Economics & Trade

Legend for the fall?

The Beijing-based computer manufacturer Legend is coming under increasing pressure from foreign and domestic manufacturers in China, as competition heats up in one of the world's few expanding PC markets.


Foreign insurers are needed to mitigate the risks associated with China's economic reforms. Beijing's challenge is to tap their expertise without undermining local firms.

Playing it by the books

Cybercafes in Wuhan are guardedly enforcing year-old regulations designed to keep unwholesome material away from computer users. The outcome will have implications for internet users across the country.

Measured steps to telecoms liberalisation

Recent foreign investments in the provision of telecoms services show that China is starting to open one of its most tightly controlled sectors in advance of the country's accession to the World Trade Organisation.

Equal treatment

China's impending membership of the World Trade Organisation is likely to have a significant impact on income tax legislation. Beneficial tax treatment is likely to shift to inland regions and to high-tech companies.

ADB prioritises poverty

Poverty reduction in Asia and the Pacific is now the Asian Development Bank's overarching objective, but critics say the new strategy has made little practical difference to the Bank's operations in mainland China.

Good neighbour policy

With a dozen outlets across China, Metro is one of the most successful foreign retailers and one of the most popular with the local authorities.

Bonding loyalty

To retain valued talent in China, companies need to excel in all stages of the human resource flow, says Prof. Dr. Kai-Alexander Schlevogt.

Reluctant partners

Despite an escalating trade spat and tension in their bilateral relations, China and Japan have little real choice but to resolve their differences and co-operate.

Local alternative

Opportunities for foreign students to receive a Chinese education are growing as local schools take steps to improve the learning environment.

Orange blossom

Creating a modern orange juice industry in a poor region of China is risky, so it is perhaps just as well that the company behind the project has more interest in promoting goodwill than generating profits.

Copper demand stimulates imports

China's massive spending on infrastructure projects in western regions is fuelling exceptional growth rates in copper imports, although Chinese producers are also stepping up their production levels to meet demand.

Share option

A recent ruling by the SAT has important implications for FIE holding companies wanting to pool services provided to their China subsidiaries.

Hard sell

The authorities are going full tilt in an attempt to stimulate the economy of Tibet and encourage more foreign investment, either direct or indirect.

Cultivating loyalty

In the first article on how best to capture and retain talent in China, Professor Dr. Kai-Alexander Schlevogt of Peking University argues that foreign companies should learn from the best Chinese companies.

A green Great Wall

A series of natural disasters resulting from rampant logging in Yunnan province has prompted a tough response from the central government, but critics say the logging ban is doomed to failure in the long run.

Container trends

Larger ships and a greater involvement in managing container-handling terminals are two recent trends in China's container shipping business.

Diamond city

China is destined to become a world leading diamond market and Shanghai is well placed to join the ranks of elite diamond cities.


The first revisions in five years to the tax administration and collection law in China bring greater transparency and fairness to the system.

What slowcown?

At a time when the global telecoms market is faltering, the problem in mainland China appears to be one of managing to cope the continued rapid rate of growth.

Seeking clarity

Revisions to WFOE regulations should benefit foreign firms and remove some of the uncertainty surrounding the process of setting up WFOEs.

Urban stampede

Rural migrants are now a crucial part of China's urban economy, yet the state is only starting to ease the restrictions placed on their movement.

Efficiency gains

B2B trading sites offer considerable cost savings in developing countries such as China, but the sheer backwardness of many local businesses on the mainland means that uptake has been excruciatingly slow so far.

Waigaoqiao warning

Newly established companies in Waigaoqiao FTZ now enjoy greater tax subsidies than existing companies. However, these subsidies may have to be removed if they are found to be in breach of central taxation policy.

Stoking the coals

The coal industry in China, known for being dangerous and highly polluting, is undergoing a series of reforms designed to improve safety and efficiency. The focus is now on promoting efficiency and developing clean coal technology.

Special treatment

With so many different types of investment zone, foreign companies face major difficulty in getting the best deal from their investments in China.

Investors beware

There has been a rapid surge in M&A activity since the start of the SOE reform process. However, investors should be aware that there remain serious inconsistencies in the application and enforcement of the laws.

Higher standards

China is making substantial progress in bringing its food standards into line with developed countries, but the rules are applied patchily and some claim they are being used to stifle market access to foreign producers.

The price is right

With new apartment blocks being constructed on almost every street corner and strong government incentives offered to homebuyers, now is an ideal time for locals and foreigners in Shanghai to buy a property.

Value judgment

Ikea is a highly successful retailer in Europe and the US but making a profit in a developing market such as China is going to be a big challenge.


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