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China’s Debt: How Serious Is It?

In a report ordered by China’s State Council last June, the country’s National Audit Office reported in December that the debts of China’s local governments had increased to RMB 17.9 trillion ($3.0 trillion) by the end of June, 2013. This amount, which includes contingent liabilities and debt guarantees, represents a 70 percent increase from the [...]

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China’s SOEs: Expect More Focus on Profitability

China’s State-Owned Assets Supervision and Administration Commission (“SASAC”) will now begin focusing more on profitability, not sales, in evaluating the performance of the state-owned enterprises (“SOEs”) that it supervises. This shift will have many implications for SOEs as well as their international counterparts in both China and the global marketplace. Despite the fact that China’s [...]

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China’s Two Sides (Part II): How Not to Treat a Chinese Partner

This is the second article about the stalled acquisition of Cooper Tire & Rubber Co. (NYSE: CTB) (“Cooper”) by India’s Apollo Tyres Ltd. (Bombai: APOLLOTYRE.BO) (“Apollo”). For background information click on to China’s Two Sides. Anyone doing business in China knows that establishing “mutual trust” with your partners, customers and colleagues is a key success [...]

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China’s Two Sides

Beijing and Shanghai are two of the most modern cities in the world. Their skylines rival any others; their streets are filled with the latest and most expensive automobiles; and their stores display the logos of the world’s most exclusive and expensive luxury brands. Beyond the physical appearances of the cities themselves, the companies that [...]

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The Global Auto Forum 2013: Let Volvo Be Volvo

The fourth annual Global Auto Forum (“GAF”) was held in Wuhan last week, and by all measures, it was the most successful ever. Building upon the success of the first three conferences, all of which were held in Chengdu, the GAF has become the leading automotive conference in China. Over 1,000 representatives from the Chinese [...]

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Chinese Carmakers Go Global

You may not see Chinese cars in showrooms in the United States, Germany or Italy anytime soon, but you’re liable to see them everywhere else you travel. While emissions, safety and quality requirements in the most developed countries of the world may be too difficult for China’s local car makers to overcome in the near [...]

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China Autos Speeding Ahead

China’s overall economy may be growing slower than expected, but don’t tell that to China’s auto makers. Unit sales for the first six months of 2013 grew by an amazing 17 percent to 7.8 million. That’s more than twice the rate of overall economic growth projected for China in 2013. The World Bank’s latest forecast [...]

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Managing an Empowered Work Force in China

  By now, many people have heard of Chip Starnes, the 42-year-old CEO of Florida-based Specialty Medical Supplies, who was held for six days against his will in the company’s suburban Beijing factory. Starnes has appeared on CNBC Squawk Box, Bloomberg and countless other news shows, and the story of his “detainment” has been covered [...]

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Smithfield and Shuanghui: Two Pigs in a Blanket?

It may not be the oldest profession in the world, but pig production has to be up there in terms of history. China has been producing pigs for more than 2,000 years, well before the United States was even a gleam in the eyes of the Founding Fathers. So, how can the largest pork producer [...]

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Canada Greenlights CNOOC’s Purchase of Nexen

Last Friday, the Canadian government approved China’s biggest overseas energy acquisition, a $15.1 billion takeover of Nexen Inc. (NYSE: “NXY”) by CNOOC Ltd. (NYSE: “CEO”). State-owned CNOOC is China’s largest offshore driller, while Nexen is a Calgary based independent energy company that operates in Canada, the United Kingdom, and the United States, and offshore West [...]

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