THE BEIJING AXIS has just published a new publication entitled The China Compass - July 2009, A Country in Figures.

The product of an extended period of research and refinement, The China Compass offers a concise yet reasonably comprehensive high-level picture of China's position and direction in the context of the world's economic landscape. While in essence intended for international executives with a China agenda, The China Compass is available for anyone interested in China and its ongoing integration with the world economy.

The China Compass sets out the elements of China's most basic country data and history, before moving on to a broad assessment of China's macroeconomic, trade, investment, financial and social indicators, followed by a comparative section assessing China's economic outlook in an international context.

I invite all our readers to download this free publication as we are content to have The China Compass make its full contribution in enhancing our understanding of (as is written in the foreword of the publication) the past development and future prospects of an engrossing, ongoing and unique Chinese story of human development.

To download this free publication, please go to the Knowledge section of the new TBA website, where a range of other THE BEIJING AXIS publications have also been collected together in one place.

As always, we welcome your feedback, and trust that The China Compass will add value of knowledge and insight to our readers.  

IMPE China - The 5th China International Metal Working Technology & Equipment Exhibition

Venue:         Binhai International Convention & Exhibition Center, Tianjin
Date:            18 - 20 Aug 09
Organizer:    Zhenwei Group Tianjin Zhenwei Exhibition Co., Ltd.
Tel:              +86 22 6622 4078 / 1512

Briefing:
IMPE China will exhibit a wide variety of products ranging from all kinds of metal cutting machine tools and metal forming machines to non-traditional machines and special purpose machines. 1,800 booths with an exhibition space of 35,000sqm will be featured at the event.

More information.

China Auto Supplies Sourcing Fair 2009 (CSAE Fair 2009)

Venue:         Shanghai Everbright Convention & Exhibition Center, Shanghai
Date:            17 - 19 Aug 09
Organizer:    China Auto Fitting Industry Federation, et al
Tel:              +86 21 5152 7671

Briefing:
As one of the leading auto aftermarking industry exhibitions in China, CSAE 2009 will feature nearly 500 booths with an exhibition space of over 20,000sqm. The fair will display a wide range of local and global brands for auto care products, auto interior & exterior, auto electronics & appliances and auto customization. The event is intended to provide a platform for domestic and overseas enterprises to establish and maintain business relationships.

More information.

In early July, Sinosure, China’s only officially-supported insurance company specializing in credit and investment insurance, issued operational data for H1 2009. From Jan to Jun 2009, the total short-term insured export credit was USD24.21 billion, with a growth of 31.5%.

At the end of May, the Chinese government formulated a series of measures to improve export credit insurance regulation. The measures included enhancing export credit insurance application coverage, arranging USD84 billion for export credit insurance, reducing premium written rates, etc.

Improving export credit insurance will help improve exporters’ competitiveness and company strength by supporting them to provide better payment terms, while the other export stimulation measures, such as raising export tax rebates or reducing costs for exporting, particularly emphasize reducing cost. Improving export credit insurance is recognized as a better measure to improve export advantage in the long-term.

One example is when the international photovoltaic industry turned from suppliers’ market to buyers’ market, the buyers required more favorable payment terms, such as payment settled in 90-180 days. Sinosure made adjustments accordingly, and from Jan to Jun 2009, Sinosure insured USD800 million for China’s photovoltaic industry, almost four times the number of 2008.

Because of the global financial crisis, some foreign companies affected by the devaluation of local currency provided better export prices than Chinese suppliers. Faced with strong competition from foreign enterprises, some Chinese companies are working with Sinosure to provide better payment terms and get orders without reducing prices. Export credit insurance also helps Chinese exporters solve financing problems.

(Source: China Insurance News)

I recently accompanied clients to visit a few Chinese mining machinery suppliers. Conversing with these suppliers face to face helped me form a picture of the current work status of these companies, and afforded me a glance at the Chinese mining machinery industry generally. The following are some observations that made an distinct impression on me:

• Less busy

The worldwide financial crisis has inhibited cash flow on expansions and new projects in the mining industry. Almost all the companies I visited experienced order cancellations. Yet Chinese companies have learned to deal with cancelled orders with more a more logical strategy. They are working together with buyers to follow up and maintain good relationships. Nonetheless, these Chinese companies have much fewer orders compared with 2007 and early 2008. I saw 8-10 sets of equipment standing in the open area of one supplier’s factory waiting for collection. The supplier told me that at the same time last year, there was a great deal more equipment in the open area and the yard was full of finished products and trucks that came for collection.

• Innovation

Although the market is at the bottom, the suppliers are all very optimistic and spending more time on R&D. I attended ‘Australia Sino IronФ7.93m×13.6m Ball Mill Factory Test Run & Delivery Ceremony’ hosted by CITIC Heavy Industry. TheФ7.93m×13.6m ball mill is the largest mill manufactured in the world and totally developed and manufactured by CITIC HIC. The other private mining equipment company I visited said they have over 100 engineers working in their R&D department and develop on average 10 new products every year.

• Expanding overseas market

Although I know that the Chinese mining equipment industry is expanding its overseas markets, what I saw and felt during this visit was still very surprising. The companies I visited all have a large international business department with 20-30 people. The people receiving me generally spoke good English, were sensitive to western culture and have accumulated remarkable knowledge and experience in dealing with orders, negotiations and crises with overseas buyers. Some of them have started to actively approach overseas clients by searching on the Internet and sending emails directly, or attending exhibitions.

There is no doubt that the Chinese mining equipment industry still has a long way to go before their manufacturing capability and after-sale service can be recognized internationally, but this objective could be attained much sooner than when many international buyers assume, especially those who never come to China and see these factories for themselves.

3rd China (Qingdao) International Building Energy Saving & Renewable Energy Utilization Fair

Venue:         Qingdao International Conference Center
Date:            16 - 18 Jul 09
Organizer:    Construction Science and Technology Development Promotion Center
Tel:              +86 532 8079 1023

Briefing:
As one of the leading building energy saving industry exhibitions in China, the objective of the fair is to accelerate the utilization of building energy saving and renewable energy products, and to raise awareness of the companies in China and other countries. The fair will exhibit a wide variety of products ranging from Energy-saving & Insulation Materials, Mortar construction products, Additives and equipment, Green and energy-saving lighting products, Water-saving technologies and equipment, Energy Statistical monitoring and Energy saving buildings, and Green Projects.

More information.

The 4th China Shanghai International Meat Industry Exhibition

Venue:         Shanghai Everbright Convention & Exhibition Center
Date:            13 - 15 Jul 09
Organizers:    Shanghai Meat Trade Association, OIC Advertising & Exhibition Co., Ltd., China Food Culture Study
Tel:              +86 21 6460 2848

Briefing:
The event will display the latest industry information and technology as well as the most advanced meat industry products, processing equipment, ingredients and related products. The exhibition is intended to provide a platform for exhibitors at home and abroad to communicate with end-users, distributors and dealers.

More information.