Mercedes-Benz recalls 555 sedans in China for steering defects

Mercedes-Benz will recall about 555 sedans in China for steering defects, China's quality watchdog said here Wednesday.

The front shock absorber of those sedans may fail to operate because of manufacturing flaws and lead to steering problems, according to the General Administration of Quality Supervision, Inspection and Quarantine.

The recall effects vehicles produced before Aug. 15, 2006. Mercedes-Benz dealers would check and replace flawed shock absorbers free of charge, the administration said.

More than 1.84 million vehicles have been recalled in China by 54 foreign and domestic auto makers from 2004 to 2008.

This article is just an example of Chinese regulation and how it is changing along with its progressive economy.

China Business Seminar

Today I spent the day with my dad in Chicago at the KattenMuchin law firm. Several highly respected lawyers and investors from companies such as The Jordan Company, Wells Fargo, Lincoln International, and Navistar International held a seminar about investing in China. Sadly, the seminar was not completely focused on the Chinese economy and its future, but more about doing business with the Chinese. However, it was still interesting to listen to. They all mainly spoke about how its an extremely difficult process to invest in China because their culture is very different from ours. Besides in the bigger cities like Beijing and Shanghai, the Chinese don't yet understand the western business values. This complicates the process if the investor doesn't understand the Chinese values and way of business. Business is extremely personal in China and relationships are key to being a successful international businessman. Because China has a communist government, there are three levels you would have to deal with in order to get involved. The local level, the provincial level, as well as the national level. For example, in Shanghai, in order for Christmas lights to be put on the trees, there are 27 permits you must have. Furthermore, almost every process done in China will be much slower because of all the regulations and the different business style.
Another interesting point that was mentioned is that the Manufacturing Investors are becoming less and less. The people willing to be involved with China are now in the service industries as well. The market is much more open and is rapidly changing to fit western standards. China has come a long way over the past few decades and they will continue to evolve as time passes by.

Regulation Issues - Chinese quality watchdog investigates whether Dumex milk powder contaminated

The Shanghai Municipal Bureau of Quality and Technical Supervision said Wednesday it was investigating whether Dumex, the powdered-milk unit of France's Danone Group, had produced milk powder contaminated with melamine.

The bureau said it followed the order of the General Administration of Quality Supervision, Inspection and Quarantine to investigate the safety of Dumex milk powder that was produced before Sept. 14 last year.

The bureau did not explain why the date was chosen. The bureau declined to give further details on the investigation.

Dumex milk powder was on sale in China on Wednesday.

Overseas media reported last month that 48 Chinese infants "recently" suffered kidney illnesses after drinking Dumex milk powder.

However, Dumex Baby Food Co., Ltd. external affairs director Pu Jiabin told Xinhua on Wednesday said there were no medical reports or other evidence supporting that 48 infants were sickened by Dumex milk powder.

After China's milk scandal was exposed last September, government-certified laboratories conducted spot checks on 2,651 batches of Dumex products made since April 2007, and found none of them was contaminated by melamine, Pu said.

The company official said Dumex had provided the baby milk powder for the Shanghai Municipal Bureau of Quality and Technical Supervision.

Dumex said on its Chinese Web site www.dumex.com.cn that it sold the most baby milk powder on China's market in 2005 and 2006 in terms of sales volume and revenue.

It also said on its Malaysian Web site www.dumex.com.my Wednesday that "the current situation in China has been incorrectly reported and our colleagues there have confirmed that Dumex products manufactured in China have been tested thoroughly by certified official laboratories and were found to contain no melamine."

Melamine contamination of milk powder killed at least six Chinese infants and sickened almost 300,000. More than 300 children were still in hospital at the end of last December, according to the Ministry of Health.

Two people have been sentenced to death for their roles in the contamination, while the ex-chairwoman of Sanlu Group, which was at heart of the scandal, was jailed for life.

http://english.people.com.cn/90001/90778/90857/90860/6591236.html

Response - A World on the Edge

Amy Chua, who wrote the article, "A World on the Edge", brings up many different points as to how Globalization promotes ethnic violence and problems. She tells us that her aunt, who was a very wealthy Filipino Chinese woman, was murdered at the age of 58. She had bank accounts and property, and many other assets that native Filipino's didn't. She was an economically dominant minority. The Chinese believe that somebody who is murdered, is not seen as a lucky person. Being unlucky is extremely shameful among their culture.
The main theory behind the murder was not to get her money or possessions, but revenge. The power Amy Chua's aunt possessed built up a lot of hostility among the other native Filipinos. This, however, is a very common reason for a Chinese Filipino to be targeted.
This murder is just one small example of hatred caused by economic differences. But if you look at the situation in a bigger picture, Globalization has enforced hatred among those who are economically dominant. Obviously, Americans, are currently the main target. Chua seems to think that the relationship between the free-market and ethnic violence has been a result of globalization.

Rising unemployment becomes China's top challenge, economists

A survey conducted by China Economic Monitoring and Analysis Center predicted that rising unemployment would be the biggest challenge for China's economy this year.

The survey showed, more than 90 percent of the 100 economists surveyed expressed their worries over the country's increasing unemployment rate, which had added woes to a world economic downturn.

Chairman and chief executive officer of TX Investment Consulting Co., Lin Yixiang was quoted by China Daily as saying that the survey indicated the government policies should be directed at addressing unemployment.

The government estimates about 20 million rural migrants, or 15.3 percent of all rural workers employed outside their hometowns, have returned home without jobs.

Meanwhile. urban unemployment rate, which excludes migrant workers, was estimated to hit 4.6 percent in 2009, up from 4.2 percent in the fourth quarter of 2008.

The number reflects a harder-than-expected blow from the global financial crisis, Tang Min, deputy secretary of the China Development Research Foundation, was quoted by China Daily as saying.

Worldwide global financial crisis has put the country's economic growth under great pressure. China's economy cooled to its slowest pace in seven years in 2008, expanding 9 percent year-on-year, according to data released by NBS.

The 9-percent rate was the lowest since 2001, when an annual rate of 8.3 percent was recorded, and it was the first time China's GDP growth fell into the single-digit range since 2003.

To cope with this, the government has launched a 4 trillion economic stimulus package last November, in a bid to expend investment in infrastructure and prevent economy from cooling too fast.

As for this, 86 percent of economists said the government should focus its fiscal policy on social spending, including education, medical care and improving the social security system.

Source: Xinhua

http://english.people.com.cn/90001/90776/90884/6587742.html

Chinese Regulation Issues

While China has become one of the more powerful economies over the last few decades, it has been receiving more and more problems with regulation. Will China have to change its regulation policies if they want to continue their progress? Here is an example I found where Chinese women have been dying because of unsafe abortions.

http://english.people.com.cn/90001/90777/90856/6448229.html

This video is just something intersting I saw and shows how fast the population is growing in China which will only lead to more production.

Depending on Chinese leading to global trouble?

http://www.wsws.org/articles/2004/may2004/chin-m05.shtml

Because China is mainly saving country, they have been purchasing others debt to help them out of this current economic mess. This also gives the Chinese more power over the countries that owe them money and soon we will depend on them. Will this lead to global problems?

Globalization hurting other countries

This is a quick response to the article, "How Susie Bayer's T-shirt ended Up on Yusuf Mama's Back". I think that this article really brings up an interesting point on how globalization is hurting poor countries like Uganda. There are two different ways of looking at the situation. People in the United states who buys tons of new clothing every year, due to new styles, often donate their old clothes. These clothes are then shipped off to different countries who need them, or do they? From the article, it says how these second-hand clothes help the Ugandans becasue without them, they would be naked. But, in contrast to this, the second-hand clothes we donate to the countries, hurt their textile industry. Therefore, Ugandans are dressed completely in western clothing. A Ugandan mentions how they have a "used culture". Nothing they own is from their country, all of their possessions are from richer countries who dont want them anymore. This causes the Ugandan culture to fade away. In conclusion, countries are becoming more and more western due to the inevitable rise of capitalism.

Sexy Beijing. Lost in Translation

This video shows what globalization is doing to countries like China. This is the effect of westernization.

Note: I am not trying to make fun the Chinese culture in any way. But this is just an example of how their culture and people are changing due to globalization.

Beijing Puzzle

http://www.economist.com/research/articlesbysubject/displaystory.cfm?subjectid=478048&story_id=12923831

This article goes over the growing surplus China has, despite its falling exports

China in Trouble

The Chinese Economy has had a drastic decrease in imports due to the struggling global economy. They have been thriving on their massive exports, but now that the rest of the world does not have the same purchasing power, China has been taking an major economic downturn. What do they have to do in order to keep their economy growing?

http://www.economist.com/research/articlesbysubject/displaystory.cfm?subjectid=478048&story_id=12932336

The Case Against The West

The Case Against the West
http://www.foreignaffairs.org/20080501faessay87308/kishore-mahbubani/the-case-against-the-west.html
What Have We Learned, If Anything?
http://www.nybooks.com/articles/21311
The Rise of the Rest
http://www.newsweek.com/id/135380

From Mao To Market
Robyn Meredith, 01.07.09, 12:00 AM EST

China has capitalism, but don't expect political reform.

China's leaders have just celebrated the 30 year anniversary of the advent of economic reforms. As the global economy staggers in the quicksand of recession, it is worth pausing to remember just how far China has come in a single generation by embracing capitalism and globalization.
It is also worth remembering
http://www.forbes.com/opinions/2009/01/06/china-capitalist-communist-oped-cx_rm_0107meredith.html

Chinese Economy

The Chinese economy has had the fastest growth in the world for that last few decades. Despite the current economic slump (not just in China), China has kept up an incredible pace. The question is if they will be able to control and have sustainable economic growth. On average since the 1980's, the Chinese economy has grown on average 9.9% every year. What factors contribute to this growth? Will the communist government intervene with China's capitalist intentions? What happens next? All the articals can agree that China is the future center of the economic world, and possible the next super-power. They belive that China has the potiential and when the time comes they will surpass America.