big logo
Newsletter for Feb 9, 2009


A weekly sampling of news, analysis and opinion on economic issues of India, China and the U.S. Articles and opinion pieces are from a variety of sources and viewpoints and do not necessarily reflect those of ICA Institute. Access to some articles may require free registration to the site or may not be cited to the original source. Access archive.

In this issue
  • Getting China & India Right
  • Free Access to Chinese Management Studies
  • China Goes Global Call for Papers
  • Expert Advice for Small Businesses in China
  • Headlines
  • Energy
  • ICT
  • Agriculture
  • Industrial Resources | Manufacturing
  • Environment | Climate Change
  • Corporate Responsibility
  • Innovation
  • Health | Medicine
  • Logistics
  • Education | Training
  • Newsletter staff

  • Getting China & India Right


    Join us for a Webinar on February 24
    The central premise underlying this global virtual seminar is that being present in China and India is not the same thing as getting China and India right.

    Most CEOs and their senior colleagues are well aware that the world's economic center of gravity is shifting from the developed to the emerging economies, in particular China and India. Notwithstanding this general awareness, very few truly grasp the magnitude and pace of change and the multi-faceted nature of the new reality. Some of the most common mistakes include: viewing China and India solely from the lens of off-shoring and cost reduction, building marketing strategies that are centered around just the rich cities and the top 5-10 percent of the population, naivet� regarding the choice of local partners, and treating these two countries as peripheral rather than core to the company's global strategy.

    Putting in place the right strategies, as outlined in this webinar, is crucial to leveraging these economies for global advantage.

    Dr. Anil K Gupta is the author of over seventy papers and four books: Getting China and India Right, The Quest for Global Dominance, Smart Globalization, and Global Strategy and Organization. He is the Ralph J. Tyser Professor of Strategy and Organization at the Robert H. Smith School of Business, The University of Maryland at College Park.

    Haiyan Wang is Managing Partner of China India Institute. She is the co-author of two books: Getting China and India Right and The Quest for Global Dominance-2nd Edition. Her opinion pieces have appeared in top international media such as The Wall Street Journal, The Economic Times, China Daily, and The Times of India.

    Cost: FREE
    Title: Getting China & India Right
    Date: Tuesday, February 24, 2009
    Time: 11:00 AM - 12:00 PM EST

    Space is limited.
    Reserve your Webinar seat now at:
    https://www1.gotomeeting.com/register/897552557


    Free Access to Chinese Management Studies

    Emerald Group Publishing Ltd is pleased to offer ICA Institute readers free access to its journal Chinese Management Studies during February.

    Launched in 2007, Chinese Management Studies is already showing signs of becoming a significant force in the international business and management field worldwide. The journal provides a unique and insightful approach to documenting and disseminating research into Chinese processes of managing enterprises, firms and corporations. Integrating both qualitative and quantitative research, it provides in-depth analysis of Chinese managerial thinking, philosophy and processes, together with empirical pieces on Chinese management.

    The online trial includes access to the 2008 special issues 'China's emerging knowledge economy' and 'Emerging themes in Chinese management'.

    To access the journal visit www.emeraldinsight.com/cms.htm , see the table of contents and - when prompted - enter the following:

    Username: ICAinstitute
    Password: china2009

    For more information on the journal, please contact the Publisher, Martyn Lawrence, at mlawrence@emeraldinsight.com


    China Goes Global Call for Papers

    Call for Papers
    3rd China Goes Global Conference
    September 30 - October 2, 2009
    Harvard University, Cambridge, USA
    www.chinagoesglobal.org

    Overview
    This century has been dubbed the Chinese Century. But will the naming of this Century be congruent with the country's performance in the global political economy? As part of a series of conferences on the topic China Goes Global, held at Harvard Kennedy School and Rollins College, we issue a new call for papers on the globalization of China and Chinese companies, focusing on the following broad questions:
    1. What are the social, political and economic influences of China's globalization?
    2. How will China's globalization effect the business environment of firms in developed and emerging countries?
    3. Will China really replace the US economic, political and business leadership in the 21st Century?
    4. What are the factors associated with China's emerging global economic prowess?
    5. Can Western political/economic models and theories help explain China's current trajectory, either on a macro or a micro level?

    Important Dates
    Deadline for Submission: May 15, 2009
    Paper acceptance/rejection: July 1, 2009
    Revised paper submission: August 15, 2009
    Registration Fee
    Please note that all presenters and participants must register to attend the conference. The early bird registration fee of USD 495 is due on July 5, 2009, and the regular registration fee of USD 595 is due on August 15, 2009. The registration fee includes refreshments, lunches, reception, conference dinner, and a copy of the book China Rules: Globalization and Political Transformation (Palgrave McMillan, 2009). Conference registration does not include accommodation or travel costs.

    Organizational Committee
    Dr. Ilan Alon, Petters Professor, Director Rollins China Center, Crummer Graduate School of Business, Rollins College, Asia Programs Visiting Scholar, Harvard University
    Dr. Julian Chang, Executive Director, Asia Programs, Ash Institute, Kennedy School of Government, Harvard University
    Dr. Marc Fetscherin, Assistant Professor, Crummer Graduate School of Business, Rollins College, Asia Programs Visiting Scholar, Harvard University
    Dr. Christoph Lattemann, Assistant Professor of Corporate Governance & E-Commerce, University of Potsdam, Asia Programs Visiting Scholar, Harvard University
    Dr. John R. McIntyre, Professor, Director of Georgia Tech CIBER, Georgia Institute of Technology

    For more information, visit the conference website http://www.chinagoesglobal.org/


    Expert Advice for Small Businesses in China

    Singapore - 4 February, 2009 - Since China entered the WTO in 2001, it has become an open door to vast new markets for foreign investments. Bolstered by the growing consumer wealth in urban and suburban areas, it has attracted a new and widely diverse generation of investors - including an increasing number of smaller companies and entrepreneurs, local and foreign-investors, all serving niche markets. Yet, as the world's largest and most dynamic consumer market, China is notoriously difficult for international entrepreneurs - among the hundreds of thousands of foreign businesspeople fighting to penetrate the Chinese market, only a small percentage of them will succeed in bringing their start-up dreams to life in the Middle Kingdom.

    Published by John Wiley & Sons (Asia) Pte Ltd, China Entrepreneur: Voices of Experience from 40 International Business Pioneers (ISBN: 978-0470-82321-7) will give a front-line, first-hand account of what it takes for an international businessperson to start and profitably operate a small business in China.

    This book is a collection of anecdotes, best practices and first-hand advice in tackling the key challenges of winning in the China market, from negotiating with government and winning necessary start-up approvals, to hiring and keeping the right staff, to collecting payments and to safeguarding intellectual property. In addition, the experiences of the entrepreneurs will be juxtaposed against insights from experienced China consultants who assist start-ups in operating in China. The book will also consist of practical business by consultants who have risen to prominence in the China business environment by advising SME business operators on succeeding in China.

    While the authors' first book, China CEO (John Wiley, 2006), featured the insights of 20 top executives from multinational companies in China, China Entrepreneur focuses on the strategies, tools, and knowledge necessary to start and grow a business in China without the backing of a global corporation. This book is a practical guide that distills 500 years of China experience from 40 foreign entrepreneurs coming from 25 countries, full of vivid stories to illustrate the points made in the book. It can work as a "how to" manual and also as an interesting reading for those thinking of starting their own business.

    Additional information on the book is available at http://as.wiley.com/WileyCDA/WileyTitle/productCd-0470823216.html.


    Headlines


    China says protects human rights, West voices doubt (Reuters UK, Feb 9)
    China, urged by Western and some Latin American countries to ensure political and religious freedoms, insisted on Monday that it is guided by the rule of law and is committed to protect and promote human rights. And while European delegations in the United Nations Human Rights Council called on Beijing to end the death penalty and halt torture in prisons, many Asian and African countries hailed China as a beacon of progress and an example for them to follow. "China is a state where the rule of law prevails," a top official of the Chinese Supreme Court told the 47-nation Council, while the chief Chinese delegate said: "China is fully committed to the promotion and protection of human rights."

    China Urges India to Show Restraint on Trade Remedies (WSJ, Feb 9)
    hina's Ministry of Commerce on Monday urged India to exercise restraint and care in applying trade remedies against Chinese products, saying a failure to do so would severely affect trade ties. The trade tensions between India and China, whose export falloff is hurting economic growth and employment, come amid a rise in trade protectionism as nations seek to weather the global downturn. The World Trade Organization is gathering nations in a special meeting Monday to stem the rise of protectionism. India has started 17 investigations into Chinese imports since October, restricted imports of Chinese steel, textiles and petrochemicals, and last month banned imports of Chinese toys for six months, Commerce Ministry spokesman Yao Jian said.

    Geithner phones China, G7 officials on economy (Reuters, Feb 9)
    U.S. Treasury Secretary Timothy Geithner telephoned foreign finance officials to underscore the need for quick government action to restore economic health and reassure China that the United States wants to sustain a close dialogue, the Treasury said on Monday. Geithner spoke late on Sunday evening with Chinese Vice Premier Wang Qishan. "The two agreed that strong cooperation on macroeconomic financial and regulatory matters was an essential part of the U.S. relationship with China and that it was important to sustain close dialogue, particularly at this time of global financial turmoil," the Treasury said in a statement.


    Energy


    Mixed energy forecast (China Daily, Feb 9)
    Statistics released by the China Electricity Council (CEC) early last month showed that last year's investment by the clean energy industries, especially for hydropower, nuclear power and wind power, went up by large margins against a global economic slump.

    It's not reasonable to compare China's gas retail prices with US prices (English.Eastday, Feb 9)
    It's been over a month since the controversial fuel tax reform took effect on January 1. In addition to the new move, a fuel pricing mechanism was also set. For car owners, the new system for pricing petrol plays an increasingly important role in their future fuel consumption. After China decided to cut its benchmark retail gas and diesel prices, oil giants began an intense competition by lowering prices in big cities. In early February, Shanghai had the lowest gas price in China. Take 93-octane gasoline for example, its price stood at 4.66 Yuan per liter the lowest among prices in Shanghai. Compared with the price of gas before the pricing war, it fell by about 23%. How can we make sense of the current fluctuating fuel prices? How much will the new fuel pricing mechanism impact China's energy conservation? To discuss these issues, we caught up with Wu Libo, executive director of the Center for Energy Economics and Strategy Studies at Fudan University.

    KSK energy fund winds up, goes for liquidation (Livemint.com, Feb 9)
    derabad: The �100 million (Rs705 crore) KSK Emerging India Energy Fund Ltd, the only fund dedicated to energy-related investments in India, is being wound up in a potential setback to some projects at a time when capital for public works is already scarce. An announcement by the fund to the London Stock Exchange's Alternative Investment Market (AIM), where it is listed, said the decision to liquidate the fund had been forced by the global recession and internal problems faced by shareholders.

    France looks to double trade with India (The Times of India, Feb 5)
    According to Anne-Marie Idrac, French minister for foreign trade, against the background of the India-US civil nuclear energy deal, newer avenues will open for India to benefit from France's strength in power generation and equipment. India's energy needs are huge and French companies can extend their capabilities to India for a strong growth in the energy and infrastructure, she added. French power equipment major Alstom has a sizeable presence in India and has also recently signed an agreement with Bharat Forge to set up a joint venture for manufacturing super critical turbine island power plant equipment.

    U.S. Department of Commerce Plans Solar Trade Mission to India (RenewableEnergyWorld.com, Feb 5)
    The U.S. Department of Commerce-U.S. Commercial Service is planning to lead a Solar Energy Trade Mission to India from March 22nd-27th, 2009. The goal of the mission is to offer U.S. firms a cost effective way to meet potential business partners and government decision makers who are on the front edge of shaping India's solar energy sector, Commerce officials said.


    ICT


    Apple's Latest Negotiations To Bring iPhone To China Broke Down Over App Store Control (mocoNews.net, Feb 9)
    Will the iPhone ever officially make it to China? The wrangling between Apple and China Mobile, the country's overwhelmingly dominant network operator, to launch the iPhone in the world's largest mobile market has been long reported. Now, we're getting a little more detail as to what the sticking points are between the two companies. According to Interfax, which cites a source at the China Mobile Research Institute quoting the carrier's president Wang Jianzhou, the 18-month old negotiations, which included Apple CEO Steve Jobs and COO Tim Cook, broke down three times. In the latest round?their third?the two haggled over which company would sell iPhone applications directly to customers. As it does everywhere else, Apple wanted to sell directly to consumers through its App Store. China Mobile chiefs, however, balked at this. Wang apparently considered the notion of Apple interacting and directly collecting payment from Chinese consumers as a "threat" to the operator's dominance over the country's mobile internet market.

    China Telecom launches "mobile phones to the countryside" program (people's Daily Online, Feb 9)
    China Telecom has launched a nationwide "mobile phones to the countryside" program, the company announced on Feb 9, 2009. Rural customers who purchase CDMA mobile phones at China Telecom outlets nationwide will be awarded "mobile phone preferential packages". They can enjoy a 13 percent subsidy from the government on the mobile phone price, as well as certain subsidies on their phone bills, including a combining landline, broadband and mobile services preferential package.

    Rural India Snaps Up Mobile Phones (WSJ, Feb 9)
    Economists have slashed Indian economic growth forecasts for this year and the stock market is in the doldrums. But cellphone companies are signing millions of new subscribers a month, making India the fastest growing mobile-phone market in the world. There is no sign of a slowdown yet: figures to be released later this month are expected to show that new subscriptions in January reached a record 11 million.


    Agriculture


    China Drought May Last Into March, Grain Center Says (Bloomberg, Feb 9)
    China's worst drought in five decades may persist into March, with the dominant weather pattern across the nation's north not expected to change in the near term, the China National Grain and Oils Information Center said. About 153 million mu (10.2 million hectares) of all crops are affected, the center said today in an e-mailed report, an estimate that's in line with a Feb. 6 figure from the Office of Flood Control and Drought Relief Headquarters. The information center is a state-affiliated agency that provides crop data.

    Lower oil prices good, bad for cotton (Southeast Farm Press, Feb 9)
    Cotton producers have had to look hard to find a silver lining in the dark clouds that have hung over their industry in recent months. And, even when they've found one, it's likely to have sprung a leak. Most growers are painfully aware the 2008 crop was an expensive one to produce due, in part, to crude oil prices rising above $140 a barrel and sending retail gasoline and diesel prices soaring last spring. After farmers got their crops in, energy prices plummeted. "One of the few bright spots in recent months has been the decline in energy prices," said Gary Adams, vice-president for economics and policy analysis at the National Cotton Council, noting crude oil prices have fallen back in the range of $1.30 per gallon, and diesel prices have declined to levels more in line with those of 2006 and 2007.


    Industrial Resources | Manufacturing


    Chinese and Indian manufacturing PMI in January continued to signal a weakening business environment (FinFacts Ireland, February 2)
    Operating conditions in the Chinese manufacturing sector continued to deteriorate in January while Indian PMI (Purchasing Managers' Index) continued to signal a weakening business environment.

    China Manufacturing Contracts at Slower Pace (The Wall Street Journal, February 5)
    A business survey showed that manufacturing activity in China contracted again in January, though at a slower pace than the month before, providing some early signs of recovery for the Chinese economy.

    BASF engg plastics to help save costs for India mfg sector (MoneyControl, February 5)
    At India's leading plastics trade show, BASF, the world's leading chemical company, will demonstrate how innovations in engineering plastics can create significant cost efficiencies in key Indian manufacturing sectors such as automotive, electrical and electronics, and the food industry. 

    Hong Kong stocks rise on China manufacturing data (International Herald Tribune, February 4)
    Hong Kong's key stock index rose more than 2 percent Wednesday on better-than-expected news about China's manufacturing industry. The blue-chip Hang Seng Index added 287, or 2.3 percent, to 13,063.89.


    Environment | Climate Change


    First Trip for Clinton Aims at China, Climate (The New York Times, February 4)
    Secretary of State Hillary Rodham Clinton has settled on China as an important stop on her first trip abroad in her new job and aides told me that climate and energy will be high on the agenda. (Japan will be the first stop on the Asian trip, which is planned for later this month.)

    UN chief in India climate warning (BBC News, February 5)
    UN chief Ban Ki-moon has warned a climate change conference in India that failure to tackle the issue will lead to global economic upheaval.

    UN supports India's climate policy stand (Press Trust of India, February 5)
    The United Nations has come out in support of India's stand of not putting a specific limit on its greenhouse gas emissions asserting that such a cap was not "realistic" and may hamper its economic growth.


    Corporate Responsibility

    Convergys Aids Rural Women in India with Mobile Computer Lab (TMCnet, February 3)
    Convergys Corporation, a company providing customer care, human resources and billing services, has announced it has funded a vocational computer training program for the women of Mavadi and Naigon villages of Maharashtra, as part of its ongoing Corporate Social Responsibility program in India.

    China Protest Against India's Ban On Toy Imports (China CSR, February 4)
    China has made an angry response to India's six-month ban on Chinese-made toys. According to a representative from China's Ministry of Commerce, the Chinese government will launch a "solemn and just" protest against India and may also file a lawsuit against the India at the Dispute Settlement Body of the World Trade Organization.


    Innovation


    Eight chosen for Nasscom innovation award (The Hindu, February 4)
    National Association of Software and Services Companies (Nasscom) has selected eight companies as the winners of the Nasscom Innovation Awards 2008. They were selected from the 24 companies short-listed for the award. The winners will be felicitated at the forthcoming Nasscom India Leadership Forum 2009, scheduled in Mumbai from February 11 to 13.

    China moves up in international patent application rating (Xinhua, February 4)
    China moved from the seventh largest in 2007 to sixth in 2008 in terms of the number of international patent applications, said an intellectual property official here Wednesday.


    Health | Medicine


    India to get two more premier referral medical institutes (Sindh Today, February 5)
    Aiming to ramp up the country's healthcare facilities, the Indian government Thursday sanctioned Rs.16.46 billion ($340 million) for setting up two more premier referral institutes on the lines of the prestigious All India Institute of Medical Sciences (AIIMS) here.

    The green medicine (Bangkok Post, February 5)
    Acupuncture is probably the most well-known and popular form of traditional Chinese medicine. But those suffering from bone, tendon, or muscle problems, structural misalignment may also be interested in the Chinese hands-on-body treatment known as tui na, which is effective to help patients recover from illnesses faster, especially when used in combination with the modern treatment.


    Logistics


    India Shortlists Five Foreign Cos For Locomotive JVs (CNN Money, February 5)
    India's federal cabinet Thursday shortlisted locomotive makers Alstom S.A. , Bombardier Inc. (BBD.B.T), Siemens A.G., General Electric Co. and Electro-Motive Diesel Inc. as potential partners to build two locomotive factories in the eastern state of Bihar.


    Education | Training

    Kolkata and Scotland to work together in education sector (The Economic Times, Feb 6)
    According to 2007 figures, India is Scotland's biggest international market for college students with more than 1,400 Indians studying in Scottish colleges and another 3,000 in Scottish universities. The minister said the curriculum at Scottish colleges was wide ranging, from engineering and construction to fashion and creative industries and even greens-keeping expertise.

    Indian wins top int'l MBA award (Business Standard, Feb 9)
    Indian social entrepreneur Gajender Sharma has won one of the world's top awards for business school graduates. The MBA Student of the Year is staged by the international business education body, the Association of MBAs (AMBA) and is open to entrants from over 150 business schools in 69 countries. Sharma, who is now working at Tokyo-based management consultancy, AT Kearney, took his MBA at HEC in France, Europe's top ranked business school, after a degree in mechanical engineering in Delhi. Sharma is also setting up a charitable organisation called Positive Drive, which is aimed at giving children in developing countries access to education by helping their parents find jobs. "Education can totally change your life and access to it shouldn't depend on the economic situation of the family," Sharma said.

    China education ministry: Don't judge teachers by student's scores (China View, Feb 5)
    Experts said the country's exam-oriented education system tends to neglect the cultivation of a well-rounded personality while teacher performance is evaluated strictly by exam grades. Instead of focusing on talented students, schools should guide teachers to pay equal attention to every pupil, especially those with learning or emotional disabilities.


    Newsletter staff


    Inter national Contributors Editorial Board
    RJ Paulsick - Co-Editor
    Roxanne Russell - Co-Editor
    Geoff Hiscock - Australia
    Harsha Harjani - Hong Kong
    Dr. Nilay Yajnik - India
    Farhad Mirzaei - Iran
    Ajay Sharma - Netherlands
    Melissa Steinmetz - UK
    Dr. Daney Jackson - USA
    Dr. John R. McIntyre - USA
    Dr. Sudhanva Char - Academic Resources
    Shree Pandya - Engaging Youth
    Laurel Askue - Environment & Conservation
    Christopher Chan - Intellectual Property


    three flags

    The ICA Institute is a non-profit research institute working to foster research and dissemination of knowledge on the rise of China and India and their impact on global markets, global resources and geopolitics of the world. The ICA Institute's mission is to generate new perspectives on the role of market and resource driven economic development. ICA Institute fosters interaction and dialogue between academic scholars, industry leaders and policy makers on the impact of emerging economies in general and China and India in particular. Specifically, The ICA Institute is positioned to be a catalyst between faculty and students in International Business and industry leaders and managers.

    Learn more about the ICA institute
    Resources

    Chindia Biz Blog

    ICA Institute Publications

    GlobalAtlanta

    The Halle Institute for Global Learning

    The Global Sourcing Council

    AgGlobalVision




    Join our mailing list!
    phone: +1-404-321-5966
    Email Marketing by