More China Stuff

Reprinted from our sister blog at www.crisispost.com.

As I am leaving China to return home to celebrate July 4th with my family, I thought I would share some interesting tidbits from just today’s China Daily, which gives good insight into what issues are important to Chinese business and society.

1. The government has worked to encourage “ODI” (overseas direct investment) by Chinese folks. Often the level of ODI is compared to “FDI” (foreign direct investment), which is also encouraged. They expect ODI to reach $180 billion this year while FDI will probably hit around $100 billion. Watch for more Chinese takeovers of companies throughout the world as the recession continues to lower values while China has huge foreign exchange reserves.

2. GM is struggling through bankruptcy but their sales in China increased almost 40% in the first half of this year, to almost 1 million cars. The car business here is booming big time.

3. They remain, understandably, extremely concerned about swine flu, not only because of the health issues, but as it may affect tourism. A school had 7 students down with the virus, so all the other 700 students plus faculty and parents are to remain quarantined in their homes for the next 7 days.

4. A very impressive report shows how in the last 20 years government efforts to subsidize mothers giving birth in hospitals rather than at home with midwives has very dramatically reduced the mortality rates both for mothers and newborns.

5. All the latest Michael Jackson news is covered in detail.

6. China has increased its goal of bringing nuclear power to more places by 2020. They feel alternative energy development is key. While nuclear power remains controversial in the US, here they are moving ahead full steam (no pun intended).

7. A Hong Kong listed toll road operator got the OK to complete an IPO in Shanghai. IPOs had been been “quietly” banned since last year. Good sign for markets throughout the world.  Thirty other companies have also gotten the go-ahead to go public here.

8. Local stock markets surged yesterday after reports that the recovery seems to have begun here and that positive earnings reports for the rest of the year are expected.

9. Madoff news is closely followed here.

10. British Petroleum and China National Petroleum Corp. have won a bid to develop oil fields in Iraq. This is a major contract for both.

Thanks so much to my friends in Guangzhou for a most memorable visit. I know some of you visit here and I warmly welcome you. I will return for sure! And happy 4th of July to all my fellow Americans..

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