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", by Gady A. Epstein and Qu Wei,
Forbes, Vol. 181 No. 10, 19 May, 2008 (via LexisNexis News):
Textile companies once fled New England for the South. The same sort of thing is happening in China, and for the same reasons.
Almost 100 miles from a small airport in one direction and more than 200 miles from the nearest seaport in the other, Longnan County in China's landlocked Jiangxi Province would seem an odd place to build a factory. But on what was farmland a decade ago, one of the world's largest bra makers has more than 3,000 workers producing a quarter of its global production.
Exporters in southern China's Pearl River Delta are grappling with higher labor and land costs and often looking to India, Vietnam and other frontiers. But for its next expansion later this year, Hong Kong's Top Form International will likely push even deeper into China. Its success in Longnan shows why others may be wise to follow suit. "Manufacturers have to keep looking further inland," says Michael J. Austin, Top Form's chief financial officer. "We've got to go where there's an abundant supply of labor at a reasonable price."
More at the link. The migration of low-value goods manufacturing to the interior is picking up its pace, even as value-added industries start to come into their own in older, more expensive industrial regions.
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Lloyd's List, Special Report - Classification Societies, Wednesday, May 7, 2008 (via LexisNexis News):
"Because shipbuilding in China is still relatively new, many of the yards and our shipowner clients really look to us for guidance, said ABS's general manager for China, Wing Kee Ho. "The biggest and best of China's shipyards have come a very long way in a remarkably short time and now have systems and personnel in place that are absolutely world class.
More at the link. While I would not characterize shipbuilding as being a "new" industry in China, most of its shipyards certaintly are so.
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", by Bien Perez, Frederick Yeung, Jeff Pao and Sherman So,
South China Morning Post, Tuesday, May 6, 2008 (via LexisNexis News):
Key Southeast Asian markets are projected to take a greater share of investments than China in contract electronics manufacturing over the next decade, according to research firms Fusion Consulting and iSuppli Corp.
"Expect to see China losing share in volume electronics production to Southeast Asia, with significant investments by the large multinationals in favour of countries like Vietnam," said Reid Rasmussen, the head of information and communications technologies practice at Fusion.
More at the link. We'll see if this happens, and if so, to what extent and by what such production may be replaced by.
"
", by Oh Boon Ping,
The Business Times, Special Focus, Tuesday, 6 May, 2008 (via LexisNexis News):
SUNVIC Chemical Holdings aims to hit a net profit of 300 million yuan ($58S.3 million), plus sales of three billion yuan at the end of this year.
Based in Jiangsu, China, the firm recently reported a near eight times jump in net profit to 73.7 million yuan, while sales doubled to 646.3 million yuan for the three months ended March 31.
More at the link. Impressive performance.
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Lloyd's List, Tuesday, May 6, 2008 (via LexisNexis News):
A "BIDDING war" to deliver "scarce" commodities will see bulk carrier freight rates smash last year's records by as early as October.
A leading London broker has forecast accelerating iron ore trades and coal shortages in China will help drive time charter earnings to a new peak within the next seven months.
ICAP Hyde signalled the second consecutive year of record-breaking rates for the estimated global fleet of more than 6,000 bulk carriers, at an industry forum presentation last week.
More at the link. A crash in the shipping industry continues to be predicted; so far it has not transpired, nor is one clearly underway or even apparently beginnning. This subject will only reveal itself over the medium-term.
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", by Ted Plafker,
The International Herald Tribune, Special Report, Monday, May 5, 2008 (via LexisNexis News):
Inflation in China is at its highest level in 12 years and shows no sign of easing soon. The country's domestic stock markets have suffered a drastic downturn. So has the world's largest economy, the United States: And while analysts and officials of the administration of President George W. Bush quibble over whether the U.S. economy is already in recession or merely teetering near it, there is a very real risk it will drag others down with it.
Even if China does not get dragged down directly, it could suffer heavily if demand slows in its many vital export markets. And there are still more variables for Beijing to ponder.
More at the link. Indeed, the article repeats the many areas in and possibilities for, economic disruption within China. The almost peculiar relationship of the Government with respect to economic performance - and especially popular expectations thereof - leaves perhaps rather less room for error than what many other countries might enjoy - though are certainly not immune from themselves.
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", by Wang Yanlin,
Shanghai Daily.com, Wednesday, 7 May, 2008:
CHINA'S economy will likely grow 10.8 percent in the second quarter, a 0.2- percentage-point climb from that in the first three months, the State Information Center forecast in a report published yesterday.
More at the link. No obvious signs of economic weakness here, though; 10.8% GDP growth in a single quarter is stunning. Inflation will remain a major problem, but abating slightly.
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English eastday.com,
6/5/2008:
Net profits for China's securities firms increased almost four-fold to hit 137.65 billion yuan (US$19.7 billion) in 2007, according to statistics from Securities Association of China (SAC).
SAC's 106 member firms recorded a total revenue of 329.9 billion yuan, an increase of 258.74 billion yuan from a year ago.
Their total assets valued 1,897.3 billion yuan, representing an increase of 1.72 times, or 1,200 billion yuan, over that of in 2006.
More at the link. More incredible profit increases.
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", by Katherine Ng,
The Standard, Wednesday, May 07, 2008:
China's economy will not be affected by the global slowdown, and a rebound to 10.8 percent growth is expected in the second quarter, from 10.6 percent in the first quarter, the State Information Center said yesterday.
Inflation will come down to 7.5 percent, from 8 percent in the first three months, but the producer price index will remain high at 8.1 percent for April to June, economists at the think-tank wrote in the state-run China Securities Journal yesterday.
More at the link. This more or less repeats the
Shanghai Daily's report on Q2 economic performance.
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", by
Li Zengxin, Caijing Magazine, English Edition, 05-05:
Clouds began to part when the National Bureau of Statistics released first-quarter figures on April 16, but policy-makers have more concerns to deal with. Inflation is hitting new heights which is conjoined with an economic growth prospect full of uncertainties.
The March consumer price index (CPI) grew 8.3 percent, driving first quarter inflation to 8 percent, while the gross domestic product (GDP) growth slowed to 10.6 percent. All this leads to questions that need to be answered. Will CPI growth turn sluggish? What kind of monetary instruments will the central bank exercise? How to balance the battle against inflation and an economic slowdown at the same time?
More at the link. Caijing is more cautious than the papers are, and predicts that the PBOC and other Government organs may resort to further interest rate increases as well as requiring the accumulation of ever-greater reserves by banks. Inflation is expected to cross over from the food to the service sectors, and "hot money" will continue to drive the yuan's increase in value.
; and I see old Fab Max