Miscellaneous News

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Just some miscellaneous news snippets, all of which are intriguing in its own right. I posted them because they have some profound or interesting implications (i.e. hints). Please take time to read them over.

China becomes the new Silicon Valley

China Daily, June 7, 2010



While hiring in Silicon Valley is projected to surge for the remainder of the year, companies are finding competition for talent from across the Pacific in China. As the Chinese tech industry continues to grow in areas such as Internet communications and content sharing, increasing numbers of industry professionals are considering a move east.

During a recent visit to San Francisco, Dr Kai Fu Lee, the former head of Google China, urged venture capitalists and financiers to make increased investments in China's entrepreneurial technology sector.

"The amazing opportunity in China is its people... engineers who are amazing developers, winners of any world programming championships. Yet these great people and talent who want to start their own companies need a lot of help... It's very hard to get early stage funding," said Lee, speaking specifically to the venture capital community who were essential to building the start-up technology ecosystem in Silicon Valley. Lee left Google China late last year to start Innovation Works, an incubator aimed at nurturing the next generation of Chinese entrepreneurs.

Because of the large pool of engineers who command average market salaries that are one tenth those of Silicon Valley's, companies are often able to hire skilled technical workers at a fraction of the cost. However, the greatest demand that still remains in the talent market is for experienced product managers who can take ideas and products to market.

"In China, there tend to be many of technically strong people but not necessarily the type of people with both a strong technical and market sense," said Larry Wang, who runs Wang & Li Asia Resources, a China-recruitment firm.

According to Wang's estimates, 45 percent of recent openings are in the technology sector, with a heavy focus on IT services. While the current growth is driven in large part by China-focused companies such as Youku and Ganji that emulate existing services developed primarily in Silicon Valley, industry watchers such as Wang predict that future trends will show more Chinese companies expanding into overseas markets.

Silicon Valley engineers such as Yifan Cao have also taken note of this shift, drawn by both the country's opportunities and changing environment. When the mechanical engineer began looking for a job again last year, he decided to look beyond the San Francisco Bay Area and flew to China in search of new opportunities.

"For me, it wasn't that I couldn't find a job in the US. It was more the result of a combination of 'I really wanted to try something new' and the mentality that even if it doesn't work out, it would be an experience that most people don't have," said Cao. Today, Cao heads the US market expansion efforts for a Chinese-based solar company out of South San Francisco.

"China is the new Silicon Valley. It used to be that one year in Internet time was two to three years at another company. Now the saying is that one year in China is worth two or three years in US time," said Wang.

While most are optimistic about the long-term potential of the Chinese technology sector, many also warn of the challenges, particularly in the short term. "The biggest challenge (for entrepreneurs) is that the government has a lot of regulations that you have to learn and make sure that your company is subject to," said Season Xu, a co-founder at 5minutes, the second China-based social gaming developer to secure venture capital-backed funding.

"For example, there were no regulations for the social gaming sector when we first started. Today, one of the requirements is that you have to have 10 million yuan in registered capital. It raises the barriers to entry for everyone," said Xu.

Regulatory challenges, especially in currency, are also among the biggest concerns for venture capitalists. Lee hopes that Innovation Works will help bridge that gap, providing early-stage entrepreneurs with the guidance and resources to take their ideas to market, and venture capitalists with a steady pipeline of startups.

 

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Japan's new PM paying a visit to China so early?! Is this a subtle way of paying respects to the new boss...

Japan's Kan due in China this weekend



China Daily, June 7, 2010




Japan's incoming Prime Minister Naoto Kan is set to visit China on his first overseas trip, Japanese media reported on Sunday.

Naoto Kan speaks after he was elected as the chief of Democratic Party of Japan in Tokyo, capital of Japan, June 4, 2010. Kan became Japan's new prime minister after being approved by the Diet on Friday. [Ji Chunpeng/Xinhua]

Naoto Kan speaks after he was elected as the chief of Democratic Party of Japan in Tokyo, capital of Japan, June 4, 2010. Kan became Japan's new prime minister after being approved by the Diet on Friday. [Ji Chunpeng/Xinhua]

Kan also plans to name a top businessman as ambassador to China, "one of the highest posts for diplomats", reports said.

Commentators say the arrangements underscore the importance Kan attaches to China, as he has said Tokyo-Beijing ties would be "valued" during his administration.

Kan will visit Shanghai on Saturday to celebrate Japan Day at the ongoing World Expo there, the People's Daily reported from Tokyo, quoting local media.

The trip was actually arranged before former Japanese prime minister Yukio Hatoyama's sudden resignation last week.

Apart from stopping in Shanghai, Kan may also visit Beijing to meet with President Hu Jintao. But the Chinese Foreign Ministry could not be reached for confirmation. The Xinhua News Agency quoted sources as saying that China has got no official message yet from Japan on Kan's China visit.

On Thursday, Kan said the Japan-US relationship would remain the core of Tokyo's foreign policy but that ties with China would also be valued.

"I think that Japan's diplomacy is founded on Japan-US relations, (but) at the same time, Japan is in East Asia and we are seeing a historic development in Asia," Kan said. "Japan needs to go in the direction of building a trusting relationship with the US while placing particular importance on China. I think that is the correct way for Japan's future."

Besides visiting China on his first overseas trip, Kan is expected to officially appoint Uichiro Niwa, senior corporate adviser at trading house Itochu Corp., as the Chinese ambassador this summer, the Nikkei Daily reported.

Kan has long argued that private citizens should be tapped to serve as ambassadors, the Nikkei said. The appointment is expected to strengthen private-sector ties with China, one of the world's largest markets, the report said.

The decision also reflects the effort by Kan's ruling Democratic Party of Japan to wrest power from the hands of bureaucrats and redistribute it to politicians, the Nikkei said.

 

[SinoIndusFriendship]

Aniki is paying a visit.

Making a Spring for Japan

Shanghai Daily, June 7, 2010



Spring Airlines, China's first budget carrier, plans to launch its maiden international route to Japan by the end of July.

The private carrier is scheduled to fly three chartered weekly A320 flights between Shanghai and Ibaraki Airport, about 80 kilometers from Tokyo, according to an agreement signed by the Spring Airlines and the Ibaraki government yesterday.

In China, only appointed tourism groups and agencies can book tickets for chartered flights. Spring Airlines also intends to operate regular flights after the World Expo, which will allow individuals to buy tickets.

"In Japan, a small number of chartered flight tickets is open to individuals, so we are likely to sell 10 percent to 20 percent of tickets to individuals in that country initially," said Wang Zhenghua, the airline's chairman.

Under Japan's visa policy from July, Chinese tourists will no longer need to have an annual income of 250,000 yuan (US$36,610), which is set to boost travel demand to the country.

While glowing confidence, why not?!

Growing confidence in Shanghai market

China Daily, June 7, 2010


The thinking and behavior of investors gives shape to the bottom of the market and its recovery. Markets react more quickly to economic developments because they efficiently aggregate the changing emotions of millions of investors. Fundamental data and economic reports rely on less efficient data collection methods and the result is a delayed understanding of changing market conditions. Markets, and market behavior, are leading indicators of changes in the economy.

This market leadership is shown in the developing behavior of the Shanghai Index after the rapid fall from 3,000. As the market loses value it encourages particular types of behavior from investors as they see an increase in value and opportunity as prices fall. These end-of-trend behaviors manifest themselves in price activity as a small group of repeated patterns. Behaviors repeat and so market patterns also repeat and this gives smart investors a leading signal for the best time to re-enter the market.

The Shanghai Index is developing a classic breakout consolidation pattern with four features. The first feature is the weak relative strength index (RSI) divergence pattern. This is a delayed signal because the low in the RSI occurred two weeks after the low in the index. This suggests traders need to use caution.

The second feature is the breakout from the downtrend line. This strong breakout did not develop good momentum. A small resistance level developed near 2,680 and it is a reference point for future trend development. A move above 2,680 is confirmation of strength in the new uptrend.

The third feature is the use of the downtrend line as a new support area. The fall from 3,000 used the trend line as a resistance area. After the breakout above this line and the retreat from 2,680 the trend line acts as a support level. The market slides lower until it hits a long-term horizontal historical support area.

Often the previous low of the trend provides a support area for the successful trend rebound. This is a double-bottom style trend reversal pattern. A double-bottom rebound develops when the current market retreat rebounds from near 2,481. This has a reduced probability because 2,481 is not an historical support area. The next strong historical support area for the Shanghai Index is near 2,300. This increases the probability the market will continue to slide down the downtrend line towards the 2,300 level. There is a strong probability the market will temporarily dip towards the historical support at 2,300 and then rapidly rebound. This dip could develop as a one-day fall or rebound, or a three-day pattern. The key features confirming the temporary nature of this dip are the reduction in volume as the market falls and the increase in buying volume as the index rebounds. A rapid dip below the 2,481 level does not invalidate the development of the consolidation pattern between 2,481 and 2,680.

The consolidation pattern is a very bullish development because it lays the foundation for the stronger sustainable trend rebound above 2,680. The market pattern shows investors are developing renewed buying confidence in the Shanghai market.

The author is a well-known international financial technical analysis expert.

 

[SinoIndusFriendship]

The worlds' Intellectual PowerHouse is getting even stronger!!!

China aims to increase talent pool

China Daily, June 7, 2010



China has vowed to increase its talent pool from 114 million to 180 million by 2020, with spending on human resources accounting for up to 15 percent of the country's gross domestic product (GDP).
Nation aims to increase talent pool

Job seekers look at a board containing recruitment listings at the 2010 job fair for graduates in Hangzhou, East China's Zhejiang province, June 5, 2010. [China Daily]


The pledge was included in the National Outline for Medium- and Long-Term Talent Development (2010-2020) released on Sunday.

According to the outline, "talent" refers to those with certain professional knowledge or special skills, who are able to do "creative" work and make a contribution to society.

The outline, a leading document for reform of the country's human resources and development over the next 10 years, addresses issues ranging from the evaluation and management of talent, skilled personnel in rural regions and professional social workers in communities to returned overseas Chinese.

The outline also specified the key fields that should be prioritized to promote a more reasonable structure of talent.

By 2020, more than 5 million talented individuals will be urgently needed in equipment manufacturing, information technology, biotechnology, new materials, aeronautics and astronautics, oceanography, finance and accounting, international business, environmental protection, energy resources, agriculture technology, and modern traffic and transportation.

In the coming 10 years, more than 7 million professionals will be needed in the fields of education, political science and law, medicine and health, publicity and cultural information, as well as disaster prevention.

The country's human resources structure needs more education-conscious talent, with 20 percent of the labor force receiving higher education, the outline said.

Every 10,000 people in the labor force should include 43 professionals working on research and development (R&D), it said. Insiders said earlier that the country's spending on R&D is currently 1.62 percent of its GDP and that figure will increase to 2.5 percent in 2020.

In 2020, the country will complete its transition from a labor-intensive nation to one that is driven by talent, President Hu Jintao said at a national talent work conference on May 26.

"Talent is the most important resource and it is a key issue that concerns the development of the Party and country," Hu said.

The country will cultivate around 100 strategic entrepreneurs to head the top 500 corporations in 2020, with the number of those who work for State-owned enterprises hitting 40,000, according to the outline.

Authorities are introducing more measures to attract overseas Chinese talent to return to the country with a series of favorable policies.

The country will also carry out more open policies to attract overseas talent, Premier Wen Jiabao said at the meeting on May 26.

"We will increase spending on talent projects and launch a series of initiatives to offer talent-favorable policies in households, medical care and the education of children," he said.

More than 600 people have already signed up with the Thousand Talents Program, which seeks to attract overseas Chinese and foreign academics working at the world's best institutions or as entrepreneurs.

Timing has played a crucial part in facilitating the country's recruitment plan. Since the nation's reform and opening up in 1978, millions of Chinese students have flocked overseas for further education.

About 1.06 million Chinese studied overseas between 1978 and 2006, more than 70 percent of whom chose not to return home, according to a report on the Development of Chinese Talent published by the Chinese Academy of Social Sciences in 2006.

Many said the number of Chinese-born professionals living in Europe and the United States has grown to such an extent that the government has a massive talent pool from which to draw to reverse the country's brain drain.

 

[SinoIndusFriendship]

Never ever trust a slimmy jew.... Apple's Steve Jobs finds more ways to EXPLOIT Chinese workers!

Foxconn workers downbeat about wage hike

China.org.cn, June 7, 2010



Foxconn workers are showing little enthusiasm for a wage increase announced by the company last Wednesday.

The troubled electronics giant, where 10 workers have committed suicide since the start of the year, has increased salaries by 30 percent. The move will raise basic monthly wages to between 1,150 yuan (US$168) and 1,200 yuan (US$176), from the previous 900 yuan (US$132) to 950 yuan (US$139).

But workers are not impressed.

A 20-year-old worker at Foxconn's Longhua plant in Shenzhen told China.org.cn that few of his colleagues are celebrating the salary hike.

"They were indifferent to news of the rise. They think they will have to work as hard as before anyhow," he said. "At the moment, it seems like my colleagues are not interested in anything. They don't show any emotion. They just come to work and go home."

Another worker at the plant said that he and his colleagues were suspicious of the raise. They say Foxconn is intensifying their work to boost productivity and claw back the increase.

"Our daily output quota has been increased. Previously we had to press 3,500 computer casings every shift. Now the quota has been increased to 3,750 for the day shift, and 3,900 for night shift," he said. "And we have heard rumors the quota is likely to be raised even further in the future."

He said many workers are still planning to quit Foxconn despite news of the wage increase.

Foxconn's wages are barely in line with the legal minimum standards in Shenzhen, which range from 900 to 1000 yuan per month depending on location.

And Shenzhen is planning to raise its minimum wage to 1,100 next month anyhow. So the Foxconn increase is simply keeping in step with the legal standards set by the local government.

Dai Jianzhong, of the Beijing Academy of Social Sciences, said the wage rise offered by the company is nowhere near enough. "Foxconn should raise their basic salaries by 50 percent. They should also cut monthly overtime to less than 36 hours, as stipulated in China's Labor Law," he said.

 

[SinoIndusFriendship]

But never fear! Chinese INNOVATION & HARD-WORK comes to the rescue!

Suntech invests to lift output capacity

Shanghai Daily, June 7, 2010




Suntech Power Holdings Co Ltd, China's largest solar panel maker, plans to invest 2.68 billion yuan (US$393 million) to add 1 gigawatts in additional production capacity in Shanghai over the next three years as it rushes to meet surging demand, Chairman Zhengrong Shi said.

Despite an expected cut in German solar power subsidies in July that analysts warn will dampen third-quarter demand, Shi told a briefing for reporters over the weekend that returns for power producers in that market would still be attractive while other markets such as the United States were growing rapidly.

"We're all sold out for this year. We're short of capacity and can't meet our clients' needs," he said.

"We have a backlog in the second quarter. We have a backlog in the third quarter. We haven't seen any impact from the reduction in German subsidies."

He predicted that Germany, the biggest market for solar cells, would record a 70 percent to 80 percent full-year growth this year.

The US market would double in size in the second half of the year from the first half, reaching 1 GW for the full year, he added.

The first phase of the company's new Shanghai plant, with 180 megawatts of production capacity, would be completed at the end of June, he said.

This puts Suntech on course to reach its total production capacity target for this year of 1.4 GW, after reaching 1.2 GW at the end of the first quarter, Shi added.