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Are There Lessons for Africa from China’s Success Against Poverty?
2008-05-22 04:30:00
A recent World Bank working paper considers the differences and similarities between China and Africa and how the former managed to take millions out of poverty and the latter did not. The key line for me from the abstract is in bold and is certainly not rocket science. I have my doubts about the validity of the results in this paper but should read it first before jumping to conclusions. Are There Lessons for Africa from China’s Success Against Poverty ? MARTIN RAVALLION World Bank - Development Research Group (DECRG) January 1, 2008 World Bank Policy Research Working Paper No. 4463 Abstract: At the outset of China’s reform period, the country had a far higher poverty rate than for Africa as a whole. Within five years that was no longer true. This paper tries to explain how China escaped from a situation in which extreme poverty persisted due to failed and unpopular policies. While acknowledging that Africa faces constraints that China did not, and that context matters, ...

China’s economic development in pictures
2008-05-22 03:59:00
This month the National Geographic has a “China Special”. The photographs are always of the very highest quality and the story is a good one. There is a surprising amount of economics in the text and correctly so. China’s Journey [National Geographic] My students wrote essays on paper so cheap and thin that it felt like the skin of an onion. The brittle pages tore easily; if held to the light, they glowed. The English was flawed, but sometimes that only gave the words more power. “My parents were born in poor farmer’s family,” wrote a young man who had chosen the English name Hunt. “They told us that they had eaten barks, grass, etc. At that time grandpa and grandma had no open minds and didn’t allow my mother to go to school because she is a girl.” Another classmate described his mother: “Her hair becomes silver white, and some of her teeth become movable. But she works as hard as ever.” Those were common themes—m...
More About: Pictures , Development , Economic , Economic Development

New book: "Debating China’s Exchange Rate Policy"
2008-05-22 03:18:00
Given the seemingly endless posts on whether China will revalue or not on other China websites those interested would do well to buy this book. Debating China’s Exchange Rate Policy edited by Morris Goldstein and Nicholas R. Lardy China’s exchange rate policy has a great impact on the economies of the United States and the rest of the world. This important new book, based on an October 2007 conference looks at this issue in great detail. The book has four sections. The first section assesses progress since China’s July 2005 reform of its currency regime, with due attention to China’s global current account position, movement of China’s real effective exchange rate, the extent of the remaining misalignment of the renminbi (RMB), the roles of market forces and a currency basket in the determination of the RMB exchange rate, and developments in the structure of the foreign exchange market. The second section analyzes how Chinese exchange rate policy reform...
More About: Book

Credit Demand in China
2008-05-22 02:43:00
New paper looking at the sensitivity of China to changes in the interest rate. A worthy reseach topic. I have not read it yet so cannot vouch for its quality. Has the Chinese Economy Become More Sensitive to Interest Rates? Studying Credit Demand in China TUULI KOIVU Bank of Finland February 15, 2008 BOFIT Discussion Paper No. 1/2008 Abstract: Chinese authorities have traditionally relied mainly on administrative and quantitative measures in conducting monetary policy, with interest rates playing a less prominent role. Additional support for this view resides in a number of earlier studies that have found that the impact of interest rates on the real economy has been miniscule. However, taking into account numerous reforms in the financial sector and more widely in the Chinese economy, interest rates may have gained some influence in the last few years. It is important to study the effectiveness of interest rates also in light of future reforms of the monetary policy tools in Chin...

Take the Torch to Wenchuan
2008-05-15 13:40:00
This Afternoon I read a piece saying that the earthquake would not affect the current path of the torch on its way from Sichuan to Chongqing, and I came up with an idea. ????????????????????????????????????????? ????????????????????????????????????????? ????????????????????????????????????????? ???????????????????????????????????? If the torch represents hope and the spirit of teamwork, why shouldn???t the path of the torch be changed. Why shouldn???t the ...
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Multiple Entry Chinese Visas Being Canceled at Border
2008-05-09 04:15:00
In yet another chapter of the visa saga, it appears that we are now seeing where immigration officers at the border are turning multiple entry visas. According to the email I received: But yesterday and today it seems that when they arrived into the Guangzhou station from the HK Train, they were told that their visa ...
More About: Chinese , Visas , Entry

Need An Invitation for A Chinese F Visa? Get it on Alibaba
2008-05-09 02:11:00
I just love how some are able to see an opportunity to profit (h/t Soni who emailed this link to me earlier this morning). The Yantai Longharmony Business Development company is now advertising on Alibaba that they can get you the documents you needto get the multiple entry F Visa : Note: While I can appreciate the humor ...
More About: Chinese , Invitation

Trading Places: Chinese Cities
2008-05-08 13:49:00
A few months back I met with Dan Inman to discuss what I had been seeing in my time in China, related to China???s 2nd and 3rd tier growth, and this week his article was released on CNBC???s European Edition. Trading Places take a mixed approach of looking at the macro picture and then bringing in ...
More About: Cities , Chinese

Booz Allen/AmCham Shanghai Study Finds Key To China Success
2008-03-26 20:55:00
Press release just went out that Booz Allen & AmCham Shanghai have teamed up to study American businesses in China , and how they are doing. The first collaberation between the two (AMCHAM Shanghai previously conducted the survey on their own), the 12 page China Manufacturing Competitiveness 2007-2008 offers ...
More About: Study , Success

Looking For a Job In China? You Are Not Alone???
2008-03-24 20:49:00
h/t to China Digital Times for this picture posted on Netease. It is timely as my director and I were talking about the difficulties of new graduates finding good jobs now, and the fact that all the babies born in 2007 (year of pig) and 2008 (Olympic babies) are probably going to create a very tight ...

Factory Closing: Why Is Anyone Shocked? This Was Coming???
2008-03-23 20:49:00
The last couple of weeks has been an absolute flurry of reports and posts on the factory closings in the south, and I am a bit surprised by the coverage. It has been linked to snow, labor shortages, to the RMB effect on trade, and a move to new low costs bases, and so on??? and what makes me laugh a bit is that this is something that could not only be seen coming from a long way off, but where I think many reports are actually off is that they have failed to take into account a MAJOR cause of these closures. These businesses were losers to begin with, they were being propped up by an inefficiency, and they would have closed in short order anyway. (more???) ShareThis Read more: All Roads Lead To China
More About: Factory

Jim Jubak: Inflation is Back! Worldwide!
2008-03-22 20:49:00
for the last 18 months or so I have been a fan of Jim Jubak???s work over at MSN money, particularly when he is tying in China, and this youtube clip is no different. What is interesting is that he has tied a few events, surely just a fraction of the dynamics, to show how linked we are and how large of a role China is playing in the overall picutre. Where I do have reservations, questions, is in the numbers though and I hope readers will comment on this. Inflation is a measure that can be gamed, as reflected in previous posts, however my current question/ issue with the recent debate is that the figures being thrown around are based on year-on-year rather than taking any longer focus. So, US inflation is 4.3% from last year, China???s is 7.1%. Where I think this is important, and where I think we should move the frame, is that for years China was ???exporting deflation??? right? So, why not take a 10 year look at where prices have gone, and look at that impact rather? Perhaps that r...
More About: Back , Worldwide

Guangdong Kangli Household Co., Ltd.
2008-03-21 20:43:00
Guangdong Kangli Household Co. Ltd is a Hi-Tech enterprise which specializes in the research, production and the selling of household. After more than 20 years development, we can supply a wide selections of kitchenware such as: kitchen scales, egg beaters cutlery and dinner set, knifes and forks and BBQ series etc. ...

Visa Warning for China Residents
2008-03-05 11:39:00
Just saw the article in Shanghai Daily entitled Visa warning. Not linked to the F visa issue I posted a couple of weeks ago, it pertains to those foreigners who have alien resident status and forget to update their visas. Brought in a few years ago to replace the Z visa and resident permit, this combination ...
More About: China , Warning

Editor Profiled By World Journal ??????????????????
2008-03-05 11:31:00
I am honored to have been profiled by World Journal ??????????????????, a newspaper with the largest circulation among Chinese readers in North America, in their Sunday magazine section article on the teaching of Chinese in the U.S ????????????????????????????????????????? ??????? written by Jeff Han ?????? ???. The interest, I think, and the reason for my inclusion in the ...
More About: Editor

The Seductive Strains of the China Bandwagon
2008-03-05 11:29:00
Jim Rogers, megamillionaire, has given up on the United States: China is the promised land. (He’s flogging a book.) Who can fault the investing expertise of one who has made more money than we ever will? Martin Howell of Reuters, for one, in an article succinctly entitled, Jumping on the China Bandwagon ...

Weekly Roundup: Airbus???s Woes; Increased Costs Coming; Tunnel to Korea; U
2008-03-05 11:29:00
With so much going on in China, and only a limited amount of bandwidth, I have created this weekly post to highlight articles that I feel are (1) important, (2) relevant, and (3) interesting. This week there are 3 articles and a Youtube clip that I have chosen to highlight as each are ...
More About: Korea , Roundup , Airbus , Weekly , Tunnel

It?s Not Outsourcing!
2008-02-29 04:44:00
Just as we see in television commercials, Robert Ruyak insists that margarine is butter: “It’s not outsourcing,” insists Robert Ruyak, managing partner and CEO of Howrey, describing his firm’s new office in India. Of course, it’s not lawyering, either, since an American firm practicing in India would violate Indian law. Instead, it’s a new attempt by ...
More About: Outsourcing

Expats Are Named on Tax Blacklist of Shame
2008-02-29 02:41:00
This Shanghai Daily title says it all Expats are named on tax blacklist of shame If you needed any more proof that it was time to get legit in China, here you go. Now, as I just cleared immigration 7 days ago and 24 hours ago, I am happy to know that I am not ...
More About: Shame

14,000 HK Owned Factories to Close Because Of Snow
2008-02-28 23:40:00
In the article Factory fallout written by Bonnie Chen of The Standard, readers are invited to play a game of literary three card monty when Clement Chen Cheng-jen of the Federation of Hong Kong Industries is quoted as saying: Up to 14,000 Hong Kong-owned factories in the Pearl River Delta may be forced to close over ...
More About: Snow , Close , Owned

Legal Outsourcing ? Several Ethical Dilemmas
2008-02-28 21:02:00
Where is the American Bar Association to nip legal outsourcing to India, such as this, in the bud? As of May, 2007, an ABA spokesman told LAW.com that no statement would be issued on the topic. [See that article’s penultimate paragraph.] Certainly, the ethics opinions issued by the Bars of several major markets ...
More About: Outsourcing , Legal

Avoid Chinese Farmed Seafood Products
2008-02-25 16:07:00
Having observed several fish farms in China — shockingly unclean conditions — I have always avoided the purchase of farmed fish and fish products originating anywhere in Asia, except for Japan. David Barboza’s article strongly suggests that you do, too: ???Our waters here are filthy,??? said Ye Chao, an eel and shrimp farmer who has 20 giant ponds in western Fuqing. ???There are simply too many aquaculture farms in this area. They???re all discharging water here, fouling up other farms.??? One nervously laughs, hearing of outlandish harvesting methods illiterate peasants use on fish they themselves consume. Thai farmers using cheap pesticides to kill whole schools of fish for easy netting; Cambodians using grenades. We absolutely can not trust the safety of seafood raised on farms in China. Regulatory schema adopted by the U.S. can not possibly be adequate protection. The FDA has been as ineffective over the past 10 years as any branch of the federal government,...
More About: Products , Chinese , Seafood , Avoid

Upgrade in progress
2008-02-25 15:18:00
??Database Upgrade Dear Visitor, We are upgrading our database at the momment. Please come back soon. Our website should be back pretty soon. TCS team
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The Little Red Book (Of China Business)
2008-02-01 14:19:00
The iconic ?little red book? of the Mao era has had a bit of a facelift and has been re-jigged by Sheila Melvin (formerly of the US-China Business Council, and currently a member of the National Committee on US-China Relations*) as a business book ? The Little Red Book of China Business. OK, so there are ...

Weekly Roundup: JVs in China, SZ Labor is Standing Up, Iphone on Hold, and
2008-01-31 16:15:00
With so much going on in China , and only a limited amount of bandwidth, I have created this weekly post to highlight articles that I feel are (1) important, (2) relevant, and (3) interesting. This week there are 4 articles that I have put into the mix, and it begins with a look at joint ventures ...
More About: Iphone , Roundup , Labor , Weekly

Citigroup to form investment banking JV
2008-01-31 09:53:00
Citigroup has agreed to form an investment banking joint venture with a Chinese brokerage, the Wall Street Journal reported. The proposed partnership with Central China Securities Holdings, which would allow the US bank to collect fees from underwriting the sale of yuan-denominated shares and bonds on the Shanghai and Shenzhen stock exchanges, is currently awaiting ...
More About: Investment , Banking , Citigroup , Form , Investment Banking

Make your move: Taking Clinical Trials to the Best location
2008-01-30 12:35:00
In a recent article on the Pharma Focus Asia website, China was considered as the number one place in the world to outsource to in the pharmaceutical industry. This comes at a time when a majority of companies in the pharmaceutical industry are looking for cheaper prices and greater profit. China takes the top spot: ...
More About: Location , Move , Make , Clinical Trials , Trials

China Mobile, ICBC to focus on emerging markets
2008-01-30 09:53:00
The heads of two of China ’s largest state-owned companies have said that they would focus on emerging markets as part of their overseas acquisition strategies. Jiang Jianqing, chairman of Industrial and Commercial Bank of China (ICBC), said his bank will look at strategic acquisitions in emerging markets, the Wall Street Journal reported. Jiang, speaking in ...
More About: Mobile , Markets , Focus

Job Retention for Chinese Managers - Not All About the Money
2008-01-30 06:15:00
This was a recent post on the China Solved Weblog which discusses ways in which foreign companies in China can more easily retain their top employees and managers, without necessarily giving them raises. Managers that have good retention rates for key people are much more concerned about their team?s development and responsibility level than about their ...
More About: Money , Chinese , Retention

Three Gorges Dam risk study likely
2008-01-30 05:53:00
China will likely commission a feasibility study on environmental risks related to the Three Gorges Dam to a US environmental group, the Wall Street Journal reported. The state-owned firm that owns and manages the dam is finalizing an agreement with the Nature Conservancy for a study that will minimize the ecological impact of the dam ...
More About: Study , Risk