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China Business in China

Posted by Eddie Tobey | Business & Trade | Tuesday 29 July 2008 2:58 am

First of all, it is meaningless to duplicate strategies however successful they are in Europe. Secondly, the sheer number of US firms eyeing to import/export from China is another source of a problem: too many of them adapting the same strategy and chasing the same few companies for import & export alliance. But remember, not many large Chinese home grown companies were in the driving seat of its massive growth in recent years. This exposes the shortcomings of Chinese import/export companies and their competence to handle large volumes of global sourcing orders. This must serve as a wake up call to all China business seekers and give them a few points to ponder about.

Foreign investors are pouring in capital in developing China business in the face of the burgeoning economy. It is mysterious that multi-nationals are pursuing theoretical approaches to import and export from China business investment. Success in China can be possible by steering away from unsuitable models in particularly advantageous areas. First of all, quite a few China business entrants, tired of global sourcing, bought out local players in the niche market which gave them established infrastructures. Others went ahead with long term import/export contracts, in place of global sourcing; befitting that China is world’s factory.

High Volatility in China’s Real Estate Market

Posted by Sukbinder Singh | Business & Trade | Wednesday 9 July 2008 2:47 am

China has experienced a period of unprecedented growth in recent years. It is now the world’s largest economy, mainly due to the sheer size of its population. However, a rampant economy is not always a good thing, and much effort recently has gone into slowing down the markets in China. What impact has this had on the real estate market specifically?

In a nutshell: china’s property market has been slowing down considerably, however, this has not deterred long-term investors who see this as a favorable time to buy. Government initiatives have been behind much of the slowdown – tighter credit guidelines and other measures were introduced by the Chinese government last year, and they finally seem to be having an effect on the economy and Chinese real estate investment. In 2007, the interest rate was raised six times in an attempt to curb spending and tighten up on the economy generally. In more intricate measures, the minimum reserve ratio of commercial banks has been increased, and the tax system has undergone great change. Before these measures were introduced, property had been a runaway freight train, with property at the upper end of the market in high demand, and some prices up 50% in a very short time. Shenzhen, one of the more populous areas, had real estate prices inflated by around 20%. The peak of property sales was in November last year, and the numbers have been falling ever since, according to the governments index on the state of the Chinese real estate market.