China :: Business :: Deals

Our post last week about a European soccer star signing with Chinese domestic league team Shanghai Shenhua included questions about why China, with a passion for the game, cannot produce world class players or teams, domestically or internationally. Today I found the Dec. 17 article The Economist posted. Now I feel like I have some answers. Why China fails at football Little red card The telling reasons why, at least in football, China is unlikely to rule the world in the near future Dec 17th 2011 | from the print edition The Buddha tells the people he can fulfil only one of their wishes. Someone asks: Could you lower the price of property in China so that people can afford it? Seeing the Buddha frown in silence, the person makes another wish: Could you make the Chinese football team qualify for a World Cup? After a long sigh, the Buddha says: Lets talk about property prices. THE pass back to the goalkeeper seemed routine for Qingdao Hailifeng FC in its match against Sichuan FC in...

Techweb, 12/22/11 Account information for more than 6 mln registered users of online community Chinese Software Developer Network (CSDN,net) has reportedly been leaked online. Industry sources today added that account information has also been leaked for 8 mln and 20 mln users, respectively, of the 7k7k and 178.com gaming websites. CSDN has confirmed the news, saying the leaked information is from a 2009 backup of the site's database, although the exact cause for the leak has yet to be determined. Online sources say that the leaks were deliberate and users of Chinese SNS sites Renren and Kaixin001, the Tianya online community and matchmaking sites Jiayuan.com and Baihe.com will be the next targets.

Marbridge Consulting, 12/20/11 China's three main telecom operators have announced their subscriber totals for November 2011. November saw the net addition of 12.13 mln new mobile subscribers. China Mobile (NYSE: CHL; 0941.HK) added 5.43 mln new mobile subscribers, pushing the operator's total mobile user base to 644.32 mln, of which a total of 48.01 mln subscribers used China Mobile's TD-SCDMA terminals during the month. China Mobile added 2.68 mln new TD-SCDMA subscribers in November. China Unicom (NYSE: CHU; 0762.HK; 600050.SH) added 3.60 mln new mobile subscribers, bringing its total to 195.97 mln. Of the new mobile subs added, 0.21 mln were GSM subscribers, bringing China Unicom's total GSM user base to 159.44 mln, and 3.38 mln were WCDMA subscribers, pushing the company's total WCDMA user base to 36.53 mln subscribers. China Telecom (NYSE: CHA; 0728.HK) added 3.10 mln CDMA subs, taking its total to 123.39 mln, of which 33.35 mln were CDMA2000 EV-DO subsc...

Rumor: Telecom Operators Lose IPTV Revenue Share to CNTV Itxinwen.com, 12/16/11 According to a source within the telecom operator, Shenzhen Telecom can receive a 50-60% revenue share in an IPTV joint venture with Shanghai Media Group IPTV subsidiary Shanghai BesTV, but receive only approximately 30% of revenues in an IPTV partnership with CCTV's national online TV station CNTV and local broadcasting authorities. According to another industry source, CNTV takes the lion's share in partnerships with telecom operators, who receive approximately 10% of revenues. Shandong Telecom recently partnered with CNTV and Shandong Radio & TV Station to launch IPTV services, while Beijing Unicom and Beijing TV Station did the same earlier this year. Shanxi Radio and Television partnered with CNTV and Shandong Unicom to launch IPTV services in November 2011. In August 2011, CNTV filed lawsuits against Guangdong Unicom and Jiangsu Unicom in Guangzhou Intermediate People's Court and Nanji...

Coship to Transfer 3G Technology to Sowill Dfdaily.com, 12/15/11 In a public filing yesterday, Chinese developer and manufacturer of satellite receivers and cable and terrestrial set-top boxes (STBs) Coship Electronics (002052.SZ) said that it planned to sign a technology transfer agreement with the Sowill Group under which it will transfer key technologies in its TD-SCDMA, WCDMA, and tablet technology solutions, as well as intelligent remote control solutions and Bluetooth module technology solutions, to Sowill for RMB 35 mln. Coship said it would cease its investments in 3G mobile handsets following the transfer. Though Coship is a manufacturer of television set-top boxes (STBs), Coship chairman Yuan Ming had been interested in the mobile handset industry, and began preparing the company for an entry into the industry in 2009. In 2010, Coship began luring employees away from Shenzhen-based handset maker Yulong Computer Telecommunication, a subsidiary of China Wireless Technologies (2...

China Mobile Unveils Mobile Base Strategy Sohu IT, 12/14/11 At its 2011 Global Developers Conference in Guangzhou on the evening of December 13, China Mobile (NYSE: CHL; 0941.HK) unveiled its "nine service bases" strategy, as well as some of its mobile internet development strategies. China Mobile categorizes the bases as "Content" bases (covering music, video, reading, games, and animation), "Function" bases (covering e-commerce, M2M, and LBS), and "General" bases (covering the operator's internet base). Chen Jianji, general manager of the operator's mobile music base in Sichuan, said that the base had partnered with more than 500 content providers to offer works from 150,000 artists to more than 420 mln users who had tried the service, 60 mln of whom were "VIP subscribers." Wang Bin, general manager of the operator's mobile video service in Shanghai, said that the base and its partners had built an operations team of more ...

Interesting news out of England today. French National, Nicolas Anelka, one of the deadliest strikers in European Football over the last ten years, has signed a contract with Shanghai Shenhua FC. The former Paris St. Germain, Arsenal and most recently Chelsea striker has agreed to a contract worth a reported $313,000 per week to play in the Chinese professional league. This is roughly the equivalent of Pele, Beckenbauer, Chinaglia and other greats joining the NASL at the end of their careers in the 70s and more recently David Beckham joining the MLS team, LA Galaxy, five years ago. Anelka is on the back end of his career but still a viable player and the first such to join the Chinese league. The title of this post refers to the excellent book by Franklin Foer, entitled How Soccer Explains the World: An Unlikely Theory of Globalization. I read this book some years ago and it is a fascinating study in how the global game has influenced and been influenced by global change. China has t...

Rumor: Alibaba Group to Wholly Acquire TV Shopping JV Tencent Tech, 12/12/11 An industry source claims that Chinese e-commerce company Alibaba Group will wholly acquire TV shopping joint venture Wasu Taobao Digital Technology for RMB 28 mln from IPTV network operator Wasu Digital TV. Following the acquisition, Wasu Taobao will come under the management of Alibaba's Taobao Mall platform. Alibaba has not offered any comment on the claims. According to an unconfirmed report, Wasu Taobao has lost nearly RMB 10 mln over the year since it launched. Editor's Note: For more information on this topic, please see " Alibaba and Wasu Officially Announce JV ," MD 6/29/10 and " Wasu Taobao TV Shopping Platform Supports Alipay ," MD 3/29/11 issues

Source : Xinhua BEIJING, Dec. 8 (Xinhua) -- China's entry to the World Trade Organization (WTO) a decade ago opened the floodgates to foreign investment in a variety of areas, but the retailing sector is surely the most potent symbol of how foreign businesses have come, competed and conquered on the levelling field. The days have long gone when neighborhood shop keepers would man their counters, ready to dispense to customers whatever their little shops would hold, and when buyers had to go to separate places for groceries, electronics and other products. The landing of supermarkets, with their open shelves, abundant variety and lower prices, changed everything, transforming the way people shop in China. To see supermarkets' appeal as China marks the 10th anniversary of its accession to the WTO, observers need only look at the growth of French-based chain Carrefour. Just days ago, it celebrated the opening of its 200th store in China. "Going to supermarkets is becoming our...

Tencent's Weixin Users Reach Over 50 Mln DoNews, 12/09/11 Liu Lejun, director of Shenzhen-based internet company Tencent's (0700.HK) Kik-clone Weixin, said today that as of the end of November, the mobile IM application had more than 50 mln registered users and 20 mln active users following its launch this January. Every day, Liu said, the application's new "shake" feature, which allows users to shake their phones to find nearby users who also shake their phones, is used more than 100 mln times. Liu said that the development of Weixin had passed through three stages: "platformization," in which it was connected with other Tencent products including QQ, QQ Mail, and Tencent Microblog to help users integrate and manage their contacts; "social diversification," which allowed users to manage social networks containing a diverse range of contacts from close friends to relative strangers; and "lifestyle," in which Tencent added features inc...

Yesterday morning I spoke on a panel at the Confucius Institute for Business at SUNY Levin in Midtown Manhattan. The subject was fashion and luxury in China and how language and culture play a role. The event was a success thanks to the excellent panelists and the enthusiasm and participation of the audience. One question stood out. I said hopefully China will be successful in its transition from a commodity/export based economy, lacking innovation, to an economy driven by innovation, consumer spending and services. I was asked why I said hopefully. My answer. This type of transition is difficult under the best of circumstances. Never mind if: you have 1.3 billion people to employ, feed and take care of, an environment that is poisoned, a populace that needs to pay for its own health care and education, a looming change in leadership, shifting Geo-political winds, a neighborhood that is increasingly wary of your intentions, a need to keep growth at at least 8%, an educational an...

Dangdang Loses Lawsuit Over Canceled Orders Beijing Evening News, 12/06/11 The Dongcheng District People's Court in Beijing yesterday ruled in favor of five consumers who sued Chinese B2C e-commerce site Dangdang (NYSE: DANG) for canceling their orders during a book sales promotion. One plaintiff placed three orders for 66 books totaling RMB 150 during a midnight sale on the site on August 9, only for Dangdang to cancel two orders due to lack of supplies and canceling the third order later, simply labeling the transaction as "unsuccessful." Dangdang argued that since the first two orders were out of stock, no contractual agreement had been reached, and that the third order was canceled because of a pricing error. Thousands of customers had orders canceled during the promotion and are seeking legal redress, and 60 have already filed lawsuits. Editor's Note: For more information on this topic, please see " Dangdang Customers Sue Over Canceled Orders ," MD 8/23...

Rumor: China Telecom, Unicom Request NDRC Dismiss Probe 21st Century Business Herald, 12/03/11 China's National Development and Reform Commission (NDRC) has received requests from both China Telecom (NYSE: CHA; 0728.HK) and China Unicom (NYSE: CHU; 0762.HK; 600050.SH) to halt its internet access antitrust probe, according to a source within the NDRC. According to Article 45 of China's Antitrust Law, if the target companies of an antitrust investigation pledge to take specific measures to eliminate monopolistic practices within a designated time period, the investigating body may terminate the investigation. A source within the State Administration of Radio, Film and Television's (SARFT) Department of Science and Technology revealed on December 2 that the two operators had proposed to lower interconnection fees to China Tietong's network, a clear indication that China's Ministry of Industry and Information Technology (MIIT) is coordinating to bring the three networks...

Source : Want China Times New Zealand dairy giant Fonterra announced that it will increase its sales of milk to China directly exported from New Zealand, and improve the output of three its own farms in China. Fonterra CEO Theo Spierings said the 2008 Chinese melamine incident taught the company that an integrated business model of controlling the whole production process from farms to customers is the best way to fully secure food safety. After the incident, the company suffered from losses of US$151 million in investments in China's SanLu Group, the maker of the first poisonous milk found in China. Since then, Fonterra has moved its business model to one focusing on integrated production chains instead of joint ventures. The company expressed on July 19 that it plans to build a new world-class farm in China's northern Hebei province and raise its annual milk output to 90,000 liters. China is a growth market featured in the company's strategy, Spierings said. The country h...

Rumor: Several Chinese Group Buy Sites in Arrears Beijing Business News, 12/01/11 An industry source recently revealed that several Chinese group buy sites, including Groupon.cn (a Chinese group buy site unaffiliated with US firm Groupon) and the group buy channels of Fantong.com and online classified site 58.com, are in arrears to many merchant partners with some payments delayed until 2012. The owner of one Beijing-based sushi restaurant that partnered with several group buy sites in October, said Fantong Fantuan delayed payment for a month. As a result, the owner said she has begun to offer group buy deals in which users make a small down payment on a discount offer via the group buy site, and pay the balance upon arrival at the restaurant. Recounting his own experience with Groupon.cn, one merchant said that his contact at a group buy site recently left the company, which is a month late on its latest payment and altogether owes RMB 200,000 in back-payments. Later, in a chat forum ...

People.com.cn, 12/21/11 Chang Xiaoxun, director of the Ministry of Commerce's Department of Market Supervision, said in a December 20 interview that China's national government agencies have basically completed the transition to genuine software products, a process expected to be completed by all government agencies nationwide by 2012. Chang said that government agency offices in cities at the prefecture level and above will be using legal software by June next year. Chang recommended that government offices incorporate costs for standardizing the use of legal software products in their budgets, develop means to audit and supervise compliance both within their own offices as well as in state-owned enterprises under their purview. Once the transition is complete, the process will be expanded to cover companies and individuals.

I have been writing a bit lately about the moves Beijing has been making in curtailing media content. Last month I made the case that by curtailing freedom of media and by not allowing the market to direct media production and consumption that China was actually endangering, not preserving its future. Why? Because China wants to move to an economy fueled by innovation, high value add products and services. China also wants to effectively wield soft power around the world. These moves will stifle the needed market motivations and personal creativity needed to achieve the above. This week a number of readers have asked why Beijing banned some advertising on TV and what it means. The first thing to know is that this move is part of a larger corralling of media of all types; internet, social, blogs, print, movies and yes, TV. The main factors feeding the year-long campaign, of which the ad ban is just one piece, are: 1- A change of leadership is coming. Next year President Hu and P...

MIIT Waives Charger Requirement for Handset Testing Sznews.com, 12/01/11 The Ministry of Industry and Information Technology's (MIIT) China Telecommunication Technology Labs (CTTL) recently divulged that starting December 1, handsets submitted for network access permit approval do not need to supply a power adapter. In early 2010, MIIT published its mobile telecom terminal standard YD/T 1591-2009, or "Technical Requirements and Test Methods for Chargers and Data Interfaces for Mobile Telecommunications Terminals," stating that handsets and chargers must adopt a three-section design that includes round, mini-USB and micro-USB connections, allowing one charger to be used for various handset models. The standard, however, met serious obstacles as many overseas handset vendors failed to comply - the iPhone, for example, continues to use its own dock port design. Editor's Note: For more information on this topic, please see " MIIT Publishes New Handset Charger Standar...