Tag Archives: China

Chinese President Xi to Visit US Later this Year

China, , , ,
"Leon Panetta and Xi Jinping in Beijing, Sept. 19, 2012" by DoD photo by Erin A. Kirk-Cuomo
“Leon Panetta and Xi Jinping in Beijing, Sept. 19, 2012” by DoD photo by Erin A. Kirk-Cuomo  Licensed under Public Domain via Wikimedia Commons

In what will be Chinese President Xi Jinping’s first official visit to the US as president, plans are now underway to invite him for a state visit later this year. It is expected that President Xi will push for a “new model of major-country relations,” an idea Xi first introduced during his 2012 visit to Washington.

The visit is also being planned during a time of a strong American Asia-Pacific military presence whose goal is to contain he military power of the communist country. The visit is being planned with the help of China’s ambassador to the United States, Cui Tiankai.

No date for the visit has yet been determined, but discussions are now underway, according to Cui, who also pointed out that high-level meetings have been going on successfully in recent years, despite the many differences in each country’s outlooks.

“We are also very willing to see such interactions continuing this year, and we may even have a greater success,” Cui said.

The future meeting will not be the first meeting between Xi and President Obama. They leaders met after the informal summit in California in June 2013. They also met informally at the Asia-Pacific Economic Cooperation meetings in Beijing this past November.

Although no date has been fixed, US National Security Adviser Susan Rice said that the US had officially invited President Xi for a state visit to be held later this year.

What Does Alibaba’s Entrance on the NYSE Mean for US Businesses?

Companies, , , , ,
Good News for Small Business? Wait and See
Good News for Small Business? Wait and See

Investors can celebrate now that the Chinese enormous e-commerce business Alibaba has brought billions to several mega-wealthy players. Friday’s IPO of Alibaba reaped a wildly huge amount of money for its owner and founder Jack Ma to the tune of $18 billion. Several other well-placed personages, including Japan’s richest man, Masayoshi Son woke up on Saturday quite a bit richer. And the US-based Yahoo also saw a nice profit from its stake in Alibaba. What about the little guy? How have smaller US businesses been impacted by this historic Wall Street event?

Jack Ma says Alibaba’s success will bring success to regular businessmen.

“At Alibaba, we fight for the little guy, the small businessmen and women and their customers,” CEO Jack Ma said. “Our proposition is simple: we want to help small businesses grow by solving their problems through Internet technology.”

Is this really true? CEO Michael Tudor of Ripen eCommerce, a consulting firm for online retailers, agrees with Ma. Tudor says that Alibaba will help businesses “establish themselves in the Chinese market.”

NABE Survey Sees Trouble Looming in China

Economy, , , , ,
China economy boom or bust?
China economy boom or bust?

According to a new survey conducted by the National Association for Business Economics, a bit beyond half of US business economists believe that China marching towards a serious debt crisis in the next few years.

When asked whether they agreed that “China will face a debt crisis within the next few years,” 52 percent said yes, 25 percent said no, and 23 percent were undecided.

“The biggest concern that has been in discussion is the housing boom and bust in China,” said Jack Kleinhenz, NABE’s president and chief economist at the National Retail Federation. “I think it’s just an overexpansion like we’ve seen in other housing bubbles that have occurred, here in the United States and elsewhere.”

Problems brewing in the Chinese economy include a weakening housing market, expanding debt on the local government level, and a squeezing of supervision of shadow-banking services.

Not all agree with US economists however. Changyong Rhee of the International Monetary Fund said in April that he does not see a full-blown financial crisis for China on the horizon. Kleinhenz added that even if there were a housing bust in China it “shouldn’t have an impact globally” like the housing crisis in the US did. That housing crash helped ignite the 2008 global financial crisis.

The NABE survey was given to 47 member of NABE and was conducted from May 8-21. The economists were also asked about European economics. The vast majority, 84 percent, said that they believe the problems facing Russia and Ukraine “will hinder the economic recovery in Europe.” Whether the crisis will impact the US, however, only 34 percent think it will.

China Car Company Opening Head Office in Texas

Automobile Industry, , , ,

 

All-Terrain Vehicle Maker Hisun Moving Headquarters to Texas
All-Terrain Vehicle Maker Hisun Moving Headquarters to Texas

Hisun Motors Corporation, China-based manufacturer of utility-terrain and all-terrain vehicles, announced it will be opening a new North American headquarters in McKinney, Texas. It is expected that eventually 80 corporate workers will be employed there.

Hisun plans to move into the building recently acquired by the McKinney Economic Development Corporation from Emerson Process Management Regulator Technologies.  Emerson moved its regional headquarters in September to a $25 million facility also in McKinney.

Mayor of McKinney, Brian Loughmiller said that the city has had several economic wins which is a result of the city’s efforts to recruit international business.

Jim Wehmeier, president and CEO of the McKinney Economic Development Corporation, said that Hisun will fit perfectly into the McKinney business culture.

“They are a rapidly growing international company that is well respected both in the United States and abroad and we look forward to a long and successful business relationship with them,” Wehmeier said, in a written statement. “McKinney will continue to look for more opportunities to grow and support Hisun as economic development is a central component to our city’s strategic plan.”

Toys “R” Us Struggling to Play the Competition Game

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Toys R Us Posted Net Losses in 2013
Toys R Us Posted Net Losses in 2013

As the economy struggled in its continuing bid at recovery, Toys “R” Us took a lot of the brunt as sales plummeted in 2013. The giant toy store chain reported a net loss of $210 million during the fourth quarter of 2013 and a total loss of $1 billion for the year. The losses were blamed on fierce competition from on-line sellers such as Amazon, and discount department stores like Wal-Mart.

Earnings for 2012 totaled $239 million, accentuating the challenges of last year’s marketplace.

The private held retailer posted a decrease in same-store sales of 4.1 percent in the US and 2.2 percent internationally during the fourth quarter of 2013. Those figures are an important indicator of a retailer’s overall health, and they included the crucial holiday season.

“It was a challenging year, with declines in both our domestic and international segments,” CEO Antonio Urcelay said in a statement to investors.

“The U.S. business experienced the more significant downturn, primarily due to a decrease in net sales, margin pressure and one-time items, including the write-down of excess and obsolete inventory as we take the necessary and prudent steps to improve the business.”

Toys “R” Us did have a good year in China, however. As the Chinese economy continues to expand and more people are climbing the affluence ladder, there is more disposable income available to spend on children’s playthings.

So far this year things are looking up a bit for Toys “R” Us here at home. So far there has been a 3.5 percent increase in same-store sales in the US due to an increase in entertainment related toys connected to beloved movie franchises. Net sales for all of 2013 totaled $12.5 billion. That is $1 billion less, or 7.4 percent, from 2012.