Weekly Roundup: Novo Nordisk Goes Big, Cheap Electronics, Vietnam’s Crisis, Dynastic Meteorology, Senior Misappropriation

Wednesday, November 12, 2008 0:51
Posted in category Uncategorized

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 4 articles 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.

Novo Nordisk invests $400 million in Chinese insulin production plant

In the middle of a brew ha ha about product quality in the food and pharma space, Novo Nordisk has decided now is the time to invest in a new 500 million USD facility in Tianjin.  Bad timing aside, this announcement shows that some still see the opportunities that China avails, and that in a time when others are scaling back.. there are those that believe their business case is solid beyond the financial and food crisis’s.

Suning passes price savings to buyers as material costs drop

for those consumers with a little credit left, it appears that the opportunity to go out and  electronics is upon us!

white goods such as air-conditioners and refrigerators to fall by 30 percent while those for television sets, mobile phones and computers to drop by at least 15 percent.

Vietnam’s crisis within the crisis

for those of youwho have been following All Roads, oyu will know that I am not a big believer in vientam becoming the next China.  Limited logistics, shallow labor pools, and a lack of consumer markets will create only limited opportunities.. and should those opportunities be over exploited, it will impact the larger economy in a while impossible in China.  Through this article, you will get a much better analysis than I can provide, and I suggest you continue to follow the East Asia Forum as it is a great resource

Rise and Fall of Chinese Dynasties Tied to Changes in Rainfall

Scientific American steps out of the box and puts together a very interesting article on the role of water in China. A finite resource for all, in China there are severe water imbalances present in the economy that have many worried… and as an avid believer that water will be the issue for China long term, I thought this article pulled together a theory that I had not seen before.

Senior official goes on trial over misappropriating of 218 million yuan 

When reading this article, a question popped into my head.  How much does china learn with each case of corruption about how to build a system that prohibits the ability to act in a corrupt manner.  Morailty and education aside, is China able to draw out lessons from these cases?  Is it possible that through the case highlighted in this story that changes are made that prevent a person in the same position from duplicating what has happened?  Is that a reasonable question to ask?

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4 Responses to “Weekly Roundup: Novo Nordisk Goes Big, Cheap Electronics, Vietnam’s Crisis, Dynastic Meteorology, Senior Misappropriation”

  1. Duncan says:

    November 12th, 2008 at 7:26 pm

    Insulin’s a good long term bet for a China business – I was listening to a radio programme just yesterday pointing out that the tubby little emperors are likely to drive diabetes rates higher…

  2. Richard Gould says:

    November 12th, 2008 at 9:07 pm

    The Novo Nordisk investment is very likely a smart move. Even though the Chinese economy will slow down in the near-term, the long-term potential for major growth is still there. I see no compelling reason not to be bullish on China for the long-term.

  3. Rich says:

    November 14th, 2008 at 3:54 am

    Duncan/ Richard.

    I would agree that this is a strong move, and a result of the growing demand for pharma in China.

    I was speaking with an equipment manufacturer who could not keep up with orders for his product (dialysis machinery), and there are a number of firms poised to do well as long as they can keep their products stable.

    R

  4. Hoang Dang Vit says:

    November 16th, 2008 at 9:30 pm

    Of course Vietnam is not the next China. It’s 100 times smaller. These comments trying to compare the two are nonsense. It is an important regional player but it is not another China. That honor belongs to India, not Vietnam.