On Saturday, the Washington Post’s Ariana Eunjung Cha reported on efforts by Shenzhen-based Huawei to acquire 3Com, a leading US manufacturer of telecommunications equipment. The story, entitled, “Telecom Firm in China Sets Sights on US market,” describes US opposition to the deal, and specifically points to concern among US government and industry officials about Huawei’s…
All posts in Business and Trade
The Ministry of Making Things Much, Much Worse
[Very light posting as of late. I’m in the midst of a new – and very large – project. More on that soon.] Inflation is up and this time, darn it, Beijing is serious about making sure things don’t get out of control. Arguably, of course, they already are: in November, food prices were up…
Santa’s Chinese Workshop
Posted on Author AdamPosted in Appreciations and Recommendations, Arts, Business and Trade, Labor6 Replies
Below, a photo of a Christmas ornament workshop in Zhejiang Province. Statistics are difficult to come by, but this workshop is located in a section of Zhejiang known for producing a very large percentage of China’s Christmas exports (the country is reportedly the source for 80% of the world’s Christmas ornaments and accessories). And, according…
A few thoughts on this Bao Steel-Rio Tinto business.
For those who don’t follow the intricacies of the international iron ore trade, here’s the deal: BHP Billiton, the world’s second largest iron ore supplier recently announced an unsolicited, US$130 billion bid for Rio Tinto, the world’s third largest iron ore supplier (both are Australian). Combined, the two companies would control roughly 40% of the…
The Shanghai Cable Guy and the Future of Chinese Quality
The other night I was startled by the smell of burnt rubber wafting into my living room. I immediately went sniffing for the source, and after a very brief search I noticed smoke coming from the electrical socket connected to the space heater in my bedroom. The cable was hot as I pulled it from…
This Seems Like a Bad Idea.
I have an uneasy feeling that I may be the last person in Shanghai to notice that there is a pharmaceutical dispensing machine on the edge of the city’s best (if not largest) fake market. And even more uneasy to think that such machines are common throughout China – if not the world – and…
The Price of Mowing the Lawn
Over the last month I’ve spoken to several Chinese factory owners who claim that their biggest challenge is the rising price of skilled and semi-skilled labor. In Tianjin, for example, two separate owners told me that the price of skilled machinists had risen 30% over the last year to roughly RMB 3000 (US$378) per month.…
China National Petroleum to Dead Workers: Blame Yourselves.
As noted by Shanghaiist, a recent fatal explosion at a gas station in Pudong is garnering international attention. No surprise, the international coverage doesn’t mention a cause because – let’s face it – no Shanghai bureaucrat wants to be the one pinning responsibility on China National Petroleum Corporation, the state-owned oil monopoly that happens to…
The Pearl Harvest
Cheap freshwater pearls are an entitlement in Shanghai and Beijing. Locals tell me where to buy them; expats tell me what to pay for them; and tourists like to show me carry-on bags filled with them, destined for listing on ebay (US-based flight attendants are very well-represented in this last group). Which brings to mind…
China to Australia and Brazil: More Price-Fixing, Please
I’ve argued on this blog, and elsewhere, that Beijing really doesn’t mind price-fixing and cartel behavior – so long as the cartels and price-fixers are working in Beijing’s (perceived) best interests. And those interests are usually best represented by state-owned industries. For Beijing’s economic policy-makers, few commodities need to be “fixed” more than the the…