Friday, February 13, 2009

Legend Is China's Top Electronic Product Manufacturer

According to a new list of top 100 electronic product manufacturers in China, Legend Group remains the country's top electronic product makers for sales in 1999. 

Last year, Legend recorded 20.3 billion yuan (US$ 2.4 billion) in annual sales. The Shanghai General Electronics Group and TCL Group came in second and third respectively, said the "Economic Information Daily." 

Total sales of the top 100 electronic products manufacturers amounted to 304 billion yuan (US$ 36.6 billion) last year, surging a year-on-year 28.1 percent to account for 71 percent of China's electronic sales in the year. 

Most of these enterprises are state-owned or state-owned holding companies and 15 are joint venture companies. 

The top 100 List was first introduced in 1987 and has been updated 14 times. 

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Last year, Legend recorded 20.3 billion yuan (US$ 2.4 billion) in annual sales. The Shanghai General Electronics Group and TCL Group came in second and third respectively, said the "Economic Information Daily."

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Chinese Manufacturers Attempt to Ditch "Cheap" Image


    It's already conducting market testing for its high-end SUVs in the world's biggest consumer market – theUnited States, and now Chery, a leading Chinese automaker, is eying Latin America as the fastest-growing market. Urban Latin Americans are potential buyers of reliable, but inexpensive Chery cars.


    The Anhui-based Chery and its peers hope to copy the South Korean miracle of expanding auto sales into every corner of the world. A Chery senior manager said at the Changchun International Automobile Fair that his company was planning to launch, with Argentina's SOCMA Group, a joint venture in Uruguay.


    Cars are not the only Chinese commodities flooding Latin America. Guangdong-based home appliance giant Gree supplied about 2,400 air conditioners for the Pan American Games media center and athletes quarters in Rio de JaneiroBrazil. Some 5,600 athletes and journalists from 42 countries and regions cooled off to China-made air conditioners.


(The Haier resembling line)


     ZTE Corp., a Chinese telecom supplier, sold 1 million cell phones in the first half of 2007 in Venezuela and plans to invest in a local cell phone manufacturing base churning out more ZTE handsets. With relatively low prices, high quality and technological advantages, including 3G and other technologies, ZTE has drawn local partners in BrazilPeruVenezuelaArgentina and Colombia. The latest available revenues of ZTE in Latin America were 400 million U.S. dollars in 2005.


    China also has some already recognized brands, such as Haier, the world's fourth largest electric appliance manufacturer, which has been promoting innovative high-end refrigerators since April in Latin America. Haier says it has received orders from dozens of countries.


    To some extent, these quality products have provided a counterbalance to recent controversies over Chinese exports to the rest of the world. The "poisonous toothpaste" issue, the Panama medicine issue and the U.S. ban on marine exports earlier this year aroused distrust of Chinese exports worldwide. For some, "Made in China" seems to mean "Buyer beware".


    Foreign Ministry spokesman Qin Gang has said that China had been very responsible to ensure the quality and safety of its exports, in processing, packaging, delivery or sales. The government has striven to implement laws to supervise and manage the product manufacturers.


     More than 99 percent of food exports to the U.S. in the last three years met U.S. quality standards, higher than the equivalent figure for U.S. food exports to China, Qin said. "Products with problems are a tiny minority, those reported by the media cannot blemish all Chinese exports."


    Qin acknowledged the controversial products stemmed from misunderstanding, unscrupulous vendors at home and abroad, and different regulations and policies in imports and exports examination between Chinaand other countries.


    Lin Wei, a senior official with the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), says that the government has focused on food safety problems and increased regulatory oversight gradually.


    The AQSIQ announced on July 11 that toothpastes containing diethylene glycol (DEG) were banned from import and export. In exceptional cases that the chemical finds its way into toothpaste with other ingredients, quantities must not exceed limits set by importing countries or regions. Toothpaste factories have been banned from using EG as an ingredient.


    The AGSIQ says the long-term use of toothpaste in which the DEG content is less than 15.6 percent would have little adverse effect on the human body. None of the data suggested that toothpaste containing this substance had directly led to the harm.


    The statement was intended to highlight China's efforts in raising industry standards to the levels of those in other countries.


    The Oral Health Supplies Certification and Management Regulation has been formulated by the State Certification and Accreditation Administration (CAA) and the Ministry of Health. The CAA is also drawing up stricter certification and grading procedures for the toothpaste industry in China in line with the oral health supplies certification standard of the American Dental Association.


    No evidence was found to support any organized violation of product safety standards in China and the government has taken drastic measures to locate and punish companies that do break the law. However, voices of doubt abroad may still deter consumers from treating Chinese goods objectively.


    Yu Lixin, a research scholar at the Chinese Academy of Social Sciences' Institute of Finance and Trade Economics, urged Chinese firms to improve the image of Chinese products.


    "China should satisfy the demand for higher-end products in the international market by adding innovative features," Yu said. "China should transform itself as soon as possible from a powerful trading country to a country with innovative competitiveness."


    Competitive Chinese companies, with their own intellectual property rights, are advised by Yu to show their products at international fairs and other global showcases.


    Future international competition lay in struggling for intellectual property, technical standards, and other non-tariff barriers, Yu warned.


    "The government will play an irreplaceable role in perfecting the industry technical standards, which can't be accomplished in a short time," Yu said.


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Thursday, December 25, 2008

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Saturday, August 9, 2008

India Tries to Learn from China Olympics

Olympics August 5, 2008, 9:31AM EST

When it comes to infrastructure, Delhi officials say they'll prepare for the 2010 Commonwealth Games by taking lessons from Beijing
by Shantanu Sharma

The Romans did it first. Now the Englishmen are at it. When the plans were revealed for London's Olympics stadium, a "coliseum-style" setting in east London, skeptics raised eyebrows at the idea. But now, after China managed to break through the $20-billion barrier for this year's Olympics, nothing seems impossible. As a matter of fact, it seems that hosting big-ticket games is the best way for a city to shed its old skin.

According to Chinese estimates, the total amount being spent on sports facilities in Beijing is not more than $2 billion. The number of Olympics facilities being built is also not big. Most of the money is going into renovating faulty infrastructure and creating new ones. So can it be safely assumed that the games are just a catalysts for fast-forward development?

Possibly Beijing is a glaring example of it. Similarly, India's preparation for the 2010 Commonwealth Games is a case in point. The buzz in the administrative circles is that compared to the approximately Rs 84,000 crore that China is spending for the Olympics, India might foot a bill of not less than Rs 65,000 crore for the Commonwealth Games. And in both cases, the funds are mainly being directed towards overhauling the infrastructure.

Actually, it's not very difficult to decipher why both Delhi and Beijing require such big investments. Beijing's new infrastructure includes some of the world's most extraordinary structures. The brand new passenger terminal at the Beijing Capital International Airport, for instance, is touted to have a floor area larger than all five terminal buildings at London's Heathrow Airport. The Beijing subway expansion plan is also impressive. And the number of the sports facilities constructed for the Olympics, including the National Stadium and the National Aquatics Centre, are also modern and radical structures that could have been only built by state-of-the-art technology. And all these require money.

India, too, is not very far from pulling off a similar feat. Says Delhi chief minister Sheila Dikshit: "Our officials will go to Beijing. We will definitely implement all good lessons learnt from the Beijing Olympics. However, let me say that we are very much on track for the Commonwealth Games. Thanks to the Asiad in 1982, Delhi already has a solid infrastructure for sports in place. These are being refurbished. Delhi's overall infrastructure is also being upgraded with a deadline of 2010. In addition to better Metro connectivity, we will have 5,000 to 6,000 modern buses plying in the city by then."

So how much is being spent only on sports facilities then? Not much, if official figures are anything to go by. Almost half of the total money being spent will be concentrated in developing new power plants. Sports facilities would not cost a bomb. For instance, for the Commonwealth Games in the capital, it's only around Rs 2,300 crore that will be spent on developing sports facilities, of which Rs 1,000 crore will be spent for the construction of five stadiums. Delhi Development Authority (DDA) will spend Rs 465 crore for developing a Games village and another Rs 850 crore on a public private partnership (PPP) model for building residential complexes within the village.

Compare this to the mammoth Rs 20,000 crore that has been earmarked for the completion of the Metro in the capital. It might look coincidental but Beijing's subway expansion plan also aims to make what was a two-line system into the world's most far-reaching underground network in less than a decade. And it all started with the hosting the Olympics.

Closer home, Vinayak Chatterjee, chairman of Feedback Ventures, says that political and bureaucratic hurdles in the infrastructure sector get mitigated if mega sports events such as the Commonwealth Games are organised. "Today, most of Delhi's infrastructure projects, whether it's the modernisation of the airport, construction of Metro link to the airport, or the Games village—all are linked to the Games. It's a global phenomenon. Such big sports events act as a stimulus for fast-track completion of mega infrastructure projects, overcoming routine political and bureaucratic hurdles," he says.
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