As Dead as a CRT?

As plasma TV prices continue to plummet, the old CRT (cathode ray tube) sets are losing their last remaining competitive advantage. Twelve international and Chinese TV giants, including LG, Philips, Samsung, Hitachi, Sharp, Panasonic, Hisense, Haier, Skyworth, TCL, Changhong and Xoceco, recently announced that they will discontinue the supply of CRTs to major Chinese stores by October 1, 2007.

International Helicopter Makers Vie for the Chinese Sky

China is expected to place orders for some 2,763 helicopters for civilian purposes in the next 20 years. To date, China has lagged behind other nations in terms of its number and use of civilian copters, and there is tremendous potential for the business. Major international copter manufacturers are currently devising strategies to establish a presence in the Chinese helicopter market.

A mobile phone workshop in Guangzhou.

China - the World’s Mobile Phone Factory

Statistics from the China Institute of Communications show that 300 million of the 750 to 770 million handsets produced in 2005 were made in China. And the number this year is expected to hit 380 million, cementing the country’s position as the world’s largest mobile phone manufacturer. But a large output does not necessarily lead to huge profits. Just a fraction of the earnings go to Chinese manufacturers, while the lion’s share is pocketed by foreign brand owners and designers.

China Becomes Third Largest FDI Destination

According to the United Nations Conference on Trade and Development’s (UNCTAD) 2006 World Investment Report, China has in the past two years become the world’s third-largest destination for foreign direct investment (FDI). It is behind only the US and the UK, and remains the biggest recipient among developing countries. Statistics show that China attracted FDI worth some US $72.4 billion in 2005, a surge that UNCTAD experts largely attributed to transnational mergers.

China has overtaken Germany to become the fifth-largest patent applicant, behind Japan, the US, the European Patent Office and South Korea. The recently released WIPO (World Intellectual Property Organization) report on global patent activities shows that China’s patent applications have surged seven-fold in the past ten years. However, fully half of China’s patent applications in 2004 were submitted by foreign companies operating inside the country, in contrast to a domestic majority in Japan and South Korea.

Beijing-based Yayuncun auto market reports rocketing sales.

Accelerating Demand for Autos in China

Global marketing information company ACNieslen has released a research report that shows China’s auto retail sector is in top gear. More than 13 percent of respondents in Beijing, Shanghai and Guangzhou said they were considering buying a private motor in the coming 12 months, compared with 6 percent in 2004. It also revealed that 19 percent of households surveyed in the three metropolises own sedans, a sharp increase over 7 percent in 2004.

Consumer Electronics Growth to Slow Down

Isuppli, a leading high-tech market research company, reckons that the volume and of China’s consumer electronics products will increase by 16 percent and 14 percent respectively this year. However, it also predicts that the sector is set to slow in the years to come. China’s electronics market is rapidly becoming saturated, and few domestic brands have managed to establish a global reputation. Many companies reel off practically identical products, and then try to undercut their rivals. This has pushed profit margins down to a national average of a mere 2 percent.

With renewable energy resources equivalent to some 7.3 billion tons of standard coal, China is currently exploiting the paltry equivalent of 40 million tons. The competitive disadvantages brought about by higher costs are hindering more widespread use of renewable energy. Compared with thermo-power generation, electricity generation costs 20 percent more if produced in small hydropower stations, 70 percent more if biomass-fueled. It also costs 70 percent more for wind power generation, and 10 to 17 times more when generated by solar cells.

A Yiwu small commodities trade center.

Small Commodities Index Launched

In late October, the Yiwu China Small Commodities Index debuted on national TV channels, as well as the Ministry of Commerce’s website. Located in Zhejiang Province, Yiwu is widely known for its thriving small commodities trade. It has economic ties with more than 200 countries and regions around the world, and an annual trade volume around US $30 billion. Its perennially bustling wholesale centers are deemed the bellwether of the sector worldwide from the aspects of sales, storage, logistics, visitor volumes and prices. The Yiwu Index is therefore known as the "Dow Jones of small commodities trading."

Chinese Home Appliances Manufacturers Respond to EU Regulations

European regulations on the use of hazardous substances in electrical and electronic products are forcing Chinese manufacturers to turn green. The country’s big name manufacturers are coming up with eco-friendly designs and product upgrades. For instance, TCL has in the past three years sourced more than 500 parts suppliers whose products meet the required standards. But smaller Chinese domestic electric appliances companies are having a much harder time trying to meet these standards.