Qinghai – Agriculture, Eco-Tourism, Tibet…And India?

By Chris Devonshire-Ellis

Aug. 27 – In my quest several years ago to obtain clients for Dezan Shira & Associates in every single province in China, it was obvious from the outset that in order to speak sensibly about each location, I would need to travel there.

In many of the provinces, some of them far flung, I also needed to solve the not insignificant problem of generating clients that were actually interested in investing in the western regions – a subject early issues of China Briefing magazine would solve as we featured, monthly, cities that were completely off the radar some 10 to 15 years ago. That combination of good old fashioned exploration and our marketing and intelligence facilities worked, however, and we began to generate clients who were amongst some of the earliest foreign investors in the western regions. Read the rest of this entry »

Chinese Exporters Owed US$150 Billion

Aug. 27 – While it is usually stories of shoddy goods and late deliveries that typically crop up in English language media concerning Chinese exports, another side to the story has emerged with the China Chamber of International Commerce stating that Chinese exporters are collectively owed some US$150 billion in unpaid bills from overseas clients.

The global downturn, and a weak recovery has lead to smaller Chinese manufacturers often exposing themselves to credit risks in order to generate much needed cash flow in a shrinking market. The result has been an explosion in receivables with average credit terms increasing by 150 percent. Overseas buyers also have the advantage of knowing that it would be costly, time consuming and culturally awkward for Chinese manufacturers to litigate. Read the rest of this entry »

Expatriates Working in China with Criminal Records

By Chris Devonshire-Ellis and Richard Hoffmann

Aug. 27 – A recurring theme over the past two years for expatriates wanting to be based in China is the subject of possessing a criminal record. These may of course be for relatively minor offenses; however China’s policy in this regard can be strict.

A standard requirement (although it is not always requested) for expatriates looking to work in China is for a “Certificate of No Criminal Record” to be provided when applying for a work permit. This is a particularly strict requirement in Shenzhen and Guangzhou, though less so in Beijing and Tianjin. Providing this certificate means having to go to your local police station in your home country and obtaining one. Different countries have different systems for providing such a document, and some smaller countries can even issue this from their embassy in Beijing. For most expatriates seeking employment in China, however, this needs to be obtained from their local police authority in their home country. Read the rest of this entry »

Guangdong Gov’t Accelerates Financial High-tech Service Industry

Aug. 26 – The Guangdong provincial government approved a plan to create a new financial services investment park last week aimed at accelerating the financial high-tech service industry in the province.

According to the plan issued on August 17, the government will build a financial services industrial park that will feature R&D centers, data processing centers, call centers, disaster recovery centers, training centers, and insurance asset management centers to support the business. Read the rest of this entry »

Investing in Shenzhen, China’s Main Export Hub

Aug. 26 – Shenzhen celebrates the thirtieth year of its unique status of being a Special Economic Zone today, a development that ushered the entire redevelopment, reform and opening up of the entire country. Once a small fishing village, it was chosen by Deng Xiaoping to be the first of the special economic zones in China. It was formally established in May, 1980 due to its proximity to Hong Kong, then part of the United Kingdom. Read the rest of this entry »

Tibet to Launch Own Airline

Aug. 26 – Tibet is following other provinces in China and is to have its own airline, with operations set to start from August next year.

The company, which has just recently been granted state-level approval, has been formed and is a joint venture between the Tibet Autonomous Region Investment Co. holding the majority stake of 51 percent and Tibet Sanli Investment and Tibet Ruiyi Investment holding 39 percent and 10 percent shares, respectively.

Tibet Airlines has already purchased three Airbus A319s, and hopes to introduce services from August 2011. Tibet is currently served by six airlines operating 16 routes, including Air China and Sichuan Airlines who make up the bulk of the traffic and scheduled weekly flights also being made by China Southern, China Eastern, Shenzhen Airlines and Hainan Air. Read the rest of this entry »

Happy Birthday Shenzhen, and Thanks!

Aug. 26 – Shenzhen celebrates 30 years as a special economic zone today. Here Chris Devonshire-Ellis and Alberto Vettoretti of Dezan Shira & Associates reminiscence about the city during that period. Read the rest of this entry »

Investment Opportunities in Chengdu, Chongqing and Sichuan

By Chris Devonshire-Ellis

Aug. 25 – Sichuan is the powerhouse of China’s southwest and has gained increased attention since the implementation of the Go West policy back in 2000. The province has benefited from lower operating costs than the eastern and central regions, with the added attraction of a massive population. Sichuan (including Chongqing) has a total market of some 120 million people. A survey of foreign managers conducted by the World Bank cited this as a major reason for investing in the province. However, the same study suggested that underdeveloped transport infrastructure (it takes seven to ten days to transport goods to and from the nearest seaport), unreliable electrical power supply, and the difficulty in recruiting and retaining professionals had held back the province’s development. However, this also is indicative of a regional emerging market with infrastructure investment potential. Read the rest of this entry »

Pilot Program Allows Enterprises to Deposit Export Revenues Overseas

Aug. 25 – The State Administration of Foreign Exchange is now allowing certain regions to deposit export revenues overseas, with the aim of improving the efficiency of fund use by domestic enterprises.

Huifa [2010] No. 44, issued on August 19, stipulates that starting from October 1, 2010, Beijing, Guangzhou (including Shenzhen), Shandong (including Qingdao), and Jiangsu will carry out a pilot program for depositing export revenues overseas for a period of one year. Read the rest of this entry »

Shaanxi: China’s National Science and Engineering Development Hub

By Chris Devonshire-Ellis and Fabian Knopf

Aug. 24 – Resource-rich Shaanxi has seen significant developments in the past few years, as this most traditional of Chinese provinces enters a new century full of hope, promise and a gleaming makeover of its capital city, Xi’an.

Like the most attractive of China’s magnets for investment, Shaanxi can rely on more than one component part for attracting development and creating opportunities. Coal supplies are plentiful and of a high quality, while the province also has large reserves of natural gas and oil. While that does give it a more hardened feel to life here, the province also boasts a rich cultural history, and that, coupled with excellence in engineering academia, gives Shaanxi a fairly unique character not found elsewhere in China. From the historical perspective, Shaanxi is considered one of the cradles of Chinese civilization. Read the rest of this entry »

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