Trade between Germany and Guangdong province in China, which is larger that the trade between Germany and India, is expected to hit a record high this year, said Michael Schaefer, German ambassador to China. There should be more room for a growth of the trade between Germany and Guangdong considering the economic strength of the province. According to Liu Xiaojie, deputy secretary general of Guangdong provincial government, trade between Guangdong and Germany hit $16 billion last year, which represented a 15 percent growth from the previous year. He also said, by then, German businesses like Siemens, Allianz, Osram, Bosch and Henkel had invested $1.5 billion in 296 projects.

Highlight
Sustainable urban development is a pressing issue in Guangdong, home to a number of rapidly expanding and populous cities, said Ammon. “Cultural show now in Guangdong is to jointly seek solutions to the major challenges brought by urbanization.” During the course of its development, Guangdong needs to import a huge amount of resources and is under great environmental pressure, Liu said.

The cultural festival between September 27 and mid-December, featuring 14 cultural, 15 educational and technological and 11 environmental and archeological events and seven business forums, Liu said. The Guangzhou stop follows those in Nanjing, Jiangsu province and Chongqing municipality.

During the stop in Chongqing, the event was accompanied by an extensive cultural and stage program. Furthermore, some German firms, including those engaged in insurance, environmental technology and logistics, considered investing in the city, Schaefer said. As Chongqing aims to find economic and ecological balance, archeological, design and city planning firms found opportunities in the city.

Under the joint effort of German Federal President Horst Koehler and Chinese President Hu Jintao, the traveling festival was officially launched by German Chancellor Angela Merkel in Nanjing in August. Over the three-year campaign, Germany will present “City in Motion”, which is business, culture and social related. Its central themes followed the example of the motto “Better City—Better Life” of the Expo 2010, where the event series will culminate.

Are you interested in the business opportunities in China?

China is one of the world’s great growth markets and is likely to be for many years to come. Foreign companies often face difficulties in assessing Chinese market demand and enacting effective strategies because of the language barriers, culture differences, and high expense.

BPOVIA is the leading virtual assistant and Knowledge process outsourcing (KPO) service provider in China. BPOVIA is the only virtual assistant company ever been nominated for the prestigious “Red Herring 100 Asia” Awards 2008. Combines international perspective with local know-how, BPOVIA can provide our clients China business development service and help our clients doing successful business in China.

Please visit http://www.BPOVIA.com/ for details about our service.

Compared with 2.4 percentage points in the nine months last year, goods and services trade contributed 1.2 percentage points to the country’s 9.9 percent GDP growth, said NBS spokesman Liu Xiaochao in a press conference yesterday.

Since last year, a large number of domestic exporters have gone bankrupt because the world economic slowdown, the appreciation of yuan, rising costs as well as tightened credit. The export growth of China in the first nine months dropped 4.8 percentage points year-on-year. Analysts said this slow growth will not only affect the Chinese economic, but also its neighboring economics. “With export orders declining, China will reduce its imports… This will create an impact on the rest of the Asian-Pacific region,” said Sherman Chan, researcher with Moody’s Economy.com

For instance, Australia man face a dramatically slowdown in resource exports, which is its major growth engine in recent years. Japan, South Korea, and the electronic-specializing Association in South Asia will feel the pressure of economy, too.

“The end of China’s dream run will mark the end of Asia Pacific boom,” Chan said.

The state Council has promised to raise the export rebate for textile, apparel and mechanical and electrical equipment exporters to stabilize the trade growth. According to Li Mingxu, it has been much clearer for the policy direction and the government will support the low-end manufacturing sectors if their profit margins are low. However, China’s trade growth would probably drop further at least in the first half of next year in spite of the help from government, according to Liu Jian, researcher with the Chinese Academy of International Trade and Economic Cooperation, which is affiliated to the Ministry of Commerce.

Many economists and international agencies have forecast that the US and European economies would only get out of the crisis in the second half of next year. Past experience tells us that government support is limited to such a situation. That is why the actual improvement of external environment is important to the economy, Li Jian said.

Are you interested in the business opportunities in China?

China is one of the world’s great growth markets and is likely to be for many years to come. Foreign companies often face difficulties in assessing Chinese market demand and enacting effective strategies because of the language barriers, culture differences, and high expense.

BPOVIA is the leading virtual assistant and Knowledge process outsourcing (KPO) service provider in China. BPOVIA is the only virtual assistant company ever been nominated for the prestigious “Red Herring 100 Asia” Awards 2008. Combines international perspective with local know-how, BPOVIA can provide our clients China business development service and help our clients doing successful business in China.

Please visit http://www.BPOVIA.com/ for details about our service.

The country may bear more uncertainties in export and import business because of the worsening situation in the international market.

In the first eight months of the year, China’s exports increased to $937.7 billion by 22.4 percent and 3.3 percent less than last year. Imports were up to 785.7 billion by 30 percent, 10.4 percent than 2007.

Owing to the growth in exports decreasing while imports were increasing, the country’s trade surplus decreased to $152 billion, $10 billion less than the year 2007.

At the same time, China’s exports to U.S.A. just increased by 10.6 percent, dropping 6.1 percent from a year earlier, while shipments to Europe and Iraq increased 26.3 percent and 15.6 percent, down 5 percent and 3.9 percent year-on-year respectively.

China’s export growth has been slowed by weakening demand in major markets such as the US because the global economic problems are continuing.

According to estimation, every 1 percent decline in US GDP would lead to a 4.75 percent drop in China’s export growth rate.

Based on the procurement managers’ index (PMI) declared by the China Federation of Logistics and Purchasing, the sub-index for new export orders was 48.4 points in September, dropping 2.3 points from a month earlier, while the purchasing sub-index plunged to 44.7 points, the first time it fell below 50 since 2006.

All the above points showed that foreign demand was declining and companies depend on exports were enduring the force of foreign imports.

Since the latter half of 2007, exporters have shown their discretion in accepting foreign orders as RMB has continued to appreciate. The value of RMB appreciated more than 6 percent in 2007.

Lots of export enterprises changed long-term orders into short-term ones, and large orders into smaller ones to avoid the risk of exchange rate fluctuations.

Exporters’ production costs were increased because of global inflationary pressures which pushing up the price of raw materials on the international market.

In recent years, the price of primary products such as crude oil, coal, steel and agricultural products have risen rapidly on both the international and domestic markets.

In the first eight months of this year, the cost of China’s imported iron ore increased 77.9 percent, crude oil was up 71.2 percent, refined oil rose 91.7 percent, coal jumped 64.9 percent, and soybeans jumped 79.2 percent.

Additionally, the markup of manufactured products’ prices fell behind that of primary products because of keen competition and weakening demand on the international market.

Export-oriented enterprises’ burdens were added by other factors like increased labor costs and environmental protection expenditure.

These elements forced a slowdown in China’s foreign trade, with its growth rate expected to linger between 15 and 20 percent this year.

From 2009, the pace of growth in overall exports and imports may have slowed down largely, with the growth rate falling below 15 percent and the trade surplus remaining at $200 billion.
Coping with the situation

A number of measures should be taken to stimulate overseas demand to deal with the worsening situation in foreign trade.

First, the government should strengthen its supervision of key export products and help exporters deal with their lack of current capital and prevent risks caused by exchange rate fluctuations.

Second, the pace of RMB’s appreciation should be reduced to maintain export growth.

Putting a lid on the value of RMB or even making it slightly depreciate against the US dollar would help exporters restore their confidence.

Third, the destination of exported products must be diversified.

Increased exports to emerging markets such as the Middle East, Russia and Latin America may help to lessen the serious effect of declining exports to developed countries.

Fourth, transferring labor from exporters to other sectors slowly would relieve the heavy burden on domestic employment caused by the slowing growth of export business.

Finally, it is vital to better the quality and added value of exported products and promote export-oriented industry’s transformation from being labor-intensive to a more capital- and technology-intensive structure.

Are you interested in the business opportunities in China?

China is one of the world’s great growth markets and is likely to be for many years to come. Foreign companies often face difficulties in assessing Chinese market demand and enacting effective strategies because of the language barriers, culture differences, and high expense.

BPOVIA is the leading virtual assistant and Knowledge process outsourcing (KPO) service provider in China. BPOVIA is the only virtual assistant company ever been nominated for the prestigious “Red Herring 100 Asia” Awards 2008. Combines international perspective with local know-how, BPOVIA can provide our clients China business development service and help our clients doing successful business in China.

Please visit http://www.BPOVIA.com/ for details about our service.

In the process, it has transformed itself from a dull and inefficient manufacturing base for a planned economy to a vibrant and progressive metropolis, servicing the modern industrial heartland of the Yangtze River Delta region.

Most of the imposing pre-war buildings still stand as testimony to the faded glory of Shanghai as the Paris of the East. The new symbol of China’s premier financial center in this city is glass-and-steel office towers across Huangpu River in Lujiazui in the Pudong new district.

Since the financial sector opened to foreign institutions, Shanghai has become the China headquarters for nearly all the major foreign banks, insurers and investment houses.

The city is home to the country’s main stock market that ranks as one of the largest in Asia in terms of total capitalization. And it has bigger and bigger influence on the international market.

The Shanghai municipal government has laid out a comprehensive blueprint for the financial sector’s development. It calls for improvement of the exchanges and information technology to help ensure greater market transparency and new financial derivatives products and services.

Shanghai’s position as the region’s aviation hub has been strengthened by the continuing expansion of both the Pudong International Airport and Hongqiao Airport for domestic flights. The role they are playing will be more and more important in industries in Yangtze River Deltaregion.

Shanghai is a major shipping hub in the Asia-Pacific region. The combined throughput of Shanghai’s port facilities has surpassed Hong Kong or Singapore.

But skilled workers in Shanghai have become the city’s growing pool. These highly qualified professionals from all over the country are pivotal elements to Shanghai become a financial centre of international standing.

Are you interested in the business opportunities in China?

China is one of the world’s great growth markets and is likely to be for many years to come. Foreign companies often face difficulties in assessing Chinese market demand and enacting effective strategies because of the language barriers, culture differences, and high expense.

BPOVIA is the leading virtual assistant and Knowledge process outsourcing (KPO) service provider in China. BPOVIA is the only virtual assistant company ever been nominated for the prestigious “Red Herring 100 Asia” Awards 2008. Combines international perspective with local know-how, BPOVIA can provide our clients China business development service and help our clients doing successful business in China.

Please visit http://www.BPOVIA.com/ for details about our service.