Marketing Status

Total 3232 projects with total contractual foreign investment of US$ 32.96 billion

28 new projects with total contractual foreign investment of US$ 122.63 million by the end of Apr., 2008

Over the last 24 hours I have been asked to give my thoughts about the impact of the quake on China’s economy, and too be honest I was working to much on emailing friends in the area to worry about it.

Now, that I have a bit of downtime though, I think that it is important to address the fact that there will be a long term impact on the area and there are a few things that should be said.

First, the hardest hit areas have historically developed slower from an economical perspective as they lacked the natural export markets that the cities on the east coast have. However, the area of Mianyang is a major city of Sichuan, and the role of this area to the southwest market was becoming more important.

So, from a manufacturing perspective I do not see many industries that will see a significant impact at the 1st and 2nd tier, however where we will need to wait and see will be on the raw material front. this is a resource rich area, and it is possible that this catastrophe will hinder some supply lines.

Second, great expense and resources will go into the rescue efforts, clean up, and rebuilding, and this and that means that resources will be diverted. energy, gas, trucks, rail, etc. will all be diverted to support the efforts, and that may mean some disruptions in the middle of the country.. some on the east coast.

Third, from an agricultural perspective, Sichuan is an important producer of agricultural products, particularly pork, and depending on the severity of the damage to farms inflationary pressure may increase.

Fourth, as we saw from the fact that many Sichuan stocks were halted and the exchange itself fell, there could be some mid term impact on the exchange and the stocks traded on it (insurance stocks) that occurs.

Over the next few weeks, as the debris is cleared and the damage assessed, a clearer picture will come forward. for me, I am going to be focused on working with agencies I know in the area to do what I can, but I think it is important that investors in China understand what the potential ripples are.

As we saw just a few months ago, the Chinese government can quickly mobilize and recover from major catastropies and I wish them all the best in their efforts. If your firm is a steel manufacturer, medical equipment group, pharmaceutical I urge you to follow the situation closely and work with governments and NGOs in the area to assess and address the needs.

If I hear of anything that I think is urgent from the business side, I will be sure to pass it along, but I am confident that the economic impact will be less than the recent snow storms.

This Afternoon I read a piece saying that the earthquake would not affect the current path of the torch on its way from Sichuan to Chongqing, and I came up with an idea.

今天下午我读到一篇报道，内容是：奥运火炬在四川的路线不会因为这次地震而改变。这条报道引发了我的另一个想法。

If the torch represents hope and the spirit of teamwork, why shouldn’t the path of the torch be changed. Why shouldn’t the torch be taken to Wenchuan where it appears the most damage has been done, and be left there as a sign that China (the world) is focused on Wenchuan and the affected areas.

如果奥运火炬象征着希望和团队精神，那为什么不改变奥运圣火的传递路线呢？为什么不将奥运圣火传递到汶川这个受灾最重的地方，并让圣火留在汶川以显示中国，甚至整个世界都在关注着汶川和其他的受灾地区。

So, with this in mind, I am hoping that Olympic sponsors (particularly those who have torch bearers in Sichuan) to call BOCOG and see what can be done.

所以我希望奥运会的赞助商们，特别是那些将在四川传递火炬的赞助商们，能够号召北京奥组委并关注其是否能作出相关的努力。

In my mind, to simply run through the affected areas without stopping there is not the right thing to do, and perhaps it will be difficult to get the torch there.

But, then again, they just got it to the top of Everest.

我个人认为，只是将奥运火炬在受灾地区传递而不停留的做法是有欠妥当的。目前，将火炬传递到受灾地区可能也是困难的。但是，转念一想，中国不是已经让圣火传递到珠峰顶了吗？

With so much going on in China, and only a limited amount of bandwidth, I have created this weekly post to highlight articles that I feel are (1) important, (2) relevant, and (3) interesting.

This week there are 3 articles + 1 youtube that I have chosen to highlight as each are quite interesting, they are all relevant, and there are issues within each that I think you the reader should be aware of.

If you have an article that you feel needs to be mentioned, please do so in the comments section. We all have different areas of interest and bandwidth, so I hope you will take some time and post those articles!

Continue reading »

Breaking news coming across wires is that a scale 7.8 earthquake has hit Sichuan, and a 3.9 quake has hit Beijing, and 5.7 in Taiwan.

There are reports that some buildings shook in Shanghai, Guangdong, Hanoi, and even Bangkok

Buidlings in Shanghai have been evacuated (CITIC, Plaza 66, and others in Pudong) and Wenjiabao is already on a plane to the Sichuan affected site.

For anyone interested in following the news, go to Shangahiist. They are updating on a frequent basis. As reports of damage come in, I will post more on how to help on Crossroads. I have sent emails to NGOs in the area to see what their needs are and I will post those as I have them.

For those interested in assisting those affected, please go to Crossroads.  I have a short list of NGOs that companies/ individuals can look to. I will be adding to this list over the next few days.

for those interested, here is a map of fault lines in China.

Under normal circumstances, I would post an environmentally related post like this only on Crossroads, but this is no normal post.

For regular readers, you will know that one of the things that I follow closely, and one of the things that I worry about more frequently, is sustainability of resources in China… particularly water (see previous posts: China is RUNNING OUT OF WATER, People May Think I am Overreacting, Why China’s Recent Drought Matters to YOU, Water: What if, What Else, & What are the Odds)

Recently, PBS has been running a series called China from the Inside that covers a range of topics focused on hot button or social issues, and this week’s episode - Shifting Nature - the focus is on the impact of China’s growth on its environment.

If I could somehow enforce a requirement for every reader to watch it I would (especially given algae blooms are already showing in three of China’s largest lakes). It is simply one of the best journalistic pieces I have seen on the topic, and the access that this team got is simply amazing.

Split into 6 clips (I posted the 1st on main site, and last 5 after the break) of about 8-9 minutes each, so give yourself some time to watch this at one go…

Part 1:

Continue reading »

The US China Business Council has just put up (Maybe I just found it) one of the most useful maps I have seen when it comes to trade between the US and China called the Congressional District Exports to China: 2000-07

With the ability to make a cut at the state level, and at the congressional level, the USCBC has done a great job of providing a useful interface for people interested in learning more about exports of goods made in the United States.

As an example, take a look at Missouri (my home state):

Missouri’s Congressional Districts

1. MO-01
2. MO-02
3. MO-03
4. MO-04
5. MO-05
6. MO-06
7. MO-07
8. MO-08
9. MO-09

US Exports to China by State

Missouri
All states

Click for Congressional District Locater

Kind of depressing that the top 3 exports from Missouri are waste, chemicals, and minerals…. but good to see the Great State of Missouri (not Missoura) is representing!