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8. June 2016

State Council’s soil pollution plan faces uphill struggle

10 years in the making, China’s first road map for tackling soil pollution, has finally been released. For a nation embedded in a history of agriculture, soil pollution, which affects about 20% of the nation’s farmland, has long been neglected.  But is this too little too late?
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6. June 2016

GM in biggest Chinese recall in history

Following complaints about engine damage SAIC Motor has decided to recall the vehicles citing concerns that their engine crankcase valves risk corrosion. The recall is the latest in a string (see earlier Annex Asia articles), but this is the largest single recall in China’s history.
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1. June 2016

Recent data shows stall amid Chinese economic activity

The publication of May’s industrial and commercial information shows mixed signs about recovery in the world’s second-largest economy.
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25. May 2016

Rising Prices Affecting Consumption of Chinese Middle Class.

Recent reports about China’s economy have shown how the rising cost of life is affecting Chinese society. Despite comparatively higher incomes, the Chinese people are unsatisfied with the modern way of life. A decelerating economy in putting higher pressure on a class reticent to lose its privileges, hence forcing them to cut back on sumptuary consumption.

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16. May 2016

New Opportunities and Challenges for Latin American Investments in China.

Much of the comparative edge that foreign companies used to have in the 90s and early 2000s is not there anymore. Leading Chinese companies have become increasingly more competitive and innovative, many of them with a global presence. Hence, the rules of the games have changed, and companies have to adapt.

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11. May 2016

Chinese quality control for toys improving, industry association official says

The toy market of the European Union is dominated by goods made in China. "Currently, 80 percent toys in the EU market are made in China. The deep market penetration shows that Chinese products are very popular among EU customers," said Lin Feng, secretary general of the Guangdong Toy Association. 
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9. May 2016

Nissan hit by recall of 58,000 vehicles in China.

There has been a long line of car recalls in China in recent years. Last year, nearly a million vehicles, imported or locally produced, were recalled due to safety issues and defects.
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2. May 2016

China’s Business Activity Stabilising at Slower Pace

Despite financial stimulation, China’s publishing managers’ index (PMI) was not up to expectations. Official data on business activity was reported at 50.1 in April, barely above the 50-point mark that separates expansion from contraction.
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29. April 2016

Trump’s Daughter worries about a different burn in China

Trump’s daughter Ivanka has her name attached to the brand of scarves being manufactured in China. The U.S. Consumer Product Safety Commission (CPSC) has announced that 20,000 scarves are being recalled for failing to meet the Federal Flammability Standard.
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25. April 2016

Chinese Steel Industry Putting Pressure on International Markets

China is one of the biggest steel producers in the world. By 2014, their output reached 822.7 million tonnes, an exponential growth from 128.5 million tonnes of the year 2000. Such a large production was fundamental requirement behind the country’s double-digit economic growth over the past decades. However, the restructuring of China’s economy has induced its slowdown, hence decreasing demand for steel.
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15. April 2016

Popular Chinese Medicine Supplier Shut over Safety Concerns

After last month’s scandal with unlicensed vaccine dealer, which ended up punishment of over 350 officials, China Food and Drug Administration (CFDA) conducts another executive decision to protect consumers by banning potentially harmful goods from the market.
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13. April 2016

Chinese Government Explains Economic Change with Cartoons

It seems to be a much preferred tactic of the new leadership. The use of cartoon videos to explain policies and changes has become normal under Xi Jinping. The new tactic not only serves as a strong promoter of Chinese animation, but also seems to be a rather effective way to communicate government initiatives among the people.

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5. April 2016

China destroys 35 tons of Philippine bananas

Behind the news grabbing headlines of the South China Sea, it’s easy to see that economic ties between Asian states are still the centerpieces of the region's activities.
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4. April 2016

Maserati the latest to suffer from recalls

Chinese State-owned media has stated that around 21,000 Maserati’s are being recalled due to a defective design aspect that could increase chances of collision. The Italian luxury cars in question have issues with floor mats that could wedge the accelerator pedal down, meaning slowing the car becomes difficult to impossible.
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28. March 2016

Spanish lemon shipment to China leaves sour taste, as cargo deemed illegal

A fall in citrus crop production for the past two years in China has bestowedopportunity upon foreign producers capable of increasing shipments to China.Local production has been affected by hurricanes in the south of the country, andcitrus greening disease in other locations.

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23. March 2016

Vaccines sold illegally by mother-daughter duo in 18 provinces

Chinese authorities have arrested a mother and her daughter for selling almost 90 million USD (570 million RMB) worth of illegal vaccines across 20 or more provinces, municipalities and autonomous regions.
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21. March 2016

Consumer Rights Day Gala Targets Problematic Online Businesses

March 15 is designated as the World Consumer Rights Day (in China, dubbed as 3.15) and ever since 1991 it is one of the least favorite day in the year for senior executives of service companies. Every year, China Central Television puts on 3.15 gala show featuring findings of unfair conduct of the companies, all for the sake of protecting the consumers.
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16. March 2016

China’s NPC Approves Five-Year Plan, Premier Li Rejects Possibility of Hard Landing

China’s top legislative meeting has come to an end. The National People’s Congress closed with the adoption of the 13th Five-Year Plan, which establishes the main trends for social, economic and political development until 2020.
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14. March 2016

Renminbi Strikes Back: Chinese currency shows positive response to policy efforts

China’s Yuan policies seem to be fruitful as the currency reaches to its highest point next to the dollar. In less than a month, the Chinese government has managed to collect gains for its currency in the domestic market, and score high ever since last December.
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10. March 2016

February trade data lowest since 2009

Chinese exports registered a 25.4% fall compared to next year. Similarly, imports also decreased in a 13,8%. Information during February could reflect certain distortions due to Chinese New Year celebrations, however, the tendency has been clear during the first two months of 2016. In this period, exports went down 17,8%, and imports fell 16,7% compared to last year.
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7. March 2016

Changsha’s Zoomlion cranes its neck into U.S. territory

China’s heavy machinery manufacturer Zoomlion (Changsha Zoomlion Heavy Industry Science and Technology Development Co. Ltd.) is pushing ahead in efforts to acquire Terex Corporation, a US-Based construction crane maker.
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29. February 2016

Economic Slowdown Taking its First Victims: Mass layoffs announced in China

The transition far from the previous model of economic growth is motivating authorities to work on the efficiency of the industrial sector. Last week, the Ministry for Human Resources announced that the country expected to lay off 1.8 million workers in the coal and steel industries, corresponding to about 15 per cent of the sector’s workforce.

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22. February 2016

The Trend of Shifting from Mass Production towards High Quality Products

Last week, South China Morning Post featured an interview with Nick Chan Ying-kit, Managing Director of a clothing manufacturer based (mostly) in South China’s province of Guangdong. The company his father started 30 years ago in Hong Kong has now over 1500 employees. In the interview, Mr. Chan Ying-kit touches upon two trends that are or will be more and more ordinary features of manufacturing in China in the foreseeable future.

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17. February 2016

Credit Boom a Good Sign for Chinese Economy

Chinese banks have presented a record score of credits during January 2016.  In total, 2.52 billion yuan (US$386,000 millions) were delivered as loans by Chinese financial institutions, an increase of 71% from compared to January last year.

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15. February 2016

Tianjin authorities to move 10 chemical plants after blast

Chinese authorities are known for their pragmatism, and it seems that they have learned their lesson after last year’s explosion of a chemical plant in the city of Tianjin.

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13. February 2016

Don’t let the Chinese New Year Catch you by Surprise

This year the transition from the year of the goat to the year of the monkey will start on Monday, February 8, but in the week before is important for preparations and start of the annual massive migration wave.

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9. February 2016

Chinese Consumer Confidence Helps the Services Sector

A new report released by the company Nielsen indicates that despite downward pressures on the economy, in 2015 Chinese consumers’ willingness to spend reached the four-year peak.

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2. February 2016

China's PMI keeps falling, is it time to freak out?

China's PMI is falling. Both manufacturing and service sector marked low during January 2016. Is China losing control of its economic slowdown?

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11. January 2016

‘Brand Pirates’, the New Tendency in China

Last week several outlets reported about the case of Australian dairy brand Farmer’s Brown. This small company planned to sell their products in Australian and Chinese supermarkets. After a long time of hard work, they managed to register their trademark in Australia, but surprisingly they found that it was already registered by another party in China.

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30. December 2015

Shenzhen landslide stirs concerns over similar incidents

The deadly landslide that buried part of the city of Shenzhen (Guangdong province, south China) beneath a layer of red mud on Monday may be a hinting at something unprecedented, yet foreseeable - dangerous consequences of China’s rapid urban explosion.

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22. December 2015

Alibaba Group bidding for Hong Kong Media Outlets

Alibaba Group's move bidding for media assets of the SCMP group has been highly valued by Beijing. Respected Hong Kong's English-language newspaper, South China Morning Post, is one of the outlets to be acquired.

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18. December 2015

Data and New Technologies Help Curb Pollution

On December 7, for the first time ever Chinese authorities issued red alert related to air pollution in Northern China. This decision has come after in late November; the air pollution exceeded the level of 500 micrograms per cubic meter while the limit of particles not harmful to health is 50 micrograms per cubic meter or less. In addition, the red alert came in the midst of the 2015 United Nations Climate Change Conference and in the midst of a period when Chinese government identifies air pollution as one of the most severe problems of today’s China and recognizes it as one of its major objectives.

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15. December 2015

Chinese Yuan Hit It Big: IMF includes it into basket of currencies

Beginning 1 October 2016, China's Renminbi (RMB) will be part of the International Monetary Fund's (IMF) basket of currencies. The currency will join the US Dollar, Euro, Sterling Pound, and the Yen in the position of international reserve currency, with important implications for global economy.

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9. December 2015

The Fight Against Cyber Security as a Threat to Foreign IT Firms

Just as anywhere in the world, also in China, companies are facing the threat of cyber attacks. Companies are increasingly suffering breaches of data, which may often lead to the leakage of customer information, outage of service, and perhaps even the possibility of litigation.

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1. December 2015

Alarming Number of People in China Don’t Know What They Drink

China’s water resources are increasingly under threat as the country’s economic growth outpaces supply of fresh water. The country’s unprecedented growth has resulted in serious water pollution. Some studies suggest that currently, only half of urban water supplies meet national quality standards.

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24. November 2015

Apple to Implement Mobile Payment Service in China

Apple Inc. will kick-off its Apple Pay electronic payment system in China. The launch will take place in early February, and will work with the country’s big four state-run banks (Industrial & Commercial Bank of China, China Construction Bank, Agricultural Bank of China, and Bank of China).

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19. November 2015

China’s Pharma Holdings Inc showcases costs of lax quality control

China Pharma Holdings Inc. has suffered a third quarter blowout as a result of new GMP standards for quality control. The company is listed on the NYSE with a fully integrated specialty subsidiary operating in China. 

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12. November 2015

Heating Season Start in NE China Brings Pollution Levels to All Time High

Last weekend, many cities in the northeast corner of China (also known as Dongbei, or provinces Liaoning, Jilin and Heilongjiang) found themselves imprisoned in impenetrable haze. Such days when it is not possible to see the sun, exercise or just open your windows are nothing unusual for residents in any of first-, second-, and third-tier cities in China. However, what people woke up to in the city of Shenyang exceeded even the most pessimist forecasts.

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9. November 2015

Chinese buyers not filling trade gap: Slowdown might be harder than expected.

China has tried to move form a heavily export-based economy towards a more consumer-base one. But the transformation is not coming easy. Trade numbers are changing faster than China’s neo-consumerist culture.

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6. November 2015

After Scandals, Yum Brands is to Split its China Business

For a long time, KFC and Pizza Hut (owned by Yum Brands Inc.) have been amongst the most successful foreign businesses in China. This Kentucky based group entered China in the late 1980s through their KFC brand. Back in the 1987, it was one of the first foreign fast-food chains to set up operations in the PRC.

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3. November 2015

Merkel’s visit touts industrial strengths as Airbus lands massive deal

In the wake of buttressing Sino-British ties, European countries have begun to jostle to attract China’s cheque book. It comes as no surprise that Germany has arrived first in best-dressed, already well-established as China’s largest European trading partner. French President Francois Hollande is scheduled to visit next week, signaling a pecking order of state relations.

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29. October 2015

Lego’s Successful Bet on China

As the brand becomes popular in China, the more pressure it is facing from competitor who in many cases build identical-looking bricks (also known as Lego clones). Lego’s best strategy may be to tout its high manufacturing standards as most Chinese toy factories are focused on exporting low-cost products rather than higher-quality toys for domestic consumption.

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22. October 2015

China singularity for Ford JV fuel safety lapse

China’s national quality watchdog last Friday announced the recall of almost 220,000 Kuga sports-utility vehicles citing potential fuel leakages. 

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16. October 2015

Int’l trade going down, domestic prices going up: The roller-coaster of China’s economy.

The fall on imports and exports will clearly impact foreign investors, especially rentier economies such as those in Latin America and the Caribbean. If the situation is not managed wisely, it will affect domestic prices, generating social convulsion.

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14. October 2015

Volkswagen; now under the Chinese spotlight

In the coming months, even if the Chinese customers stay faithful to Volkswagen and other foreign carmakers, the domestic regulators will have to force the carmakers spend more on testing, certifications and quality control instead of investing into new production facilities or technologies.

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9. October 2015

China’s slowdown does not mean negative news, IMF reports

China will grow at a 6.8% in 2015 and 6.3% in 2016, according to the forecast of the International Monetary Fund (IMF) in October. This is slightly lower to expectations by Chinese government, but it does not mean 'game over'.

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7. October 2015

China revises its Food Safety Laws (FSL) for the first time in six years

For China, quality control continues to be a pressing issue at the forefront of legislative and commercial concerns.

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30. September 2015

An Early September China Update – An Optimistic Venture-Centric Perspective

It is easy to get distracted by the trees in the forest – especially when one is always looking for the “half-empty glass” types of trees. In the following, I’m going to take a more optimistic view of the same Chinese trees and forest from a “half-full” perspective.

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29. September 2015

Although China starts to innovate for the world, IPR problems still remain a concern

While Chinese government is making slow progress in this field, it is best to take your own precautions by protecting IPR through contractual provisions, holding on to your IPR and business secrets and especially using due diligence in the process of selecting the supplier.

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21. September 2015

Fallout from Tianjin reaches national nuclear assets

In the wake of the chemical warehouse explosion in Tianjin, which claimed the lives of more than 160 people, China’s nuclear sector is set to undergo stringent inspections.

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17. September 2015

“My house, my rules” China imposes pledge to US tech companies.

The Chinese government is asking some tech companies from the United States to pledge their commitment to contentious policies that could require them to turn user’s private information over to the government.

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16. September 2015

Central European countries looking to reduce trade imbalance with China

In April 2013, president Xi Jinping estimated that over the next five years, China’s imports will reach 10 trillion USD. This will create opportunity for Central European entrepreneurs interested in serving the thriving middle class in China.Nevertheless, accessing the Chinese market remains difficult for foreign entities and joint-ventures (JVs) of foreign and domestic entity are the most common and easiest way of entering the market and quality assurance of your Chinese partner (or supplier company) and lack of due diligence is something that can have devastating effect on your otherwise ambitious and promising project.

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11. September 2015

My Quality vs. Your Quality, the eternal dilemma.

3 solutions to 3 of the most common problems when manufacturing in China. Have you experienced any of these issues?

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8. September 2015

President Xi’s Hopes for Safer Food

Chinese consumers have no choice but to be extremely cautious with what they consume. Information gets around quickly and this type of bad publicity can ruin a successful company’s reputation, often in an irreversible way.

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3. September 2015

Déjà vu in Dongying

Without real oversight and tightening the grip on lax standards, the string of explosions in industrial zones may only unravel to new lengths. Ensuring safety of both staff and the public rests solely in correct quality control and supervision.

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31. August 2015

Decisive Measures Taken in the Wake of Tianjin’s Explosions.

Chinese authorities have been busy planning and implanting important measures to avoid a new tragedy. The Tianjin explosions killed over 150 people, and several remain missing.

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27. August 2015

Chinese stock plunge diverting attention from manufacturing woes

As the economy continues to be pushed toward a consumption-based correction path, manufacturing and exports remain a key concern. Those in managerial positions can only feel safe, effective and at ease knowing quality controls and certifications are up to date.

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24. August 2015

Commission Established for Hong Kong Lead Scare

At least 10 estates in Hong Kong have now been confirmed to be affected by heavy metal water contamination. Particularly worrying are the excessive levels of lead. What is needed, not only in Hong Kong but nationwide are a revamp of qualification systems and perseverance in quality control.

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19. August 2015

Tighter requirements and inspection a likely outcome of Tianjin Blast

Being on top and up to date with the regulations is key and after the tragedy in Tianjin, more frequent and more thorough inspections by the authorities will be just a logical response.

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17. August 2015

Tianjin Blast Kills Over 100: Who is to Blame?

In less than 30 seconds two explosions shook Tianjin on 12 August. The massive blasts came from Binhai District, right by the port, where hills of containers are lined up with all kinds of products. There is not yet a clear statement about what provoked the initial fire, but initial reports have been talking about an industrial accident

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12. August 2015

Anti-graft Campaign Uncovers First ‘Tiger’ from MEP

The revelations reveal major concerns in the processes for environmental impact assessments (EIAs) and the general dangers of regulatory failures and corruption.

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11. August 2015

Bold Governmental Plans recognize Quality as Crucial Competitive Factor

Made in China 2025 means a lot of opportunities for both domestic and foreign investment in manufacturing. However, it brings about the vision that cutting corners for profit margins will become a thing of the past in China. Instead, adherence to standards and investment to quality assurance will be a decisive factor in beating your competitors.

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7. August 2015

Another Day, Another Quality Control Scandal in China

Three automatic escalator incidents reported in China within a month. Who is to blame and what's the role of private Quality Control enterprises?

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5. August 2015

Quality Control Makes Your Product More Valuable

What are the consequences of avoiding investment on inspections?

Make a safer and smarter use of your money!  Investing in quality controls through a trustworthy company will increase the profitability of your products.

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6. February 2015

Everything has a price and cheap isn’t always it

Doing business in Asia for many is appealing because of the low cost and high profit margins that any enterprise or entrepreneurial adventure can have. But just as the products that come out of the many cities known as the epicenters of business like Guangzhou or Shenzhen, cheap doesn’t mean quality.

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2. February 2015


Get used to “create in China”. Since Xi Jinping took office, China has started to see some big changes. It is not only the fight against corruption, nor the further institutionalisation of the rule of law, but also the rearrangement of the productive structure. Just like President Xi has expressed it in several occasions, China is transiting from the “made in China” to “created in China”.

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Tiring Working Conditions
5. January 2015

Inspections and Ethics

The issue of ethics once again has made headlines with companies like Apple being under fired for the working conditions in their supplier factories.  Undercover filmmakers pretending to be workers in a factory making Apple products in China had to work up to 16 hours a day and as many as 18 days in a row, according to an investigation by BBC Panorama.

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Food safety
18. December 2014

Stronger Food Safety a Must in China

As the year 2014 comes to an end, several scandals rocked China in the food safety sector this year. These scandals, impacting the view and confidence of how consumers see their food quality being inspected and controlled has brought many Chinese citizens to be first hand witnesses on the lack of control in this sector. 

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The four most common frauds in China
11. December 2014

The four most common frauds in China

China, known as the world's factory for many reasons, one of those being because all of the world's biggest players have established their factories there because of the low production cost. However, as individuals continue to venture independently seeking the gold mine that is China they become victims of scams. Anyone looking for a Chinese long-distance provider without a representative in that country or without being knowledgeable is an easy prey so watch out!

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China Japan
19. November 2014

China y Japón acercarán posiciones en el APEC

El Foro de Cooperación Económica Asia - Pacífico (APEC) será el lugar elegido para que China y Japón acerquen posiciones. Será la primera reunión tras varios años de tensiones entre los gobiernos de ambos países. Una prueba más de que China es consciente de la importancia de un clima de tranquilidad y no beligerancia para conseguir situarse como un firme lider mundial.

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China IPR
12. November 2014

Los derechos de propiedad intelectual mejorarán en China

China es un país que se ha relacionado de forma constante con las copias baratas de otros productos de marca. Esto lógicamente supone una vuleneración total a los derechos de propiedad intelectual. Esta negativa imagen provocaba que la innovación por parte de empresas que deciden invertir en China fuera mucho menor que en otros países ante la desprotección que sentían por la facilidad para copair sus productos. Por ello, el Gobierno Chino ya trabaja a fondo para mejorar los derechos de propiedad intelectual y elaborar un marco jurídico mucho más estable.

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China Transport
5. November 2014

China invertirá miles de millones en modernizar su red de transportes y comunicaciones

Si hace poco se hablaba de la posibilidad de que China estrechara lazos con Estados Unidos mediante la construcción de un línea ferroviaria que conectara ambos países, ahora se afirma que el verdadero plan del ejecutivo chino es el de crear un fondo de 16.300 millones de dólares con el fin de financiar la construcción de infraestructuras que permitan dinamizar el comercio internacional.

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29. October 2014

La producción de acero en China hunde los precios

El sector de la siderurgia es uno de los que más peso tienen dentro de la economía china. De hecho, su importancia es tal que desde el propio Gobierno Chino se han dedicado esfuerzos para intentar minimizar su impacto a nivel económico con el objetivo de dar salida al exceso de oferta en el mercado.

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21. October 2014

China capitaneará el nuevo orden mundial

Según un informe del FMI se está configurando un nuevo orden mundial en el que Estados Unidos ya no tiene un claro liderazgo, ya que China lo supera en su PIB en PPA. En este nuevo orden mundial países como Rusia o China comienzan a tener un peso importante.

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China bank
14. October 2014

China dirigirá el banco de desarrollo asiático

China sigue dando pasos agigantados para convertirse en la primera potencia económica del mundo. Consciente de que tener un PIB superior al resto no es suficiente, el país asiático está desarrollando otras tareas que ayuden a su posicionamiento estratégico en el mundo. Una prueba de estos actos son los que hemos conocido esta semana y que anuncian la creación de un banco de desarrollo en Asia dirigido y organizado por China.

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China gas
7. October 2014

Aumenta la producción de petróleo y gas natural en China

La agencia Xinhua es la encargada de presentar los datos de la Comisión Nacional de Desarrollo y Reforma entre los cuales se puede destacar un aumento de la producción de petróleo crudo en el gigante asiático. Este aumento supone un crecimiento interanual de un 0,4%, lo que supone que durante el último trimestre se han conseguido alcanzar los 155,84 millones de toneladas de petróleo crudo producido.

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PIB China
30. September 2014

El PIB de China crece un 7,3% en el tercer trimestre

El dato de crecimiento de la economía china en el tercer trimestre de este año se ha situado por encima de la expectativa del 7,2% marcada para este mismo periodo. A pesar de haber superado las previsiones, esta cifra del PIB es la más baja desde el primer trimestre del año 2009.

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