China improves status on global value chain of manufacturing industry: WIPO report

Chinese enterprises are gradually ranking among the upstream manufacturers of high added value as China improves its status on the global value chain of the manufacturing industry, said a report issued by the World Intellectual Property Organization (WIPO). The report “World Intellectual Property Report 2017: Intangible Capital in Global Value Chains” carried out in-depth case study on three global industries including coffee, solar panels, and smartphones. It revealed that nearly one third of the value of manufactured products sold around the world comes from “intangible capital,” such as branding, design, and technology. East Asia, North America, and Europe are the major study regions of the report because they share the closest in relation in terms of supply chain. The three regions, as high-income “headquarter economies,” have a similar production mode, that is, export high value-added products and services to middle-income manufacturing economies and then re-export them after assembly. Japan, the US, and Germany used to be the leading “headquarter economies,” but Chinese enterprises have been gradually approaching the upstream of the value chain in recent years, bringing huge change to the traditional pattern. For instance, through branding and high investment in research and development, Chinese tech giant Huawei has become one of the major producers of high-end smartphones. In addition, Chinese enterprises, such as Xiaomi, Oppo, and Vivo, are also among the top 10 selling brands in the world. “Intangible capital will increasingly determine the fate and fortune of firms in today’s global value chains. It is behind the look, feel, functionality, and general appeal of the products we buy and it determines success in the marketplace,” said WIPO Director General Francis Gurry. “Intellectual property, in turn, is the means by which companies secure the competitive advantage flowing from their intangible capital.”

Tanikawa （Hubei）Technology Co., Ltd. was established

Tanikawa （Hubei）Technology Co., Ltd. was officially established in Wuhan, located at Wuhan Tiandi, Jiang'an District. This is the 13th city in the nationwide layout for Tanikawa, after Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin, Nanjing, Hangzhou, Xiamen, Zhangzhou, Qingdao, Jinan and Horgos. The newly established Hubei company will focus on providing localized investment services for customers in the central region and lead the investment promotion in the central region towards marketization. Through the eight years' accumulation in the field of investment consultation , Tanikawa has completed the main layout of the coastal areas, the business territory covering Beijing, Tianjin, Hebei, Yangtze River Delta, Pearl River Delta and other regions. The establishment of Hubei Branch Office, is our company's key initiatives that the business service extends to the central and western regions. The central and western regions has tremendous development potential. If enhance development for these regions, it will promote project linkage, regional linkage and service linkage throughout the country for Tanikawa. After the establishment of Hubei Branch Office, Tanikawa （Sichuan）Branch Technology Co., Ltd. will be established by the end of the year, on the occasion, the investment service network from Tanikawa will be further improved in the central and western regions. It is estimated that the strategic layout will be completed in more than 20 cities nationwide until 2020. At the same time, Tanikawa overseas layout plan is also preparing.

China encourages private investment in manufacturing upgrade

China wants its private sector to play a larger role in the country's pursuit of high-end manufacturing, according to a government guideline. The guideline, which has been jointly released by 16 government departments including the Ministry of Industry and Information Technology and the National Development and Reform Commission, said measures will be introduced to break the barriers that hamper private investment. Private enterprises will be encouraged to participate in the construction of manufacturing innovation centers or establish national technological innovation centers on their own, said the guideline. Meanwhile, the government will support private enterprises to enter sectors like smart manufacturing and help improve China's basic industrial capacities. Competitive businesses in the basic telecommunication sector will be open to private investment to push for faster and more affordable internet connections, it said. Authorities should continue to optimize the range of government investment and treat all investors equally, said the guideline. Also, they should further cut corporate burdens, improve public services and increase fiscal support for the private sector. In terms of financial support, the government will set up a national financing guarantee fund, encourage financial institutions to provide financing services for private manufacturers, and help private firms to receive direct financing through a multi-level capital market. China is pushing its industries to move toward the medium-high end of the global value chain. In the first ten months of this year, private fixed-asset investment into the manufacturing sector rose 4.1 percent year on year. The private sector contributes more than 60 percent of China's GDP growth and provides over 80 percent of jobs.

Artworks of college students displayed at Shanghai Tower

The exhibits have been chosen from the works of over 70,000 students and graduates from more than 500 colleges and universities nationwide, especially from China's nine academies of arts. This is the largest art collection and exhibition of the nation's young artists, according to the organizer. Their efforts can be seen on the B2 floor of the city's tallest building until January 17, 2018. About 600 participants are exhibiting and admission is free. The artworks, including traditional Chinese paintings, oil paintings, engravings and sculptures are being seen by collectors as well as the public. The experts have been invited to the exhibition and are encouraged to buy and collect the creations of the young artists. "The practice aims to promote the students and graduates to the artwork market and collectors," said Hu Huanzhong, general manager of the International Cultural Investment and Development Co of the Shanghai Free Trade Zone, the exhibition organizer. It is part of the ongoing "2017 National University Students Art Exhibition," which aims to showcase the artworks of the young artists and help them on the path to fame or at least to find them employment more easily so they can pursue their artistic careers. "It is quite difficult for graduates of art colleges to get employed or enter the artwork market, though the artwork auction market seems prosperous in China in recent years," said Jin Shangyi, chairman of the Chinese Artists Association. Many art graduates have to abandon their dreams and find an unrelated job to make ends meet, Jin said at the opening ceremony of the exhibition. The exhibition held in the tallest building in Shanghai released a signal to push these young artists to enter the artwork market and to bring new blood to China's art movement, said the 84-year-old Jin. Young artists often express their feelings and thinking more freely, so their artworks can better represent the condition of China's contemporary arts, said Zhang Xiaoling, deputy president of the China National Academy of Painting, one of the nation's nine arts academies. The eight most promising young artists were selected from the participants by an expert panel led by Jin and Zhang.

First China-invested wind power project in Africa starts operation

The first China-invested wind power station in Africa, Longyuan Mulilo De Aar Wind Power Project, started operation on Nov. 17. With a total investment of 2.5 billion RMB ($377 million), the project is being constructed in two phases in South Africa’s Northern Cape. It has a total installed capacity of 244.5 MW. Power shortages have become a severe issue in Africa in recent years, giving rise to the urgent need to develop new energy. Being a country with rich wind resources, the market potential in South Africa is huge. The project was constructed by Longyuan South Africa, a company under China Guodian Cooperation (CGC). According to Zhang Guohou, executive vice president of CGC, Longyuan South Africa has always adhered to local laws and regulations and has worked with local partners during the construction phase of the project. The project has created more than 700 jobs for the local community, Zhang noted. It will help generate 644 million kWh of green power for South Africa each year, saving 215,800 tons of standard coal and cutting 619,900 tons of carbon dioxide each year. It is expected to meet the electricity demand of 85,000 households in the area.

Xiaomi to invest 1 billion dollars in India within five years

Chinese smartphone maker Xiaomi is planning to invest 1 billion US dollars in 100 companies in India within five years, aiming to create a system that centers on the company's smartphone brand, according to an interview with Lei Jun, founder and CEO of Xiaomi, conducted by Livemint. Lei Jun said that his firm has given India priority over its home market China and will build products keeping India in mind first. With a research and development center, coupled with a focus on design, the company plans to bring around 200 products to market in India, and not just smartphones. In the past four years, Xiaomi has invested 4 billion dollars in more than 300 companies in China, and successfully created a system that focuses on the company's smartphones. Xiaomi aims to bring that business model to India. According to Lei Jun, Xiaomi is to be committed to investing in content, FinTech, in-depth localization services, manufacturing and more, promoting the popularization of the internet in India. So far, Xiaomi has invested in 6 internet companies in India, including Hungama, India's leading digital entertainment company, and KrazyBee, India's first Online Installment Store. India is the first foreign market for Xiaomi and it is the most successful one so far. Xiaomi introduced its smartphone to India in 2014, by means of cooperation with a local e-business to sell online. In May 2015, Xiaomi launched its first physical store in Bengaluru, India. According to International Data Center, Xiaomi and South Korean firm Samsung Electronics were joint leaders in the Indian smartphone market with each controlling 23.5% of market share. Committed to an international strategy, Xiaomi has launched in many markets overseas in the past few years, including Brazil in 2015, East Europe in 2016, and Spain in November 2017.