USITO Weekly 5/15/2009: EU-China Dialogue

EU-China Dialogue to Reinforce Trade and Fight Protectionism Senior officials from the European Union (EU) and China ended the 2-day official dialogue on May 8th, with the theme of deepening economic and trade relations and seeking solutions to the global financial crisis. The meeting brought together key policy makers from both sides, including EU Trade Commissioner Catherine Ashton and Chinese Vice Premier Wang Qishan, as well as the additional eight EU Commissioners and 12 Chinese minister-level officials. The 2-day event covered a series of topics, including trade, investment, product safety and intellectual property rights. Chinese officials reiterated China's stance of anti-protectionism during the event. Vice Premier Wang stated that China and the EU as the two major economies in the world should make clear commitment against trade protectionism, and the event serves as the platform for strengthening communication and jointly opposing trade protectionism. He said the pursuit of benefits for one country at the expense of others would in the end protect nobody, but lead to retaliation and make the crisis even worse. As part of the event, Vice Premier Wang had a working lunch with the CEOs of a number of leading European companies. The event is the second time that the EU and China have held a high-level economic and trade dialogue. The first was in Beijing in April 2008. people.com.cn, 5/8/2009 USITO Notes: Strengthened cooperation during the economic slowdown period is of equal importance to most nations. History has proven countries must pay heavy prices for trade protectionism. It is easier said than done, however, given EU's frequent use of anti-dumping measures against Chinese products, and China's use of "Indigenous Innovation" to partially exclude foreign products. So it is necessary for the senior level officials from the two economies to overhaul and compare notes about the protectionism status. China was also taking this opportunity to seek state-of-the-art technologies from the EU, many of which might be under the U.S. export control scrutiny. Media reports said Vice Premier Wang especially called for the transfer of advanced green technology to China, as the technology is new to the country and much expertise and knowledge are needed. The two economies are growingly dependent on each other, as EU is China's largest trading partner and technology supplier, and China is the EU's second largest trading partner. As reported in 2/27/2009 USITO newsletter, the Chinese buying delegation visited EU in February and bought advanced equipment, technology, key products and service worth more than RMB 15 billion (USD 2.2 billion).
China Mobile to Buy Equity of Far EasTone China's largest mobile carrier China Mobile was reported to enter into a share subscription agreement and a strategic cooperation agreement with Taiwan's Far EasTone Telecommunications Co., Ltd. (Far EasTone) last week. According to the agreement, China Mobile will subscribe through a private placement for 12% the latter one's total shares, and completion of the transaction is subject to receiving all relevant approvals. But the reports said no sustantive contracts have been reached so far. . The two companies have agreed in the MOU to cooperate closely in a number of areas, including procurement, roaming services, data and value-added services, and network and technology advancement. Reports said the strategic alliance will facilitate the expansion of both companies' businesses in Mainland, Hong Kong and Taiwan and help them provide more comprehensive services to their customers. Far EasTone is Taiwan's second largest mobile carrier, with business scope covering Mobile, Broadband, Media and International Service. In recent years the company is trying to build itself as a total solution provider, comprising mobile communications, information, entertainment and transactions. tech.sina.com.cn, 5/8/2009 USITO Notes: China Mobile has never stopped seeking opportunities of overseas expansion as the home market becomes growingly saturated. As the mainland and Taiwan business relationship keep growing, the alliance is important for both parties' future prospects, such as they will be able to generate more revenues by providing better-customized options to individuals who travel across the strait as well as business enterprises operating in both Mainland and Taiwan. However, due to stringent regulatory control on such issues, the deal is subject to government scrutiny at either side. Since it is merely a MOU instead of a contract, it remains a question whether the good wills will come true.	Member in the News: Motorola Signs Frame Agreement With China Mobile Motorola, Inc. announced that the company has just signed a one-year frame agreement with China Mobile Communications Corporation to provide mobile equipment and services. The projected shipment and services value is estimated to be USD 310 million reinforcing Motorola's position as a long term and trusted GSM supply partner to China Mobile. Under the agreement, Motorola will supply GSM/GPRS/EDGE infrastructure and related services to meet China Mobile's growth needs in various markets served by Motorola radio infrastructure equipment. Detail ZTE Ranked the Fastest Growing Telecom Vendor According to a latest report by IDC, ZTE Corporation, for long China's second largest telecom equipment vendor, was ranked the fastest growing telecom equipment and solutions provider in 2008 among the publicly traded major telecom vendors worldwide. IDC based its findings on 2008 earnings results: ZTE's 2008 revenues reached USD 6.5 bln, with overall revenues rising 27%. Over the past five years, ZTE's wireless business more than doubled its revenues. Detail
- May 22, 2009 Shanghai - USITO/AmCham Shanghai IT Committee Presents: "Information Security in the Enterprise: Managing IT Related Risk" Building a secure IT infrastructure that can work flawlessly through unexpected disasters and developing processes that ensure business secrets are not divulged are challenges IT Managers face on a daily basis. The AmCham Shanghai IT Committee and USITO will jointly host a panel discussion on "Information Security in the Enterprise: Managing IT Related Risk.” which will attempt to look at the big picture, and address everyday issues faced by private industry. Featured speakers include: Neal Beatty of Control Risks, James Fitzsimmons of Celanese, and James Goodrich, USITO.