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looking beyond borders

foreign policy and global economy

Archive for the tag “Shenzhen”

A Tale Of Two Cities: Shenzhen Vs Hong Kong

Photo by Frame Harirak on Unsplash

Forty years ago Shenzhen was a rural backwater with a population of 20,000, boasting very little industry or agriculture. Communist Beijing was happy to keep it that way for fear its proximity to the freewheeling capitalist colony of Hong Kong made it a security threat. But after Deng Xiaoping’s reforms the town developed rapidly and is arguably surpassing Hong Kong as China’s leading city for industry and technology.

Read Here – South China Morning Post

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The Silk Railroad of China-Europe Trade

Multinationals operating in China have been setting up factories deep in the interior in search of affordable labor. The drawback: These plants can be more than a thousand kilometers (621 miles) from the coast. For companies exporting to Europe—still one of the largest markets for Chinese goods—shipping by air from Chongqing or other inland cities is too expensive. Trucking or carrying goods by train to the ports of Shanghai or Shenzhen’s Yantian and then shipping them to Western Europe can take 40 days.

Read Here – Businessweek

The Real U.S. – China Problem

As 2012 draws to a close, two imminent issues hang over the world economy. The better known one is the so called fiscal cliff, which could result in simultaneous reductions in government spending and increases in taxes in the United States. The second lesser reported issue is the ongoing clash between the U.S. Securities & Exchange Commission (SEC) and the China Securities Regulatory Commission (CSRC), with the Chinese affiliates of the “Big 4” auditing firms PricewaterhouseCoopers (PwC), Deloitte, Ernst &Young (E&Y) and KPMG trapped in the middle, along with their clients.  While some suggest that Chinese firms should no longer bother trading on tightly regulated U.S. markets, the problem is actually much deeper, with similar cases pending in Hong Kong, and the overall implications painting a picture that investors in Shanghai and Shenzhen should be wary of too.

 

Read Here – The Diplomat

 

Channeling Deng Xiaoping

With his trip to Shenzhen and other places in southern China, Xi Jinping, the new leader of China’s Communist Party, has all but declared himself to be a reformer in the vein of Deng Xiaoping.

Chinese politics is always full of signs, symbols, and suggestions.  After a year characterized by a confusing mix of “signs of reform” and “signs that reformists are losing,” it is easy to wonder if these signs are real or just Rorschach Tests for China analysts? Xi Jinping’s weekend visit to Shenzhen is the first one in a long time for which the answer is absolutely clear: This is the real deal.

 

Read Here – The Diplomat

 

Congressional Report on Huawei Smacks of Protectionism

The House Intelligence Committee report on Huawei Technologies Co. and ZTE Corp., China‘s two largest phone-equipment makers, breathlessly hints at a massive national security breach in the making. The committee report, out today, says Chinese intelligence services could spy on the U.S. by using the two companies’ equipment to tamper with American telecoms networks.

The companies, based in Shenzhen, China, failed to cooperate with a yearlong investigation, the report says, or to explain their U.S. business interests and relationships with the Chinese government. Therefore, they can’t be trusted and should be barred from merging with or acquiring U.S. companies or getting U.S. contracts.

Read Here – Bloomberg

Chinese Companies and Foreign Policy Headaches For Nations: Huawei Cries Foul, Says U.S. Barriers To Harm Ties Between Two Nations

A paper published by China‘s biggest telecommunications equipment maker said the company’s path into the United States had been blocked by unsubstantiated “allegations based on allegations” that threatened to harm ties between the world’s two biggest economies. The complaint published by Huawei Technologies Co – topped by a reference to McCarthy-era Red Scare witch-hunting – was spelled out on the eve of the company’s scheduled testimony Thursday at a rare public hearing of the U.S. House of Representatives‘ Intelligence Committee. The committee is completing a nearly year-long investigation of security threats allegedly posed by equipment sold by Shenzhen, China-based Huawei, as well as ZTE Corp, a smaller cross-town rival also frustrated by challenges entering the U.S. market.

Read Here – Reuters

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