ChinaNewsX: Blog ChinaNewsX: Blog https://www.chinanewsx.com/blog/ Copyright by ChinaNewsX en ChinaNewsX Sun, 08 Dec 2019 05:25:53 -0500 China, the Innovation Beast

China, a nation that had dominated the world several times over the past thousand years, is on track to repeat history once again. Economic reforms introduced by Communist leader Deng Xiaoping in the late 1970s has propelled China to become a nation now deemed worthy to challenge the U.S. for the number 1 title. In 2017, PricewaterhouseCoopers (PwC) reports that the Chinese economy will overtake U.S as the largest economy by 2030. China had averaged a 10% annual growth from 1999 to 2008 and in recent years, hovered in the 6-8% range. With recent drives for technological innovations, we may see a growth in the figures and eventually, an overtake to be world largest economy.

"China has been long one of the richest, that is, one of the most fertile, best cultivated, most industrious, and most populous countries in the world." Quote from Adam Smith magnum opus "The Wealth of Nation". Indeed, over the past few years, China has taken concrete steps to made that a reality. In 2015, China announced "Made In China 2025", a strategic blueprint that details the necessary steps to equip and transform the nation with local technological innovations and stage the Chinese equivalent of the Fourth Industrial Revolution. In 2017, China spending on research and development totaled $1.76 trillion yuan (USD $279 billion), a year-on-year increase of 14%. In fact, a term was invented to describe China's unique innovation policy and its ability to drive innovation and technological advancement within its own geographical boundaries. Termed "Indigenous Innovation", China has primed itself to be the next world's capital of innovation and technology. Below are some of the reasons why China is able to or rather, will dethrone the U.S. within the next decade or so.

1. Size matters. China is a massive nation, whether its geographical size or population. While China and U.S are equally big at 9.3 million square km and 9.1 million square km respectively, China trumps (no pun intended) U.S with over 1.4 billion citizens, over 4 times the that of the U.S. China's population high adoption rate for technology as well as its enclosed ecosystem has created a perfect environment for Chinese enterprises to grow and thrive. With over 772 million Internet users, China is a data haven. Furthermore, citizens in China have longed been known to be more permissive in the sharing of their personal data, a sharp contrast to the Western nations where personal data policies and regulations are strictly enforced. The recent Cambridge Analytica saga regarding Facebook's user data highlighted the importance of keeping personal data private, but it is one that we may never see in China. However, reports of 'emotional surveillance' being employed where employees' brain waves are monitored in military sites and state-owned enterprises seems to have crossed the line in its latest efforts to monitor its people.

2. Support from the Chinese government. Policies such as China's 13th Five-Year Plan (2016-2020) and Made In China 2025 are strong evidence of China ambitious plans to establish itself as the world leader in the technology leader. Subsidies, low-interest loans and tax breaks are some of the support tech firms are expected to receive as part of China's plan to propel research and innovation within the nation. Furthermore,

Instead of having Western companies such as Google, Facebook and Twitter thrive, the Chinese government nurtured domestic firms through protectionisms and huge subsidies. Local tech giants such as Baidu, Alibaba, and Tencent, commonly referred to as BAT, were able to grow under the sheltered environment and having the whole Chinese pie to themselves. Since then, these companies have expanded overseas through acquisitions and setting up of research and innovation centers, a move that many nations have deemed to be a blatant act of 'tech importation', aka transfer of technology.

3. Lastly, it is simply sheer ignorance about China. Indeed, many who have little awareness of today's China would still perceive it as a "copy-cat" country thrives on manufacturing counterfeit goods and "Made-In-China" products for the outside world. The fact is that they are now producing innovation leaders and are the ones to beat. A prime example is Shenzhen, which has evolved along the way to become its own innovation hub. Referred to as China's Silicon Valley for hardwares, Shenzhen houses many of the companies that produces the tech product we see today, from drone producer DJI to iPhone manufacturer Foxconn. It has positioned itself as a hardware and IoT hub for many electronics manufacturers and a hotspot for Chinese tech startups. Ignorance used to be bliss when one can freely enjoy the low cost of manufacturing in China; ignorance is now a looming threat of takeover.

"China has a fairly deep awareness of what's happening in the English-speaking world, but the opposite is not true." Quote by Andrew Ng, co-founder of Coursera and one of the pioneers in Artificial Intelligence.

The future will be one dominated by technology, and China has prepped itself to be a part of the future. President Xi Jinping knew the difficulties of sustaining China's economic growth and understood the potential of technology to scale to millions of enterprises and remove inefficiencies while benefiting the end-consumers.

However, it will be naïve to conclude that China will overtake U.S. simply on the basis of superior technology. The possibility of a trade war between the U.S. and China only benefits China, for it has the advantages of economies of scale and a single, independent market. The ongoing trade surplus with the U.S is evident of U.S. reliance on China goods, and a trade war will only harm the country with price hikes in consumer goods. The trade surplus for the first quarter of 2018 spiked nearly 20% to hit $58.25 billion, citing the possibility of a trade war. Furthermore, China has been extending its economic and political influence with the Belt and Road Initiative (BRI). Expected to cost over a trillion dollars and impact 60% of the world's population, the BRI is the largest undertaking by the Chinese since the Great Wall of China. All signs point to the fact that China has the money, technology and influence to take over the world.

All in all, China has evolved from a nation of imitation to one of innovation, from one of producing products to one of inventing products. China is the elephant in the room that the Western counterparts have chosen to take it for granted for decades and ignore its uprise. Perhaps it is time for the world to take a good look at China and ironically, replicate what they are doing now. For the U.S, cooperating might be the best, and only way of going forward.

As a tech enthusiast, I am overwhelmed and excited about the tech advancements happening in the world! I primarily write about tech and the latest happening in China. For any business opportunity, do write in to chewweichun94@gmail.com

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Uncategorized https://www.chinanewsx.com/blog/china-the-innovation-beast/ https://www.chinanewsx.com/blog/china-the-innovation-beast/ Editor Tue, 12 Mar 2019 10:56:28 -0400
China's Move for Control

China has been working to gain territories further out into the South China Sea to extend their control over one of the busiest sea lanes in the world. This expansion consisted of building military bases on artificial islands 750 miles from the Chinese coast. Some of these bases are even well within Manila's 200-mile exclusive economic zone.

China's construction and claim of ownership of islands in the East and South China Seas has placed numerous countries on alert. Japan, Philippines, and Vietnam all have a checkered history with China and are at the forefront of the disputed islands and a state of alert about what is seen as Chinese maritime expansion. Within Southeast Asia China has keenly tried to improve its relationships through developing trade agreements with members of the Association of Southeast Asian Nations (ASEAN). China was striving for a stable environment to allow continued economic growth but has also been determined to expand its territorial reach.

Founded in 2004 the China-South Asia Business Forum emphases communication, cooperation, development, and mutual benefits. China was working to strengthened and engage with South Asian Association for Regional Cooperation (SAARC). These actions led to the creation of the China-South Asia Business Council in 2006 which was a link between Chinese companies, SAARC, Chambers of Commerce, and Industry.

China has attended the successive SAARC summits, they continue to host senior diplomats in China, and has accommodated the South Asian countries' commodity fair and China-SAARC senior officials' meeting. China launched a possible competitor to the World Bank called the Asian Infrastructure Investment Bank (AIIB) which is based in Beijing.

These actions would suggest that China wanted to be an active participating member in this region. The AIIB has called to end U.S. dollar dominance by promoting a single currency like the European Union did only using the yuan as the replacement. Using the yuan helps Chinese trade partners, particularly ASEAN and ASEAN-China Free Trade Area (ACFTA) members but also increases China's role in the South China Sea. Many of these countries fear the possibility of "economic colonization" by China.

Spratly islands is the location where China has elected to conduct island-grabbing to extend its area of influence. With China's past actions of what seemed as goodwill and mutual regional development now is viewed as positioning for their expansion and eventual control over the South China Sea and is lucrative shipping lanes. China only recently became interested in the Spratly islands and with each island occupation Beijing's negotiating position has become stronger.

China's island expansion in the South China Sea have triggered many of its neighbors to increase their armed defenses. One country, the Philippines, took a different route and brought the case to the International Court of Justice. Tensions in the region are high enough that the pursuit of diplomatic channels would benefit all. They want to settle their quarrels with China at the permanent court of arbitration, the International Court of Justice at The Hague, Netherlands. China's claim is the 1982 United Nations Convention on the Law of the Sea which states habitable islands can qualify to have 200 nautical mile exclusive zones. Rocks and shoals can be eligible for territorial zones if within 12 nautical miles and are above water. China has turned tiny coral reefs into artificial islands to qualify for territorial zones and even constructed an airfield. In response the Philippines has announced that it would base fighter planes at Subic Bay for the first time in decades. Subic Bay is the nearest island to Scarborough Shoal which the Chinese seized from the Philippines in 2012.

China has challenged Japan's control of the Sekaku Islands in the East China Sea in even though China is Japan's largest trading partner. These actions by China has triggered an overhaul of Japan's national security strategy that seeks to transform Japan's post World War II pacifist tradition. Japan's current constitution under article 9 requires Japan to renounce war or threat of war as a means of settling disputes. These changes by the Japanese government were provoked by Chinese actions in the East China Sea. In 2015 Japan released photos of Chinese offshore platforms to show China's illegal unilateral development of natural gas fields in Japanese territorial waters in the East China Sea. Japan believes China is constructing artificial islands to deploy radar systems and operating bases for helicopters or drones to conduct air patrols.

China fear US involvement that could disrupt their oil shipments if there is a conflict with one of the US allies in the Pacific. Known as the "Malacca dilemma," the Chinese government worries not only about the US Navy but also terrorist's actions because of the relatively long and narrow passageway exposes their tankers. Because of China's concerns over stability in the region and their existing suppliers have dedicated substantial efforts in securing overland energy supplies from numerous states in Central Asia.

Vietnamese ships operating in the South China Sea had their cables cut by Chinese vessels there has been at least ten confrontations in the last year. Vietnam has strengthened collaboration with India and launched a joint energy exploration project in the South China Sea. This exploration project is bitterly condemned by the Chinese media. A Chinese warship threatened an Indian vessel as it left a Vietnamese port, this was the first clash amongst China and India in the South China Sea. Even with warnings from China; India, Vietnam, and ExxonMobil are scheduling exploration projects west of the Spratly Islands and off the coast of Vietnam.

The United States venturing for international negotiations over the disputed South China Sea claims may not be sufficient to keep China from achieving their short and long term control. The United States will have to make a clear written multilateral code of conduct for the South China Sea dispute and strengthen its presence in and around the South China Sea. This would allow the United States to remain a key player in protecting ASEAN nations, international shippers, and oil companies' rights to navigate and explore the South China Sea and remove China from "granting" rights.

China's expansion, challenges in the international courts, aggravated regional tensions, changes to nations constitutions, and strained US relations have increased chances of conflict. A conflict that would involve half of the world's annual merchant fleet tonnage and could destroy vast economies around the world. Because of the nations involved any conflict could develop into a world conflict. Sometimes you need to read, understand, and take heed of the writing on the wall.

China is taking steps to control the shipping lanes in the South China Sea and using its influence as a world power to achieve their goal. Actions need to be taken to stop China from gaining control of the shipping lanes in the South China Sea.

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Uncategorized https://www.chinanewsx.com/blog/chinas-move-for-control/ https://www.chinanewsx.com/blog/chinas-move-for-control/ Editor Thu, 07 Feb 2019 10:55:23 -0500
Why Students Should Prefer China for Higher Education China has one of the fastest growing economies in the world with an important role in international affairs and a major impact on the global economy. This is a country with an ancient history, a brilliant civilization and beautiful landscapes. China has attractive offers and facilities for students from South Asia at very low cost. China is also known for being a place of ethereal beauty. If someone studies in China, then not only he/she can increase their knowledge, but also gets to see firsthand the culture and amazing sites that China holds. The merger of knowledge of both China and the country of origin will be an advantage to explore the potential opportunities in China for the future.

In China medical schools are recognized by the Medical Council of China and many of them are recognized by the WHO (World Health Organization). Foreign students can prefer Chinese or English language medium for MBBS programs in China. Knowledge of Chinese language will be an advantage for students if they prefer working in china after completion of their study to communicate with patients in clinics.

AIFS is an organization that dedicates its resources to promote study abroad session in China. This company gives students opportunity to go to many different universities in China and provides scholarships to enable them to attend.

There are top five reasons why students should prefer China for higher education:

1. Booming economic condition of China

China is booming rapidly and annual growth of the Chinese GDP is reaching more than 7% over the coming five years. Sources say that the Chinese economy may overtake the USA by 2035. There was a time when most people used to go Europe for higher education but now this trend has been changed and students prefer China instead of Australia or USA. There are at least 10 thousands US students are going to China for study and if the trend continues, China will soon study abroad pillars as England and Spain.

2. Traveling and living is cheaper

The dollar has taken a beating these last few years. Traveling and living in China are less expensive than European countries like USA, Japan, South Korea and many other countries. Food and consumption in China are very affordable, for example one can buy a pair of jeans at just 10-20 US dollars, the bus fare only costs 15 cents, and a subway ticket in Beijing only 30 cents.

3. Employment advantage

China is the world's fastest growing country for the last 30 years. China's economic growth maintained a level of 8% even during the financial crisis. The GDP of China recently overtook Japan to become the second largest economy after the United States. The world's top 500 companies are doing business in China and most of the companies' headquarters is located in China's top major cities like Hong Kong, Shanghai and Beijing. In the near future China can be leave a great impact on the world economy.

4. Experiencing a new, exotic, captivating and truly inspirational culture

When students are studying in China they will experience a new, exotic, captivating and truly inspiration culture. The best way to learn a language or culture is to be in that environment. You will have the opportunity to learn the Chinese language, Chinese people and culture. Chinese culture and their people are very diverse and multicultural, consisting of 56 different ethnic groups. The choice of a study in China will see things from a Chinese perspective.

5. Students can learn Chinese foreign language while studying

If students will study in China they can get a chance to learn Chinese as a foreign language as well as they can understand a foreign way of thinking. People who can speak Chinese and have first-hand experience of living there will be given a big advantage when it comes to employment in China. Some MNC can also send them onsite China if they know Chinese language and familiar with Chinese environment and culture.

Students can prefer China as their first choice when going to study abroad. However, they must consider what kind of approach they want to study. Campus Idea is giving an opportunity for students to study abroad in China. Since the last few years China has emerged from isolation and captured the attention of the world by accomplishing astonishing technical achievements and driving their economy rapidly. Students will not have only experience of unique culture and brilliant civilization but they will have a wonderful addition to any resume that will impress their future employer.

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Uncategorized https://www.chinanewsx.com/blog/why-students-should-prefer-china-for-higher-education/ https://www.chinanewsx.com/blog/why-students-should-prefer-china-for-higher-education/ Editor Sun, 06 Jan 2019 10:54:17 -0500
Importing From China and Its Fundamentals Centuries ago, China was popularly known for its monarchies and prehistoric civilizations. Now, China has changed. China continues to become a ginormous economy, overpowering Japan and positioning next to United States. China is indeed growing more and more in the import export business. China is now known to be the largest producer of hundreds of products that are exported to other countries like mobile phones.

Aside from this, an over-populated China with 1.3 billions of people, have also turned into a major automotive market. If China's developments in the import export business is predicted to continue on as the fastest growing economy and is growing 10% ever year. With this, China will likely overtake the United States as the world's economic superpower.

So, here are the factors which contributed to China's status for the past 30 years:

* Undoubtedly, China's goods can win over products from other countries. Mostly, people of hear false stories regarding the products imported from China. These products are believed to have quality problems. But producers have quickly dismissed these false stories and they claim that majority of their buyers are the ones ordering them the standards of the products they need to manufacture. Thus, China is not really at fault. There are those who resort to lessen the products' qualities. But there are a lot of big companies too whose products are made in China utilizing all the best materials and adhering also to stringent manufacturing standards and quality control.

* Before, the Chinese government has prevented foreign businesses from transacting or conducing business with Chinese suppliers. But when China linked with the World Trade Organization in 2001, it has continually enticed international businessmen to venture to a more liberated trade in the country. China's connection with WTO has helped China draw in more international buyers. Through this linkage, China has totally embraced the international trade practices and laws which made product purchasing convenient and safe.

* Because China is over-populated, it's guaranteed that they have a lot of workers. China's cost of living is also lower, so workers are not looking forward to grasping the same wages as the workers in US or Europe are having. China's cheap labor greatly results to a reduction in its product manufacturing costs. 
So, there you have it. But that's not all there is to China because these benefits and opportunities are coupled with various risks.

Language differences can be a barrier. It's often difficult to conduct business with companies not having an English-speaking employee or staff. But recently, large manufacturers have already employed multilingual sales staff to help foreign businessmen. Aside from language differences, various Chinese business etiquettes have a greater impact on business transactions. China may have gone through trade liberalization. But China's traditions and culture plays a bigger role in the business. Thus, these should be given consideration especially when dealing with the Chinese.

Importers should not only rely on one or two suppliers. Different circumstances happen along the way. Most of the time, suppliers succeed but there really are times, when they do fail. So, it's best to flex a little and look into several other sources of your products. As you start off with this business, it would be best to link with private companies who are already knowledgeable with China's trading practices and distribution channels. It's also imperative to realize and value the Chinese businessmen and the culture they've grown of. To help you understand them better, you can find a lot of information in the Internet. You can even find import export coaches, import export training courses and e-books that continue to keep businessmen aware of China's policies and practices. It's also best to hire the services of import export agents and experts who totally know the ins and outs of the China import and export business.

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Uncategorized https://www.chinanewsx.com/blog/importing-from-china-and-its-fundamentals/ https://www.chinanewsx.com/blog/importing-from-china-and-its-fundamentals/ Editor Wed, 05 Dec 2018 10:53:01 -0500
How to Decide What Kind of Visa You Need for China

When you want to stay in China for any period of time you will first need to take care of a few formalities. One of those formalities is applying for a visa for China.

What is a visa for China?

The CVASC describes it as the following:

"Chinese visa is a permit issued by authorities of China in accordance with the laws and regulations of China to a foreign citizen for entry into, exit from or transit through the territory of China."

So to summarize, it is basically permit which is issued by appointed authorities, with which you can legally travel into, exit out of or transit through China. It is required for you to have a Chinese visa if you want to go to China. If you don't have a the document in your passport you will be stopped by customs and will not be allowed to pass through.

So how can I get it?

First you will need to decide what kind of visa you will be needing, as there are several different types of visa's you can apply for. So decide for what purpose you will be going to China and in the list below, find out what type of visa applies to you.

-Tourist and family visit visa is issued to a foreign citizen who comes to China for tourist purposes, family visit or other personal affairs.

-Business Visa is issued to a foreign citizen who is invited to China for visit, research, lecture, business, exchanges in the fields of science, technology, education, culture and sports, or attending various kinds of trade fairs or exhibitions, or short-term study, intern practice for a period of less than 6 months.

-Student Visa is issued to a foreign citizen who comes to China for the purpose of study or advanced study for a period of six or more months.

-Work Visa is issued to a foreign citizen who comes to China to work and his or her accompanying family members, or to give commercial performances in China.

-Transit Visa is issued to a foreign citizen who is to transit through China on his or her way to a third country (or region).

-Crew Visa is issued to crew member performing his/her duties on board an international train, or on an international airline, to a sailor on board an international ocean-liner or freighter, and also to their accompanying family members.

-Journalist Visa is issued to foreign journalists. J-visa has two categories: J-1 and J-2. J-1 is issued to resident foreign journalists in China and their accompanying spouses and under-age children, J-2 to foreign journalists who visit China for temporary news coverage.

-Permanent Residence Visa is issued to a foreign citizen who has been approved by China's public security authority to reside in China permanently.

If you are in doubt on what kind of visa you need, you can contact your local china visa authority for help.

A short example: Let's say you are a student and want to study in Beijing, China for 20 weeks (5 months). Do you apply for a Student visa? No, since you will only be staying there for 5 months you will apply for a Business visa. In order to be eligible for a student visa you need to stay for a period fo 6 months or more.

Each type of visa has it's own forms you need to fill in, please check out the specifics for each one to find out what you need to do to get yours.

Please note that you do not always need a the visa-permit to enter China or transit through China, there are a few exceptions. You do not need to apply for a Chinese visa if:

-You are a citizen of Singapore, Brunei or Japan holding an ordinary passport and are coming to China for family visit, business or transit. Maximum days allowed in China: 15 (If you want to stay longer, you need to apply for a visa)

-You have a confirmed onward ticket and seat on an international flight and will stay no longer than 24 hours in China. In this situation you will not have to apply for a Transit visa.

For more exceptions please go to the CVASC website

You will need to apply for a visa at a local Chinese authority. I greatly recommend you do it at the CVASC. This agency is available in multiple locations over different continents. You can check out which locations they have on their website.

There is a possibility that a location near you is not listed. Then you should find out on the internet where the closest appointed Chinese authority is located.

Once you have decided for what visa you should apply, you should then fill in the forms and apply at the Chinese authority.

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Uncategorized https://www.chinanewsx.com/blog/how-to-decide-what-kind-of-visa-you-need-for-china/ https://www.chinanewsx.com/blog/how-to-decide-what-kind-of-visa-you-need-for-china/ Editor Sat, 10 Nov 2018 10:51:34 -0500
All Aboard! This Is the China CCRC Express!

"It took more than one man to change my name to Shanghai Lily," purrs Marlene Dietrich in Josef von Sternberg's film 1932 adaptation of Harry Hervey's book Shanghai Express. She certainly has her well-manicured talons sunk into more men than she can count in this exotic far-Eastern, chiaroscuro-cinematographic adventure. Among her fellow passengers on the Shanghai Express are her disenchanted former fiance', unshakable British medical officer Clive Brook; over-zealous missionary Lawrence Grant; dope smuggler Gustav von Seyffertitz; and enigmatic Eurasian businessman Warner Oland. Coincidently, Oland made frequent appearances in other China-themed movies, most notably as Charlie Chan, the benevolent and heroic Chinese detective based in Honolulu as well as a future movie character for this article.

As the train chugs through the more treacherous passages of war-torn China, Oland reveals himself as the leader of a rebel group, who plans to hold the passengers hostage to secure the release of his imprisoned constituents. In Boule de Suif fashion, Dietrich, who portrays a notorious "Chinese coaster" has remained sexually remote throughout the trip, gives herself to Oland to save the life of Brook, the man she truly loves. Directed by Josef von Sternberg at his most orgiastic (check out the long, lingering dissolves!), Shanghai Express is 80% style and 20% substance.

Tickets, please....

This article is about China's 3 largest and most visible geriatric care developments to date. I warn you in advance, this article is painfully long but the information conveyed is important for those interested in senior living in China. Each of these projects has been in the market for at least 2 years and in one case nearly 5 years. I call them CCRC's (continuing care retirement communities) because, well, that is what they set out to be and in some part that is what the developers have accomplished...or, better yet, are clearly struggling to accomplish. One of these developments had the benefit of limited foreign assistance, the others did not. The one that did clearly benefited and consequently has the best aged-care program in China today. All are chugging along with common weaknesses and each has their strengths. In sum, it is a mixed bag and to the inexperienced eye (read: China senior living experience, not western senior living experience; I say this as nearly all western geriatric care practitioners who see their first China project immediately conclude that all China senior care is a train wreck) it might seem as if the idea of senior living in China is just on the wrong track. But it is early and the train hasn't left the station, at least not just yet.

Those who seek to conduct the senior care business in China are well advised to remember a few important rules of the China elder care experience: first, China senior living is where Western geriatric care was in 1950 but gathering steam quickly; second, never judge a project out of context, meaning: comparing a project in Chongqing to a project in Santa Barbara is meaningless as the buyers of the Chongqing project don't have that choice much less that perspective; third, the higher one stays in the acuity chain, the more leverage one has...which translates into success; and finally, stay in the 1st class coach, period.

Before this train departs, I would like to make one last observation. My thoughts below are a mildly critical analysis bordering on subjective evaluation and at times, some literary lampooning. Lest I be detained by the People's Senior Living Police at Beijing Nan Zhan (FYI: an enormous train station), I beg merciful consideration that these contemplations be seen not as cruel condemnation, malicious denigration, negative commentary or, heaven forbid, Confucian blasphemy of any CCRC discussed here or China's senior living potential in general. Quite the contrary, I am no apostate; I see a bright future and if these three communities are indications of what the Chinese can accomplish right out of the box, then the next decade will be outstanding for professionals in the China geriatric care business.

And finally, as the whistle blows, for those readers not entirely familiar with a CCRC, they are usually defined as a campus style residential complex assembling a mix of independent living residences for active but senior adults, assisted living units for older adults needing some support with their daily activities and skilled nursing care for frail or infirm adults requiring frequent assistance or acute medical care. Additionally, there are often a variety of cultural amenities, exercise facilities and commercial support services which offer basic necessities and provisions, such as hair salon, laundry/dry cleaners and variety store.

First stop, General's Garden.....General's Garden!

When I first visited General's Garden nearly two years ago, I thought, "This is it....modern senior living has indeed arrived in China". But after my fourth trip and some pretty rigorous investigation and analysis, I began to see the cracks in both hardware and software, in a sense, the General's Garden's locomotive was running out of steam.

General's Garden was opened to the public around 2009. It is located in the northeast quadrant of Beijing (off 4th ring road), not far from Beijing Capital International airport and the Museum of Film. The land was Ministry of Transport land and the property's perimeter remains a testing track for China's high-speed railway (true). I refer to General's Garden as a CCRC as it loosely embodies a simple definition of a CCRC, as outlined above. Indeed, General's Garden offers 51 villas or large townhouse style residences with private gardens, 160 independent/assisted living apartments and 280 skilled nursing units all within a gated compound. This facility also offers a 3-hole golf course (plus driving range), an unusual, man-made forested park, an unfeasibly large and as of yet unfinished 17,000m2 hot-spring clubhouse, an 160 room inn for visitors and a clinic specializing in traditional Chinese medicine.

So what happened? Well, as of January 2012, only 14 of the Villas had sold and less than 10 residents purchased golf course memberships (which by the way, through October of last year, boasted an expensive, resident Australian PGA Pro to give lessons to all those resident members) since the opening 2 years ago. I would get into detail about the amenity membership program but it is way too complicated (ex. Golf course membership is priced on ball usage). The villas ranging in size from 700-800 square meters, carry a price tag of between RMB 45 million and RMB 55 million for unfinished space and the IL/AL units go for RMB 1.5 million plus services on an as needed, menu basis. And while the IL/AL living apartments and the skilled nursing units are fairly well occupied (75%-80%), there are likely a number of reasons for the stalled performance of the villas. As an aside, I have to note that the best thing about General's Garden is the aged-care program; it was set up by an Australian group and they did a superlative job. Until recently, an Australian also continued to manage this section of the facility; he has a great deal of experience and insight into how Chinese seniors need/want geriatric care. Kudos to this master of the China senior care experience! Our access to General's Garden's business plan has allowed us to tabulate much of their rental and sales data which we share with clients.

Unlike the Little Engine That Could, ("I think I can, I think I can...") the General's Garden villas have never made it up the hill. I believe this is because:

1) the land on which the facility is built is known as "collective land" which does not convey fee title to the buyer, only a long term lease (approximately 50 years for either a villa or an IL/AL unit). Consequently, potential purchasers are faced with an unappealing opportunity to buy an enormously expensive, depreciating asset which under Chinese law cannot be hypothecated,

2) General's Garden never seemed to have a comprehensive marketing plan and buyer outreach program other than pursuing the ownership's network of political contacts for unit sales, and

3) perhaps the least understood aspect of the facility, its capitalization and financial game-plan which seemed, at best, ad-hoc. Beginning early last fall the warning signals were as subtle as a diesel engine's piercing whistle at 4am: contractors stopped receiving payments and construction stopped on the remaining units and clubhouse, there was a sharp increase in deferred maintenance, a hostile takeover occurred and subsequently, most senior management ceased receiving paychecks.

On the other hand the IL/AL units are comparatively speaking a success. And while ownership, meaning title conveyed, of such a unit is no different than that with a villa, they are much less expensive (in fact they are well priced at an average of RMB12,000m2). It is interesting to note that there has been a trend of older adults buying these units for their children to live in.....however odd. Despite its raison d'etre as a CCRC, no writ of Chinese law prevents young people from living there. I guess this is an indication of the facility's pricing as much as its attractiveness, or more likely, the parents intend to move in at some future date.

In late January 2012, new management at General's Garden, reeling from the enormity of their poorly analyzed, hostile acquisition, fired 12 persons many of whom were experienced senior managers. The terminal analysis is likely that General's Garden neglected to fully understand their market, didn't identify a target buyer and never adequately projected unit absorption against capital requirements to identify a breakeven point; a lethal mistake.

I will say though, in all fairness, this review of General's Garden must contain praise for the original management whose fundamental concept of this CCRC is a sound, well integrated facility; it is just the execution and some software that jumped the track. I have met the previous General Manager and those in his inner circle and believe he/they are talented people capable of positively impacting the senior living industry in China. His early efforts at the facility are proof of this and had it not been for the hostile take-over, General's Garden would continue to benefit from his leadership and likely turn the train around. However, without him General's Garden lacks vision and perspective; it faces a number of critical switches in the track ahead.

A fellow writer recently wrote a piece on this facility using a favorite song of mine to illuminate the bridge over troubled waters that General's Garden presently crosses and more importantly, its choppy history. I find his story on target and I salute his perspective; he has taken a measured approach to this facility's analysis. De-accelerating and moving forward less hurried is always a good thing in China.

At this point, I will step away from rock 'n roll metaphors and, given the time of year, select a more solemn reference as a testament to this facility's narrative. With its fall from grace, perhaps we can call General's Garden and its story, "The Prodigal CCRC", a parable of squandered opportunity; now lost, can and better yet will, General's Garden atone for its marketing and financial sins and find its way again?

Yanda....next stop......Yanda!

Now this is a facility to behold. While its full name is a mouthful, Yanda Golden Age Health Nursing Center, the facility is frequently referred to as Yanda. One arrives at Yanda entering under an enormous, ceremonial gate and into a Tiananmen Square-like plaza large enough to park 500 tractor trailers. After parking your car, walking around Yanda is, frankly, a little creepy and reminds me of the cities created in the narcotic-induced dreams of Dom Cobb in Christopher Nolan's Inception,.......beautiful, large, vacant and crumbling.

Yanda's first impediment is its location, situated a hard hour's drive from Chaoyang district, Beijing in adjacent Hebei province, it is tough to get too. Second, Yanda simply is overbuilt. So much of what has transpired at this facility is unclear, even the basic facts such as room count and beds are, in typical Chinese fashion, opaque. We are told there are 1,200 units at Yanda, but it feels like more. There is a 3,000 bed hospital and a 200 bed geriatric nursing facility which, management professes is quite busy but there aren't a lot of cars in the parking lot and not a single ambulance arrived during my 3 hour tour (I arrived at lunch time). But hey, I won't let my lying eyes fool me, I saw not a single patient in the nursing care center. Wait...there is more: a 250+ room hotel and four places of worship (seriously): Buddhist, Muslim, Christian and Jesuit/Catholic all sited next to a bank (presumably for those whose faith favors Mammon). And if that isn't enough, ownership built a 30 story building that serves as living quarters for the healthcare workers who will, hopefully, arrive someday soon. Whew! What a budget!

Truly statuesque, in the lifeless sense of the word, this project should be renamed the "Colossus of Hebei" as colossal is the only term that adequately defines Yanda (well, maybe "stalled" has relevance here as well but lacks a certain visual "onomatopoeia"). Now, when confronted with the enigmatic and incomprehensible my imagination always runs wild. In fact, Yanda inspired in me a rewrite of those last few dreadful lines from the famous Shelley poem Ozymandias:

 

"....My name is Yanda, King of CCRC's: Look on my campus, ye mighty, and despair! Few residents remain. Round the decay of that colossal wreck, budget-less and bare, the congested Chinese conurbation stretches far away".

 

In all seriousness, here is the punch line: Yanda is only 20 percent occupied and it could well be less. I take this fact on face value from what we are told by the tour guide. But having been there at lunch, my favorite time to visit a facility as it reveals a lot, there certainly wasn't too much activity.

This is what we do know about Yanda: unlike General's Garden, Yanda is a pure rental scheme. Most occupants lease units on a year basis, but management also quotes 2 and 3 year options. Independent and assisted living units (1 and 2 bedrooms) rent for RMB 5,600 to RMB 9,600 per month plus services which can be selected from a menu. The nursing facility offers beds/units beginning at RMB 13,600 to RMB 16,800 per month, also depending on size and acuity. There is also another quirk to the pricing; the sponsor offers a kind of sinking fund whereby if you deposit sufficient monies with them, they will pay a 6% return on your money that is equal to your monthly rent (the number of takers for this generous offer is unknown). The young lady who showed me and my staff around, gave us the above 'rack rate" pricing (and a sheet with greater detail on it) but was eager to mention that we are very lucky customers and our visit today was auspicious; management has instructed her to offer high status individuals, such as ourselves, a one-time only, VIP discount of 40% on a full year lease for IL/AL units and a whopping 60% discount for nursing units. Days later, subsequent phones calls to verify information were met with the same offer. Ok.....no surprise here.

Yanda opened up in 2010 and blew its steam before getting out of the station. The ROI has to be hurting by now and somebody is likely to take a loss going forward. It isn't an ugly project, in fact I found the basic design "ok" by China CCRC standards; but somebody has to take control of the marketing here, drive absorption aggressively and simplify the rental scheme before the buildings fall apart resolving the problem forever. This is the only prospect here: try and compete on price and program in an attempt to overcome Yanda's real weakness: location. Believe it or not, there is land allocated for a phase II....someday.

Cherish Yearn, last stop.......everybody off!

This facility's operations are as curious as its name. Located in a distant corner of Pudong, on a former duck farm, Cherish Yearn came to market about five years ago. It was an early arrival to the China senior living space and its organization, facility design and ambience all reflect its vintage. I first visited Cherish Yearn in late 2010 and quite honestly, I thought it was a disaster. From the desert like landscaping to the mold-stained stucco on the buildings it had little ambience, few residents and zero energy.

Cherish Yearn was completed in 2006 and the first residents occupied in 2007. For years it struggled with occupancy and when I returned for a second visit in early 2012, I was pleasantly surprised. Apparently, over the past two years, a new marketing program was implemented and brought census up from a low of 20% to what is reported now as nearly 80%; and after my tour I believe the true figure is not far from this level. Activity rooms are busy with geriatric calligraphers, libraries are full of bespectacled Mandarins gazing over the Central Committee daily and even the computer rooms are full of elderly Chinese pecking away on keyboards. Indeed there is so much activity at Cherish Yearn its resurrection earns it a new name: the "Lazarus of Pudong"...so there is indeed hope for The Prodigal CCRC and the Colossus of Hebei.

Like its sister facilities, Cherish Yearn is large. It offers nearly 800+ units in 15 different mid-rise buildings. Independent living accounts for at least 600 units and there is a 300 bed nursing facility. The independent units have a reported 80% occupancy but it is entirely unclear how many residents are in the nursing facility. Access to the upper floors is prohibited but the first floor, which does indeed have patient rooms, reveals no activity whatsoever and is largely dark.

Cherish Yearn's business model is founded on a membership scheme with an upfront fee and annual rental payments plus usage charges for the clubhouse and other amenities such as the dining hall. There are 2 basic plans: Plan A essentially confers title to the occupant for an entry fee of RMB 890,000. Once admitted, the resident may choose from 3 basic size units: large units (108m2 or 1150ft2), medium units (70m2 or 740ft2) and small units (58m2 or 625ft2) each of which charges an annual fee according to size. A resident who has purchased a unit under Plan A may sell the unit himself at some future date or offer to the sponsor who will re-purchase it for 90% of the entry fee or market price, whichever is less. Plan B confers a 15 year right of use for an entry fee beginning at RMB 880,000 for a large unit, the smaller units have lower entry fees; there is also a static annual fee of RMB 29,800 across all unit types. Plan B's entry fee is refundable on a straight declining basis (calculated monthly) over the 15 year lease period.

Plan A seems to be most popular with children who wish to purchase a unit for their parents and Plan B seems to be the choice for elderly who buy for themselves. There are substantially more Plan B buyers than those who avail themselves of Plan A. We have completed a full tabular analysis of Cherish Yearn's fee structure which, again, is available to clients.

It is fair to mention that in the past, Cherish Yearn experienced some controversy over both its fundamental ability to offer sub-acute care services as well as its adherence to the original land grant use rights. The issues here may have been cleared up but there has been at least one published article in the media discussing the facility's "land rights" issue the details of which was supported by a credible, well connected source who has since spoken to me directly. In some quiet corners, rumors persist regarding the facility's legality, but in the end, I can see how this may just be envious chatter over Cherish Yearn's unprecedented success. Let's not forget, the truth in China has many layers.

So, in submissive genuflection, I offer faithful congratulations to the Lazarus of Pudong. Despite all, I believe it to be the most successful CCRC project today in China and its program is unique: truly a Chinese sui generis model.

The Terminus

Shanghai Lilly's assertion regarding the time and effort it took to secure her reputation whistles true and sharp about many endeavors in China; virtues such as patience and fortitude are essential. Likewise, it will take more than just a few attempts at CCRC development to perfect the model in China. CCRC's are complex undertakings and even in the West, developers with all their access to data and experience often misstep and build mistakes. So it is no surprise that the Chinese incarnation of a CCRC is a wobbly work in waiting. While I see near term success for the smaller, sub-acute facilities currently being built along the east coast of China by both foreign experts and local developers, nothing will dissuade, much less disabuse, the Chinese entrepreneur from pulling the heavy freight of a senior living mega-project. These immense CCRC's may be the track the industry ultimately takes, but for now were I an investor or owner/operator; my concentration would remain focused on the light at the end of a tunnel: more manageable, higher acuity and, say, narrow-gauge projects; let's call them the "Shanghai geriatric express".

In closing, I have taken this article's theme, meaning Chinese films or films with a China theme, quite far...in fact I have extended it further than I ever thought. And this posting was indeed the longest of all postings to date; I did pile it on you, the reader, with endless literary metaphor on top of a mildly amusing allegory, and for this I have not a single pang of guilt. And while I often wonder about Jiang and her whereabouts, I needed to get back to the mechanics of senior living in China; thus the nuts and bolts of this post. No worries, we will revisit the human side of this business again soon and some! I have two more postings of this ilk remaining which I will publish before the summer. After a break, I will return in September with something new and refreshing, but if you have an idea or are curious about an aspect of this business; as always, I am only too happy to listen.

Bromme is President of Hampton Hoerter China, the leading healthcare management consultant, capital raise boutique and senior living advisor in Asia. While Bromme spends most of his time in China, he can also be found in his Hong Kong office or on the beach in Amagansett, NY with his family. Email Bromme at bhc@hamptonhoerter.com

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Uncategorized https://www.chinanewsx.com/blog/all-aboard-this-is-the-china-ccrc-express/ https://www.chinanewsx.com/blog/all-aboard-this-is-the-china-ccrc-express/ Editor Thu, 11 Oct 2018 10:50:07 -0400
China Market Entry Strategy: Start Online

China has grown to become one of the world's leading trading economies and a business hub for companies from all around the world. This trend has made doing business in China one of the most lucrative endeavors for companies looking to invest here. China offers both companies and businesses great investment opportunities which explains why every one of them wants to invest in the booming trading economy.

There are many reasons as to why China is such a good place for doing business and according to a number of china business consultants, population plays a huge role.

China's population

According to the stats released from the sixth census in 2010, China population stood at 1,370,536,875 representing a 16.7% increase from the previous census in 2000 which stood at 1.2 billion. This growth was even despite the many initiatives taken by the government to try and control the population growth especially through their one-child policy program.

However, this was not the case post 1949 as China leaders viewed large population as an asset and encouraged people to populate. As per the first census that was conducted in 1953, China's population was at 583 million. Later on, it became apparent that the rapidly growing population was becoming an economic liability and therefore, measures had to be taken. This triggered the mass birth control initiative by the government which finally led to the one-child policy which was later on abolished in 2015.

According the projections by the United Nations, it is estimated that the population by 2050 will have reduced to 1,295,604,000 and up to 941,042,000 by the year 2100. Therefore, keep this in mind when formulating your china business strategy if you want to take advantage of the many opportunities presented by this second world's leading economy.

Formulating your china market entry strategy

Due to the prominence and the competitive nature of China's market, it is often daunting to break into the market and automatically become an instant hit. This can explain why most companies opt to seek help from China business consulting agencies even as they continue to formulate their own market entry strategies.

In such a competitive market, it's highly recommended to start online as an initial step. There are a number of benefits associated with this market entry strategy and include but not limited to:

It's always easy and fast to set up an online business in China because there are less restrictions 
It is also your best option if you want your business to get a nation-wide coverage 
Setting up an online business is relatively cost effective 
You not only get nation-wide coverage but also global coverage 
You get to manage your business from anywhere in the world 
The growing demand of e-commerce businesses in China offers you a perfect opportunity to start an online business in China

E-commerce business in China

E-Commerce business in China is thriving. In China, B2C online sales are growing at an annual rate 25 percent thereby offering businesses with plenty of investment opportunities to take advantage of. According to an analysis done by Bain & Company, the B2C online retail in China is estimated to grow three times faster than the overall retail. In fact, it is estimated that by the year 2018, half of the total online sales will emanate from Tier-3 cities and below.

As a matter of fact, the transaction values of the China's B2C online market as per the third quarter of 2015 (November) reached an estimated 503.6 billion yuan (approximately $78.58 billion) representing a 49.7% increase when compared to the same period last year.

The growth of e-commerce businesses in China has surprised many considering the fact that China's path to e-commerce leadership was hard to foresee about a decade ago. As of 2000, China was yet to develop any e-commerce application. There were only 2.1 million internet users registered that year which gave little hope to e-commerce businesses. Fast forward to 2013, there were about 600 million internet users and the booming e-commerce business was attracting interest from all around the world. It is even estimated that China is on course to surpass the U.S and become the leading e-commerce market place in the world. This makes e-commerce business development china a lucrative venture for companies and businesses looking to explore the China's market.

This article is written on the behalf of Leverage China Who are best China Business Consultants helping Americans to enter in china market.

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Uncategorized https://www.chinanewsx.com/blog/china-market-entry-strategy-start-online/ https://www.chinanewsx.com/blog/china-market-entry-strategy-start-online/ Editor Wed, 05 Sep 2018 10:49:22 -0400
China Eclipsed the US As the Biggest Trading Nation - Questions to Ask From an Austrian Perspective

Last month one of the Bloomberg's headline news was titled "China Eclipses the U.S. as Biggest Trading Nation". There seems to be of concern China's 2012 reported trade of $3.87 trillion surpassing the U.S. report of $3.82 trillion. For the full article click on the link below, at the bottom of this article.

The concern arises with the fact that...

"China's growing influence in global commerce threatens to disrupt regional trading blocs as it becomes the most important commercial partner for some countries. Germany may export twice as much to China by the end of the decade as it does to France, estimated Goldman Sachs Group Inc.'s Jim O'Neill."

Why worry so much about an Olympic athlete that had worked hard for many years to win the gold medal? The benefits of twenty and some years of manufacturing and producing real capital in the world are evident and well deserved. As far as Germany increasing its exports to China there should be no big surprise. Germany, one of the few productive economies left in the EU, needs to find a strong trading partner with whom to exchange goods and services. The key word is "strong", financially strong. Who else should Germany trade with? France, Spain, Italy, Greece, countries which are literally economically insolvent?

O'Neill goes on saying that...

"For so many countries around the world, China is becoming rapidly the most important bilateral trade partner. At this kind of pace by the end of the decade many European countries will be doing more individual trade with China than with bilateral partners in Europe."

So, what's wrong with that? If I owned a company and found that my best consumers for my product are on another continent, I would not hesitate. In addition, knowing that my consumers are financially capable of buying my products gives me even more reasons to target that market. Why settle for local consumers heavily in debt who can't afford my products and/or would have to acquire more debt to afford it? Competition and free markets are key components of growth and success. At this point, those European countries should pay serious attention and do whatever it takes to become competitive in the market.

Then, under the chapter U.S. Leadership, we're finding out that...

"When taking into account services, U.S. total trade amounted to $4.93 trillion in 2012, according to the U.S. Bureau of Economic Analysis. The U.S. recorded a surplus in services of $195.3 billion last year and a goods deficit of more than $700 billion, according to BEA figures released Feb. 8. China's 2012 trade surplus, measured in goods, totaled $231.1 billion.

The U.S. economy is also double the size of China's, according to the World Bank. In 2011, the U.S. gross domestic product reached $15 trillion while China's totaled $7.3 trillion. China's National Bureau of Statistics reported Jan. 18 that the country's nominal gross domestic product in 2012 totaled 51.93 trillion yuan ($8.3 trillion).

"It is remarkable that an economy that is only a fraction of the size of the U.S. economy has a larger trading volume," Nicholas Lardy, a senior fellow at the Peterson Institute for International Economics in Washington, said in an e-mail. The increase isn't all the result of an undervalued yuan fueling an export boom, as Chinese imports have grown more rapidly than exports since 2007, he said."

As far as services versus goods provided this is a clear sign that the U.S. does not provide enough goods. Goods are of two kinds. Consumer goods (those items we shop for such as cars, furniture, toys, clothing, jewelry, etc) and capital goods (which are the machinery and equipment with which consumer goods are being produced). Maybe the U.S.'s protectionist agenda, taxation, heavy unionism in conjunction with a national trend of favoring a socialist, if not fascist, economic system did not help after all. Maybe the corporate bailouts and Quantitative Easing did not in the end help the private manufacturing sector.

If I were in a position of power I would wonder - and would want to find out - how come my country with a GDP of $15 trillion has a trade deficit higher than my competition, which has a GDP half of my country's GDP. Could it be that too much of our GDP is comprised of 1. the growing of the federal government, and 2. military exposure all over the world? Could it be that such a big economy has little to justify its big number considering its producing capacity is in a less than desirable stage? Mr. Lardy addresses such a question but he seems surprised. But the small businessman in America is hardly surprised. Why? Because it's become very hard for the small business owner to compete with the government subsidized corporations when he has to jump government imposed barriers in form of rules and regulations, when he's coerced with providing health insurance coverage to his employees, and when he's faced with minimum wage restrictions. Then Mr. Lardy brings up a good point. China's imports are now replacing its exports. The answer is: Think of the U.S. back during the 1980′s, when it was the largest manufacturer in the world and the largest creditor. There seems to be a role reversing going on.

The article goes on...

"Biggest Exporter

The U.S. emerged as the preeminent trading power following World War II as it spearheaded the creation of the global trade and financial architecture. Protectionist policies in the 1930s had exacerbated the global economic depression. At the same time the U.K., the leading trading nation of the 19th century, began to dismantle its colonial empire."

Wait a minute, did I read that right? It says that Protectionist policies in the 1930′s had exacerbated the Depression. Wasn't Goldman Sachs concerned with Germany not trading locally within the E.U. territory? What Germany is doing is simply trading in a free market exchange. Why use protectionism to stifle it?

If the article referred to the U.K. as a colonial empire what makes today's U.S.A. different than Great Britain during the beginning of the last century?

"China began focusing on trade and foreign investment to boost its economy after decades of isolation under Chairman Mao Zedong, who died in 1976. Economic growth averaged 9.9 percent a year from 1978 through 2012."

After a long period of central planning and economic regression under the communist system China recognized that hard work and free markets are the answer to economic prosperity.

"China became the world's biggest exporter in 2009, while the U.S. remains the biggest importer, taking in $2.28 trillion in goods last year compared with China's $1.82 trillion of imports. HSBC Holdings Plc forecast last year that China would overtake the U.S. as the top trading nation by 2016."

This begs the question: Is the U.S. consuming too much and producing too little?

The article continues with claims from a few banking institutions that China's export figures could be manipulated. Maybe or maybe not. What I know is that wherever I shop in the U.S., whether Walmart or JC Penney, I can't help noticing the "Made in China" tags.

Eswar Prasad, a former International Monetary Fund official who is now a professor at Cornell University in Ithaca, New York, says...

"The U.S.'s bilateral trade deficit with China, which peaked in 2012, could remain a flashpoint of tension between the two countries."

Why tension? Is it mutual from both countries, or unilateral? The question of who benefits the most out of the trading partnership at this time has not been addressed enough. What would happen to American people if Chinese goods imports would stop over night? Has the American politician explained how the lifestyle of the average American would be impacted? Has it been argued that an unemployed American may suffer drastic changes? The typical comment out there is "let's build American". Sure, I am all for it but with what? There is no savings to produce the capital required to produce goods. Or should we borrow more and increase our debt? Should we allow unions to force manufacturers to keep wages up? If we do, it means that we should also expect to pay double, if not triple for a product that otherwise would have cost us less if it were imported from China.

On the other side would China and its people be affected as much? Do they need the U.S. to consume its products? Maybe. But what if the Chinese renminbi is allowed to freely float? If that happens, the Chinese people's purchasing power is increased. If their currency goes up it means their people would be able to afford more. With a population of more than 1.3 billion I would think there would be a large enough market to consume the locally manufactured products. Not to forget the rest of the countries in the region, some with affluent residents (such as Singapore) and some emerging countries with growing industries and growing wealth (Indonesia, Malaysia, Vietnam, etc).

Mr. Prasad continues...

"This trade imbalance is not representative of the amount of goods actually produced in China and exported to the U.S., but this perspective tends to get lost amidst the heated political rhetoric in the U.S."

If it's not indicative of the productive nature of China then what does it represent? The answer is just that. China: Large production and little consumption. U.S.A.: Little production and large consumption.

Goldman Sachs', O'Neill, is concerned with...

"the trade figures underscore the need to draw China further into the global financial and trading architecture that the U.S. helped create. One way or another we have to get China more involved in the global organizations of today and the future despite some of their own reluctance. To not have China more symbolically and more importantly actually central to all these things is just increasingly silly."

Why bring China to be part of the Wall Street game? So that it becomes part of the Debt web and contributes further to the global economic instability? No, it's not silly to be sovereign. No, it's not silly to be self-sufficient. And it's not silly to be rewarded for hard work leading to production of real goods. Better than Goldman Sachs' paper derivatives. Common sense, if applied, should lead us to think of this as an advance warning. Maybe it's time America starts producing real hard assets instead of Wall Street paper assets.

http://www.bloomberg.com/news/2013-02-09/china-passes-u-s-to-become-the-world-s-biggest-trading-nation.html

During today's economic climate one thing is guaranteed. Inflation is inevitable. How this event will impact your life -- and your family's -- in this decade depends primarily on what action you take today. Relying on the advise of a financial planner that tells you stocks or mutual funds are the way to go should be the last thing on your list. Read, learn, and use common sense when you strategize. The one that will have your best interest at heart is you, trust me! Be proactive rather than reactive. During high inflationary times only a handful of people are left unharmed. In order for you to be one of them you need to learn how. Your physical/mental health and asset preservation should be top priority. For more tips on how to stay on top -- when many will drown -- during the next economic crises visit my Blog at http://carmenalexe.wordpress.com/

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Uncategorized https://www.chinanewsx.com/blog/china-eclipsed-the-us-as-the-biggest-trading-nation-questions-to-ask-from-an-austrian-perspective/ https://www.chinanewsx.com/blog/china-eclipsed-the-us-as-the-biggest-trading-nation-questions-to-ask-from-an-austrian-perspective/ Editor Wed, 08 Aug 2018 10:48:03 -0400
China - An Ideal Place to Invest

China is a diverse and quickly growing world marketplace. Most of the world's leading corporations now have offices in China. Finding ways of international trade with China is a great way to capitalize on their growing economy.

In a period of global recovery, the world's largest exporters are now looking towards pursuing international trade with China. Since the 1840s, Western companies have dreamed of the riches a country as large and - since 1978 - as dynamic as China would generate for them. Some have succeeded; many big companies, including General Motors, would have found it much harder to re-emerge from bankruptcy without profiting from international trade with China.

There are wide range of opportunities for international trade with China for exporters. Many major fields are currently enjoying heavy growth are: ready-made food & beverages, transport, Information technology and telecommunications, protection of environment,minerals and power, estate construction equipment and services. 
There are few things that should be kept in mind when one goes on the expedition of exploiting international trade with China. These are:

Do your homework 
Beware of industrial dynamics 
Take your time 
Mistrust and opportunism are endemic in China 
Trust is interpersonal and takes time to build 
Chinese society is hierarchical

The best opportunities for international trade with China include education, healthcare, food, clean-tech/green-tech and software industry. I would like to discuss packaged food among the different fields in which international trade with China takes place usually.

Packaged Food in China

Since China is developing,demands with regard to more advanced goods, and also the emphasis on excellence and freshness of food is growing. This means that there is a significant unsatisfied requirements with regard to packaged food in China.

China has always been a stable market for imported goods, especially when it comes to hotels, cafes, bars, modern and western style restaurants or motels. Recently, Brand significance and loyalty is increasing in China. So that show that companies having developed brand recognition worldwide and non-passive marketing techniques will capture greater share of customers and market. International organization shaving super market permissions in China include Yaohan, Wellcome, Parkson, Park 'N Shop, Careful, Price art and CHC.

These organizations are establishing supermarkets in limited geographical locations. Sales of packaged food in China were valued at US$124.3 billion in 2010. The industry of packaged food in China is expected to grow by 51.4% in value from 2011 to 2015.

The dairy market was the largest segment in the market of packaged food in China with sales of US$25.1 billion in 2010. Bakery products and dried processed food rank second and third in the sector of packaged food in China.

The top packaged food sub-categories include drinking milk products, baked goods, chilled processed meat, instant noodles, vegetable and seed oil, etc. The countries where these products are easily available at low cost or where these products are highly in demand and those which have good trade relations with China would be more successful in benefiting from international trade with China.

For more info from Rinda L Martin regarding trading with china [http://www.daxemetrade.com] or china distribution [http://www.daxemetrade.com], visit daxemetrade.com.

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Uncategorized https://www.chinanewsx.com/blog/china-an-ideal-place-to-invest/ https://www.chinanewsx.com/blog/china-an-ideal-place-to-invest/ Editor Thu, 05 Jul 2018 10:47:16 -0400
Travel to China - Exploring the Possibilities

China is a country with deep traditions and diverse landscapes. Travelers to China can expect a unique experience that will include beautiful scenery of every variety, incredible food, fascinating cultural discoveries, and so much more. For many, it is very challenging to take in all that China has to offer in a single trip. To make the most of the time and resources that are available to you, it can be helpful to try to focus your itinerary on a few regions, points of interests, and activities that can be given the time needed to truly take it all in. Trying to pack your itinerary too full can be overwhelming and may diminish your enjoyment of this incredible destination.

Getting Started with your China Travel Planning

Many travelers to China have opted for the planning assistance from tour operators, like Wendy Wu Tours, that specialize in travel to China. By utilizing the knowledge and connections that are available through a reputable tour coordinator, you increase your likelihood of having an enjoyable visit to China. You can choose to be part of a group tour or can have a tailor made private vacation. You will have the opportunity to focus on the sights, tastes, and sounds of this beautiful country without having to fuss with the travel logistics.

If you are planning your first trip to China, it can be helpful to do plenty of online research or consult with a travel planner to narrow down the time of year you plan to travel, the key destinations you hope to visit, and the various activities you wish to experience. China is a large country with diverse offerings in every region. By starting to focus your itinerary, you can better define the resources that are available to assist you in the detailed planning of your trip.

Travel Considerations:

Seasons for Travel

The climate in China varies dramatically each season and can even vary from region to region. However, the most pleasant temperatures can generally be experienced in late spring and early fall throughout China. Even during the preferred months for travel (May & September), it is important to pack clothes that can be added or removed in comfortable layers as the temperature fluctuates.

High and low tourism seasons in China are also important to consider as you make your travel plans. Congestion in major cities and at popular tourist attractions can be overwhelming during high seasons, making it a challenge to secure travel arrangements. High Season in China generally coincides with national holidays and school breaks.

Language Barriers

While the English language has been included in the curriculum of many schools in China, language barriers still many challenges for travelers in China. It can be valuable to take a few language classes before traveling, or at least invest in a pocket translator or Chinese phrase book.

Entry & Exit

Entry into China requires a Visa and a minimum of six months validity on the passport. It is important to check on the status of your passport before making travel arrangements. Depending on the locations you are looking to explore in China, a permit may be required for entry. It is advisable to check into the entry and exit regulations for your various destinations in China before you finalize your travel itinerary.

Health & Safety

While it may be unlikely that you will ever require medical or safety assistance while visiting China, it is valuable to have an understanding of the standards you can expect. All travelers in China are held to the laws of the Chinese government. Chinese police have the authority to detain and possibly deport any tourist that does not comply with local laws and regulations.

Health care accommodations in China are not equivalent to the standards found in many industrialized nations. Most urban areas have adequate medical facilities and staff to handle a variety of medical issues. However, it can often be a challenge to find English speaking medical staff and there are very few patient protection regulations in place in China. In rural areas in China, the facilities have limited resources and supplies, as well as minimal qualified healthcare staff.

For the best health and safety care while you travel in China, it can be beneficial to secure the services of a recognized travel agency that is experienced in travel in China. These travel agencies have developed trusted relationships throughout the country to ensure the safety and well being of their clients. It is encouraged that you take precautious for your health and safety while traveling overseas.

China has so many amazing places to discover that it will become a place to visit time and again. Travel planning is the key to enjoying a successful vacation in this beautiful and dynamic country.

Ecreativeworks
13220 County Road 6, Suite 150
Plymouth, MN 55441
888-234-5071
http://www.ecreativeworks.com
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Uncategorized https://www.chinanewsx.com/blog/travel-to-china-exploring-the-possibilities/ https://www.chinanewsx.com/blog/travel-to-china-exploring-the-possibilities/ Editor Tue, 05 Jun 2018 10:46:34 -0400
A Few Things Foreigners Get Wrong About China

Most executives of multinational companies (MNCs) are generally aware that growing a business in China presents very real and unique challenges that should be factored into the initial investment and the overall business objectives. However, in the rush to take advantage of the so called never-ending growth and scale of China, companies can make strategic and often operational miscalculations that can compromise their ability to meet their goals.

Here's a list of a few most common misunderstandings about China:

1. China is just like America was in the 50's (or Japan in the 80's, or Mexico in the 90's, etc).

It seems like this might be a good historic analogy; however, China is simply too big, too complex, and very much integrated with the rest of the world. Also, China's consumer culture is skyrocketing in its own and very unique path.

2. China's public / government data are generally unreliable.

There have been tremendous strides recently in the availability and quality of public data, especially for urban demographics. Close attention should be given to the development plans of the central and city governments. Their plans are clear for the most part and also quite ambitious. It is also highly recommended to gain access to the local Mayor of the city you target for your primary business plans. These local government officials are usually more than willing to assist new business development and provide various and important data / facts (i.e. population density, retail clusters, transportation infrastructure, etc) in order to help stimulate growth within their communities.

3. China's internet is like the rest of the world.

As Google's drama in China was recently highlighted, their internet is quite unique and worth the extra time to investigate. In fact, many of the large US based sites such as; eBay, Amazon, Facebook, Twitter, etc are for the most part insignificant and practically non-existent. China has its own internet pulse and it is significantly different compared to the Western world.

4. China's consumers are split between urban and rural.

This is partially correct; however, most global brands are actually spending their time and efforts within a few limited parts of China, usually inside the 6-8 mega urban cities. The majority of China's consumer market is overwhelmingly clustered within cities that have staggering populations. More important however, is the proximity to the country's cultural centers, such as Beijing, Shanghai and Hong Kong.

5. There are big generation gaps between each decade.

Generation gaps are in fact huge, and they crop up more often than every decade. This is a direct result of an extremely fast economic growth. Changes in both technology and culture result in wildly different formational environments. Today's young adult in China grew up listening to various Asian boy bands and teenagers meanwhile are watching China's version of reality TV. Is it any wonder they embrace a different outlook, which in turn baffles their elders?

6. China is rapidly westernizing.

There's no doubt that China is modernizing, and becoming more and more influenced by the Western culture, just look at all of the KFCs and McDonald's across the country. However, can we really call it westernizing if those US based restaurants offer congee as part of their breakfast menu? While there is a notable increase in Western brands and lifestyle options, it is also matched by an increased interest in historic Chinese culture. In fact, there is a strong argument that China is becoming more Chinese. In addition, there's another often-overlooked influence, and it's located in North Asia. Japan, the world's second largest economy, sits off China's shore, and its cultural influence is at least as significant as that of the Western world. South Korea also has a strong and considerable influence on the young adults of China.

7. Chinese youth are divided into tribes.

There is some truth to this, and young people are segmenting themselves at earlier ages these days; however, these tribes look different from their Western counterparts. In the West we can use magazines, music and brand affiliations as a way to best describe a group or tribe. These don't quite work in China, because the print media is relatively small and the music scene is very disjointed as a result of piracy. Brand preference can be easily descriptive in the larger cities, but in the rest of the country, brand differentiation is considerably more blurred. So, in these cases, the kids gravitate towards celebrity preference, hobbies, and use memberships in multiple online clubs, etc to differentiate themselves. In China, this can say a lot about a person; however, there is also a tremendous amount of fluidity and change within this particular demographic.

As we have witnessed over the past 10-15 years, market dynamics within China are changing very rapidly as a result of high growth and an influx of both foreign and local private enterprise. So, market research data must be regularly refreshed and reviewed in order to remain current. In addition, proper consideration must be made to a company's governance model that integrates their China operations with a global perspective, while retaining in-country business unit autonomy.

Ron Hartfeil is the President at R9 International Sourcing and Consulting ( http://r9international.com/ ), an independent consulting firm specializing in the Consumer Goods industry. Previously, Mr. Hartfeil was the GM for Gibson Guitar, China Division, COO of Gibson's Global Baldwin brand, and Director of Global Footwear Operations at Nike, Inc.

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Uncategorized https://www.chinanewsx.com/blog/a-few-things-foreigners-get-wrong-about-china/ https://www.chinanewsx.com/blog/a-few-things-foreigners-get-wrong-about-china/ Editor Thu, 10 May 2018 10:42:48 -0400
China Investment Research: Pollution Weighing Down China's Future

In an article recently penned by The Guardian, "China's burgeoning middle class has lodged its first mass challenge against the government by staging a large environmental protest in southern China." In China, environmental issues are typically neglected as the country concentrates on its rise as an economic power. Even with increasing interest in environmental reform around the world, cancer caused by pollution, is the leading cause of death in 30 Chinese cities and 78 counties, the Ministry of Health says. How does this affect China's economic future? This is no longer a topic for environmentalists. More than ever, pollution should be taken into consideration when conducting China investment research or China company research.

Only 1 percent of China's inhabitants are said to breathe air deemed safe by the European Union (EU). Much of China's pollution is generated from producing cheap products for the US and Europe. Western countries are not completely without blame. China subsidizes the price of goods for products like electronics using practices such as allowing electronic waste to be recycled and dumped in the country. The "savings are exported to the US and Europe but the destruction of the environment stays in China." These indiscretions have huge implications according to China economic news and other leading China investment research firms.

As developing countries seek to eliminate their usage of coal in power plants due to dangerous emissions, China has rapidly expanded their coal market. At multiple ports, internationally, ships are lining up to load coal for furnaces in China, "which has evolved virtually overnight from a coal exporter to one of the world's leading purchasers," according to the blog China Environmental News. China accounts for half of the six billion tons of coal burned globally each year, leading pollutants to leak into the atmosphere anyway, despite attempts by developed countries to stop them. The rush to the Chinese market has aided in doubling the price of coal over five years - a figure not lost on China investment research firms.

David Graham-Caso, spokesman for the Sierra Club, says, "This is a worst-case scenario." Its "Beyond Coal" campaign has helped to block 139 proposed coal plants in the United States over the last few years. "We don't want this coal burned here, but we don't want it burned at all. This is undermining everything we've accomplished."

China Environmental News points out the ongoing "love-hate relationship many wealthier countries have with coal." "Environmental laws have made it progressively harder to build new coal-fired power plants but they do not restrict coal mining to the same extent...because the coal trade is a lucrative business and because the labor-intensive mining industry creates jobs." China is expected to import up to 150 million tons this year continuing the lucrative export trade industry and needs to because much of its own coal is low grade. Still, China is perceived as the largest polluter, which could have an effect on imports to countries looking to enforce regulations on worker safety and emissions standards, due to concern for global implications of China's environmental practices. Additionally, some domestic financial loss could occur because of citizens' response to China's environmental practices.

Zhang Zhengfeng is a senior vice president of a multinational China investment research [http://www.aeriresearch.com/] firm. He has extensive experience leading teams developing China company research [http://www.aeriresearch.com/], equity research in China and Asia economic research.

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Uncategorized https://www.chinanewsx.com/blog/china-investment-research-pollution-weighing-down-chinas-future/ https://www.chinanewsx.com/blog/china-investment-research-pollution-weighing-down-chinas-future/ Editor Sun, 08 Apr 2018 10:42:01 -0400
8 Must-Knows About Acquiring or Investing in a Business in China

China is not just the World Factory, most booming market for resources and consumer goods and the fastest growing economy in the world with an average GDP of over 10% in the past decade, it is also an attractive destination for foreign investment since China opened its door to foreign businesses in 1978. With China's access to WTO in 2000, less restriction on foreign investment, new infrastructure, supply of abundant quality and cheap labour, there are good opportunities to invest in a quality business or acquire businesses in China.

Acquiring or investing in an existing business is a way to quickly establish your own presence in China and leverage its facilities, resources and networks to access the Chinese market or conduct low-cost manufacturing in China and then export to the global market. With the global financial crisis, China presents a great opportunity for Australian companies to acquire export-oriented manufacturers especially in East China and South China. However, it is usually a complicated and exhausting process.

Here are some Must- knows you need to be aware of before take your first move to acquire or invest in a business in China:

- Take a strategic approach to acquire or invest in a business in China. Review your internal resources, corporate strategy and business strategy, and identify needs and gaps so as to better assess the option to acquire or invest in a business in China. You may start by reflecting such questions: what is the ultimate goal to do so? How does this acquisition/investment serve my long term business strategy? Is there any alternative? What resources can I allocate to this acquisition and investment? What attributes do I need from the acquisition target.

- When search for acquisition or investment target, bear in mind you are looking for the best fit rather than the cheapest or biggest. How does the target fit in your overall business strategy and China strategy? Do you have a criteria list of must-have and ideal attributes of acquisition/investment target?

- Do your research and search carefully among a large pool of acquisition/investment targets. When foreign companies enter China, they are often amazed by the "low price" they are paying to acquire a business without much comparison with other potential targets.

- Conduct comprehensive due diligence on your acquisition/investment target. The due diligence is much more than just financial auditing. You need to fully understand the target from tip to toe: industry reputation, business scope restricted in their business licence and industry licence, ownership of their venue and facilities, financial aspects, manufacturing capabilities, current ownership and corporate structure, marketing and sales capabilities, corporate culture, team, relationship with local government, supplier and client references, patents and trademarks, legal issues, default history, market scandals and brand crisis, etc. You may leverage a consulting firm to assist.

- Have a competent Chinese negotiator in your acquisition team who can understand all the cultural nuances and negotiation tricks of your Chinese target. Bear in mind: not any Chinese can do this job as not any Australian can negotiate a good deal in Australia. Find competent and experienced ones.

- Understand compliance and governance issues and smartly structure the deal and the organization. China restricts foreign investment in some industry sectors in term of maximum percentage of shareholding, especially financial sector, media and some critical resources sectors. Also these is restriction on the number of directors and normal practice on the appointment of Chairman and Managing Director.

- Do not under-estimate the complexity of the bureaucratic procedures and timeframe. As a foreign investor, you may have full proof of your qualification and financial capabilities and then go through Chinese government agencies to get all documents chopped. It will be more cost effective and efficient to appoint an experienced agent who knows where to knock at the door and get things done in China.

- Develop a profit repatriation mechanism and an exit strategy. You invest in China not to lock your money in China and be there forever. Think about the end from the very beginning. As Chinese saying says " without thinking on a long term basis, you will always have immediate trouble".

For more tips and information on doing business with China, visit Sara Cheng's blog: http://ChinaSolutions.wordpress.com

Sara Cheng

Blog: http://ChinaSolutions.wordpress.com Sara Cheng has over 18 years experience in international trade and business consultancy both in China and Australia. Sara is also a speaker, writer and consultant on doing business with China, and co-authored the book Engage China-The Realities for Australian Businesses.

Sara has assisted many companies including some icon brands with various business models across a broad range of industry sectors to successfully do business with China.

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Uncategorized https://www.chinanewsx.com/blog/8-must-knows-about-acquiring-or-investing-in-a-business-in-china/ https://www.chinanewsx.com/blog/8-must-knows-about-acquiring-or-investing-in-a-business-in-china/ Editor Fri, 09 Mar 2018 10:41:11 -0500
Why Study Mandarin in China - China's Potential

There is a great deal of talk at the moment about what China is becoming. With its advent on the world stage as a global powerhouse of economic change, the balance of cultural power will also eventually be recalibrated. As China overtakes Japan as the worlds second largest economy it is a good time to take stock of what this will mean for the future of Chinese language studies.

So it finally happened: China is now the second largest economy in the world. For an economics geek and China fetishist like me, this is the most interesting news that I have heard for a long time.

What will this mean for students? What will it mean for businesses?

There is no doubt that the greatest paradigm shift of our time will be China's ascension as a global super power - but being number two, in China's case, is not as impressive as it sounds. After all, the Chinese are four times as populous as the heavy weight champion of the league - the US.

What is impressive is China's potential. With an annualized growth rate of 10%, China doubles its output every eight years. How long this will continue is a matter of complicated debate, mainly focused on the degree that the rate of productivity gains can offset increasing wages. In other words - it depends on how long China will remain the "Factory of The World" and if its export led growth can continue. However, this debate is only regarding the time that it will take: China will eventually, and historically speaking, very soon, surpass the US in absolute terms even if its growth rates fall to less divine levels.

When China's average income becomes a fourth of that of US citizens, Beijing would be on par with Washington. This will happened within 20 years.

When China's average income is half, it will be more than twice as large. This will happen within our lifetime.

When the same, it will dwarf the US economy, which will then be less than a fourth of China's.

These figures, which are mind-blowing, describes a phenomenon that will change the world. I wrote that this ascension would be the greatest paradigm shift of our time. I stand by that. Right now the English language rule be because the English speaking world rules. Gordon Brown recently stated that soon there would be more people speaking English in China than in the West. There are 300 million Chinese studying English. The demand for Chinese people speaking English will be filled in 15 to 20 years.

Western students don't care about Chinese, if seen in this context: around 1 million people are studying Chinese as a second language globally; about half of them take this vocation serious enough to reach fluency. When the wave starts to turn, which it will within 15 years, and every large company will need a major contact point in China, just as literally every company has one in the US and Europe today, those westerners that can stand with one foot in the east and one foot in the west will be those that capitalize on the changes.

So: Why Study Chinese?

The main bulk of the benefit does not lie in what China is today, but in what it will become in a very near future.

Furthermore, the language component here is just a small piece of the puzzle. There is an enormous cultural divide between Chinese and Western ideas when it comes to everything: life, family, contracts, work ethic etc. If we look at the reality of the situation, knowing Chinese will not be enough. Because although trade is international, business is local: right now most business, just as with English, is done on Western terms, but this has already started changing. There will first be a long period of equality between these opposing world views, where a serious understanding of both vantage point will be essential, and perhaps, on a distant horizon, a Chinese advantage. As cash is king, and China gets rich, to understand the Chinese mind will be as important as understanding the product you represent.

So: Why Study Chinese (in China)?

Not only is it much easier to study Chinese in China than studying it else where, but the added kicker of cultural insight will be a defining character of many new top jobs that will emerge as China starts sharing the crown of economic might with its last rival for the heavy weight title, the US.

Rui Ming works for a Mandarin language school that is a great option for those that want to study Mandarin in China [http://www.learn-mandarin.net]. If you are interested in more information about learning Mandarin in China with Beijing Gateway Academy [http://www.learn-mandarin.net/learn-mandarin-in-china], please visit The Academy's website.

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Uncategorized https://www.chinanewsx.com/blog/why-study-mandarin-in-china-chinas-potential/ https://www.chinanewsx.com/blog/why-study-mandarin-in-china-chinas-potential/ Editor Thu, 08 Feb 2018 10:40:19 -0500
China, Absorbing 45% Of World's Natural Resources

China, A 'Black Hole' Sucking in the World's Natural Resources

While the USA has obsessed with the "Floating Yuan vs a Dollar pegged Yuan", China's policy has been to use a much broader strategy. China is buying the world's resources and has become a virtual "black hole", sucking in coal, oil, timber, steal, copper, minerals of all kinds, from throughout the globe.

Think of it, after nearly 10 years of pressure on China to let the Yuan increase in value, instead of letting it fall with the dollar, China finally let it appreciate.5 percent, making the total increase to 1 % since last June. The United States has followed a decade long policy of allowing its currency to drop in value, hoping that would fuel economic growth. But China is following a more powerful concept. Invest, buy, or control the "hard" resources of the world, and finesse the USA on "currency issues."

We, as a nation, are ignoring Chinese raw commodity import policies. I have witnessed the extent of the Chinese policy first hand in Nepal, Cambodia, Mongolia, Ecuador, and even in the "Autonomous Regions" of China, such as Tibet.

China is buying resources all over the world and as we reported 18 months ago, has become a resource hog, that in some ways distorts markets, and encourages corruption.

A few examples:

In Cambodia it is against the law to "log" the old hard wood forests, but if you are on the back roads near Sean Reap, after dark traffic fills up with "illegal" logging trucks delivering ill gotten wood to Phnom Penh, on the way to China.

In Mongolia, China has long made a concerted effort to gain control of Mongolian oil, copper, and coal resources. Much of Mongolia's coal is the high-quality "coking" variety vital to steel production which can be produced cheaply, for as little as $15 per ton. China is the world's largest user of environmentally unfriendly "dirty" coal. But the nation is growing so rapidly, it now produces over half of the steel in the world, so it will continue to be the world's largest polluter. This is made worse because three quarters of China's electricity is powered by coal fired stations.

In Kazakhstan, China is a major owner of oil fields.

In Kyrgyzstan, China continues to show interest in natural resources and officials are easily bribed or "influenced".

Both China and Russian jealously lust for the oil, wood, coal and other resources of Central Asia.

In Turkmenistan and Uzbekistan, China has, with cooperation with Russia, financed new pipelines along a general route similar to the old Silk Road.

Russia, is now a major source of oil for China, with the two nations jointly developing a new pipeline from Siberia to the Pacific by way of China, of course. Chinese oil imports will hit 12.5m barrels per day by 2020, up from 4m last year. Russia, is drifting away from Western oil and gas markets, at the consternation of Western Europe.

China's reach includes Latin America, and nations such as Ecuador, Venezuela, Bolivia, Mexico, Peru and Columbia find themselves "invaded" and courted by Chinese visitors, businesses, and buyers of natural resources. In some cases China is making financing and grants available for economic development in trade for access to natural resources of these nations.

But even with currency trading, China is out maneuvering the USA. China has just signed a deal with Russia to do extensive trading in Rubles and Yuan's in their trading, and ignoring the once all powerful dollar. It is interesting, the Islamic nations have worked to "eliminate use of the dollar", nations such as Venezuela, Korea, Iran have tried the same tactic, and now China and Russia are in the game.

As we have reported in Global Perspectives ( http://www.bootheglobalperspectives.com ) many times over the past 10 years, China has emerged as a world power, that will change the way we all live. VIPs and leaders will be well advised to monitor these trends. Access and control of natural resources continue to have global implications, and history shows, wars, and economic control.

Ben Boothe is an economic consultant and businessman who has served the World Bank, US State Department, USIS, USIA, as well as numerous governments, on banking, economic, and regulatory trends. His GLOBAL PERSPECTIVES has been followed by VIP's around the world. CEO or founder of several banks and corporations, Boothe serves as President of BBAR Inc., and does consulting in 21 nations.

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Uncategorized https://www.chinanewsx.com/blog/china-absorbing-45-of-worlds-natural-resources/ https://www.chinanewsx.com/blog/china-absorbing-45-of-worlds-natural-resources/ Editor Tue, 09 Jan 2018 10:38:50 -0500
The Basics of Importing From China

Back then, China was known as the land of the emperors and ancient civilizations. But not anymore. China has become a giant economy, overtaking Japan and coming second to the United States. China is growing by leaps and bounds in the import export business. It has become the largest manufacturer of many products exported to other countries such as mobile phones. In the same note, China with a population of over 1.3 billion has grown to become the biggest automotive market. If China continues the present trend in its import and export business, it is expected to remain the fastest growing economy and grow 10% every year, possibly overtaking the United States to be the world's economic giant.

What made China grow so big in the last 30 years? It would be a combination of factors such as:

1. China products can compete with products coming from other countries. There are myths that products imported from China have a problem with quality but manufacturers are quick to dispel this, stating that majority of the buyers dictate the standards of the products that they are manufacturing. Therefore, the blame cannot be passed on to them. A lot of big names in the world have their products made in China using quality materials and under strict conditions of manufacturing standards and quality control.

2. The Chinese government has cut the red tape, so to speak. Many of the obstacles that used to be imposed by the government have discouraged foreign businesses from pursuing transactions with China suppliers. China joined the World Trade Organization in 2001 and made itself more attractive to international businessmen with this trade liberalization. The WTO handheld China in its venture out into the international market and made it possible for China to lure in international buyers. When China opened its doors to the international market, it imbibed international trade practices and laws, making it easier and safer to buy their products.

3. With its high population, there are a lot of workers available in China. Because cost of living is lower in China, workers do not command the same level of wages as in the US or Europe. The cheap labor in China significantly reduces product manufacturing cost.

Along with these advantages and opportunities come risks. Because of the language differences, it would be difficult to do business with companies that do not have English-speaking staff. However, in recent years, the big manufacturers have included multilingual sales staff that can assist foreign businessmen. There are also Chinese business etiquettes that are totally different which would affect the success and failure of business transactions. Despite China's trade liberalization, traditions and culture still play big part in the business and this need to be taken into consideration when dealing with them.

It is highly essential for an importer to be flexible and study different sources for your products in case one or two suppliers fail. When starting off, it might also be a good idea to partner with private companies who already have information on trading practices as well as distribution channels in China. It is highly essential to understand the Chinese businessmen and their culture. There are online information, import export coaches as well as import export training courses and e-books that will keep businessmen updated on China's policies and practices. Better yet, get the services of import export agents and experts who know the intricacies of the China import and export business.

To learn more about the effective management of your China import business visit Importing Tactics. Our Chinese insiders will teach you to profitably import from china without getting burned. Find out more about how to import from China at [http://www.importingtactics.com].

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Uncategorized https://www.chinanewsx.com/blog/the-basics-of-importing-from-china/ https://www.chinanewsx.com/blog/the-basics-of-importing-from-china/ Editor Sun, 10 Dec 2017 10:36:59 -0500
Reasons to Visit China - Some of the Most Fascinating Experiences Await You in China

China never fails to wow its countless visitors with its many unique and superlative characteristics. The world's third largest country, China boasts a very long and rich history that spans thousands of years. It also has some of the most recognizable sites of both natural and architectural beauty that are in a league of their own.

Whether you prefer the fast-paced city life in major cities in the east, or authentic folklore of the ethnic tribes towards the west, there is never a lack of experiences for any visitor. Whether you prefer the balmy south or the frigid north, China is a destination that surely will not disappoint you. Here is why everyone should visit China.

China tourism has evolved to take excellent care of visitors' needs

China has quickly evolved over the years to revamp its image such that it now boasts much improved standards of living while throwing open its doors to all tourists and other visitors. Today, visitors to the country can visit most of the great sights without having to worry about unnecessary restrictions. The locals are generally warm and friendly to visitors, and they have been striving hard to improve on their English standards to aid in communication.

Finding accommodation in most of China's popular destinations is also a breeze, as there are more accommodation choices now than ever before to suit your budget range and tastes. Transport systems have also seen a vast improvement, meaning that you can quickly travel between two different parts of the country via rail or air.

Some of the most picturesque natural landscapes can be found in China

Whenever you visit one of China's renowned natural sites, an unforgettable experience is guaranteed, even if you may not a big fan of nature. Some of the most jaw-dropping landscapes can be found right here in China.

For instance, if mountains and hills have always fascinated you, the panoramic limestone cliffs in Guangxi province and the surreal fog-covered peak that is Huangshan will not disappoint. Travelling to northern Sichuan will bring you to one of China's most famous valleys - Jiuzhaigou. Here, the snow-capped peaks, waterfalls, forests and lakes will simply take your breath away. By visiting any of these sites or many others, you are guaranteed the experience of your lifetime.

China is home to some of the most impressive historical structures built by man

China's many magnificent man-made buildings and structures reflect the various architectural styles and characteristics of the different dynasties. Many of these structures are widely celebrated in world history and are very well preserved, thus giving all visitors a truly authentic taste of Chinese history.

The most prominent of these structures has to be the Great Wall of China, which is the world's longest wall built for defense and has never ceased to amaze its visitors. Similarly, the Forbidden City and Museum of Terracotta Warriors and Horses are just as grand in their elaborate design and scale. You need not travel far from the city to appreciate some of the most ornate examples of Chinese architecture. Many temples, landscaped gardens and other ancient structures with the most sophisticated architecture can be found in the major cities.

Experience some of the most unforgettable events and festivals in China

Last but not least, the unique and colourful events and festivals hosted by China every year are a major reason in itself for you to visit the country.

When it comes to hosting some of the largest names in international events, China has done it all. With the Beijing Olympics and Shanghai World Expo, and even more upcoming major events, China can take pride in delivering some of the most successful international events in its history.

However, to truly experience Chinese culture, you may have to go back to the country's roots and attend one of the many interesting local festivals. You will be treated to the most spectacular fireworks, lion dances and other traditional practices. Some of these festivals include the Chinese New Year, Dragon Boat Festival and Mid-Autumn Festival.

Tempted to visit China? You would need to prepare well for your trip in order to have an enjoyable time there. Chan Brothers Hotel Portal would be the ideal resource that you would need to search for hotels in China that would suit your particular needs and budget. Enjoy some of the most competitive booking rates as well as irresistible special promotions on selected hotels. Best of all, instant confirmation is guaranteed once you have made your booking.

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Uncategorized https://www.chinanewsx.com/blog/reasons-to-visit-china-some-of-the-most-fascinating-experiences-await-you-in-china/ https://www.chinanewsx.com/blog/reasons-to-visit-china-some-of-the-most-fascinating-experiences-await-you-in-china/ Editor Sun, 05 Nov 2017 10:36:19 -0500
China - The World's Leading Exporter

China is one of the oldest continuous civilizations and is considered as one of the largest and the most advanced civilizations in the world. Probably because China is a country where its citizens are united, its economy has boost into becoming the world's third largest in the world. Shortly trailing after Japan, the Gross Domestic Product of China is measured at $4.91 trillion. As such, China is considered as the world's fastest growing economy for the past thirty years. Aside from this, China is also the largest trading nation in the world. While it is also the world's largest exporter, it just ranks second largest importer of goods.

One of the leading export products of China are minerals. These minerals include tin, magnesium, antimony, molybdenum, mercury, barite, manganese, and salt. The worldwide demand for China's minerals is so great that it becomes one of the world's top producers of antimony. Moreover, it ranks second to the United States in the production and export of salt. In addition, the world's largest exporter of aluminum is also China. Indeed, China has established itself firmly in the global trade.

The biggest beneficiary of China's exports is the United States. In fact in 2006 alone, China was able to export $287.8 billion worth of products and merchandise to the United States. As such, the United States is considered as the number one trader for China's exports. From among China's exports to the United States, computer parts, peripherals, and accessories have the highest value. Other exports include computers, toys and sporting goods, household goods, video equipment, and household furniture among others.

On the other hand, the United States imports a number of products to China as well. The main exports of the United States to China basically composed of industrial products, and some commodities. The largest imported product s to China is semi conductors. Other imported products include soybeans, computer accessories, copper, aluminum, industrial machines, plastic products, raw cotton, civilian aircraft, and steelmaking material. Moreover, China also imports from the United States precious metals, railway transportation equipment, tobacco, corn, oil seeds and food oils.

China has not only invaded the US market, but the rest of the world as well. It is already very common to see a China counterpart of almost any product in the market today. In fact, most people even prefer China products because these products are significantly cheaper and are also of good quality. Contrary to the misconception that China products are cheaper because these are of less quality; these products would certainly be of lower costs because labor costs in China is way cheaper than in any other part of the world. Undeniably, China exports have conquered all parts of the world.

Export Import China [http://www.exportimportchina.net] products and merchandise have been one of the largest in the worldwide market. China exports [http://www.exportimportchina.net] have conquered all parts of the world.

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