China Business News

New Year

2012-01-09T14:47:00.000-05:00

Happy New Year everyone. As we move to set our goals for the new year, the following is a couple of goals the Chinese has for their economy in 2012:

1. Increase domestic consumption - With the debt crisis in Europe and the U.S. economy in a slow recovery and the rise in value of the Chinese currency, Chinese exports have been significantly affected. Exports grew by only 13.8% in November, year-on-year, down from the 15.9% growth in October. 2012 is likely to see further decline. Therefore, the government is focused on growing its domestic market, so there is less reliance on exports. Look for growth to the GDP to be at around 8.8% in 2012 with inflation hovering around 3%-4%.

2. Increased foreign acquisitions - Chinese government is actively encouraging its companies to expand overseas. With a huge amount of foreign reserves, Chinese government is looking for ways to buy up assets to lower the holdings. Also, with the global economic downturn, Chinese companies are finding great deals on assets overseas. This "go out" plan also conforms well into Chinese government's plans to shift away from an export focused economy. Recent overseas moves by Chinese state-owned companies include: (a) $2.5 billion deal between China Petrochemical Corp. and Devon Energy Corp. to help develop U.S. shale oil and natural-gas fields; (b) China Telecom's recent move into the U.K. mobile industry; and (c) China Three Gorges Corp. buying 21% in EDP-Energias de Portugal SA for $3.51 billion.

3. Focus on environment - pollution is a huge problem in China. Therefore, the government is taking many measures (from encouraging development of electric vehicles, to the promotion of alternative energy industry, to providing subsidies for the purchase of more energy efficient home appliances). In 2012, you can see more programs aimed at controlling pollution and encouraging environmentally friendly innovations. This is especially apparent in recent Ministry of Commerce guidelines that encourage more foreign investment into energy-saving and environmentally-friendly technologies, new-generation information technology, biotech, high-end equipment manufacturing, alternative energy, advanced materials and alternative fuel cars.

Google in Trouble Again

2011-10-11T14:42:00.001-04:00

Google is running into further problems in China. The search engine’s online marketplace for Android Apps. Has been block by China. Access to the online marketplace for Google’s mobile operating platform will be a huge setback for Google in China. Both political and economic reasons could be behind this censorship. Some speculate that the Chinese government is trying to protect Baidu, which is developing a new mobile operating system known as Qiushi to compete with Android.

Lost in Translation?

2011-06-15T07:17:00.000-04:00

When doing business in Asia, often your partner/employee/agent does not speak English as a first language (if at all). Most of the time you will need to communicate through a translator. For day-to-day communications a loose translation of your message is sufficient. However, when it comes to entering into contracts, you have to ensure that not only the translation is correct, but it is legally sound.

English has been the dominant language for doing international business for so long that we tend to insist that a contract be in English and the other side adjust to our needs. As the global economy changes, this can be very bad practice for several reasons: (1) you are alienating a large segment of the market and losing out on potential business; (2) you are relying on the other side’s English abilities to be able to communicate effectively; and (3) under certain circumstances, it is just not legally allowed. Given the above, it is always a good idea to have your contracts translated into the native language, but be aware…

One of the most important things you can do as a businessman in Asia, is to find a capable, knowledgeable and trust worth translator. As I mentioned before, there are two important aspects to translating a document: (1) ensure the idea is translated accurately; and (2) make sure it is still legally enforceable after being translated.

Many translators can translate a document with great technical skills, but they do not grasp the underlying essence of the communication. You want to find a translator that will be able to take the idea in English and accurately recapture it in Chinese. The exact order and wording is not as important as the communication.

Lastly, you want to ensure that everything that is translated is still legally enforceable. Take for example a non-competition provision that lasts for 5 years with a liquidated damage provision. A translator can easily translate that into the native language, but only someone with legal knowledge can tell you that it would not be enforceable in China. Also, certain wording has very special meanings that may not translate directly. For example, the word “shall” states a requirement for one party to do something, verses the word “may”, which suggests some discretion. It would be imperative for your translator to make the distinction and capture it in the translated document.

So remember…get things translated and ensure it is translated well, then you won’t ever hear the phrase “lost in translation” again.

E-Commerce: the Growing Trend

2011-04-01T14:26:00.000-04:00

When you think of Internet usage in China, government censorship is often the first thing that comes to mind. Look beyond politics though, to the possibility of doing business over the Web in China, and the potential is hard to ignore. A massive population with rapidly increasing access to high-speed connectivity has led to an e-commerce boom. In fact, recent studies show that China’s Internet economy reached 45.67 billion Yuan (approximately 7 billion USD) in the last quarter of 2010. Here’s what you need to know and some tips on getting involved.

The Chinese population has no qualms about buying goods online. In 2010, e-commerce was hailed as the fastest growing online activity in China. The number of online shoppers grew by 50 percent to 160 million within the year. Online sales grew by 370 percent to $78.79 billion. What does the future look like? With most Chinese consumers accessing the Internet through their mobile phones and phone companies steadily introducing new ways to conduct transactions on the go, the sky is the limit. So how can your business benefit?

Online business is a relatively cost-effective way to reach consumers directly. Not sure you’re ready to make a brick-and-mortar investment in China yet? Consider a much smaller initial investment in an online sales presence to get a feel for the marketplace. Already selling in China? Amp up your Web presence to give customers an additional way to interact with your business. Also, use online advertising as a cost-effective way to drive sales and build a brand presence. Online ad revenues in China are forecasted to reach $6.95 billion by 2012.

All in all, the exponential growth of online transactions in China creates a new avenue for U.S. businesses looking to enter the marketplace or further establish themselves. Make an online presence a key factor in your overall China business plan – another way to ensure the growth and success of your venture.

2011-01-18T17:48:00.003-05:00

The Chinese New Year (Spring Festival) is coming up (Feb 3rd) and many businesses are thanking their Chinese partners and clients for a year of fruitful collaboration by sending a thoughtful gift. Here are some things to keep in mind.

1. Avoid cultural pitfalls or make your gift even more special by taking other traditions into account. Consider wrapping your gift in red gift wrap. The color is considered lucky by the Chinese and thus would give your gift extra authenticity. Do your research to avoid certain items that are considered unlucky. For instance, do not give knives or scissors as they symbolize breaking a relationship. Also avoid clocks, watches or anything in sets of four (the number is unlucky). Six, eight and nine are a lucky numbers.

2. Whenever giving a gift to a foreign partner, you should always be aware of the Foreign Corrupt Practices Act (FCPA). The FCPA forbids anyone from paying a bribe to a foreign official, no matter how small the monetary value of the bribe is. In China, this is especially problematic. Many Chinese companies are state-owned enterprises. Therefore their directors and officers would be considered foreign officials. In these scenarios, only give gifts to individuals where you are absolutely sure the receiver will see the gift as a gesture of goodwill.

All in all, informed and culturally-sensitive gift-giving is great way to forge stronger relationships with key Chinese contacts and position your business for even greater success in 2011.

Health Care Investment in China

2011-01-07T14:53:00.000-05:00

In 2009, the Chinese government announced that health care reform would be a major component of its $586 billion stimulus package. It’s a clear sign of a market opening up and investment opportunities abound. Here’s a quick look at the Chinese health care system today, how it’s poised to change and where some of the opportunities might be.

People Change
Average life expectancy in China has increased by nearly three decades since 1949. There’s no question that where people live, how people live and the expectations people have of the nation’s health care infrastructure are rapidly changing. This means increasing demand for medical services aimed at an aging population, including both formal facilities like clinics or hospitals as well as the options for home-based care. As a direct result, China's medical devices market is estimated to almost double in size between 2006 and 2014 to $28 billion a year. For example, according to the China Market Research Group, the number of cardiac patients in China is growing at a 20-30% annual rate, with the market for cardiovascular stents increasing by 40% annually. As many developed nations work their way out of economic slowdown and cut back on expenditures in this area, the Chinese market poses a real opportunity.

The Gaps
As per the Chinese stimulus plan, nearly 90% of China's citizens are now covered by a universal health care system. Health-care facilities throughout the country are being upgraded, including the construction of 30,000 hospitals, clinics, and care centers. Much of the new development is focused on the rural areas of China which have lagged far behind major cities in providing access health care resources. U.S. companies that have the ability to work with smaller localities and offer products or services aimed at growing health care from a grassroots level have the advantage.

Call for Quality
A growing middle class in China means a demand for more than the basic level of service provided by the government. Statistics from the Chinese Ministry of Health show that the personal spending on medical services doubled from 21.2% in 1980 to 45.2% in 2007. What are sophisticated Chinese health care consumers asking for? A recent China Market Research Group survey of doctors, hospital staff and patients found a clear preference for foreign products. The majority of respondents said that they were willing to pay 20% or more for Western brands because they believed them to be more reliable and of higher quality.

All of the above means there is currently a monumental opportunity for U.S.-based companies looking to become players in the Chinese health care arena, especially since now foreign investment is allowed in the field.

Chinese Consumer Trends

2010-09-14T10:22:00.001-04:00

Chinese consumer mindsets are shifting. Thinking of entering the Chinese market with your product or service? Here are some trends to keep an eye on.

Consumer Confidence: Savings Rate
In times of economic crisis, the unusually high savings rate of Chinese citizens, sometimes as high as 50 percent, has been both a blessing and a curse. On one hand, the Chinese government didn’t have to contend with waves of foreclosures or bankruptcies brought on by an overleveraged society. On the other hand, the government’s encouragement for citizens to spend more to buoy a slowing economy also appeared to fall on deaf ears. Some appeared to take to heart though. A recent China Market Research Group survey of 5,000 Chinese below the age of 32 in Shanghai found a savings rate of zero among this group. This finding speaks volumes on ambitiousness and consumer confidence among the Chinese youth.

Staying Home: Luxury Sales in Interior China
As minimum wages rise throughout China, more young professionals are staying in their hometowns instead of venturing to the big coastal cities to seek their fortunes. This has created unprecedented markets for luxury goods in unexpected places. In fact, according to recent studies, the fastest luxury sales are in China’s second and third-tier cities like Chengdu and Harbin. Citizens here are gaining buying power, but not necessarily the ability to shop abroad for better prices like the affluent populations of Shanghai, Beijing and Hong Kong. Take advantage of concentrated audience, tax incentives and lower real estate costs by entering the Chinese market through one of these regions.

Who’s Shopping? Mom and the Kids
With men traditionally at the head of the household, marketing for everything from soap to cars has focused on dad. New studies are finding though, that mom and the kids are quickly gaining influence. With a more educated and professionally employed female workforce than ever before, it’s no surprise that an increasing number if Chinese households, especially in the big cities, are reporting finances controlled by women. Add to that the extended childhood among China’s upper classes, where young adults in their 20’s can expect mom and dad not only to provide the bare necessities, but also cars and computers. Have goods or services aimed at one of these audiences? This is your opportunity to get in at the ground level of a rapidly growing market.

Chinese Currency Reforms

2010-07-23T10:05:00.001-04:00

For years, the U.S. has raised the issue that China has been unfairly manipulating its currency to gain an edge for its export-driven economy. Last month, ahead of the G20 Summit, China announced that it would allow for more exchange rate flexibility in its currency, the RMB, which led to a slight appreciation. China has indicated that the appreciation will be highly controlled and will not be allowed to fluctuate greatly, leaving many to believe that the RMB is still greatly undervalued.

The most significant result of the appreciation of the RMB is that it will put a strain on Chinese exporters and those businesses that rely on Chinese goods (e.g. Wal-Mart), ultimately leading to increased prices for American consumers. Even with only a slight 0.5% increase in June, many Chinese exporters (including those foreign companies that manufacture in China) have felt a squeeze on their profits.

The good news is that the rise in value of the RMB will open up many new opportunities for American businesses. Chinese consumers will have more buying power and will demand more foreign goods. The consumer luxury goods (automobiles, cosmetics, high-end retail) industry will be one of the largest benefactors, a demand U.S. companies are well-positioned to meet. In fact, both GM and Ford have both reported record sales this year and plan on expanding their operations in China. Chinese consumerism will drive the development and expansion of other industries as well.

Also, for those businesses with RMB assets in China, the rise in value of the RMB will also signal a rise in the value of those assets. Therefore, investments into China will likely appreciate in value along with the appreciation of the RMB.

It is inevitable that the RMB will appreciate in value; the only variables are when and by how much. For U.S. businesses, the key is to have a strategy in place so you are ready to take advantage of the opportunity.

Chinese Monetary Reforms

2010-06-15T15:12:00.000-04:00

The Chinese government has been making a number of changes in the financial sector that have the potential to be very beneficial to foreign companies. Foreign companies now have unprecedented access to Chinese stock exchanges, which means the ability to tap into a great source of capital not previously available. Regulatory changes have allowed Chinese banks to become more sophisticated in their products and are better able to serve more complicated deals. Reforms have also made it possible for foreign companies to use the Renminbi (RMB, the Chinese currency) in cross border trade settlements. For those making a long term investment in China, using the RMB in account settlements has the potential for greater return on investment as the value of the currency increases.

New Focus for Business in China

2010-05-03T16:56:00.002-04:00

For years, China is known as the factory of the world. With an abundant supply of relatively inexpensive labor, China has been manufacturing everything from toothpicks to airplanes for export to consumer nations. However, this trend can not continue. As China’s economy continues to grow at near double-digit levels, cost of doing business in China also grows. Those industries that rely mainly on low-cost labor to compete are increasingly finding themselves moving out of China and the Chinese government is encouraging this.

China is shifting away from its purely export culture. Through new policies and guidelines, the Chinese government has identified 3 new areas of focus: (1) domestic consumption; (2) high-tech and service industries; and (3) development of central and western China.

The global economic downturn had a devastating affect on the Chinese economy. Chinese economy relies heavily on exports. When the western world (U.S. and Europe) stopped consuming, Chinese exports suffered. The downturn forced the Chinese government and businesses to look inward and develop its domestic market. China passed a $586 billion stimulus package late 2008 to jump-start its economy. The government subsidized Chinese consumers to encourage spending. The biggest beneficiaries of the government stimulus package are the Chinese auto industry and the appliance and electronics industry. With the largest population in the world, China is the largest market in the world. The potential is there for foreign companies to start tapping into the Chinese market.

The second shift in the Chinese economy is from low-end manufacturing to high-tech and service industries (esp. alternative energy and healthcare). Through a combination of educating its massive workforce, government incentives, and improvements to its legal system, China is trying to attract more investment in the high-tech and service industries. Thus far, China’s efforts are working. A number of foreign companies are not only moving their regional headquarters to China, but also establishing research and development centers in China.

Lastly, the Chinese government is promoting development to central and western China. For years now, the investment and development have been mainly focused in the eastern and southern China (Shanghai, Beijing, Guangzhou, etc.). By improving its infrastructure (building roads, high-speed rails and airports), China is hoping to draw more investment to central and western China. The cost of doing business in these regions is still very low and there is a huge potential for foreign businesses in these regions.

There are a lot of opportunities in China. The key to success is knowing how to navigate the business and political culture in China.

Google's Move Out of China

2010-03-24T12:36:00.002-04:00

For years the elephant in the room for Google is how it can stick to its motto of "do no evil" and continue to censor its search engine in China. In Jan. of this year at its annual shareholders meeting Google announced that it will stop censorship in China even if it means they will have to pull out of the Chinese market. This triggered numerous back and forth very public statements by both Google and the Chinese government that resulted in deteriorating relations and Google ultimately (earlier this week) pulling out of China and directing traffic to its Hong Kong site.

For Google, it believes that its search engine was not competing effectively (around 30% market share) with Baidu.com (the Chinese counterpart). By pulling out of China, Google can appease its humanitarian conscious shareholders and focus on better performing markets.

However, feeling that they have lost face, the Chinese government is obviously very unhappy and have gone on the offensive. Under government pressure, Chinese mobile providers have cancelled deals with Google where Google was going to be provide mobile search functions in China and is cautious in selling mobile phones with the Google Android operating system. The second of these consequences may have a huge impact on Google. China is the worlds largest cell phone market and Google has a substantial market share. If it looses the cell phone market in China, Google will face many more issues.

Ultimately, Google can not stay out of China for long. In the long-term, whether for its search engine or mobile phone programs, Google will eventually need to tap into the Chinese market to compete successfully.

2010-02-11T15:41:00.003-05:00

The following is a list of events I received from the Organization of Chinese Americans of Greater Cleveland regarding the various events celebrating the upcoming Chinese New Year (Year of the Tiger) on February 14:

Feb 6: Tzu Chi Foundation Chinese New Year Blessings Ceremony, from 2:00pm to 4:00pm. 1076 Ford Road, Highland Heights, OH 44143 Tel: (440)646-9292

Feb 13: Asia Plaza Chinese New Year Celebration with exhibition booths, cultural performances, and others. Starting at 11am until 7pm. 2999 Payne Avenue, Cleveland, OH 44114

Feb 20: Vietnamese Community of Greater Cleveland Lunar New Year Celebration, at Saigon Plaza, 5400 Detroit Avenue, Cleveland, Ohio, 6pm

Feb 20: Chinese Academy of Cleveland, 4:30pm – 7:30pm, 410/person with dinner and entertainment, Auditorium Shaker Heights Middle School, 20600 Shaker Blvd., Shaker Heights, OH 44122, Purchase tickets at Shaker Middle School (Cafeteria) on Jan 30, Feb 6, Feb 23 from 9:45am to 1pm.

Feb 20: Asians & Friends' 15th Annual Lunar New Year Dinner/Show/Dance will be on Sat, February 20, 2010, 6pm at Hunan Gourmet Chinese Restaurant. Ticket price is $35 (with AFC 2010 membership renewal), $40 for non members.

Feb 21: Cleveland Contemporary Chinese Cultural Association Chinese New Year Celebration @ Solon High School, from 1pm to 9pm

Feb 27: at 7pm on Saturday and on Sunday, Feb 28 at 3pm. Off-Broadway hit the New Shanghai Circus performing at about 85 miles away from Cleveland at the Mountaineer Casino with first time ever Dragon Dance Performance by Wah Lum Kung Fu School of Columbus. Tickets: $19 or VIP for $29 (which include preferred show seating; free $25 match play, free food voucher for the All-New Riverfront Buffet featuring an Asian & Noodle Bar Stations.), visit http://www.asianshowpro.com and check out video or order your tickets now!

Feb 28: CPEA’s Yuanxiao Jie celebration at CSU Student Center starting at 4pm

March 6: Downtown Cleveland Public Library Chinese New Year Celebration, starting at 1pm

In addition:

Lion Dance Performance by the Kwan Family:

Feb 6: Pearl of the Orient at 1pm
Hunan Fairlawn at 3pm

Feb 7: Bo Loong Chinese Restaurant at 6pm

Feb 13: Li Wah @ 12pm and 7pm
Gold Dragon at 2:30pm
China Gate at 4:30pm

Feb 14: Li Wah at 11am
Tink Hall at 1pm
Hunan Solon at 5pm

Feb 15: Li Wah at 7pm

Feb 16: Li Wah at 11am

Feb 20: Hunan Akron at 1pm
Gold Dragon at 3:30pm
Chinese School at 5:30pm
Li Wah at 7pm
Hunan Gourmet at 9pm

Feb 21: Imperial Dragon at 2pm
Hunan by the Falls at 5pm
Hunan Solon at 6pm
Bo Loong at 7pm

Feb 22: Hunan Medina at 6:30pm

Feb 25: Imperial Dragon at 7pm

Feb 27: King Wah at 3:30pm
Gold Dragon at 5pm

Feb 28: Imperial Dragon at 7pm

March 6: Cleveland Public Library at 1pm
Rotary Club at 7pm

March 7: Imperial Dragon at 7pm

2009-12-31T12:10:00.003-05:00

China became the world's largest auto market in 2009 and reports predict the emerging markets of China, India and Brazil will lead global auto sales in 2010. Foreign auto makers such as GM, Ford, VW, BMW and Toyota have all been increasing their output capacity (esp. their luxury brands)in preparation for the growing Chinese market. Additionally, over the last year, Chinese domestic auto makers are acquiring foreign brands and technology to bolster their own capabilities. In 2010, as foreign auto makers target a luxury auto market in China, Chinese auto makers will likely make push into overseas markets for economy and green cars.

China's Push to go Green

2009-12-18T16:35:00.003-05:00

China gets a lot of criticism for being the largest greenhouse gas emitter in the world (United States is second). However, few people know that China is also the world leader in the growth of its renewable energy sector. China hopes to generate 30% of its energy consumption from renewable resources by 2050. This push can been seen in a variety of different governmental measures.

First, Chinese government recently consolidated the energy industry and are pushing for the increase of hydro-electric, wind, solar and nuclear energy plants. China is in the mist of developing a wind farm with the potential for 40GW of power output. In fact the project is so large that is deemed the Three Gorges of the Land. China is also planning on starting construction on 10 new nuclear power plants each year to increase the power output.

Second, China is providing numerous incentives for firms with green energy technology. These incentives take form in tax breaks, lowered capital requirements, subsidies and other preferential treatments. The auto industry is where these incentives are most evident. Auto makers, both domestic and foreign, are encouraged to develop alternative energy cars.

Lastly, China is pushing its domestic industry to decrease pollution. Many of the environmental rules but in place for the Beijing Olympics are being phased in to become permanent. China has set tighter regulations on maximum emissions from coal power plants and close down many of the non-efficient ones.

China is in many ways still a developing country, so it is going to pollute heavily. However, it is encouraging to see that it is taking a step in the right direction. Also the opportunities for firms involved in renewable energy is endless and should consider China a great market.

2009-10-02T10:07:00.002-04:00

Recently, trade disputes between China and the U.S. have grown in intensity. This is partially due to the global economic downturn. Countries are starting to look for ways to protect their domestic industries.

Earlier this month, in an effort to protect its domestic tire industry, the U.S. announced that it will impose tariffs on Chinese tire imports for the next 3 years: 35% for the 1st year, 30% for the 2nd year, and 25% for the 3rd year. However, this move may be more detrimental than helpful to the U.S. economy overall.

The United Steelworks Union claims that 5,000 jobs have been lost since 2004, due to the outsourcing of tire manufacturing. They claim that the new tariff would bring more jobs back to the U.S. It would be great if we can generate more jobs in the U.S. as a result of the tariff, but it is more likely that the tire manufacturers will just look to other countries to source their tires. The tariff is likely to help out Mexico more than the U.S. Additionally, as the tire prices increase, it is the American consumer that is hurt.

In a response to the U.S. tire tariffs, China has announced that it is looking into anti-dumping charges against U.S. imports of chicken products and auto parts. China also announced that it will extend anti-dumping duties of between 6% to 84% on U.S. imports of polyvinyl chloride (commonly known as PVC). The two countries are also involved in disputes over steel pipes, music and movies.

No matter what our opinion is on free trade, we can all agree that in this delicate economic climate, a trade war with China will not benefit anyone.

2009-08-21T16:19:00.002-04:00

The Rio Tinto story in China has gotten a lot of press recently. For those of you who have not followed the story, on July 5, China detained 4 Rio Tinto employees, including its chief executive in Shanghai, Stern Hu, on suspicions of espionage. Then on August 12, the employees were formally arrested on suspicions of commercial bribery and trade secrets infringement (substantially less serious then espionage). The investigation is still ongoing, but has cause Rio Tinto to pull all of its employees out of the Shanghai office. Some people believe that the Chinese government's actions is partially an reaction to Rio Tinto's failure to close a $19.5 billion business deal with Aluminum Corporation of China.

This is a prime example of how the Chinese government uses its enforcement powers as a negotiating tool. It is highly likely that the Rio Tinto employees may have been involved in various degrees of bribery to gain unfair advantages or access to state trade secrets, but this conduct happens in China on a regular basis at different levels of the government. Corruption is a huge issue in China and, unfortunately, it is part of doing business there. The government often seriously cracks down on these activities when it suits their purposes or when the act is too egregious to ignore. The Rio Tinto case may be a combination of both of these factors. As a businessman in China, it is important to be especially sensitive when it comes to dealing with government officials. You must both know how to grease the gears, but also know what line not to cross.

2009-08-05T08:49:00.003-04:00

Recently I was asked about the kind of investment opportunities in China and which industries should see China as a target market. China's Ministry of Commerce provides a catalogue of industries that it deems as either encouraged, restricted, or prohibited. Those companies that are in the encouraged industries listing would likely have a relatively easier time establishing a presence in China. MOFCOM lists the following as encouraged high technology industries:

Electronics and Information

Computer and Computer Peripheral Equipments
Microelectronics and Photoelectron device
Communication Equipment and Products
Broadcast and Television Technology and Products
Production equipment and test instrument for specialized techniques

Software and Outsourcing

System Software
Support Software
Application Software
Outsourcing

Aeronautics and Astronautics

Aircraft and Support Products
Ground Service Equipment
Commercial Carrier Rocket
Commercial spacecraft and ground facilities

Advanced Manufacture

Automated Machinery and Equipment
Key Basic Parts of Electromechanics
Instrumentation and System
Modern Transportation

Biomedicine and Medical Equipment

Biomedicine
Chemical medicine
Food Biotechnology and Products
New-type medical equipment

New Material

Metal Material
Inorganic Nonmetal material
Organic Macromolecule Material and Products
Composite Materials

New Energy and Efficient Energy Saving

New Type Energy and Equipment
Energy-saving Product

Environmental Protection

Atmospheric Pollution Prevention and Control Equipment
Water Pollution Prevention and Control Equipment
Solid Waste Disposal Equipment
Environment Monitoring Instrument

Geospace and Ocean

Reconnoitering and developing apparatus for energy sources and the mineral sources
Equipments for engineering meteraging and globe physical observation
Foundation Stability Exploration and Checkout for Large-scale project
Ocean Inspection Technology

Modern Agriculture

New breeds of choiced animals and plants
Fine breed's embryo biologic engineering products of the livestock
Biologic pesticide and biologic prevention products
New diagnostic reagent and biologic vaccine
New fertilizer
New high-efficiency feedstuff and additive
Agricultural engineering apparatus
Apparatus for the storage of agricultural products and byproducts,and the processing of the new tech-products

Outside of these high technology industries, the catalogue also lists numerous other industries that are encouraged by the Chinese government

2009-07-17T14:50:00.004-04:00

China recently appointed its current head of foreign exchange agency as the head of a special monetary policy office to promote internationalization of China’s currency. Lately, China has been advocating the broader role of the RMB in global financial transactions. China has signed currency swap agreements with several key trading partners, including Brazil and Argentina. It has also indicated an interest to conduct business with Russia using the RMB.

On July 6, China’s central bank released a rule permitting companies in select cities to settle cross-border trades using the RMB. China’s central bank claimed that the move would likely reduce companies’ exposure to foreign exchange risks, increase liquidity in foreign trade and cut transaction costs.

These actions signifies an effort by China to reduce reliance on the USD for international trade. At the end of June, Chinese foreign exchange reserves topped $2.13 trillion, $801.5 billion of which are U.S. Treasury Bills. China is the United States' largest creditor. However, due to the economic downturn and the declining value of the USD, China is looking to diversify some of its holdings.

2009-06-11T16:47:00.000-04:00

Sinopec, China’s largest oil refiner, is in talks to acquire Geneva-based oil and gas producer Addax Petroleum for approximately USD $8 billion. Addax is mainly based in West Africa and the Middle East. It produced 134,730 barrels of oil a day in the 1^st quarter. Meanwhile CNOOC, China’s 3^rd largest oil company, is planning a USD $4 billion deal for the assets of US-based Kosmos Energy LLC.

China Minmetals Non-ferrous Metals Company’s proposed acquisition of Australian miner OZ Minerals has received OZ’s shareholders’ approval. The acquisition price is USD $1.386 billion. OZ is the world’s second largest producer of zinc. It also produces copper, gold, lead and silver.

China is taking full advantage of this depressed economy to acquire as much assets as it can to bolster its holdings in various resouces around the world. This can be seen on these large scale acquisitions or on a smaller scale by individuals purchasing investment property here in the US.