Tuesday, November 21, 2017

Investment News and Commentary from Emerging Markets in Asia - China, India and ASEAN




About 2point6billion.com

2point6billion.com discusses business and investment news rising from the geopolitical relations of China and India, and the interactions these two countries have with the rest of emerging Asia.



Monthly Archives: June 2014

Investing in an Online Presence in Asia

Asia is fast on its way to becoming the largest e-commerce market in the world. Internet penetration is growing by leaps and bounds, and the region’s youth population increasingly prefers to interact with companies and retailers over the internet rather than with more traditional forms of physical shopping and communication. Alongside these developments, Asia’s fast-growing middle class has fostered the evolution of a strong online consumer culture that cannot be ignored by companies seeking long-term success in the region.

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Three Pillars to Getting Quality Goods from China

by Etienne Charlier

I am not the first one to mention that pre-shipment inspections are important to securing quality from China. As they say:

You get what you Inspect, not what you Expect!

But pre-shipment inspections are not enough. The inspector you send to your supplier will stop defective products from being shipped to you, and this is good. But after all, not receiving defective goods is not the same as receiving what you order, according to specification and on the time agreed upon. Continue reading

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China-ASEAN Wage Comparisons and the 70 Percent Production Capacity Benchmark

Op-Ed Commentary: Chris Devonshire-Ellis

As wage increases in China continue to rise – along with the comparatively high national welfare costs – increasing comment is being made as to the legitimacy of the “China Plus One” scenario. Coined some years ago, this theory – in reality, more of a shrewd observation – suggests that future manufacturing capacity will be placed both in China and externally in another location by the same manufacturer.

In fact, this has been going on for years, most notably between China and Vietnam. The recent anti-Chinese riots there have even prompted Hong Kong Shippers’ Council chairman Willy Lin Sun-mo to state that Hong Kong manufacturers based in the Pearl River Delta are running out of alternative, low-cost factory locations with ample labour following recent instability in their two preferred destinations, Vietnam and Thailand. I wrote about the Vietnam and Thai issues – along with a risk analysis for doing business in the rest of Asia – and China, earlier this week here, in this article “Anti-China Vietnam Riots a Passing Phase,” and Willy Lin’s comments can also be construed as a mild political point to Beijing that placing oil rigs in disputed waters hurts Hong Kong manufacturers. Continue reading

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