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China Pulse Archive

Welcome to the March 2009 edition of China Pulse, the newsletter for the U.S. Commercial Service in China ("CS China"). CS China offers you the resources you need to grow your business in China. By partnering with CS China, the U.S. Embassy's and the Consulates' contacts and expertise are put to work for your business. Knowledgeable Commercial Service specialists and American Trading Center ("ATC") representatives can help you contact and set up appointments with Chinese organizations in 19 cities in China. We can help you meet the right people at the right levels to expand your business. Our customer service team can help you identify top regional markets and opportunities to export your product to China. Set up an appointment with with customer service team.

The Commercial Section of the U.S. Embassy in Beijing is pleased to invite American firms to participate in our U.S. Pavilion at the 11th China International Environmental Protection Exhibition and Conference (CIEPEC 2009) to promote American goods and services to the Chinese environmental protection market. The exposition, with a 21-year track record, is one of the most established events of its kind in Asia, showcasing an extensive array of companies dealing in environmental protection products, equipment, and services. CIEPEC 2009 will be held at the China International Exhibition Center (CIEC) in Beijing from June 3-6, 2009.

The U.S. Pavilion at CIEPEC 2009 affords you a low-cost means of exhibiting at this major international expo with a comprehensive package of on-site support. For $3,600, you will receive:

-- A fully furnished, nine square-meter standard booth in a prime location on the expo floor
-- U.S. Pavilion decoration and logistic support
-- Pre-show region-wide marketing campaign to buyers
-- On-site counseling throughout the show
-- Free market research reports on China’s environment market - water, air and solid waste
-- Networking with officials of the Ministry of Environmental Protection and
-- Local and international media support

For detailed information, please visit:
http://www.chinaenvironment.org

The International Health Exchange and Cooperation Centre of the Ministry of Health and the Chinese Stomatological Association will organize the 2009 presentation of the Sino-Dental Exhibition and Conference in Beijing, an event actively supported by the organizer of the Greater New York Dental Meeting, one of the industry's pre-eminent annual events.  The annual Fair in China features well over 450 foreign and domestic exhibitors and attracts tens of thousands of domestic and foreign trade attendees. This year's Fair has been certified by the U.S. Department of Commerce and is actively supported by the U.S. Commercial Service in China.  For more information and to register, please visit http://www.buyusa.gov/china/en/sd2009ovrvw.html

Asia Pacific Business Outlook Conference
Los Angeles, CA
April 6-7, 2009
Learn more/register: http://export.gov/china/apbo/index.asp

Asia/Pacific Business Outlook, hosted by the University of Southern California in Los Angeles, with the full support of the U.S. Commercial Service, is the longest running and most successful regional conference of its kind focusing specifically on Asian markets. This conference has made a difference for U.S. exporters and has become the premier U.S. commercial trade event focusing on the Asia/Pacific region. It is a rare opportunity for U.S. exporters to meet with thirteen Senior Commercial Officers ("SCOs") from throughout the Asia Pacific region at one venue. SCOs from American embassies, consulates and institutes in Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand, and Vietnam will speak in small-group workshops and be available for private one-on-one consultations with APBO participants.

News Flash

Sino-U.S. trade up 10.5% in 2008, slowest pace since China's WTO entry  
China-U.S. bilateral trade expanded 10.5 percent last year to 333.74 billion U.S. dollars, the smallest increase since China joined the World Trade Organization seven years ago, official data showed Friday. The General Administration of Customs said the figure included 252.3 billion U.S. dollars in exports from China, up 8.4 percent, and 81.44 billion dollars in imports from the United States, up 17.4 percent.

From: China Daily, Feb.6, 2009. http://news.xinhuanet.com/english/2009-02/06/content_10774287.htm

China Start-up the Plan and Construction of Large Wind Energy Base
State Administration of Energy looks to develop wind energy as one of the major tasks of improving power supply structure from 2008. It will promote the planning and construction of six ten million kw grade wind energy base, in the region ample of wind energy source, including inner-Mongolia, Gansu, Xinjiang, Hebei, Jiangsu, etc. February 16th 2009，Pengfei Shi, vice chairman of Chinese Wind Energy Association said, the planning and construction of ten million kw grade wind energy base, will ensure electric energy outputting and consuming of Chinese hundred million grade wind energy base at 2020，to realize the object of National Medium and Long Term Development Plan of Renewable Energy Resources.

Now，the plan of ten million kw grade wind energy base of Jiuquan of Gansu province has completed, and has been put in practice at first. To 2015, the equipped capacitor will reach 12 million kw upwards. October 16, 2008, State Administration of Energy conformed the plan of ten million kw grade wind energy base of Hami of Xinjiang province, planning to build 20 million kw wind energy field at Hami. By now, the plan of other region ten million kw grade wind energy base are working out. The planning equipped capacitor is 50 million kw in Inner Mongolia，20 million kw at Western Inner Mongolia, 30 million kw at Eastern Inner Mongolia; 10 million kw in Hebei province; 10 million kw in Jiangsu province. (By Ramrayt Corp)

China: Auto Aftermarket

In parallel with the country’s economic growth over the past decade, China’s auto aftermarket has experienced rapid growth. According to the China Association of Automobile Manufacturers (CAAM), vehicle sales averaged an annual growth rate of 16% to 20% from 2004 to 2007 and the number of vehicles on the road will exceed 80 million by 2010. This situation has created an increasing demand for auto aftermarket products and services.

China’s auto aftermarket is currently very fragmented, under developed, and not well regulated. However, multinationals entering this market have prompted Chinese enterprises to step up to the competition, and aftermarket consumerism is developing rapidly as well. Chinese customers are increasingly focusing on car care and maintenance, creating the demand for the auto aftermarket to expand and develop. As the world leader in the auto industry, U.S. auto aftermarket products and service also enjoy a solid reputation in the Chinese market. Therefore, opportunities for U.S. exporters of aftermarket products and service are expected to expand in the coming years.

For full article please go to http://www.buyusainfo.net/docs/x_1601488.pdf

China: Cosmetic and Toiletries

China’s cosmetic market has been expanding rapidly over the past 20 years. Nationwide sales have grown at an average of 13 percent in recent years according to the China Association of Fragrance Flavor and Cosmetic Industry. Despite significant growth over the last two decades, China’s cosmetic consumption is still far from saturation, and the country is expected to remain a dynamic market.

With a population of 1.3 billion of which 480 million are urban residents, China has the largest number of potential cosmetic customers in the world. As a result of China’s fast economic growth, living conditions should continue to improve, providing an increasing number of people with purchasing power to buy cosmetics.

Despite rapid growth, China’s cosmetic market is still at a low level of development. Although China is potentially the largest customer base in the world, its per capita yearly spending on cosmetics is only $5. Therefore, it provides tremendous business opportunities for foreign cosmetic producers, particularly in the areas of imported or middle and high end products. After 20 years of development, China’s cosmetic market has become highly competitive. However, there remains plenty of potential for new entrants, provided that they adopt appropriate market entry strategies, find the right manufacturing or distribution partners, use effective marketing strategies, and make suitable products for various customer groups at reasonable price points.

For full article please go to http://www.buyusainfo.net/docs/x_5850934.pdf

International Market Insights report: March 2009
The International Market Insights report (IMI) is a compilation of development projects funded by the Asian Development Bank (ADB). CS ADB distributes these monthly to alert U.S. firms about new consulting service opportunities funded by ADB technical assistance (TA) programs. ADB funds technical assistance projects to prepare and implement major projects and support the bank's advisory and regional activities among its developing member countries. In 2008, ADB approved a total of 299 TA projects, worth over $274 million. U.S. firms won $ 43 million consulting contracts out of this activity. This IMI can be your client’s link to these opportunities.

You can access this IMI at: http://www.buyusa.gov/adb/imi_march09.pdf

Featured Articles

Managing Government Affairs

Unlike the US government, which places few restrictions on business, the PRC government plays a significant role in business in China. Partners, customers, suppliers, competitors, service providers, and media are often directly or indirectly controlled by the Chinese Communist Party and China's parallel government bureaucracy. As US companies develop their China operations—whether by expanding existing facilities, building stronger brands, or entering entirely new markets—their need to review the range and scope of their government affairs operations has never been greater.

Rampant turnover of government affairs staff and misperceptions about how to conduct government affairs in China—particularly the belief that a company must rely on someone with connections to achieve its goals—make it difficult for companies to conduct government affairs effectively. As a result, many US companies are seeking more information about what the practice of "government affairs" means in China, where a developing, rapidly changing, and often opaque economic system make advocacy more challenging now than in the past.

To meet this need for information, the US-China Business Council (USCBC), publisher of the CBR, unveiled the first half of a two-part report member survey in October 2007. The survey sought members' opinions on the structuring, hiring, and tasking responsibilities for managing government relationships in China (see Conducting Government Affairs in China). To delve more deeply into some of the survey's findings, the USCBC interviewed 26 China-based senior executives and government affairs practitioners in March 2008. Questions covered organizational structure as well as relationships with other business units and departments, interaction with industry associations, hiring practices, evaluation criteria, tasks and responsibilities, and perhaps most important, respondents' interactions with PRC government officials.
If you interested this article, please go to http://www.chinabusinessreview.com/public/0809/walton.html for full article..

Critical Eye on Chongqing

Chongqing's rise to prominence can be traced back to the middle of the twentieth century. From 1937 to 1945, when Japanese troops occupied Nanjing, Jiangsu (China's capital at the time), the mountainous city of Chongqing was regarded as a safe haven and chosen as the capital of the Guomindang government. Despite heavy bombing by the Japanese, Chongqing's population tripled during World War II and many important institutions and industries were relocated there, laying the foundations for the city's industrial power base. China's future paramount leader, Deng Xiaoping, was the city's first mayor after the People's Republic of China was founded in 1949.
Today, Chongqing is the most important industrial and commercial city in southwestern China. It covers 82,400 sq km—more than Beijing, Shanghai, and Tianjin combined—and has a population of 32 million, though only 6.6 million live in the city proper. Between 2002 and 2007, Chongqing's economy grew 12.6 percent annually, hitting ¥411.2 billion ($60.2 billion) in 2007. Foreign trade expanded 36 percent in 2007 to reach $7.4 billion, of which exports comprised $4.51 billion.
If you interested this article, please go to http://www.chinabusinessreview.com/public/0901/criticaleye.html for full article

Importing Second Hand Equipment

 

Importing second hand production line, electrical and machinery products to China

Second hand electronic and mechanical equipment typically face importation controls by Chinese Customs, which is administrated by the Ministry of Commerce (MOC) and the Inspection and Quarantine Administration (AQSIQ) and implemented by their subordinate offices. The importation control process includes project approval, importation approval, pre-shipping examination,  inspection and quarantine, one-site examination and factory examination.  

Smooth importation can be achieved with proper classification and effective governmental negotiation work highlighting the positive aspects of the equipment being imported.

Import license: 
Import certificates (if required) are issued by the MOC or its provincial office before the importation of second hand mechanical and electrical equipment. It is the consignee of the good or their agent to obtain the required certificates before importation.
 
Record filling:
At least 90 days before the arrival of good the consignee must file records with AQSIQ or the local administration of inspection and quarantine branch directly under the AQSIQ. 

Pre-shipment inspection 
The pre-shipment inspection institution will complete an inspection before the shipment of goods, then submit a Pre-shipment Inspection Report to the local AQSIQ branch. The local AQSIQ branch will then review the report and issue a Certificate of Pre-shipment Inspection for goods if it meets AQSIQ criteria.

Pre-shipment inspection goals:
a. Verify the goods conform to the project as approved by the State;
b. Verify the quantity, specifications, and current condition of the goods to ensure it conforms to those specified in the contract and shipping documentation; and
c. Perform a preliminarily evaluation of the items for safety, sanitation and environmental concerns. 

Arrival Inspection

Upon reaching the port of entry the goods will go through an inspection and quarantine whereby the goods are reviewed against the pre-shipment inspection certificate. If the final location of goods is not specified, the inspection and quarantine institution at the entry port will take charge of the arrival inspection, supervision and administration. 

The article was provided by Edward Gao of PLC Consulting Group in Beijing and is not an endorsement or recommendation by the U.S. Government or the U.S. Embassy in Beijing. Mr Gao can be contacted at Edward.gao@p-logistics.com or 86-10-65591450

AmCham-China in Action

Amcham - China In-action

Asia-Pacific Council of American Chambers of Commerce Conference
What is the APCAC Conference?
- The Asia-Pacific Council of American Chambers of Commerce (APCAC) Spring Conference will be held from March 19 to 21, 2009 in Singapore.
- It is open to all members and guests of the 27 member AmChams (including AmCham-China).
- It aims to promote an exchange of ideas and discuss opportunities and challenges for US businesses in the region. In addition, panel discussions will look at growth areas in Asia and at sustaining competitiveness.
Click here to visit the official APCAC 2009 website and to view recently confirmed speakers.

EVENTS:
Upcoming Events

About AmCham-China
 
The American Chamber of Commerce in the People's Republic of China (AmCham-China) is a non-profit organization which represents US companies and individuals doing business in China.  AmCham's membership comprises nearly 2,700 individuals from over 1,100  companies. It has more than 40 industry- and issue-specific forums and committees, offers unique services such as the Business Visa Program, holds a wide range of networking and informational events, and meets with US and Chinese officials to discuss challenges and opportunities facing US firms doing business in China. 
 
The Chamber's mission is to help American companies succeed in China through advocacy, information, networking and business support services. Find out how your firm can benefit from a membership with AmCham-China.

 

Why choose the Commercial Service?
The Commercial Service offers you the access you need to grow your business in China at an affordable rate. By partnering with FCS, the U.S. Embassy's and Consulates's contacts and expertise are put to work for your business. Knowledgeable Commercial Service specialists and American Trading Center (ATC) representatives can help you contact and set up appointments with Chinese organizations across China. With access to a broad cross-section of contacts including potential agents and distributors, major end-users and key government officials, you will be sure to meet the right people at the right levels to expand your business.

China Pulse is Commercial Service China’s official e-newsletter! Inside you will find the latest business news, exciting export opportunities, and inside strategies to help you maximize your success in the China market today!

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