China Business Blog
Putting China Business News in Context. From China Business Services.



Briefly…Top Ten Tweets (From ODI, CSR & M&A, To GDP, RMB & NDA) (Mar 5)
This week’s news update, from our ChinaBlogTweets Twitter feed, continues with some familiar themes… ...But we are experimenting with a different format – in order to expand on the issues, and improve the key-word searchability of the blog, we are using this post as a summary of our top 10 news items, and will include separate posts on selected issues, along with additional links and our own comments. Let us know how you like it. ODI US$60bn in 2010? RT @China_Daily: Overseas direct investment may soar http://tinyurl.com/yklgb26 7:32 AM Feb 27th
(See our post here)
Statistics…: Data accuracy RT @China_Daily: China mulls unified GDP calculation: NDRC http://tinyurl.com/yc2mmb7 8:32 AM Feb 28th
(See our post here)
CSR: Another bad Apple? RT @niubi: How Sincere is Wal-Mart’s Demand that Chinese Suppliers Meet Labor & Enviro Standards? http://bit.ly/a6Qe4Z 8:13 AM Feb 28th
(See our post here)
Employment: Countryside competition RT @fonstuinstra: China: Labor shortages driving up w...


ODI, M&A, & Policy Perils (Mar 5)
FDI 9Foreign Direct Investment) is so yesterday…today is all about Chinese ODI (Overseas Direct Investment). • ODI US$60bn in 2010? RT @China_Daily: Overseas direct investment may soar http://tinyurl.com/yklgb26 7:32 AM Feb 27th China Daily suggests rapid growth in 2010: “There is little doubt that the nation’s ODI in 2010 will climb up to $60 billion,” said [Liu Zuozhang, director general of the Investment Promotion Agency of MOFCOM] adding the year-on-year growth could range from 15 to 39 percent. During the first half of 2009, China’s ODI slumped nearly 52 percent as the world economy was still in limbo and domestic enterprises shied away from investment. However, things started to change in the third quarter of last year after ODI rebounded nearly 190 percent year-on-year to $20.5 billion.” There are many reasons for China’s increased ODI activity, but one of the key ones has been access to strategic resources: • The why of ODI? RT @chinahearsay: Is China trying ...


Better Statistics. Don’t Count On It. (Mar 5)
We have often written about the (over) abundance of (questionable and re-stated) data in China, and this continues to be an issue. One that seems to be causing the National Bureau of Statistics (NBS) some stress. First the powerful National Development & Reform Commission seeks to take away the responsibility for GDP calculations. Then the China Daily has a go at them for releasing some questionable and confusing data on house prices. • Statistics…: Data accuracy RT @China_Daily: China mulls unified GDP calculation: NDRC http://tinyurl.com/yc2mmb7 8:32 AM Feb 28th • NBS-bashing- China Daily is on a mission this week! RT @China_Daily: Confusing statistics http://tinyurl.com/ya4xdqn 7:16 AM Feb 27th We will have to wait and see what impact all this has on NBS and on economic data. But, hopefully, it will get better…just don’t count on it (and continue to monitor, seek out multiple sources, and get informed analysis of what it all means in context).


Another Bite at a Bad (CSR) Apple (Mar 5)
Oh dear…it is not the first time Apple has been bruised by accusations of poor controls over its China contractors, and it seems unlikely it will be the last. • RT @fonstuinstra: China: Apple admits using child labour to build iPods and iPhones in Chinese factories | Mail Online http://ow.ly/1bZDi 11:43 PM Feb 27th CSR has become a big issue in China, not least as it touches on political issues such as the “harmonious society”, the environment, increasing unionization, labour law, and anti-corruption campaigns. Of course big foreign investors, like the proverbial tall tree, attract the wind (or, in this case, media storm). While Apple battles its demons, other firms are taking note, and promoting their own CSR plans. Among them is Wal-Mart (China’s 7th largest trading partner - if it was a nation!). But a policy alone is not enough, especially for a high-profile company. Some have questioned teh firm’s sincerity: • CSR: Another bad Apple? RT @niubi: How Sincere is Wal-Mart’...


A Labour Shortage? In China? (Mar 5)
Excuse the (stretched) Monty Python paraphrase, overcome your shock that there could be a shortage of people in a country of 1.3 billion, and remember that things are rarely simple in China. While there is no shortage of people in China overall, there is a growing shortage (?) in some areas, such as the manufacturing hubs of the Pearl River Delta in south China. How could this be? There are a number of reasons, including the mobility and preferences of the mobile (migrant) workers. The southern factories are suffering from rising costs and compliance, as well as a fall-off in exports last year and, for those reasons, many have closed. But there is also competition from inland cities that are seeing a construction and manufacturing boom. And those cities are closer to home for many migrants. Why drive all the way to Dongguan, when you can be near home in Hunan? • Employment: Countryside competition RT @fonstuinstra: China: Labor shortages driving up wages – China.org.cn http:...


Briefly…Top Ten Tweets (From Protectionists, Paper & Pipes, To Hackers, Lawyers & NDAs) (Feb 26)
Another week flies by – with the help of a post Chinese New Year surge – and it is already the end of February! So without further delay, here is our ChinaBlogTweets roundup of China business news from last week. Going Global joelbackaler Whose your favorite of FastCompany 10 most innovative Chinese companies http://bit.ly/dlAugb @sagebrennan favs Eno, I’m partial to Alibaba 8:11 AM Feb 21st
Comment: We have been reading (and writing) about China climbing the value chain, Chinese companies doing more R&D, China doing more to protect IP etc., for a long time. Now we are seeing more innovative Chinese companies (another of our favourites is Broad Air Conditioning, from Changsha). More to come. Consumers: A sharp, double-edged sword! RT @elliottng: Chinese consumers: brand-sensitive price-sensitive and fickle… #berkeleyabc2010 7:27 PM Feb 20th
Comment: Many global companies are seeking the holy grail of “the Chinese consumer”. Of course there are fantastic opportunitie...


Sector Snapshot: Legal Services (Feb 26)
We have not had a review of China’s legal eagles on this blog since October 2004! Thanks to China Daily, we can now provide an overdue and updated snapshot of the legal sector in China. China Law, By Numbers • Lawyers: Over 166,000 (up from 110,000 in 2004) • Law Firms: Over 15,000 (up from 10,000) • Foreign Law Firms: 224 representatives offices, plus 65 offices from Hong Kong firms (up from 160) • Lawsuits: Around 2 million • Billings: RMB30.09 billion (US$4.54 billion) There is no doubt that China has a lot of laws (and 2 million lawsuits a year), law firms (over 15,000) and lawyers (over 166,000, billing some RMB30.9 billion), but how about advances in the rule of law (versus the rule of the people interpreting it)? The statistics tell one side of the story, the other side is still catching up and, like most things in China it is not a black-and-white situation. News Source: Xinhua h/t @leonacraig


Protectionist Duty? (Feb 26)
China, the US and the EU are all involved in trade disputes (and the odd protectionist thought). One suspects political as well as economic drivers. But let’s hope it does not run off the rails and end in another nasty crash… While they are nothing new (see here), protectionist tensions are never far below the surface in these days of economic crisis (or recovery), and recent news has been highlighting the problems in relation to China’s trade and currency and its major trading partners (and, interestingly, in relation to Germany’s position within Europe, but that is for coverage elsewhere…). Insead Knowledge has analysis, from The Beijing Axis, which shows how trade complaints have been on the increase: “Evidence of an increasing protectionist trend can also be found in the World Bank-sponsored Global Antidumping Database. In a report published in October, it reported that in Q3 2009, WTO-member governments had initiated 44 new product-level investigations for the imposition ...


Briefly…Top Ten Tweets (From IP, Food Safety & Economic Angst, To Culture Clash, Localisation & Corruption) (Feb 17)
IPR: RT @DanHarris: RT @Chinalyst: Yes Virginia, There Is IP Protection In China. http://cli.gs/ug0em 7:37 PM Feb 14th
Comment: And, while on the subject of IP, it is worth mentioning that protection of it is largely driven by local needs, not foreign pressure. Just look at the growth in Chinese patent applications…IP. Up. RT @GCBRANDS: RT @Holaba Chinese Patent Office issued more than 580,000 patents in 2009, up 41%... http://tr.im/O2kH 3:06 PM Feb 13th Economy: RT @CDT: China Raises Bank Reserve Level to Cool Credit: The Associated Press… http://bit.ly/cc29bY 6:37 PM Feb 13th
Chinese New Year: Mother vs. Girlfriend… RT @WSJChina: In Hong Kong, Love vs. Tradition http://on.wsj.com/bjonRO 2:45 PM Feb 13th
Comment: The clash of cultures came this Chinese New Year, which fell on Valentine’s day. We suspect the local generally won over the foreign tradition. 210m rail travelers heading home on the mainland may support our thesis… Google: “Quite committed”? Hmm! RT ...


Economic Updates: Lending, GDP, Inflation, Trade & RMB (Feb 17)
While China may not (just yet) have become the second largest economy in the world, there is plenty of action to report. Here we provide an update on recent news, including links from our ChinaBlogTweets Twitter stream. Last year’s lending boom helped China to a rapid recovery, but now the brakes are being applied in order to manage the risk of asset bubbles and non-performing loans: • RT @CDT: China Raises Bank Reserve Level to Cool Credit: The Associated Press… http://bit.ly/cc29bY 6:37 PM Feb 13th
• More stimu-less RT @chinaeconreview: PBoC points to gradual exit from monetary stimulus policies http://dlvr.it/1lGV 6:59 AM Feb 12th

• Or Bumpy? RT @NiuB: China: Boom Or Bust? @GadyEpstein http://bit.ly/a88wmd 7:12 AM Feb 12th Despite that, estimates of 9.5-10% GDP growth are coming in for 2010, but with it is risk of inflation: • CCB projections RT @ChinaDaily: China’s GDP to grow 9.5% in 2010 http://tinyurl.com/yjupnj4 9:17 AM Feb 10th

• RT @newschina: CASS’s Estimates...