BUSINESS >> Insight

Let’s breed

The donkey is more than just a mode of transport in some less economically developed countries. Its skin can be used to produce ejiao, a traditional Chinese medicine that is gaining worldwide popularity due to its blood-nourishing benefits. But the rising demand of ejiao is causing the mass death of donkeys every year. And farmers’ reluctance to enhance breeding has provoked concerns among experts that the global donkey population is at risk of endangerment. In order to ensure a supply-demand balance in the market, an international alliance of firms and experts has recently been established to boost donkey cultivation around the world.
Source: Global Times | 2017/8/20 18:23:39

Flight delay fiasco

Extreme weather unavoidably affects the punctuality of flights, but improvements in early warnings and control mechanisms can be achieved to reduce the impact of environmental influences on aviation efficiency, experts have advised.
Source: Global Times | 2017/8/17 18:33:40

Lithium trade to transform

China is a country with large lithium carbonate reserves, with the figure standing at 17 million tons in 2016. But China still imports a large amount of the material used for lithium-ion batteries in new-energy vehicles, which an expert said is due to inadequacy in lithium exploitation mainly caused by geographical difficulties. Thus, many domestic lithium resource developers like Huayou Cobalt Co and Jiangxi Ganfeng Lithium Co have begun expanding overseas by making full use of lithium resources in Australia and Africa.
Source: Global Times | 2017/8/16 17:53:39

Beyond Wangjing

Wangjing, the famous Korea Town in Beijing, is a place where many South Korean companies are located. But as more South Korean businesspeople become increasingly familiar with other areas in or bordering Beijing, some are considering moving their offices or starting their businesses in these areas to pursue low costs. But wherever South Korean companies are located in Beijing, they inevitably face increasing competition from local firms, especially in the Internet sector.
Source: Global Times | 2017/8/13 17:33:40

Transatlantic alliance announced

A transatlantic alliance between three global airlines will shore up their positions in the lucrative UK-US market, shielding them from low-cost rivals and the uncertainties of the UK’s exit from the EU.
Source: Reuters-Global Times | 2017/8/10 18:13:39

Bay areas expected to boom

Chinese Premier Li Keqiang has urged further development of the Guangdong-Hong Kong-Macao Greater Bay Area Initiative highlighted in the 2017 Government Work Report. This reflects the central government’s firm support of pushing forward this top-designed and ambitious plan. The initiative, which was first discussed in 2008, now intends to emphasize the region’s role in global economic supply chains and is often compared to other bay areas such as those in San Francisco and Tokyo. Some experts have suggested that, after the Guangdong-Hong Kong-Macao Greater Bay Area is established, more bay areas could also be considered in other Chinese regions. However, not every expert specializing in urbanization and city development agrees with the idea.
Source: Global Times | 2017/8/9 17:48:39

Chinese games prosper beyond border

China’s game developers, big or small, are busily exploring the overseas markets, not only in developed countries like the US, but also in emerging markets like India. The Global Times recently spoke with several Chinese developers about how they are conquering global markets with Made-in-China games. However, it seems that challenges have also emerged.
Source: Global Times | 2017/8/8 17:48:39

Artificial intelligence embracement

An increasing number of fund management companies have started to leverage artificial intelligence (AI) technology and big data to offer customized services in China. Experts agree that the technology could soon become a trend as it can help fund managers grasp the latest market information and large amounts of user data. But AI may only be used as a supplementary tool in the domestic market and may not hold up as the ultimate decision-maker.
Source: Global Times | 2017/8/7 16:28:39

Illegal fundraising influx

Illegal fundraising cases in China have been on the rise in recent years, partly due to the burgeoning online finance sector. A typical case study is the high-profile traffic-straddling Transit Elevated Bus project also known as “Batie,” developed by online lending company Huayingkailai, which folded in July after unlawfully soliciting 4.8 billion yuan from 40,000 investors. The Global Times spoke with several investors victimized by the scam as well as lawyers to investigate the common tricks employed by financing platforms and areas where governments could strengthen supervision.
Source: Global Times | 2017/8/6 17:23:39

United to exit Hangzhou market

Having only operated a route to Hangzhou, capital of East China’s Zhejiang Province, just over a year, United Airlines, one of the US’ three main carriers, is set to exit that market in October due to stagnant performance.
Source: Global Times | 2017/8/3 17:43:40

Wanda in big sell-off

Since Dalian Wanda Group announced in late July that it has agreed to sell its cultural and tourism projects and hotel assets, market speculation has emerged over its sustainability and profitability. While some have linked the deal with mounting debts or Chinese regulators’ agenda on curbing financial risks, Wanda’s chairman Wang Jianlin maintains that the move is a symbol of “light-asset strategy.”
Source: Global Times | 2017/8/2 17:58:39

Third-party payment regulation

Regulators are enhancing their supervision in the third-party online payment business by imposing fines, revoking operation licenses and setting up a centralized clearing platform to build a safety net that would stem out risks in the industry. Experts say such a trend will trim the number of irresponsible service providers and further consolidate the industry.
Source: Global Times | 2017/8/1 18:53:39

Shanghai’s traditional department stores re-strategize their customer services to woo all generations amid the Internet era

Following the closure of Shanghai No.1 Department Store in June for refurbishment, another State-owned department store in Shanghai, the Orient Shopping Center, is to close in mid-August for the same reason. The renovation plans aim to modernize the old stores to attract more consumers of different ages. Experts say that the modernization of retail would also need to involve the combination of online and offline businesses to better optimize consumer experiences.
Source: Global Times | 2017/7/31 17:43:39

FDI: The key to strong economy

Foreign and Chinese officials as well as experts and representatives from multinational enterprises gathered in Beijing last Tuesday to discuss the impact of foreign direct investment (FDI) on China’s economic growth. Participants said that China has benefited from FDI over the past years because foreign companies can help the nation achieve its development goals and carry out major initiatives. The Chinese government has endeavored to further open up its markets through efforts like introducing national guidelines to aid foreign investment. Foreign capital could also help the construction of the China-proposed Belt and Road initiative, experts noted.
Source: Global Times | 2017/7/30 17:38:39

Burgeoning tourism and trade between China and Russia energize air route cooperation

The aviation ties between China and Russia are strengthening as a result of sped-up cooperation in areas like tourism and trade.
Source: Global Times | 2017/7/27 19:53:39

US goods thrive in Chinese market

More and more Chinese consumers are becoming fans of US products. The growing popularity of US goods in China is in line with the country’s economic growth as well as residents’ growing incomes, experts say. But experts also note that consumers’ passion for US brands will cool down gradually as a result of increasing competition from domestic products.
Source: Global Times | 2017/7/26 17:03:40

China continues investment in overseas port assets, but hasn’t reached high tides yet

Chinese companies have been ramping up their efforts in acquiring port assets around the world. Experts say, while not totally trouble-free, investment in port assets could turn out to be a good bargain. Such efforts have also been intensifying the economic relations between China and the countries of the purchased ports.
Source: Global Times | 2017/7/25 17:28:39

China’s first lifelong accountability system to prevent local officials from accruing mountainous debt

During the fifth National Financial Work Conference, held from July 14 to 15, China announced for the first time that a lifelong accountability system will be put in place to tackle local governments’ debt issues. The measure demonstrates the importance of holding Chinese officials responsible for making bad debt-management decisions, even after their term in office ends. Experts say the new policy could help shift local governments’ focus from the mere pursuit of GDP growth to wider concerns such as employment, social growth and environmental protection.
Source: Global Times | 2017/7/24 18:03:40