What is the logic for enterprises site selection?

Site selection is a crucial step in business operations for enterprises. Use scientific methods to select sites and integrate them with the company's overall operating system to achieve effective business objectives.Site selection needs to consider the cost, market, and government factors. For the manufacturing industry, with the development of the logistics industry and the prosperity of e-commerce, transportation costs has been reduced on a certain extent, and production costs are largely different due to different regions. The prospect of the market, the demand of the market has always led the direction of the enterprise. Government factors will also work with the cost and market factors on the location of the company.Issues to be considered in enterprise location selection:1. Location, which determines the market and production costs of the enterprises. It is the better that the enterprise chooses a region that close to the supply of raw materials and product consumer market. Because the raw materials and consumer market are two key factors for enterprises.2. During the site selection, the company will definitely consider the policy support, industrial distribution, and service development of the later development. 3. When choosing a Park, it must pay attention to the development concept of the Park. The business type of business in the Park is determined by which type of enterprise, whether this type of business can be docked in your development process, whether it can bring potential customers and potential appreciation is a consideration.4.Other factors: politics, culture, natural conditions, etc. (Considering the above conditions, different industries have different focus.)The main steps of site selection:1. Identify the goal2. Collect relevant data and analyze the influencing factors, and make the preliminary plan.3. A detailed analysis of the preliminary plan.4. After the above analysis, consider the pros and cons, and choose the best plan.As a professional site selection counseling service supplier in China, Tanikawa provides one-stop service for investors from enterprise site selection to official operation. Tanikawa provides optimal support for enterprises in terms of site selection strategy, through the scientific method, the systematic location selection strategy and the localized service team. The full process service for investment projects in Tanikawa has helped a number of cooperative enterprises to solve problems during the business operation.

China to improve pricing mechanism to boost green development

BEIJING - China will further improve its pricing mechanism to stimulate environmental protection and green development, according to a guideline issued by the National Development and Reform Commission (NDRC). China aims to establish a pricing mechanism and pricing policies in favor of green development by 2020. By 2025, the pricing mechanism will be further perfected and fully implemented, said the NDRC. The pricing mechanism should "fully reflect market supply-demand and scarcity of resources, as well as ecological value and the cost of environmental damage," so as to incorporate ecological costs into economic operation and attract more social capital to the environmental protection sector, said the guideline. "The new pricing mechanism will focus on prominent environmental issues and let polluters pay the cost," said Yue Xiuhu, head of the NDRC's price department, at a press conference Monday. China will speed up the establishment of a pricing mechanism that can cover the cost of sewage, sludge and solid waste treatment while bringing profit to these businesses. The government will build a system to push for garbage sorting, as well as garbage reduction, recycling and environmentally friendly waste treatment, according to the guideline. For water use, the government aims for a new pricing mechanism that encourages better quality and more conservation to ensure sustainable use of water resources. Regions that face water shortages and industries with high pollution, high energy consumption and overcapacity will be charged more for water use, the NDRC said. Environmental protection enterprises will see policy support in electricity use, while high energy-consuming industries will no longer enjoy favorable electricity prices. The guideline pointed out that ferro-alloy, calcium carbide, caustic soda, cement, steel, yellow phosphorus and zinc smelting sectors will be given different power prices, while prices for industries subject to elimination or restriction will be even higher. China will also encourage local authorities to explore other green price policies like ecological product pricing, carbon emission trading and a compulsory renewable energy quota, it said. Yue said the government will ensure the quality of people's livelihood during the pricing reform, and special arrangements will be made to ensure that low-income groups will not be affected.

China set to become largest 5G market by 2025

China is expected to become the world's largest 5G market by 2025, accounting for 430 million 5G connections, or one-third of the global total, according to a report released by Global System for Mobile Communication Association (GSMA) and Global TD-LTE Initiative (GTI). All three Chinese mobile operators are currently conducting live 5G trials as part of a multi-year plan that includes research and development, and a network deployment strategy with a view to a large scale commercial launch by 2020, according to the report released at the ongoing Mobile World Congress Shanghai. It emphasized that China's pre-commercial and commercial launch footprints will also be among the largest in the world in terms of base stations. China's leading role in 5G is backed by a proactive government intent on delivering rapid structural change, said Mats Granryd, director general of GSMA. "Chinese mobile operators should be encouraged to deliver what they do best in providing secure, reliable, and intelligent connectivity to businesses and enterprises across the country," said Granryd.

China becomes world's second-largest source of outward FDI

China rose to the position of the second-largest source of outward foreign direct investment (FDI) for the first time in 2016.FDI outflows from China increased 44 percent year on year to 183 billion U.S. dollars last year, driven by a surge in cross-border mergers and acquisitions by Chinese firms, according to the World Investment Report 2017.The report was jointly released by the United Nations Conference on Trade and Development (UNCTAD) and the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce.The United States remained the largest investor worldwide, while the Netherlands ranked third.In 2016, China's FDI outflows were 36 percent more than the amount of its inflows, according to the report.The country remained the largest investor in the least developed countries, far ahead of France and the United States.Despite a 15-percent decline in FDI inflows to developing Asia, China remained the third-largest recipient of FDI in 2016, behind the United States and Britain, with inflows falling 1 percent year on year to 134 billion dollars.James Zhan, director of UNCTAD's investment and enterprise division, said China's outward investment will stay at a high level as the country pushes forward Belt and Road development and international industrial capacity cooperation.However, the country's outbound investment needs an improvement in quality and may face challenges from protectionism, Zhan cautioned.Globally, FDI flows dropped 2 percent to 1.75 trillion dollars in 2016, according to the report.It predicted a modest recovery in global FDI flows for 2017, expecting them to increase 5 percent to 1.8 trillion dollars.Source: XINHUANET

Innovation trend, Belt & Road improving business landscape

Low-end, labor-intensive and environmentally unfriendly foreign direct investment will no longer dominate China's investment landscape, as its primary engine of economic growth has shifted from exports and investment to consumption and innovation, business leaders said. FDI into high-tech manufacturing fields including medical, electronic and telecommunication equipment manufacturing maintained rapid growth in the first four months of this year. The figure jumped 79.5 percent year-on-year to 29.6 billion yuan ($4.65 billion), data from the Ministry of Commerce show. "The transformation comes after China decided to focus on the quality and sustainability of its economic growth rather than quantity," said Zhang Xiaoqiang, vice-chairman of the China Center for International Economic Exchanges. He said a green environment, stability, employment and the improvement of people's living standards are the government's priorities. In the past, foreign companies manufactured products in China and shipped them to global markets. The situation has changed dramatically as many multinationals want to sell in China, too. The country has become the world's largest market that no company can overlook, Zhang said. Shi Yong, vice-president of the China Machinery Industry Information Research Institute in Beijing, said that technological innovation and related services will be key investment areas for both domestic and global companies over the next decade. "China's global role has evolved from a low-cost manufacturer in the late 1990s to the world's growth engine around 2010, and now an unarguably global innovation engine, especially in areas such as high-speed trains, electronics, large passenger jets and nuclear power technologies," he said. Denis Depoux, CEO for China of global consultancy Roland Berger, said that, pushed by the fast development of the Belt and Road Initiative, Chinese technologies are increasing their market share, but there is also a significant share of international technologies and investment deployed from China along the Belt and Road routes. "In addition to Chinese markets, many foreign companies are also shipping their products and solutions to countries and regions involved in the Silk Road Economic Belt and the 21st Century Maritime Silk Road," he said. "Chinese companies, primarily State-owned enterprises, cooperate with foreign companies in third-party markets related to the initiative." Global companies, including ABB Group, Otis Elevator Co, Siemens AG and General Electric Co, have partnered with China's power, infrastructure, transportation and energy companies to tap the opportunities created by the Belt and Road Initiative, especially in engineering, procurement and construction projects. "Many of these opportunities come from many countries' surging demand for public services, manufacturing and infrastructure projects, especially in fast-growing economies such as Turkey, Poland and Qatar," said Claudio Facchin, president of ABB's power grids division. Judy Marks, president of Otis, said the markets related to the Belt and Road Initiative form an important platform for the group to enhance its global earning ability, as it exports a significant amount of its equipment manufactured in China to global markets. She said Shanghai is home to Otis' high-rise contracts and logistics center, which is part of its global major projects organization supporting its major high rise and infrastructure projects around the world. Supported by 15,000 employees including 7,500 mechanics, Otis currently operates six factories, nearly 200 regional branch offices and 550 service depots throughout China.

China to replicate FTZ practices nationwide

Chinese authorities are looking to replicate the latest successful practices in its pilot free trade zones (FTZs) around the rest of the country. In a circular published Wednesday, the State Council asked local authorities to adopt 27 practices that are now applied in the existing 11 FTZs as a way to pursue high-quality development and develop a modernized economy. The practices include expanding the transport area of international ships, offering online registration for general taxpayers, facilitating inspection and quarantine for empty cargo containers shipped by sea, and sharing of enterprise information. The State Council also ordered three practices to be replicated in particular sectors like regulation innovation for customs. FTZs are a way of testing new policies to explore new development models and better integrate the economy with international practices. China established its first FTZ in Shanghai in 2013. The total number of FTZs was brought to 11 after seven new FTZs were launched in April last year. Up to 153 practices piloted in the FTZs have so far been replicated to other regions or sectors, the State Council said.