Industry Reports

New Issue of Asia Briefing: An Introduction to Development Zones Across Asia

May 10 – The new issue of Asia Briefing Magazine, titled An Introduction to Development Zones Across Asia, is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore throughout the months of May and June.

The use of development zones in their different guises has been an effective model essentially brought to prominence by China over the past 25 years to help both foreign investors and domestic companies meet in a relationship that provides tax advantages to both. Development zones typically permit the foreign investor to bring component parts into a country for assembly without having to pay import duties. Investors may then add in locally-sourced components, assemble the final product, and warehouse it all duty free before then having the option of exporting the finished product (collecting some VAT rebates on the locally sourced portion) or entering the domestic market with a product assembled at local labor costs. Continue reading →

Posted in Business, Featured, Foreign Trade, Manufacturing, Markets | 1 Comment

New Issue of Asia Briefing: Expanding Your China Business to India and Vietnam

Mar. 6 – The second issue of our new issue Asia Briefing Magazine, titled Expanding Your China Business to India and Vietnam, is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore throughout the months of March and April.

As operational costs in China continue to rise, an increasing number of companies are looking at either relocating or moving part of their China-based facilities to lower cost markets elsewhere in emerging Asia. This makes sense since China itself is trying to move away from an export-driven economy and into a consumption-driven growth model.

Meanwhile, countries such as Vietnam are actively courting these export businesses through tax incentives and preferential policies similar to those that helped China get to where it is today. India, too, with its abundant, young and inexpensive workforce, coupled with a massive consumer market, is looking strikingly similar to China 20 years back. Continue reading →

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Tata’s Luxury Jaguar and Land Rover Marques to be Built in China

Latest in slew of Sino-Indian joint ventures

Nov. 19 – Both Jaguar and Land Rover vehicles are to be built in China under specially-developed new brands for the domestic market in a US$1.5 billion JV deal announced between JLR, owned by India’s Tata Motors, and China’s Chery Auto. Tata who purchased the British vehicle brands and assembly plants from Ford four years ago, have been highly successful in targeting their upmarket marques at Asian consumers. Previously, the vehicles had largely been the preserve of the American and European markets. The first models to shift production are likely to be the Land Rover Freelander and Defender 4x4s, with luxury Jaguar limousines set to follow. Continue reading →

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China’s Lenovo Surpasses HP as Largest Global PC Maker

By Daniel Fleishman

Oct. 12 – The days of American dominance over the PC market seem to be coming to a close. According to the research firm Gartner, Lenovo captured a market share of 15.7 percent in the third quarter of 2012, topping HP’s 15.5 percent, ousting the PC giant from the leading position it held for the past six years. Continue reading →

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Declining Coal Prices Herald in New Chinese Reforms

Sept. 25 – Last year, China overtook Japan to become the largest importer of thermal coal, effectively granting China great influence over global coal prices. A recent reform proposal regarding China’s coal pricing system suggests that policy makers are anticipating a continual decline in global coal prices, currently at a three-year low of US$90 a ton.

As thermal coal supplies over two-thirds of China’s energy requirements, it has taken slow and careful steps in reforming its coal prices. China is also the world’s largest coal producer, yet in recent years domestic mines have been unable to keep up with the pace of China’s burgeoning power demand. China instead has had to rely on overseas coal suppliers more heavily, already importing approximately 150 million tons since the beginning of this year. Continue reading →

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On the Fast-Track: Technology Transfer in China

Over the past four years, China has switched from being an importer of high-speed trains to the world’s largest manufacturer. Much of this can be attributed to the transfer of foreign technology to Chinese state-owned enterprises. How have Chinese government policies and economic heft aided this effort?

By Spike Nowak

Sept. 3 – Traveling at 300 kilometers per hour, a passenger on China’s domestically-manufactured high-speed trains can go from Beijing to Shanghai, approximately the same distance as Delhi to Mumbai, in less than five hours. Four years ago, the same trip on an older Chinese-manufactured train would have taken more than 12 hours.

China has now become one of the largest manufacturers of high-speed trains in the world. How has it achieved this in such a short time? The same question could be asked of windmills, automobiles, computers, software, and various other products manufactured in China.

Technology transfer – a process by which technology, knowledge, skills and manufacturing methodologies are transferred from one country to another – has made all this possible. Continue reading →

Posted in Business, Industry Reports, Science & Technology, Technology | Tagged China, China Technology | Leave a comment

Indian Autos in Demand as China Snaps Up Luxury Marques

Aug. 28 – Jaguar Land Rover (JLR) saw sales to China increase by 91 percent over the past three months as Chinese consumers eagerly snapped up the luxury cars. Imported into China from JLR’s UK plants, the brands comprise the best of British manufacturing expertise tied to Indian management, regional marketing knowledge and ultimate ownership – Tata Group purchased the then-struggling brands from Ford in 2008. Since then, the UK-based operations have been extensively re-financed and re-modeled. The result? Two now Indian-owned premium auto brands that China just can’t get enough of. Continue reading →