Markets

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 1992, India 2012

Above: Shanghai c. 1990, Below: Mumbai c. 2008

The development similarities are striking, says Chris Devonshire-Ellis

Op/Ed Commentary: Chris Devonshire-Ellis

Jan. 31 – A little over 20 years ago, I was sitting in the offices of Asia Law & Practice in Hong Kong, with their managing director at the time who said, “Don’t go to China, Chris. It’s dirty, communist, nothing works and they’ll rip you off.”

Perhaps foolishly, I didn’t listen to that advice, resigning my position (I’d been working on a book called “The Life and Death of a Joint Venture in Shanghai”) and decamping to Shenzhen to start what was then a very embryonic Dezan Shira & Associates. The MD’s words of advice have stayed with me ever since, not because they were wrong – in fact he was fairly accurate – but because they totally discounted the point that China wouldn’t remain in that anti-commercial state of existence for very long. Continue reading →

Posted in Business, FDI and Foreign Trade, Featured, Markets | Tagged China Development, China FDI, China India Comparison, India Development, India FDI, India Opportunities | 2 Comments

American Express Extends Reach to China’s e-Payment Market

By Vivian Ni

Jan. 30 – Although China has made it more difficult for foreign investors to enter its e-payment sector over the last year, the potential profits offered by the country’s massive consumer population are proving too attractive to miss. Recently, American Express – the U.S. financial service provider that has long considered China as its critical strategic market – established a new partnership with a growing Chinese payment service company, Lianlian Group, by means of equity investment and technology authorization.

AmEx said on January 18 that it will license its digital wallet Serve – a next-generation commerce technology developed to target lower-end consumers – to the Zhejiang-based Lianlian Group. The Chinese company will be allowed to apply the technology in its payment services, but will not necessarily use the Serve brand. Continue reading →

Posted in Business, East China, Markets, Technology | Tagged American Express, China Online Payment Lisence, China Online Payment Market, China Third-party Payment Market, Lianlian Group, People's Bank of China, Tencent TenPay | Leave a comment

China-India Business Update: Jan. 25

Jan. 25 – Welcome to our China-India round up in which we examine the latest bilateral news and commentary affecting foreign investment in the two countries.

Here we provide a list of recent India news of interest to China-based business individuals who may be considering doing business in, or with, India.

New Issue of India Briefing: FDI and Manufacturing Electronics in India
In this issue of India Briefing Magazine, we walk you through the National Manufacturing Policy, the draft National Policy Electronics, and other related policies and schemes key to foreign investment in the sector.

India’s Top Six Cities – Complimentary City Guides!
Asia Briefing takes a closer look at India’s top six cities (by GDP) in the newly released Indian city guides for Mumbai, New Delhi, Kolkata, Bangalore, Chennai and Hyderabad. Continue reading →

Posted in Business, FDI and Foreign Trade, Markets | Tagged China Alternative, China FDI, China-India Business Update, India FDI | Leave a comment

Guangdong Party Boss Warns CPPCC of Hard Times Ahead

Jan. 13 – Wang Yang, the head of the Communist Party for China’s wealthy Guangdong Province, has alerted the Chinese People’s Political Consultative Conference (CPPCC) that the province faces a tough and difficult year ahead in 2012. Guangdong is by far the richest province in China, having boomed during China’s export crescendo, but has been hit with rising labor costs and falling orders. Many businesses in the province over the last three years have either closed or relocated to cheaper destinations in China or to Vietnam, Bangladesh or India.

Yang told the CCPPC that the next 12 months would likely be the toughest the province would face in the past 30 years of China’s reform and development, and stated the province “sat on the edge of economic difficulty, social conflicts and even political risk.” Continue reading →

Posted in Business, Economy and Politics, Markets, South China | Tagged China Manufacturing, China Wage Overheads, Chinese Communist Party, Guangdong, Labor Unrest, Moving Inland, South China | Leave a comment

2012 Foreign Investment Industrial Guidance Catalog Promulgated

Dec. 30 - China’s National Development and Reform Commission and Ministry of Commerce promulgated the 2012 Foreign Investment Industrial Guidance Catalog on December 24, 2011, which will take effect from January 30, 2012. The new Catalog replaces the previous version released in 2007.

The revisions revolve closely around the theme of accelerating the change in the direction of China’s economic development, and place great emphasis on improving the foreign investment structure, promoting technological innovation, as well as upgrading industries. Continue reading →

Posted in FDI and Foreign Trade, Legal and Regulatory, Markets, Regulatory Update | Tagged China 2011 Foreign Investment Industrial Guidance Catalog, China Automobile Industry, China Central and Western Region Foreign Investment Preferred Industries Catalog, China Circular Economy, China Energy-saving and Environmental Protection, China Industrial Upgrade, China Ministry of Commerce, China National Development and Reform Commission, China Services, FDI Encouraged Category, FDI Equity Ratio, FDI Prohibited Category, FDI Restricted Category | 1 Comment

China Briefing Releases New Business Guide for the Greater Pearl River Delta

Dec. 14 – China Briefing has just released the fourth edition of its regional business guide “The Greater Pearl River Delta: Business Guide to South China” – offering business-minded individuals an up-to-date reference source for all of the key issues concerning setting up and successfully operating a business in South China.

By leveraging its proximity to the special administrative regions of Hong Kong and Macau, the Pearl River Delta (PRD) became the “Greater PRD” – China’s manufacturing heart and a region connected not only through financial ties but through a web of government initiatives to encourage its integration. This has included Closer Economic Partnership Arrangements and massive infrastructure developments such as the Hong Kong-Zhuhai-Macau Bridge.

Having risen to prominence around the pillar cities of Guangzhou and Shenzhen, the Greater PRD today is the home of high-technology in China. While Hong Kong is the regional management center for many high-technology firms, Shenzhen, Dongguan, and Guangzhou are being joined by Zhuhai and Huizhou as centers for the manufacturing of high-technology goods. Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade, Manufacturing, Markets, Shipping & Logistics, South China, Technology | Tagged China Briefing Regional Guides, Doing Business in China, Fujian, Fuzhou, Guangdong, Guangxi, Guangzhou, Haikou, Hainan, Hong Kong, Macau, Pearl River Delta, Shenzhen, South China | 3 Comments

China 2012: The Trends Ahead

Op-Ed Commentary: Chris Devonshire-Ellis

Dec. 13 – Yesterday I looked at budgetary issues for businesses in China and dealt with some of the general perceptions of what could happen over the year, from the impact of the new generation of leaders coming in, to social welfare for foreigners being introduced. The article can be found here. In this piece, we’ll examine some of the trends starting to occur in China, and especially those that affect foreign investors in the country.

Localizing of workforce
The impact of social welfare being imposed upon expatriates in China does add a significant chunk of expense to corporate overheads as the employer has to contribute the lion’s share of this amount. The localizing of workforce in China has been going on for as long as I can remember, and occurs when Chinese knowledge meets expatriate and then becomes more operationally desirable due to communication and expense issues. This will impact on non-essential expatriates in China with limited language or expertise skills. Continue reading →