Site menu:

Technical Sales: Tracy Lee Once we have received sufficient information, we will provide a quotation within a week. If the quotation is acceptable, We will have a sample made and shipped to required destination. Upon approval of sample, we will have the product made and shipped. The time from acceptance of quotation until receipt of sample is usually 2-4 weeks. The time from approval of sample until receipt of production for the first order is usually 120-150 days.Subsequent orders are usually 70-100 days.

Contact info:
Tracy A. Lee

111 NE 11th Street   Map
Grand Prairie, TX 75050
Tel: (972) 602-1478
Fax: (972) 660-2845
tlee@firstexind.com

Firstex Industries
has expertise in these areas:

Product Links

News from the Import Industry

June 02, 2009

ZhibinGu: China management: outsourcing, stock market, consumer, challenges, opportunities

How is global financial crisis reshaping Chinese and world politics, finance, banking, trade and outsourcing? How to profit from rising Chinese trade, yuan and stock market? How do over a half million international companies make profits in China? Learn about Chinese multinationals, society, banking, management, outsourcing, education, politics, individual life during a transition period. How to do investing, travel, trade inside China? Get real investigations from a timely book.

Get onground knowledge and analysis from business and investment guide book: China’s Global Reach

Borderless Business, National Competition, Politics, and Globalization (book excerpts)

by George Zhibin Gu

Afterword
China, United States and Global Development
by Andre Gunder Frank

Chapter 13. CHINESE MULTINATIONALS

In this era, the key Chinese strategy is to bring foreign investors over to China. In this regard, China has been doing very well. Consequently, the nation has quickly become a global center. This basic strategy will not change any time soon.

At the same time, especially recently, a small group of Chinese companies have increasingly tried to reach the overseas markets in various ways. However, it has not happened in any big way so far. In truth, setting up an extensive international franchise for China Inc. remains at the very beginning.

In this chapter and the next one, we will examine various business dealings of China’s international work. Still, the most interesting ones take place at home market still.

Some Sizable Chinese Companies

At this time, the 15 Chinese companies in the 500 club are all state-run companies. The list in 2003 included several telecom operators, four banks, State Grid, China Food Group, China Life, Baosteel, and SAIC, the Shanghai-based auto maker.

For now, China’s energy needs are exploding. It now builds a new power plant each and every week. However, the prize goes mostly to State Grid and six other state energy companies. Only in this era have private investors and overseas parties been allowed to enter the field. Still, nobody can compete with State Grid directly, which controls much of the power transmission business. Its predecessor, State Energy, monopolized the entire energy sector for several decades. Only by the end of 1990s, reform on the energy sector gave rise to State Grid and six other companies.

State Grid was already ranked 46th in the club as of 2003. It will become bigger, as China’s energy needs are still exploding. For long, there have been frequent power shortages, even if China is already the second biggest energy supplier after the United States. Naturally, this attracts more investment.

In the state sector group, at least three companies, China National Petroleum Company (CNPC), Sinopec, and China National Offshore Oil Corporation, are already global players. How can they be this big? Well, these three companies form the state monopoly. Their annual profits could reach over $10 billion.

A booming economy has brought these companies all the perks. Since 1993, China has become a net importer of oil. In 2005, China consumed over 7% of the global oil supply. By 2020, its oil demand will likely triple. Fifty percent or more will have to be imported. Therefore, these three giants must go outside to acquire both supply and assets.

So far, CNPC has been competing with the other two oil players head-on in the international field as well as at home. These three giants have fistfights with each other, especially when they see golden spots for gas stations. CNPC’s new management style is reflected in the letter of complaint it sent to Fortune magazine when the Fortune editors wrongly ranked the company a low 73rd. The magazine had to upgrade CNPC to the 52nd slot.

All three companies have already cut a few dozen deals around the world. They are aggressive and go everywhere oil resources are located. So, these three giants are ahead of the curve compared to China Inc. as far as international expansion is concerned. However, several others in this group are also strong.

Take China Mobile and China Unicom. These companies are the monopoly over China’s mobile communication market. China is already the biggest mobile phone market. By early 2006, there were over 400 million users. China Mobile and China Unicom have been the winners in this game. Private Chinese companies are banned from the field. International companies can only sell them hardware and software.

With billions in cash and over 400 million consumers in hand, these companies can go far. At investor conferences, many investors ask about their plans. But the truth is that China has an exploding mobile market, and these companies will stay at home for a while. They have yet to gain international experience above all. They are far from ready to jump into overseas market in a big way, though they may start to test the water soon.

But there are some occasional ventures especially related to industrial materials. The Shanghai-based steel mill Baosteel has created a major joint venture in Brazil. China’s steel market is already bigger than those in the United States and Japan combined, and China still imports more steel. Its manufacturing expansion is demanding ever-increasing amounts of metals, steel, and cements, among other basic industrial materials. Therefore, Baosteel and several other Chinese companies are reaching out to be near resource-rich places. Latin America, Canada, Australia, and Africa are all natural choices.

by globalization, politics, management forum Monday, Jun. 01, 2009 at 4:00 AM

SOURCE: cLEVELAND INDY MEDIA CENTER

[ Back to top ]

Home | Expertise | Inventory | What | Why | Procurement | FAQ | Contact Us | Product Album | Links | News | Site Map

Valid XHTML 1.0 Strict Copyright © 2006 Firstex Industries | Webmaster:Kevin Grey Lee