Think the WTO calls that dumping when prices are higher in their home country then in foreign countries. Its also illegal.
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Chinese Economics Thread
- Thread starter Norfolk
- Start date
Think the WTO calls that dumping when prices are higher in their home country then in foreign countries. Its also illegal.
Quickie
Colonel
I think Solar was specifically referring to manufactured consumer products. No question of dumping, here.
solarz
Brigadier
Taxes play a role in car prices, but not on things like digital cameras and laptops. A 100-200$ camera would be priced about 1500 to 3000 RMB in China. Granted, you can probably haggle that down a bit, but it's still more expensive. Same thing for laptops and computers, with the exception of custom-built computers. Those seem to be priced quite cheap compared to pre-built systems. The store's explanation was that "pre-built" systems carry the price of the "brand", which is something that we don't see happening in North America except with Sony Laptops and Apple products.
lcloo
Captain
Computers and Electrical goods in mainland China are more expensive because of 17% VAT/ Sales Tax. The same product can be bought cheaper in Hong Kong because there is no tax.
Despite the high staff salaries and rentals, the sales turn-over in Hong is so fast that new stocks will be sold out in just few months, thus they can sell cheaper but with large volume.
Despite the high staff salaries and rentals, the sales turn-over in Hong is so fast that new stocks will be sold out in just few months, thus they can sell cheaper but with large volume.
lcloo
Captain
I found an interesting news on Bloomberg.com regarding one of my favourite fast food restaurant.
McDonald's Sells Yuan Bonds in Hong Kong, First by Foreign Firm
By Shelley Smith and Henry Sanderson - Aug 19, 2010 6:20 PM GMT+0800
McDonald’s Corp., the world’s largest restaurant chain, became the first foreign non-financial company to sell yuan-denominated bonds in Hong Kong.
McDonald’s, based in Oak Brook, Illinois, sold 200 million yuan ($29 million) of 3 percent notes due in September 2013, offer manager Standard Chartered Plc said in an e-mailed statement today.
The issue “opens up more potential issuers to tap this market, especially those who have sizable operations in China,” said Arthur Lau, a Hong-based fixed-income fund manager at JF Asset Management Ltd.
China is expanding its financial system, and will use Hong Kong as a testing ground for yuan-denominated products, according to the city’s former central bank chief Joseph Yam. Foreign companies in February became eligible to issue yuan bonds as part of efforts to bolster the ex-British colony’s financial status and expand its role in promoting China’s currency for global commerce.
Bank of East Asia Ltd. and HSBC Holding Plc’s China unit sold yuan bonds in Hong Kong in 2009, becoming the first non- China banks to do so, according to data compiled by Bloomberg. Hopewell Highway Infrastructure Ltd., controlled by Hong Kong billionaire Gordon Wu, was the first non-financial company to enter the market when it issued 1.38 billion yuan of 2.98 percent notes in July, the data show.
China Growth
Hopewell’s bonds were last quoted at a 2.868 percent yield, according to Hong Kong Treasury Markets Association prices.
Wal-Mart Stores Inc., the world’s largest retailer, said in March that it may sell yuan bonds in Hong Kong. An issue would underscore the company’s commitment to support local communities and China’s financial system, Asia Chief Executive Officer Scott Price said in an interview.
China opened its first 1,000 McDonald’s restaurants faster than any other country outside the U.S. and is the company’s main focus for investment in the region, Tim Fenton, president for Asia, Middle East and Africa, said in a June 10 interview.
The fast-food chain plans to almost double its China outlets to 2,000 by 2013, he said.
McDonald’s sold its bonds in a private placement to Hong Kong institutional and professional investors, it said in a separate statement today. Money raised will provide working capital for expansion in China, where it will open as many as 175 restaurants this year, according to the statement.
To contact the reporters on this story: Shelley Smith in Hong Kong at [email protected]; Henry Sanderson in Beijing at [email protected]
McDonald's Sells Yuan Bonds in Hong Kong, First by Foreign Firm
By Shelley Smith and Henry Sanderson - Aug 19, 2010 6:20 PM GMT+0800
McDonald’s Corp., the world’s largest restaurant chain, became the first foreign non-financial company to sell yuan-denominated bonds in Hong Kong.
McDonald’s, based in Oak Brook, Illinois, sold 200 million yuan ($29 million) of 3 percent notes due in September 2013, offer manager Standard Chartered Plc said in an e-mailed statement today.
The issue “opens up more potential issuers to tap this market, especially those who have sizable operations in China,” said Arthur Lau, a Hong-based fixed-income fund manager at JF Asset Management Ltd.
China is expanding its financial system, and will use Hong Kong as a testing ground for yuan-denominated products, according to the city’s former central bank chief Joseph Yam. Foreign companies in February became eligible to issue yuan bonds as part of efforts to bolster the ex-British colony’s financial status and expand its role in promoting China’s currency for global commerce.
Bank of East Asia Ltd. and HSBC Holding Plc’s China unit sold yuan bonds in Hong Kong in 2009, becoming the first non- China banks to do so, according to data compiled by Bloomberg. Hopewell Highway Infrastructure Ltd., controlled by Hong Kong billionaire Gordon Wu, was the first non-financial company to enter the market when it issued 1.38 billion yuan of 2.98 percent notes in July, the data show.
China Growth
Hopewell’s bonds were last quoted at a 2.868 percent yield, according to Hong Kong Treasury Markets Association prices.
Wal-Mart Stores Inc., the world’s largest retailer, said in March that it may sell yuan bonds in Hong Kong. An issue would underscore the company’s commitment to support local communities and China’s financial system, Asia Chief Executive Officer Scott Price said in an interview.
China opened its first 1,000 McDonald’s restaurants faster than any other country outside the U.S. and is the company’s main focus for investment in the region, Tim Fenton, president for Asia, Middle East and Africa, said in a June 10 interview.
The fast-food chain plans to almost double its China outlets to 2,000 by 2013, he said.
McDonald’s sold its bonds in a private placement to Hong Kong institutional and professional investors, it said in a separate statement today. Money raised will provide working capital for expansion in China, where it will open as many as 175 restaurants this year, according to the statement.
To contact the reporters on this story: Shelley Smith in Hong Kong at [email protected]; Henry Sanderson in Beijing at [email protected]
Chinese state companies are drasticly increasing in importance in China's economy lately. Just a momentary picture after the financial crises, or signs of a wider trend? Has the economic privatisation just served to allow the economy to get moving and nurture the state sector, or is the state dominance of the important big industries just showing what has actually always been & remained the chinese way?
China Fortifies State Businesses to Fuel Growth
By MICHAEL WINES - Published: August 29, 2010
BEIJING — During its decades of rapid growth, China thrived by allowing once-suppressed private entrepreneurs to prosper, often at the expense of the old, inefficient state sector of the economy.
Now, whether in the coal-rich regions of Shanxi Province, the steel mills of the northern industrial heartland, or the airlines flying overhead, it is often China’s state-run companies that are on the march.
As the Chinese government has grown richer — and more worried about sustaining its high-octane growth — it has pumped public money into companies that it expects to upgrade the industrial base and employ more people. The beneficiaries are state-owned interests that many analysts had assumed would gradually wither away in the face of private-sector competition.
New data from the World Bank show that the proportion of industrial production by companies controlled by the Chinese state edged up last year, checking a slow but seemingly inevitable eclipse. Moreover, investment by state-controlled companies skyrocketed, driven by hundreds of billions of dollars of government spending and state bank lending to combat the global financial crisis.
They join a string of other signals that are fueling discussion among analysts about whether China, which calls itself socialist but is often thought of in the West as brutally capitalist, is in fact seeking to enhance government control over some parts of the economy. [...]
Mr. Wen and President Hu Jintao are also seen as less attuned to the interests of foreign investors and China’s own private sector than the earlier generation of leaders who pioneered economic reforms. They prefer to enhance the clout and economic reach of state-backed companies at the top of the pecking order.
“China’s always had a major industrial policy. But for a space of a few years, it looked like China was turning away from an active and interventionist industrial policy in favor of a more hands-off approach,” Victor Shih, a Northwestern University political scientist, said in a recent telephone interview.
Mr. Shih, among others, now believes that the 1980s reforms that unleashed China’s private sector and the 1990s reforms that dismantled great sections of the state-run sector are being partly undone. [...]
Yet the two camps’ view of China’s future are markedly different. Those who see little evidence of an expanding state sector generally believe that China has a decade or more of robust growth awaiting it before its economy matures. Theirs is a Goldilocks view of state intervention — not too much or too little, but just enough to push a developing economy toward prosperity.
The skeptics have a darker view: they believe distortions and waste, in no small part due to government meddling, have resulted in gross misallocation of capital and will end up pushing growth rates down well before 2020. What drives their pessimism, the skeptics say, is that China, like Japan a generation ago, has too much confidence in a top-down economic strategy that defies conventional Western theory. ...
China Fortifies State Businesses to Fuel Growth
By MICHAEL WINES - Published: August 29, 2010
BEIJING — During its decades of rapid growth, China thrived by allowing once-suppressed private entrepreneurs to prosper, often at the expense of the old, inefficient state sector of the economy.
Now, whether in the coal-rich regions of Shanxi Province, the steel mills of the northern industrial heartland, or the airlines flying overhead, it is often China’s state-run companies that are on the march.
As the Chinese government has grown richer — and more worried about sustaining its high-octane growth — it has pumped public money into companies that it expects to upgrade the industrial base and employ more people. The beneficiaries are state-owned interests that many analysts had assumed would gradually wither away in the face of private-sector competition.
New data from the World Bank show that the proportion of industrial production by companies controlled by the Chinese state edged up last year, checking a slow but seemingly inevitable eclipse. Moreover, investment by state-controlled companies skyrocketed, driven by hundreds of billions of dollars of government spending and state bank lending to combat the global financial crisis.
They join a string of other signals that are fueling discussion among analysts about whether China, which calls itself socialist but is often thought of in the West as brutally capitalist, is in fact seeking to enhance government control over some parts of the economy. [...]
Mr. Wen and President Hu Jintao are also seen as less attuned to the interests of foreign investors and China’s own private sector than the earlier generation of leaders who pioneered economic reforms. They prefer to enhance the clout and economic reach of state-backed companies at the top of the pecking order.
“China’s always had a major industrial policy. But for a space of a few years, it looked like China was turning away from an active and interventionist industrial policy in favor of a more hands-off approach,” Victor Shih, a Northwestern University political scientist, said in a recent telephone interview.
Mr. Shih, among others, now believes that the 1980s reforms that unleashed China’s private sector and the 1990s reforms that dismantled great sections of the state-run sector are being partly undone. [...]
Yet the two camps’ view of China’s future are markedly different. Those who see little evidence of an expanding state sector generally believe that China has a decade or more of robust growth awaiting it before its economy matures. Theirs is a Goldilocks view of state intervention — not too much or too little, but just enough to push a developing economy toward prosperity.
The skeptics have a darker view: they believe distortions and waste, in no small part due to government meddling, have resulted in gross misallocation of capital and will end up pushing growth rates down well before 2020. What drives their pessimism, the skeptics say, is that China, like Japan a generation ago, has too much confidence in a top-down economic strategy that defies conventional Western theory. ...
Martian
Senior Member
Taiwan's GARMIN has a dominating 60% share of U.S. GPS market
GARMIN nuvi 760
"Next Generation of GPS about to Blast Off
by Tony Sagami on June 2, 2010
Tony Sagami
On May 14, the space shuttle Atlantis blasted off for its 32nd and last mission. The Atlantis has flown to the Mir space station seven times and the International Space Station 11 times.
The Atlantis shuttle has ventured into space and returned with troves of scientific information and I still get goose bumps when I watch a shuttle launch. It is with a twinge of sadness to know that the Endeavour is scheduled to fly the last mission of the space shuttle program in November.
The space shuttles may grab most of the space headlines, but they are hardly the only things being shot into space.
It didn’t get a lot of media attention, but the United States Air Force launched the first of an advanced new fleet of navigation satellites last week.
New GPS satellites are about to be launched into orbit.
This new generation of satellites, built by Boeing, will enhance the current GPS fleet by adding 12 more GPS satellites to replace the current ones that are nearing the end of their service life, as well as dramatically enhance the capabilities of GPS systems. GPS networks will now offer ultra-precise navigation and near-instantaneous information.
“These next-generation satellites provide improved accuracy through advanced atomic clocks; a more jam-resistant military signal and a longer design life than earlier GPS satellites; and a new civil signal that benefits aviation safety and search-and-rescue efforts,” said Craig Cooning of Boeing Space and Intelligence Systems, which built the new satellite.
The GPS satellite network was originally developed for the U.S. military, but has since found use for a wide range of commercial applications.
“GPS 2F will increase the signal power, precision and capacity of the system, and form the core of the GPS constellation for years to come. It has twice the signal accuracy of previous navigation satellites,” said Air Force spokesman Commander Colonel David Madden.
The current network of satellites orbits the globe 14 times a day, but has gaps in coverage as the signal is passed from satellite to satellite. After the launch of the 12 new generation satellites, the signal will be continuous and very close to instantaneous.
10 PRACTICAL GPS USES
1. Keep track of where your children and the car they are driving are.
2. Monitor the location of elderly members of your family, so that they don’t wander off alone.
3. Plan a road trip around interesting points of interests, landmarks, campsites, and restaurants.
4. Get emergency roadside assistance at a touch of a button from your vehicle.
5. Find lost pets easily using collars with built-in GPS.
6. Emergency personnel can quickly locate you when you call 911 on your cell phone.
7. Get directions and find shortcuts.
8. Find the closest Chinese, Italian, seafood, or sushi restaurant.
9. Track your luggage, laptops, and anything of importance while traveling.
10. Find family or friends in a crowd.
One Asian company is positioned to prosper from this improved GPS coverage. I’m talking about Garmin (Nasdaq:GRMN).
Garmin isn’t a household name, but it is global leader in portable and fixed-mount GPS-enabled products geared for the aviation, automotive, boating, and outdoor recreational markets. It’s even got GPS systems for cyclists, runners, and dogs.
Dogs? You bet. Hunting is really big in Montana and I have one friend who has spent more than $10,000 on training classes for his dogs. The last thing he wants is for one of his prized boys to run off into the woods never to be found again. His solution is the Garmin Astro GPS device that can tell him where his dog is by simply following a little animated dog icon on the small handheld screen.
Garmin is incorporated in the Cayman Islands, but its main manufacturing and research center is in Taiwan, which is why it hit my Asian radar screen.
Garmin is a global leader in GPS-enable products.
When it comes to GPS systems, Garmin absolutely dominates the U.S. market with a 60% market share and a 20% market share in Europe.
That’s like money in the bank because the application, market, and profits from GPS-enabled systems are going to explode. GPS technology has been used for military and aviation uses for years, but the potential in the gigantic consumer market has yet to be tapped.
According to Morningstar, the total market for personal navigation devices is forecast to triple in the next five years, but even that optimistic forecast may be too low.
Garmin has a stranglehold on the automotive navigation segment, which accounts for more than half of its annual sales.
Garmin’s success is simple: Its navigation systems do much, much more than just give directions. Garmin fills its products with cool features like up-to-date traffic flow and incident information, MP3 players, language translators, currency converters, travel guides, digital photo organizers, gas price data, weather forecasts, and movie showtimes for area theaters.
Ford and Chrysler offer Garmin personal navigation devices in their cars, as well as almost the entire rental car market: Avis, Enterprise Rent-A-Car, Dollar-Thrifty, National, and Alamo.
Plus, Garmin has built powerful distribution relationships for its portable GPS with established companies like Target, Best Buy, and Wal-Mart plus original equipment manufacturers (OEMs) such as Ford, BMW, Honda Motorcycles, Cessna, Piper, and Premier Marine.
The application for GPS technology is still in its infancy and has only recently become available in cell phones. I expect the new USAF satellites to accelerate that marriage between cell phones and GPS service and the cell phone market could become even bigger than the automobile market for Garmin.
Garmin pays a $1.50 annual dividend, which works out to more than a 4% yield, sells for less than 10 times earnings, has ZERO debt, and $1.3 billion ($6.58 per share) of cash.
Should you rush and buy Garmin today? You need to do your own homework, but the new generation of GPS satellites is going to help make Garmin products better, more valuable, and ultimately generate bigger profits.
Best wishes,
Tony"
GARMIN nuvi 760
"Next Generation of GPS about to Blast Off
by Tony Sagami on June 2, 2010
Tony Sagami
On May 14, the space shuttle Atlantis blasted off for its 32nd and last mission. The Atlantis has flown to the Mir space station seven times and the International Space Station 11 times.
The Atlantis shuttle has ventured into space and returned with troves of scientific information and I still get goose bumps when I watch a shuttle launch. It is with a twinge of sadness to know that the Endeavour is scheduled to fly the last mission of the space shuttle program in November.
The space shuttles may grab most of the space headlines, but they are hardly the only things being shot into space.
It didn’t get a lot of media attention, but the United States Air Force launched the first of an advanced new fleet of navigation satellites last week.
New GPS satellites are about to be launched into orbit.
This new generation of satellites, built by Boeing, will enhance the current GPS fleet by adding 12 more GPS satellites to replace the current ones that are nearing the end of their service life, as well as dramatically enhance the capabilities of GPS systems. GPS networks will now offer ultra-precise navigation and near-instantaneous information.
“These next-generation satellites provide improved accuracy through advanced atomic clocks; a more jam-resistant military signal and a longer design life than earlier GPS satellites; and a new civil signal that benefits aviation safety and search-and-rescue efforts,” said Craig Cooning of Boeing Space and Intelligence Systems, which built the new satellite.
The GPS satellite network was originally developed for the U.S. military, but has since found use for a wide range of commercial applications.
“GPS 2F will increase the signal power, precision and capacity of the system, and form the core of the GPS constellation for years to come. It has twice the signal accuracy of previous navigation satellites,” said Air Force spokesman Commander Colonel David Madden.
The current network of satellites orbits the globe 14 times a day, but has gaps in coverage as the signal is passed from satellite to satellite. After the launch of the 12 new generation satellites, the signal will be continuous and very close to instantaneous.
10 PRACTICAL GPS USES
1. Keep track of where your children and the car they are driving are.
2. Monitor the location of elderly members of your family, so that they don’t wander off alone.
3. Plan a road trip around interesting points of interests, landmarks, campsites, and restaurants.
4. Get emergency roadside assistance at a touch of a button from your vehicle.
5. Find lost pets easily using collars with built-in GPS.
6. Emergency personnel can quickly locate you when you call 911 on your cell phone.
7. Get directions and find shortcuts.
8. Find the closest Chinese, Italian, seafood, or sushi restaurant.
9. Track your luggage, laptops, and anything of importance while traveling.
10. Find family or friends in a crowd.
One Asian company is positioned to prosper from this improved GPS coverage. I’m talking about Garmin (Nasdaq:GRMN).
Garmin isn’t a household name, but it is global leader in portable and fixed-mount GPS-enabled products geared for the aviation, automotive, boating, and outdoor recreational markets. It’s even got GPS systems for cyclists, runners, and dogs.
Dogs? You bet. Hunting is really big in Montana and I have one friend who has spent more than $10,000 on training classes for his dogs. The last thing he wants is for one of his prized boys to run off into the woods never to be found again. His solution is the Garmin Astro GPS device that can tell him where his dog is by simply following a little animated dog icon on the small handheld screen.
Garmin is incorporated in the Cayman Islands, but its main manufacturing and research center is in Taiwan, which is why it hit my Asian radar screen.
Garmin is a global leader in GPS-enable products.
When it comes to GPS systems, Garmin absolutely dominates the U.S. market with a 60% market share and a 20% market share in Europe.
That’s like money in the bank because the application, market, and profits from GPS-enabled systems are going to explode. GPS technology has been used for military and aviation uses for years, but the potential in the gigantic consumer market has yet to be tapped.
According to Morningstar, the total market for personal navigation devices is forecast to triple in the next five years, but even that optimistic forecast may be too low.
Garmin has a stranglehold on the automotive navigation segment, which accounts for more than half of its annual sales.
Garmin’s success is simple: Its navigation systems do much, much more than just give directions. Garmin fills its products with cool features like up-to-date traffic flow and incident information, MP3 players, language translators, currency converters, travel guides, digital photo organizers, gas price data, weather forecasts, and movie showtimes for area theaters.
Ford and Chrysler offer Garmin personal navigation devices in their cars, as well as almost the entire rental car market: Avis, Enterprise Rent-A-Car, Dollar-Thrifty, National, and Alamo.
Plus, Garmin has built powerful distribution relationships for its portable GPS with established companies like Target, Best Buy, and Wal-Mart plus original equipment manufacturers (OEMs) such as Ford, BMW, Honda Motorcycles, Cessna, Piper, and Premier Marine.
The application for GPS technology is still in its infancy and has only recently become available in cell phones. I expect the new USAF satellites to accelerate that marriage between cell phones and GPS service and the cell phone market could become even bigger than the automobile market for Garmin.
Garmin pays a $1.50 annual dividend, which works out to more than a 4% yield, sells for less than 10 times earnings, has ZERO debt, and $1.3 billion ($6.58 per share) of cash.
Should you rush and buy Garmin today? You need to do your own homework, but the new generation of GPS satellites is going to help make Garmin products better, more valuable, and ultimately generate bigger profits.
Best wishes,
Tony"
Re: Taiwan's GARMIN has a dominating 60% share of U.S. GPS market
Does any one know what effect the new GPS satellite system USA is putting will have on present GPS devices.
Does any one know what effect the new GPS satellite system USA is putting will have on present GPS devices.
Martian
Senior Member
Re: Taiwan's GARMIN has a dominating 60% share of U.S. GPS market
I don't think there will be any negative effect. The United States government tends to have a policy of mandating regulations that make new technologies backward-compatible (e.g. enabling functionality of legacy systems).
My brother recently disposed of a 15-year-old GPS device. It still functioned, but it took minutes to find the necessary old satellites or replacement signals. Unless your GPS device is older than 15 years, I wouldn't worry about it.
I don't think there will be any negative effect. The United States government tends to have a policy of mandating regulations that make new technologies backward-compatible (e.g. enabling functionality of legacy systems).
My brother recently disposed of a 15-year-old GPS device. It still functioned, but it took minutes to find the necessary old satellites or replacement signals. Unless your GPS device is older than 15 years, I wouldn't worry about it.
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