With a goal of attracting 500,000 foreign students annually by 2020, the mid-way point has now been crossed. According to CNN:
About 290,000 studied in China in 2011, compared to just over 60,000 in 2001, according to the MOE. South Koreans (62,442) were the largest group of foreign students studying in China in 2011, followed by Americans (23,292). The Japanese (17,961), Russians (13,340), Indonesians (10,957) and Indians (9,370) also have large student populations, while almost 50,000 Europeans undertook some form of tertiary study in China in 2011, led by France (7,592) and Germany (5,451).
In contrast, there were roughly 194,000 Chinese students in the US last year and nearly 1 million foreign students altogether.
Last year alone, Chinese movie studios (nearly all of which are state-owned) produced more than 200 anti-Japanese films. Why? Because it’s one of the few areas that isn’t completely censored due in part to the lengthy occupation of the mainland.
Some film reviewers in China say that with the censors declaring so many other subjects off limits, it is only natural that the war dominates story-telling in a competitive market for viewers and advertising.
“Only anti-Japanese themes aren’t limited,” says Zhu Dake, an outspoken culture critic and professor at Shanghai’s Tongji University. “The people who make TV think that only through anti-Japanese themes will they be applauded by the narrow-minded patriots who like it.”
Zhu estimates war stories make up about 70 percent of drama on Chinese television. The state administrator approved 69 anti-Japanese television series for production last year and about 100 films. Reports in the state-controlled media said up to 40 of these were shot at Hengdian alone. State television reported in April that more than 30 series about the war were filming or in planning by the end of March.
Excellent presentation by Michael Pettis several weeks ago at the Wine Country Conference. Hits all the high and low notes about financial and economic issues facing China in the short, medium and long-term. Pettis is a financial professor up in Beijing, manages a popular newsletter and is the author of The Great Rebalancing.
Anecdotatly it is hard to say what direction luxury is heading since it is such a large segment now. Government crackdown on big Party dinners still in effect, not sure if government officials want to be made an example of (including receiving traditional gifts like watches).
Shanghaiist recently did a must-read interview with Shaun Rein. I had the fortune of interviewing him for my book (see Ch 4 & 13), but this new interview is even better/more detailed in my opinion.
He’s one of the few laowai that truly understands what is going on here, approaching the business atmosphere with a very balanced mindset. Check out his book and if you’re looking for a consumer research firm, he happens to manage one (CMR) as well.
The number of British expats working in China has risen 18%, growing from 31,160 in 2006/07 to 38,000 in 2010/11. As of June 2012 there were about 70,000 American’s in China. There are 600,000 foreigners who are permanent residents and 220,000 foreigners legally working on the mainland.
Thanks to the couple of sources who sent these in:
A Challenge to the Bitcoin Community by George Selgin (he wants to see if someone can engineer bitcoin ahead of time to be “flexible” — which is arbitrary — to be inflated or deflated when necessary to purportedly “better” manage the economy; or in other words wealth =/= money)
2010 – $1.769 billion operating profit from $11.343 billion revenue
2011 – $1.815 operating profit from $12.626 billion revenue
2012 – $2.294 billion operating profit from $13.633 billion in revenue
As I mention in Chapter 16, since their first store opened in 1987, KFC now operates approximately 5,000 restaurant outlets in 700 Chinese cities and is on pace to open one new store everyday of the year – with a goal of opening 15,000 across China including 700 more in 2013.1 And despite a food scare regarding antibiotics in chicken suppliers mentioned in Chapter 3, they plan to continue this expansion.2 A large reason why they have been successful is as noted above in the HBR study: adapting to local tastes with foods such as fried dough, sweet potato buns and fishball soup. Furthermore, its parent company, Yum Brands, now operates 5,400 stores on the mainland (including Pizza Hut restaurants); more than double what it had five years ago.3 As a consequence, China now represents for over half of Yum’s operating profit and sales globally.4 In fact, in 2010, KFC China for the first time had surpassed the US market in revenue. In contrast, McDonald’s has a mere 1,464 outlets and 16% of the fast-food restaurant market share.5
China has been the largest vehicle market globally since it overtook the US in 2009. GM, which has a partnership with SAIC, continues to sell enormous amounts of vehicles as well. Below are some annual figures to give you an idea of the volume & revenue.
2012 – $4.9 billion annual profit from $152.3 billion in revenue (source)
GM in China specifically
2010 – Sold 2,351,610 vehicles in China (28.8% increase YoY) (source)
2011 – Sold 2,547,171 vehicles in China (8.3% increase YoY) (source)
2012 – Sold 2,836,128 vehicles in China (11.3% increase YoY) (source)
As I mention in Chapter 1, approximately 19.3 million automobiles were sold in China in 2012.1 By 2015 it is estimated that the Chinese car market will be larger than the US, Japan and Germany combined.234 And by 2016, McKinsey & Company – a global management consulting company – estimates that China will surpass the US as top luxury car market.5 There are now 240 million vehicles on the mainland and 20 million more vehicles will be sold this year.6 Furthermore, according to Michael Dunne, an Asian-based car market consultant, “[of] the projected 2.3 million American-branded cars Chinese will buy this year , an astonishing 96% will be made in China.”7 And this growth rate has largely occurred in less than a decade. For example, in 2004, the market for Land Rover vehicles on the mainland was a mere 1% yet has subsequently surged to 20% of Land Rovers total sales last year.89
Used car sales are increasing faster than new car sales on the mainland and may be an opportunity for foreign auto dealers with experience in this segment. 4.8 million used cars were sold in China in 2012 compared with 15.5 million new cars. Used car sales are expected to double to 10 million in the next three years. For comparison, in the US the used car market is four times the size of new cars. See Coming of age: China’s used car market outpaces new sales growth from Reuters [↩]
Many other luxury cars continue to sell well on the mainland. For example, in 2011 Chinese consumers overtook the US in purchases of Rolls Royce vehicles; although in 2012 US consumers retook the “torch” which may again be handed off in 2013. See U.S. Overtakes China as World’s No. 1 Buyer of Rolls-Royce fromThe Wall Street Journal [↩]