China in Focus

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China in Focus
Observations of Business, Economic and Social Perspectives in China

The New Normal in China for MNC’s: Attrition

This article reviews the recent stages of development in China, with a focus on MNCs and proposes measures for foreign companies to take when facing a smaller share of a much larger market going forward.

Companies Seek to Reduce Dependence on Chinese Rare Earth Elements

In order to strengthen the rare earth element supply chains within China, the Chinese government continues its policies to consolidate companies and tighten export restrictions in the rare earth element industry; this has led to foreign companies ramping-up efforts to find alternative solutions that will help alleviate their dependency on the monopolistic Chinese rare earth elements supply.

Why are Foreign Companies Growing Slower in China?

A recent finding from the GCiS Research Data Set shows that recent growth rates for foreign companies in China are significantly lower than those of Chinese companies, including both private and state-owned Chinese firms. This article examines the background to this finding and some of the reasons, focusing on the construction sector in particular.

Why Can't My Company Do a Billion Dollars in China?

This article focuses on some of the top factors which limit growth of a foreign company in China. A senior partner at GCiS explains that many western businesses have overly high expectations of their growth in China and sheds light on some of the complexities in Asia's economic engine.

Importance of China to Western Multi-Nationals

Just how important is China to western multi-nationals? For years we have been hearing talk of how important China is going to be to western business, and how China as well as other BRIC and developing countries would drive growth for these companies. One of the best ways to measure this is to look at the total contribution of China to the total revenues of leading multi-nationals in China- now compared to several years ago. So is this potential now being realized?

Chinese Companies Coming to Your Shore

Americans buy hundreds of Chinese-made products, though most would be hard pressed to name a single Chinese brand. While Chinese companies are good at manufacturing products efficiently, they have not been successful launching brands and products in foreign markets. This is soon set to change however, and although Chinese consumer offerings such as fine chemicals, fast moving consumer goods, retail and pharma products are unlikely to make a big impact abroad, look out for increasing numbers of Chinese brands offering white goods, industrial equipment, construction machinery, engineering, transport solutions and recently, with ICBC's aquisition of BEA's New York section, financial services.

Outside the System in China

China is in the midst of testing economic theory. By current estimates more than 70% of China’s economic output is controlled by the government. Yet China’s economy has prospered in recent years while other economies have floundered, leading some to say that China offers an alternative economic model. Thus the question: Can a country prosper if its government-backed enterprises are allowed to control the lion‘s share of its economy and its private enterprises stifled?

Understanding the US China Trade Imbalance: What is Really Driving Chinese Exports?

As the China-US trade imbalance seems likely to remain in the spotlight continually, this article explores the forces that drive Chinese exports. Despite of China's great influence on US' trade deficit through an undervalued currency among other measures, contrary to common sense, foreign companies may play a significant role in this. Correcting the trade imbalance will come about by higher prices in China, coupled with a stronger currency. It may take years, or even decades.

Hedging on Hedges

This article explains that the recent movement of China's wealthy (and wealth) overseas is not necessarily a brain and wealth drain for China, but instead a way for wealthy Chinese to establish a hedge both on assets and a quality of life. It could be stretch their legs and enjoy the suburbia life more developed in anglo-saxon countries, or simply spending in China for suburban villas, overseas travel and private school.

Populations and Pre-School

A partner at GCiS applies his own observations of Chinese urban families to a recent study that suggests even if the one-child policy was lifted, not many families would have (or could afford) another child. Besides the basic necessities, he explains, the "expected" costs such as English lessons, baby powder, and even photographs would keep families thinking twice about "having another".

The Chinese Industrial Swarm

Much is written in the West of China's trade and industrial policies, but there is little available information that accurately describes the scale, speed and nature of how these actions are set in motion. A common misconception is that policy in China is dictated and overseen by a small group of autocrats, that policies are made and the rest of the country follows the lead. How it really works is a little different however, and described here with Photovoltaics being a case in point.

China in 2019

A snapshot of the most likely economic, political, industrial and environmental trends emerging in China's mid term future. Also included is the market for foreign companies, among other trends.

China Entry Guideline

This article examines the basic issues with business entry in China, ranging from structural set up, establishment of sales and distribution networks, operational considerations and protection of intellectual property.

Regarding Guanxi in China

Exploring the definition of "Guanxi" in China, this article explores its main functions and meaning, outside of its typically overused context. This includes the true implications for foreigners and foreign businesses, and intelligent ways of leveraging useful guanxi in the best and most practical manner.

Do's & Don'ts for China Entry

This article written by Senior Partner Charles Oliver offers 7 key Do's and Don'ts (seven of each) regarding the most important China market entry issues.

Research in China

Here, uniqueness in approaches to market research in China are examined and compared to research practices in the West. The article provides more detailed information regarding variety of research sources, their reliability, possible misunderstandings and common failings.

 


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