Caixin Media

08.09.12

Subsidized Cartoons, Comics Tickling Too Few

Breaking into the animated film industry usually requires a basic plan for blending colorful images and clever storytelling in ways that entertain the public—and make money.Since 2006, however, animated film start-ups in China have done quite well...

Reports

08.08.12

Samsung Supplier Factory Exploiting Child Labor: Investigative Report

China Labor Watch
Peony Lui
China Labor Watch
Members of China Labor Watch conducted an investigation of HEG Electronics (Huizhou) Co., Ltd, which showed that the practice of hiring child labor is prevalent this factory. Investigators worked in the factory for two months, and identified seven...

Samsung China Assembler Employs Child Workers, Group Says

Mark Lee
Bloomberg
A Chinese company that assembles devices for Samsung Electronics Co. (005930) hired children at its production facilities and forced employees to work excessive hours, violating labor laws, China Labor Watch said in a report.

Caixin Media

08.07.12

Shenyang Businesses Closed By Inspection Panic

Most shop owners in a city of roughly 8 million people have pulled down their shutters to avoid what they fear will be stringent enforcement of a city ordinance tied to the hosting of the 2013 National Games.Small business owners in Shenyang,...

Huawei: The Company That Spooked the World

Unattributed
Economist
BANBURY, a little English town best known for a walk-on part in a nursery rhyme and as the eponymous origin of a fruitcake, is an unlikely fulcrum for the balance of power in the world of telecoms. But the “Cyber Security Evaluation Centre” set up...

Ideas Will Determine China's Future

Zhang Weiying
Wall Street Journal
Even as China's economy gallops ahead, its society is facing increasingly sharp contradictions. Income and regional inequalities are expanding, official corruption is rampant, access to medical care and education are uneven, and environmental...

The Perils of Private Enterprise: There Was Blood

Economist
A visitor to Jingbian county in northern Shaanxi province finds at its heart a thriving oil town in the grip of a state-owned company, Shaanxi Yanchang Petroleum. Yanchang’s building, 12 storeys high, towers over the low-slung town. The company is...

Chinese Property: The Most Important Sector in the World?

S.C.
Economist
CHINA'S property market was once described as the "most important sector in the known universe" by Jonathan Anderson, formerly of UBS, a Swiss bank. It certainly felt that way on a recent visit to Sanya, the resort city in Hainan,...

Caixin Media

07.31.12

Shedding Light on the Solar Crisis

After Suntech Power Holdings Co. Ltd., a Wuxi-headquartered photovoltaic cell producer, went public on the New York Stock Exchange in 2005, China’s solar industry grew at an astonishing speed. More than 200 photovoltaic product manufacturers are...

Caixin Media

07.27.12

LDK Solar Owes Twenty Suppliers 600 Million Yuan

Debt-ridden Jiangxi LDK Solar has defaulted on at least 600 million yuan in unpaid bills for raw materials and equipment, twenty suppliers say.“Starting from late last year, LDK Solar was delinquent on 15 million yuan to our company,” Liu Qingfeng,...

Chinese Maker of Olympic Uniforms Baffled by Backlash

David Pierson
Los Angeles Times
If Horatio Alger had spoken Mandarin he would have loved the rags-to-riches tale of garment maker Li Guilian. Chinese President Hu Jintao and fellow Politburo members are loyal customers of her firm,...

Fashion Magazines Laden With Ads Thriving

CHRISTINE HAUGHNEY and JONATHAN...
New York Times
While fashion labels are spending more on magazine advertising in the United States, they’re pouring even more money into magazines across mainland China.

Detention for New Oriental

Tom Orlik
Wall Street Journal
The education of U.S. investors on the risks of overseas-listed Chinese stocks continues. Shares in New Oriental Education & Technology Group, one of China's largest private education providers, plunged 57% in the last two days, wiping...

Yum Profit Trails Estimates as Costs Increase in China

Leslie Patton and Kelly Blessing
Bloomberg
Yum! Brands Inc. (YUM), owner of the KFC and Taco Bell restaurant brands, said second-quarter profit rose 4.7 percent, falling short of analysts’ projections, as costs increased at locations in China.

Caixin Media

07.19.12

Vineyards Pop Corks on Chinese Wine Investors

Wine-tasting party conversations among investors in China are increasingly sounding like sour grapes.Some well-heeled wine investors have been anxiously debating whether a price bubble for investment-grade wine is getting ready to burst. Others...

Caixin Media

07.18.12

Financial Reform Has Only Begun

The Chinese economy’s rapid growth over the past thirty years has fundamentally changed global economic structures. But our achievements have come at a price: We have run up against hard limits in many areas, including factor investment costs and...

Q&A: Searching for Perfect Pitch

Evan Osnos
New Yorker
What sells in China? The answer may be poised for a change. Advertising on the mainland has traditionally been about volume: loud, busy, and overwhelming. (One study found that the average Shanghai resident is exposed to three times as many...

Wage Rises in China May Ease Slowdown

Tom Orlik and Bob Davis
Wall Street Journal
Wages are still climbing rapidly in China and many companies are having trouble filling jobs despite the sharp economic slowdown here—evidence of a structural shortage in the labor market that may help China adjust to slower growth without political...

Sheldon Adelson and Macau

Evan Osnos
New Yorker
Nearly forty years ago, S. J. Perelman described a fictional Hong Kong hotel he called the “Golden Bamboozle,” a reference not only to a bed chamber that cost a “prince’s ransom,” but to a city that was a magnet for bon vivants and grifters and risk...

Caixin Media

07.11.12

Economic Ties that Bind

Labor leader Wayne Swan has his finger on the pulse of the Australian economy as the nation’s deputy prime minister and treasurer, which means he’s well-equipped to explain factors defining the increasingly robust relationship between China and...

U.S. Files Trade Complaint Against China on Cars

Mark Landler
New York Times
The United States filed a trade complaint against China on Thursday for new duties it imposed on American-made cars and trucks. The move came as President Obama kicked off a campaign bus tour through the manufacturing heartland of Pennsylvania and...

On Chinese Liquor Brand Is the Life of the Party

MARK MCDONALD
New York Times
Government and Communist Party officials in China have been pounding down so much Moutai grain alcohol — the good stuff, the expensive stuff, not the everyday rotgut — that Prime Minister Wen Jiabao recently proposed slashing the state budget for it...

China Debates Apple’s $60m ‘iPad’ Payout

Josh Chin
WSJ: China Real Time Report
The China-based unit of Hong Kong computer monitor maker Proview has found itself $60 million richer after concluding settlement negotiations in its legal dispute with Apple over the use of the iPad name in China. Proview isn’t faring nearly so well...

Caixin Media

07.02.12

Deal Puts Saab in Green Technology Driver’s Seat

The dark clouds over bankrupt Swedish car maker Saab have finally cleared.Saab Automobile AB’s liquidator signed an agreement in mid-June with National Electric Vehicle Sweden AB (NEVS) to sell the company’s main assets to the Sino-Japanese...

Media

06.30.12

Bloomberg Unearths Xi Jinping’s Family Fortune

Amy Qin
A recent Bloomberg report detailing the millionaire assets of the extended family of Xi Jinping, China’s presumptive next leader, has drawn praise from the community of China media observers for its thorough investigative work and fact-...

Xi Jinping Millionaire Relations Reveal Fortunes Of Elite

Bloomberg News
Bloomberg
Xi Jinping, the man in line to be China’s next president, warned officials on a 2004 anti-graft conference call: “Rein in your spouses, children, relatives, friends and staff, and vow not to use power for personal gain.” As Xi climbed the Communist...

Caixin Media

06.29.12

Barclay’s Diamond Offers an Optimistic Vision

A calm, confident Robert Diamond discussed financial restructuring in Europe and economic options for the Chinese government during a June 14 interview—thirteen days before the British bank where he serves as CEO, Barclays Group, was fined for...

Caixin Media

06.29.12

Shale Gas Race

The shale gas revolution in the United States has led to a debate in China over shale gas development. But can the United States really achieve energy self-sufficiency? And if it can, what are the implications for China?Ever since the Nixon era,...

Chinese Company in Kickback Scandal in the Philippines

Andrew Higgins
Washington Post
After a tense showdown over a disputed shoal in the South China Sea, the closest U.S. ally in Southeast Asia and a rising China now face a new source of potential friction over the alleged corrupt practices of a well-connected Chinese corporation.

NYTimes To Launch Chinese-Language News Site

Christine Haughney
New York Times
The New York Times is introducing a Chinese-language Web site, part of a continuing effort to expand its reach to international readers. The site, which is called cn.nytimes.com and will go live Thursday morning, is intended to draw readers from the...

Caixin Media

06.27.12

Cash for China’s Homegrown Smartphone

Xiaomi Mobile Internet Co. has raised US$216 million, its CEO says, raising the total value of the upstart, homegrown Chinese smartphone maker to US$4 billion.If Lei Jun’s claim is accurate, his two-year-old company’s value is close to the market...

Reports

06.27.12

Beyond Foxconn: Deplorable Working Conditions Characterize Apple’s Entire Supply Chain

China Labor Watch
On June 14th, 2012 a Foxconn worker jumped to his death from his apartment building in Chengdu, marking the 18th reported worker suicide at Foxconn factories in China in just over two years. Many additional suicides may have gone unreported. But...

Reports

06.25.12

U.S.-China Public Perceptions Opinion Survey 2012

Emily Brill
Committee of 100
The re-establishment of U.S.-China relations in 1971 marked a strategic step that ended China’s isolation and transformed the global balance of power. Since that historic milestone, the United States as an established superpower and China as an...

Caixin Media

06.20.12

China’s Food Fright

There’s no denying that the gastronomic horizons of Chinese cuisines sometimes verge on the infinite. But on factors of food quality, there’s little subtlety or nuance for safety standards.In the past five years, the number of public food and drug...

Jack Ma Is the Loneliest Billionaire in China

Bruce Einhorn and Frederik Balfour
Businessweek
It’s been a rough 18 months for Chinese Internet tycoon Jack Ma, founder and chairman of the Alibaba Group, a sprawling conglomerate of Web companies. Early in 2011 a fraud scandal hit his business-to-business e-commerce site, Alibaba.com. At...

Caixin Media

06.14.12

Private Economy’s Original Sin

Whether measured in terms of gross domestic product, tax contributions or job creation, statistics prove that the private economy plays a crucial role in China.In some well-developed parts of the country the private sector, when factoring in...

The Unwritten Rules in Chinese Technology

Evan Osnos
New Yorker
What do we mean when we say a Chinese company has “close ties to the government”? Or is “connected to the military”? And does this matter? It is a problem that writers on China have encountered for years, and it can be difficult get firm evidence...

Caixin Media

06.08.12

Road Show Media Bandits Squeeze IPO Hopefuls

Buying media silence is a common first step toward an initial public offering in China that siphons billions of yuan every year from companies seeking investors in Shanghai and Shenzhen.The phenomenon has been documented by the China Securities...

What Happened on the Shanghai Stock Exchange?

Evan Osnos
New Yorker
China experienced a bizarre numerological happening this week. The Shanghai Composite Index started yesterday morning at 2346.98, which, when read from right to left, shares an uncanny similarity to yesterday’s highly sensitive anniversary: twenty-...

Reports

06.01.12

Crossing the River by Feeling for Stones: A New Approach to Exporting Creative Content to China?

Hasan Bakhshi and Philippe Schneider
Nesta
We have all heard the statistics. About how China is forecast to overtake the U.S. to be the largest economy in the world by 2027. How China already has 277 million mobile web users, of which 45 percent use their handsets to access music and 21 per...

Media

05.31.12

Zuckerberg’s CCTV Cameo

Bo Wang & Kennett Werner
Chinese social media outlets lit up after sharp-eyed viewers caught Facebook CEO Mark Zuckerberg making a cameo appearance on Chinese Police, a documentary series produced by China Central Television (CCTV). Just a few second long, the footage shows...

Top Banker Held in Gambling Probe

George Chen
South China Morning Post
A senior executive at one of the mainland's Big Four state-controlled banks has been detained amid a widening investigation into allegations of illegal gambling and the misappropriation of clients' money...

Caixin Media

05.31.12

Heading Deep for the First Time

On May 9, China National Offshore Oil Corp.’s (CNOOC) first deepwater drilling platform began operating in the South China Sea. The world-class vessel is stationed in the Liwan 6-1-1 field, about 320 kilometers southeast of Hong Kong, in waters...

Caixin Media

05.28.12

Rail Builders Shift Interest to Overseas Mines

After a three-year wait, China Railway Construction Corp. Ltd. (CRCC) recently won permission to launch a major copper mining project in Ecuador.The production agreement signed April 25 by Ecuador’s government and Corriente Resources, a Canadian...

Caixin Media

05.25.12

Hard Lesson for China Concept-Stock Investors

Imagine discovering on your first day as a new CEO that your employer is merely a shell that may be destined for a shameful delisting on the Nasdaq Stock Market.That’s what happened recently to ChinaCast Education Corp. CEO Feng Yiyi, who is now...

Caixin Media

05.23.12

Identity Crisis Rattles Volvo’s Chinese Owner

New models bearing the Chinese-owned Volvo badge shared a luxury spotlight at the Beijing International Auto Show in April with perennial stars Mercedes-Benz, BMW, and Lexus.But behind the diamond-studded presentation was confusion over the legal...

Media

05.18.12

Hong Kong Movie Star Now a Motivational Speaker

Bo Wang
Nicholas Tse—the famous young Hong Kong singer, actor, and musician—is known for portraying irresponsible young rebels. People think that's what he's like in real life. The Hong Kong University of Science and Technology invited Tse to be a...

Caixin Media

05.18.12

Message in a Bottle for Spirits Maker Moutai

A glass of Feitian Moutai packs a wallop, which is one reason why the 106-proof baijiu is a hit among influential government officials.They also like Feitian Moutai because a single bottle, thanks to special arrangements between state agencies and...

Caixin Media

05.18.12

Era Ends for China’s Legendary Stock Picker

Investors who closely followed the stock picks of one of China’s most successful brokers are wandering in the wilderness—and wondering what will happen next to their unemployed luminary Wang Yawei.In April, and without warning, Wang resigned from...

Caixin Media

05.02.12

Yearning for the Yuan

London is forging ahead with plans for yuan-based financial services by developing an infrastructure and banking services that match its ambitions for the Chinese currency.On April 18, the city welcomed the first yuan-denominated bond issuance...

Reports

05.01.12

China’s Impact on World Commodity Markets

Shaun K. Roache
Luo Xiaoyuan
International Monetary Fund (IMF)
Shocks to aggregate activity in China have a significant and persistent short-run impact on the price of oil and some base metals. In contrast, shocks to apparent commodity-specific consumption (in part reflecting inventory demand) have no effect on...

Caixin Media

04.09.12

Dalian Businessman Who Built an Empire Vanishes

(Dalian)—The sudden disappearance of a self-made billionaire in the coastal city of Dalian has unnerved not only bank executives concerned about loans they made to his companies, but also government officials who have lent generous support to the...

Caixin Media

03.19.12

Fair Trade

A typically opaque investigation can begin with a tip from a Shanghai Stock Exchange official and end with a ten-year jail term for a businessman convicted of insider trading. What happens in between is a carefully guarded secret.Likewise hidden...

Books

03.06.12

Need, Speed, and Greed

Vijay Vaitheeswaran
World-renowned economist Vijay V. Vaitheeswaran provides a deeply insightful, brilliantly informed guide to the innovation revolution now transforming the world. With echoes of Clayton Christensen’s The Innovator’s Dilemma, Tim Brown’s Change by Design, and Jared Diamond’s Guns, Germs, and Steel, Vaitheeswaran’s Need, Speed, and Greed introduces readers to the go-getters, imagineers, and visionaries now reshaping the global economy. Along the way, Vaitheeswaran teaches readers the skills they must develop to unleash their own inner innovator and reveals why America and other wealthy, privileged societies must embrace a path of inclusive growth and sustainability—or risk being left behind by history.  —Harper Collins

Reports

02.20.12

China’s Banking System: Issues for Congress

Michael F. Martin
Peony Lui
Congressional Research Service
China’s banking system has been gradually transformed from a centralized, government-owned, and government-controlled provider of loans into an increasingly competitive market in which different types of banks, including several U.S. banks, strive...

Reports

02.01.12

Fostering Greater Chinese Investment in the United States

David M. Marchick
He Jianan
Council on Foreign Relations
China’s outward investment has substantial room to grow, and the United States has the potential to capture a larger share of it—an outcome that would benefit the U.S. and Chinese economies and strengthen the bilateral economic relationship. China...

Reports

01.31.12

Putting the Pedal to the Metal

Usha C.V. Haley
Economic Policy Institute
China is currently the largest car market in the world. It is also one of the largest auto-parts producers and exporters in the world, with exports, primarily to the United States, constituting about a third of its production. The Chinese...

Reports

11.16.11

Telecoms and the Huawei Conundrum

Claude Barfield
American Enterprise Institute for Public Policy Research
The Chinese company Huawei has emerged as the second-largest telecommunications equipment company in the world. It operates in 140 countries around the globe, providing equipment, software, and services to forty-five of the world’s fifty largest...

Making It Big in China

Jonathan Mirsky from New York Review of Books
Jianying Zha describes China as “way too big a cow for anyone to tackle in full.” Therefore, Ms. Zha says, she omits “the rural life, the small-town stories, the migrants working in huge manufacturing plants…continued poverty in parts of interior...

Reports

11.03.11

Foreign Direct Investment, Corruption and Democracy

Aparna Mathur, Kartikeya Singh
American Enterprise Institute for Public Policy Research
How do factors such as corruption perception and the level of democracy influence foreign direct investment to developing economies? The authors of this paper suggest that less corrupt countries and less democratic countries receive more foreign...