TOYOTA'S PRESIDENT TO VISIT CHINA ON MARCH 1, 2010 - SEEKING TO BOOST CONFIDENCE AND EASE CONSUMER WORRIES IN THE WORLD'S LARGEST AUTOMOBILE MARKET

1.0 INTRODUCTION

According to an Article from the Associated Press (by Yuri Kageyama, AP Business Writer - February 28, 2010), Toyota President Akio Toyoda will speak on Monday, March 1, 2010 in China about his company's quality problems.

The purpose of Toyoda's appearance in China is to boost confidence and ease consumer concerns in China (which is the World's Largest Automobile Market).

Toyoda testified (last week) at a U.S. Congressional Hearing, about the large number of recalls plaguing Toyota Motor Corporation.

Toyoda will be speaking to reporters at a Beijing Hotel on Monday, March 1; company spokeswoman Ririko Takeuchi said.

2.0 RECALLS IN CHINA

The number of recalls that have been issued in China (by Toyota Motor Corporation) have been small, compared with the 8.5 million recalls worldwide (since October 2009) for sticky gas pedals, faulty floor mat and glitches in the braking software.

In China, Toyota announced a recall of 75,552 RAV4 Sport Utility vehicles in late January 2010 due to the gas pedal problem.

The large number of recalls in the U.S. has shaken confidence in Toyota's reputation for top-grade quality.

3.0 TOYOTA'S PLANS FOR THE CHINA MARKET

Toyota has big growth plans in the Chinese Market.

The company stated that it plans to expands in the China, and expects to increase its sales (into China) from 709,000 to 800,000 vehicles per year.

China's overall vehicle sales ramped up 45% last year (to 13.6 million vehicles), overtaking the U.S. as the World's Largest Automobile Market.

Toyoda's desire to go to (and make this appearance) in China (despite the small number of recalls there) reflects the automaker's wishes to restore their reputation as a "high-quality" automobile manufacturer - which has been a key advantage that Toyota has enjoyed over many of the other automobile manufacturers.

4.0 CHINA'S VIEW ON THE RECALLS

To date, China's state-controlled media has made only muted comments about Toyota's recalls.

The Chinese mostly view these recalls as a "precautionary example" of possible pitful for China's relatively-new, emerging automobile industry.

According to John Bonnell, a J.D. Power Analyst in Bangkok; "It is a wake-up call (for the Chinese). This is not easy, this is a major challenge to ge tthe product right and keep customer's satisfied".

5.0 SUMMARY AND CONCLUSIONS

For all of the automakers, China and other fast growing emerging markets are providing growth and profits to offset losses in their traditional markets (e.g., Developed Nations).

"If it wasn't for China last year, a lot of the makers, Toyota, Nissan, Honda would be staying in the red. China is probably their most profitable operation," said Christopher Richter, an auto analyst with CSLA Asia Pacific Markets in Tokyo.

In this posting, I would like to emphasize a couple of the points that I made here.

1. That China is NOW, the Largest Automobile Market in the World (larger than Japan and the U.S.). This is partly due to the continued recession in both Japan and the U.S., as well as continued growth in the Chinese economy.

2. If it wasn't for China, all of the big automakers in Japan (e.g., Toyota, Nissan and Honda) would have been losing money in 2009.

If you would like for your business to participate in the growing Chinese Market (perhaps to offset losses elsewhere, or to actually grow your business), then learning to communicate and relate to these people is a good first step.

Many people believe that there is no better way to show a "potential business partner" that you are interested in them, and wish to communicate and work with them; than taking some time to learn their language (in this case Mandarin-Chinese).

Click here if you are interested in taking the first step to have your business participate in China's growth, by exploring the possibility of learning to speak Mandarin-Chinese.

China and India will lead Economic Recovery in 2010

On February 24, 2010, the Toronto Star Reported on the Conference Board of Canada's Latest Global Outlook for 2010.

The following are the Conference Board's Projections.

China and India will lead the way in the coming global economic recovery, largely due to the huge government stimulus and infrastructure spending.

Even though China has not spent all of the 4 Trillion Yuan Stimulus Package, its GDP is still expected to grown by as much as 10% in 2010, following a gain of 8.5% in 2009.

India's economy will continue to benefit from ongoing infrastructure spending and, combined with an expected boost in tourism revenues from the Commonwealth Games in Delhi; should result in a GDP growth of 7.6% in 2010.

In contrast, recovery in Europe is still in the early stages and solid gains in GDP are not a sure-thing in 2010. GDP in Western Europe declined by 4.1% in 2009 and a small growth of 1.2% is expected in 2010.

Overall, the Global Economy is set to growth 2.9% in 2010, after shrinking 2.2% in 2009.



Glen Hodgson, the Conference Board's Chief Economist stated "While this is good news, recovery will remain tepid compared to the level of growth that normally follows a steep recession. We won't see more normal growth rates for the world economy until 2011 or 2012."


There is still worry about the banks in the U.K., Ireland and Spain; as they continue to cope with the meltdowns in residential real estate.

Troubled loans in Eastern Europe are also a concern for many of the region's banks.

Germany and France have been the first countries to emerge from recession, while Spain and Ireland are still dealing with the "after effects from the bursting of their housing bubbles, wth their GDP expected to decline again in 2010.

Latin America has weathered this global storm much better than in the past downturns and is poised for above-average growth of 3.6% in 2010.



"Better Macroeconomics policies are the main factor behind the improved performance" the report said. These include inflation targets, flexible exchange rates, good regulation and low exposure to mortgage-backed securities.

Brazil is set to show solid growth of close to 5%, this year.

Mexico's GDP dropped by 7% in 2009, the largest decline in the region, which is evidence of the country's close economic ties with the U.S. economy. Mexico's economy is expected to recover and grow by 3% in 2010.

Back in the Asia-Pacific Region, Indonesia is in the best shape. It managed to avoid slipping into recession last year, and solid growth of 5.4% is expected this year.

Malaysia, the Phillipines and Thailand are expected to grow by 4% in 2010.

In the U.S., ongoing weakness in the labor markets will result in a sluggish recovery, with economic growth of 2.8% in 2010.

Weak growth in consumer spending (not surprising given a fragile job market) will restrain overall economic growth this year.


In summary, the Conference Board of Canada's latest global outlook indicates that China and India are expected to have the highest growth in GDP for 2010.

Many people, companies and organizations have concluded the following things about surviving the global economic crises.

1. A good plan (to minimize your "down-side" or to increase your "up-side" is to "partner-up" with a fast growing economy (such as India or China), and

2. A good way to build your relationship with and show your "new partner" that you are really interested in them, is to make an effort to start learning their language (Mandarin, in the case of China).

Click here if you are interested in learning how to "build your partnership in China" by learning the Mandarin Language.

China's Continued Growth means 20 More Good Years of Growth for Australia

According to the Sydney Morning Herald, the Reserve Bank of Australia (RBA) stated that China's economic growth has a few more decades to run.

During this time, the Australian economy is expected to benefit from this continued growth.

RBA Assistant Governor of Economics Philip Lowe stated that the "continuing urbanization in China and its subsequent investment in infrastructure will be a boon for the Australian economy."

"I am quite optmistic that story has some decades to run and that underlies much of the positives for the Australian economy," Dr Lowe said in response to a question at the Committee for Economic Development of Australia (CEDA) half day forum in Sydney on Thursday, February 18.

"There are clearly going to be some ups and downs in the size of Chinese investment, and that will have an effect on us. For the next 20 years, on average, it is going to be a good 20 years for China and us."

China is Australia's largest export market.

Dr. Lowe indicated that any suggestion that we are coming to the end of the boom in major capital building in China was unlikely.

"Somehow that China is overdone with capital investment, I think that is a bit of a stretch", he said "They can go on for many years."

Click here for more information on how you and your business can also benefit from China's continued economic growth.

Lancaster, California says "Ni Hao" in Effort to Lure Chinese Investors to their City

1.0 INTRODUCTION
The City of Lancaster, CA is going "all out" in the effort to "woo" Chinese Investors and Businesses into their city. This effort includes having city officials taking Mandarin-Chinese lessons.


In this article, we are going to discuss some of the things that City Officials and Business people in Lancaster, CA are doing in order to lure Chinese Investors and Businesses into their town, in order to revive the economy.

More specifically, we will discuss the following items.


What is Lancaster's curent economic condition?

What are City Officials/Businesspeople doing to lure Chinese Investors/Businesses to Lancaster, and

Is this effort paying off?

The intent behind this article is to provide the reader (that may also find their business or city in a difficult financial situation) with some information on an approach that can used to "weather this economic storm" and (perhaps) even prosper during these tough economic times.

2.0 LANCASTER'S CURRENT SITUATION
Lancaster, CA is located about 60 miles north of Downtown Los Angeles, and is situated in the "High Desert".

Although this city is roughly an hour's drive away from Los Angeles; in the past many of Lancaster's residents have taken great pride and comfort in being relatively far away from Los Angeles and much of what it represents to them.

However, (at the time that this blog post was written), the economic conditions in the United States (and for much of the Developed World) have been very hard. Further, many communities in the "Far-Flung" suburbs of large cities (like Los Angeles) have been particular hard hit.

Lancaster, which has an unemployment rate of 17%, has certainly shared in this pain.

While the Developed Nations have been mired in a hard recession over the last couple of years, China is one of the few nations that has been experiening consistent economic growth.

In 2009, China's GDP grew by 8.7%.

This fact has not gone unnoticed by the various City Officials and Businesspeople in Lancaster, CA.

Specifically, City Officials and Businesspeople (from Lancaster) have been putting forward great effort to improve the economic conditions in their town by luring Chinese Investors and Businesses to their city.



3. 0 WHAT IS THE CITY DOING TO TRY TO LURE CHINESE INVESTORS?
At the time that this article was written, the City of Lancaster was doing the following things to lure Chinese Investors/Business people into their city.

The City (including the Mayor, Mayor R. Rex Parris) has put together a "promotional video" (which will be dubbed in Mandarin-Chinese) to promote Lancaster as a "Great Place" for Chinese Businesses to consider expanding to.

Lancaster will also be sending a business delegation (consisting of business people, city staff and clergy) to China in early 2010 (prior to the Spring) in order to meet with Chinese Investors and Business People.

The City of Lancaster has partnered up (and formed a "Sister City" relationship) with Huainan (in the Anhui Province) of Central China.

Currently, Lancaster's Asian population makes up about 3.8% of the City's Population. Therfore, Lancaster is considering establishing a bilingual English-Mandarin Charter School, in an effort to entice more Asians to move to Lancaster.

"We have realized that it is a global economy" said Mayor R. Rex Parris. "The Chinese have Trillions of American dollars. We want them to reinvest those dollars back in America."

In recent months, Lancaster has hosted several delegations of potential Chinese Investors.

In spite of Lancaster's remote location, the members of the Chinese Delegations are welcomed in Mandarin-Chinese by staff and officials (including the Mayor) that have been studying Mandarin over the past few months.

These greetings are typically along the lines of "Hello", "How are you?", "How was your trip?", and "Welcome to Lancaster" said Luis Garibay, a senior redevelopment project coordinator for the city (described by peers as one of the most proficient Mandarin students)

"We never expected to become experts" Garibey said. "The goal was to get some fundamentals to help break down barriers".

"What is important is the understanding that we care enough to try to understand their culture and language and to try to communicate even on a small level, that their investment is important to us" said Deputy City Manager Jason Caudle, who also has taken the Mandarin-Chinese lessons.



4.0 IS THIS EFFORT PAYING OFF?
The answer to this question may be "Yes".

Mayor Parris said that Lancaster was "leading the pack" to beome the location for a new car-manufacturing plant owned by the Chinese Manufacturer BYD Co, LTD, a giant in the re-chargable battery industry.



5.0 CONCLUSION:
It is interesting to note that many of the City Officials in Lancaster saw that it was important to learn Mandarin-Chinese in order to cultivate a good relationship with Chinese Businesspeople and Potential Business Partners.

Click here if you are interested in learning how you can take the first steps towards cultivating your relationship with a Chinese Businessperson or Potential Business Partner.




6.0 ACKNOWLEDGEMENTS
I would like to mention that an Article in the February 5, 2010 edition of the Los Angeles Times (by Ann Simmons) on this topic was very helpful to me in writing this article.

China and Japan in Battle for 2nd Largest Economy in the World

1.0 INTRODUCTION

According to the Chosun Ilbo (a South Korean Newspaper), Japan and China are in a "tight race" for the "Number Two" spot (for the largest economies of the World).

The United States still occupies the "Number One" spot as being the largest economy in the world.

2.0 WHAT IS THE SIZE OF JAPAN'S ECONOMY?

On Monday, February 15, Japan's Cabinet Office reported that their countries GDP totaled $5.08 Trillion USD in 2009.

This figure is down 5% from that of 2008.

3.0 HOW HAS JAPAN BEEN DOING RECENTLY?

Japan's economy has continued to struggle from the impact of the global economic crises, with no indication of improvement in the Fourth Quarter.

4.0 WHAT IS THE SIZE OF CHINA'S ECONOMY?

According to China's Bureas of Statistics, China's GDP was 33.53 Trillion Yuan (or approximately $4.91 Trillion USD).

This number reflects an 8.7% increase over China's GDP in 2008.

5.0 HOW HAS CHINA BEEN DOING RECENTLY?

When announcing China's GDP numbers, Ma Jiantang, the Head of the Government statistical bureau said "It is not our job to rank the world's economies, but what is important is the fact that China's economy is continuing to grow".

Following China's announcement of their GDP numbers, the State-Run China Daily reported that China had displaced Japan to become the "World's 2nd Largest Economy".

In response to this report, the Japanese Daily Sankei Shimbun reported that China was merely "patting itself on the back".

6.0 WHEN WILL THIS "CONTEST" BE DECIDED?

The "Winner" of the "Number Two" spot will not become clear until the IMF (International Monetary Fund) announces the GDP figures of individual countries in April 2010.

7.0 DO YOU WISH TO BE A PART OF CHINA'S GROWTH?

Those business people that attempt to learn the language (even a small amount) of that of a business or country that they wish to do business with; will be viewed in a "positive manner" for their efforts.

This effort shows that business or nation that you really want to learn to communicate with them.

Therefore, a strong first step (towards developing any business or business-relationship) in China would be to learn their language (Mandarin Chinese).

Click here to learn about how to get started on learning the Mandarin-Chinese language, and to also start growing your business.

Hello and Introduction

Hello Reader,
This is my very first post to this blog "Doing_Business_in_China".

In this blog I will be discussing the following topics.

1. The Business Climate in China
2. Emerging Trends in China
3. Information about the Mandarin Chinese Language
4. Information about Traveling throughout China.
5. Anything else that is noteworthy and of interest for those interested in traveling or doing business in China.

That's all for now.

I'll talk to you during my next post.