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Substantial changes in China’s protection of IPR.

Substantial changes in China’s protection of IPR.

The country is making the transition from net importer of ideas to net innovator, and as it does, it is finding that good patent laws matter. Whilst addressing the recent Global Trade in Services Summit, President Xi Jinping stated ‘China will work with all countries in enhancing the protection of intellectual property rights (IPR) and actively promote the development of the digital economy and sharing economy’. At the end of 2019 the general offices of the Communist Party of China (CPC) Central Committee and the State Council have jointly issued a directive calling for intensified protection of IPR:  ‘Strengthening IPR protection is the most important content of improving the IPR protection system and also the biggest incentive to boost China's economic competitiveness.  By 2022, China will strive to effectively curb IPR infringement, and largely overcome challenges including high costs, low compensation and difficulties in providing evidence for safeguarding intellectual property rights’.

 

 

A case of this policy in action was demonstrated in September this year when nine people in Shanghai were sentenced up to six years in prison on for infringing on the copyright of Danish toymaker LEGO. The toys the group designed, produced and sold were under the brand name LEPIN, similar to LEGO. LEPIN's packaging, design and colour were all similar to that used by LEGO. The gang produced and sold nearly 4.25 million boxes of their copycat products worth over 300 million yuan, including 634 different models, from September 11, 2017 to April 23, 2019.

 

 

IPR infringement is a particularly worrying issue for new foreign business, and the policy document calls for China to make greater efforts to stepping up international cooperation in IPR protection, facilitating communication between domestic and foreign rights holders, and providing support in overseas IPR disputes.

 

 

Overall, China’s IP regime has made significant strides in the past few decades. For instance, China’s world leadership in patent quantity—though not in quality—signals its commitment to develop a robust innovation ecosystem at home. Minimum damage payouts for violations have continually increased, as have durations of patent protection. China even became the most litigious country in terms of the number of IP-related cases as early as 2005, and the number of cases has increased at a rate of over 40 percent per year for the past two years. In 2014, China debuted three specialized IP courts, and there are as many as 19 more in the pipeline. And contrary to popular expectations, foreign plaintiffs have actually fared better in patent litigation in these courts than their Chinese counterparts.

 

 

China now ranks second globally (excluding tax haven countries) in annual spending on acquisition of foreign IP as well as in gross research and development expenditure. In short, IP infringement remains a significant problem in China and the country’s IP protection regime still has shortcomings but robust change is occurring at China’s own initiative.

 

 

China IPR Procedures.

Patent registration procedure for inventions

  • File the patent application, submit relevant documents, and pay the filing costs (RMB 900 or US$128);
  • CNIPA accepts the application and conducts a preliminary examination (within 18 months from the filing date);
  • CNIPA conducts substantive examination (on the applicant’s request); and
  • CNIPA registers the designated patent and grants a standard patent for the invention.

 

 

Patent registration procedure for utility models or designs

  • File the patent application, submit relevant documents, and pay the filing costs (RMB 500 or US$71);
  • CNIPA accepts the application and conducts a preliminary examination; and
  • CNIPA register the designated patent and grant a standard patent for the utility models or designs.

 

 

Trademark registration procedure

  • Check whether the trademark is already registered and the category of the trademark;
  • Submit an application form and other relevant documents to the TMO;
  • TMO accepts the application;
  • TMO conducts preliminary and substantive examination (within nine to twelve months of the filing date);
  • TMO publishes a notification (followed by a three-month period to consider any objections); and
  • TMO issues a trademark registration certificate.

 

 

The procedure generally takes about 14 to 18 months. Within three months from the date of publication, any person can file an opposition against the trademark. A trademark in China is valid for 10 years and renewal of registration must be filed within 12 months before the date of expiration.

 

 

Copyright registration procedure

  • Apply with a sample of the work;
  • CNAC/CPCC accepts the application and conducts an examination; and
  • CNAC/CPCC issues the certificate.

 

 

For further information on China IPR issues, we suggest you visit the EU IPR SME Helpdesk: https://www.china-iprhelpdesk.eu which has the most up to date information on all IPR issues and gives free guidance on procedures and best practices.

 

 

 

Confucianism, consumerism and the pursui...

Confucianism, consumerism and the pursuit of wealth in a changing China.
Studying and understanding how ancient China viewed consumerism and the pursuit of wealth through the lens of Confucian thought and traditions, and how they impacted modern Chinese society, helps develop a deeper understanding of modern China.
 
 

In 2017 at the 19th National Congress meeting for the Chinese Communist Party, Xi Jing Pin recognized the influences of his vision for China, saying: the party has been guided by Marxism-Leninism, Mao Zedong Thought, Deng Xiaoping Theory.1  Based on the words and deeds of Xi, Zhang Jucheng, an academic from Yunnan University in Kunming, Yunnan Province, reinforces Xi’s views saying Marx, Mao and Confucius have been Xi’s greatest influences.2  Zhang believes Xi stresses the need to strictly enforce the party’s discipline, safeguard the unity of the party and the authority of the Central Committee, and ensure the unity of thought and action of the whole Communist Party. 

 

 

 Xi has popularized his own “China Dream” (中国梦, zhongguo meng).  In comparison with the stereotypical “American Dream,” which usually focuses primarily on the prosperity and happiness of the individual, “China Dream” refers to Xi’s vision for achieving rejuvenation of the Chinese nation as a whole.  Xi’s” dream” includes sustainable development, economic and political reform, encouraging entrepreneurial spirit and the pursuit of individuals dreams, but done with Chinese characteristics and rooted in traditional Confucian beliefs.

 

 

The Chinese Communist Party held a committee meeting in 2014 to discuss how to govern and develop socialism with Chinese characteristics going forward.  Xi was quoted: “We must realize the Chinese dream of the great rejuvenation of the Chinese nation, deepen reform, improve and develop the socialist system with Chinese characteristics in an all-round way, and improve the party's ability and level of governance…. we must strengthen and improve the centralization of power, and have a unified, powerful Party Central Committee.”

 

 

In Xi’s 2014 speech, centralization of power and the unification of thought were main themes.  However, these Maoist and traditional Chinese philosophies were amended with Xi’s Deng-like approach to the free-market.  Included in his proposal was the broadening of personal property and basic human political rights as long as they do not infringe on the interests of the party.

 

 

Here we see a fusion of multiple philosophies in how Xi envisions the modernization of China can be most effectively executed while maintaining central power and a Chinese version of modern socialism.  Where the U.S. political system may lack the ability to maintain political direction owing to shifts in the executive branch’s power (typically every 4-8 years), Xi and the Communist Party find strength in China’s unity and their long-term political vision and capabilities.  This may continue to be a central theme in the persistent difficulty to come to mutually beneficial Sino-U.S. relations.

 

 

In January 2019, Xi introduced an app called Xuexi Qiangguo (学习强国, studying a great nation).  With feelings of Mao-like nostalgia, Xi’s campaign to encourage the masses to study “Xi Jinping thought” on mobile devices was compared to Mao’s “Little Red Book” in unifying political and philosophical consensus in China.

 

 

China’s economic growth and modernization.

Since the reform and opening up of the Chinese economy and Xi’s rise to power over the past decade, China has explored several ways to boost growth through un-organic methods, including the use of state-owned enterprises (SOEs), manipulation of the global financial markets4, and injecting large amounts of debt into their economy to finance projects such as infrastructure, real estate, and other centrally organized investments.  Considering the Chinese economy’s current non-financial sector debt is 254 percent of its’ GDP (U.S. ratio is roughly 1 to 1), the Chinese economy may be excessively searching for economic growth.  Some macroeconomists believe China may be living beyond their means by financing investments like the “One Belt, One Road Initiative” and other infrastructure expansions with excessive amounts debt.6  As a result of these initiatives, people in China have more money in their pockets than ever before in history, which has led to unprecedented levels of consumption.

 

 

These examples pose the question of whether or not Confucian fundamentals like the dao (the morally upright way) and traditional Chinese views towards the pursuit of profit are still relevant in a modern era, or if these values are being shelved for the time being, in pursuit of economic development, progress, and the pursuit of modernization.

 

 

Confucianism and the pursuit of wealth in a changing China.

Although Confucianism, which is often considered the foundation of philosophical thought and development for China, there has always been disagreement on how these values should be implemented.  We see in the Zhou and Han dynasties that Confucius is unclear on his views towards the individual’s pursuit of profits.  Historians Sima Qian and Ban Gu try to clarify but do so in criticism of each other.  In modern history, Mao, Deng, and Xi all agree that the unification of China and a strong central power is important to the leadership of China.  However, there is disagreement on how the country should pursue economic and consumption growth.  It is evident that these discussions are as relevant today as they were 2,000 years ago and are worth our efforts trying to understand.

 

 

Looking forward, based on the literature and individuals we have examined, Xi’s political and economic philosophies include characteristics from a wide range of sources, including Confucius, Deng and Mao.  Although there is no doubt China’s leadership over the past century has used many traditional Chinese ideas in developing their modern ideology, the current economic policies pursued by the Communist Party of China are likely more in line with Sima Qian and Deng Xiaoping’s style of open markets and less similar to Ban Gu or Mao Zedong.  In this way, from an economic perspective, China has gradually strayed away from a pure Confucian philosophy.  However, the ideas of centralization of power and the unity of China still remain.

 

 

To conclude, a well-rounded perspective on the connection between Confucianism and the pursuit of wealth in a changing China helps one better analyze and understand recent developments in China.  Furthermore, these understandings will give readers a more comprehensive perspective on recent developments such as China’s response to the Covid-19 pandemic, the recent rise of stock market prices in China despite the lingering economic effects of Covid-19 and slowing economic growth.  The truth as to what extent traditional Confucian virtues should be prioritized over the pursuit of economic growth and profit is unknown, but the answer will likely reside in the health of the Chinese economy and the longevity of the Chinese Communist Party in the coming years.

 

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By Jackson Venjohn, Chinainsight.info

 

Chinese Investment in Myanmar: a perspec...

Chinese Investment in Myanmar: a perspective.

Myanmar’s pushback against China, which is trying to widen its influence through the China Myanmar Economic Corridor (CMEC), among other issues has been influenced by Pakistan’s experience in China Pakistan Economic Corridor (CPEC) and Sri Lanka's Hambantota Port project. Myanmar’s all-powerful generals have drawn lessons from these experiences and highlighted reservations against the Chinese investment.

 

 

The CPEC model, which has led to Pakistan’s structural dependence on China, is now being felt in the CMEC, according to an opinion piece ‘Rescuing Myanmar From the Chinese Debt Trap’ recently published in Myanmar’s leading English media outlet The Irrawaddy.

 

 

In terms of geography, the Chinese have proposed that the CMEC (part of BRI) would start from China’s pivotal Yunnan province, which shares borders with Myanmar, Laos and Vietnam. From Ruili city on the China-Myanmar border, the corridor would head towards Mandalay, Myanmar’s former royal capital on the banks of the Irrawaddy River in the northern part of the country. From there, it could extend towards the east and west to Yangon New City and the Kyaukphyu Special Economic Zone, in the western Rakhine province. During Chinese President Xi Jinping’s state visit to Myanmar in January, two agreements were signed - establishing the Kyaukphyu Deep Sea Port (KDSP) and setting up the Special Economic Zone (SEZ). By setting up the KDSP, the Chinese are hoping to lower their dependence on the Straits of Malacca, which is China’s main trade artery, linking the Indian and the Pacific oceans: an over-reliance on which leaves China vulnerable to geo-political outside factors.

 

 

The Kyaukphyu Deep Sea Port is also critical for China’s energy security. The port houses an oil and gas pipeline, supplying energy to Yunnan. It is estimated that under an elaborate plan, China is targeting a massive investment of around $100 billion in Myanmar’s economy—a figure is over and above $62 billion funding for CPEC. China has proposed 38 projects under CMEC but Myanmar so far has approved only nine (six are outlined below). Since last year Myanmar has decided that it will only implement the projects that will be mutually beneficial.

 

Looking back at the last three decades, Chinese investment in Myanmar reached its peak during the 2010-2011 fiscal years after President Thein Sein’s government took office. In the 2011-2012 fiscal years, Chinese investment began a rapid decline after the controversial $3.6 billion China-backed Myitsone hydropower project was suspended amid public outcry over the dam’s social and environmental impacts. Myanmar continues to suspend the construction of Myitsone Dam. The dam is one of seven hydropower projects planned for the upper reaches of the Irrawaddy River as well as the Mali and N’Mai rivers, at whose confluence the Irrawaddy begins.

 

 

It is certain that China will remain to be a decisive economic influence for Myanmar which is also a potentially crucial partner in its BRI and other economic plans. In terms of foreign investment figures, China is now Myanmar’s largest investor as well as biggest trade partner.

 

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Source: The Irriawaddy, The Economic Times.

China How To: Design a website for China

China How To: Design a website for China

Given the capital and time-intensive process of establishing a physical office in China, online channels are a popular option for international retailers and especially SME’s to reach Chinese     consumers. E-commerce platforms such as Tmall are a popular entry point for international consumer brands to test market demand, develop brand penetration and outsource operations, including online payment and customer delivery. Listing on a Chinese e-commerce platform offers   enormous market potential for overseas brands. Meanwhile, given that low barriers to entry (in comparison to offline retail) and growing competition, brand trust  and reputation are  becoming  increasingly more important than country of origin in determining long-term success. Chinese consumers pay a considerable amount of attention to product quality, safety and brand reputation.  As a result, new customers typically crosscheck and browse multiple touch points before buying a   product or service. Popular touch points include online forums, social media channels, online   question and answer platforms, family and friends, and of course the brands’ official website.

 

 

Having a company website optimized for China is a vital touch point to build trust and improve   online and offline conversions. As Chinese customers are thousands of miles away from your production facilities or offices, having a China-friendly website is one way to validate that your business is legitimate and to communicate your brands credentials. Remember it’s not uncommon for potential clients to want to visit your offices, simply to check you really exist and have a business licence.

 

 

What is a China-ready website?

 

A China-ready website is a dedicated online portal with localized content for Chinese consumers to access information about your business or brand. Your China website should ideally be a stand-alone   website with a China (.cn) domain name, integrated with  at least one Chinese social media account   and hosted on a China-based hosting server (or Hong Kong server is you don’t have a legal presence in China) for optimal performance. At China Web Designers, we can arrange the optimal set up to get your business or brand in front of your potential clients.

 

 Can I just add a few pages translated into Chinese to my current website?

 

This is an alternative option and works as a quick fix from a content perspective.  However you will run into a series of compatibility and design issues. Firstly, many foreign website use technology that is simply incompatible with China, namely the Google API.  Secondly, websites which are integrated with Facebook, Instagram, YouTube, Google Fonts etc. will experience delayed load speed as these elements are inaccessible in China. This can have an adverse effect on the user experience and aesthetics of your website. Thirdly, your website load speed in China will be delayed if your website is hosted outside of China, and especially if hosted outside of Asia. Finally, website design fundamentals differ widely between western and Chinese websites: clean minimalistic design, is not the norm, Chinese users expect very detailed orientated websites, focusing on content. Take a look at what we did for London Designer Outlets as an example of this:  

 

 

Website platforms.

 

Popular international website building platforms such as Wordpress, Drupal, WooCommerce, are all accessible in China. However if you want to use a website builder such as WIX with integrated web hosting, you will run into trouble. These days, Wordpress and WooCommerce are the two best   international options to create an expandable China business or e-commerce site. Strikingly has a   strong emphasis on mobile design and offers the option of integrated China hosting. Wordpress can also be used as a website builder but hosted on a third-party web hosting platform in China.   Magento, Strikingly and Wordpress are our suggested platforms for building an e-commerce integrated website. However, for all of these you will need to ensure that you disable the Google API. English Heritage and SAM Labs China are a couple of examples of optimised Wordpress sites for China.

 

                             

 

Website design

 

Website design priorities are somewhat different when catering to a Chinese audience. Chinese   corporate websites tend to veer from minimalistic website design found in the West, and instead  focus on content-heavy designs, as well as vibrant colours with traditional significance and Flash  promotional banners. We at China Web Designers, generally try to find a middle ground, focusing on content but maintaining Western design principles. James Cropper Paper is a site we particularly like for this, also Brand Energies.

 

 

Chinese consumers tend to trust corporate websites based on the depth and authority of the content provided rather than on navigational and aesthetic design. As an international business your main focus should be building a website that    communicates your brand credentials and values to potential customers.  Important features to highlight via text, images and video include your business registration, compliance certificates, awards, government relationships, customer testimonies, strategic partners and memberships of industry-based organizations.

 

Translations

When translating content into Chinese characters it is important that you use a quality translation service to translate and localize your content. Machine translations are simply not good enough yet to provide fluid and colloquial/formal texts. 

 

Localising your website design and content for a Chinese audience may seem daunting and time-consuming, but it all adds up to a competitive edge over rival brands in China. As mentioned,     Chinese consumers are extremely street-smart  and detail orientated when it comes to brand and company research, skipping corners on your online presence can cost your company potential   business. In order to build trust and generate enquiries from your website, it pays to employ a professional service provider to assist with design, content editing, translations, social media integration and SEO optimization.

 

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By Saurav Bhattacharyya

Managing Director, China Web Designers.

contact@chinawebdesigners.com

3 Trees Group, an Olympic Sponsor

3 Trees Group, an Olympic Sponsor

Sankeshu Paint will serve as the official exclusive paint supplier of the Beijing 2022 Olympic and Paralympic Winter Games. Established in 2003 Sankeshu is part of the Three Trees Group.

 

 

Chairman and President of Three Trees Hong Jie, says his company's mission of “making homes healthier and cities more beautiful” connects with Beijing 2022’s concept of “delivering a green Olympic Winter Games”. Sankeshu becomes the seventh official exclusive supplier for Beijing 2022. We have a look at company below:

 

 

SKSHU Paint Co., Ltd. (“3TREES”) has been committed to building healthy homes by providing an integrated 6-in-1 one-stop system of green construction materials and services, encompassing interior and exterior wall coatings, waterproofing products, insulation materials, auxiliary materials, floor coatings and construction. 3TREES went public on the A-share Main Board of Shanghai Stock Exchange in 2016, being the first national paint company that issued stocks. The brand value was worth 23.985 billion yuan in 2019 and became a coating enterprise among the "Top 500 Private Enterprises in China". Headquartered in Putian, Fujian Province, has a center in Shanghai and has or is constructing 9 production bases in Sichuan, Henan, Tianjin, Anhui, Hebei, Guangdong, Hubei and other places, 3TREES is now an enterprise group with 20 wholly owned or controlling companies.

 

 

Company Snapshot for SKSHU Paint Co., Ltd.

  • EMPLOYEES (All Sites): 3,899
  • ASSETS (MIL USD): 807
  • REVENUE (MIL USD): 848.84
  • TICKER SYMBOL: 603737
  • FISCAL YEAR END: DEC
  • SALES GROWTH %: 66.64%
  • NET INCOME GROWTH: 82.55%
  • ADDRESS: 518 Liyuan North Avenue Licheng District Putian, 351100. China

 

 

Key Company personel

  • Jie Hong, Chairperson
  • Dedian Lin, Director
  • Guoqin Fang, Director
  • Lizhong Lin, Director

 

 

Its international website is found at https://www.3treespaint.com and China website at https://www.skshu.com.cn

As one of the top 30 paint manufacturing enterprises in the world, the company heavily promotes its  ecological culture, green brand and healthy products from a modern eco-friendly plant.

Who is funding the China Start Ups?

Who is funding the China Start Ups?

In 2019, 8 internet giants newly invested in over 400 startups in China and overseas. They have become more conservative about investing in B2C & startups since 2018. They eye on the next blue ocean market, i.e. B2B business.

 



Baidu - invested mainly on enterprise services, and medical & health
Alibaba - invested mainly on enterprise services, finance, IT, and media & entertainment
Tencent - invested mainly on enterprise services, finance, transport, and media & entertainment
Xiaomi - IT, and lifestyle services

 

The very detailed full reprort is avaialble from the Fung Business Intelligence website here:  https://lnkd.in/grkRuy9

Tesla Gigafactory Shanghai set to produc...

Tesla Gigafactory Shanghai set to produce 100,000 units in 2020.

It appears that Tesla’s expansion into the Chinese EV market is maintaining its momentum, with data from the China Association of Automobile Manufacturers (CPCA) revealing that the American electric car maker has sold 11,041 vehicles last month. Such numbers allowed Tesla to become China’s leading electric car maker in July 2020.

 

 

Local reports indicate that the majority of Tesla’s July sales in China were comprised of Made-in-China Model 3, which were produced at Gigafactory Shanghai. This is quite encouraging, as it shows that the locally-produced all-electric sedan is starting to get embraced by the mainstream market. If Tesla could maintain this pace, the company could be a familiar sight in the local market even before it ramps the Made-in-China Model Y, a vehicle that would likely outsell the Model 3.

 

 

Tesla has so far exhibited strength in China this year, with its vehicle sales maintaining a healthy level despite the effects of the coronavirus pandemic. Reports also indicate that the production of the Model 3 in Gigafactory Shanghai continues to get optimized, with speculations pointing to a production rate of more than 4,000 vehicles per week. This milestone was reportedly achieved by the facility’s Phase 1 zone with only two working shifts.

 

 

As China pushes for electrification, industry watcher and researcher @DKurac noted that the country’s New Energy Vehicle sales estimate for the year remains unchanged at about 1.1 million units for 2020, a 10% decline year-over-year. Yet interestingly enough, the China Association of Automobile Manufacturers (CAAM) has also noted that Tesla sales for 2020 are estimated at about 100,000 vehicles. Such a feat would be impressive for Tesla, especially since consumer deliveries for the Model 3 only started this January.

 

 

Tesla’s push into the Chinese EV market is now hitting its stride, and this is represented by the rapid buildout of the Model Y factory in the Phase 2 area of the Gigafactory Shanghai complex. Over the past months, workers have been pushing to complete the new facility as quickly as possible, and so far, great progress has been made. Recent drone flyovers of the Gigafactory Shanghai complex show that the Model Y factory’s exterior is all but completed, and work is now focused on equipping the facility with production equipment.

 

 

If Tesla continues this pace, it would not be surprising to see the Made-in-China Model Y entering trial production later this year. This could pave the way for a serious production ramp of the all-electric crossover by the first quarter of next year, allowing Tesla to extend its reach into the country even further. The Model Y is a crossover, after all, and it competes in the highly-lucrative and popular crossover market.

 

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By Simon Alvares for Teslarati

Tianwen-1 launches for Mars.

Tianwen-1 launches for Mars.

China’s Tianwen-1 Mars mission launched successfully Thursday, initiating a phase of deep space and interplanetary exploration. A Long March 5 rocket launched the Tianwen-1 orbiter and rover from Wenchang Satellite Launch Center at 12:41 a.m. Eastern. Successful Trans-Mars injection was confirmed around 40 minutes later by the China Aerospace Science and Technology Corporation.

The flight path took the Long March 5 over the Philippines and close to the capital Manila. Spent stages were planned to drop into the surrounding seas. China’s Yuanwang-class tracking ships assisted launch operations, along with support from the European Space Agency’s ESTRACK facilities. First acquisition of the spacecraft as it separated from its Long March 5 launcher was expected to be made by the 15-meter antenna in Kourou, French Guiana. The roughly five metric ton wet mass spacecraft is now on a seven-month journey to the Red Planet. 

 

 

“The Tianwen-1 mission is a major landmark project in the process of building China’s aerospace power , and a milestone project for China’s aerospace to go further and deeper into space,” mission deputy commander Wu Yansheng said in a CASC statement.

Tianwen-1 is due to arrive at Mars in February 2021, entering a highly elliptical orbit. The spacecraft will then move to a near-polar orbit with a periapsis of 265 kilometers for 2-3 months before the rover landing attempt. The orbiter and rover together carry 13 science payloads for a range of detections of the Martian atmosphere, magnetosphere, surface, subsurface and climate.Tianwen-1 is China’s first independent interplanetary mission. Missions to near-Earth objects, a Mars sample return, possible Voyager-like probes and a Jupiter system orbiter are planned for the decade ahead. 

 

 

Delayed landing attempt

The delay will allow the orbiter to survey the candidate landing sites with its cameras and provide the lander with the data required to make its landing attempt. China has selected a portion of Utopia Planitia, south of Viking 2, as the landing area for the 240-kilogram rover. The selection was made based on science goals and engineering constraints, which include low elevation to provide more atmosphere and time to slow the lander’s descent as well as the solar power needs of the rover. The landing ellipsis will be 100 by 20 kilometres.

The early part of the lander’s entry and descent will be aided by aeroshell and parachute know-how from the Shenzhou human spaceflight missions. A blunt-body aeroshell will help slow the speed of the entry vehicle from around 4.8 kilometers per second to 460 meters per second over the course of 290 seconds. A disk-band-gap supersonic parachute will then further slow the craft to a speed of 95 meters per second over the next minute and a half. Retropropulsion systems from China’s lunar landers will then do the rest of the work. Technologies proven on the Chang’e-3 and -4 missions China sent to the moon in 2013 and 2019, respectively, will provide altimetry and hazard avoidance.

 

 

Tianwen-1 Science goals

The orbiter carries seven science payloads including medium- and high-resolution cameras, the latter comparable to HiRise on NASA’s 2005 Mars Reconnaissance Orbiter mission. It also carries a magnetometer, a sounding radar and instruments for atmospheric and ionosphere detections. The orbiter, which will also perform a relay function, is designed to operate for one Mars year, or 687 Earth days.

The rover, designed to last 90 Mars days, carries six instruments, including a laser-induced breakdown spectroscopy experiment similar to that carried by NASA’s Curiosity rover for detecting surface elements, minerals and rock types. As well as topography and multispectral imagers, the vehicle has payloads related to climate and magnetic field detections. The rover also carries a ground-penetrating radar. Elena Pettinelli of Roma Tre University, Italy, who was involved in the ground-penetrating radar experiments on the Chang’e-3 and -4 rovers, says the instruments on orbiter and rover could potentially provide a lot of new information.

 

 

Into deep space

Tianwen-1 is designated as the first in a new series of interplanetary and deep space exploration. The missions build upon on China’s Chang’e lunar exploration exploits and plans. Next is the tentatively named ZhengHe mission, which aims to collect samples from near-Earth asteroid 2016HO3/469219 Kamo’oalewa and return these to Earth before heading to main belt comet 133P/Elst-Pizarro. The mission profile requires launch to take place in 2022.

A mission featuring two “Interstellar Heliosphere Probes” is also being pushed. Two launches would use a Jupiter assist to follow up on the discoveries of the Voyagers. In addition, concepts for missions to Jupiter are being studied for launch in 2030, which could complement the studies of the Jovian system by NASA’s Europa Clipper and ESA’s JUICE missions.

 

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Source: By Andrew Jones for Sapce News

Chinese Banks: growing globally.

Chinese Banks: growing globally.

Chinese banks are already huge. Their total assets now surpass those of American and European banks. They are also providing more cross-border credit, the bread and butter of international banks. The sum they lend overseas has grown by 11% a year since 2016. More surprising to outsiders, they are gaining clout in the sophisticated universe of capital markets, too. Last year Chinese banks earned three times more investment-banking fees than all Asian rivals combined (excluding Japan).

 

 

Chinese banks have long been absorbed by their home market, where they have a 98% share, however in recent years Banks have followed their corporate clients, themselves inclined to grow beyond their saturated home market. They finance trade, take local deposits from local subsidiaries and serve their mundane needs, like cash management or foreign exchange.

 

 

They also fund Chinese-built infrastructure in emerging markets. Thanks to huge balance-sheets and inside knowledge of contractors’ history, they often outcompete foreign peers. The Big Four (Bank of China, Industrial and Commercial Bank of China (ICBC), China Construction Bank and Agricultural Bank of China) now have a total of 618 branches outside the mainland. Foreign assets account for 9% of their books. Their footprint differs from that of Western peers: Chinese banks supply two-thirds of all cross-border lending within emerging markets. The Belt and Road Initiative (BRI) has been a huge catalyst for them. Chinese banks have lent nearly $600bn to 820 official BRI projects since 2013, reckons RWR, a consultancy. Unofficial sums are probably bigger.

 

 

Last year regulators cleared the way for full foreign takeovers of local banks. They then allowed outsiders to control wealth-management firms, pension-fund managers and brokers. In April foreign-ownership caps were also removed on securities firms. The world’s A-team of money managers is teaming up with locals or seeding subsidiaries in the hope of grabbing a slice of China’s $45trn financial-services market.

 

 

 

 

Banks of Mainland China

Policy Banks:

Agricultural Development Bank of China

中国农业发展银行

 

China Development Bank

国家开发银行

 

Exim Bank of China

中国进出口银行

 

Asian Infrastructure Investment Bank*     亚洲基础设施投资银行

*Not strictly a  Chinese bank it is multilateral development bank that aims to improve economic and social outcomes in Asia. The bank currently has 103 members and is headquartered in Beijing.

 

 

State Owned Commercial Banks:

Industrial and Commercial Bank of China  

ICBC

中国工商银行

   

China Construction Bank  

CCB

中国建设银行

   

Bank of China

BOC

中国银行

   

Agricultural Bank of China  

ABC

中国农业银行

   

Bank of Communications

BoCom

交通银行

 

 

Postal Savings Bank of China

PSBC

中国邮政储蓄银行

   

 

 

Commercial Banks:

China Merchants Bank

招商银行

 

Shanghai Pudong Development Bank

上海浦东发展银行

 

Industrial Bank

兴业银行

 

China CITIC Bank

中信银行

 

China Minsheng Bank

中国民生银行

 

China Everbright Bank

中国光大银行

 

Ping An Bank

平安银行

 

Huaxia Bank

华夏银行

 

China Guangfa Bank

广发银行

 

China Zheshang Bank

浙商银行

 

China Bohai Bank

渤海银行

 

Hengfeng Bank / Evergrowing Bank

恒丰银行

 

 

 

Internet & Private Banks:

WeBank (Shenzhen) - The first private bank and Internet bank in China, initiated by Tencent.

MYbank (Hangzhou) - Internet bank in China, established by ANT Financial Services Group.

Shanghai Huarui Bank

Wenzhou Minshang Bank

Liaoning Zhenxing Bank

 

 

China’s Relations with Saudi Arabia:...

China’s Relations with Saudi Arabia: Economic & Strategic

Saudi Arabia did not recognise the PRC in 1949 and maintained diplomatic and trade relations with Taiwan (Republic of China [ROC]). Relations started to improve during the 1980s due to economic reforms in China which emphasised the modernisation and industrialisation of China and required China to look for new sources of energy, turning its attention to the Persian Gulf including Saudi Arabia. Diplomatic relations between Saudi Arabia and China were established in July 1990 and within the next decades grew into a strategic friendship in 2008 and a comprehensive strategic partnership in 2016.

 

 

Economic & Political Ties

China sees Saudi Arabia as the largest economy in the Arab world which is a reliable large-volume oil supplier since its position is stable and not subject to international isolation and sanctions like Iran. Saudi Arabia is perceived as a reliable political partner now supporting the One China policy. China also values Saudi political support for the Chinese fight against East Turkestan Islamic Movement (ETIM) terrorism in Xinjiang due to the Saudi religious legitimacy among the global Muslim community. Changes in mutual perception have been intensified by increased cultural cooperation since the 1990s. These include tourism, student exchanges, and cultural cooperation within the BRI framework such as the people-to-people exchanges within the Saudi–Chinese Youth Forum. Political and diplomatic relations intensified after 9/11, when both countries joined the US war on terror, and after the “Arab Spring” which both China and Saudi Arabia opposed on principle, with Saudi Arabia fearing instability in the Gulf and China fearing the rise of Muslim extremism in Xinjiang province.

 

 

Trade

Saudi Arabia exports mostly oil and natural gas, petrochemicals, raw materials, and minerals to China. The latest report published by the Saudi General Authority for Statistics in February 2019 indicates that China is the top country for non-oil exports for Saudi Arabia as well as the top partner country for Saudi imports.  As a part of the BRI, Saudi companies are also investing in the north-western Hui Muslim provinces in China. China’s exports to Saudi Arabia focus mostly on machinery, infrastructure, construction industry, information technology, car industry, banking, telecommunication, and health services. In 2015, there were 158 Chinese companies established in the Saudi market and about 20,000 Chinese expats living in Saudi Arabia.

 

 

Chinese investments in Saudi Arabia as a part of the BRI include construction projects, infrastructure building, investments in joint research, and training facilities in telecommunications. The most significant projects implemented by Chinese companies in Saudi Arabia included the agreement concluded in 2009 to construct the Mecca Light Metro (MLM) by the China Railroad Construction Company. The MLM was put into operation in only sixteen months, providing a significant ease of transport for millions of Muslims joining the 2011 hajj. The project became a major success in the Muslim world and its cultural contribution to Sino–Saudi cooperation thus clearly exceeded its economic value.

 

 

Oil plays a special role in Sino–Saudi mutual relations. In March 2019, the Saudi oil exports to China surpassed those of Russia (since in 2014 it has supplied 16 per cent of China’s oil imports). China pays special attention to the comprehensive strategic development of its Saudi energy relations, focusing on Chinese investments in refineries in Saudi Arabia, Saudi investments in oil facilities in China, and Chinese participation in geological surveys in Saudi Arabia. Cooperation and joint investments between the Chinese state-owned Sinopec company and the Saudi oil company Aramco include joint exploration of natural gas in Section B in the Rub Alkhali Basin since 2004. Chinese investments in Saudi Arabia include development of the Ghawar oil field and the Yanbu joint refinery project of Aramco and Sinopec at the Red Sea launched in 2012. This project is of special importance for China given the regional instability in the Gulf as it enables it to export oil from Saudi Arabia’s west coast, without having to pass through the contested Strait of Hormuz, thus avoiding the local tensions between Saudi Arabia and Iran.

 

 

Energy cooperation also includes Chinese assistance to the Saudi nuclear programme. China should help Saudis to build nuclear reactors based on the Sino–Saudi agreement from 2016: the first should be functioning by 2022 and fifteen more by 2032. Although their purpose is officially peaceful with the aim to provide an alternative source of energy to oil, they also have political importance in hedging against the Iranian nuclear programme.

 

 

China’s Persian Gulf Economic Diplomacy

Although China seeks to hedge its economic bets in the Persian Gulf, it is becoming much more difficult for China to balance its relationship with Iran and its partnership with Saudi Arabia. It is clear that Iran and Saudi Arabia are both competing for Chinese support in their regional aims. Trade data published by the World Bank and the United Nations Conference on Trade and Development show that in 2017 total Chinese exports to Iran and Saudi Arabia were almost at the same level, USD 18.58 billion and USD 18.38 billion, respectively. Although imports from Saudi Arabia were higher than those from Iran, USD 31.76 billion versus USD 18.55 billion respectively (WITS, 2019a) In terms of oil, Saudi Arabia is the more significant supplier since in 2014 it supplied 16 per cent of China’s oil imports compared to Iran’s 9 per cent (EIA, 2015), which accounts for much of the higher level of Chinese imports from Saudi Arabia.

 

 

Outlook

China has every reason to hedge its bets in case its oil imports from one supplier or the other are impeded. Such an eventuality could easily arise from further intensification of the mid-2019 tensions in the Strait of Hormuz, which included several seizures by Iran of foreign oil tankers. The September 2019 drone attacks which cut Saudi oil output by half and temporarily reduced the global oil supply by 5 per cent thus demonstrate the need for China to ensure diversification in its suppliers and to maintain good relations with Iran as well as Saudi Arabia. Hence China is forced to continue with its strategic hedging policy in the Persian Gulf as it strives to implement the regional connectivity and national economic security goals of the BRI. By seeking to acquire more influence with Iran and Saudi Arabia and build up its economic interests in the Persian Gulf, China is steadily eroding US regional hegemony. Of crucial importance are the implementation of the BRI and the attainment of China’s comprehensive national security goals, including continued levels of energy imports from Iran and Saudi Arabia.

 

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Source: This article was originally part of a longer article from the Journal of Current Chinese Affairs: China’s “Belt and Road” Economic Diplomacy in the Persian Gulf: Strategic Hedging amidst Saudi–Iranian Regional Rivalry

How the internet is changing rural China...

How the internet is changing rural China.

The development of the internet as an information super-highway can be compared to the impact of road building in past times. National road networks allowed people to travel to see friends, do business and receive supplies. They were accessible to all who could reach them, if in different ways. Today, they offer a form of conspicuous consumption, where those fortunate to have a luxury automobile can whisk along in style, yet the humble ox cart, the bicycle and even walkers could make use of those roads.

 

 

In a similar way, the internet, with ever-faster speeds, can be used by those sporting the latest, lightest laptop and 5G folding tablets as well as by those with a basic smartphone or access to a computer in a library. What matters is that the infrastructure exists to bring internet connectivity to all parts of the country. Thus, people living in poor and remote parts of the country have access to markets, to a means of earning a living and to goods and services. Advanced technology companies have been crucial in interacting with the internet, providing previously unavailable opportunities through their e-commerce platforms and distribution networks.

 

 

These technology opportunities include potential drone deliveries and 3D printing of items. Alibaba, the biggest e-commerce company in China, has seen rural e-commerce develop rapidly in recent years, as exemplified by the sharp increase in the number of "Taobao Villages", mostly concentrated in moderately developed provinces with a track record of high levels of private entrepreneurship.

 

 

Increasingly, e-commerce is paying greater attention to rural areas. This is a strong model as income generated from activities in rural areas, with products shipped to urban areas, in turn enables access to goods that were previously beyond local incomes or difficult to obtain. As an example, the Chinese online food delivery and ticketing service provider Meituan Dianping has leveraged its platform to work with local governments, farmers, produce suppliers and restaurants to buy highland barley from the Tibetan Plateau and then turn it into food that gets promoted online. The internet has started to level up not just earning opportunities and access to goods, but also access to education, training and healthcare online. Rural and lower income urban areas have struggled for easy access to schools and medical clinics, but online courses are increasingly available and medical information and consultations can be provided virtually.

 

 

The online rural population in 2019 was estimated at 225 million, representing over 25 percent of all netizens in China. Over 700 million people in China enjoy watching livestreams or short videos on apps like TikTok, with a rising number tuning in to watch people living rustic and culturally fascinating lives in China's lower-tier towns and cities. Some rural participants have become online stars, livestreaming stories and videos as well as even comfortably selling rural produce online, a practice known as "daihuo" or "sneaking goods", one supported by the additional infrastructure of regional distribution centers and delivery services. Xinjiang Uyghur autonomous region is a good example of using e-commerce to boost the local economy, with farmers introducing their cotton, walnut and rice products to the rest of China.

 

 

The Chinese government is continuing to play a key role. President Xi has formally encouraged online services to have an increasing impact on reducing poverty and unequal access. "Broadband China" and "Internet Plus" are initiatives launched by the authorities in recent years. The role out of the 5G network is the latest opportunity for strong and reliable connectivity.

 

 

There are further plans, released jointly by the Office of the Central Cyberspace Affairs Commission and the National Development and Reform Commission, to extend the role of the internet and big data in poverty reduction. Twenty-one major tasks have been identified, including the expansion of internet access, piloting more e-commerce projects in rural areas, expanding internet-based healthcare and even encouraging more internet companies to take part directly in poverty alleviation efforts. The government has instructed local officials to construct numerous signal towers and lay miles of fiber-optic cables in an effort to ensure 99 percent of rural areas have internet access by the end of 2020.

 

 

As of October 2019, more than 98 percent of China's administrative villages had been connected with fiber-optic networks and 4G networks, and 99 percent of the impoverished villages had been linked with broadband internet services. The internet has clearly not only boosted the sales of agricultural products, but also profoundly changed the lives of poor people.

 

 

To provide quality online education to children, in 2018, the Chinese government announced a boost to internet speeds in all rural schools. As an example, there are more than a thousand rural schools in Gansu province that have less than five enrolled students. Thanks to high-bandwidth internet technology, almost all classrooms in remote parts of China's countryside are now connected and accessing supplementary learning.

 

 

The internet is not just directly reducing rural poverty. It is also helping to create jobs for hundreds of thousands across China by enabling the growth of mega businesses like Alibaba and Tencent. In addition, the China Academy of Information and Communications Technology (CAICT) estimates that 5G will create more than 8 million jobs by 2030. Thus, the whole economy is boosted, making it possible to devote extra resources to rural development. This trend will continue.

 

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Source: Colin Speakman, economist and an international educator with CAPA

China How To: Accounting.

China How To: Accounting.

Accounting Standards

The accountancy standards for companies were put into effect by the Ministry of Finances (MOF). China established its first complete standards specific to accountancy in 1997 and the MOF promulgated an additional 13 standards more specific to accountancy since then.

Chinese Accounting Standards for Business Enterprises (ASBEs) are mandatory for listed Chinese enterprises. Other Chinese enterprises are encouraged to apply the ASBEs, which are substantially in line with IFRS, except for certain modifications that reflect China’s circumstances and environment. China is committed to converge with IFRS.

 

Foreign Invested Enterprises (FIE) may prepare financial statements in accordance with other accounting standards or in other languages for global consolidation purposes. However, the Chinese authorities will only recognise and accept accounts in Chinese that are prepared based on Chinese accounting standards.


 

Accounting Regulation Bodies

Ministry of Finance
CASC
CICPA

 

Accounting Reports

Audit reports normally contain a paragraph defining the 'task' or 'scope' and a paragraph of opinion. The paragraph of opinion aims to establish if the accounts were prepared according to the appropriate rules/regulations and any reservations in opinion must be elaborated above.

Statements of financial accounts or reports should comprise a balance sheet, profit and loss accounts, a report of gross self-financing margin, notes on the accounts and an account for appropriation of profits and losses.

For more information consult the website of China Accounting operating under the Ministry of Finance.

 

Publication Requirements

Annual publication

 

Professional Accountancy Bodies

CICPA , Chinese Institute of Chartered Accountants website

 

Certification and Auditing

Chinese law requires representative offices and foreign-invested enterprises to utilise the services of accountants registered in China to prepare official submissions of annual financial statements and other specified financial documents. Only Chinese accountants and joint venture accounting firms may provide these services. Companies must seek a statutory auditor to conduct an annual audit of the financial health of their organisation. To find an auditor, contact the National Audit Office of China (CNAO).

 

 

What is the Ice Silk Road? The China...

What is the Ice Silk Road? The China perspective

Russia and China are becoming closer strategic partners, and the Arctic is gradually becoming an area where the two sides can potentially carry out their long-term cooperation. In 2017 Chinese and Russian leaders jointly proposed the "Ice Silk Road (ISR)," with an aim to promote cooperation and development in the Arctic within the context of China's Belt and Road Initiative (BRI).

 

China considers the Arctic a shorter and safer route connecting the Chinese mainland with Europe, it’s white paper on its Arctic policy states that the BRI should provide opportunities for parties interested in creating the Arctic Silk Road, sustainable economic and social development of the Arctic.

 

The ISR is an open initiative that abandons classical geopolitical thinking and advocates cooperation and a Chinese win-win perspective. Against the backdrop of geopolitical conflicts in the Arctic and bottlenecks in regional governance and cooperation, the ISR and the cooperation of countries under this framework are the highlight of current Arctic cooperation and represent a new direction for future Arctic governance and cooperation.

 

 

China's Policies and Positions on Participating in Arctic Affairs

1. Deepening the exploration and understanding of the Arctic

2. Protecting the eco-environment of the Arctic and addressing climate chang

3. Utilizing Arctic Resources in a Lawful and Rational Manner

4. Participating Actively in Arctic governance and international cooperation

5. Promoting peace and stability in the Arctic Conclusion

 

 

The Chinese vision of the Ice Silk Road involves the development of scientific, trade and economic cooperation with all Arctic countries in different directions. However, while developing cooperation with various Arctic countries on joint research and development of the Arctic, China is giving priority to Russia. In the foreseeable future, the main stimulus for the development of the "Ice Road" in this part of the Arctic will be economic projects in the North of Russia. The main regional project, whose fate is closely connected with the development of the ISR, is the development of the fuel and energy wealth of the Yamal Peninsula.

 

 

Ice Silk Road (ISR) projects include:

 

China-Russia Yamal LNG

Partners: China, Russia, France

Status: Production commenced December 2017

 

The world's largest liquefied natural gas (LNG) project, this is China and Russia's first joint Ice Silk Road (ISR) venture. Partners in the project include Russia's Novatek, the China National Petroleum Corporation (CNPC), French firm Total, and China's Silk Road Fund. Together, CNPC and the Silk Road Fund hold a 30-percent stake.

 

 

Payakha oilfield

Partners: China, Russia

Status: Deal signed

 

In June 2019, the China National Chemical Engineering Group and Russian firm Neftegazholding signed a deal on developing the Payakha oilfield, promising investment of USD5 billion over four years.

 

This is Russia and China's second Ice Silk Road (ISR) energy project after Yamal. Payakha lies on the Taymyr peninsula in the region of Krasnoyarsk. According to reports, the project includes the construction of six crude oil processing facilities, a crude oil port capable of handling 50 million tonnes a year, 410 kilometres of pressurized oil pipelines, a 750-megawatt power station and an oil storage facility.

 

 

Zarubino port

Partners: China, Russia

Status: Deal signed, progressing

 

Located just southwest of Vladivostok and close to the Chinese border, the port of Zarubino is ice free year-round. In 2014, the government of Jilin province, the China Merchants Group and Russia's largest port operator signed a framework deal to develop Zarubino into the biggest port in northeast Asia over 18 years, with capacity to handle 60 million tonnes of goods a year. Railways linking the port with inland regions of China will also be built.

 

In September 2018, as the first stage of this project, a shipping route started running from Hunchun on the Tumen river in Jilin to Zarubino and then on to Zhoushan in Zhejiang province. The new Zarubino port will strengthen links between northeast China and the rest of the world, and aid development in Russia's far east. It will also be a key link on the northeast passage trade route to Europe.

 

 

Arkhangelsk deepwater port

Partners: China, Russia

Status: Planning

 

Arkhangelsk is the largest city on Russia's northern coast, situated on the country's European side close to Finland. The new deepwater port has been planned for over a decade. It will be located 55 kilometres from Arkhangelsk on the island of Mud'yug, which lies in the Dvina river delta close to existing port infrastructure. Linking up with Russia's railway network, the port will help develop a combined sea-land transportation system, and improve links to Siberia.

 

The local government predicts the new port and associated railways will create 40,000 jobs in the region. According to one expert, the China Poly Group signed an agreement of intent in 2016, earmarking investment of 550 million yuan (USD79 million). The China Ocean Shipping Company has also made its interest in the project clear.

 

 

China-Finland Arctic Monitoring and Research Centre

Partners: China, Finland

Status: Deal signed

 

In April 2018, China's Institute of Remote Sensing and Digital Earth signed an agreement with Finland’s Arctic Space Centre to establish a new monitoring and research centre for the polar region. The facility, based in northern Finland's Sodankylä, will collect, process and share satellite data, providing an open international platform to support climate research, environmental monitoring and Arctic navigation.

 

The centre will contribute to China's "Digital Silk Road" plan, which aims to create a spatial information system for regions covered by the BRI. It will also promote the Chinese Academy of Sciences' "Global Three Poles Environment" project, which aims to better understand global climate change.

 

The project was inaugurated in October 2018.

 

 

China-Iceland Arctic Science Observatory

Partners: China, Iceland

Status: Operating since late 2018

 

In October 2018, the China-Iceland Arctic Science Observatory was officially opened in the city of Karholl in northern Iceland.

 

Set up to monitor climate and environmental change in the Arctic, the observatory is managed by the Polar Research Institute of China and Iceland's Institute of Research Centres. It can accommodate 15 people and will also be open to researchers from third countries.

 

The partnership started in 2012 when the two governments signed a deal on Arctic cooperation. That year also saw a memorandum of understanding signed between organisations from the two countries on a joint aurora observatory. Plans were expanded in 2017, with work at the observatory now covering the atmosphere, the oceans, glaciers, geophysics, remote sensing and biology.

Chinese shipping firms handle LNG cargos bound for China. In July 2018, seven months after operations started, the first shipment of LNG from Yamal arrived in Jiangsu province's Nantong. A second phase of the project is now being constructed on the Gydan peninsula, to the east of Yamal, and due to begin operating in 2023.

 

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Source; Xinhua Silk Road Information Service

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