In China, White Goods Become Red

Op/Ed Commentary: Chris Devonshire-Ellis

Jul. 30 – As the central government encourages a re-balancing of the economy towards more domestic consumption, companies are finding subtleties of selling in China that will shape the way forward for foreign manufacturers doing business here. Gone are the days when a manufacturer would only sell within a region, now the focus is on getting goods to China’s massive rural population; some 900 million people, or three fourths of the total consumer market.

This means that long held wisdom in international and even China sales is being remodeled and, in some situations, rethought. Take Haier for example. Long China’s largest manufacturer of white goods – everything from washing machines to air conditioners to freezers and television sets – they are the archetypal white goods manufacturer. In a delicious twist of irony, they are finding that rural Chinese consumers prefer their products in a more auspicious shade of red. White is a color associated with death and funerals in Chinese culture. Superstitions die hard in the countryside, and red is considered a lucky color linked to fortune and wealth. Read the rest of this entry »

China Briefing Partners with China Daily and IBISWorld to Provide China Industry Reports

Mar. 2 – China Briefing has partnered with China Daily and the market research firms All China Marketing Research and IBISWorld to provide a series of industry reports covering a number of sectors

Written by dedicated researchers from China Daily and ACMR-IBISWorld, these reports are listed on the Asia Briefing Bookstore and include the following titles:

China Daily
AutoChina
China Banking
China Energy Read the rest of this entry »

Paying Tax by Installment in Hong Kong

HONG KONG, Feb. 24 – As the region slowly recovers from the effects of the financial crisis, some business may still be struggling to manage their cash flow.

Hong Kong’s Inland Revenue Department allows payment of taxes by installment for taxpayers having financial difficulties. Taxpayers will need to submit an installment application to the agency and if approved a surcharge not exceeding 5 percent of the outstanding amount will be imposed. Read the rest of this entry »

New Regulations for Online Stores to be Released in March

BEIJING, Feb. 23 – The State Administration for Industry and Commerce is expected to release new regulations for major online stores next month that will require them to apply for a business license and pay taxes.

Small online sellers, which comprise of majority of all internet sellers, will not be required to subscribe to the same rules. The agency has been working on a draft of the rules since July last year. Read the rest of this entry »

China Wants More Private Players in Publishing Industry

Jan. 5 – The General Administration of Press and Publication (GAPP) is set to issue guidelines to encourage more private companies to enter the publishing industry.

Xinhua reports that private companies will be allowed to publish books on science and technology, finance and economy, supplementary materials to textbooks, music and arts, and children’s books. Companies can provide content in cooperation or being a unit of state-run publishers. Read the rest of this entry »

Mainland, Hong Kong Credit Card Defaulters Risk Jail

Dec. 16 – Hong Kong and mainland Chinese credit cards users risk jail time should they default on credit card debts three months after receiving a second warning notice, reports the South China Morning Post.

Penalties for Hong Kong residents using cards issued by mainland banks will depend on whether the card was issued in the mainland or Hong Kong, and the liability specified in the contract. Users in China are subject to law that specifies “malicious overdraft” as a criminal offense. Read the rest of this entry »

China to Impose Low Tariffs on More Than 600 Commodities

Dec. 16 – The Ministry of Finance has announced that it would temporarily charge low import tariffs for more than 600 commodities beginning next year.

The scope will include natural resource products, key components for optic communications, public health products, consumer products and advanced machines. High export tariffs will still apply to energy-intensive and resource products like crude oil, rare earths, pulp and billet. Read the rest of this entry »

Macau Signs Renminbi Deal with Mainland

Dec. 15 – The Monetary Authority of Macau and the People’s Bank of China have signed a deal for a cross-border trade renminbi settlement program that will increase the amount of renminbi Macau residents can buy.

Macau residents will now be able to purchase up to RMB20,000 per transaction compared to RMB14,000 previously. The agreement also makes it easier for Macau residents to settle business in Guangdong Province by allowing renminbi cheques of as high as RMB50,000 per account per diem to pay for consumer purchases reports Shanghai Daily. Read the rest of this entry »

New Regulations Released on Travel Industry Ads

Dec. 14 – The Shanghai Tourism Bureau has released new regulations concerning the advertising activities of travel agencies.

The regulations state that travel agencies will be barred from publishing tourism advertisements that go beyond the approved scope of the industry. Moreover, prices quoted in the advertisements shall be the total amount collected by travel agencies, including customer payments for all expenses incurred to avoid misleading tourists. Read the rest of this entry »

From the Edge: The Sweet Smell of Success (China Version)

From the Edge is the collected memories and experiences of an old China hand and will run in an irregular series of articles on this site over the next couple of months.

By I.B. Bogard

Dec. 11 – If I may continue with my business chronicles of misdemeanors, mistakes, misadventures and general misbehaving from a variety of commercial experiences in this fair land of the Middle Kingdom.

I have spoken before about the hazards of IPR issues in China and the following story will, I hope, give the reader some idea of the machinations, intrigue, internationalization and downright innovativeness of some of the more imaginative escapades involving IPR issues. It has always struck me that if such imagination and innovativeness could be turned to genuine and legitimate business plans, then these individuals would be feared and respected within this commercial world of ours. It would keep the likes of Bill Gates continually looking over his shoulder. Read the rest of this entry »

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