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“PUTTING
BRAND ON CHINA SUCCESS”
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Excerpted
from USA TODAY October 17, 2005
Yum’s
David Novak sees a nation coming to eat at the Colonel’s!
China is
an opportunity that can’t be ignored. But companies
are also keenly aware of the risks. Yum Brands, the 1997 Pepsico
spinoff that owns KFC, Pizza Hut, Taco Bell, A&W and Long John Silver’s, does not let fear stand
in the way, and last week opened its 1,500th KFC in China, one of more than 375 in 2005. CEO David
Novak, 52, spoke with USA TODAY management reporter Del Jones about doing business
in China.
Q.
Intellectual property protection in China is a problem. Do
you fear the Colonel’s secret recipe being stolen?
A.
It’s locked in a vault, and only a few people know what
it is. We haven’t had any in-tellectual property issues to speak of. Our business is simple,
but difficult to execute. That’s true in New York, and
it’s true in China.
Q. What are
common misconceptions people have about doing business in
China?
A.
They think it’s difficult to make money. People are
shocked when I tell them that we made$20 million (operating profit) in China in 1997 and $205
million in 2004.
Q.
Is it easy to do business in China?
A . It is if
you have visible brands like Pizza Hut and KFC. When I travel
to Europe, it sometimes takes an hour to get out of the airport. When I
go to China, government officials greet me. They embrace the investment we’re
making. Cities take it as a sign progress when they get their first KFC. It was a smart decision
early on to put our China headquarters in Shanghai rather than Hong Kong. That
sent a strong signal that we were committed to the mainland.
Q What about
red tape?
A. We have Chinese
people running our business. They know how to work the system.
If there was too much red tape, I doubt if we would be able to
open a restaurant a day.
Q. Does knowing
how to work the system mean paying bribes?
A. We operate
with the highest ethical standards. We wouldn’t tolerate
corruption any-where.
Q. China’s
huge market is no secret Neither are the grave risks. What
would happen to Yum’s operations if China invaded Taiwan?
A. Most CEO’s
believe China is not going back. China is going forward.
Q. What is Yum’s
strategy if the wheels fall off due to geopolitics?
A.
We made a strategic bet on China in 1987 that our countries
would become more cooperative over time, not less. That has clearly been the
case. Our economies are intertwined. It’s hard to see a situation where we will
become totally adversarial.
Q. A head-in-the-sand
strategy?
A.
We certainly don’t have our head in the sand. We understand
opportunity.
Q.
Does your board of directors ever ask for your plans in case
things go sour?
A.
Look, if something significant happened, we would have to
deal. We’re aware that issues exist. We have a great leadership team in China. That’s
one of our strategic advantages. We have a big business in the U.S., and something
could happen to hurt us here, as well. Our international portfolio almost insulates
us. Whatever happens
globally, it rarely affects our business. It’s no secret
that there’s been an adversarial mindset between the U.S. and France. Our volumes in France
are achieving record levels. Love for brands rises above love of politics. Something
(bad) can happen in any country. If we have a bad year in China, I’ll be
glad we’re there, because there will more good years than bad.
Q. Missed opportunity
is the greatest risk?
A. The consequences
would be ignoring one of the highest growth opportunities
in the history of business. You do the math. With the number of people
and the rapid growth in the economy, there is an opportunity to really make
a lot of money.
Q. How do you
know how fast to expand? Why not open two restaurants a day?
A. We grow as
fast as we can train good people. We’re fortunate to
have a highly educated workforce there. The vast majority of our managers have
college educations. We do “double stacking.” We put a team of untrained
employees in with an established team. When the new team has been trained, we move them
all to a new KFC or Pizza Hut. We have 85,000 employees in China in more than
280 cities.
Q. China is
slowly letting its yuan appreciate vs. the U.S. dollar. How
will that affect Yum?
A. It’s
nothing but good news.
Q. Do you have
U.S. expatriates overseeing operations in China?
A. From time
to time, we put an ex-pat in to help build capability in a
particular area, but the Chinese team is self-sufficient, led by Sam Su. He’s
been there since 1987 and will go into the Yum Hall of Fame.
Last year, I made the decision that China was so self sufficient that Su should report directly to mew.
Any company that wants to do business in another country is always better off with
people from that country.
Q. Are Chinese
employees managed differently?
A. No. There
are a lot of stereotypes, such as Chinese leaders are to be
elevated. We don’t look down or up, we try to look straight ahead
at people, and that works effectively in China. Human beings have the same basic needs all
around the world.
Q. Could I tell
the difference between your chicken or pizza in Shanghai or
Louis-ville?
A. Our core
products like original recipe and pan pizza are the same around
the world. We provide some variations to meet local needs. In China we
have soup and a line of vegetables. Fish toppings on pizza
do much better. About 20% is catered to the local market.
Q. Do you advise
companies in other industries to make few adjustments for
local tastes?
A. If a company
has to retool its basic offering, they don’t have a
snowball’s chance to be successful.
Q. Do you sell
your food for less in China?
A. The average
guest ticket for KFC in China is $3.00, vs. $7.00 in the U.S.
The average ticket at a Pizza Hut in China is $13.00, vs. $15.00
to $16.00 in the U.S. We market Pizza Hut in China as five star service at a three-star
price.
Q. What’s
your average wage?
A. We really
don’t give that kind of stuff out.
Q. Your profit
plunged 30% when a red dye in the seasoning used in China
was linked to cancer. Avian flu had the Chinese afraid to eat chicken.
Do you think such pitfalls are more likely in China than in the U.S. and Western
Europe?
A. The dye was
an unfortunate supplier incident. McDonalds had the same issue
in the U.K. A food safety issue can happen in any country. The avian
flu is not transmitted human to human, but we have a perceptual
issue given our association with chicken. We have to use education to insulate ourselves.
Q. Some people
say capitalism can’t work without democracy. Doesn’t
China prove otherwise?
A.
There are a lot of advantages that free enterprise and freedom
bring to play. I’m hopeful that China will find the magic. The world has opened
up. China has opened up.
David
Novak’s tips:
1. Don’t
be scared off by U.S. China relations. They rarely interfere
with Business.
2. Lost opportunity should be the biggest fear.
3. Run China operations with Chinese executives.
4. Chinese employees, like those elsewhere, respond to recognition
and fair treatment.
5. Core products must be appealing to the Chinese market.
Retooling for China spells disaster.
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CHINA,
INDIA BEHIND GOLD JUMP!
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From
the Wall Street Journal by Scott Patterson
GOLD GETS A LIFT FROM HALF A WORLD AWAY!
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While
worries about inflation and the economy are clobbering stocks,
gold recently hit an 18 year high of about $480.00 a troy ounce
before slipping back to $469.00 Friday.
But don’t get hypnotized by gold’s allure. The main
reason for small investors to own gold is to diversify, because
it zigs when stocks zag. It should be at most 5% of a portfolio,
best held in gold stocks or funds, not costly-to-store bullion
or coins.
Over time, gold’s price should roughly match the rise
in consumer prices, though it can sink without warning or surge
when seen as inflation insurance or a parachute in a shaky stock
market.
Still, some think gold’s price may have more than the
usual staying power after a four-year victory lap that has taken
it up about 55% since early 2001. The No. 1 reason is that gold,
much like energy, is getting a boost from rising demand on the
far side of the globe.
According to the World Gold Council, total gold demand in the
first half of 2005 rose 21% in tonnage terms from a year ago.
Demand from India and China, home to an increasingly wealthy
and status-conscious middle class, was the driving force behind
that leap. Demand for gold-based jewelry jumped 42% in India
and 12% in China in the first half. Other emerging economies
have buoyed demand for gold jewelry as well; it rose 18% in
Saudi Arabia, 6% in Turkey and 9% in the United Arab Emirates.
Sales aren’t booming everywhere. Jewelry sales in Europe
have been poor, with declines of 14% in the United Kingdom and
7% in Italy. Sales are up 4% in the U.S. in the first half.
Surging demand comes as the overall supply from gold production
is in decline, according to Gold Fields Mineral Services, a
London precious-metals consultant. After peaking at 2.62 billion
tons of global mine production in 2001, output fell to 2.46
billion tons in 2004. That’s because mining activity stagnated
due to gold’s low price in the 1990, says Peter Grandich,
managing member of Grandich Publications, Perrineville, N.J.,
a metals-mimind trade group.
While the price of gold stagnated for much of 2005, since early
September it has risen about 5%. Bill Frejlich, a connodities
broker at Chicago trading firm Fox Investments, thinks gold
could decline to around $400.00 a troy ounce within 6 months.
He expects the stock market to do fairly well, and for the dollar
to advance against the euro. Since gold often trades inversely
to the dollar, a stronger dollar is bad news for gold. Mr. Frejlich
says if crude oil jumps above $70.00 a barrel, he might consider
buying gold, since that would probably mean the economy, and
stocks, could falter.
Gold can be fickle, of course. Buyers of gold 10 months ago,
when it was around $455.00, watched their investment shrink
nearly 9% through June as the dollar unexpectedly rallied against
the euro and the yen. And investors who bought gold in the 1980s,
when it rose to $834.00 an ounce, still have a long wait before
they break even.
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CHINA
SAYS IT HAS BETTER BIRD VACCINE! |
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“The
new weapon for fighting the avian flu strain will cost less
and be safer, according to government media.” - From Reuters
Sunday October 16, 2005
BEIJING—China has developed a new and better
vaccine for use on birds against te avian influenza strain that scientists fear could cause a
global pandemic among humans, state media said Saturday.
The vaccine has the advantage of fighting another common bird
disease, as well as the H5N1 influenza strain to Europe, state
television reported. It identified this as avulavirus APMV-1,
also known as Newcastle disease.
“What’s more, the new vaccine is safer, more convenient
to use and cannot kill newborn chicks,” it said, listing
attributes that made it more attractive to farmers than a vaccine
they were already using. For example, the new vaccine could
be applied by spraying. “In addition, the cost of the
new vaccine in mass production is only one-fifth of that of
the previous vaccine.”
The country was preparing to put the vaccine into mass production,
Xinhua new agency reported. The H5N1 bird flu strain emerged
in Hong Kong in 1997, resurfaced in 2003 in Souty Kores and
has since spread to other Asian countries and Europe. It was
confirmed on Saturday in Romania.
The disease has infected 117 people and killed 60, according
to the World Health Organization, which says it is only a matter
of time before disease develops the ability to pass easily from
human to human, causing a catastrophic pandemic.
The disease was carried by migrating birds and may now be spreading
through poultry and pigeon flocks. Of far greater concern is
the prospect of the fast- mutating virus transforming into a
strain contagious to humans, as some epidemiologists predict.
“The virus has the potential to change and mutate, and
thus spark a terrible pandemic of the kind that has occurred
every once and a while over past centuries,” Klaus Stoehr,
head of the World Health Organization’s influenza program,
told German NDR radio. “There is no question that if such
a pandemic occurs, we’ll be looking at hundreds of thousands
or even millions of deaths worldwide.”
No human deaths of the disease have emerged in Europe, and virologists
say Asia remains the continent most likely to spawn an epidemic.
Ruropeans, they said, have little to fear for the moment. Yet
the officials also warned that H521 shows extraordinary capacity
to mutate and could rapidly turn into a virus able to spread
from human to human. Stoehr said countries need to wake up to
the reality of a fast moving bird disease and prepare for a
pandemic. “It’s about getting ready for an outbreak
to occur, even in Europe,” he said.
Pandemic refers to an outbreak do disease spread over huge areas.In
Vietnam on Saturday, a top American government scientist said
a worldwide Outbreak of deadly influenza is certain—if
not from H5N1, then from a different virus. “It’s
a matter of ‘when,’ not ‘if,’ said Anthony
Fauci, director of the National Institute of Allergy and Infection
Diseases.
H5N1 is the most virulent of avian flu strains because it is
capable of acquiring genes from other viruses, so it may acquire
the “code” of another virus that is infectious to
humans. If that occurs, it would spread among population centers
at jet speed, carried by travelers to every continent in hours
or days.
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CHINA
TRADE MISSION |
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USAPRC’s
representative Twain Wang will follow the delegation from the
city of Ontario, California visiting Guangzhou, China from October
16 through the 19th 2005.
Anyone in business in the USA and interested in becoming a member
of United States
Pacific Rim Chamber please contact Twain Wang at Tian Lun International
Hotel in
Guangzhou. In addition to the Canton Fair and Guangzhou City
Government, the Ontario City Delegation will visit Dongguang,
Shenzhen and Hong Kong.
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Tian
Lun International Hotel
172 Linhe Road Central
Guangzhou
Phone: 86-20-8393-6388
Fax: 86-20-3882-4162
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FORTUNE
COOKIES’ PICK |
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“FORTUNE ATMOSPHERE AT THE CANTON FAIR IN GUANGZHOU!”
The following article is by Vice President of USAPRC Twain
Wang prior to his trip to
Guangzhou.
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According
to data on the International China Import/Export Commodity
Fairs’ official website (CECF)
www.cantonfair.org.cn,
The Guangzhou Fair is a sensational success. The total amount
of import and export of the Peoples Republic of China in 2004
almost broke through to USD $1,000 Billion dollars. And extraordinarily
in one of the sessions of 2004 one transaction alone achieved
a record USD 29 Billion Dollars. It’s an open secret
that for some 20 years that the ‘rainbow’ has
ended at the Canton Fair and the fortune is definitely hidden
in Guangzhou , ‘the rainbows center’, where the
tradeshow is located.
The number of visitors attending the Guangzhou Fair has almost
doubled since 2001. In the spring session of 2005 there were
195,464 visitors from 210 countries.
The top five countries and regions in terms of participating
buyers are Hong Kong, USA, Taiwan, Japan and Thailand. Over
10,000 businessmen from the United States didn’t need
a hint from the ‘Fortune Cookie’ to travel so
far to buy products that would create major profits for themselves.
So, what items do they buy primarily for resale? Statistics
collected by CECF point to Machinery and Electronics constituting
the highest percentage. Trade volume on those 2 items were
approximately USD $10.82 Billion Dollars. Among these products,
those that have a large trade volume are, Home Appliances,
Consumer Electronic, Metal, and Electrical products plus Transportation
Vehicles.
Also importantly, Footwear and daily-use Ceramics sales have
increased rapidly. Trade volume of Footwear reached USD $810
Million Dollars; the trade volume of daily-use Ceramics is
up to USD $700 Million Dollars. Other products that have a
comparatively large growth rate include: Decoration products
which reached USD $530 million dollars, Glassware climbing
to USD $440 Million, Metal and Enamel ware reaching USD $
330 Million dollars. The trade volume of clothing reached
USD $2.86 Billion dollars and Textiles was up to USD $2.19
Billion dollars.
If you don’t see your product category in the above
mentioned items, guess what?
There are more than150,000 other products shown at 28,010
booths on 5,600,000 square feet of exhibition space involving
12,279 exhibitors.
Before you make any kind of excuse about going to this humongous,
exciting event, try the Canton Fair Online, it’s just one fingertip
away for you to execute e-business on
www.ebusiness.cantonfair.com.cn.
Or you can get assistance from United States Pacific Rim Chamber (USAPRC) CGICF’s agent in California
at www.usaprc.org.
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LAWMAKERS
PUSH CHINA’S ENVELOPE! |
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Pro-democracy
Hong Kong officials speak out during historic mainland tour.
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GUANGZHOU,
CHINA
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Lawmakers
in China rarely yell “Long live democracy!” in a crowded hotel lobbies. They don’t wear T-shirts
condemning the bloody crackdown on the Tia-Nanmen Square protesters
in 1989. And they certainly don’t challenge Communist
leaders to scrap one-party rule and hold elections. But that’s
what happened Sunday when members of Hong Kong’s legislature,
including some long banned from the mainland, made history
by a two-day tour of China’s Guangdong province. The
trip created some highly unusual scenes in a country where
lawmakers usually obey the Communist Party and avoid criticizing
the leadership while surrounded by foreign reporters. Even
more unusual is that the ubiquitous security officials let
them get away with it.
For years, Beijing warned Hong Kong’s feisty lawmakers
that they needed to be more patriotic now that it was part of China. Hong Kong was
a British colony for more than 150 years before returning
to Communist rule in 1997 under a “one country, two
systems,” formula that promised wide autonomy.
But the city’s leader is now chosen by a pro-Beijing
committee, and only half the legislators are directly elected.
China has snubbed pro-democracy figures and barred die-hards
from visiting the mainland.
But a shift began about a month ago when Hong Kong’s
new leader, Donald Tsang, made a surprise announcement that
he had invited the entire 60-member legislature to join him
on a tour of Guangdong, one of China’s two biggest manufacturing
bases, powered by investment from Hong Kong companies.
Margaret Ng, a pro-democracy lawmaker said, “I think
the whole event itself sent a very strong message, and the
message is that Beijing has fundamentally its position.”
Ms. Ng added, “from a situation of isolation to a situation
of trying to work with each other.”
China invited all the lawmakers, even Leung Kwok-hung, famous
for shouting democracy slogans and being arrested at street
protests. He showed up on the tour bus Sunday wearing a T-shirt
with a lone man stopping a line of Chinese tanks during the
suppression of the Tiananmen Square protests- a subject that
still cannot be debated openly on the mainland. The T-shirt’s
slogan read, “The people will never forget.”
But when Leung tried to wear a Tiananmen Square shirt into
a meeting at a luxury hotel with Zhang Dejang, Guangdong’s
top Communist leader, security guards stopped him. Leung got
in after he put on another shirt. He told the Communist leader,
“It’s wrong that the Hong Kong Chinese people
don’t deserve democracy.”
After briefing reporters in the crowed lobby, Leung shouted,
“Long live democracy!” as passers-by stared in
surprise.
Emily Lau, a pro-democracy lawmaker, raised an issue that’s
usually discussed in private in China. She said, “I’m not saying we
should overthrow the Communist Party, but we are against one-party rule.” She added,
“If the Communist Party is so Good, surely it will be elected in an election.”
Article
by William Foreman (AP) Los Angeles Times 9/26/05
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CHINA
IMPOSES WEB-CONTENT LAWS! |
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BEIJING—China
said Sunday that it is imposing new regulations to control content
on its news Web sites and will allow the posting of only “healthy
and civilized news.”
The move is part of China’s ongoing efforts to police
the country’s 100 million Internet users. The new rules
take effect immediately and will “standardize the management
of news and information” in China, the official Xinhua
News Agency reported.
While the communist government encourages Internet use for education
and business, it also blocks material it deems subversive or
pornographic. Online dissidents who post items critical of the
government, or those expressing opinions in chat rooms/ are
regularly arrested and charged under vaguely worded state security
laws.
Los
Angeles Times…9/27/05
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EXECUTIVE
BRIEFING WITH CHINESE ENTREPRENEURS AND INVESTORS
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Will
hold a welcome luncheon on 9/23 Friday from 11:00 to 13:00 at
Jonathan Club in Downtown LA for the Honorable Mengfu Huang,
Chairman of China's National Federation of Industry and Commerce
and a delegation of Chinese business tycoons. One of them just
purchased IBM's PC Department for 1.3 billion. Please
CLICK
HERE to get/ print the Reservation Form
joining us at the event.
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Sherman
Liu, Director
US-China Business Matchmaking Council
9550 Flair Drive Suite 523
El Monte, CA 91731
Tel: 626-579-6980 Fax: 626-579-6981
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USAPRC
HONORARY CHAIRMAN BOB HUFF CORRECTS UGLY INCIDENT IN SACRAMENTO
(This article is a condensed version of
an editorial by Steven Greenhut in the Orange County Register.)
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But
the ugliness goes deeper than the messiness of sausage making:
Those who Control the legislative process (i.e., Sacramento Democrats)
seem to have no concept of the nation’s founding principles,
such as limited government, personal responsibility, the rule
of law, free enterprise. Even when they quote the founding fathers,
they know only the words and not the meanings.
Making legislative sausage-the arm twisting, compromising, backroom-deal
– making, back-stabbing- is not for the faint of heart.
A particularly nasty incident has been reported in the Sacramento
Bee. Earlier this month the state Senate’s dictatorial
Appropriations Committee chairwoman, Democrat Carole Migden
of San Francisco marched over to the Assembly floor to add new
regulatory requirements for cosmetic manufacturers.
With the bill one vote shy of passage, she went to Republican
Guy Huston’s desk and pushed the “yes” button
so that a vote would be electronically recorded.
The normally mild mannered Assemblyman Bob Huff, the Diamond
Bar Republican who sits next to Houston, saw this and had to
push Migden’s arm away, then undo the vote. Huff told
me that Migden’s excuse – that she thought the desk
was a Democrat’s – is bogus. She has a reputation
for doing this, he said, and even if it had been a Democrat’s
desk, a senator has no right to cast a vote in the Assembly
chambers. Assembly Todd Spitzer said Migden might have committed
a felony, although he argued for a reprimand rather than prosecution.
Even that’s unlikely, since Migden is Chairwoman of the
committee that dispenses the cash. Good work Assemblyman Bob
Huff.
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CHINA
SLAMS NEW PROPOSALS ON TAIWAN |
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China
criticized Chad and a few other countries for proposing consideration
of the so-called “Taiwan participation in the United Nations.”
China’s Permanent representative to the United Nations
Wang Guangya has urged Chad and a few other countries to change
their positions on the Taiwan question. Several countries including
Chad have requested consideration of the so-called “Taiwan
participation in the United Nations” and a proactive role
of the United States in maintaining peace in the Taiwan Straits”
in the coming session of the UN General Assembly.
Representative
Wang Guangya said the Chinese Government and its people strongly
condemn and firmly oppose such a gross encroachment on China’s
internal affairs. He noted that in 1971, the UN General Assembly
at its twenty-sixth session adopted by an overwhelming majority,
the historic resolution 2758, which stipulated unequivocally
that the representatives of the Government of the Peoples Republic
of China are the only legitimate representatives of China to
the United Nations. Wang said Taiwan is a region of China and
China’s representation in the United Nations includes
Taiwan.
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WAL-MART
TO DOUBLE CHINA OUTLETS BY 2006 |
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Wal-Mart
Stores Inc., the world’s biggest retailer, planned to
more than double its stores in China and run 90 stores by the
end of 2006, a senior executive said Monday as an effort to
expand market share. Wal-Mart, like rivals Carrefour S.A. and
Metro A.G., has been building stores in Asian retail market
after Japan at a rapid clip, taking advantage of growing incomes
and the liberalizing retail industry. Lawrence Lee, regional
operations director for eastern China, also said the U.S. based
Company will post double-digit revenue growth in the country
this year, though he declined to quote figures.
According to China’s Ministry of Commerce, Wal-Mart posted
a 31 percent leap in sales in the country to 7.6 billion Yuan
(US$940 million) in 2004.“We expect double-digit growth
this year, Lee added, but we have no plans to go solo so far,
because I believe our local partner knows the market better.
Wal-Mart will operate 55 stores in China by the end of 2005,
versus 43 at the end of 2004. But that’s still a fraction
of the roughly 5,000 the retailer has worldwide.
Carrefour S.A. lags Wal-Mart globally but leads in China. The
French retailer has said It will open 15 Hypermarkets a year.
Hypermarkets stocking everything from personal computers to
bicycles and pet foods are a relatively novel concept to much
of the worlds Seventh-largest economy, but slick outlets are
fast springing up across the country as China’s economy
booms.
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WAL-MART
STARTS ASIAN LANGUAGE ADVERTISING IN THE USA! |
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Wal-Mart
Stores has kicked off a new advertising campaign, specifically
tailored towards the Asian/Pacific American community in the
United States. The ads, developed by the retailer with the
Los Angeles based IW Group, include television, radio, and
print advertisements that will be featured in Cantonese, Mandarin,
Vietnamese and English in key U.S. markets: Los Angeles, Houston,
San Diego, San Francisco and San Jose. Like previous ad campaigns,
this one will feature ‘real’ people- this time
customers as opposed to the store staff that are usually involved.
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UNITED
STATES SEEKS CHINA AS A GLOBAL PARTNER!
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Assistant
Secretary of State, Christopher Hill, for East Asian and Pacific
Affairs said at a hearing before the Subcommittee on East Asian
and Pacific Affairs of The Senate Relations Committee that,
“the U.S. is seeking China as a global partner. He said,
“Will China accept the challenge of the international
community to help enhance the peace, prosperity, and stability
of the region and in doing so, positively change the International
system as we know it today”.
Entry into the World Trade Organization was a major step in
China’s international integration, Hill said. But serious problems remain in several
areas, he added. The protection and enforcement of intellectual property rights (IPR)
remains “a vexing problem” and “a top priority
in our trade relationship with China, “ Hill said. Hill
also commented that China “uses its growing trade and
investment ties to achieve its political ends, which include
continuing to isolate Taiwan.” But, he added, “China’s
growing security and military relationships with traditional
U.S. Asian allies should not suggest that somehow U.S. influence
or capabilities in the region have been diminished.”
The longstanding position of the United States—based on
its “one-China” policy, commitments made under the
three joint communiqués signed between 1972 and 1982
and the Taiwan Relations Act of 1979—has been that “cross-Strait
differences must be resolved peacefully, through dialogue, in
a manner that meets the aspirations of people on both sides
of the Strait,” Hill said. It is crucial that China reach
out to elected representatives on Taiwan, he added. “We
must guard against actions that threaten to disrupt our economic
and security interests,” Hill told the subcommittee. “I
assure you that a strong, secure United States and a strong,
secure, prosperous and stable Asia-Pacific remain our goal,
and a continuing reality.”
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