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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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Apple: Another Lesson on What Not to Do in China

Sometimes, too much success in China can create its own set of challenges. Ironically, the very success that Apple Inc. (NasdaqGS: AAPL) has had selling its products to Chinese consumers may be at least part of the reason why the Cupertino, California company found itself at odds with the powers that be in China in [...]

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China’s Workers Find Their Voice

In 2010, China’s workers found their voice. Emboldened by the country’s new labor law, encouraged by China’s continued economic progress, and frustrated that they are not sharing enough in the wealth being created, workers have found new ways to demonstrate their dissatisfaction. Ten workers at Foxconn’s giant factory in Shenzhen expressed their discontent in the [...]

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Danone/Wahaha: The Final Chapter

Danone/Wahaha: The Final Chapter

In what seems like ages ago, we wrote a series of posts on the legal battles between Danone, the large French food company, and Wahaha, its partner in China. Over the holidays, it was announced that Danone will quit the joint venture and be bought out by Wahaha. The following post tells the story. Danone [...]

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China’s Ore War

Expect it to be a long one. A lot’s at stake. U.S. Commerce Secretary Gary Locke may urge China to follow “due process” and communicate with the Australian government in the Rio Tinto case. Australian Prime Minister Kevin Rudd may warn China that its foreign trading partners will be closely watching the outcome of the [...]

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The Futures Market in China

By Mick Zomnir China’s futures markets began with the trading of commodities futures in 1990 and experienced a quick and steady expansion until the middle of the decade, when loopholes in the regulatory scheme led to problems of fraud and extreme speculation. At that time, a variety of scandals forced the Chinese authorities to clean [...]

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New Consumption Taxes on Cars Unlikely to Change Purchasing Habits

China’s Ministry of Finance and National Tax Bureau has announced changes to the consumption tax on passenger vehicles. Effective September 1, the consumption tax on cars with engine displacements below 1.0 liter will be cut from 3.0 percent to 1.0 percent, and the tax on cars with 3.0 liter to 4.0 liter engines will be [...]

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Visas

As anyone who lives and works in China knows, obtaining visas is becoming a bigger and bigger problem here. So much so that some, like the Australian foreign minister, are warning that this could harm future trade and business. In a recent interview, Stephen Smith told reporters in Hong Kong: “It is important that the [...]

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Arbitration: Only The First Step

The Wall Street Journal recently ran an article regarding arbitration in China that described the pros and cons of Western companies submitting to arbitration in China or insisting on arbitration in more neutral venues such as Sweden.  It’s an excellent article as far as it goes, but what it doesn’t emphasize is that arbitration is [...]

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Danone/Wahaha: Learning From Crisis (Part 9)

Danone/Wahaha: Learning From Crisis (Part 9)

From all outward appearances, the Danone/Wahaha affair, one of the most spectacular and visible disputes between a prominent foreign company and its Chinese partner, is speeding to a resolution as quickly as it seemed to spiral out of control in the middle of 2007. In the latest announcement, Emmanuel Faber, one of the key persons [...]

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