China Direct

Amazon expands in China

 

[Image courtesy of www.amazon.com]

Leading global e-commerce company and CBI member Amazon.com, Inc. recently opened a new order-fulfillment centre in China.

Located near Shanghai in eastern China's Jiangsu province, the new centre is Amazon's largest fulfillment facility outside the U.S., occupying a space of more than 120,000 square metres.

Following the launch of the new centre, customers in Shanghai and the nearby provinces of Jiangsu, Zhejiang, and Anhui now enjoy access to a greater selection of products and faster delivery times.

Please read more here.

Chinese brands go global - with help from the IPA

 

 
[Image courtesy of www.ipa.co.uk]

CBI member The Institute of Practitioners in Advertising (IPA) recently launched a research and development service for Chinese brand owners aiming to go global.

The new consumer research and development service is called the IPA 'International Brand Incubator' and draws on the expertise of UK-based planners and creators within IPA member agencies to provide Chinese companies with the opportunity to test the consumer appeal of their brands outside Asia.

Commenting on the new IPA initiative, Janet Hull, IPA Director of Marketing, said, "This is the perfect time for Chinese companies to take their brands global via the UK. The relative strength of the Chinese economy makes brand investment highly efficient. All the economic indicators show that those companies that invest in brands in an economic downturn reap extraordinary rewards in terms of market share gain and profitability."

Sebastian Wood CMG, Her Majesty's Ambassador to the People's Republic of China, said, "The UKTI team in China welcomes this initiative and is available to support the internationalisation plans of Chinese brand owners who are seeking to use the UK as their springboard into new global markets."

Please click here to read the full press release by the IPA.

 

Huawei announces new global cyber security chief

 

 
[Image courtesy of www.huawei.com]

Leading global information and communications technology (ICT) solutions provider and CBI member Huawei announced the appointment of John Suffolk as its Global Cyber Security Officer (GCSO) earlier this week.

Mr. Suffolk previously served as the Chief Information Officer of the UK Government, overseeing government IT projects for nearly five years.

Assuming his new position on 01 October, Mr. Suffolk will be based at Huawei's headquarters in Shenzhen in southern China and will report directly to Huawei's CEO. He will hold responsibility for developing Huawei's cyber security assurance strategy and system and managing and supervising its implementation. The system will be adopted globally by all business groups and departments, including R&D, supply chain, marketing and sales, project delivery and technical service.

Commenting on Mr. Suffolk's appointment, Ken Hu, Deputy Chairman of the Board and Chairman of Huawei's Global Cyber Security Committee, said, "We are delighted to welcome John Suffolk to Huawei. With convergence of the ICT industry, Huawei is expanding its business beyond its traditional operator market to meet the communications need of both enterprises and consumers.

Industry convergence will also expand the complexity of cyber security challenges, and Huawei is fully committed to addressing the emerging challenges of tomorrow together with our customers. Mr. Suffolk has a wealth of experience and expertise in dealing with cyber security issues with deep insights into emerging global cyber security trends.

This will enhance Huawei’s capabilities in addressing security challenges, and further support our proven track record and reputation among customers in an increasingly complex environment."

Please click here to read the full press release by Huawei and here for further media coverage.

China Direct would like to thank Ben Cooper of the CBI's Beijing office for preparing this information.  

Stop Press - 2011 EU China Business Confidence Survey

 

 
[Image courtesy of www.europeanchamber.com.cn]

The findings of the annual EUCCC business confidence survey will be circulated tomorrow, Wednesday 25th May 2011.

China Direct will be attending the official Survey Launch event in Beijing and looks forward to sharing with members key headlines and observations shortly.

EUCCC Business Confidence Survey

Background:

Since 2004, the European Chamber has conducted an annual survey of member companies to monitor their views on the business environment and gather their opinions on trade and investment in China.

The European Chamber Business Confidence Survey 2011 is once again produced in partnership with Roland Berger Strategy Consultants, and draws on feedback from nearly 600 European companies – the highest participation rate ever.

This year's survey offers insight on European business confidence in the Chinese market at a time of impressive growth, rising competition, and the release of China’s 12th Five Year Plan.
 
The results – the most comprehensive and wide-ranging set of data yet gathered for this annual survey – will provide the most up-to-date and in-depth analysis on sentiment among European businesses about the Chinese business environment.

This information will have important implications for Chinese and European policy-makers, businesses, organizations as well as the general public.

China's Twelfth Five Year Plan (2011-2015) - the Full English Version

 

The Delegation of the European Union in China has very kindly prepared a full English translation of China's 12th Five-Year Plan (2011-2015).

In mid-March 2011, the National People's Congress (NPC), China's top legislature, approved the new Five-Year Plan (FYP).

China's FYPs are blueprints which outline key economic and development targets for the country for the next five-year period.

This is essential reading for businesses seeking to either expand their existing China operations or position themselves in the market for the first time.

To download the full translation of the current FYP please click below:

Download Full translation 5 Yr Plan 2011-2015

 

STOP PRESS: China establishes State Internet Information Office

 

 
[Image courtesy of www.mobchina.blogspot.com]

The Chinese government has established a new department, known as the State Internet Information Office, to manage Internet information.

The move, announced earlier this week, is seen as an attempt by the authorities to streamline the administration of the Internet in China.

Currently the Internet is administered by the Ministry of Industry and Information Technology (MIIT), the Ministry of Public Security (MPS), General Administration of Press and Publication (GAPP), Ministry of Culture and State Administration of Radio, Film and Television.

In the new set-up MIIT will retain responsibility for network access and the MPS in tackling cybercrime.

The new office will hold responsibilities including:

     • Development of online gaming, video, audio, publication industries
     • Promoting the development of major news websites
     • Managing government publicity
     • Investigating and punishing websites that violate laws and regulations
     • Managing ISPs, domain names, IP addresses, registration, Internet access

Please read more here.

Ren Ren, China's Facebook, lists in the US

  
[Image courtesy of www.search-internetmarketing.com] 

Ren Ren, Chinese social media giant and possibly the Mainland's answer to Facebook, has listed on the New York Stock Exchange.

Shares in Ren Ren began trading at US$14 - at the upper end of its US$12-14 range predicted by analysts. 

The company 's post IPO market value is US$7.5 bn, giving it a value nearly 100 times that of its 2010 revenues of US$76.5 m.

For China Direct's 2011 comments on China's growing online Social Media companies please click here.

Recent commentary on Ren Ren's IPO and company background can be found below:

http://on.ft.com/koapWu

http://tcrn.ch/kZ10Da

http://bbc.in/ln9ILl

 

Making the UK 'the best place to invest' - work in progress?

 

 
Today, the CBI released its report, "Making the UK the best place to invest," which calls on the government to bolster the UK’s attractiveness to investors, warning that without action, investment and jobs will be lost to other countries. 

Foreign investment in the UK fell significantly during the global recession, dropping from $186.4 billion in 2007 to $45.7 billion in 2009, and the UK’s reputation as a good place to invest is under threat.

In its report, the CBI has identified the main drivers for and barriers to investment, based on research from 400 companies, including interviews with senior business leaders.

Key drivers of investment in the UK include:
     • A well-developed innovation ecosystem and science base
     • The English language
     • Cultural aspects and quality of life
     • Strong rule of law

Key barriers to investment in the UK include:
     • The lack of long-term predictability and certainty
     • The 50% personal tax rate
     • Skills shortages in the UK
     • The impact of regulation, dismissal periods and strike activity

Please find the Executive Summary below:

1. Download CBI UK Best Place Invest Summary April 2011

2. Our Full Report is here  and today's Press Release is here

China Direct would like to thank CBI Beijing Policy Analyst Ben Cooper for preparing this note.

Baidu - China's Google - searching for legitimacy?

 

 
 [Image courtesy of www.maximumpc.com]

Baidu, China's homegrown version of Google has been facing some strong internal challenges from other web content providers.

For more on this please read the attachment below.

Download Baidu -China's leading Search Engine March 2011

For your reference the CBI's Beijing office will be hosting several member events from April onwards looking at China's web scene with inputs from commentators and member companies.  

 

Renren - China's Facebook - now up for sale

 
Facebook may not be for sale but one of its Chinese equivalents, Renren, is now available to bidders.

Though it won’t be coming close to Facebook’s stratospheric $50 billion valuation, Renren plan to be the first social-networking site to go public, in a $500 million IPO on Nasdaq before the summer.

For more on Renren please read below:

Download Renren CD 12.03.11