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Citigroup and Central China Securities (CCS) will apply to Chinese regulators to establish an investment joint venture. Having already helped Chinese companies list in Hong Kong, Citigroup’s involvement in the country’s domestic investment banking turns out to be an important expansion.

According the new plan, Citigroup would own the maximum allowable 33% stake in the joint venture, while Central China Securities will own the majority.

Citigroup is taking an active part in China’s commercial and retail banking sectors, where it has began to provide Yuan retail banking services and has a minority stake in Shanghai Pudong Development Bank and an actual management control of Guangdong Development Bank.

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Ericsson has signed GSM expansion framework agreements with Chinese mobile operators, China Mobile and China Unicom, aiming at expanding its Global System for Mobile Communications (GSM) networks. The deals are worth about USD 1.3 billion and USD 140 million respectively.

Ericsson will be one of the main providers of core and radio network equipment as well as related technical support and services for China Mobile so as to expand GSM/GPRS coverage and capacity in 19 regions across China. Moreover, both companies have already signed the “Green Action Program”, intending to reduce energy consumption in mobile networks and carbon-dioxide emissions.

For China Unicom, Ericsson will act as the main supplier, helping expand GSM networks in 10 regions across China. What’s more, Ericsson will also offer multimedia solutions for WAP services to provide attractive multimedia services and applications.

Carl-Henric Svanberg, president and CEO of Ericsson, said they would continuously support China’s rapidly expanding telecom industry with their “global expertise and proven competence”, while the new framework agreements would further strengthen Ericsson’s position as the leading mobile communications supplier in the Chinese market.

According media report, the projects are expected to be completed in 2008.

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According to a China Ports Future Forum, the container throughput of Shanghai’s seaport is expected to see steady annual growth of about 10% until 2010, which is attributable to the booming economy in the Yangtze River Delta and preparations for the 2010 Shanghai World Expo.

Last year, container throughput at the port rose to 560 million tons, up by 4.2% compared with 2006 and the city’s cargo shipments increased by 26.15 million TEUs, overtaking Hong Kong as the world’s second-largest container seaport after Singapore.

Although China’s port industry still faces challenges, such as the shortage of large deep-water berths and land and energy as well as insufficient number of professional port pilots, container handling equipment supplier Kalmar Industries foresees plenty potential in China’s port facilities market. Ken Loh, president of its Asian operations, said construction has begun on the second phase of its Lingang plant in Shanghai. The $20-million facility will boost production capacity and help the firm to maintain its position as a market leader on the mainland.

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Founded in 1996, Beiqi Foton is one of the largest commercial vehicle producers in China, which went public on the Shanghai Stock Exchange in June 1998. Headquartered in Beijing, it has assets exceeding 7 billion yuan and more than 20,000 employees. Up until now, the company has sold more than 2 million vehicles in both the domestic and overseas markets, the brand value of which is estimated at 17.54 billion yuan. Currently, the company has mapped out an ambitious plan to improve its competitiveness at home and abroad by enhancing brand awareness, strengthening R&D and promoting international cooperation during the 11th Five-Year Plan period (2006-2010). Foton expects a sales volume of more than 1 million vehicles, 20% of which to be sold overseas, and projected income surpassing 80 billion yuan by the year 2010.

Starting its globalization strategy five years ago, its exports are now sold in West Asia, North Africa, Eastern Europe, South Asia and Southeast Asia. With its high-quality and value-for-cost products and services tailored to clients in each region, it has been widely acknowledged among overseas dealers and clients.

To further promote the globalization process, Foton continues to strengthen cooperation with foreign research institutions and companies such as AVL in Austria, the Bosch Group in Germany, Lotus Co in the UK, MIM Design in Japan and Eaton International Corp in the US.

Besides drawing upon experience of overseas partners, the company also attaches great importance to self-innovation and independent R&D. It has established an innovation approach that combines the Beiqi Foton Academy of Automobile Engineering in Beijing working in conjunction with overseas R&D centers in Japan and Europe as well as China’s Taiwan province. It also works closely with domestic and overseas universities, research institutions and suppliers to track the latest development in the global automobile industry and keep pace with current needs and trends.

The company has invested over 3 billion yuan in developing new products and building a well-structured technology innovation system and major breakthroughs have been made in core expertise. Its emission reduction laboratory became operational in August 2007 to make sure its vehicles meet international standards. It has also imported the latest technologies, techniques and equipment from foreign partners to ensure its product quality to provide customers with satisfactory products and services.

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In a sales satisfaction index (SSI) released by the Asia-Pacific branch of J. D. Power, an authoritative US researcher, Tianjin FAW was rated No 1 last September among China’s self-developed automobile brands. And a 2007 passenger car customer satisfaction survey by the China Association for Quality also ranked Tianjin FAW at the top—for its Vita model rated No 1 in its category of compact cars. Both help to demonstrate that Tianjin FAW is one of the shining stars among domestically designed and produced brands.

Tianjin FAW has followed closely the global trends to further develop its manufacturing processes and products, improve quality controls and enhance sales and service to meet international standards. And it has successfully shown its product quality to customers both at home and abroad through the three grueling cross-continental road trips across Asia, Africa, Australia and Russia on its way to the Arctic Circle. Covering nearly 60,000 km, the Vita cars have overcome the harsh challenges of deserts, high-altitude plateaus, high temperature, high humidity and extreme coldness, showing Chinese cars can also survive all kinds of sever conditions.

With over 20 years of history in developing compact cars and benefiting from successful cooperation with Toyota, the company now is capable of producing high-quality compact cars and components like engines. Furthermore, due to its competitive prices and improvements in product quality, its compact cars will definitely enjoy a promising market.

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According to the report by ISPO, Marks & Spencer—the largest retailer of clothing and food of Britain, plans to open more than 50 stores in China within the next five years. M&S said it will enter China either in Beijing or Shanghai, with more shops to follow in both cities. It looks forward to open the first store this year, and then five to ten within two years. “After that I would want to go much faster, up to 50 or so after five years.” said the CEO Sir Stuart Rose of M&S.

With 760 stores in more than 30 countries around the world, the British retailer is the largest clothing retailer in the country, as well as being a multi-billion pound food retailer. Since 2000, it has expanded into other ranges such as home wares and furniture.

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American Express, the world leader in traveler’s checks, is working with Chinese travel agencies to promote the use of travel’s checks in China.

“Traveler’s checks have gained some popularity in China. However, they are not as popular as they should be simply because not many Chinese are familiar with them,” said Diannie Tsai, vice-president and general manager of American Express’s global traveler’s checks and prepaid services division, Greater China. “American Express has partnered with China International Travel Service for promotional purposes and is seeking opportunities to forge cooperation with other travel or overseas educational agencies.”

Altogether 40.95 million Chinese went overseas in 2007, with an average expenditure of $928. And the number is expected to reach 44.8 million this year. China has already overtaken Japan to become the top country in Asia regarding outbound tourists, the number of which is anticipated to be the largest in the world by the year 2020.

Traveler’s checks are available in 7 currencies and 28 denominations and can be cashed through more than 120,000 service outlets around the globe. They do not expire and are refundable when lost or stolen. The convenience and safety they provide will ensure them a promising market among Chinese tourists, students and businessmen.

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As the world’s second largest PC maker, Dell Inc is seeking strategic partners in China to launch a direct commercial product partnership plan.

It is expected to enroll 1000 partners in China by the end of this year as a new way of entering the country’s huge and profitable PC market. There are two different kinds of partners that Dell will enlist in the country, namely industry authorization partners and commercial product franchise dealers. The purpose of this plan is to increase Dell’s accessibility into small and medium-sized companies in smaller Chinese cities. Some of the commercial partners will sell Dell hardware to end-users, while others will offer hardware and support services.

The president of Dell Greater China was quoted as saying that the commercial product partnership plan was an important part of Dell’s long-term strategy in China.

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China Business, China Business News Dell, IT, partnership, PC market, retail

European plane maker Airbus plans to set up a joint venture with AVIC Ⅱto make aircraft components, hoping to gain a larger share in the world’s fastest growing aircraft market.

China’s passenger traffic is expected to grow fivefold and passenger aircraft will triple to around 4,000 on the mainland. Besides, freighter traffic is projected to grow six fold, creating a demand for 130 new freighters over the next 20 years, compared with 45 in 2007. Recognizing the upcoming boom for the aviation sector and trying to gain an edge over its competitors, Airbus has agreed to assemble its single-aisle model Airbus 320 in China and expects to use the joint venture to produce composite material parts for its Airbus A350 model in partnership with AVIC Ⅱ. It’s also trying to sell more of its super jumbo A 380 in China as it expects carriers to opt for much larger aircraft in the future for flights between mega cities.

“Our aim is to reach 50% (of the market share) in 2011,” said John Leahy, chief operating officer, customers of Airbus. “In the next 20 years, the greatest demand for passenger aircraft will come from China, second only to the US.”

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UBS, the Swiss bank will launch a new fund to invest USD 1 billion into the Chinese property market with Gemdale Corp, a Shanghai-listed developer.

According to Chen Lijian—the Head of China Real Estate for UBS Global Asset Management, UBS will focus on residential and also hopes to launch a vehicle. The bank will raise USD 300 million in equity, which will give it USD 1 billion of buying power.

Following Morgan Stanley, Deutsche Bank and ING Real Estate that raised several hundreds of millions of dollars for investment in Chinese housing last year, UBS wants to write off more than USD 18 billion on American real estate market due to the ongoing sub-prime crisis.

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