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 2014: MTD’s Predictions for the New Year

As the New Year dawns, one of the biggest domestic issues facing China is the dense smog that hovers over its major cities most days. The country’s most serious international flash point is its ongoing dispute with Japan over ownership of a group of islands in the East China Sea, a dispute that now threatens [...]

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2013 Predictions: How Did We Do?

As another year draws to a close, it’s time to take stock and to see just how clear our crystal ball was last January. With new leadership in place, general economic uncertainty and the overhang of the Bo Xilai trial, there were plenty of questions about China as we entered 2013. The audiences that I [...]

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China Cross-Border M&A Continues

In one of the larger overseas industrial acquisitions ever by a Chinese State-Owned Enterprise (“SOE”), Shanghai listed (600458.SS) Times New Material Technology Co., Ltd. (“TMT”) announced last week that it agreed to acquire the Rubber and Plastics Business Unit of ZF Friedrichshafen AG (“ZF”) for $399.3 million. While a number of billion-dollar plus overseas deals [...]

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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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Happy Thanksgiving to Managing The Dragon’s Readers

Having lived in China for the past 20 years, one question I’m frequently asked is: “What about the United States do you miss most?” For my wife and me, the answer to that question is easy—the holidays. On the Fourth of July, Memorial Day, or Labor Day, when everyone in the States is taking a [...]

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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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The Changing Landscape Of Global Autos

What a difference twenty years makes. In 1993, China’s auto industry was producing less than one million vehicles per year and there were no Chinese passenger car makers. In 2013 China will produce over twenty million vehicles, and Chinese companies account for 35 percent of the total passenger car market. In 1993 the likes of [...]

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