Buyers Dry Up in China as Economy Slows

Aaron Back
Wall Street Journal
China's soft August trade data could presage further weakness in its key export sector in the months ahead, suggesting that the world's No. 2 economy will continue to slow.The data released Monday showed that China's external and...

Caixin Media

09.07.12

Local Governments Bet Big on New Investment

They’re still hung over from a 4 trillion yuan spending spree initiated by the central government nearly four years ago, but local governments across China are pressing ahead anyway with huge new investment plans.In late August, for example, the...

State Monopolies Continue to Dominate China’s Top 500

Zhang Dian (Translator)
Economic Observer
A new list that ranks China's top 500 companies according to operating revenue put together by the China Enterprise Confederation & China Enterprise Directors Association (CEC/CEDA) reveals that most of China's biggest companies...

Guangzhou Moves to Limit New Cars

Keith Bradsher
New York Times
The crackdown by China’s third-largest city is the most restrictive in a series of moves by big Chinese cities that are putting quality-of-life issues ahead of short-term economic growth, something the central government has struggled to do on a...

Caixin Media

08.31.12

In Guangdong, Tea Oil Greases Official Palms

In the financial documents for a Guangdong province grower and processor of tea seed oil is a list of key shareholders who also happen to be the relatives of local government officials.Off the record, Guangdong Xindadi Biotechnology Co. Ltd. and its...

Sinica Podcast

08.31.12

The Huawei Enigma

Kaiser Kuo, Jeremy Goldkorn & more from Sinica Podcast
Is there any other company that better captures the dual way China is perceived internationally than Huawei? As one of China’s few market-based telecommunications equipment providers, the company is in many ways a symbol of China’s high-tech, global...

Inside Huawei, Chinese Tech Giant Rattling Nerves in D.C.

Jay Greene and Roger Cheng
CNET
Huawei might make better, cheaper telecom gear than rivals. And it's come up with a new sleek handset to compete against the iPhone. But years of pressure from the federal government have largely kept Huawei on the fringes in the United States...

Reports

08.27.12

The China Toll

Robert E. Scott
Economic Policy Institute
Since China entered the World Trade Organization in 2001, the extraordinary growth of trade between China and the United States has had a dramatic effect on U.S. workers and the domestic economy, though in neither case has this effect been...

China Seeks to Increase Mutual Investments with India

Ananth Krishnan
Hindu
China has called for a move to boost mutual investments with India as a measure to strengthen trade ties and reshape what officials have acknowledged is an increasingly unbalanced and strained business relationship, as trade talks between both...

Caixin Media

08.25.12

Revamping the Landscape of Forex Flow

Capital flows out of China may be accelerating, a phenomenon commonly associated with waning confidence in a nation’s economy. But the foreign exchange regulator says the change is a step in the right direction.In the first six months of the year,...

China Confronts Mounting Piles of Unsold Goods

Keith Bradsher
New York Times
After three decades of torrid growth, China is encountering an unfamiliar problem with its newly struggling economy: a huge buildup of unsold goods that is cluttering shop floors, clogging car dealerships and filling factory warehouses.

Motorola Employees Protest against Layoffs

Tan Min
Hundreds of employees that could be laid off by Motorola China have protested in Beijing and Nanjing, calling for transparent procedures and fair treatment after the cell phone maker announced over 1,000 layoffs in the country.

Auditor Says Foxconn Is Improving Work Conditions

Rob Schmitz
Marketplace
If you own an Apple product, you might be interested in knowing how Apple's supply chain is doing. Six months ago, the Fair Labor Association, a labor group hired by Apple found a number of problems with iPhone and iPad maker Foxconn. Those...

Caixin Media

08.16.12

Rise Of The Online Titans

China’s titans of online retailing have unsheathed their marketing swords for a war in cyberspace that industry watchers say will decide the future of everyday shopping habits for nearly a billion consumers.Dozens of retail companies have staked out...

China’s Commercial Disputes Increasingly Arbitrated in Court

Simon Rabinovitch
Financial Times
A big rise in commercial litigation might seem perfectly normal in an economy that is experiencing a downturn, but in China it reflects a profound shift: the rule of law has made deep inroads in governing business transactions, from routine deals to...

How Dangerous Liaisons Led to Massive Corruption

Wang Chen, Gu Yongqiang, and Yu Ning
A graft investigation into former railways minister Liu Zhijun that started in February 2011 has concluded with the ministry issuing a document on August 3 that lists six disciplinary violations Liu committed. The internal ministry notice sheds...

Scrutiny for Casino Mogul’s Frontman in China

Michael Luo, Neil Gough, and Edward Wong
New York Times
When Sheldon Adelson, the casino magnate, needed something done in China, he often turned to his company’s “chief Beijing representative,” a mysterious businessman named Yang Saixin. Mr. Yang arranged meetings for Mr. Adelson with senior Chinese...

Las Vegas Sands Probed on China Deals

Alexandra Berzon and Kate O'Keefe...
Wall Street Journal
The probes jump off from Sands' disclosure last year that the U.S. Justice Department and the Securities and Exchange Commission were investigating it for possible violations of the Foreign Corrupt Practices Act, following allegations made in a...

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...