China Watch Blog

China Watch Blog has learnt that South China’s Guangdong province has announced a set of new policies to support cash-trapped small firms which play a vital role in creating jobs in the country’s largest provincial-level economy.

The new policies, which were published on the provincial government’s official website on Thursday, came as small- and medium-sized enterprises (SMEs) face mounting pressures caused by cooling export growth, rising costs and financing difficulties.

According to the online statement, the government will set up several development funds to build financing service systems for small companies, offer them support for scientific innovation and help them develop markets.

The province will also offer tax breaks and support some small firms to seek financing by becoming listed on the stock market, said the statement.

The statement also promised incentives for banks offering credit to small firms and urged them to establish an credit evaluation system suitable for small- and medium- sized firms.

Guangdong’s announcement came after the State Council said earlier this week that the government will support small companies with a 15 billion-yuan (US$2.4 billion) fund and preferential tax policies.

Small- and medium-sized enterprises create about 80 percent of the country’s jobs, but they usually have difficulty in securing bank loans, as Chinese banks prefer to lend to larger companies, especially state-owned enterprises.

China Watch Blog reports that many as many employees in south China have not returned to work after the nation’s Chinese Lunar New Year holidays, jobs at businesses in Guangdong, ranging from restaurants and toy makers to other manufacturing companies, have gone abegging due to the massive labor shortage.

As of Jan 30, some 3.2 million migrant workers had returned to Guangdong, the China Daily reported, citing sources at the provincial human resources and social security authorities on Thursday.

The authorities had predicted that as many as 9.8 million workers would return after the week-long holiday. By Thursday, only 60 percent of the companies based in the province had resumed business after the festival.

In Foshan, a major manufacturing city in the Pearl River Delta area, a growing number of factories were still affected by the labor shortage, although the overall demand for migrant workers has fallen this year.

The local labor authorities forecast that the city needs 200,000 more workers this year, but at least 85,000 workers have still not returned after the festival.

“Some migrant workers have not returned because they have better job options in their hometowns, which offer wages almost as high as those in the Pearl River Delta,” said Zhang Baoying, director of Guangzhou Human Resources Market Center.

Ma Xiujuan, a migrant worker from Northeast China’s Heilongjiang province, plans to go home to look for a job after visiting a job fair in Guangzhou on Tuesday.

“Most companies here offer a salary of between 2,000 yuan ($317) and 3,000 yuan a month, which is even lower than those offered in my hometown,” she said.

“Factories in the delta area are expected to attract more workers by raising wages,” said Peng Peng, a senior researcher with Guangzhou Academy of Social Sciences.

Sources with the Guangdong human resources and social security authorities said the minimum wage in the province will be raised by 13 percent this year.

“But raising wages is far from enough to keep more workers. Authorities should introduce more measures to improve the welfare of migrant workers and promote equal treatment in education, healthcare and housing,” Peng said.

He mainly attributed the labor shortage in the delta area to sluggish profits and industrial adjustment.

“Many businesses, especially small- and medium-sized companies dare not raise the wages because of rising production costs and slower business growth,” said Peng.

The profits of Chinese industrial companies increased at a slower pace in 2011 as the European debt crisis threatened the nation’s exports, the National Bureau of Statistics (NBS) said on its website on Friday.

Net profits for the year only rose by 25.4 percent year-on-year from 2010 to 5.45 trillion yuan, the NBS said. The growth rate rebounded from 24.4 percent in the first 11 months of last year.

But it marked a gradual downshift from growth of 32 percent year-on-year seen during the first quarter, 28.7 percent during the first half, and 27 percent in the first three quarters.

The authorities have introduced a series of measures to ensure funding for key investment and to boost credit in the economy, especially for small- and medium-sized businesses, to help sustain growth.

China Watch Blog wishes to remind readers that GCTL Insights Magazine Issue#11 & 12 has been published at our website GCTL8.com.

Get your FREE PDF copy now…Just go to our homepage and register for a free email newsletter and once you get the confirmation from our server, you can access our website to download the magazine, that is, if you are not already a member of GCTL8.com.

We are an environmentally friendly company and so we print only limited copies for paid subscribers and distribute hard copies at conferences and exhibition events for promotion purposes.

We have great exclusive stories in this issue including a look at the warehousing situation in China via Gazeley one of the leading warehousing developers in the mainland.

Also we have interviews with HACTL in Hong Kong as well as China Eastern Logistics – a rare interview with the ground handler with some comments from PACTL as well.

China Watch Blog has learnt that Jackie Carpenter never thought she would be an author; mother, businesswoman, volunteer, yes – but not author – and especially one whose book would be made into a movie! But in 2008 that all changed when she was faced with an event no parent should have to go through – a tragedy so devastating she wasn’t sure she would be able to survive it.

Jackie wrote The Bridge: Between Cell Block A and a Miracle is Psalm 91 (Xulon Publishing) to tell the story of how drastically her life changed the day her son apprehended thieves who had repeatedly been stealing copper from his work site. On the advice of a deputy, he was armed and trying to keep the men on the premises until the police arrived when the gun accidentally fired, killing one of the men.

Up to this point, Jackie’s life had been picture perfect – a wonderful husband, good health, two married sons and four beautiful grandchildren. But the day she received a frantic call from her son’s wife telling her he had been arrested for felony murder, the bottom fell out of her world. In addition, her son faced four other serious charges and the deputy recanted the advice he had given him.

Jackie had clung to Psalm 91 throughout the trial, praying to God every day for a miracle. She had even defied advice from her son’s attorney suggesting she not bring her Bible to the courtroom ‘lest she offend a juror.’ Knowing that God was the only one who could grant her a miracle, there was no way she would chance offending Him, so that Bible was with her every day of her ten-month journey through Hell to that glorious day in April 2009 when Jackie heard the jury’s verdict of ‘not guilty!’

While The Bridge tells the powerful story of a mother’s love and how she bridged the gap between Cell Block A and a miracle, the sequel Georgia Justice: A Story To Faith, tells the heart-rending story of the fear she felt when she realized her faith did not even begin to measure up to where it needed to be when tragedy struck. It is a powerful testimony to the spiritual strength this small-town girl found in the promises of Psalm 91 and what she did to build up her faith during the agonizing time that led up to her son’s trial. It is a book that Jackie hopes will be a resource for anyone facing a crisis in their life.

Jackie’s dramatic story is being made into a motion picture that will begin production next month. Georgia Justice (by the producers of Courageous) starring Francine Locke, is scheduled to be released in the fall and depicts Jackie’s terrifying journey from the day her son was arrested to the day of his acquittal, and how her faith brought her to victory. For more information on the movie please visit www.georgiajusticemovie.com.

Jackie Carpenter has been a featured guest on television, radio, and in newspaper articles.

China Watch Blog has learnt that security in the USA is a huge issue; on a national level, and for corporations, prisons and individuals alike. This is where Berkeley Varitronics Systems comes in – a leading provider of advanced wireless solutions and security products to the domestic and international wireless telecommunications industry.

CEO Scott Schober is a sought-after security expert who made a presentation at the inaugural Concordia Summit in New York City recently to top level political decision-makers from around the world that included Mikheil Saakashvili – President of Georgia, former Polish President Aleksander Kwasniewski, former President George W. Bush, and Thomas Kean, former Governor of New Jersey.

Schober’s security team was part of the 9/11 first-responders who attempted to locate people buried under the rubble by locating their cell phones. BVS products can be used to detect anything – from people illegally crossing our borders, bomb threats, detecting smuggled cell phones in prisons, to protecting board room secrets of corporate America.

Berkeley Varitronics Wolfhound-Pro cell phone detector has been featured on Fox News. It is a precision, handheld, wireless sniffer specifically tuned to the RF signature of common cell phones for both U.S. and European bands and its high speed scanning receiver allows security personnel to locate nearby cell phones in either standby mode or during active voice, text or data transmissions. Instead of illegal and unsafe cellular jamming signals, this detector prevents wireless usage by detecting and even locating the perpetrator.

This product is vital in prisons where keeping cell phones out is becoming a major problem across the country, but especially in California where state prisoners are being bumped into local jails. Prisoners having access to cell phones is always a serious safety concern, but more so with gang members who use them to contact outside members, intimidate witnesses, or conduct criminal activity from inside prison walls. Cell phones can also be used to relay information on transportation of inmates, by giving date, time and route.

Berkeley Varitronics Systems are featured at all major security events. They were recently a featured company at the 4G World Conference in Chicago, where attendees were offered an opportunity to meet their guest spokesperson, Los Angeles Lakers star Andrew Goudelock. (Please see: http://shar.es/bwbZK) They also recently made a presentation at the Chiefs of Police Conference in Kansas where they demonstrated the latest in cell phone detection devices.

Located in Metuchen, NJ, Berkeley Varitronics Systems has been providing advanced wireless solutions and products to the domestic and international wireless telecommunications industry for over 38 years.

China Watch Blog received this statement which it wishes to share with reader. The statement reads: Imagine your life or fortune is on the line in a courtroom in America and 12 jurors hold your fate in their hands?

Easing that scary proposition out of the minds of people on trial is what led Jason Bloom to developing a path of taking the guesswork out of jury outcomes.

Bloom says, “Juries are like icebergs – what you see above water is the demographics; age, ethnicity and gender. However, below the water are attitudes, life experiences and predispositions which are more predictive to the outcome of a case.”

His crystal ball has been put to the test in more than 350 cases as his company, Bloom Strategic Consulting, celebrates five years and an astonishing 90 percent accuracy rate.

Bloom has become a modern-day Nostradamus taking the mystery out of the judicial process and easing clients fears so they don’t have to sit on pins and needles throughout the length of the case.

His company profiles the jury through mock trials and focus groups to see what’s important and what’s not important to the men and women in the box.

“What I’ve really learned and what’s still fascinating to me is that there is a gap probably the size of an ocean between what lawyers and witnesses want to tell juries and what these juries actually want to see, hear and care about towards making their ultimate decisions and rendering verdicts,” says Bloom.

Working on science and strategy not hunches also led Jason Bloom to build his own legal laboratory in Dallas, Texas, called TrialMode. It’s a state-of-the-art mock courtroom designed for realistic, trial-like examination of case strategy, fact patterns and witnesses the ultimate decision makers’ point of view.

China Watch Blog reports that Hong Kong’s Gross Domestic Product grew by 5% in real terms in 2011 and the underlying inflation rate averaged 5.3%, a marked rise from the 1.7% rate in 2010.

Delivering his 2012-13 Budget today, Financial Secretary John Tsang said exports steadied in the fourth quarter to bring growth for 2011 to 3.6% in real terms.

He said Hong Kong lost 62,000 jobs during the economic recession in the wake of the financial tsunami but the unemployment rate rebounded slightly to 3.3% towards the end of 2011, which still represented full employment.

Mr Tsang said the Government’s measures to stabilise the economy and the tenacity of Hong Kong people have helped the city come through crisis after crisis.

China Watch Blog reports that to help young people, the middle-aged and the disabled find work, Financial Secretary John Tsang wants to implement a special employment programme.

Delivering his 2012-13 Budget today, he said the scheme will cost $175 million a year and benefit 20,000 jobseekers with employment difficulties annually.

Another $220 million is earmarked to support the Construction Industry Council in enhancing manpower training to bring fresh blood into the industry to meet the demand of future infrastructure developments.

Tsang said the Government will stabilise the employment market through support measures for enterprises, and provide suitable employment support and training directly to the working population.

The Government will soon inject $100 million into the Enhancing Employment of People with Disabilities through Small Enterprises Project. Under it, funding is granted to non-government organisations to set up small enterprises employing people with disabilities.

Tsang said the Employees Retraining Board will offer 130,000 training places in 2012-13, and allocate additional resources for the provision of placement-tied courses for the unemployed and people seeking employment. Adequate resources have also been reserved for providing an additional 30,000 training places.

The Labour Department’s Recruitment Centre for the Catering Industry & Recruitment Centre for the Retail Industry will strengthen liaison with employers in both industries to better serve their recruitment needs, and disseminate up-to-date information on the employment market to job seekers.

The Employees Retraining Board will continue to provide courses to help people who are seeking employment or changing jobs to join the catering and retail trades. Courses are also offered to employees of both trades to upgrade their skills.

Tsang said overall employment in Hong Kong is largely stable with the unemployment rate standing at a relatively low level, but he expects it to reverse its downtrend as the economy slows down. He said timely measures can be taken to lessen the impact on the community when there is upward pressure on the unemployment rate.

China Watch Blog reports that a Shanghai government official has dismissed suggestions that the city will compete against Hong Kong as a global yuan hub, noting instead each city’s distinct strengths.

The Standard quoted an official as making the comments a day after the National Development and Reform Commission and the Shanghai government outlined a joint plan to make Shanghai an international center for yuan trading.

Fang Xinghai, head of Shanghai financial services office, said each city possesses “unique advantages.”

Fang added: “Shanghai market is larger in size and has more experience in serving the China market. Hong Kong has looser regulations. It is highly market-oriented and has a faster pace of innovation.”

Fang said further internationalization of the currency is essential to building an international financial hub.

“If we miss the opportunity to internationalize the yuan, the financial hub will be at risk.”

Fang noted that central government made the decision with regard to the plan and related policies would be implemented.

Ronald Aculli, chairman of Hong Kong Exchanges and Clearing (0388), concurred with Fang, saying Shanghai would not pose a challenge to Hong Kong.

He urged the SAR to seize the chance to consolidate its status as the offshore yuan center for the international market.

But an economist said Hong Kong has no choice but to adapt to the new reality.

“This will likely make offshore renminbi centers less relevant in the medium term and challenge Hong Kong’s status as China’s sole international financial center,” said Liu Ligang, head of greater China Economics at ANZ Research.

“Hong Kong will need to re-invent itself to meet the challenges posed by Shanghai once China lifts capital controls.”

China Watch Blog wishes to point out to Hong Kong online shoppers that they are virtually unprotected against overseas traders, and in this respect, complaints against online shopping surged dramatically last year, according to the consumer watchdog.

From just two cases in 2010, the number of complaints rose to 548 last year, the Consumer Council said, adding that the surge might be due to online shopping becoming more popular.

But it said many trading portals were located outside Hong Kong and fell outside SAR jurisdiction.

The Standard reported Council chairman Anthony Cheung Bing- leung as sayin that there is no protection at all for customers who shop online through overseas portals.

“Any transactions, no matter in a physical shop or online shop, within the territory are protected by SAR laws on consumers rights, but a vacuum appears when consumers are buying from overseas portals,” he said.

Most of the complaints concerned non- delivery and quality of goods or services which respectively comprised 32 percent and 20 percent.

Cheung said it will be a priority for the council to discuss with Hong Kong law enforcers ways to plug the loophole.

The sales portals are urged to carefully scrutinize merchant partners and to state clearly the terms and conditions about the sales on their websites for consumer reference.

“By doing so, the good reputation of their business can be positively sustained, names can be protected online,” Cheung said.

Consumers are also reminded to be careful when purchasing online and to think twice before buying, as well as to evaluate the reliability and credibility of the website before signing up.

Last year also saw a dramatic increase in complaints related to infant formula, which rose 173 percent to 194 cases, from 71 cases in 2010.

Cheung said most of the complaints were by parents frustrated by the surge in price and formula being out of stock. Suppliers should act swiftly to ensure adequate stocks and also set up customer hotlines, he said.

Meanwhile, another category showing a sharp increase in discontent was medical services, where complaints leaped by 38 percent to 239 cases from 173 in 2010. They included price disputes over maternity packages in hospitals.

The council will focus on three areas this year: the enactment of a competition bill, legislation on first-hand sales of residential properties and extension of trade descriptions ordinances from products to services.