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Welcome to the December 2009 edition of China Pulse, the newsletter for the U.S. Commercial Service in China ("CS China"). CS China offers you the resources you need to grow your business in China. By partnering with CS China, the U.S. Embassy's and the Consulates' contacts and expertise are put to work for your business. Knowledgeable Commercial Service specialists and American Trading Center ("ATC") representatives can help you contact and set up appointments with Chinese organizations in 19 cities in China. Our customer service team can help you identify top regional markets and opportunities to export your product to China. Set up an appointment with with customer service team.

Sinoversity

Trade Events

  • Marintec China 2009
    December 1-4, 2009 (Shanghai)
    For the past 28 years, Marintec China has played a role in bringing international industry players together in one location to share the latest technology news and valuable experience this maritime conference and exhibition.
    www.marintecchina.com/

  • Automechanika Shanghai 2009
    December 9-11, 2009 (Shanghai)
    The 4th Automechanika was held at the Shanghai New International Expo Centre from 10 to 12 December and attracted over 30,500 visitors and more than 1,900 exhibitors. The next Automechanika Shanghai will take place from 9 to 11 December 2009.
    www.messefrankfurt.com

  • Meet Chinese Buyers: 2010 International Consumer Electronics Show (CES)
    January 7-10, 2010 (Las Vegas)

    Contact Vidya Kori with the U.S. Department of Commerce's International Buyer Program at 202-482-2311; www.cesweb.org
  • Opportunities in China for U.S. Clinical Diagnostic and Medical Device Firms
    January 14-15, 2010 (Durham, NH and Bedford, MA)

    This half-day event is focused on assisting U.S. medical device and clinical diagnostic companies with market entry strategies for China.
    www.buyusa.gov/newhampshire/cmef.html

News Flash

JLJ

CTR
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Broad Bright

China State Construction nets $100m US subway deal
China State Construction Engineering Corp, the largest contractor in China, has bagged a subway ventilation project worth about $100 million in New York's Manhattan area, marking the construction giant's third order in the United States' infrastructure space this year. In the first three quarters of this year, the Chinese construction giant signed more than $2 billion worth of contracts in the US market.
Source: CTR

China solar giant Suntech to set up 1st U.S. plant
China's solar panel maker Suntech Power Holdings Co., Ltd. said Monday it will set up its first U.S. factory in the Greater Phoenix, Arizona area. Steven Chan, Suntech's Chief Strategy Officer, said in Beijing the company will make an initial investment of 10 million U.S. dollars. The investment decision was made as the solar energy market grows rapidly in North America thanks to the region's pro-solar policies. The U.S. market had 356 MW of solar PV capacity installed during 2008 and is expected to grow six-fold to more than 2 gigawatts (GW) by 2012.
Source: CTR

China may slightly adjust macro-economic policies
One year after China launched the stimulus package and regained economic growth momentum, experts said the government was set to stick to pro-growth macro-economic policies while making minor adjustments in the prospect of inflation. The State Council said on Oct. 21 that China needed to balance the tasks of ensuring stable and relatively fast economic growth, adjusting economic structure and regulating inflation prospects. It was the first time this year that China's policy-makers made inflation control one of their priority tasks.
Source: CTR

60000 New Energy Vehicles Will Use In Public Transport Of China Within Three Years
Demonstration and extension of energy-efficient new energy vehicles have been initiated in China, and carried out in Shanghai World Expo, Beijing Olympics and 13 pilot cities. November 12, Zhanyuan Du, Vice Minister of Science and Technology indicated that, China plans for the 30 cities within three years of the public transport sector to promote the use of 60000 energy-efficient new energy vehicles, through giving financial subsidies to the use of energy-saving and new energy vehicles in public transport. At the same time, China's semiconductor lighting of public lighting will start a pilot in the first 21 cities, it is expected that to realize more than 200,000 semiconductor lighting applications by 2010, saving more than 100 million degrees. In addition, solar photovoltaic pilot project has also been included in the scope of the state financial subsidies.
Source: Ramrayt Co., Ltd.

New China Market Research

CS Banner

China: Green Building Opportunity

China has the world’s largest construction market. Over the next decade, China will build half of the world’s new buildings and is currently adding 2 billion square meters of floor space annually.1

According to China’s 2006 “Green Building Evaluation Standard,” a designated Green Building reduces pollution emitted, maximally protects the environment and reduces the consumption of natural resources such as water, land, and non-renewable energy throughout its lifecycle. Therefore, any technologies, products or services that help buildings to achieve this have a potential market in China.

Currently, 44 billion square meters of buildings exist in China. In order to meet China’s Green Building Standard many of those buildings need renovations for energy conservation. Additionally, it is estimated that by 2020, there will be an additional 30 billion square meters of new construction. All new buildings will need plans, designs and engineering that are in accordance with this standard.

In November 2008, the Chinese central government announced a 4 trillion RMB (586 billion USD) investment to stimulate domestic growth. The investment will focus on China’s infrastructure, including roads, power, healthcare, etc. Supplementary, each Chinese Ministry has their own investment plan for construction. With these initiatives and increased investments, the market for high quality building materials, new technologies and services in China is growing.

Because China mostly manufactures low-technology building products, there is a much larger market for specialized and cutting edge technologies. U.S. products must have niche markets and new technology.

To date, many U.S. companies have had success in the China’s market by using tactful market strategy, reasonable product prices, and full after-sale service. However, competition with European and other Asian countries presents U.S. companies with a challenge when trying to penetrate China’s market without specialized and well targeted promotion. We hope this report will give U.S. companies some guidance on the China green building market.

For full guide please go to http://www.buyusainfo.net/docs/x_9332760.pdf

China: Radio Frequency Identification (RFID) Industry

In China, the world’s third largest economy, Radio Frequency Identification (RFID) has been developing rapidly with substantial support from the Chinese government. RFID is a system which can be used to track any good that includes an imbedded computer chip; such goods can be tracked when they pass close to another electronic device known as a “reader”. Gartner Inc., a well known information technology and advisory firm, estimates that the global RFID industry will enjoy a compound annual grow rate of almost 15 percent from 2008 through 2013, increasing in size from just over USD 5 billion in 2008 to USD 9.8 billion in 2013. China’s RFID market totaled approximately USD 735 million in 2008, or approximately 15 percent of the world’s total. However, China’s RFID market is forecast to grow even more rapidly than the rest of the world at an annual rate of 21 percent reaching USD 1.3 billion in 2011. Guangdong province, the province with the largest economy of China’s 31 provinces and provincial-level cities, has taken the lead in China’s RFID technological development and application.

For full guide please go to http://www.buyusainfo.net/docs/x_9326724.pdf

For other Market Research Reports, search the Market Research Library.

Featured Articles

 

The Coming Wave of Consolidation in Chinese Industries

CBR

Consolidation within industries will be a central theme in China's efforts to restructure its industries and promote industrial modernization in the coming years. The significance of consolidation for China and why it is likely to take place are particularly acute questions during the current economic crisis, when firms within certain industries are under great pressure to perform, merge, be acquired, or vanish.

The consolidation process can be thought of as a rationalization within an industry where firms that are not operating at their full potential either go out of business or are folded into more efficient firms. The competitive process generally leads to firms operating at an optimal size within an industry, depending on such factors as market-based or geographic niches. In the early stages of an industry, when companies usually make above-average profits, firms of varying levels of efficiency are able to stay in business. Furthermore, with new entrants the number of firms in the sector surges. Eventually, though, inefficient firms drop out and industries stabilize with fewer, but on average larger, companies. Innovation and regulatory changes put pressure on inefficient firms, and the macroeconomic slowdown will reduce profits; these developments force inefficient firms out of business and are among the major causes of industry shakeouts.

These major causes—combined with government encouragement—set the stage for widespread industry consolidation. China's industries are just beginning this process. As Andy Rice, senior vice president for International Business at the Jordan Co., puts it: "There will be a lot of opportunities from consolidation in China, and many reasons for consolidation to occur." As consolidation unfolds in China, a number of opportunities will emerge that could provide enormous benefits for Chinese consumers, surviving companies and employees, investors, and businesspeople who assist in the process.

For full guide please go to http://www.chinabusinessreview.com/public/0911/schramm.html

Survey Reveals Cautious Optimism

CBR

Each year, the US-China Business Council (USCBC) surveys its members on their views of their priorities when doing business with China. The results provide a useful update on business and investment conditions and form the basis of USCBC's work on behalf of its members.
This year's survey was conducted in June 2009, when global economic data was still looking dim. Though survey responses indicate that US companies have seen the recession's impact on their China operations, China has remained a bright spot for companies in the midst of the global slowdown.

Familiar business problems in China remain unresolved, however. Business licensing, market access in services, the ability to navigate China's standards-setting system, and the protection of intellectual property rights (IPR) remain areas in which foreign companies face problems. In addition, companies again cited protectionism in China as one of their top 10 concerns, noting in responses to separate questions a trend in PRC policies that seems to favor domestic industries over foreign competitors.

Given the overarching themes that dominate the survey results and the unique situation created by the global recession, much of this year's survey report focuses on members' views of these broader topics.

For full guide please go to http://www.chinabusinessreview.com/public/0911/survey.html

The American Chambers of Commerce in China

BJ AmCham
Shanghai AmCham
South China AmCham Logo

AmCham China (Beijing)

AmCham Shanghai

AmCham South China

SAVE THE DATE: AmCham-China Charity Ball

Committe of 100's Third Greater China Conference

AmCham Shanghai Completes Successful Washington, D.C. Doorknock

5th Annual AmCham Shanghai Corporate Social Responsibility Conference and Awards

AmCham Shanghai 9th Annual Shanghai Government Appreciation Dinner

 

Attend for free or exhibit for half the price at the Shenzhen Logistics Fair this December

Join the 2009 International Christmas Party on Dec 12th

 

AmCham-China Now More Than Ever is Your Critical Business Resource

If you’re serious about success in China, you should consider joining AmCham-China. We mean business for companies of all sizes. We help our more than 2,600 individual members from over 1,200 companies succeed in China by providing unparalleled government advocacy, a wide range of networking opportunities, valuable information and intelligence, and comprehensive business support services.

 

The American Chamber of Commerce in Shanghai, known as the “Voice of American Business” in China, is the largest and fastest growing American Chamber in the Asia Pacific region. 

AmCham Shanghai’s mission is to support the success of our members by promoting a healthy business environment in China, strengthening U.S.-China commercial ties and providing high-quality business information and resources. Visit the AmCham Shanghai membership page to find out how you and your company can benefit.

The American Chamber of Commerce in South China is a non-partisan, non-profit business organization, certified in 1995 by the U.S. Chamber of Commerce in Washington D.C. AmCham South China represents more than 1,200 American and International companies doing business in South China.

For more membership information please visit our members page.

 

Why choose the Commercial Service?

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CS China offers the resources you need to grow your business in China. By partnering with CS China, the U.S. Embassy's and the Consulates' contacts and expertise are put to work for your business. Knowledgeable Commercial Service specialists and American Trading Center ("ATC") representatives can help you contact and set up appointments with Chinese organizations in 19 cities in China. Our customer service team can help you identify top regional markets and opportunities to export your product to China. Set up an appointment with with customer service team.

China Pulse is Commercial Service China’s official e-newsletter! Inside you will find the latest business news, exciting export opportunities, and inside strategies to help you maximize your success in the China market today! Subscribe to the China Pulse.

For companies interested in providing content for this newsletter or for distribution at events, please contact us by email at chinabic@mail.doc.gov.


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