A Journey to China

Monday, June 12, 2006

Research on Firms and Government Offices

SHENZHEN

Shenzhen NewlyEverRise Electronics Co. Ltd
Searching through their website didn’t provide me with much insight into this firm, apart from the photos leading me to believe that it is a fairly large manufacturing company of sorts. After doing a bit of googling however I have ascertained that they manufacture components for various electrical appliances. I found the company listed under a medical electronics suppliers directory so I would be interested to find out to what level they manufacture components for this purpose and also if they encounter problems when trying export electronics for the use in the medical field.

BBK Cell Phone Factory
This company manufactures and sells cell phones as well as television screens and DVD players. From the website it would appear to be a fairly large firm. I would be interested to know how many employees they have working for them and also if they are encountering any problems with the shortage of skilled workers.

Yantian Seaport & Logistics Center
The Shenzhen port is the fourth largest port in the world. Methods by which the Yantian Seaport & Logistics Center deals with the mass of volume that flows through it would be a question which I would like to ask. What lessons do they take from those three ports which are larger than them? Also it would appear from the website that this company is celebrating its 20th anniversary. How significant is this for the company?


SHANGHAI

Price Waterhouse Cooper
PWC offer much of the same services in China as they do in their other offices worldwide. These include audit and assurance, business recovery, corporate finance and global risk management solutions. They are the leading professional services organization in mainland China, Hong Kong and Macau with a total staff of around 6,500, including 260 partners. They are also the official professional services provider of the Asian tour.

Questions:
With the regulatory environment in China being so different from that of the US, how do you deal with the resulting conflicting reporting requirements?
Is it necessary to in effect create two sets of accounting reports, one for the Chinese government and one for the company’s home government?

CB Richard Ellis
CB Richard Ellis has been providing services in Shanghai since the early 1990’s. They are committed to providing high quality real estate services to developers, investors and occupiers throughout the Greater China area. The company is able to use its local market knowledge along with its regional and global network of offices to offer value added services which match the business interests of its clients. Some of its achievements include being named the 'Top Commercial Real Estate brand' by the Lipsey Company.

Shanghai Urban Planning Exhibition Hall
This museum occupies five floors that detail the plans of Shanghai's urban planners and is a place where visitors are provided with a glimpse of how Shanghai will look like in a couple of decades. The museum includes a huge model of how the city looks at present and maps detailing which districts are planned to be cleared in order for new construction to take place. There is also a model of old Shanghai with house entrances, cobble stone ways and operating shops and teahouses. The main model of planning is actually the largest model of urban planning in the world.

Questions:
While it is always easy to plan how difficult will these plans for the future Shanghai be to implement?
How does the idea of planning permission work here?

HSBC
The HSBC group is one of the world's largest banking and financial services organizations and its network in China is the largest of any foreign bank in mainland China. The Shanghai office of HSBC has been in operation for 130 years. In May 2000, the China head office was moved from its location in Hong Kong to Pudong, Shanghai and was renamed HSBC's General Representative Office Mainland China.

Questions:
How has the company maintained it competitive advantage over the many years of its operations in China?
How did they initially enter into the Chinese market?

RR Donnelley
RR Donnelley is the world's premier full-service provider of print and related services. It was founded over 140 years ago. It was the first US company since 1949 to receive a license to provide commercial print and print-related services within China. RR Donnelley entered China through a series of joint ventures. In 1993 it entered into an agreement with the Shenzhen Petrochemical Holding Co., Ltd and in 2001 they entered into a second joint venture agreement with the Shanghai Press and Publications Administration. The Shanghai facility was commissioned in October 2002.

Questions:
How has the business environment changed within China since their initial entry in 1993?
Is there anything that RR Donnelley would have done different in respect to how it has dealt with the business environment there?

Microsoft Global Technical Service Center
The Global Technical Support Center opened in Shanghai in 1998 by Microsoft was the first enterprise technical support center to be opened by a Fortune 500 companies in Shanghai. It represents an important part of Microsoft's globalization strategy and investment in technical support service. The center has more than 500 employees and provides world-class technical support services and cooperation with other global technical support centers. The mission of the support center is to enable its customers and partners to achieve their goals and realize their potential through world-class customer service and technical support.

Carre-Four
With its headquarters in France Carre-four is a global network of supermarkets second in terms of sales figures only to WalMart. It pioneered the concept of a hypermarket, a large supermarket combined with a department store. Carrefour was the first international retailer to establish a presence in Asia in 1989. The company opened it 76th Carrefour hypermarket on May 23rd 2006 in Shenzhen City. This store was the 5th such one in Shenzhen and has a sales area of 8,500 sq.m.

Question:
What unique difficulties has the company encountered in establishing itself within China that haven’t presented themselves as problems elsewhere?

Shanghai Museum
The museum has a collection of 120,000 works of ancient Chinese art which occupy 11 gallaries and three exhibition halls. Its location since 1990 has been in the People's Square. The building itself has a round top with a square base. Admission is free for students, as to whether this includes foreign students who knows.


HANGZHON/SUZHOU AREA

Wuzhen
This town is situated in the centre of six ancient towns south of the Yangtze River. The ancient town, dating back over 1000 years, seems like it will offer a unique experience for us of the history of China. I think it is interesting that the town, unlike many other historical sites around the world, has been more preserved rather than restored. I suppose I would like to know how this was made possible.

The Grand Canal of China
This is the longest and oldest canal in the world. With most rivers in China flowing west-east the canal provides a north-south link. Most of the questions I would have concerning the canal are probably things I could research and find out for myself. A couple of these questions would be:
How essential has the canal been to the Chinese economy over the years?
What is the limit on the size of boats that are allowed on the canal?

Suzhou Industrial Park
The China-Singapore Suzhou Industrial Park was established in February of 1994 when Chinese Vice Premier Li Lanqing and Singapore Senior Minister Lee Kuan Yew signed an agreement to jointly develop the Suzhou Industrial Park. Both countries, as well as other foreign enterprises, have benefited from the project. Many companies, such as Philips Semiconductors have located there due to the availability of workers and the well-developed technology and logistic facilities. Furthermore land in Suzhou is cheaper than in Shanghai but the city is still close enough to export goods relatively easy.

Questions:
What plans has the Suzhou Industrial Park implemented or intent to implement so that they stay ahead of the competition from other such industrial parks?
How do they plan on attracting new business, as well as maintaining existing business, in the park?
Is there ever any difficulty with attracting skilled labor to this area?


BEIJING

US Embassy/Commercial Attache
The US Embassy in Beijing serves as the bilateral mission between China and the United States and as a center for US Representations there. China’s diplomatic relations with the US represent one of the longest which the US has in Asia. The US Commercial Attache offers vast amounts of information and help to US companies doing business or thinking of doing business in China. These include market data, research assistance, protecting IP rights and exporting issues.

Questions:
How reliable can a US company expect the information gathered about Chinese companies to be? Without the same regulatory polices imposed by the Chinese government on their companies is it sometimes difficult to provide totally accurate and comparable information?

Sun Microsystems Engineering Center
Sun Microsystems entered the China market in 1987 and the China representative office was founded in the following year. Over the years Sun expanded quickly in China and now operates out of 4 offices located in Beijing, Shanghai, Guangzhou and Chengdu with more than 800 employees. The engineering center builds on Sun’s belief that software should be publicly available with open specifications so that the software a company uses can interact with whatever software its customers and partners are running.

Questions:
Does your model of openness in your software development afford you a competitive advantage when it comes to competitors like Microsoft?
How do you use your China operations to increase competitiveness on a global scale?

Beijing University
Peking University was the first national comprehensive university in China and was founded in 1898. It seems that the university is very intent on establishing a high level of foreign university programs within it. There are four Stanford programs and they started their sixth Cambridge and Oxford program in April. Being an international student here in the U.S. I would be interested to know the amount of admission applications they receive from international students and if there is a limit on the number they admit. The school of management there offers undergraduate, graduate and doctoral programs and has a total enrollment of over 3000 students. Guanghua also won first place as the Most Influential MBA of China in a ranking conducted by the World Executive.

Tsinghua University
Founded in 1911 the university was originally a preparatory school for students being sent to study in universities in the US. In 1928 it became the "National Tsinghua University". Owing to its original purpose the university is a blend of Western and Chinese culture. The current enrollment is over 20,000 students, including 12,000 undergraduates, 6,200 master's degrees candidates and 2,800 doctoral candidates. The university has survived many hardships throughout its existence such as the Resistance war against the Japanese invasion in 1937.

Questions:
With such a rich history and involvement in the struggles throughout China’s past how has this shaped and guided the current path of the university?
The Calpoly motto is “Learn by doing”, what would be Tsinghua University’s equivalent to this?

Panjianyaun Antique Collection Market
This is China’s largest collecting and distributing center of arts and crafts articles. The secondhand goods and antiquities on sale in the Panjiayuan market are a market of Chinese traditional culture. It was originally established as a flea market by small traders on roadside in Chaoyang district in 1992 but has since developed into its current scale. It is located in the city traffic hub and is easy for visitors to reach. The market covers over three hectares of land and accommodates over 3000 stalls. Its unique charm has made it a popular place of interest for Chinese and for foreign tourists to visit in Beijing.

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