Category: "News of China"
China hot on UK skills' heels
June 16th, 2007The UK must educate its workforce to compete in the global knowledge economy, writes Lara Williams
A skills crisis in the software development sector could seriously damage the UK’s ability to compete globally, according to the second of the Microsoft-commissioned Developing the Future (DtF) reports published last week.
The IT industry is growing five to eight times faster than the national average and needs 150,000 new entrants each year. But the number of students taking A-level computing has dropped 43 per cent from 2001 to 2006, and IT-related degrees almost halved from 27,000 to 14,700 between 2001 and 2005.
Technology skills are vital to the growth of the UK as a knowledge economy one relying on high-level skills rather than a manufacturing base or large pools of cheap labour.
At the moment the UK knowledge economy accounts for 41 per cent of gross domestic product, but the proportion is expected to rise to 50 per cent by 2010.
And without the right skills, the country will not be able to compete with overseas rivals. But it is not only established economies making the transition.
At the current growth rates China will surpass the UK in the near future, says Microsoft UK managing director Gordon Frazer, who is also a board member of sector skills council e-Skills UK.
‘The shift towards the knowledge economy in the UK presents great opportunities but we must be aware of the skills challenge,’ said Frazer.
The DtF warnings are not new. Only last month a government advisory group, the Information Age Partnership (IAP), released a report calling on government, industry and academia to work together to meet the needs of the EU i2010 knowledge economy agenda.
The IT industry does not simply need more people, says e-Skills UK chief executive Karen Price.
‘Whether I am talking to the IT industry or the chief information officer community, they are all telling me it is not the shortage of people but developing the right skillset to compete in the global marketplace,’ she said.
UK universities remain world-class at producing traditional computer scientists for research and development roles, says Price. But there are also vital non-technical requirements.
‘The new market opportunity is people combining business and technology skills and that is where the growth and skills shortage lies,’ said Price.
The private sector has a central role to play, says Paul Smith, managing director of offshore software development at recruitment consultancy Harvey Nash.
‘If each decent-sized company were to commit to providing excellent on-the-job training today, sponsoring students next year and working with a partner university on designing and funding a vocational course, the UK would be back on track in five years’ time,’ he said.
DtF recommendations include: a curriculum review of IT teaching in schools; encouragement to large software companies to enhance their education programmes; and pilots to establish how to form effective links between industry and academia.
Ahead of Olympics, China faces charges of child labor
June 16th, 2007Beijing - When a British-based labor consortium charged this week that factory workers as young as 12 are toiling to produce gear and souvenirs licensed by Beijing for its 2008 Olympics, China's reaction was swift.
Beijing officials announced they would deal "seriously" with factories that violate China's "very strict" labor codes. But the negative publicity – along with other reports that the problem goes beyond production of Olympic-related memorabilia – comes at a sensitive moment for Beijing as it seeks to burnish its international image ahead of the games.
Some observers say that the latest reports represent a weak point in China's otherwise strong record of enforcing child labor laws – especially at a time when child labor is on the decline worldwide.
Playfair Alliance, which targets sporting goods and athletic merchandise, reported this week that child labor in China is not limited to a few factories making Olympic souvenirs but may be a growing, potentially widespread problem spurred by increasing labor shortages and rural poverty.
Another survey report from the Hong Kong-based China Labour Bulletin, which investigated a growing underage labor force in several small towns, found that poorly funded rural schools and a higher-than-recorded school dropout rate are forcing many children to work before the law allows.
In small towns across the vast Chinese countryside, kids age 13, 14, and 15 – below the legal working age of 16 – are entering the workforce as factory owners and other employers turn a blind eye, according to the report.
"Looking at the results of our on-site surveys, and reports in the Chinese media … we do not believe that the child labor problem in China has been suppressed that effectively," said the China Labour Bulletin's report.
A 2006 study from the International Labor Organization (ILO) said that overall, child labor has been reduced by 11 percent in the past four years worldwide.
Despite the recent studies, conclusive figures aren't available in China, so no true comparison is possible. The Chinese government considers the topic too sensitive to allow international groups to conduct widespread national investigations of how many under-age workers appear in the labor force.
With the problem not yet quantified, labor-rights groups are relying on bits and pieces of information they can gather by interviewing factory workers, families, and school authorities. The anecdotal evidence shows increasing pockets of child labor, especially in the poorest areas and in factories that operate as subcontractors to major producers.
"We haven't done a national study, but the assumption is that this is a national problem and therefore deserving of attention from the national government," says Robin Munro, research director of China Labour Bulletin.
Some officials doubt reports
Even with the new charges regarding Chinese child labor infractions, some officials doubt the credibility of the China Labour Bulletin report. Constance Thomas, director of the ILO for China and Mongolia, says that without a thorough, conclusive study of the national scope of the problem, no one knows for sure what's happening. Ms. Thomas has been trying to convince the Chinese government to undertake a major prevention campaign, but the mere mention of child labor has been too sensitive.
Thomas says she doesn't see a widespread problem, especially when comparing China with countries like Pakistan and India where children age 8 and 9 are routinely found working. China's doing pretty well, she maintains.
"We're not picking up yet on any large numbers of child labor; we're just not," says Thomas.
However, she says, "There are pockets of child labor, and my concern is that they may be growing."
There are "magnet factors" that could lead to a growing reliance on child labor, Thomas says, and China, with its previous track record in avoiding child labor, should address them. The three magnets, she says, are pockets of labor shortages, increasing numbers of privately owned business, which are more prone to unscrupulous hiring, and the huge mobility of the nation's workforce.
Migrant work contributes to problem
China has as many as 200 million migrant workers who have left hometowns and provinces to fill its factories. At least 20 million of their children have been left behind with relatives and the kids are often forced to work when they reach their teenage years. Those who travel with their parents face prohibitively high school fees that can make work seem a more plausible option.
China needs to play to its strengths, says Thomas and others. For one, its standards are higher than the ILO's, which considers anything under age 13 child labor. The Chinese government has set its minimum working age as 16, with limited working hours, or 18, for dangerous jobs with longer hours.
Anita Chan, a China labor scholar at Australian National University, says quantifying the child-labor problem is difficult, particularly when the country is having a difficult time enforcing labor standards for adults. In any case, she says, the country should stay firm to its strict anti-child labor laws and enforce them. Certainly, she says, government officials must realize that in addition to giving a country political problems, child labor can have basic economic consequences.
"If you hire a lot of children, the grown-ups won't have jobs," says Ms. Chan.
U.S. recruitment firm Kelly Services taps China mkt
June 11th, 2007HONG KONG, June 4 (Reuters) - U.S.-based Kelly Services Inc. , the world's fifth-biggest recruitment firm, said on Monday it was expanding into China by acquiring a staffing company with offices in seven cities in mainland China.
Kelly Services, which is based in Troy, Michigan, said it had agreed to acquire P-Serv, a privately owned company which is based in Singapore but has offices in Hong Kong and seven cities in mainland China, including Beijing, Shanghai and Guangzhou, as well as second-tier cities Chengdu and Suzhou.
It would not disclose how much it had paid for the Singapore company but said the acquisition would enable it to do executive search, middle-management placement and temporary and contract staffing in China.
"We've got a number of multinational clients worldwide who are finding it difficult to find talent in China and want to use a recruitment company that has integrity," Dhiren Shantilal, Kelly Services' senior vice president for the Asia-Pacific, said by telephone.
A shortage of managerial talent in China has created a tight labour market and foreign companies face difficulty keeping staff amid rampant poaching.
Kelly's clients include Intel Corp. , the world's top chip maker, which has operations in second-tier cities Chengdu and Dalian. Shantilal said Kelly hoped to expand into three more second-tier cities in the next six to eight months.
He estimated that revenues earned by recruitment companies in China amounted to about US$2 billion in 2006 and would probably reach US$3 billion in 2008.
Foreign recruitment firms have been eying expansion in China since Beijing last year partially relaxed restrictions on investment in the sector.
In February this year Chicago-based Hudson Highland Group Inc , the world's sixth-biggest recruitment company, acquired a Chinese IT recruitment firm to better serve its multinational clients.
Kelly Services to expand in Asia
June 11th, 2007Kelly Services Inc. said today it has acquired an Asian staffing firm that will expand Kelly's reach in the Pacific region.
Troy-based Kelly said it will purchase P-Serv, a company that offers temporary and permanent staffing, recruiting and outsourcing services in mainland China, Hong Kong and Singapore.
Terms of the deal were not disclosed.
Kelly said China's staffing market is expected to reach $2.5 billion this year.
NetEase.com CFO, Board Member Resign
June 11th, 2007NetEase.com CFO Resigns for Personal Reasons; Board Member Also Submits Resignation
NEW YORK (AP) -- China-based online gaming services company NetEase.com Inc. said Monday its chief financial officer Denny Lee resigned, effective June 30, for personal reasons.
The company also said Donghua Ding resigned from its board of directors.
Effective June 30, Onward Choi, the company's current financial controller, will serve as acting chief financial officer, the company said.
American Depositary Shares of NetEase.com rose 46 cents, or 2.6 percent, to $18.29 Monday
Lenovo Loses One of Its Most Familiar Chinese Faces as CFO Ma Retires
June 11th, 2007MORRISVILLE, N.C. – The abrupt announcement last week that Mary Ma was stepping down as chief financial officer at Lenovo could be a sign of internal wrangling among the PC company’s management.
At least that’s the word from Forbes magazine.
“Her retirement as chief financial officer, ostensibly for unspecified ‘personal reasons,’ probably signals the end of Lenovo’s effort to merge its mostly China-focused operations, along with a Chinese management culture, with IBM’s America-centric international PC businesses, and the beginning of a phase that will focus more on cost-cutting and boosting efficiency,” wrote Shu-Ching Jean Chen out of Forbes’ office in Hong Kong.
Ma, whose Chinese name is Ma Xuezheng, is only 54 years old and has been with Lenovo for 27 years. She also has been widely regarded as not only one of the most powerful women in China but also in the world. In fact in 2005 and 2006 Forbes ranked her as one of the globe’s most powerful female executives.
When Lenovo purchased IBM’s personal computing unit in 2005, Ma played a crucial role.
Ma’s departure was disclosed even as Lenovo reported a quarterly profit of $66 million that far exceeded analysts’expectations. The profit news also triggered a 15 percent surge in Lenovo stock.
But Ma is likely to be missed.
“Her straight-taking style and fluency in English have won her many fans in the financial markets,” Forbes said. “Over the years, she has built a reputation as a no-nonsense, trustworthy businesswoman, and analysts thought she had a firm grip on the company's finances.”
A source cited as a “senior company employee” at Lenovo told Forbes: “It might be a good time for her to retire when Lenovo seems to turnaround. But definitely it is a big loss to Lenovo as she is so instrumental to molding different cultures.”
Ma was more than just a Lenovo executive, however. She also had become a symbol of China’s private enterprise efforts. In fact, the prestigious McKinsey Quarterly published a lengthy interview with her in its April issue.
“The success of [the IBM] deal, heralded as a signal moment in China’s transition from a developing to an industrial economy, was due in no small part to Lenovo’s energetic senior vice president and CFO, Mary Ma,” wrote Gordon Orr and Jane Xing.
Ma told the reporters that cultural integration between companies of the east, such as Lenovo, and of the west, such as IBM, is quite a challenge.
“These East-West cultural differences are built into our identities from a very early age and affect the very basic ways that people interact,” Ma told The McKinsey Quarterly. “Many Chinese companies still don’t realize how much a long-term effort is needed for cultural integration at this level.”
Investment approval for firms eases
June 7th, 2007CHINA eased the approval process for state-owned companies investing abroad as the government tries to narrow the surplus of incoming payments from overseas.
State-owned companies investing less than US$30 million in overseas resource-exploration projects may apply directly to the central government's National Development and Reform Commission, the agency said on its Website yesterday. Other types of cross-border investments have a threshold of US$10 million. Approval previously had to go through local-level affiliates of the agency.
China Career Builder Corp.'s Subsidiary Asian Career Company Ltd. Retains Smart-Info Ltd. to Design Its Job Search Engine Website www.Jobs28.com
June 6th, 2007HONG KONG, June 5, 2007 (PRIME NEWSWIRE) -- China Career Builder Corp. ("The Company") (Pink Sheets:CCBX), a Delaware Corporation, is focused on outsourcing human resource services and staffing services in Hong Kong, China. The company is pleased to announce that Asian Career Company Ltd., a wholly owned subsidiary of China Career Builder Corp., has retained Smart-Info Ltd. to complete the webpage design and database design for its job search engine website www.Jobs28.com. The beta version of the job search engine website is expected to be ready for testing within the next two (2) weeks. The company will make further announcements about the official launch date for the job search engine website in coming weeks. For further information about Smart-Info Ltd., please visit their website at www.smartinfo.com.hk.
Freelancers admit uncertainty
June 5th, 2007A LOWER than expected income and a high level of uncertainty are the biggest problems facing freelance workers, according to a recent survey.
ChinaHR.com, a leading Web-based headhunter, asked more than 2,200 freelancers, including writers, artists and designers, about their attitudes towards their job, payment and future career plans.
More than 75 percent of the respondents said that they expected to earn a minimum payment of 3,000 yuan (US$392) a month, with 31 percent saying they hoped to earn 10,000 yuan or more.
Only about 40 percent actually earn 3,000 yuan a month, with about nine percent making more than 8,000 yuan, according to the survey.
"Most freelancers are young people with strong educational background and outstanding competence that makes them very confident about their own ability and the modern 'small office, home office' work model," said Zhang Tingwen, a human resources specialist at ChinaHR.
About half of the surveyed freelancers said they are satisfied with their income, while about 20 percent said they are barely able to eke out a living.
"My income is so-so, but the biggest problem is that you might earn several thousand yuan today and then sit idle for the rest of the month," said Zhu Jie, a freelancer who teaches Chinese to foreigners.
Zhu is not alone. The survey suggested that unsteady income was the biggest headache for freelancers, followed by a lack of career development prospect.
While freelancers have a great deal of freedom, more than 53 percent of respondents said they are confronted with high mental and financial pressure.
GF Securities president resigns amid scandal
June 4th, 2007THE president of GF Securities Co has resigned after China's stock regulator found irregularities during the broker's proposed backdoor listing amid a get-tough crackdown on stock-related crimes.
Dong Zhengqing, who was in charge of GF's daily operation, tendered his resignation letter on Friday and the board approved his quit on Saturday, the Shenzhen-based broker said yesterday.
Li Jianyong, former deputy president at the broker, will take over Dong's post temporarily. Dong left because regulators discovered irregularities during the broker's backdoor issuance, "which has cast negative influence on the broker,'' GF said.
China's stock-market watchdog said late last month that it plans to punish a raft of companies and executives involved in the listing of GF after it found improper disclosures and insider trading in the process.
GF, China's fourth biggest broker by 2006 revenue, in September proposed to acquire Yan Bian Highway Construction Co via a stock swap for the purpose of a back-door listing.
The China Securities Regulatory Commission said it would punish Yan Bian and one of its shareholders Jilin Aodong Medicine Industry Group as well as several people involved for improper information disclosures.
Earlier media reports said Li's brother made a profit of nearly 100 million yuan (US$13.1 million) by trading Yan Bian's shares through acquiring the information in advance.
GF yesterday denied any wrongdoing involving its executives and declined to comment further.
China's financial authorities are encouraging the country's biggest brokerages to seek public funds for expansion before the nation opens the fledgling industry to overseas competitors.
However, the CSRC is taking tougher actions to combat insider dealings and market manipulation as stock prices of companies involved in the back-door issues fluctuated even before the plans were made public.
China's mainland stock bourses only have two publicly traded brokers ¨C Citic Securities Co and Hong Yuan Securities Co.
GF, which is still awaiting approval for its listing, is set to become the third mainland-traded brokerage.
The resignation of its president won't hinder the broker's back-door issuance, GF said yesterday. It didn't give an estimate on when it would likely gain regulatory green light for the listing.
A slew of other Chinese giant brokerage houses including Haitong Securities Co and Northeast Securities Co have announced proposals for back-door listings, which were believed to be easier for firms to go public than initial public offerings.
The CSRC requires IPO candidates to post profit for three years in a row. Brokers including Orient Securities and Everbright Securities Co have said they would like to pursue IPOs as early as next year when they can meet the threshold.
Japan's fall in jobless boost Asian markets
May 30th, 2007ASIAN stocks advanced for a second day yesterday after reports in Japan showed an unexpected drop in unemployment and a rise in household spending, Bloomberg News reported.
Mizuho Financial Group Inc climbed to a three-month high, on speculation the improving economy will allow the Bank of Japan to lift interest rates, widening lenders' profit margins.
"The positive economic data from Japan is helping sentiment for the rest of the region," said Leslie Phang, who helps manage about US$1 billion at Commonwealth Private Bank in Singapore.
The Morgan Stanley Capital International Asia-Pacific Index added 0.7 percent to 149.26 at 8:01pm in Tokyo. Technology stocks rose after Sanyo Electric Co forecast its first annual profit in four years and CJ Investment & Securities Co said earnings at LG.Philips LCD Co will improve. Japan's Nikkei 225 Stock Average added 0.5 percent to 17,672.56, while the broader Topix index gained 0.8 percent. Mitsui O.S.K. Lines Ltd advanced after UBS AG reaffirmed its bullish stance on shipping companies.
BHP Billiton Ltd led mining stocks higher in Australia as prices of metals including copper advanced and on speculation of takeovers within the industry. Coles Group Ltd dropped after US buyout company Kohlberg Kravis Roberts & Co abandoned its nine-month pursuit of the Australian retailer.
Benchmarks rose, except in Hong Kong, Indonesia, Malaysia, Pakistan and Sri Lanka. Thailand was little changed.
Mizuho, Japan's second-largest lender by assets, rose 2.3 percent to 864,000 yen (US$7,100), its highest close since February 23. Sumitomo Mitsui Financial Group Inc, the third largest, advanced 1.7 percent to 1.18 million yen.
Sanyo, the world's largest maker of rechargeable batteries, jumped 10 percent to 213 yen.
BHP Billiton, the world's biggest mining company, gained 1.8 percent to A$31.70 (US$25.98). Rio Tinto Group, the third largest, climbed 2.4 percent to A$96.36.
People rush to train as social workers
May 28th, 2007MORE than 70 applicants have signed up for a training program to become professional social workers on a course run by the Labor and Social Security Bureau in Pudong New Area.
Lessons to teach basic knowledge of population and family planning kicked off last week, as part of the long-term program.
About 60 people signed up for the class, but organizers were surprised to find more than 70 joined the course.
"The course is designed to train professionals who can offer counseling services related to population and family planning," said Ji Zhongxian, a bureau official.
The training program, which will hold six classes over 10 days, will focus on introducing theories and concepts that a social worker should know.
Another training class designed for directors of residents' committees will also open soon - attracting more than 500 applicants so far.
The proactive approach focuses on theories and practical skills to solve problems, such as how to settle disputes among residents.
"Social work in Shanghai is still in its infancy and there are very few professional social workers at present," said Zhang Linqiang, bureau spokesman.
Zhang added that there are 20,000 professional social workers in Hong Kong, which has a population of six million. There are only 3,000 professionals in Shanghai, which has a population of 18 million.
"Pudong New Area developed social work as early in the 1990s, but among 60,000 social workers in this area, only about 250 people have obtained the certificate of professional social workers," Zhang said.
China Career Builder Corp's Subsidiary, Asian Career Company Ltd. Signed Additional Strategic Agreement
May 25th, 2007HONG KONG, May 23, 2007 (PRIME NEWSWIRE) -- China Career Builder Corp., ("The Company") (Pink Sheets:CCBX) a Delaware Corporation, is focused on outsourcing human resource services and staffing services in Hong Kong, China. The company is pleased to announce Asian Career Company Ltd. has signed an additional strategic agreement with Monster.com Asia Pacific Ltd., a division of Monster Worldwide Inc. Under the terms and agreement, Asian Career Company Ltd. will gain accesses to Monster.com registered users for the following regions, which including Singapore, Malaysia, Thailand, Philippines, Vietnam and Taiwan.
"We had a good start to the year in each of our businesses and continue to move forward to reach our goals. We are expecting continue to sign and formation strategic alliance in human resource and staffing services sector throughout Hong Kong and China. The level of activity in human resource and staffing service sector remains very strong, so we are optimistic about our continued progress and maintaining our leadership position in this emerging market," said Mona Yim, President and CEO of China Career Builder Corp.
ABOUT THE COMPANY
China Career Builder Corp. ("The Company") through its subsidiary, Asian Career Company Ltd. provides outsourcing human resource services and staffing services in Hong Kong, China. The company provides recruitment services focusing on the professional, management, clerical, administrative, IT and industrial market. Its services include screening, recruiting, training, workforce deployment, loss prevention and safety training, pre-employment testing and assessment, background searches, compensation program design, customized personnel management reports, job profiling, description, application, turnover tracking and analysis, opinion surveys and follow-up analysis, exit interviews and follow-up analysis, and management development skills workshops. The company markets its recruitment services through a combination of direct sales, telemarketing, trade shows, and advertising. The company is incorporated in Delaware, and headquartered in Hong Kong, China.
For further information please refer to the Company's website at www.ChinaCareerBuilder.com
If you would like to receive regular updates on China Career Builder Corp. please send your email request to info@ChinaCareerBuilder.com or contact the company's Investor and Public relations at ir@ChinaCareerBuilder.com .
SAFE HARBOR STATEMENT
Certain of the statements set forth in this press release constitute "forward-looking statements." Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate," "project," "intend," "forecast," "anticipate," "plan," "planning," "expect," "believe," "will likely," "should," "could," "would," "may" or words or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's limited financial resources, domestic or global economic conditions -- especially those relating to China, activities of competitors and the presence of new or additional competition, and changes in Federal or State laws, restrictions and regulations on doing business in a foreign country, in particular China, and conditions of equity markets. The Company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.
Private Firms Launch Charity To Provide Employment Opportunities In China
May 22nd, 2007With the approach of the 17th National Disabled Day, Jiang Xipei, chairman of Far East Holding Group, has announced that his company would unite with five private firms to set up a charity to promote employment opportunities for China's 83 million handicapped people.
The first batch of firms that have joined the fund include Yurun Group, Hongdou Holding, LAD Group, Yuexing Group, Eastide Group and Fast East Holding Group. Named the Far East Fund, it is one of the largest non-government sponsored charity funds to provide employment opportunities for disabled people. The money they raise will be used to sponsor projects which provide job training and services for handicapped people, and to give awards to outstanding handicapped people and to people who have done a lot to help the handicapped in China.
China has 83 million handicapped people but only 23 million are employed. Around 9 million employable handicapped people have no jobs, and their number increases by 300,000 a year.
Local media reports the Far East Fund has raised more than RMB100 million to date and expects to garner another RMB100 million within a year.
Executive Search Leader to Speak at XMei's China-U.S. HR Conference
May 18th, 2007XMei International, a U.S.-China business consulting and development organization, announces that executive search expert Kyung H. Yoon will deliver a key speech at their upcoming conference and expo, “Making China Your ‘Gold Mountain.’”
Yoon, the vice chairman of Heidrich & Struggles International, Inc., will speak on “What it Takes to Lead in China,” addressing the leadership needs of Chinese organizations. The talk is based on a 12-month study of the top talent situation in China, conducted by Heidrich & Struggles in partnership with Stanford University’s Project on Regions of Innovation and Entrepreneurship. Yoon will share her own insights from a long career in global executive search as well.
The research study is based on in-depth interviews with over 100 top executives of China technology enterprises like Lenovo, Neusoft, and AsiaInfo.
It provides a blueprint for how to pick the entrepreneurs and executives who are most likely to prevail in a highly competitive and fast-changing market.
“Making China Your Gold Mountain” will be held in South San Francisco from May 23-25 and is the first event in the U.S. with influential Chinese HR executives and business leaders from multinational companies, private Chinese companies, Chinese consulting firms and the government. XMei’s goal is to create an environment for learning and networking among those interested in business ventures between China and the U.S.
“Finding quality leadership is one of the key challenges of doing business in China,” said Xiaoli Mei, president and founder of XMei International. “Ms. Yoon’s experience and insight will prove invaluable to attendees.”
An executive summary of the study, titled “Getting Results in China,” may be downloaded at http://www.xmei-int.com/whitePapers.html.
About Kyung Yoon
Kyung Yoon is vice chairman of Heidrick & Struggles International, Inc. and a member of the Office of the Chairmen, which directs the firm’s board of directors, CEO and other marquee search assignments on a worldwide basis. Since joining the firm in 1994 in Menlo Park, California, Kyung has been one of the key drivers in Heidrick & Struggles’ Asia Pacific expansion. She served as Area Managing Partner, North Asia, with management responsibility for the Singapore, Tokyo, Hong Kong, Taipei, Shanghai and Seoul offices and spent five years in Singapore and Hong Kong.
About XMei International
XMei International is dedicated to promoting business development between the U.S. and China. It organizes events, both in the U.S. and China, which enable companies to develop new business opportunities, increase knowledge of the other country’s business practices, and make valuable international business connections. XMei International also offers other services, including business matches and consulting and market research for both U.S. and Chinese clients.
Contact:
Liz Menkes
XMei International
lmenkes(at)xmei-int.com
925-708-6304
German Company Supports Chinese Energy-Efficient Construction
May 18th, 2007Germany's Wacker Chemie AG is participating in an initiative launched by the German Deutsche Energie Agentur GmbH and the Chinese Ministry of Construction to support and promote the construction and renovation of climate-adapted and energy-efficient buildings in China.
A roadshow through six major Chinese cities has started in Beijing and includes a series of seminars on energy-efficient construction for Chinese construction industry professionals. The aim is to support the development and use of energy-efficient products and promote internationally recognized quality standards in China.
Rising fuel costs, global warming and local climatic conditions mean that efficient exterior insulation is becoming increasingly important in China. After all, the better a building's insulation is, the less energy is needed for heating and air conditioning. Wacker research says it has shown that effective exterior insulation can reduce a building's energy consumption by up to 60%. According to Deutsche Energie Agentur, buildings in China require four times as much energy for heating and cooling per square meter of living area than those in industrialized European countries.
As the federal German competence centre for energy efficiency and renewable energies, Deutsche Energie Agentur coordinates and implements projects and campaigns at a national and international level. Now, Deutsche Energie Agentur has joined up with Wacker and other European industrial partners to carry out a strategic and high-profile transfer of German construction-sector energy-efficiency expertise to China.
Six regional seminars are scheduled, involving close collaboration with the German Federal Ministry of Transport, Building and Town Planning, the Chinese Ministry of Construction and the subsidiary Center for Energy Efficiency in Buildings. Support is also being provided by the German Embassy in Beijing. In these technical seminars, experts will explain energy-efficient construction practices to Chinese participants and emphasize the necessity of quality regarding planning, the choice of materials and during construction itself.
Besides Beijing, seminars will be held over the coming months in Shenyang, Shanghai, Qingdao, Chengdu and Shenzhen. To accompany and complement the presentations, the organizers are publishing a manual featuring the most important energy-efficiency activities in both new construction projects and the renovation of existing buildings.
China recruiting U.S. IT grads
May 18th, 2007China's rapid economic expansion has allowed Beijing to fund a recruitment drive targeting some of the best and brightest IT graduates from U.S. universities, according to Chinese sources.
In turn, this brain trust is being used by China both as a control on its own Internet revolution and as a potential resource for North Korea' cyberwar program.
South Korea defense ministry said North Korean hackers are targeting the most tightly-guarded systems of that country's main foes to extract intelligence information and to spread viruses capable of wiping out material or, at least, slowing down computers.
North Korean students learn how to use computers at an elite school in Pyongyang. AFP
Defense officials said privately that North Korea, with no great pool of computer whizzes from which to select, is relying on Chinese aid and advice to train some 600 qualified hackers in five years.
One Hong Kong-based specialist said China has a budget for hiring the best IT graduates from U.S. universities to monitor and control Internet news reporting, and useage within its own borders as well as for a national security resource. "They've got the money, and they are spending it," he said.
In North Korea, the campaign ranks as a priority for Kim Jong-Il, who whetted his appetite for computer skullduggery during visits to China and Russia several years ago. Kim made a point of visiting computer labs in both countries and decided that all North Koreans should somehow become adept at operating computers even though Internet access is forbidden except for the highly privileged elites.
Those having access include Kim Jong-Il’s closest relatives, friends and allies, notably from the armed forces, as well as extremely well-trained technicians who had to pass strenuous tests of loyalty before being accepted into the elite computer course.
Students are studying in China and also at an academy that South Korean officials say has been educating a cadre of elite technicians for more than 20 years in a remote mountainous region.
Legal Recruiting in Mainland China
May 16th, 2007(by Asian Legal online & DaCare Legal)
Over the last year or so the number of clients, both private practice and in-house, seeking to recruit lawyers for their operations in Beijing and Shanghai has seen a steady increase and this is expected to continue throughout 2004. Mainland China is a vast and complex market for most businesses and the position is no different for law firms operating there.
Recruiting the right people for offices on the ground is very difficult and for law firms it is often the case of making the upfront investment in people with the returns on the investment lagging far behind. Not only do language skills play a big part but also experience in the local markets is increasingly important. Beijing and Shanghai are different legal markets and if a client is recruiting for example in Shanghai their clear preference is to have someone already in the local market. The trend in the past has been to relocate people with the necessary skills from Hong Kong and, while this will continue, there will be a developing market in both Beijing and Shanghai for people already on the ground moving firms.
The development of local law firms is also worth noting. The writer on a recent trip to Shanghai met with a number of successful local firms who also face complex recruitment issues. While not an immediate trend, it is envisaged that major local players will eventually seek to recruit lawyers from Hong Kong for their offices in Shanghai or Beijing. The practising rules and CEPA already envisage this kind of movement with the only obstacle being the discrepancy in salary levels.
The Mainland in-house market will also continue to develop at a pace. Of all the legal recruitment markets over the last year, the in-house market has held up well. There is an ever-increasing need to recruit good quality local lawyers for in-house positions with multinationals. There already exists a well-organised in-house lawyers group whose members are being presented with an ever-increasing range of in-house opportunities.
There is no doubt that the legal market in Mainland China will continue to grow - the challenge for everyone involved will be how to attract the right people and how to make a return on the investment involved - there will be no easy fixes in this regard.
Search Firm: DaCare Legal Search
Website: www.dacare-legal.com
Office: shanghai, beijing, china
Keywords: legal recruiting, law jobs, attorney jobs in China
Unions focus on overseas firms
May 16th, 2007THE government wants the percentage of foreign-invested city enterprises with trade unions to exceed 80 percent by the end of this year, the Shanghai Trade Union said yesterday.
By the end of March this year, 9,063 of the more than 11,600 foreign-invested firms in the city had established trade unions, a threefold increase compared to 2003.
Chen Hao, chairman of the Shanghai Trade Union, said establishment of a trade union could help protect workers' legal rights.
Chen cited Shanghai Uchino, an enterprise with 100 percent Japanese investment, as a good example of a company operating with a union.
The Japanese company was set up in Shanghai in 1995. The trade union was established at the same time. Of its 1,900 employees, more than 1,800 have joined the union.
"Every time we make a rule or plan, we discuss with our employees together," said Ji Weizhong, chairman of the company's trade union. "We have held two staff conferences last year and set every contract term with our workers."
Organized by the trade union, the company also signed a special contract with female employees to guarantee their rights and interests. One of the contract terms stipulates that the company will hold health checks for women every year, and pregnant employees can have extra breaks.
"What we do for them added, but what they do for the company multiplied," said Chen Longbao, the company's manager. "We can benefit more, because when employees are favored by their contracts, they will work harder than before."
Compensation and Benefits Data and Trends in the Shanghai R&D Sector - Invitation
May 16th, 2007Wednesday, May 23, 2007
Type: Science and Technology Committee Meeting
Venue: Regus Shui On Plaza Centre
12/F Shui On Plaza, 333 Huai Hai Zhong Road
雷格斯环业会议中心
淮海中路333号,瑞安广场12楼
Time: 16:30 to 18:30
Price: Members (RMB): 0
The AmCham Shanghai Science and Technology Committee is pleased to host its third roundtable discussion of the year on May 23, 2007.
Eric Fiedler, Regional Director of Hewitt Associates and current AmCham Chairman, will discuss compensation and benefits data and trends in the Shanghai R&D sector. Fiedler’s presentation will cover how your company can attract and retain talent in this increasingly competitive market, especially regarding leadership and managerial positions.
The S&T Committee meets on the fourth Wednesday of each month. The forum will include an invited guest speaker to address a key topic of interest followed by an in-depth roundtable discussion.
Please email your RSVP to Christine Li at Christine.li@amcham-shanghai.org no later than Monday, May 21, 2007.
Best regards,
Science & Technology Committee
AmCham Shanghai
China to spend US$4.3b in US shopping spree
May 14th, 2007CHINA is on another shopping spree in the United States that appears to be as much about salesmanship as the country's rapidly growing purchasing power.
Hoping to ease tensions raised by the massive trade imbalance dividing two of the world's economic powers, China has periodically come to the United States on "buying missions" to demonstrate the country's willingness to import more goods and services.
China kicked off its latest campaign on Wednesday in San Francisco with a commitment to buy US$4.3 billion in US technology.
In two weeks, government leaders will begin talks in Washington on the US' US$232 billion trade deficit with China and other issues.
Chinese President Hu Jintao and his US counterpart George W. Bush yesterday exchanged views in a telephone conversation on the upcoming second round of strategic economic dialogue between the two countries.
Hu appreciated the US government's active attitude toward the development of China-US economic and trade cooperation.
Hu said he believes that with concerted efforts by both sides, positive achievements will be scored in this round of dialogue, which will contribute to giving fresh impetus to China-US economic and trade cooperation.
Bush hopes that great achievements will be made in this round of dialogue.
At a posh hotel in San Francisco, a broad cross-section of business and government leaders from China and the United States celebrated 27 contracts signed on Wednesday.
The deals primarily involved computer software, semiconductor and telecommunications companies. The list of US beneficiaries included high-tech bellwethers Microsoft Corp, Oracle Corp, Cisco Systems Inc and Hewlett Packard Co.
California Lieutenant Governor John Garamendi hailed the agreements as an "important step in furthering the deep relationship between this state, this country and China."
To underscore China's resolve to explore more US investments, executives from more than 200 Chinese companies are meeting with their US counterparts in 24 cities scattered across 23 states, said Ma Xiuhong, vice commerce minister.
She met with Governor Arnold Schwarzenegger at the state Capitol on Wednesday, and the governor later said California had nearly doubled sales to China. California exports to China totaled nearly US$10 billion in 2006, Schwarzenegger said.
Red Cross hotline used to recruit volunteers
May 9th, 2007THE Shanghai Red Cross Association yesterday launched a service hotline (6323-7380) to recruit volunteers to serve in the city's 10 Red Cross institutes as part of its celebrations for the 60th Red Cross Day today.
The association stipulates that volunteers must be available to offer their services at least once a month and work for more than two hours every time. They are also required to keep up their service for at least a year.
Foreign volunteers are also welcomed to the join the activity but so far a foreign language hotline service is not available.
The association will interview candidates and provide free training to those who pass the interview. Volunteers will get a certificate from the administration.
The administration unveiled 10 Red Cross service centers yesterday, including one at Fudan University's Children's Hospital and at Nanhui Central Hospital.
Benchmark deal for mothers in workforce
April 28th, 2007FEMALE employees will earn the same salary during pregnancy and while nursing, according to amendments to a women's rights law.
The amended law was adopted at the 35th Session of the 12th Shanghai People's Congress which sat yesterday.
The Protection of Women's Rights and Interests states that pregnant or nursing women can be moved to a new post but must keep the same pay.
"The previous law just stipulated that their basic wages must remain the same and their work contracts cannot be terminated," said Song Zhongbei, director of the female affairs division in the Shanghai Trade Union.
"So some enterprises reduced salary to the minimum wage after arranging a new post for the pregnant worker.
"But nowadays the basic wage only accounts for a very small portion of the total salary, so it is necessary to amend the law."
The law also states that pregnant or nursing workers are entitled to have their work load and work time reduced.
Employees should also get at least 80 percent of their salary when on maternity leave.
The amendments state that enterprises should hold women's health checks at least once every two years, and the government will organize regular checks for retired women.
The incidence of breast cancer in the city has increased in the past 30 years, Song said.
In 1972, 17.7 women out of every 100,000 developed breast cancer. In 2004 it was 55.66 out of 100,000.
"So we suggest enterprises hold health checks for women every year if possible, in order to ensure treatment for the disease, which is a major cause of death among women," Song said.
Extra break
The law also suggests enterprises sign a special contract with female employees to guarantee their rights and interests.
"The special contracts represent the different cultures of enterprises," Song said.
The Shanghai Diesel Engine Co gives women employees more than seven months' pregnant an hour's extra break time a day.
More than 30,000 enterprises have signed special contracts with female employees, covering about 700,000 women in the city.
Chinese, Swiss minds unite
April 28th, 2007THE city's top universities will be assisted in funds and human resources by a Swiss science organization.
Fudan and Tongji universities are on the recipient list, according to yesterday's Science and Technology Forum, which has the theme "Innovation for the Future."
The event was hosted by the Consulate General of Switzerland in Shanghai and the Science and Technology Commission of Shanghai Municipality. The Swissnex Shanghai, a science and technology center founded by the Swiss Education and Research Institution, an affiliated organization with the Consulate General of Switzerland in Shanghai, will begin operations in autumn.
About six Chinese and six Swiss scientists will work in the center, promoting cooperation between the top universities in the two countries.
The center will set up a foundation to award outstanding scientists from the universities. Students who make innovations in science and technology will also be rewarded.
"It's the first time that we have set up such a science and technology center in Shanghai," said Charles Kleiber, secretary of the institution.
"We chose Shanghai as the priority city because it has many common grounds with Switzerland, a place with a huge population and little resources, but always making efforts to promote innovations in science and technology."
Bayer Signs MOU With China Europe International Business School
April 27th, 2007Bayer has signed a memorandum of understanding with the China Europe International Business School to work together to develop and enhance best practices in the chemical and pharmaceutical sectors in China, which have grown rapidly in recent years.
Bayer Technology and Engineering (Shanghai) Company Ltd. (BTES), a subsidiary of Bayer Technology Services of Leverkusen, Germany, signed the MOU with CEIBS a month after Bayer and the CEIBS established the "Bayer Chair in Strategy and Marketing" as well as the "CEIBS Center for Health Policy and Management."
A key element of the MOU is the joint hosting of the "International Technology Excellence Congress in Process & Pharmaceutical Industry," which was recently held on the CEIBS campus in Shanghai from April 17 - 18, 2007. The congress, which is set to become a joint annual event from this year onward, featured leading international experts from the chemical and pharmaceutical sectors.
"The cooperation with the China Europe International Business School, China's leading international business school, is a landmark step forward, not only for Bayer Technology Services in China, but also in the continuing development of the chemical and pharmaceutical sectors," said Dr. Armin Knors, head of BTES, at the congress, which attracted more than 150 participants from the chemical industry and leading universities. "These industries are likely to play a critical role in the ongoing growth of China, and we believe that the MOU will facilitate improvements in practices and procedures, both from a technological perspective and also in terms of the knowledge and expertise that workers in these sectors will need to have."
The planned cooperation under the five-year agreement is just the latest stage in the sustained growth of Bayer Technology Services in the Asia-Pacific region. In recent years, the company as carried out a range of complex, cutting edge projects in China.
Dr. Rolf Cremer, Dean of the China Europe International Business School, said: "Our mission is to provide an understanding of international business management practices and how these can be applied in China. Our relationship with Bayer Technology Services means that we will be able to work closely with an acknowledged industry leader to help advance best practice in the chemical and pharmaceutical sectors in China."
CEIBS was established in Shanghai on November 8, 1994 and is the leading China-based international business school. Its main objective is the contribute to the economic development of this country and its business communities. It does this by offering MBA students, top managers and senior executives of companies operating in, or planning to enter, China the latest knowledge and a thorough understanding of current practices in international management, helping participants to adapt them successfully to their own business environment. Based on its own campus in Pudong, Shanghai, the school is a not-for-profit joint venture established under an agreement between MOFTEC and the European Commission. CEIBS also has representative offices in Beijing and Shenzhen.
Graduates matched with firms
April 26th, 2007SHANGHAI has launched a technician training program to solve unemployment among young people by matching polytechnic and college graduates with employers, city officials announced yesterday.
The pilot training program will be implemented this year in schools and vocational institutes specializing in training of students for the automobile, equipment manufacturing, new material and new energy, logistics, trade, exhibition and other manufacturing industries.
Jiao Yang, the city government spokeswoman, said matching graduates with companies could fill the professional vacancies while at the same time ease the city's youth unemployment pressure.
Schools are required to cooperate with firms to design curriculums and carry out classroom teaching according to employers' requirements.
Schools can send students to work at the companies on a regular basis throughout the three-year study period to gain practical experience. But the total hands-on job training period should not be less than one year.
The government will allocate money from the city's unemployment fund to subsidize companies for costs of using their equipment.
Officials said the training program was expected to raise the city's percentage of high-level technicians from 17 percent now to 25 percent by 2010.
Foreign automakers plan free labor training
April 25th, 2007GENERAL Motors, Ford and DaimlerChrysler announced today they will provide training for their suppliers in China on how to keep their working conditions safe, health and legal.
The plan has the backing of the China Association of Automobile Manufacturers, a government-supported industry group, the three automakers said in an announcement, according to The Associated Press.
General Motors Corp has more than 20,000 employees in China and relies on suppliers employing thousands more. Ford Motor Co and German-American automaker DaimlerChrysler AG similarly have many suppliers based in China.
Senior executives of the three automakers were in China's commercial capital for the weeklong 2007 Shanghai Auto Show, which ends on Saturday.
The automakers will use training designed by the Automotive Industry Action Group aimed at educating suppliers about Chinese labor laws and improving compliance with safe working standards, the statement said.
"The single most important resource at any of our member companies is people," J. Scot Sharland, the action group's executive director, said in the statement.
"Given the tremendous growth of North American investment in the developing Chinese automotive supply chain, it is imperative that these companies are cognizant of local labor laws and fundamentally understand that Ford, GM and DaimlerChrysler expect 100 percent compliance."
The training is due to begin by the middle of 2007, it said.
The statement cited an unnamed official from the Chinese automotive industry group noting the need for companies to abide by domestic labor laws.
Multinational companies operating or sourcing in China are under intensifying scrutiny for labor conditions at their factories and those of their suppliers. Meanwhile, China has been urging foreign-invested companies to let employees join the government-sanctioned labor federation.
The Automotive Industry Action Group was set up in 1982 to handle industry-related issues such as cost reduction, product quality, health, safety and the environment. It has more than 1,500 member companies in North America, Europe and the Asia-Pacific.
The group said it is also beginning training sessions in Mexico in mid-2007.
US firm has eye on acquisition
April 24th, 2007GRACE Construction Products, a leading US construction and building materials maker, said it plans to complete at least one acquisition this year in China.
Jeremy Gray, Grace's vice president for Asia Pacific, said in an interview that the company also plans to build one or two plants in 2007 in China's underdeveloped western region to capture potential growth there. It now has four manufacturing sites in the country.
The company is a business unit of New York-listed W.R. Grace & Co.
China vows neutrality in choosing 3G systems
April 23rd, 2007CHINA will be "technologically neutral" when choosing standards for high-speed wireless services in the world's biggest mobile market by users, Xi Guohua, a vice minister at the Ministry of Information Industry, said yesterday.
China approved the domestically developed time division synchronous code division multiple access, or TD-SCDMA, in January 2006 as a standard for third-generation services. The government has said it is considering two other technologies, wideband CDMA, or WCDMA, and CDMA2000, for 3G, which allows video conferencing and faster downloads of songs on to handsets.
"We will treat WCDMA and CDMA2000 equally," Xi said at the Boao Forum held in southern China's Hainan Island. "It has nothing to do with supporting a locally developed standard."
Telecommunication equipment makers such as Ericsson AB are awaiting China's issuance of 3G licenses to spur spending on networks, Bloomberg News reported. The government has said 3G services will be available for the 2008 Beijing Olympics, without giving a more detailed time frame or saying which other standards it will adopt.
No timetable
Xi reiterated that the government doesn't have a specific timetable. The issuance of 3G licenses isn't dependent on the outcome of a trial of TD-SCDMA being carried out by China Mobile Communications Corp, Xi said.
China will consider the maturity of the technology and how starting 3G services will affect the competitiveness of the domestic telecommunications market, Xi said. The government is hastening plans to reorganize the industry, he said.
Xi's comments come after European Union Media Commissioner Viviane Reding on April 12 cited the same pledge by China's Information Industry Minister Wang Xudong to be "technologically neutral" and to issue more than one 3G license.
Most 3G networks in Europe are based on WCDMA.
Compensation disputes on the rise at work
April 20th, 2007DISPUTES over compensation for terminations of work contracts are on the rise, according to the Shanghai Labor and Social Security Bureau in its quarterly report released yesterday.
The arbitration division received 1,400 disputes about work contract termination during the first quarter of this year. Of those, about 75 percent were over compensation.
"Nowadays most employees choose to get compensation when it is illegal for the company to terminate a contract instead of insisting to stay in the company," said Sui Wei, vice director of the bureau's arbitration division.
"Most of the employees involved in these kinds of disputes are between the age of 18 and 40, and it has become a trend to prefer compensation," Sui said.
Most disputes occur in private enterprises.
Other main causes of disputes are wage and insurance benefits, according to the report.
"But the number of disputes over arrears of wages has decreased by about 30 percent," Sui said.
The number of dispute applications that can be handled by arbitration has been increased, Sui said.
Arroyo to sign US$2b deals on China visit
April 20th, 2007PHILIPPINEP President Gloria Macapagal Arroyo was due to depart for a shortened visit to China today to conclude deals amounting to US$2 billion worth of Chinese investment, The Associated Press reported.
The visit, originally set for five days, was cut short to 12 hours after Arroyo's husband underwent open heart surgery April 9. He was expected to be released from a hospital tomorrow, when Arroyo returns to Manila.
Apart from signing and approving several investment agreements, Arroyo was scheduled to take part in the weekend Boao Forum for Asia meeting of top government officials and business leaders, presidential spokesman Ignacio Bunye said.
Microsoft Corp Chairman Bill Gates, Bangladeshi Nobel peace laureate Muhammad Yunus and Pakistani Prime Minister Shaukat Aziz also were expected to attend the forum in southern Hainan province, Bunye said.
He said Arroyo "brings to the forum her expertise and strong grasp of regional and geopolitical matters in her capacity as president and as chair of ASEAN," the 10-member Association of Southeast Asian Nations.
Arroyo has said earlier the investments in the Philippines will be funded by the Chinese government. She did not elaborate. Her visit to China in 2004 yielded US$1.2 billion in combined investment commitments and soft loans.
McDonald's China To Set Up 40 Trade Unions In East China
April 19th, 2007According to the All-China Federation of Trade Unions, McDonald's China has promised to establish trade union branches in its 40 restaurants in Zhejiang province this year.
An ACFTU spokesman told local media that Zong Hao, central region human resources director with McDonald's China, made the remarks when visiting the Zhejiang Federation of Trade Unions.
The move would boost the development of labor relations, upgrade the fast food giant's social image in China and help it fulfill its social responsibilities, said Chen Dingxin, ZFTU vice chairman. Chen said he hoped McDonald's China would lose no time in fulfilling its promise in accordance with China's regulations on trade unions.
Earlier this month, Kong Xianghong, vice chairman of the Guangdong Trade Unions Federation, said McDonald's had promised to set up trade union branches in the southern Guangdong province before July this year. But a spokesman for McDonald's in Guangdong refused to confirm Kong's claim and would not comment to local media.
McDonald's, KFC and Pizza Hut have been criticized for paying their part-time employees in Guangzhou just RMB4 per hour, up to 40% less than the city's statutory minimum wage of RMB7.5. However subsequent government inspections found no problems with the foreign fast food operations.
Western China Favors Green Investment
April 17th, 2007Officials in northwest China's Shaanxi Province are calling for more green investment and urging local governments not to sacrifice the environment on the altar of economic growth.
Yuan Chunqing, governor of Shaanxi Province, says that local governments in northern Shaanxi should carefully assess the environmental impact of investments, especially energy exploration projects, and should not promote those which threaten the environment. Yuan made the remark at the 11th Investment and Trade Forum for Cooperation between East and West China which kicked off on April 6 in Xi'an. Domestic investors have signed contracts worth nearly RMB172 billion up 36.7% from the previous year, at the forum.
According to Yuan, the underdeveloped western regions should be on the watch for industries seeking to transfer pollution from the east.
Waste water processing, healthy coal mine exploitation and other environmentally friendly programs were also the focus of the forum. Local media report that Climate Change Capital from Britain are going to invest US$500 million in the next five years into China's clean resource utilization and the company says that western China's actions in energy conservation has brought them great business opportunities.
CSR Agenda Imperialists
April 17th, 2007By David Wolf
The client was a Fortune 500 company that had just celebrated completing two decades in China. They had been through all of the phases of the localization process. They understood the market and were leaders in their sector. China was their largest market in the world. They knew what they were doing. Then came the day when we started talking about their corporate social responsibility program.They were spending upwards of US$10 million a year on their CSR efforts, and there was nothing that they could recognize as return-on-investment. Company executives couldn't understand why. They were doing all the right things: well planned programs, leveraging the company's core competency, and genuinely doing a lot of good on the ground. They were even winning awards in the United States for their efforts in China.
And yet, nobody in China seemed to care. The press weren't picking up the story. Most government officials knew nothing about the program, and those that did, shrugged it off. The company was so frustrated they were considering dumping their China CSR program entirely.
After the executive we were meeting finished, one of my colleagues asked a simple question. "How did you develop your China CSR program," she asked?
"Well, our team here worked with our CSR people back in the States," came the reply.
My colleague probed further. "Did you involve the government in the process at all?"
Puzzled silence. "No. We didn't see the need to. We saw a problem that needed fixing, knew we had the core competence to fix it, and went and did it. We've done great work."
This, of course, was the problem. Our client was an Agenda Imperialist.
Seeing a problem that you know you can fix, then going out and fixing it, is by no means a bad thing. That is, after all, the core of the entrepreneurial spirit that drives successful businesses throughout the world and, increasingly, in China.
The instincts that serve us so well in commerce, however, do not always serve us as well when seeking to better the communities in which we operate, but especially if we want to get something more than quiet satisfaction for our CSR efforts.
Simply showing up and unilaterally deciding you're going to go out and fix something in China - even if it is driven by a global CSR agenda with the best of intentions - is not going to make you friends here. At best, you'll get no credit for your work. At worst, you'll be branded a paternalist or a neo-imperialist.
Creating great corporate social responsibility in China is a matter of balancing three agendas: your company agenda (what it seeks to accomplish in the PRC and globally), the global agenda (the clear social challenges upon which most of your global audiences would agree), and the China agenda (the social priorities of the Chinese government and people).
The plain truth is that the more you weight the China agenda in your calculations, the more people in China will acknowledge the value of your efforts.
That's not rocket science, but it's apparently not terribly obvious. A few years ago, I was peripherally involved in a major project auditing the CSR efforts of multinational technology companies in China. Of all the companies we researched, only one was getting significant ROI, acknowledgement, and appreciation from Chinese. Not surprisingly, it was the only company who dumped its global CSR program, bypassed the prescriptive, company-and-global-viewpoint-centric approach, ignored the imprecations of well-meaning NGOs, and instead based its program on an interactive process that engaged government, academics, and media.
The message is fairly clear. There are many ways to create meaningful change in China, even as an agenda imperialst.
But if a core goal of your CSR is acknowledgment, appreciation, or even support from audiences here in China, you had better make sure you are addressing the issues that Chinese find most pressing in a manner Chinese can understand that attains results Chinese can appreciate.
Job data may see Aussie rates rise
April 16th, 2007AUSTRALIAN employment climbed in March and the jobless rate fell to a 31-year low as builders and retailers hired more workers, raising expectations the central bank may raise interest rates as soon as next month.
Employers hired an extra 10,500 staff after adding a revised 23,200 in February. The jobless rate dropped to 4.5 percent from 4.6 percent, the Bureau of Statistics said yesterday in Sydney.
The median estimate of 22 economists was for 15,000 new jobs and an unchanged unemployment rate, according to a survey by Bloomberg News.
A worker shortage is driving up wages and consumer spending, underpinning an economic expansion now in its 16th year. Futures and currency traders have bet the Reserve Bank of Australia may soon raise interest rates after it warned last month inflation is likely to be "too high" this year.
"The Reserve Bank's concerns about wages growth putting pressure on inflation are justified," said Jarrod Kerr, an economist at JPMorgan Chase & Co in Sydney. "It's a very resilient, very tight labor market."
The Australian dollar rose to as high as 82.73 US cents from 82.45 US cents immediately before the report. It traded at 82.56 US cents at 4:30pm in Sydney. The yield on the benchmark 10-year government bond rose 1 basis point, or 0.01 percentage point, to 5.93 percent.
The number of full-time jobs rose 31,200 in March, the report showed, and part-time employment dropped 21,200. About 10.4 million of Australia's 20.8 million people are employed, and the economy has created 276,600 new jobs in the past 12 months.
The Reserve Bank raised its benchmark interest rate three times last year after annual inflation breached its target range of between 2 percent and 3 percent for three straight quarters. The overnight cash rate target is at a six-year-high 6.25 percent.
A Credit Suisse index of futures contracts put the probability of a May interest-rate increase at 63 percent.
College grads offered rural jobs
April 12th, 2007THE city is recruiting more than 500 recent college graduates to work in local rural areas as teachers, doctors and government officials to aid social development, the Shanghai Personnel Bureau announced yesterday.
The graduates will be dispatched to the city's 10 less-developed suburban districts such as Nanhui, Qingpu, Fengxian, and Chongming County for at least two years.
Each applicant that passes an academic test and a physical check will be granted a living allowance of 1,790 yuan (US$224) each month, plus an annual government bonus of 7,000 yuan to 18,800 yuan.
That puts their monthly income at 2,000 yuan or more in the first year - higher than the city average for new college graduates.
"We offer a favorable package to make the rural positions an attractive choice for graduates struggling in the fierce job market," said Chen Hao, the personnel bureau's vice director.
He added that the bureau was also building a talent database to track elite graduates with the hopes of enticing them into a career as senior civil servants.
The bureau doesn't guarantee the graduates a job after their rural service ends, officials said.
Last year, the bureau posted 500 similar medical, teaching and government administration positions in rural areas.
However, only 259 positions were filled due to a shortage of qualified applicants, especially in the medical sector.
Bureau officials said they were not sure if all the positions would be filled this year.
Labor switch for expats
April 12th, 2007EXPATRIATES who have a labor dispute with their employer will need to apply for government mediation at the Shanghai Labor Arbitration Committee from next month.
The city's new labor arbitration regulation takes effect on May 1, the Shanghai Labor and Social Security Bureau said yesterday.
The new regulation states that employees usually filed a labor arbitration application at district-level mediation committees where the company is located.
Sui Wei, vice director of the bureau's arbitration division, said that the clear division would enable government mediation to work more efficiently.
Cases involving foreigners, employees from Hong Kong, Macau and Taiwan, as well as foreign invested companies with registered capital of US$10 million or above, will only be accepted at the city-level committee.
But the Pudong New Area Arbitration Committee will also be allowed to handle cases involving big foreign-invested companies registered in the district.
Previously, no division was made about where cases would be handled.
Overseas applicants should file in written form within 60 days of a dispute. A work contract and work permit are required, officials said.
The Shanghai Labor Arbitration Committee is at 45 Anyuan Road.
Taiwan Funded Companies Top Labor Law Violators
April 11th, 2007The Zhuhai Labor and Social Insurance Department has concluded after their two years of labor inspections that Taiwan companies who run businesses in Zhuhai have ranked highest in labor law violations.
Local media reports that ZLSID says many of the bosses from these Taiwan companies have inadequate legal knowledge and they therefore tend to ignore the rights and interests of the workers and of their own social responsibility.
ZLSID has checked and punished 26 companies that had refused to execute the minimum wage or asked employees to work overtime. Of those, 11 are Taiwan funded companies. Some officials from the labor department say that most of the Taiwan companies are labor intensive enterprises, so they face a shortage of labor, and that's why they often asked the employees to work extra hours. Besides, as the bosses of these companies know little about the mainland's labor laws or they intentionally disregard the employees' rights, they pay the employees less or even deduct money their salaries.
ZLSID says it will now focus on fixing the illegal behavior of Taiwanese companies as the next stage of its work.
Siemens' China Healthcare Project Answers Clinton Global Initiative
April 10th, 2007Siemens will invest a total of US$10 million over the next five years to achieve sustainable improvements in healthcare in rural areas of China.
The project is a Siemens contribution to the Clinton Global Initiative to support poorer regions in threshold countries.
An agreement on the project was signed by Siemens and the Shaanxi Bureau of Health. Zhang Huaixi, vice chairman of the Chinese People's Consultative Conference; Dr. Richard Hausmann, president and CEO of Siemens China; Dr. Siegfried Russwurm, member of the executive management of Siemens Medical Solutions; and Dr. Bernd Ohnesorge, president and CEO of Siemens China Medical Solutions, all took part in the signing ceremony held in the Great Hall of the People in Beijing.
"All people, regardless of their status or origin, should have access to high-quality healthcare. This is an important prerequisite for a peaceful and just society. We are especially pleased when leading companies like Siemens provide their competence for such efforts," commented Zhang Huaixi.
With the help of pilot projects, a pool of valuable experience will be built up for giving people in rural regions of China better access to high-quality healthcare. In this project, Siemens will focus on developing tailored solutions to meet the specific needs of local healthcare organizations.
Siemens will initially outfit a number of pilot hospitals with diagnostic equipment, beginning with the first facility in Luochuan County in Yan'an, in the Shaanxi Province. This equipment will include ultrasound and x-ray systems as well as computed tomography imaging systems. Not far away from each rural hospital, Siemens will equip six urban health centers with x-ray and ultrasound systems. Siemens will maintain the technical infrastructure once it is in place.
The project, headed by China's Ministry of Health, is part of the Clinton Global Initiative, which brings together key figures from politics and business, as well as wealthy individuals and philanthropists, to jointly tackle challenges faced by societies
Drive to educate brand managers
April 10th, 2007FACING a shortage of brand management professionals, the Shanghai Economic Commission has launched a training program to cultivate managers for local big enterprises this month.
The proactive approach is to introduce the most advanced brand concepts and international experience on strategy, design, communication and management.
"Experts from universities and multinational enterprises have been invited to train qualified brand managers," said economic commission spokesman Li Bai. The program includes 80 classes in six days.
"Following a long-term neglect of brand consciousness, Chinese brands have lost out in the pace of globalization," said an official surnamed Yang in the scarce talents training center. "Now many corporations have realized the urgency to solve the shortage and improve the quality of brand management."
So far the program has attracted more than 200 leaders from state-owned businesses, which are facing challenges and opportunities in promoting their brands overseas.
Citic Bank's IPO may be world's largest sale
April 9th, 2007CHINA Citic Bank Corp may raise as much as US$5.7 billion in a simultaneous Hong Kong and Shanghai initial public offering, the world's largest stock sale so far this year, three sources said.
The Beijing-based bank plans to offer 2.3 billion new shares in Shanghai at 4.66 yuan to 6.1 yuan to raise up to 14.03 billion yuan (US$1.82 billion), the people said. The company may raise a further HK$30.17 billion (US$3.86 billion) selling 4.89 billion shares in Hong Kong at HK$4.72 to HK$6.17, they said.
Mainland banks and insurers have sold US$61.1 billion of shares in Hong Kong and Shanghai since June 2005, when Bank of Communications Co became the first domestic bank to go public in Hong Kong. They have been encouraged by high valuations as investors seek to benefit from China's rapid economic growth, said Bloomberg News.
"This is not a bargain price" for stock in China's eighth-largest bank by assets, said Wu Xuan, a Shenzhen-based analyst at Penghua Fund Management Co. It "leaves little room for future upside gains if it's priced at the top end."
At the upper end, Citic Bank's sale could be the world's largest stock sale so far this year, according to data compiled by Bloomberg. It could trump a US$5.5 billion closed-end fund launch in the United States and a secondary share sale by Ping An Insurance (Group) Co, China's No. 2 insurer, which raised slightly more than US$5 billion in February.
The price ranges value Citic Bank at 2.48 times to 2.81 times its estimated book value this year, according to the three people, who declined to be identified before an official statement. The price ranges have yet to be approved by the China Securities Regulatory Commission.
The new shares to be listed in Shanghai represent a six percent stake in the bank, while those in Hong Kong are equivalent to 12.8 percent. The stock may start trading on April 27, Citic Bank said.
China International Capital Corp, Citigroup Inc, Citic Securities Co, HSBC Holdings Plc and Lehman Brothers Holdings Inc are arranging the sale.
China has the most expensive bank stocks in Asia's emerging markets, trading at about 3.2 times estimated book value in 2007, compared with 1.7 times for peers in India and 1.4 times for Korea, according to a Morgan Stanley report.
The Industrial & Commercial Bank of China Ltd, the nation's largest, traded at 2.79 times the consensus book value estimate for 2007 in Hong Kong, higher than 1.7 times for HSBC and 1.94 times for Citigroup.
Citic Bank was China's seventh-largest by total assets at the end of 2005, according to a preliminary share sale document. The company fell to eighth last month after the Postal Savings Bank of China was established.
Profit this year was expected to gain 53 percent to 5.69 billion yuan, according to an April 4 statement.
The company may achieve loan growth of 20 to 21 percent this year and in 2008, according to Bear Stearns Asia Ltd analysts.
Minimum Wage Standard Implemented In Guangzhou
April 6th, 2007April 6, 2007
News from Guangzhou Municipal Labor and Social Insurance Department is that from April 1, the minimum wage of RMB7.5/hour has been implemented among all non-full-time employees in Guangzhou, excluding Huadu, Fanyu, Chonghua and Zengcheng.
At the end of last year, GZMLSID released the province's first minimum wage standard for non-full-time employees. The standard consisted of five categories, ranging from RMB7.5 per hour to RMB4.3 per hour. The standard for Guangzhou is RMB7.5 per hour, which is the same as that of the provincial level minimum wage. The minimum wage for non-full-time workers in Huadu, Fanyu, Chonghua and Zengcheng is RMB6.6 per hour.
A representative from GZMLSID emphasizes that this minimum wage standard is only applicable to non-full-time employees, such as those who work on an hourly basis and work for no more than five hours a day, and no more than 30 hours in a week. The person says that companies should sign full-time labor contracts with those who work for more than 30 hours a week.
At present, Guangzhou's food and beverage industry uses the most non-full-time employees.
Center For NPOs Opens In Shanghai
April 6th, 2007A city based development center will open in Pudong, Shanghai this month to serve as an incubator of nonprofit organizations.
"The capacity and accountability of grassroots NPOs are not strong enough. Many of them lack regular offices, stable source of funds and professionals," said Lu Zhao, director of the incubation center. "So we have established an office center in Pudong for those NPOs for free."
Funded by the local Pudong government, the center aims to provide support services to Shanghai's growing not-for-profit sectors, especially grassroot NPOs.
As NPOs in China are still in their infancy, the center will provide professional training programs such as financial management, volunteer management, fundraising and strategic planning.
From this month, NPOs in the city run by members of the public can apply to become members of the incubation center.
Bureau hits target for overseas talents
April 5th, 2007MORE than 10,000 overseas professionals have been lured to Shanghai in the past 15 months - nine months ahead of a target set by the Shanghai Personnel Bureau.
The bureau said yesterday that as of the end of February, 10,324 overseas professionals had come to work in the city. Half of the number were overseas Chinese who have acquired foreign citizenship. Most come from developed countries including the United States, the United Kingdom and Japan.
"We are glad to see so many overseas talents coming to work for Shanghai's development, but how to retain them and use their expertise to the fullest remains a challenge that tops our work agenda in the following period," said Mao Dali, vice director of the bureau.
The bureau launched the recruitment drive in December 2005, and had initially aimed to reach the 10,000 mark before this December.
The city launched a similar drive in August 2003 and reached the 10,000 figure 27 months later in November 2005.
The bureau said yesterday that nearly 34 percent of the incoming professionals hold a PhD, nearly 10 percentage points higher than that of the first recruitment drive.
Shanghai Automotive Industry Corporation (Group) recruited seven doctorate holders from the United States as vice presidents or program directors to develop its own brands and clean-energy cars last year.
To date, more than 68,000 returned overseas Chinese and about 70,000 foreign professionals work in the city, the bureau said.
New bank branch
April 4th, 2007HANG Seng Bank yesterday opened its seventh outlet in Shanghai, further expanding its network in mainland China to 17 outlets. Occupying 600 square meters over two floors, the branch is located at Jing'an District and provides a full range of banking services.
China Moves to Meet Surging Demand for Chinese Language Teachers
April 3rd, 2007China is stepping up efforts to train more Chinese language teachers and plans to set up 60 more Confucius Institutes to meet the demand for Mandarin across the world, according to Chinese Language Council International.
"Each year, there are 10,000 positions of teaching Chinese as a foreign language in the world by conservative estimate, but only 2,000 teachers are available from China," said Xu Lin, director of the office. "The greatest challenge we are facing now is to meet the surging demand for Chinese teachers."
This year, a large number of college graduates, regardless of their major, will be recruited to attend a one-year training course to teach Chinese as a foreign language, according to Xu.
China currently has a pool of over 5,000 certified teachers of Chinese as a foreign language. Some of them will be selected to learn Spanish, Portuguese and Arabic for a year and then sent to teach in Latin American and Arab countries.
Last year, China sent 1,004 Chinese teachers to 80 countries and 1,050 volunteers to 34 countries.
In addition to recruiting more Chinese teachers, the office also plans to set up another 60 Confucius Institutes and launch Confucius Institute online and broadcast services.
In the Middle East and North Africa, the Chinese language has become increasingly popular as bilateral trade and cultural exchanges have expanded.
The first Confucius Institute in an Arab country was set up on February 27 in Saint Joseph's University of Lebanon.
Egypt will likely to have its first Confucius Institute soon, said Chinese ambassador Wu Sike to Egypt, who, on behalf of Xu, has signed an agreement with the University of Cairo on setting up a Confucius Institute.
"Along with the University of Cairo, three universities have Chinese language and culture departments. The number of students majoring in Chinese language has been on a steady rise in recent years," said Wu.
"Almost every term of the Chinese language training course is fully booked," he added.
The latest Confucius Institute was established on March 16 in the University of Zimbabwe, which enrolled over 50 students on the opening day, including scholars, government officials and entrepreneurs, said Yuan Nansheng, Chinese ambassador to Zimbabwe.
The Chinese government donated US$100,000 to the institute and installed two well-trained volunteers as instructors.
"The teachers are expected to introduce China's cultural, economic and social development as well as giving students linguistic instruction, in the hope of cementing the two countries' friendship and promoting bilateral trades," said Yuan.
According to an agreement signed by China's Hunan Normal university and Russia's Kazanian State University, the third Confucius Institute in Russia will be set up to receive an ever-growing number of Russian students who want to learn Chinese.
A total of 10,000 people in Russia are attending Chinese-language training programs.
The Confucius Institute, headquartered in Beijing, is a non-profit organization aimed at promoting the Chinese language and culture. By 2010, 500 Confucius Institutes and classrooms are expected to be set up around the world.
Some Confucius Institutes, however, have encountered difficulties.
The first Confucius Institute in southeastern Asia has struggled since it was launched on February 14, 2006 in Bengal. Now only 10 students remain and teachers have nothing but a desk in the office.
"The teaching method is mainly to blame because most of the teachers are linguistics major graduates and not knowledgeable enough in other spheres. As a result, the institute has little influence on the upper class," said an insider.
"A way out may be to follow a successful model, like the 'Japan Exchange and Teaching Programme.' At the same time, we can train some local Chinese teachers in the hope of influencing more people of higher education or from a higher class," said Xu Guangyuan, headmaster of the Confucius Institute of Bengal.
Confucius, born in 551 B.C., was a great Chinese thinker, philosopher, statesman and educator. He was also the founder of Confucianism. Advocating the building of a harmonious society through individuals' self-refinement in manners and taste, Confucianism dominated the Chinese society for centuries and was spread to Europe in the late 16th century.
In an effort to promote the Chinese language and Chinese culture abroad, the Chinese government has set up 140 Confucius Institutes, schools or classrooms in 52 countries and regions worldwide.
Foreign banks list new retail services
April 3rd, 2007THE first four overseas banks to incorporate domestically held symbolic opening ceremonies yesterday to release details on the retail yuan-denominated products they will soon offer in Shanghai.
"Today we opened a new chapter in the bank's 142-year history in China," Vincent Cheng, chairman of HSBC Bank (China) Co, said in Shanghai yesterday. The new entity was set up with eight billion yuan (US$1.01 billion) in registered capital.
The others that will get a headstart in taking advantage of the full opening of China's banking industry are Citigroup Inc, Standard Chartered Bank and Bank of East Asia.
Completing the domestic incorporation process is the gateway for overseas banks to be able to provide the same retail services as their domestic competitors. Overseas banks were previously allowed to offer retail yuan services only to expatriates and retail foreign exchange services to Chinese.
Eight other overseas banks are awaiting approval of their incorporation applications.
The first four banks, which began operating under their new names yesterday, will all offer yuan-denominated mortgages, wealth management products, deposits and loans, starting in about two weeks. All but Citigroup said they may launch their own brand of credit card.
Citigroup plans to issue its own debit cards and will continue to offer credit cards with local partners Shanghai Pudong Development Bank Co and Guangdong Development Bank.
The American financial-services company also wants to underwrite domestic bond sales, according to Richard Stanley, chairman of Citibank (China).
BEA and HSBC also said they will tap fund products in the future.
BEA has promised to waive its account management fees as an promotional incentive when it kicks off its retail yuan business in mid-April. The lender may impose fees later in response to market conditions.
The other three banks will charge management fees on small accounts.
HSBC will charge 300 yuan a month for value-added, premium-services to customers whose daily average balance is less than 500,000 yuan. There will be no fees for balances above that amount.
The bank will charge 150 yuan a month to its non-premium clients if the average daily balance is less than 100,000 yuan.
Citigroup and Standard Chartered Bank will disclose their charges later this month.
The four banks also indicated yesterday that they have big expansion plans for the Chinese mainland.
HSBC Bank (China) will open around 30 new outlets this year, up from its current 35.
BEA is scheduled to triple to 100 outlets by 2010 from its current 34.
Citibank (China), with four billion yuan in registered capital, plans to boost its outlet number to 30 at the end of this year from 16 at present, and Standard Chartered Bank will expand to 40 from the current 23 in the same period.
See more on B2
HSBC to hire 2,000 staff for 30 new outlets
April 2nd, 2007HSBC will hire 1,000 new staff this year and another 1,000 staff next year, as it adds 30 new domestic outlets on the Chinese mainland, bank officials announced this morning in Shanghai.
The bank opened its locally incorporated branches in Shanghai today and will offer unlimited service on the mainland after it undergoes Chinese banking regulator's inspection for readiness. Three other foreign banks -- Citigroup Inc, Bank of East Asia and Standard Chartered Bank ¨C also have been approved.
The four banks will be able to offer a full array of retail yuan business such as deposits from Chinese clients and issue credit cards.
Allowing foreign banks to set up branches in the country is part of China's commitment to open its banking sector as part of an agreement to enter the World Trade Organization.
In December, nine overseas banks including Hang Seng Bank, Mizuho Corporate Bank, Bank of Tokyo-Mitsubishi UFJ, DBS Bank and ABN Amro Bank N.V. gained approval to prepare for local incorporation in Shanghai.
Salary grows 10 percent last year for city staff
March 30th, 2007SHANGHAI employees earned 29,569 yuan (US$3,820) on average last year, growing 10.2 percent from a year earlier, Oriental Morning Post reported today, citing the local statistics bureau.
Civil servants, employees of government institutes and company workers were all covered in the report, said Ye Weihong, an official of the Shanghai Labor and Social Security Bureau.
The before-tax income consists of salary, bonuses and subsidies, the report said.
The city is expected to raise the subsidy for elders and women as well as social security fund standard because these standards are based on the city's average salary.
The city's average salary has kept a growth of 10 percent in recent years, with yearly income reaching 26,820 yuan in 2005 and 24,396 yuan in 2004, the report said.
Best employers
March 30th, 2007THE 2008 China's Top Employer selection program in the Shanghai Region was launched in the city yesterday.
Sponsored by the Netherlands-based Corporate Research Foundation, the annual selection program will send researchers to evaluate companies on the basis of compensation and benefits, working condition, training, promotion and career development, corporate culture and innovation to work out a list of the best employers in the city. Applications will be due by September and the result will be announced in November.
Citigroup to Add Jobs in Asia; Cuts Loom Elsewhere
March 30th, 2007March 29 (Bloomberg) -- Citigroup Inc. Chief Executive Officer Charles Prince may add more than 10,000 employees in Asia through acquisitions at the same time he looks to reduce annual expenses by at least $1 billion.
Citigroup plans to buy Bank of Overseas Chinese in Taiwan and Tokyo-based brokerage Nikko Cordial Corp. The biggest U.S. bank also is hiring about 1,000 people this year to increase its corporate, consumer and investment banking businesses in China, Prince said.
``When we expand through acquisition, people come along with that,'' Prince said today at a press briefing in Beijing. ``We get lots of great people through transactions.''
Prince is under pressure from shareholders because Citigroup's stock is trailing competitors and expenses increased twice as fast as revenue last year. Prince named Robert Druskin chief operating officer in December and asked him to identify ways to cut costs by the time the New York-based company reports first-quarter earnings next month.
Citigroup generates about 20 percent of its profit from Asia, compared with 41 percent at London-based HSBC Holdings Plc. The 57-year-old Prince has said he wants to generate more than 60 percent of earnings from outside the U.S., up from 45 percent last year.
Prince didn't discuss details of the company's acquisition plans for Taiwan today.
``We have very strong growth throughout the international space, both in the emerging markets and in selected developed markets,'' Prince said. ``Expansion in Japan should be very good,'' he said, referring to the proposed $13.4 billion purchase of Tokyo-based Nikko Cordial.
Trailing Peers
Shares of Citigroup trailed Bank of America Corp. and JPMorgan Chase & Co. for the past five years as the company's profit growth lagged behind its two biggest U.S. rivals. Citigroup's stock climbed almost 7 percent during the past 12 months, compared with Bank of America's 10.4 percent advance and JPMorgan's 15.1 percent gain. Shares of Citigroup are down 8.5 percent this year. The stock was up 55 cents at $51.51 at 10 a.m. New York time.
Citigroup will cut more than $1 billion in costs this year to boost profit growth and the stock price, said a person with direct knowledge of the matter in January. As part of the plan, the company won't replace employees when they leave, said Manuel Medina-Mora, Latin America chairman and a member of the company's management committee, in an interview last week in Mexico.
Buyout Attempts
Prince then said on March 26 that Citigroup doesn't have a ``formal process by which we simply don't replace people who are leaving. You have to be more flexible.'' Prince has declined to comment on a report in the Wall Street Journal that the company will eliminate 15,000 jobs, or almost 5 percent of its workforce.
Citigroup's operating expenses jumped 15 percent to $52 billion last year, while net revenue rose 7 percent to $89.6 billion.
The company is pursuing the takeover of Nikko Cordial, Japan's third-largest brokerage, to add about 12,000 employees, more than 100 branches and 30 trillion yen ($256 billion) of clients' assets in Asia's biggest economy. The takeover is opposed by David Herro, chief investment officer at Chicago-based Harris Associates LP and one of Nikko's biggest shareholders, who says the offer is too low.
Citigroup is close to buying Taiwan's Bank of Overseas Chinese, the country's regulator said in a March 13 interview. Bank of Overseas employs about 2,000 people, data compiled by Bloomberg show. The purchase would give Citigroup 55 branches on the island, where the government won't allow any new outlets to be opened as it encourages mergers in the industry.
`Unparalleled Promise'
Taiwan's economy grew 4.6 percent last year, while China expanded 10.7 percent, the fastest among the world's major economies. Citigroup has about 3,000 people working in China and plans to increase that figure by about a third.
``China stands out as a country of unparalleled promise,'' Prince said. Citigroup will continue to build ```our investment- banking business in China,'' he said.
Zhao Jing joined last year from Morgan Stanley to head the China investment-banking team. The firm hired Eugene Qian from Deutsche Bank AG this week after recruiting Zhang Wendong from UBS AG in January.
Citigroup will continue to invest in its partners in the country, Prince said. The bank led a group in December that bought 86 percent of Guangdong Development Bank. Citigroup also plans to increase its stake in Shanghai Pudong Development Bank Co. to 19.9 percent from 3.78 percent.
Chinese Home Appliance Companies Promote "Green Manufacturing"
March 29th, 2007Chinese home appliance manufacturer Changhong has announced in Beijing the launch of the 2007 China Green Manufacturing Enterprise Manifesto.
Along with many other electrical manufacturers, Changhong promises to abide by the relevant state laws and regulations and promote the green manufacturing causes in China.
Yang Dan, a deputy chief engineer from Changhong, announced the manifesto on behalf of Changhong and about 20 Chinese electrical companies at the 1st China Green Manufacture Annual Meeting. The participating enterprises made commitments at the meeting to carry out the E-product Pollution Control and Management Measure issued on March 1 this year and implement the relevant provisions to stick environmentally-friendly signs on their products made after March 1.
China's new RoHS measure requires that all electronic companies mark the names of harmful substances and their quantity on certain types of electrical products.
Adea completes acquisition of CVR Consulting
March 28th, 2007BANGALORE: Adea, a global provider of information technology solutions with regional headquarters in Dallas, U.S., London and Bangalore, has completed a major acquisition in the U.S. and launched operations in China. Adea reported FY 2006 revenues of $200 million, a four-fold growth since the previous year.
Adea Chairman, Abid Abedi, said CVR Consulting, a SAP services provider to the U.S. Government agencies, was acquired for $14 million and helped Adea grow its presence in the public sector. In addition, SAP services will be offered to European clients.
Most of CVR's senior consultants, familiar with the U.S. Government are likely to be retained.
"After a detailed analysis of the IT market in China, we selected the base there considering the access to a talent pool with low attrition levels. China has some excellent technical schools and delivery centre there is expected to start operations in the second quarter of 2007. We expect a $55-60 million revenues from there and will invest close to $30 million to start with," said Adea's CEO, Shouvik Bhattacharya. Together, the expansion would help the company cater to all needs of clients in IT-related services, such as ERP, SAP and Oracle and talent acquisition through a BPO division focused on IT recruiting for client companies.
Mr. Abedi announced that a four-member team from MIT's Sloan School of Management worked on the global strategy and planning for Adea and the strategy team had students from several countries including India, China, the U.S. and the U.K.
Google Targets Fake Sales Agents In China
March 27th, 2007Song Zhongjie, channel supervisor of Google China, has arrived in Nanjing and initiated the company's battle against fake agents.
There are more than 300 Internet companies in Nanjing and local media report that over one half of them claim themselves to be agents of Google, but Song says they are mostly fake agents. Song says that Google has a total of 22 agents in China, but only one of them is located in Nanjing.
At present, the Nanjing market is disorderly as a result of these fake agents and many companies have been cheated by the fake agents who provide similar services to that of Google. Often the agents will claim to be able to be able to place advertisements on Google's search engine, but they will instead take a client's money and not provide any services.
Not Enough Jobs for China's Graduates
March 26th, 2007Chinese university graduates are finding it increasingly difficult to land a job. China has more than doubled university enrollment during this decade, and educated job seekers are entering the labor force at a record rate. The government's goal was to provide more skilled workers for the rapidly growing economy. However, for more than half of this year's crop of university graduates -- about five million young men and women -- unemployment is the main prospect. Sam Beattie reports for VOA from Beijing.
Months before graduation, Beijing university students are already heading to job fairs, to start applying for positions and to gain valuable experience in the job-hunting process.
An estimated 100,000 positions will be offered at job fairs in Beijing this month, but there are many more students chasing those opportunities. Competition is fierce.
Li Yan
Li Yan has no brothers or sisters. She is a typical product of China's one-child policy. She speaks for many. "My family has given me a lot, so I want to give a lot back to them. I am trying my best to make sure I am in a position so that I can give something back to my parents."
Like many young Chinese, Li Yan did not have a part-time job in high school, and she only works at odd jobs when it suits her. Her parents covered all of her school expenses. In return, she will be expected to give around one-quarter of her salary back to her parents once she enters the work force. "I really want to support my family. I am over 20 years old now. I need to work hard and make money for my family, to make them happy and their lives better."
But having limited work experience is making the job search process harder.
For a growing number of employers, good university grades are not enough. They want life experience as well as a good academic record. Yang Chun Xiu is with China HR, a leading personnel-recruiting company. "There are more and more graduates every year, but the graduates do not know where to position themselves in the job market. Most employers at the moment want people with experience, so it's harder for graduates to find a good job."
Yang says employers prefer candidates with two or three years' work experience to help boost their growing businesses. Experts say the job crisis is mostly in the big cities. In the countryside, some companies face a serious shortage of qualified workers.
Hu Xingdou
Hu Xingdou is a professor of economics and China issues at Beijing Institute of Technology. He says graduates need to understand they cannot all land their dream jobs fresh out of university. "Some students feel because they have graduated university they are elite -- and maybe they are -- but really, they still need to join the common work force. There are not too many university graduates; they are just not in the right areas."
He says graduates looking for work should consider moving from the major cities to smaller towns, or even the countryside. Through financial incentives, the government could make this more attractive.
Like young people everywhere, China's graduates don't seem to want to give up the bright lights and perceived opportunities of the big cities to go where life is less exciting. So job fairs will continue to attract scores of applicants for every available job.
The AmeriChinaB2B Connection Makes Distributor Recruiting in China Easier
March 26th, 2007PALO ALTO, Calif. ¡ª AmeriChinaB2B, the importing and exporting Internet marketing platform to China has launched its newest service, a web portal exclusively for recruiting distributors. The recruiting portal is designed to provide U.S. businesses with assistance in locating distributors, middlemen or manufacturing sourcing sites in China¡¯s vast industrial base.
Ben Lee, President of AmeriChinaB2B hopes that with his company¡¯s assistance U.S. businesses will be able to overcome the barriers that exist in China which block many businesses efforts to locate the right representative or access local markets.
AmeriChinaB2B, after launching its Internet import and export marketing platform in January, has now introduced a new distributor recruiting service portal. The web service, in addition to its existing services, will help small and medium sized U.S. businesses to recruit distributors within China¡¯s industrial trade channels. The Internet recruiting service is a unique recruiting web portal for U.S. companies to locate, recruit and hire distributors, sales representatives and local talents in China.
American businesses will be able to connect through the website with distributors, middlemen, agents and manufacturing sourcing sites to build sales channels in China. AmeriChinB2B, with its partners in China and combined knowledge of the Chinese culture, language and business markets, will be able to guide U.S. companies through the bureaucratic hurdles of regulations and policies that so often prevent entrance into Chinese markets.
Ben Lee believes that his company and its Internet web platform is the best way to begin to approach the Chinese export market. ¡°AmeriChinaB2B recognizes that there are many difficulties facing U.S. companies when trying to enter into the Chinese business markets,¡± Lee said.
¡°With our recruiting portal focused on connecting with trade channels in China, we are able to locate and recruit the right distributor organizations and manufacturing firms,¡± Lee added.
The AmeriChinaB2B recruiting process begins with conducting a distributor candidate search in all major industrial regions of China. By posting recruitment messages on the Internet recruiting platform U.S. companies are able to find sales agents, sales channels.
The Internet recruiting portal main function is to help U.S. businesses find sales agents, sales channels, and distributors through numerous job market sites, professional sites, chamber of commerce, and professional organizations. The recruiting portal offers an online filtering system, which chooses candidate¡¯s resume matching client¡¯s requirement based upon their industrial experience, sales and marketing experience, education background, and their locations.
This matching process is followed up with credential investigation system to verify the candidate¡¯s academic credibility, employment references, English certification and work ethic are checked through various domestic credit systems. After passing AmeriChinaB2B initial assessment, it¡¯s experienced Chinese recruiting experts subsequently interview the candidates to verify their qualifications. After these steps are completed, AmeriChinaB2B then recommends the pre-qualified candidates to U.S. companies.
And every effort of the AmeriChinaB2B Internet recruitment portal¡¯s focus is on helping U.S. companies have distributor or sales agents. Interestingly enough, many people and businesses in China have a great desire to work with U.S. companies. This connection helps both U.S. and Chinese companies do business better.
Hitachi to cut 11% of workers in hard disk unit
March 22nd, 2007HITACHI Ltd, Japan's biggest electronics group by sales, said it will eliminate 11 percent of its workers at the hard-disk drive unit and shut factories in Mexico and Japan to turn around the unprofitable business, Bloomberg said today.
About 4,400 out of the 40,000 jobs worldwide at the disk unit will be cut, saving about US$300 million over five years, the Tokyo-based company said today in a statement through Business Wire.
Hitachi, which also sells consumer electronics and nuclear power equipment, has about 327,000 employees worldwide. The company's stock gained as much as 5.4 percent in Tokyo today.
The job cuts and factory relocations are part of Hitachi's plan to return the unit to profit and tap growing demand for disks used to store computer data. The unit will probably report an operating loss of 43.7 billion yen (US$370 million) this fiscal year because of falling prices, Hitachi said in February.
``It's a plus for Hitachi as it can increase the company's production efficiency,'' said Haruo Sato, a Tokyo-based analyst at Tokai Tokyo Securities Co. ``The point is whether the company, which hasn't been good at making products cheaply, can improve its manufacturing technology.''
Hitachi, which bought the hard-disk operations of International Business Machines Corp in 2002, ranked third among makers as of the third quarter of 2006, according to researcher IDC.
The company had a 17 percent share of a global market that will probably grow about 13 percent to 494,300 units in 2007, IDC forecasts.
Production of hard-disk drive parts known as sliders will move to an existing factory in Laguna, Philippines, and a facility in Guadalajara, Mexico will be shut, the company said.
Hitachi will concentrate manufacturing of the disks at its factory in Shenzhen, China, and will phase out production in Odawara, Japan by the fourth quarter of 2007. At its facility at Prachinburi, Thailand, the company will increase output of 2.5-inch automotive hard-disk drives, it said.
The company said in February will book 180 billion yen in depreciation charges this fiscal year, 89 percent of which is for the disk drive business, it said.
Hitachi had initially forecast a return to profit for the unit in 2006.
``Steeper than usual price declines were the main reason,'' the company reversed its projection for the unit to a loss, Hiroaki Nakanishi, who heads Hitachi's disk drive unit, said at a news conference in Tokyo today. ``We also failed to introduce new products effectively.''
Shanghai Electric Signs JV For Renewable Energy Market
March 21st, 2007Xantrex Technology has entered into an agreement to form a joint venture with Shanghai Electric Group's Shanghai Power Transmission & Distribution Company to design, manufacture and sell solar and wind power electronics products exclusively for the renewable energy market in China from a facility to be built in Shanghai.
"The establishment of this joint venture with a member of the Shanghai Electric Group is an important milestone in creating a strong presence for Xantrex in China," said Mossadiq Umedaly, Xantrex's Chairman. "The renewable energy market in China, which has the potential to be very large, is integral to our long-term growth plans, and Shanghai Electric is a resourceful and strategically attractive partner."
Dinan Huang, President of the Shanghai Electric Group said, "We searched extensively for the best partner and are very pleased to secure this joint venture agreement with Xantrex. Together we will address the rapidly growing renewable energy market in China, which complements our leading electricity generation, transmission and distribution businesses."
The joint venture, to be owned 49% by Xantrex and 51% by SPTD, will be known as Shanghai Electric Xantrex Power Electronics Company. The total initial investment will be US$20 million and the new entity will have a registered capital of US$10 million. The joint venture is expected to receive final approval from the Chinese government in the next few weeks.
China's new Renewable Energy law has made one of the largest state-sponsored commitments toward renewable energy by requiring 15% of the country's energy mix to be from renewable energy sources by the year 2020.
"This joint venture will provide Xantrex access to China's Renewable Energy market, while ensuring that customers in China benefit from the quality and reliability of our proven technology made in China by our joint venture," said Xantrex CEO, John Wallace.
Chinese Job Seeker Sues Nokia
March 20th, 2007A Chinese job seeker, identified only by his surname Li, has filed a lawsuit against mobile phone giant Nokia Dongguan, a subsidiary of Nokia China, for not employing him because he is a Hepatitis B virus carrier.
The job seeker says that Nokia Dongguan cancelled plans to hire him after a physical examination. Li believes that as a big company, Nokia should have better understanding of the disease and should not refuse him employment because of his illness. Li is asking Nokia to employ him and pay him RMB500,000 for mental suffering.
Nokia's global employment policy states that the company will not turn down job applicants because of chronic illnesses unless they can't do the job or if they impose serious danger to others. A spokesman for Nokia has told local media that Nokia is investigating the case and they will take necessary measures to correct any wrongs if the Dongguan company has really made a mistake in refusing Li employment with the company because of his illness.
A vaguely written Chinese law in 2004 does forbid discrimination against Hepatitis B sufferers in most areas except in the food industry.
Hiring a CFO in China
March 19th, 2007ChinaForum
With the right credentials, the opportunities for chief financial officer candidates are wide open in China. But those credentials are very different than expectations in the United States or Western Europe. Success is linked to the ability to set up processes and systems, as well as the ability to thrive in the local environment.
Demand, supply
When foreign companies move their manufacturing operations to China from nearby Asian countries, moving regional headquarters follows. Then the banks come along. This migration has created a huge demand for qualified financial professionals and a special demand for a unique type of CFO.
Thomas Zhou, an executive recruiter with DaCare Executive Search in Shanghai, told ChinaForum, “On the corporate side, the hiring activities are quite busy because all companies need a CFO or controller. Financial management helps them grow the business. We do quite a lot at the controller and CFO positions.”
Other recruiters see the same. In a recent article “Hiring Days are Here Again,” consulting firm Wang & Li says, "The greatest need area that we are getting is for candidates with strong financial management backgrounds who are able to take on CFO and Controller positions.... In addition to being familiar with both international and China GAAP, such a person must also have very strong experience in setting up financial systems and processes."
To underscore the importance of systems knowledge and process, a study last year by PriceWaterhouse Coopers and CFO Magazine said that one reason CFOs in China find financial reporting a struggle is incompatible IT systems and poorly trained staff. Ting Liu of PWC’s advisory group in Beijing was quoted as saying, “The key reason that the finance function in China is not up to world class standards is mainly due to a shortage of qualified professionals as well as the advanced techniques coupled with state of the art IT systems.”
At smaller companies, Wang & Li, which specializes in placing international caliber bilingual professionals, points to a disconnect between the international environment expected by many CFO candidates and the localized environment of the businesses that need them. "Typically, the direction and intent of both the board and executive management team is there, but the day-to-day operating realities are quite a different story. Therefore, it requires a person who really understands how to get results and bring about fundamental change in a highly local Chinese company environment."
Some companies take the route of not hiring a CFO at all. Lehman Brown, for example, provides outsourced CFO services for companies that have good finance teams in place but which lack the resources to hire a full time CFO, or which have only sporadic oversight requirements.
Credentials
Most CFO candidates Zhou sees have their CPA credential, which they typically earn in China. Although an MBA is not always necessary, many have earned graduate degrees and certifications overseas in the U.S. or U.K. Some candidates are trained by their companies or they are promoted to the Asia-Pacific level (Hong Kong, Singapore, Kuala Lumpur) and are trained there, he says. Other recruiters say companies like to see candidates with both an MBA and CPA, although finding such a candidate is rare in China’s tight job market.
Special skills
At a multinational company operating in China, bi-lingual fluency is not only an advantage but a necessity. “The person has to be able to speak English and Mandarin very well,” Zhou says, and be able to read and write both languages. “English is a must because he will have to report to headquarters in Europe or the U.S.”
Fluency in changing accounting regulations and market knowledge is also important. Not only must candidates be very familiar with the U.S. GAAP and China GAAP, but they should understand the China market and the U.S. market.
Soft skills are also important, Zhou told ChinaForum. “They should be able to manage a team. And personality is always very important. You have to be able to communicate very well.”
David Yeoung, a partner in the CFO and professional services practice of Hendricks & Struggles in Beijing, says that IPO experience is also helpful, given the number of overseas IPOs, although it’s not absolutely necessary as most investors know that IPOs are driven by teams. It is more important for the CFO candidate to have run the full financial function.
Ambition, a recruiting firm with offices throughout Southeast Asia, reports a trend toward “exact fit” hiring of CFOs, leading to a more rigorous selection process, which can take six months. With CFOs in China now highly visible after recent accounting scandals, and with responsibility far beyond accounting, the risks of hiring the wrong candidate must be avoided. One of those risks is simply not fitting into the corporate culture, which is why “internal candidates” are often perceived to be the right choice for regional CFO positions.
Meanwhile, Ambition is also observing in China new “governance roles,” which support the CFO in compliance and financial reporting matters. New roles are leading to job creation and increased opportunities for senior level financial professionals beyond the CFO title, often at high rates of compensation. Ambition describes this as a new governance support profession.
Hiring
Zhou’s search group is typically used by foreign companies doing business in China, generally the Fortune 2000, and including such companies as Intel, Microsoft and EBay. When a company seeks a high level executive or CFO, his firm is able to attract candidates by presenting the company well and offering an attractive package, which can mean more than straight compensation. In China, he notes, the job title is important. “More and more candidates like to see their career progress while they are working in the company.” Rather than the title China CFO, many would like to see the title CFO- Asia-Pacific, according to Zhou.
And whereas China has a reputation for being a low-cost labor pool, hiring at the CFO level is an area where scrimping doesn’t work. One mistake that corporate executives typically make is thinking that they will be able to hire financial talent cheaper in China.
In a June interview with the Dallas Morning News, Martin Tang, Spencer Stewart’s chairman for Asia, said that some companies think they can hire a CFO in China for as little as $40,000, but learn it may cost five times that, or more. Not only that, but wise companies over-hire to sandbag against employee dropout.
Tang described five talent pools from which executives are chosen: (1) Western expatriates, (2) Asian expatriates, (3) Chinese natives who return after earning graduate degrees abroad, and (4) Chinese locals who have remained in China. Of these, the most valuable are the Chinese who return from abroad, according to Tang. That’s because they have education, knowledge of both cultures and the advantage of being Chinese themselves.
When multinationals can’t find these returnees, Hendrick & Struggles’ Yeung says they should consider foreign CFOs who have worked in China “for a meaningful period of time” rather than hiring expatriates. Ambition reports that it is “extremely rare for a full expatriate package to be offered to a CFO hired locally.”
In Zhou’s experience, half the candidates are coming from the Mainland, half are expatriates. Local candidates “can have a good degree, be well trained in the Big 4, also have some industry experience and work long enough in the local markets for a multinational company. Even if they don’t have overseas background, they can get small or medium size CFO positions.”
In terms of pay, the CFO title in China doesn’t guarantee a large salary, except in certain industries that require specialist knowledge. Increasingly, CFOs are expected to demonstrate a record of success. Ambition reports that corporate governance concerns have led to a general scrutiny of CFO pay packages, with compensation trending toward performance based incentives.
Retention
Churn at the CFO level remains relatively low. According to Zhou, “Turnover rate at the CFO level is not that high. I won’t say that’s a problem in China. I would say that’s a stable position.” The Ambition recruiters concur, especially for non-Chinese speaking CFOs who may be reluctant to move on because they see the “dwindling demand for non-Chinese speakers.
Headcount: Wrong Way Huawei
March 18th, 2007Here at Headcount HQ, we're always interested in tales from the high-rolling, globetrotting executive recruitment market – especially when they involve mysterious companies like Huawei Technologies Co. Ltd.
A high-level network architect recently recounted a strange tale in which he was recruited by two corporate recruiters and a half-dozen Huawei managers, only to end up with an offer that was roughly half of what he earned in the States. To take the job, Huawei also wanted him to relocate his family to China and live in Huawei's corporate housing – without a relocation package or an education budget for his kids.
Something got lost in translation.
"What a waste of time," said our source, who described the Huawei recruitment process as some sort of "Keystone Cops" experience.
The failed seduction started when our source got a call from a Huawei recruiter in Beijing. Our source says that after he expressed interest, he was quickly bounced from recruiter to manager to manager, back to recruiter, and then eventually to a manager at Huawei's FutureWei subsidiary in Texas.
Not only was nailing down the exact requirements for the job difficult, says our networking expert, but none of the Huawei executives could agree on where he should be based. The office proposals ranged from Beijing to Shenzhen. Sydney, Australia was mentioned, too, and that's a long drive from Futurewei's office in Plano.
Finally, our source asked for a formal letter with a formal offer. What he got was a letter asking him to take a laughable pay cut and pack his bags for a company dorm in Shenzhen.
Headcount hopes this yarn serves as a warning for execs everywhere: A bit of fragrance clings to the hand that gives flowers. Actually, that wasn't the lesson at all. That just came up in my Chinese proverbs desk calendar. Oh, well...
China Career Builder Corp. Announces Plan to Acquire Asian Career Company Ltd. of Hong Kong
March 18th, 2007HONG KONG, March 14, 2007 (PRIME NEWSWIRE) (PRIMEZONE) -- China Career Builder Corp., (Pink Sheets:CCBX) a Delaware Corporation, is focused on outsourcing human resource services and staffing in Hong Kong, China. The company is pleased to announce a plan to acquire Asian Career Company of Hong Kong. The company is expected to complete the transaction in the next Two (2) to Four (4) weeks. All additional information will be available upon finalization of the acquisition. The company will make further announcements in coming weeks.
About the Company
China Career Builder Corp. is a provider of outsourcing human resource services and staffing. The company provides recruitment services focusing on the professional, management, clerical, administrative, IT and industrial market in Hong Kong, China. Its services include screening, recruiting, training, workforce deployment, loss prevention and safety training. In addition it supplies pre-employment testing and assessment, background searches, compensation program design, customized personnel management reports, job profiling, description, application, turnover tracking and analysis, opinion surveys and follow-up analysis. It conducts exit interviews and follow-up analysis, and management development skills workshops. The company markets its recruitment services by way of a combination of direct sales, telemarketing, trade shows, and advertising.
Safe Harbor Statement
Certain of the statements set forth in this press release constitute "forward-looking statements." Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate," "project," "intend," "forecast," "anticipate," "plan," "planning," "expect," "believe," "will likely," "should," "could," "would," "may" or words or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's limited financial resources, domestic or global economic conditions -- especially those relating to China, activities of competitors and the presence of new or additional competition, and changes in Federal or State laws, restrictions and regulations on doing business in a foreign country, in particular China, and conditions of equity markets. The Company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.
CONTACT: China Career Builder Corp.
Mona W. Y. Yim
852-3527-0661
Xara Group of Consultants Ltd.
Investor and Public Relations
Nixon Lau
302-261-2421
Baidu Will Offer Search Engine Service For The Blind
March 16th, 2007Chinese search engine service provider Baidu.com says it will soon launch a barrier-free service for the blind and those with visual disabilities.
Baidu began developing the barrier-free project about six months ago and named it "The Blind's Lane Program". This program has reportedly received great support from the China Blind People's Association.
China has about 5 million blind people, accounting for 18% of the world's total. It also has more than 6 million people who have visual disabilities.
Although there is a lot of software for the blind to use, most of the software are not specially designed for the blind to approach and search Internet information. Baidu says this is why it has launched this new service.
AutoMart To Offer Mandatory Exhaust Inspections In Beijing
March 16th, 2007AutoMart-China, the largest independent auto aftermarket company in Beijing, has signed a Letter of Intent with Beijing Wan Quan He Automotive Certificate Company as its first step in being able to perform mandatory safety and exhaust inspections at its repair and maintenance centers.
AutoMart said the non-binding LOI is with Wan Quan He, which is authorized by Beijing's municipal government and Ministry of Communications to conduct annual tests for cars and motorcycles in the capital city. WQH is also authorized to conduct motor vehicle exhaust testing, as authorized by the State Environmental Protection Administration of China.
AutoMart, with more than 450 employees serving the auto aftermarket in Beijing, is currently working to finalize the agreement and add mandatory safety and exhaust inspections to its other services, including auto repair, parts, and insurance, said the company's Chairman and CEO Pang Guisan.
"Annual safety and exhaust inspections are required by the government for the more than 4 million cars and motorcycles in Beijing," Pang said. "AutoMart is excited about the opportunity to partner with WQH and serve this emerging market. AutoMart plans to work with WHQ in order to gain access to virtually millions of owners of cars and motorcycles, and be able to cross-market our other repair, parts and insurance products to them."
Chinese Workers To Increase Salaries Faster Than American Counterparts
March 15th, 2007New research reveals real pay increases for workers in the United States will substantially lag those in China and India in 2007.
The Hay Group says their new research shows says administrative, professional and senior management employees are predicted to see real increases of just 1.4%, versus increases approaching 8% in high-growth economies.
"Much like their colleagues in Europe, US employees will be seeing relatively modest increases in base salaries when compared to the emerging economies," said Iain Fitzpatrick, General Manager of Hay Group's US Reward Information Services. "Projected 2007 increases are fairly consistent with real increases seen in the US over the past several years."
Hay Group's Global Pay Day analysis, compiled using Hay Group PayNet, one of the world's most comprehensive global pay databases, predicts real base salary increases for administrative, professional and senior management in 2007 for 50 countries worldwide, based on employers' projections once inflation has been considered. The PayNet database contains 7 million individual records from 13,000 organizations in 19 job families across a number of industries.
"The wealth created by rapid, focused economic development is resulting in a pay boom for Chinese and Indian workers, who will enjoy some of the largest real pay increases worldwide in 2007," said Hern Yin Goh, Director of Hay Group Reward Information Services in Shanghai.
China tops the tables for each of the three job categories, with a predicted 7.9% increase for administrative workers, 7.8% for professionals and 8.9% for senior management. High pay increases in India last year ¡ª 7.2% across the board ¡ª look set to continue into 2007. The country boasts the second highest pay increase predictions for 2007, with increases of 6.2% forecast across the three job levels. Senior managers can anticipate a real increase of 6.9%, professionals and administrators 5.9% each.
Wal-Mart Unveils Plans To Score Electronics On Environmental Sustainability
March 14th, 2007Wal-Mart has released criteria that will be part of a scorecard used to evaluate consumer electronics suppliers on the environmental sustainability of their products.
Starting in 2008, Wal-Mart will ask suppliers around the world to fill out the scorecard and buyers will have the option to use the scorecard results to influence purchasing decisions. The announcement reflects the larger company strategy to sell products that sustain natural resources and minimize impact on the environment.
"Wal-Mart believes that this scorecard will move electronics in the right direction¡ªa sustainable direction," said Ross Farnsworth, divisional merchandise manager of home electronics at Wal-Mart during his speech at the 'Take It Back' conference in the United States. "The scorecard encourages improvements that are good for business as well as for the environment, reflecting Wal-Mart's view that being a profitable and efficient business goes hand-in-hand with being a good steward to the environment."
Next year, Wal-Mart will ask electronics suppliers to fill out a scorecard that will assess the sustainability of their product. The scorecard will evaluate electronics on energy efficiency, durability, upgradability, end-of-life solutions, and the size of the package containing the product. Products will also be evaluated on their ability to use innovative materials that reduce the amount of hazardous substances, such as lead and cadmium, contained in the product. The end result is a score that shows suppliers where improvements can be made and allows Wal-Mart to evaluate the environmental sustainability of the product.
"Many electronics contain hazardous materials and are disposed of improperly. The scorecard issues a better score to those suppliers who build products with fewer hazardous materials and offer electronics recycling opportunities to customers," added Farnsworth.
Some suppliers are already integrating the metrics into their products. Currently, many of the computers and televisions sold at Wal-Mart are compliant with the Reduction of Hazardous Substances (RoHS) standards, including the popular Toshiba Satellite A55 laptop.
To encourage suppliers to start implementing the scorecard metrics into their products now, Wal-Mart is co-sponsoring an innovative design contest with the Green Electronics Council. Suppliers are encouraged to submit a consumer electronics product that puts the scorecard metrics into practice. The winner's product will be carried in Wal-Mart stores throughout the nation.
As suppliers are encouraged to become more sustainable, Wal-Mart is continuing with its own sustainability initiatives in its Electronics Network. In February, Wal-Mart co-hosted a series of electronic waste 'Take Back' days. Together with Hewlett-Packard and the U.S. Environmental Protection Agency, Wal-Mart collected more than 140,000 pounds of old electronics for recycling from residents in Florida, Georgia, North Carolina and South Carolina. In addition to the Take Back days, Wal-Mart offers year-round in-store recycling of cell phones and ink cartridges and encourages customers to buy energy efficient products.
Lenovo Encourages More Female Engineers
March 12th, 2007Lenovo has announced its sponsorship of the "Global Marathon For, By and About Women in Engineering," a live webcast event that will be broadcast to a worldwide audience on March 22.
Lenovo also pledged its multi-year support for the National Engineers Week Foundation and the Global Marathon. This third annual Global Marathon will provide a global audience of K-12 and college students, teachers, counselors, parents and professional women engineers access to top women engineers in leading institutions and industries around the world.
Lenovo will kick off the live Global Marathon from its executive headquarters near Raleigh, North Carolina in the United States at noon EST and will feature Fran O'Sullivan, senior vice president of the Lenovo Product Group, and Dr. Sally Ride, former astronaut and the first American woman in space.
"Lenovo is focused on cultivating a diverse and talented pipeline of engineers. By reaching students early, we can help them overcome the subtle social obstacles that often turn school-age girls away from technical professions," said O'Sullivan. "This is our way of inspiring the next generation of women engineers by exposing them to a wide showcase of role models who have built distinguished careers in technical fields."
O'Sullivan and Dr. Ride will also lead a Q&A session at Lenovo with students from North Carolina schools during the live Global Marathon webcast.
Lenovo's global engineering team will also participate in the Global Marathon, giving presentations from countries including China and Japan. Over the course of 24 hours, various leaders from the engineering field around the world will hold conversations through webcasts, Internet chats and conference calls in an effort to encourage girls to pursue engineering careers
ACFTU Officials Meet Female Workers To Celebrate International Women's Day
March 9th, 2007March 8 is International Women's Day and officials from the All China Federation of Trade Unions, led by Sun Chunlan, secretary general of ACFTU's Secretarial Department, have visited female employees and female migrant workers to give their support.
The entourage visited Beijing Postal Administration Jianguomen Branch, Beijing Topnew Knitting Group Company and the subsidiary of Beijing Ba Fang Da Bus Company in Tongzhou district. ACFTU officials checked the working and living conditions of the women workers in those factories and units, expressed their thanks to them and congratulated them doing good work.
Sun Chunlan said women workers are the backbone of China's industry and they have made great contributions to elevate their positions in society. She also said that the government's work report delivered by Premier Wen Jiabao at the National People's Congress shows the care the CPC Central Committee and the State Council have taken in realizing the political status, democratic rights and economic benefits for women in China.
Sun expressed her expectations for all the workers, especially women workers, to further strengthen their sense of responsibility, continue studying and work hard to make greater achievements and contribute to the realization of China's objective to build a rich society in all ways.
There are 19 staff at the letter sorting center of Beijing Postal Administration Jianguomen Branch, all of whom are female workers. Beijing Topnew Knitting Group has more than 800 migrant workers, and most of them are female. Nearly half of the 12000 migrant workers in Ba Fang Da Bus Company are women.
Following a decision agreed upon in 1910 at a Socialist International meeting in Copenhagen, International Women's Day was honored for the first time in Austria, Denmark, Germany and Switzerland on March 19, 1911. More than one million women and men attended IWD rallies campaigning for women's rights to work, vote, be trained, to hold public office and end discrimination. In 1977, the United Nations invited all member states to formally designate March 15 as International Women's Day.
Johnson & Johnson Grants To Help Along Vietnam-China Border
March 9th, 2007UNIFEM, UNAIDS and Johnson & Johnson are together providing grants to organizations in five countries to address links between gender-based violence and the spread of HIV/AIDS.
The grants will be provided by Johnson & Johnson through the UN Trust Fund to End Violence against Women, a multilateral funding mechanism administered by UNIFEM. The Trust Fund became operational 10 years ago and has so far awarded some US$13 million to 226 initiatives in more than 100 countries.
The five new grantees include organizations from Botswana, the Dominican Republic, India, Nigeria and Vietnam. Each will pursue innovative strategies to raise awareness, uphold laws, provide medical assistance, train service providers and reduce stigma and discrimination to empower women.
In Vietnam, the Center for Reproductive and Family Health in partnership with Vietnam Women's Union will receive the funds. Money will be used for improved care and counseling services and public outreach focusing on sexual health and rights will reach women and girls from ethnic minorities along the Vietnam-China border, with a focus on those who have been trafficked into forced prostitution.
"Violence against women and HIV are pandemics that deny women's human rights and devastate individual lives and societies," said UNIFEM Executive Director Noeleen Heyzer. "We welcome the opportunity to work through public-private partnerships to invest in innovative strategies. Scaled up, they can become part of national development strategies to achieve lasting change."
The grants mark the second year of a partnership between UNIFEM and Johnson & Johnson dedicated to reducing gender-based violence and the spread of HIV/AIDS. The partnership supports initiatives aimed at reducing gender-based violence to lower rates of HIV/AIDS among women and strengthens efforts to reduce violence that prevents HIV-positive women and girls from seeking justice and obtaining treatment and care.
The partnership was facilitated through the UNAIDS-led Global Coalition on Women and AIDS, of which UNIFEM is a member. The coalition has identified ending violence against women as a priority for lowering women's vulnerability to HIV and improving their access to health care.
Globally, violence against women is both a cause and a consequence of HIV/AIDS: women facing violence within intimate relationships often cannot negotiate safer sex practices, such as condom use. Rape and harmful practices such as female genital mutilation also spread the virus. In addition to untenable levels of stigma and discrimination from the community, women who test positive for HIV are often subjected to physical abuse from partners and can face eviction from their homes. Further, as a result of such stigma associated with HIV/AIDS, they are prevented from obtaining life-saving medical care and treatment.
Jobless rate among young a key concern
March 9th, 2007SHANGHAI will create 500,000 new jobs this year for laid-off workers, unemployed youth and those living in the suburbs, city officials announced yesterday.
The government said it plans to keep the registered unemployment rate below 4.5 percent this year, and will provide internship opportunities to 30,000 jobless youngsters.
Last year, 663,000 jobs were created across the city, surpassing the government's target by 163,000 positions.
"Although we fulfilled our goal last year, we should notice that unemployment among young people is becoming an increasingly prominent issue in the city," said Sheng Zuhuan, a spokesperson for the Shanghai Labor and Social Security Bureau.
More than 143,000 students will graduate from colleges and universities in the city this year, an 11 percent increase from last year, which should add to pressure in the job market.
About 49,000 of those graduate come from vocational colleges, and they will likely face the most difficulty finding work, according to Shen Xiaoming, director of the Shanghai Education Commission.
"With the growing supply of university graduates, it does pose a greater challenge for the city to tackle the unemployment problem among young people," Shen said.
The city government plans to set up training programs for 5,000 college and university graduates this year, in order to equip them with stronger vocational skills.
Each of the trainees will undergo tailor-made training at local companies and enterprises during their studies.
Expat drive
March 8th, 2007THE Shanghai Personnel Bureau plans to attract another 20,000 overseas professionals to work and start their own business here over the next five years, bureau officials said at an international human resources conference yesterday.
Volunteer Recruitment For 2008 Olympics Launched In Shanghai
March 8th, 2007Shanghai Municipality has formally launched its recruitment drive to find volunteers for the 2008 Olympic Games in Beijing.
Yu Biao, director of the Shanghai Youth Volunteer Department, says that the 2008 Beijing Olympic Games will recruit 800 volunteers in Shanghai, 700 of whom will work for the football matches held in Shanghai and the remaining 100 volunteers will go to Beijing to serve at the 2008 Beijing Olympic Games and the Paralympics Games.
Yu says that Shanghai citizens have become more and more fond of taking part in volunteer work. He says that for every ten people that ask to volunteer, only one person is chosen for these types of events.
Shanghai citizens can log onto the website of Shanghai Youth Volunteer to submit their application to be a volunteer. The search for qualified volunteers will last until March 2008.
Chinese Medicine Manufacturers Punished For Disobeying GMP
March 8th, 2007Guangdong Bioyee Pharmaceutical Company and Hainan Kangliyuan Pharm Company have been punished for violating related provisions in China's Good Manufacture Practices and their GMP licenses have been revoked.
China's State Food and Drug Administration says the two companies have been punished after a GMP audit in December 2006 revealed problems. SFDA has asked these two companies to recall related medicines and for the Guangdong Provincial Food and Drug Administration to further investigate the issue.
Bioyee is a pharmaceutical company which produces blood products, and Kangliyuan is a manufacturer of freeze dried powder for injections, capsules, pills and other raw materials for manufacturing medicine.
During 2006, SFDA conducted audits on 24 pharmaceutical manufacturers, and the GMP certificates of 13 of those companies were revoked, nine companies were asked to make changes, and two others were put under investigation.
In 1998, China's State Drug Administration first decided that all pharmaceutical manufacturers must meet GMP standards and obtain GMP certification before June 30, 2004. They then reissued the GMP regulations in 1999. In April 2003, SDA was renamed the State Food and Drug Administration. Although SFDA authorized provincial drug administrations to accelerate GMP examination in 2002, only about 3800 of the previous 6400 pharmaceutical manufacturers met GMP regulations as of July 1, 2005.
Tax rise hits European service industries
March 6th, 2007EXPANSION in European service industries slowed last month after a tax increase in Germany damped consumer spending in Europe's largest economy, Bloomberg News reported yesterday.
Royal Bank of Scotland Group Plc's services index, which gauges growth in industries from telecommunications to banking, fell to 57.5 from 57.9 in January. A reading above 50 indicates expansion. Economists expected the index, based on a survey of purchasing managers by NTC Economics Ltd, to fall to 57.6, the median of 33 estimates in a Bloomberg survey showed.
Europe's economic growth may moderate this year from the fastest expansion in six years in 2006 as higher value-added sales taxes crimp household spending in Germany and global demand for European exports wanes. The European Central Bank has still signaled it will raise interest rates this week to keep prices in check as unions demand more pay for workers.
"You'd expect Germany to be weaker on the VAT increase," said Ed Teather, an economist at UBS AG in London. The index "is still at a reasonable level, suggesting reasonable rates of growth."
Business expectations in service industries improved in February, with the sub-index rising to 68 from 67.8, the highest in 13 months. Manufacturing growth in the euro region also picked up in February, a survey showed last week. Royal Bank of Scotland's index of manufacturing sentiment rose to 55.6 after a reading of 55.5 in December.
"Growth momentum has remained firm in the first part of this year," said Silvia Pepino, an economist at JPMorgan Chase & Co in London. "Hiring continues at a solid pace."
Unemployment in the euro region fell to 7.4 percent in January, the lowest since the data was first collected in 1993.
Economic boom a bonanza for graduates
March 6th, 2007SHANGHAI'S booming economy is having a flow-on effect throughout society - and university graduates are no exception.
Monthly salaries for holders of new diplomas entering the workforce increased by nearly seven percent to 2,317 yuan (US$290) on average last year, according to the city's latest graduate wages report.
The report, released by the Shanghai Labor and Social Security Bureau yesterday, provided payment standards for 200 positions in 2,200 local companies to guide students seeking jobs in the new semester.
The overall mean figure for graduates, including polytechnic students, college and uni graduates and postgraduates, was 2,107 yuan last year, up five percent on the 2005 figure.
Master's degree holders achieved the highest income of 4,020 yuan per month. Their wage growth of 6.7 percent is second only to that of undergraduates.
Fang Zhijie, an official with the bureau's salary division, said graduates' salaries were lifted by both the economy and the huge demand in the manufacturing and services sectors.
"The city's ongoing industry restructuring has brought about demand for innovative talents with both theoretical knowledge and practical ability," Fang said.
For instance, salaries for young electronics engineers jumped 15 percent to 2,800 yuan a month.
In contrast, graduates majoring in general administration or management are facing a salary downturn.
The report said graduates working in file-management positions were paid 1,763 yuan last year, a two percent drop on the previous year.
Human Resources Conference Offers Insider Insights Into Doing Business in China
March 5th, 2007China is the world's
fastest-growing economy, offering significant opportunities for U.S.
businesses, but also a unique set of HR challenges. Quick employee
turnover, widely varying employment laws between provinces, recruiting the
right talent, benefits desired by Chinese workers -- are all issues for
companies entering China and organizations already there.
"Making China Your 'Gold Mountain,'" a new conference and exposition in
South San Francisco on May 23-25, explores the unique human resource
difficulties that can significantly affect business success in China. The
conference is hosted by XMei International, a business consulting and
development organization with expertise in Chinese business practices and
their cultural impact.
The conference is the first event in the U.S. with influential Chinese
HR executives and business leaders from multinational companies, private
Chinese companies, Chinese consulting firms and the government.
Among the abundance of practical advice, attendees will learn:
* Compensation and benefits trends, including how much to pay employees,
how to pay them, required benefits, typical benefits package, and what
benefits are most valued by Chinese workers
* How to find top talent in China, including how to advertise jobs, and
keys to retaining employees in a culture where the average length of
employment is two years.
* How Chinese culture impacts doing business in China, including how to
work effectively across cultures
* How to outsource HR services in China, including what HR products and
services are available in the Chinese marketplace
* How to comply with Chinese employment law -- and the critical
differences amongst provinces.
* Which Chinese provinces are the most labor friendly and how to set up
business in China.
Delivering keynote speeches will be Dr. George Koo and Dr. Irv Beiman.
Dr. Koo, the Director of Chinese Services Group for Deloitte and Touche,
will speak on the conference theme, "Making China Your 'Gold Mountain.'"
Dr. Beiman, Chairman of eGate Consulting, Shanghai, will address the links
between challenges and solutions of doing business in China to HR
requirements there. He'll discuss five root causes of the HR problems that
hinder successful execution of business in China.
"This conference and expo represent a great opportunity to develop a
Chinese business network," said Xiaoli Mei, president and founder of XMei
International. "Our keynoters and session speakers are completely
accessible. Those doing business in China, and those considering it, will
benefit from the educational and social components of the event."
To learn more about the conference, or to register to attend or
exhibit, visit http://www.xmei-int.com/US-China-HR-conference.html
About XMei International
XMei International is dedicated to promoting business development
between the U.S. and China. It organizes events in the U.S. and China that
enable companies to develop new business opportunities, increase knowledge
of the other country's business practices, and make valuable international
business connections. XMei International also offers other services,
including business matches, consulting and market research for U.S. and
Chinese clients.
Job centers keep busy
March 2nd, 2007A RECORD 1.05 million people applied for jobs at public job placement centers across the city last year, according to an annual labor market report.
Although most of the jobs attracted dozens of applicants, some occupations suffer from a shortage due to a lack of qualified professionals.
The report, released by the Shanghai Labor and Social Security Bureau yesterday, said 73,000 people registered for jobs with the Shanghai Job Placement Center's Website (job.12333.gov.cn) last year. Another 32,000 applicants turned to the center's 19 branches throughout the city to find work.
The total number of applicants rose by nearly nine percent from 2005, with most job seekers being 16 to 24 years old and not holding a college degree. The number of jobs listed at the center hit 1.02 million last year, an eight percent increase from 2005.
Among all the positions, administrative jobs such as secretaries, human resource assistants and finance workers attracted the most applicants.
The center said 82,000 people applied for 34,000 secretary positions last year.
Wang Jiawen, a career information analyst at the center, said the strong competition should be attributed to these jobs' low entry requirements, which allowed job seekers with moderate communication skills to apply.
In contrast, many employers were having trouble filing technical jobs.
Only 17,000 applications were received for more than 29,000 technician positions posted last year, jobs that included digital machine operators, software programmers and computer maintenance workers.
Last year's bullish stock market also generated a huge demand for security investment analysts and consultants. Only about 62 percent of the 16,000 openings were filled, however, according to the report.
BASF Helps Raise Agricultural Standards In China
March 1st, 2007BASF says India and China will be among the first countries to get access to its latest pipeline insecticide, metaflumizone.
After successful market introductions in Japan and Korea earlier in 2006, BASF in December received registration for its fungicide boscalid in China under the name Kai Tse. This product is tailored for use in the fruit and vegetables segment. Additionally, new products with the fungicide F 500 are scheduled for launch in India in the coming months, both in solo products and in combination with other active ingredients.
"As the Chinese and Indian economies grow, there is a rising demand for high-quality fresh produce," says Michael Heinz, President of BASF's Agricultural Products. "BASF is expanding in this fast-growing segment with solutions that help domestic growers offer superior produce in terms of quality and safety. We are excited about bringing our newest insecticide, metaflumizone, to these countries. Recent progress made in the protection of intellectual property is also encouraging."
With yearly sales of around $1.7 billion in 2005, China is the world's fifth-largest crop protection market. Analysts put yearly growth at between 3%-5%. Of the other top-ranked markets, only India shows similar growth.
"Of course, the high-value segment in China today is still small compared to other countries. But it is growing faster than the overall crop protection market," says Heinz. "We target this segment of the market with our innovative products, and here solutions for fruit and vegetables are key."
Sales in China have more than doubled in the past two years. BASF has ambitious plans for the Chinese market through 2012. In addition to the introduction of numerous BASF innovations, label extensions and new active ingredients will help raise the standard of agriculture in the country.
To bring the right crop protection products to China, BASF has formed working relationships with several top-tier agricultural research organizations such as Nanjing Agricultural University, the Institute of Plant Protection of Beijing Academy of Agricultural Sciences, and the Institute of Plant Protection of Shandong Academy of Agricultural Sciences. In December, BASF set up a scholarship program with NAU to extend the partnership. Earlier this year, BASF launched two projects with this university in the area of resistance monitoring and mode of action studies of fungicides. This is the first project of its kind that BASF is working on with a Chinese agricultural university at the research level.
"We are impressed by the hard work and new ideas coming from these bright young talents," says Peter Eckes, head of research and formulation development at BASF's Agricultural Products division. "We also look forward to working with these partners to bring our pipeline of innovative new active ingredients to growers in China."
Restaurant employees shocked by closure
March 1st, 2007ABOUT 70 former employees of a restaurant in Hongkou District went to the district Labor and Social Security Bureau yesterday afternoon seeking help to recover 175,000 yuan (US$21,875) they paid in deposits after the business suddenly closed four days ago.
Following a three-hour meeting, workers were told it would be difficult to get the money back and a bureau official suggested they should file a lawsuit, according to the employees.
Wu Tao, the restaurant's general manager, was nowhere to be found. His attorney Chen Daidi refused to talk to reporters yesterday.
On top of the deposits owed to workers, the Wuhusihai Restaurant, which was located on the fourth floor of a supermarket on Yixian Road, allegedly owes more than one million yuan to suppliers.
"I received an order call at 9pm on Saturday demanding we deliver livestock the next morning. I came, and found the restaurant was closed," said a livestock dealer surnamed Ding.
Restaurant staff were more astonished to find the business was closed when they went to work on Sunday morning.
Big bucks for city's HR execs on shortage
February 28th, 2007THE Shanghai-based human resource directors of foreign enterprises earned more than 200,000 yuan (US$25,641) on average last year and their salary is set to jump 10 percent year on year in 2007, Shanghai Association of Enterprises with Foreign Investment said in a recent report.
The body attributed the rise in local HR directors' income, some even higher than their counterparts of the same level in the United States, to a shortage of talent as a result of surging demand.
The average pay of a Shanghai HR director was 230,600 yuan last year, a 10.03 percent growth year on year. The average salary of HR managers was 115,000 yuan while HR specialists and assistants earned from 50,000 yuan to 70,000 yuan each, according to the association.
Demand for high-level HR talent is growing rapidly as more foreign companies move operations and facilities to Shanghai, the association said.
"I am afraid if clients ask us to find a high-level HR manager. It's a tough task, especially in Shanghai," said Edward Zhao, a consulting manager of ChinaHR, one of the country's leading Web-based head hunters.
Besides possessing specialized skills such as training and drafting an enterprise salary structure, top HR directors often need work experience of more than 15 years and at least seven to eight years for a HR manager, according to Zhao.
ExxonMobil Launches First Foreign Refining Joint Venture In China
February 27th, 2007Sinopec, the Fujian Provincial government, ExxonMobil and Saudi Aramco have together signed a contract for the Fujian Refining and Ethylene Joint Venture Project, marking a significant milestone in the development of China's first fully integrated Sino-foreign project involving refining, fuels and chemicals marketing.
At the same time, Sinopec, ExxonMobil and Saudi Aramco signed a contract for the Fujian Fuels Marketing Joint Venture Project.
The Fujian Refining and Ethylene Joint Venture Project, located in Quanzhou, Fujian Province, will expand the existing refinery from 80,000 barrels-per-day ¡ª 4 million tons-per-year ¡ª to 240,000 barrels-per-day, or about 12 million tons-per-year. The upgraded refinery will primarily refine and process sour Arabian crude.
In addition, the project will construct an 800,000 tons-per-year ethylene steam cracker, an 800,000 tons-per-year polyethylene unit, a 400,000 tons-per-year polypropylene unit and an aromatics complex to produce 700,000 tons-per-year of paraxylene. Support facilities including a 300,000 ton crude berth and power cogeneration will also be built.
This joint venture company will be owned by Fujian Petrochemical Company Limited (50%), ExxonMobil China Petroleum and Petrochemical Company Limited (25%) and Saudi Aramco Sino Company Limited (25%). Currently, the project is expected to start up in early 2009. The Fujian Fuels Marketing Joint Venture Project will manage and operate approximately 750 service stations and a network of terminals in Fujian Province. It will be owned by Sinopec (55%), ExxonMobil (22.5%) and Saudi Aramco (22.5%).
Together, the Fujian Refining and Ethylene Joint Venture Project and the Fujian Fuels Marketing Joint Venture Project aim to meet China's rapidly growing demand for petroleum products and petrochemicals.
Fujian Petrochemical Company Limited is owned 50% by China Petroleum and Chemical Corporation (Sinopec) and 50% by the Fujian Government.
UNI Global Union Supports British Burberry Workers In China Move
February 26th, 2007Union Network International says jobs of 300 British workers are under threat as clothing maker Burberry plans to move production from the United Kingdom to China in March.
UNI says Burberry's image is founded on the idea of being British and if it closes its factory in Treorchy in March as planned then it "will have to trick customers worldwide into thinking that a product made in China is still the essence of Britishness."
Japan is one of Burberry's biggest markets and UNI General Secretary Philip Jennings said a Japanese shopworker will be asked to sell something on the promise that it is a traditional British product while knowing it is made in China.
"Burberry cannot expect our members, the sales staff in Japan, or anywhere else to lie or even to put their hearts into a selling a product under false pretences," Jennings said.
UNI's Japanese affiliates through the UNI Liaison Committee have written to the Burberry workers expressing their full support for the British workers and their union GMB, in the fight to retain their jobs. They warned Burberry that customers in Japan could feel cheated and betrayed which could do great damage to Burberry sales in Japan.
The fight to keep Burberry jobs in Wales has also reached Euro-MPs, who led by Wales MEPs Glenys Kinnock and Eluned Morgan sent a Valentine's message to company bosses to 'Stop Breaking Our Hearts'.
Speaking from Strasbourg, Labour MEP Glenys Kinnock said, "By moving production to China, Burberry is breaking the hearts of its loyal and hardworking Welsh workforce and devastating an already deprived community. The company has also failed to give guarantees that the factories in China, to where production is likely to be moved, will not employ child labour or use forced labour. At a time when consumers increasingly make choices according to company ethics, Burberry's actions are not only morally reprehensible but commercially unsound."
Eluned Morgan added, "Burberry's decision to move production to China is sheer corporate greed. The company's sales are booming and profits are healthy. There is absolutely no reason for the company to pull out of the Rhondda Valley. I and my European colleagues today urge Burberry to rediscover its sense of Corporate Social Responsibility and keep its Treorchy factory open."
Peru, China to start trade talks this year
February 25th, 2007PERU and China are expected to begin free trade talks this year with expert-level discussion to open next month, Peru's Tourism and Foreign Trade Minister Mercedes Araoz said Thursday.
"We are calling a meeting of technical teams at the end of March or beginning of April, and we hope to launch the negotiations with China this year," said Araoz.
The statement came one week after the minister said the two nations would begin a feasibility study on a bilateral free trade agreement.
Araoz also said Peru is working with the private sector on defining the terms of a trade deal with South Korea; and possible free trade agreements were under consideration with Canada and the European Free Trade Association whose members are Switzerland, Norway, Iceland and Liechtenstein.
As member of the Andean Community of Nations (CAN), Peru is also working on an association agreement with the 27-member European Union.
CAN nations will meet to discuss the EU talks in March, Araoz said.
Hudson to Acquire Major IT Recruiter in China
February 23rd, 2007Move Will Solidify Position as Asia's Market Leader in Mid- to Senior-Level Recruitment
NEW YORK, Feb. 7 /PRNewswire-FirstCall/ -- Seeking to expand its team presence and depth in mainland China markets Shanghai, Beijing and Guangzhou, Hudson (NASDAQ: HHGP) today announced that it signed a definitive agreement to acquire Tony Keith Associates Ltd. to better serve the talent needs of U.S. multi-nationals operating in Asia. The transaction is expected to close during the first quarter of the year, subject to customary closing conditions.
"This deal brings together two leading recruitment brands in the Chinese market," said Gary Lazzarotto, chief executive officer of Hudson/Asia. "The combined expertise and geographic reach of one of China's leading IT recruiters and our mid- to senior-level recruitment capabilities should be extremely attractive to U.S. multi-nationals seeking top talent to help enter the market or expand their operations in this high-growth region of the world."
"Hudson's global reach, talent network and client base will enable us to better serve our existing clients and candidates, and broaden our reach to other companies that could benefit from our specialized recruitment capabilities," said Raymond Wong, partner of Tony Keith. "What's more, and just as important, Hudson's organizational culture and values mirror ours."
Hudson, which has operated in four key Asia markets (Hong Kong, Japan, Singapore and China) for nearly a decade -- will now number more than 350 professionals and seven offices primarily serving U.S. multi-national clients throughout that continent. Recently, the global recruitment and talent management firm was recognized by China's World Management Review magazine as "Greater China's Best Headhunting Firm of the Year" for 2006.
Hudson
Hudson (NASDAQ: HHGP) is a leading provider of permanent recruitment, contract professionals and talent management services worldwide. From single placements to total outsourced solutions, Hudson helps clients achieve greater organisational performance by assessing, recruiting, developing and engaging the best and brightest people for their businesses. The company employs more than 3,600 professionals serving clients and candidates in more than 20 countries. More information is available at http://www.hudson.com/.
Special Note: Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements made in this release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve certain risks and uncertainties, including statements regarding the company's strategic direction, prospects and future results. Certain factors, including factors outside of our control, may cause actual results to differ materially from those contained in the forward-looking statements, including our ability to complete the Tony Keith acquisition, economic and other conditions in the markets in which Tony Keith operates, risks associated with operating Tony Keith as part of Hudson Highland Group, unexpected developments relating to Tony Keith's business after closing of the acquisition and other risks discussed in our Form 10-K and our other filings made with the Securities and Exchange Commission, which discussions are incorporated in this release by reference.
Demand Soars for China-Specific Finance Talent
February 23rd, 2007By Meta L. Levin 2007.1.23 Wall Street Journal
When Bernie Fung returned to Hong Kong 14 years ago, he secured a front row seat for the fastpaced economic transformation of the People’s Republic of China.
A HongKong Native who spent 20 years working and studying in Canada and the U.S., Mr. Fung is now CEO of AON Asia, a risk management consultancy, and finds himself competing for the limited pool of financial professionals who have expertise and experience of working in and with China. "It's a challenge to find the right talent," he says.
The rapid pace of economic growth is making China one of the hottest financial recruitment markets in the world. And multinational companies seeking to enter China are looking to hire candidates with skills that allow them to work in, and advise on, this complex market.
Companies arriving in china on the tide of foreign investment need accountants, auditors and financial managers who understand the market and are familiar with the variances between cities, provinces and regions. Demand is also high for English speakers, those with overseas and management experience, as well as familiarity with working in a multinational corporate environment and with new product sales, says Thomas Zhou, partner and co-founder of DaCare Executive Search, which has offices in Beijing and Shanghai.
"Native (Chinese) understand the culture, the policies and, most important, they have network connections with local government and companies," says Sherry Liu, a Beijing native, now based in Milwaukee, who has lived in the U.S. for 22 years and operates SimChain Global Logistics LLC, and outsourcing company in China. Like most, she believes that the best picks are the "haigui," Chinese who studied abroad and know the international game rules.
That, however, is one of the biggest challenges, and recruiters like Guy Day, managing director of Ambition Asia, an accounting and finance recruiting firm in Hong Kong, struggle to find enough Mandarin-speaking candidates who hold a U.S. Certified Public Accountant, British Certified Practical Accountant or similar certification from other countries.
Chinese colleges and universities are turning out an increasing number of entry-level job candidates, but there are few middle and upper-management Chinese with the necessary experience in international commerce, making the competition fierce and salaries rise. "Investment in education didn't start until about 10 years ago, so there is a greater supply of those with little or no experience and the top jobs are going to people from Hong Kong or to non-Asians," says Mr. Day.
It can be difficult, however, for non-Asians to understand the cultural complexities of working in china. "Sometimes a manager coming in from another country will have problems, because he doesn't know how to handle the locals," says Leonard Sarkissian of Milwaukee, Wis., whose company, international Harbor LLC, helps foreign firms through the process of setting up a business in China. He emphasizes the importance of learning to read cultural cues. For instance, Chinese will not say no directly to guests. They may say," it's very difficult," explains Ms. Liu. "There are many ways to show their disagreement, but none of them is no". Foreign managers who don't understand that may find the process frustrating and counterproductive.
Recognizing this, AON Corp., AON Asia's parent company, recently initiated a program to identify Chinese national studying in the U.S., hire them and put them through a training program before sending them back to China to work at either AON's insurance or brokerage offices there.
Those who take internal audit jobs in China must be ready for a lot of travel, and that can make these positions a tough sell, says Mr. Day. "Some of the junior-Level jobs have 90% travel. You are literally living out of a suitcase." Accounting and financial analysis jobs tend to have considerably less. Since many companies have manufacturing facilities in China, it also is important that those looking for jobs understand and be familiar with this environment, Mr. Day says.
Chinese job candidates are becoming more sophisticated. Whereas salary was king for many years, whey now are evaluating employers by career trajectory, training and overseas opportunities, as well as remuneration.
"Candidates have woken up to the fact that working for the right company and having the opportunity to work their way along a clearly defined career path can be worth more than money along," says Mr. Day. While money is still strong attraction, he finds the market maturing as those with financial expertise look for careers and not just jobs, and cast a critical eye on such things as location and travel opportunities. Employees also prefer big name multinational companies, seeing in them more opportunities in the long run.
An increasing number of young Chinese job candidates are looking for companies that will finance their M.B.A. studies, says Mr. Sarkissian. In fact, it has become a part of some corporate retention programs in China. An employer will offer to pay for graduate school in return for a commitment to stay with the company for certain number of years. A lot of Chinese universities also now have partnerships and joint programs with those in the U.S. and Europe. Often a job candidate will ask if the company will pay for an M.B.A. as part of the interview. "It would be the kicker for them," says Mr. Sarkissian.
Language is a big issue. Although Mr.Fung agree English is the international language of business, he believes that finance professionals who want to be successful in China do need to at least be familiar with Putonghua, the official Mandarin dialect spoken in most of the large cities.
"As a hot growth market, more U.S. companies are trying to establish their presence (in china), which does create additional demand for managers who are fully Mandarin-English fluent in both language and culture," says Susan Amy, director of the Career Management Center at the university of North Carolina's Kenan-Flagler Business School.
These is also the issue of Chinese familiarity with Western business culture. "Part of the advice I give is to raise your hand and speak up at meetings," says Corbette Doyle, AON's U.S. –based global chief diversity officer. "That is culturally unacceptable in China." It is Ms. Doyle's job not only to promote diversity in AON's offices around the world, but also to find ways to do business without stepping on cultural toes. She cites as an example a group of Chinese AON employees who founded the "China Desk" within the company. They help AON's U.S. clients who want to go to china, as well as Chinese clients who want to invest in the U.S. "They see it as an opportunity to help the organization and help themselves without raising their hands and saying 'look at me.'" She says.
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City offices now global hot property
February 15th, 2007SHANGHAI and Beijing office properties are on top of the world - and that's official.
The two cities led the way with an average eight percent return on investment ratio among the world's top 12 real estate markets last year, according to a definitive report by a respected international property adviser.
In its inaugural edition of Global Investment View, CB Richard Ellis also said investment in office buildings continued to surge, with Asia and Europe recording the most significant increases in activity.
In particular, Beijing attracted 29.8 billion yuan (US$3.8 billion) in office investment in 2006, as compared to 16.7 billion yuan in 2005.
Shanghai secured 22.6 billion yuan, an increase of 3.2 percent from a year earlier.
A substantial rise in cross-border investment activity was also recorded, as competition among investors, yield compression, and a limited pool of desirable assets have led investors to broaden their geographic search for opportunities.
According to the report, Shanghai led the Asian market with nearly 6.4 billion yuan last year, more than twice the three billion yuan recorded in 2005. American investors were responsible for 2.5 billion yuan, up from two billion yuan a year earlier.
"The increasing volume of global office investment activity over the past five years reflects the abundant institutional and private-investor capital that has been allocated to real estate and the migration of this capital across borders in pursuit of opportunity," Gregory S. Vorwaller, president of CBRE's investment properties group, said in the report.
"Diversification across both geography and property types will continue to drive investment portfolio decisions around the world."
Generally, China's mainland real estate market, which includes residential, office, hotel, retail and industrial properties, continued to be in the global investment spotlight last year.
China Mobile seals Pakistan deal
February 15th, 2007CHINA Mobile has paid US$284 million for a majority stake in Paktel Ltd, Pakistan's fifth largest mobile operator, the company said yesterday.
The deal has been sealed in Istanbul, Sina.com said today.
The Beijing-based China Mobile now has an 88.86 percent stake in Paktel, a unit of Luxembourg-based Millicom International Cellular SA, which operates networks in developing countries.
Liu Aili, vice president of China Mobile, has been elected as the board chairman of the new venture in Pakistan, said the company.
The venture will be the world's biggest mobile phone carrier's first international deal and is seen as a symbolic start for its global expansion strategy, insiders said.
Paktel, which has 1.5 million users, is valued at US$460 million, according to a statement from Millicom.
Hong Kong-listed China Mobile earned 96.8 billion yuan (US$12.1 billion) last year, up 23 percent from 2005. The company's total user base hit 318 million, a 20 percent increase from the previous year, the company said in a statement last month.
China Mobile's development strategy is to invest overseas, especially in emerging markets, company Chairman Wang Jianzhou said in September.
China Mobile wants to export the marketing tactics and technology it developed in the rural areas of China, the world's largest market by users, to emerging countries.
China: Overseas banks hunt for talent
February 13th, 2007OVERSEAS banks are competing heavily for talented workers in China's mainland this year to exploit their ability to offer a full line of retail services.
Citigroup Inc will add another 1,000 employees to its China payroll in 2007, boosting its domestic staff to 4,000, the company said.
In a single week in January, Citigroup opened three new consumer outlets, in Beijing, Tianjin and Shenzhen, as it continued to expand its network in key Chinese cities.
The world's biggest financial group now has 16 consumer operations and six corporate investment banking branches in the mainland.
"Given the importance, size and scale of China, Citigroup is taking a comprehensive approach to our expansion in China, and organic growth remains a key priority," Richard Stanley, chief executive officer of Citigroup China, said earlier.
The Bank of East Asia, whose net income rose to a record last year, will increase its mainland workforce by a quarter this year in a bid to boost profits from the market by more than 25 percent, Bloomberg News reported yesterday, citing Chairman David Li.
The Hong Kong-based bank, whose shares have doubled in the past year, will add at least 500 people in the mainland in 2007, Li said.
The Hongkong and Shanghai Banking Corp will employ another 1,000 people this year after hiring 1,000 additional workers last year.
The world's big names in financial circles are deepening their roots in the mainland's banking sector by establishing their own networks or teaming up with local counterparts as strategic investors.
They are vying for a slice of the country's US$1.9 trillion in household savings.
China's mainland allowed overseas banks to offer a full array of yuan services in December, a commitment required under its membership to the World Trade Organization.
A PricewaterhouseCoopers report in late 2005 forecast that overseas banks will employ more than 16,900 workers in the mainland by 2008, up from 6,654 at the time.
Minister tells G7 China does its part
February 12th, 2007China has been contributing to improving the world economy and will continue to do so by stimulating domestic demand, Finance Minister Jin Renqing said at a meeting of the seven industrialized nations (G7).
While the nation seeks to do its part, industrialized countries should assist developing economies to build capacity, while strengthening control on international speculative funds, he said.
Key developing economies China, India, Brazil, South Africa, Russia and Mexico were also invited to the conference, held on Friday and Saturday in the Germany city of Essen.
Jin said China has been taking measures to rectify its economy's reliance on investment and exports. The measures included reforming income distribution, improving the social safety net and accelerating development in rural areas.
Officials from the 13 countries focused on bond market development in emerging market economies during a dialogue session between developed and developing countries. They agreed that growth in the global economy and ample liquidity have created a favorable environment for bond market development.
Chinese policy makers said that the bond market should become a more important venue to raise capital to reduce Chinese enterprises "unhealthy over-dependence" on banks.
However, Jin said that the development of bond markets must undertaken gradually according to each country's economy.
China's central bank chief Zhou Xiaochan, who also attended the meeting, told reporters that he was satisfied with the evolution of the country's exchange rate system.
China has been following its plan to increase the renminbi's exchange rate flexibility, Zhou said. He added that seasonal factors may explain a recent rise in consumer prices.
Shanghai go-getters win wage rises, but trail trend in Asia
February 9th, 2007EMPLOYEES in Shanghai multinational companies won substantial pay increases last year due to a growing professional demand.
But the city still has lower labor costs than other major centers in Asia, according to a definitive report on salaries.
The report, released by Nasdaq-listed headhunter Hudson Recruitment yesterday, covered the pre-tax payroll of a total of 309 positions in nine different sectors - such as manufacturing, banking and financial services, advertising and communications and human resources - in Shanghai, Hong Kong, Singapore and Japan.
Pay increases varied widely in the different industries.
Upward trend
For instance, employees in the manufacturing and industrial sectors saw their pay rise by about 20 percent compared with that of 2005.
The increases in the advertising and communications industries reached up to 30 percent to 40 percent on average, human resources analysts said.
"Across all positions, salaries in Shanghai are presenting an upward trend, driven by the limited supply of candidates," said Kellie Grimsley, managing consultant with Hudson's Shanghai office.
"Companies try to offer high pay to attract and retain the talent they need."
In the manufacturing sector, for instance, the most eye-catching positions last year went to supply-chain management professionals.
The report said that a supply-chain manager with 10 years' experience was paid 250,000 yuan (US$31,250) to 400,000 yuan per year in the city. It is one of the best-paid mid-level positions in the sector.
Lucy Xiong, an analyst specializing in the manufacturing industry, said that the pay was bulked up as an increasing number of companies began to conduct their international procurement business in China's mainland.
That gave rise to a large demand for local professionals with a broad international network.
For the advertising and communications sector, a senior account director in the city is paid 540,000 yuan to 660,000 yuan per year, compared with the HK$600,000 (US$76,799) to HK$900,000 for the same position in Hong Kong.
A local investment bank associate can earn 350,000 yuan per year, almost the same amount of that paid in Singapore. But it's only half of the level in Hong Kong, according to the report.
However, salary gaps are getting narrower for senior-level positions in different regions, such as corporate finance managing director and marketing director, analysts said.
Headhunter role added to Alibaba portfolio
February 9th, 2007ALIBABA.COM Corp, China's largest e-commerce company, has ventured into the online head-hunting sector to serve its nearly 20 million member companies trading on its business-to-business platform.
At present the service is focused on helping e-commerce professionals, especially those familiar with trading procedures on Alibaba.com, to find positions at small- and medium-sized firms, the company said yesterday.
The small- and medium-sized companies can also post their own vacancies on Alijob, a channel on Alibaba.com dedicated to the human resources service, which was launched last Friday.
"It will be free to individual job seekers, but we will charge a certain amount of money for corporate users," said Wang Yunfeng, a spokesman for Ali College, a company division for training and certifying e-commerce professionals.
Wang said the rate hasn't been decided yet, but it should be under 10,000 yuan (US$1,250) a year for a company to post job ads and view applicants' resumes. There there will be a special price for companies that already pay for listing their information on Alibaba.com.
Ali College has been working with universities in China to promote Alibaba's e-commerce standards and certificates since the beginning of 2006. More than 100 graduates who have been certified by Alibaba had started working in its member companies by the end of last year.
Alibaba.com had more than 18 million registered member firms by the end of last year, of which three million were overseas customers, the company said in Shanghai last month, when it launched a business software division, Alisoft.
China pulls the plug on Internet pirates
February 9th, 2007CHINA has closed 205 Websites in a crackdown on video, music and software piracy, authorities said yesterday.
Investigators checked out 436 reports of intellectual property theft between the end of September and January - including 130 complaints from overseas industry associations - and ordered 361 offenders to halt their activities. They also handed out fines totaling hundreds of thousands of yuan and confiscated servers and other equipment.
"Piracy of intellectual property on the Internet has seriously harmed the interests of copyright owners, leading to a large number of disputes and disrupting order on the Internet," Yan Xiaohong, deputy director of the National Copyright Administration, told a news conference in Beijing yesterday.
Authorities imposed fines totaling 705,000 yuan (US$91,000), confiscated 71 servers and transferred six cases to prosecutors for court action, Yan said. One has already led to a conviction, he added.
The overseas complaints came from the Motion Picture Association, the International Federation of Phonographic Industry and the Business Software Alliance, Yan said.
"China treats domestic and foreign copyright holders equally, without discrimination," Yan said. "The administration will prosecute all proven cases of intellectual property infringement."
A Chinese regulation that bans uploading or downloading Internet material without the permission of the copyright holder went into effect last July.
Prominent cases included sites that offered downloads of software, textbooks, music and television shows.
In one case, all the Internet cafes in Changchun in northeast China's Jilin Province were found to be linked to a database of pirated films.
One Website in southern China's Sichuan Province was found to have provided illegal downloads of 400 movies since it was set up in 2004.
Authorities closed the site and fined its operator, Sichuan Telecom, 10,000 yuan. Sichuan Telecom is a subsidiary of the state-run China Telecom Group.
"This latest action had a limited time frame and limited results," Yan acknowledged. "It did not solve all the problems we are facing on the Internet."
China is home to about 843,000 Websites and 140 million Internet users, making it the world's second-biggest Internet market.
The Internet penetration rate in China has developed at lightning speed in recent years. The country's online population is expected to overtake the United States as the world's largest in about two years.
About 210 million of the America's 300 million people are online, according to the US government. China currently has 137 million people online.
Yan said there are 843,000 Chinese Websites at present.
Cisco eager to lay out India plans
February 8th, 2007Cisco, the world's biggest computer-networking equipment maker, clocked 40% rise in profit. The company said that the profits rose as customers upgraded their communications systems for video. CEO John Chambers lists out the company's India plans going forward. CNBC-TV18 has more.
we have always been successful in recruiting some of the best and brightest wherever we go, but it does speak about both our commitment to Asia and our admiration for what countries like China and India are doing in terms of the numbers of engineers that graduate, and the environment they are creating,?says CEO, John Chambers.
Clearly hinting towards what one can expect from Cisco here in Asia, he further says, see us expand in China, specially in Shanghai, you’ll see us expand in Bangalore in India.?/FONT>
we have moved our Chief Globalisation Officer there, which really speaks to not just supporting that region, but supports our entire global operations from that region. So there a major commitment there; I think we will recruit well there and attract the talent well,?he concludes.
Hudson to Acquire Major IT Recruiter in China
February 8th, 2007Move Will Solidify Position as Asia's Market Leader in Mid- to Senior-Level Recruitment
"This deal brings together two leading recruitment brands in the Chinese market," said Gary Lazzarotto, chief executive officer of Hudson/Asia. "The combined expertise and geographic reach of one of China's leading IT recruiters and our mid- to senior-level recruitment capabilities should be extremely attractive to U.S. multi-nationals seeking top talent to help enter the market or expand their operations in this high-growth region of the world."
"Hudson's global reach, talent network and client base will enable us to better serve our existing clients and candidates, and broaden our reach to other companies that could benefit from our specialized recruitment capabilities," said Raymond Wong, partner of Tony Keith. "What's more, and just as important, Hudson's organizational culture and values mirror ours."
Hudson, which has operated in four key Asia markets (Hong Kong, Japan, Singapore and China) for nearly a decade -- will now number more than 350 professionals and seven offices primarily serving U.S. multi-national clients throughout that continent. Recently, the global recruitment and talent management firm was recognized by China's World Management Review magazine as "Greater China's Best Headhunting Firm of the Year" for 2006.
Hudson
Hudson (Nasdaq: HHGP - News) is a leading provider of permanent recruitment, contract professionals and talent management services worldwide. From single placements to total outsourced solutions, Hudson helps clients achieve greater organisational performance by assessing, recruiting, developing and engaging the best and brightest people for their businesses. The company employs more than 3,600 professionals serving clients and candidates in more than 20 countries. More information is available at http://www.hudson.com.
Special Note: Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements made in this release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve certain risks and uncertainties, including statements regarding the company's strategic direction, prospects and future results. Certain factors, including factors outside of our control, may cause actual results to differ materially from those contained in the forward-looking statements, including our ability to complete the Tony Keith acquisition, economic and other conditions in the markets in which Tony Keith operates, risks associated with operating Tony Keith as part of Hudson Highland Group, unexpected developments relating to Tony Keith's business after closing of the acquisition and other risks discussed in our Form 10-K and our other filings made with the Securities and Exchange Commission, which discussions are incorporated in this release by reference.
Mayfield Fund Ready To Focus On China's Technology Sector
February 7th, 2007Mayfield Fund has announced the closing of a US$200 million fund, dedicated to investing in China's technology sector.
'We look forward to a deeper relationship with Mayfield Fund and know that our portfolio companies will benefit from the venture capital and sector expertise of their team,' said Richard Lim of GSR Ventures. 'Together, we are confident of building the next generation of global Chinese companies.'
The fund, GSR Ventures II, was formed in partnership with GSR Ventures, a China focused fund. The dedicated fund follows a two year affiliation between Mayfield and GSR, during which the firms say they made eleven direct investments in China.
GSR Ventures II was over-subscribed and has a mix of existing Mayfield limited partners and GSR's limited partners from its first fund. It will target investments in the semiconductor, wireless and Internet media sectors and will have representative offices in Menlo Park and Beijing.
Mayfield Fund reports to have US$2.6 billion under management and a team of twelve investing professionals. Since Mayfield's founding in 1969, the firm has invested in more than 470 high-growth companies, taken more than 100 public, and more than 150 have merged or were acquired.
IBM seeks selling part of Lenovo stake
February 6th, 2007INTERNATIONAL Business Machines Corp is seeking as much as 990 million Hong Kong dollars (US$127 million) selling part of its stake in Lenovo Group Ltd, according to a sale document e-mailed to investors.
The world's largest computer-services provider is offering 300 million shares, or a 3.5 percent stake, in Lenovo, at HK$3.20 to HK$3.30, according to a sale document sent to Bloomberg by an institutional investor. The range represents a four percent to seven percent discount to the HK$3.44 closing price of the Chinese company's Hong Kong-quoted shares yesterday.
Lenovo moved its headquarters to Raleigh, North Carolina, last year after acquiring IBM's personal-computer business for US$1.25 billion in May 2005. Under the original deal, IBM held an 18.9 percent stake in Lenovo that could only be sold in stages over three years. The two companies agreed last year to allow IBM to dispose of the shares within a shorter period.
"IBM could sell down its stake further in the future when the lock-up expires," said Mona Chung, who helps manage US$950 million at Daiwa Asset Management in Hong Kong. The impact on Lenovo shares will be limited, as "they are currently not very pricy," she said.
IBM's stake in Lenovo will be reduced to 11.5 percent after the most recent sale, according to today's term sheet.
The Chinese company said in a statement on May 26 last year that it will allow IBM to sell its shares more quickly than previously agreed. Under the new terms, IBM can sell as much as two thirds of its stake from May 25, and the balance from November 1, 2007.
Sohu says Q4 profit falls 32% on higher costs
February 6th, 2007CHINESE Web portal Sohu.com Inc said today its fourth-quarter earnings fell 32 percent to US$6.1 million, weighed down by higher costs.
Revenue rose 16 percent to US$34.4 million, but missed Wall Street's expectation for US$35.5 million, The Associated Press reported.
The company said the bulk of its sales came from online advertising. Ad revenue grew 23 percent year-over-year.
But results were hurt in part by a sharp rise in advertising costs. Brand advertising costs rose 66 percent to US$7.1 million, while search-ad costs increased by 56 percent to US$1.7 million over the previous year.
For the full fiscal year, Sohu.com said profit fell 13 percent to US$25.9 million. Revenue rose 28 percent to US$134.2 million.
Advertising revenue rose 35 percent year-over-year to US$91.8 million, helped by heightened activity related to the World Cup over the summer, Sohu.com said.
Partnership brings China to EMU
February 5th, 2007The Eastern Michigan College of Business (COB) has entered a new partnership with the Macau University of Science and Technology (MUST) in Maco, China.
"One way of building [an] environment here is to get our students to think a little more broadly," David Mielke, dean of EMU's College of Business said.
The partnership will bring the first group of MUST students, who come from 26 provinces in China, to EMU in the fall of this year. Students who complete the program will receive a bachelor's of business administration degree from EMU.
Amelia Chan, assistant dean of undergraduate programs at the COB, said students who follow the 2 2 articulation agreement would complete the first two years of coursework at MUST, then transfer to EMU to complete the last two years of study. Macau students must complete all of EMU's general education and COB requirements to be granted the Bachelor of Business Administration degree from EMU.
"I will be advising students who have applied to EMU for fall 2007, when I travel to Macau in March," Chan said. "While there, I will also be recruiting and promoting our business programs to other interested freshmen and sophomores."
Edward Keck, a business major, applauded EMU's effort to bring a different culture to its campus.
"I think any time students get a chance to study with another culture, it is a positive thing," Keck said. "This agreement will broaden my thinking about business ventures."
On a recent trip to Macau, Mielke received more interest from students than expected when he entered an auditorium of 250 students eager to join the program.
"I expected to meet 20 to 30 students...The students' biggest concern was how many we would accept into this program," Mielke said. "I don't hear our students thinking about studying abroad... I hope the students from China will help them broaden their expectations," Mielke said.
Chan said China is a major participant and competitor in the global economy.
"Since this type of exchange usually leads to EMU/MUST faculty exchanges, this will create new opportunities for COB faculty to have direct experience, which could be shared through consulting Michigan business on economic development and global marketing," Chan said.
The new partnership with China is the second international connection for the COB. The COB also has a duel undergraduate degree program with Keimyung University in Daegu, Korea.
Wonderful wisdom of Wong winning through
February 5th, 2007Eva Wong, chairperson and president of Top Human Technology Limited, is to meet me at her office on the 58th floor of Plaza 66. The office exudes a confident, plush Oriental modernism and, with the view clouded, I absorb the rarified atmosphere as I wait.
The motto of Top Human is this: "Re-engineering the talent of people." Lofty or what! Wong's slight delay is due to her having just flown in from Canada, yet there's not a trace of long haul about her. As fresh as a daisy, Wong has the air of someone who has just enjoyed a good joke.
"I've been living out of my suitcase for years now. I'm always traveling, I love it," she laughs. One wonders how big her suitcase is.
Wong's new book "The Power of Ren - China's Coaching Phenomenon," co-written with Lawrence Leung, outlines her unique philosophy for business management and coaching. As the name suggest, her philosophy puts people at its core.
The Hong Kong native's approach involves elements of Buddhism, Confucianism and Taoism, and more than 100,000 top Chinese business people have benefited from the wisdom of Wong over the last 12 years.
My question as to how much she reckons her advice has added to the Chinese economy in total is met by knitted brows, followed by another heartfelt laugh. She turns to her able and attentive assistants, saying: "We should find out that sort of thing," before exploding into laughter again. The answer is a whole lot, by the way.
Mystical might be over-egging it a little but there's something about Wong that's hard to fathom. Captains of Chinese industry, a demanding lot to be sure, pay handsomely for Wong and her colleagues to tell them how to improve their businesses. "Most of our business comes through word of mouth," says Wong.
"I retired in 1990 and from then on I've been making my vision come true - of Top Human and of teaching people how to live their dreams and live their lives," says Wong, President of China Coach Association.
Having formulated her vision, strategy and philosophy, she started out coaching just one student in Hong Kong in 1995.
She's still the chief trainer, although now Top Human has offices in Vancouver, San Francisco, Singapore and in 10 major cities in China employing 500 staff. It's one of the biggest coaching companies in the world. Preparations are well underway for public listing next year. Soon Top Human will occupy all of the 58th floor of Plaza 66.
"The coaching concept came from the States and from the sports field, so that management executives become the coaches who treat the staff like their athletes," says Wong.
Top Human coaching, the power of Ren, is based on a nine-point plan in this order: Passion, commitment, responsibility, appreciation, giving, trust, win-win, enrollment and possibilities.
This point system stems from Confucianism, with two key points at its center: "Only when a man lives in accordance with his knowledge of both nature and people and becomes a well-learned person, can he manage his country and the world," from "The Doctrine of the Mean." From "The Great Learning" comes: "From the Son of Heaven down to the people, all must consider the cultivation of the person the root of everything else."
"We have two main roles," says Wong. "Firstly we coach senior business people, helping them improve their management style and their business. The other is to train people to become coaches."
"In China, business is inextricably linked with personal relationships which is quite different from the West," says Wong. "Entertaining business contacts out of the work environment is much less common in the West. Colleagues' trust must be earned in China - then they will go the extra mile."
The coaching takes the form of a two-hour one-on-one session where the client's needs are determined. There then follows a six-month course with regular evaluations and team teaching, where those being trained can compare notes.
Courses cost 30,000 yuan (US$3,860). Courses mostly take place in Mandarin just now but moves are afoot to extend Top Human offerings to Westerners. See www.tophuman.com for details.
The book is a must-read for those doing business in China, particularly those who have found their Western- style approaches frustratingly ineffective. It's a well-presented book that's accessible, readable and packed with interesting case studies.
It can be bought at the Shanghai Foreign Language Book Store (tel: 6322 3200) priced 180 yuan (US$23).
CEO oustings on track for record
February 2nd, 2007NEW YORK (CNN) -- With an average of about seven chief executive officers departing per business day, 2006 is poised to be a record-breaking year for ousted CEOs, according to data compiled by CNN and a study conducted by Challenger, Gray and Christmas.
If the trend continues at its current rate, more than 1,570 CEOs will lose their titles by year's end, up more than 200 from last year's record number of 1,322.
In just the first 11 days of October, the corporate world has seen a turnover of 36 CEOs, including the resignations announced Wednesday at Internet media company CNET (Charts), software maker McAfee (Charts), and Sovereign Bancorp Inc. (Charts) During the first 12 days of September, the boards of Bristol-Myers Squibb Co. (Charts), Ford Motor Co. (Charts) and Viacom Inc. (Charts) elected new CEOs to lead the corporations.
Former CNET CEO Shelby Bonnie resigned while former McAfee CEO George Samenuk retired, but both left their posts in relation to stock options back-dating probes, a growing trend in recent months. Earlier this week, Monster Worldwide Inc.'s (Charts) CEO Andrew McKelvey, a 39-year veteran with the company, resigned from his leading post, pinning partial blame for his move on an investigation into the company's stock options practices.
Since Oct. 1, five company executives - three CEOs, one chief financial officer and one president - have either resigned, retired or were fired from their posts after reports of option grants irregularities. Preliminary data compiled by Challenger, Gray and Christmas show nine companies entrenched in back-dating options scandals have lost their CEOs since January 2005.
According to the study, 32 CEOs have been fired from their jobs since the beginning of 2006, a third of them in September alone.
"It is rare for a CEO to be officially fired," said John Challenger, chief executive officer of Challenger, Gray and Christmas. "Boards may apply pressure or force a chief executive to leave, but they often allow the executive to announce his resignation, thus sparing his or her dignity. It takes a major infraction for a CEO to be publicly fired."
After more than 1,100 CEOs departed companies in 2000, the year the tech bubble burst and dot-com companies began imploding, the number of CEO turnovers began to gradually decrease year-by-year, dropping to 663 in 2004, but then jumping back up in 2005 setting the record to beat, according to CGL spokesman James Pedderson.