2010 sno.27(total 40)

2010 sno.27(total 40)

CONTENTS Business Information Three-Network Convergence Pilot Project Accelerates Battle for Business Opportunities... 3 20 Chinese Enterprises to be United in Responding to EU Antidumping Investigation... 3 Fortune Global 500: China Mobile Ranks 77th, and Huawei Appears on the List for the First Time... 4 SAP to Cooperate with Chinese Hospitals, Saying that the Hospitals Need Urgent Changes... 4 Alibaba Leads a Team to Fight for Made in China Brand Marketing Battle... 5 Focus Chengdu Providing Advanced Services Opening Up Green Channel for Attracting Talents from Overseas... 6 Chengdu Launches the Accreditation of Advanced Technology-based Service Enterprises... 6 Foxconn will Construct a Plant that can House 100,000 Persons in Chengdu... 7 Application Demonstration of Chengdu s Internet of Things Focuses on Six Fields... 8 18 Companies in Chengdu Attract Venture Capital at DEMOCHINA... 9 2

BUSINESS INFORMATION Chengdu, Absolutely for Outsourcing. Three-Network Convergence Pilot Project Accelerates Battle for Business Opportunities Source: Guangzhou Daily Once the cities where three-network convergence is to be carried out on a trial basis were determined, the business opportunities of trans-boundary convergence between consumer electronic equipment have become the target of the world s electronics giants. The reporter learned on the 7th of this month from the Asia s largest professional consumer electronics show China International Consumer Electronics Show (SINOCES) that one of the highlights of the show, which is to open on the 8th, is that the exhibitors will emphasize showing their new technologies and new products for trans-boundary convergence and the future consumption life style. Internet TV will be available for enjoying the programmes of 1 million channels. The reporter learned from SINOCES that Panasonic will give a general demo of 3D FHD world, and Haier will demonstrate its globally leading full series of Internet of Things home appliances. All the world s consumer electronics giants want to get a share in the trans-boundary business opportunities. Not only are the hardware manufacturers ready to do this, but also Google declared that it will market Internet TV a few days ago. It is learned that the switching between different websites on this kind of TV is as easy as channel-surfing. Search box makes the large-screen television accessed to the Internet contents. 1 million channels can be viewed. It is learned that, driven by technologies such as wireless technology and three-network convergence, electronic products such as computer, mobile phone, and television are realizing trans-boundary interconnection. Data shows that three-network convergence can stimulate the investment and consumption of 688 billion yuan in the next three years. 20 Chinese Enterprises to be United in Responding to EU Antidumping Investigation Source: Shenzhen Economic Daily In recent years, the antidumping and safeguard measures investigation carried out by EU on the data cards made in China has aroused extensive attention of the industry. Yesterday, the reporter learned from China Chamber of Commerce for Import and Export of Machinery and Electronic Products that the Chamber of Commerce has united approximately 20 Chinese enterprises to hold the response meeting to discuss the specific response scheme. It is learned by the National Business Daily that the response meeting on July 5th lasted for more than eight hours. Liu Huijuan, the head of the Legal Service Center of China Chamber of Commerce for Import and Export of Machinery and Electronic Products, told the National Business Daily that the Ministry of Commerce pays complete attention to this issue. Ministry of Commerce, local foreign trade and economic relations commissions, associations, chambers of commerce and more than 20 3

enterprises formed four-body interaction team to jointly respond to anti-dumping investigation carried out by EU. It is learned that this investigation was proposed by Belgian wireless networking equipment manufacturer Option. It is the sole enterprise producing similar products within the EU. Data from Huawei shows that the sales of Huawei data cards to dealers in 2009 were up to 3500 cards. It is reported that market share of Huawei data cards in many European countries exceed 70%. A relevant person with Europe s largest operator, Vodafone, publicly stated that supply of data cards made by Huawei falls short of demand in the European market. One industry insider, who did not want to give his name, pointed out that because of technological superiority and manufacturing cost advantages, price also became a weapon used by Chinese enterprises. During the European debt crisis, foreign manufacturers awareness of protecting their trade rights became stronger than the past, and they tended to use various trade protection measures. Besides Huawei and ZTE, there are two American companies commanding certain shares in the European market. But almost all the products supplied by these two companies are also made in China. European market for WLAN card is almost completely occupied by exports from China. Fortune Global 500: China Mobile Ranks 77th, and Huawei Appears on the List for the First Time Source: CCIDNet <News of July 9th (Beijing Time)> It is reported by foreign media that Global 500 2010 has been announced in American magazine Fortune with Wal-Mart topping the list based on its annual sales of 408.214 billion US dollars. In the same list, China Mobile ranks 77th and Huawei appears on it for the first time. Altogether 54 Chinese enterprises are on the list, out of which China Mobile ranks 77th, with annual sales of 71.749 billion US dollars. China Telecom ranks 204th, with annual sales of 35.557 billion US dollars. Chinese private enterprise, Huawei, appears on the list for the first time this year, ranking 397th, based on with its annual sales of 21.8 billion US dollars. Its retained profits are up to 2.67 billion US dollars. Among them, there are three Chinese enterprises in the top ten; SINOPEC is ranked the highest, ranking 7th. State Grid Corporation of China ranks 8th, and CNPC ranks 10th. SAP to Cooperate with Chinese Hospitals, Saying that the Hospitals Need Urgent Changes Source: IT Times One often needs to wait for registering at a hospital for one or even two hours, and needs to wait for half a day before seeing a doctor. Payment and settlement need even more time. Chinese medical institutions have always been regarded as the fields of fortune of the management software 4

manufacturers. At present, SAP announced that it will cooperate with 100 Chinese hospitals to help them improve their overall operation and promote their process efficiencies. It is learned that among the 100 hospitals, besides large-scale public hospitals, there also include some small and medium size hospitals. Marching into the complex medical field with Chinese characteristics shows SAP s determination of implementing the localization strategy. Vice president of North Asian Region of SAP, Bradley Perkins, told the reporter that SAP has been following up the current situations of 8000 hospitals in Chinese mainland. Most of these hospitals are distributed in the large and medium size cities such as Beijing and Shanghai. An investigation report shows that within the next five years, most of the leading Chinese hospitals will increase their budgets for medical treatment and public health information technology, with a growth rate of above 20%. Facing a series of new difficult problems such as patients higher requirements, aging population requiring more health care services, medical device and drug cost inflation, and demand for qualified medical workers and doctors exceeding supply, it is very urgent to change the hospitals. This undoubtedly provides SAP the best chance for cooperation. Bradley told the reporter that SAP will apply special solutions for medical and health industry to improve the overall operation of hospitals and provide the patients with better medical care work, improve the turnover rate of beds, improve the supply chain and material management, and implement electronic medical recordkeeping system. Alibaba Leads a Team to Fight for Made in China Brand Marketing Battle Source: Chengdu Daily Globally leading e-commerce platform, Alibaba Company, announced yesterday that it would lead the famous domestic small enterprises to fight for Made in China brand marketing battle. All the customers (enterprises) that comply with its conditions can obtain the opportunity to form a group together with Alibaba for promotion at prime-time on CCTV. It is learned that at present the charge for corporate advertising on CCTV is above 1 million yuan. If the advertising is aired at primetime, the cost will get doubled. Therefore, there is no doubt that small enterprises cannot afford it. Head of the China Division of Alibaba said that no small enterprise can realize promotion on CCTV with its own strength. He added that Alibaba would like to integrate their own resources to lead the small enterprises to realize combined promotion of the brands. It is reported that battle of small-enterprise brands launched by Alibaba this year will be integrated at the primetime on CCTV-1 and other network media resources, leading 100 small enterprises to form a group for launching an advertising attack. Previously also Alibaba successfully led approximately 1000 domestic small enterprises to form a group that held a joint promotional event on the stage of the currently hot China Private Corporations Pavilion at the 2010 Shanghai World Expo in China. At present, there are more than 30 million small enterprises in China, but those owning their own brands are less than one fifth of that number. Branding pain is a common challenge faced by small enterprises. 5

FOCUS CHENGDU Providing Advanced Services Opening Up Green Channel for Attracting Talents from Overseas Source: Chengdu Daily On the 8th of this month, the reporter learned from Chengdu Public Security Bureau that during national implementation of 1000-elite Program, Chengdu Public Security Bureau Exit-Entry Administration Department took the lead in introduction of the advanced service measures to support the talent introduction plan of our province. It fits perfectly with the national 211 Project of key colleges and universities in Chengdu, the R&D institutions, and the enterprises for opening up a green channel for their introduction of high-level special talents from overseas. Up until now, four talents from overseas in the 1000-elite Program implemented in Sichuan have obtained their Foreigner s Permanent Residence Cards, generating praises from all parties. Regarding the advanced services, Chengdu Public Security Bureau has arranged an officer-in-charge to specifically understand the situation of each college, university, R&D institution, and enterprise in introduction of talents from overseas. For the talents from overseas expecting to reside in China permanently, an officer-in-charge will actively visit them to introduce them to the required qualifications, conditions, documents, handling procedures, and matters needing attention for foreigners residing in China, making them learn more about all the matters that are relevant to the application. And they will exchange phone numbers with the foreign talents so as to provide them with maximum convenience for working and living in China. Chengdu Launches the Accreditation of Advanced Technology-based Service Enterprises Source: Chengdu Daily The reporter learned from Chengdu Science and Technology Bureau yesterday that selection and accreditation of the first batch of advanced technology-based service enterprises has been launched now in Chengdu. All the technology-based service enterprises engaged in information technology outsourcing (ITO), business process outsourcing (BPO) and knowledge process outsourcing (KPO) can participate in the competition. It is learned that in order to rapidly gather and cultivate a batch of advanced technology-based service enterprises with international competitiveness, the enterprises approved this time will enjoy support through the special preferential tax policy. The reporter also learned that the advanced-technology-based service enterprises applying for accreditation cover those in three fields (ITO, BPO and KPO). ITO includes software development and outsourcing, information technology R&D outsourcing, and information system operation and maintenance outsourcing. BPO includes enterprise business process design service, service for management within enterprises, enterprise operation service, and enterprise supply chain management 6

service. KPO includes intellectual property research, pharmaceutical and biotechnology R&D and test, product technology R&D, industrial design, analytics and data mining, animation and online game design and R&D, education courseware R&D, and engineering design. Yesterday, the relevant person in charge of Chengdu Science and Technology Bureau told the reporter that the enterprises approved this time will enjoy the national and local special supports for developing advanced technology-based services, including those concerning multiple fields such as tax preference, technology project application, and technology finance. Which conditions must be satisfied by an enterprise to be part of the first batch of advanced technology-based service enterprises? It is learned that besides belonging to the group of technology-based service enterprises engaged in ITO, BPO and KPO, the applying enterprise must have over 50% of its employees with collage or above degree. They must have strong capability in R&D. Aggregate income of the enterprise engaged in the advanced technology-based service business in the specified range shall be above 50% of its general income for the current year. Foxconn will Construct a Plant that can House 100,000 Persons in Chengdu Source: Beijing Youth Daily This month, Foxconn Chengdu Company has begun to recruit its first batch of 10,000 workers. As subsidiary of Foxconn Technology Group, Innocom Technology (Chengdu) Co., Ltd. was formally registered and established on June 29th, with a registered capital of 38 million US dollars. Relevant recruitment advertising shows that the pay for panel inspectors and operators currently recruited by Innocom Technology (Chengdu) Co., Ltd. is 1590-2390 yuan per month (excluding overtime wage), with social security. They will work for five days per week and eight hours per day. It is reported that total investment in Foxconn s Chengdu project will be up to 5 billion dollars. After construction, it will employ 100,000 persons. It is the largest investment-promotion project of Sichuan Province and Chengdu City. On May 26th this year, Foxconn s parent company, Hon Hai Precision Industry, signed the strategic alliance agreement with Sichuan provincial government. It marked the beginning of Hon Hai Precision Industry s acceleration towards western China to establish its plant. It is reported by local media that the first batch of 10,000 general workers recruited in Chengdu will firstly go to Shenzhen for 6-9 months on-the-job training, and then return to Chengdu for working. In the mean time, Foxconn Chengdu project will be established and put into operation within 6-9 months.. The project will concentrate on manufacturing of 8.5 generation liquid crystal panel. It is reported that western China has become one of the key areas where Foxconn is relocating its plants. In 2009, Foxconn signed a production base agreement with Chongqing, deciding to invest in the construction of ten industrial projects such as computer manufacturing, and software and service outsourcing. Until now, Foxconn has constructed 20 science and technology industrial parks in China. 7

Application Demonstration of Chengdu s Internet of Things Focuses on Six Fields Source: Chengdu Business Daily Related information will be generated by the scale when pork is weighed, realizing the traceability of the whole process. Real-time monitoring of buses is realized by means of GPS mapping, once a gas leakage happens; the alarm is immediately activated.the other day, General Office of Chengdu Municipal Government printed and distributed Work Program for Demonstrated Application of Chengdu Internet of Things (hereinafter referred to as the Program). According to the Program, during 2010-2012, Chengdu will put emphasis on six fields (i.e. intelligent transportation, food safety, environmental protection, modern logistics, city management, and safety supervision) to carry out the application demonstration and relevant work of the Internet of Things. It is proposed in the Program that the target tasks of application demonstration of the Internet of Things are to actively guide, organize and conduct demonstration of application of the Internet of Application according to the development ideas of making technical breakthrough and synchronous development of industries by means of innovation and application, creating the market space for development of the Internet of Things industries, driving industrial agglomeration, and making efforts to construct the industrial and application basis for Smart Chengdu. During 2010-2012, the technology system, the product system, the service support system, and the management and operation system for application of the Internet of Things are to be explored. Large-scale production capability is to be formed with respect to product manufacturing related to the Internet of Things. The solutions and business models that can be copied and promoted with respect to application service of the Internet of Things are to be formed. Three principles for directing industrial development are also proposed in the Program, namely, vigorous development of industry by application (providing the market opportunity for product manufacturing, software development, system integration, and information services of enterprises dealing with the Internet of Things in Chengdu, guiding the production factors to flow to the high end of Internet of Things industry, and supporting the Internet of Things enterprises to become bigger and stronger, accelerating the industrial development), introduction of intelligent technologies by application (acceleration of technology introduction, digestive absorption and reinvention for the key technologies of application demonstration projects; creation of breakthroughs in industrial generic technologies and core products as soon as possible; realization of autonomous control of technology; and rapid formation of the technological base and characteristics of the Internet of Things industry in Chengdu), and attraction of investment by application (attracting the leading domestic and foreign enterprises engaged in Internet of Things to Chengdu for developing their business and establishing their plants; carrying out demonstration of application in key fields; and accelerating industrial agglomeration of the Internet of Things). 8

18 Companies in Chengdu Attract Venture Capital at DEMOCHINA Source: Daily Economy News Innovative projects are always coveted by the venture firms. Yesterday (8th July), 18 innovation programs titled made in Chengdu were unveiled at the Chengdu sub-site of DEMOCHINA 2010, attracting 15 famous investment organizations and their partners to the site for reference. Yesterday, the reporter learned from the persons in charge of these innovation programs that half of these programs will obtain the investment from relevant venture firms within this year, most of them attracting venture capital for the first time. Most of the 18 innovation programs involve the fields such as high technology, new energy, and mobile internet, including large-size TFTLCD display of Chengdu FSCREEN, 3D game of Chengdu Ideal dimension Technology, and some other relatively mature growing companies such as Hnwon.com and Milanoo.com. It is reported that this is the second time that DDEMOCHINA is held in Chengdu. The judges this time include Ms. Huang Xiaohong (Managing Director of Legend Capital), Mr. Li Quansheng (Managing Partner of DT CAPITAL (Delta Venture Capital Fund)), Mr. Yang Ruirong (Partner of Northern Light Venture Capital), Mr. Zhou Wei (Partner of KPCB China), Mr. Zhu Xiaohu (Partner of GSR Ventures), etc. Investment Department of Qualcomm Ventures, BlueRun Ventures, Matrix Partners China, Alcatel Shanghai Bell, CID, etc. participated in the discussion and election. Although there are less PE and VC organizations in Chengdu when compared with the first-tier cities in eastern coastal areas, the growing enterprises in Chengdu have their own special features and strengths. At present, only in the High-tech zone of Chengdu, three industrial clusters (i.e. electronic information, biomedicine, and precision machinery manufacturing) have been formed. In addition, some other industries such as software development, animation, and the online gaming industry of Chengdu have achieved certain status in China. 9