbon economy.

New goals
The newly released Plan aims to reduce China’s carbon intensity – the amount of carbon emitted per unit of GDP – by 17 percent by 2015, compared with 2010 levels. Energy consumption intensity by GDP will also be reduced by 16 percent during the same period. Continue reading →