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China dropped two places to 17th in the latest World Competitiveness Yearbook compiled by Swiss business school IMD, but its position has generally continued rising in recent years, the compilers said on May 21, 2008.

This year’s drop isn’t statistically significant, and “China has been on the upward path” in recent years, IMD World Competitiveness Center research fellow Suzanne Rosselet said. In 1995, China ranked 34th.

Rosselet said many factors have contributed to the drop, such as domestic price hikes and the environmental costs of development.

The U.S. continued to top the competitiveness rankings for the 15th consecutive year despite signs its economy is declining.

The IMD economists said the report was based on 2007 data that don’t reflect the U.S.’ current economic woes. “The big question is whether the United States will be No 1 after this year,” project director Stephane Garelli said.

Singapore and China’s Hong Kong kept their respective second- and third-place rankings, and the gap is narrowing between these two economies and the U.S.’, the IMD study said.

Switzerland climbed two places to fourth.

Among the so-called “golden BRIC” countries, Brazil jumped six places to 43rd; Russia dropped by four to 47th; and India dropped two places to 29th.

The study evaluated 55 economies using 331 criteria to measure how those nations create and maintain favorable business conditions. Such factors as economic performance, government efficiency, business efficiency and infrastructure are major criteria for the measurement. In economic performance, China ranked No 2, and it ranked 12th in government efficiency.

“China is an economic miracle by any standard,” John Wells, who became head of IMD in April, said on May 21 in Beijing.

But Rosselet said China’s rapid economic growth has come at a cost.

Its exports, for example, have provided inexpensive products for Western countries, but also consumed a lot of resources and produced a lot of pollution in the country, analysts said.

Rosselet also said the Sichuan earthquake, which devastated the province last Monday, would have a marginal impact on the “resilient” Chinese economy. In addition, the government’s transparency and openness in dealing with the disaster would boost its international image, she added.

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The recovery in the global economy will also come slower than a previous projection put forward by the IMF six months ago, said Olaf Unteroberdoerster, IMF’s resident representative in the Hong Kong Special Administrative Region (HKSAR).

“The outlook for the global economy today is much worse than it was a year ago,” he said at a luncheon at the Hong Kong General Chamber of Commerce.

Unteroberdoerster said the world economic growth would be below3 percent in 2008 and did not rule out a global repression.

The world economy averaged a growth of 4.9 percent in 2007, down 0.1 percentage points from the previous year and the IMF has projected a growth of 3.7 percent in its forecasts announced in mid-April. China had a growth of 11.4 percent in 2007.

Unteroberdoerster said the advanced economies, such as the United States and the European Union, were most affected by the current financial turbulence.

“If you look at the housing sector in the United States, it is obvious that there is no signs of a recovery yet,” he said, adding that the influence of the financial turbulence may well be carried into 2009 and thereby slow down the year’s growth.

But the emerging economies remained the most dynamic as they expected a growth that would be slower in 2008 but still above the trend growth over the last decade, he said.

Unteroberdoerster said the advanced economies and the emerging economics have diverged over the recent years but not de-coupled. The advanced economies experienced a slowdown since 1970 while the emerging economies has been picking up momentum after their growth slowed down to about the same level as the advanced ones around 1990.

China, which has had a rising exposure to demand from the United States and the EU over the past decades, will grow at just above 9 percent in 2008. India, less exposed to demand from the advanced economies, will be less affected by the slowdown, he said.

“Asia’s financial exposure to the United States has also risen. As a result, growth has become more synchronized, as has financial market performance,” he said.

Unteroberdoerster said the risks were still tilted to the downside, mainly because the end of the housing market downturn in the United States did not seem near and the inflation pressures across the world economies were raising concerns.

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Sources with the General Administration of Customs said on Friday that the January-February trade volume between the two sides of the Taiwan Straits amounted to 20.5 billion U.S. dollars, a growth of 23.8 percent on the same period of last year. The growth rate was 8.4 percentage points higher than the year-earlier level.

The total included 3.6 billion U.S. dollars in export value by the mainland, up 12 percent, and 16.93 billion dollars in import value, up 26.6 percent. The mainland’s trade deficit went up 31.2 percent to 13.33 billion U.S. dollars.

Companies with investment from outside the Chinese mainland, particularly those with investment from Taiwan, accounted for 75.9percent, or 15.59 billion U.S. dollars, of the mainland’s total trade volume with Taiwan, up 20.2 percent.

Machinery and electronics made up 66.2 percent, or 13.58 billion U.S. dollars, of the total bilateral trade, up 20.9 percent. The growth rate was 11.8 percentage points higher.

Besides the traditional trade participants — the Pearl River Delta and the Yangtze River Delta, central and western regions of the mainland recorded 380 million U.S. dollars and 280 million dollars, respectively, in trade with Taiwan, up 51.9 percent and 45.4 percent.

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2008 will be a reshuffling and competitive year for the Chinese building materials industry, characterised by soaring raw material prices, distributors entering manufacturing …

2008 will be a reshuffling and competitive year for the Chinese building materials industry, characterised by soaring raw material prices, distributors entering manufacturing sectors, resources concentrating towards strong players, improved awareness of patent protection and reduced export assistance. But the flip side is that, for strong companies, it will be an opportunity for them to develop internal capabilities and achieve better results in the years after.

High raw material prices

Soaring raw material prices have become one of the major headaches for building materials manufacturers in China. But due to the shortage of supply, prices are set to go still higher this year. The ever increasing timber, steel and metals prices have even led to production breakdowns for some manufacturers.

Shortage of raw materials will cause more competition among small and medium enterprises (SME) in the building materials industry. While large companies may still have some bargaining power or cooperate with raw material suppliers, many SMEs can barely survive. To solve the “feedstock” issues, many building material manufacturers in China are starting to work on the sources, by mergers and acquisitions with or equity investments into raw material suppliers, so that the costs can be reduced.

Channel intervention from distributors

Traditionally, building material channels and customers in China have long been owned by wholesale distributors. But as manufacturers’ brand awareness is improving and consumers’ attitudes are changing, multi-brand distributors are having harder and harder days. As a result, many distributors have chosen to exit the industry, or go upstream to become branded manufacturers themselves.

Resources concentrating towards strong hands

When the home decoration and property market was still booming, building materials shops were everywhere, so were the brands. But after two years’ consolidation, there are only a handful of brands that can still be recognised by consumers today.

More attention from investors

Venture capital (VC) investment was one of the major topics in the building materials sector in 2007, as many VC investors had fulfilled their earlier agreements and gradually delivered the funds. Due to the vast market potential, private equity and VC investors, both domestically and internationally, are now showing high interests in the Chinese building materials sector. Home Depot, the world’s largest home decoration retailer, has invested US$ 100 million into China’s Home World Group to gain access to the Chinese market. And Carlyle Group, one of the largest private equity companies in the world, also invested US$ 27.5 million into Shanghai A&W Floors. The premium product manufacturer Boloni has attracted interests from Hony Capital of China, Lenovo and Morgan Stanley.

Less export protection

After announcing several export rebate reductions for floor and steel products last year, the Ministry of Commerce of China and Customs of China have announced another set of restricted processed goods trading catalogue, which is due to be implemented on 23rd August. So many companies in the furniture processing and trading sector will face added pressure from paying the bank guarantee deposit, a new system introduced by the regulator to ensure the authenticity of export processing contracts.

As a result of reduced export rebates and paying bank guarantee deposits, some SMEs in building materials sector will face the inevitable consequence of closure and business restructuring.

Recruiting professional talents from other industries

The building materials industry in China is not yet a fully competitive one. Although scales, equipment and staffing quality have improved significantly in recent years, many companies are still having legacies of handcrafting and family-operated enterprises. Therefore recruiting professional talents from related industries has become an important element for sustainable developments of the building materials industry.

Improved awareness of patent protection

While tariff barriers have been lifted, more and more technological and non-tariff barriers are still hindering Chinese building materials companies from reaching overseas markets. Intellectual property protection has always been Chinese building material companies’ weakness, and some even survive predominantly on being copycats.

But as the industry is developing, we can see that there are more and more companies paying attention to Intellectual properties, as well as increased number of patent applications. Apart from investing in R&D, many building materials companies are now lodging Intellectual property-related lawsuits in China, in order to protect their original design works.

More attention on brand building

Advertisements from building material manufacturers were rarely seen in China five years ago, but now most mediums, such as television, street posters, public transports, newspaper and the internet, have plenty of building material advertisements. An industry insider commented that in the past, many building material manufacturers were only concentrating on hard working, showing no “feeling” towards brand building. But due to increased level of competition, many are now realising that products will need brands, which in turn will need development efforts. Therefore from now on, apart from advertising for sales, many Chinese building materials companies will also advertise for brand communications and corporate image promotion.

Home decorative sector at a turning point

The looming Olympic Games will have significant impact on home renovation companies. Beijing’s property transaction volume had already declined 30% in 2006, and it is expected that the number of transactions will be even lower for 2007. And the recently increase in the number of smaller units, rather than the more profitable larger units, should further reduce profitability of the home renovation sector as a whole. Some industry insiders are now predicting a reduced gap between large and small home renovation companies, which means a turning point for more fierce competition. Due to the government’s macro control on the once overheated property sector, medium and small home renovation companies may find it even harder to win contracts. It is expected to see an increased level of home renovation company closures and failure.

Challenges always come with opportunities. If large and strong home renovation companies can seize this market turning point opportunity, by recruiting talents and increasing investments, the years after 2008 we may see better prospects for development.

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The gap between what Americans import and export unexpectedly widened in February as domestic demand rose for automobiles and fell back for crude oil.

Todd Heisler/The New York Times

Martha Ovalle, unemployed since January, discussed job leads at a state career center in Harlem last week. The government on Thursday said new unemployment claims fell last week.

The trade deficit grew 5.7 percent, to $62.3 billion, its highest reading since November and the second consecutive month of increase. The estimate for January was revised up to $59 billion from $58.2 billion, the Commerce Department said on Thursday.

The increase came as a surprise to economists who had expected the economic downturn to suppress domestic demand for foreign goods. Instead, import sales jumped 3.1 percent, the biggest gain in almost a year, to $213.7 billion from a revised $207.3 billion in January.

Americans bought more foreign motor vehicles, pharmaceutical products and computer equipment in February. The appetite for foreign goods even outpaced the first decline in oil imports in nearly a year. Foreign petroleum sales dipped 1.6 percent in February, though the figure will probably climb back for March, when the price of crude oil reached a record.

Thursday’s report may not bode well for the economy as a whole. With consumer spending on the home front falling, many economists — including those at the Federal Reserve — have said that demand from foreign customers has propped up the ailing American economy, keeping many businesses afloat even as the housing slump and a weakening job market damp domestic demand.

If imports outpace exports, that means more money may be moving out of American businesses than coming in. But economists said the deficit would probably narrow in coming months.

“We expect a reversal of the numbers soon, as households continue grappling with falling home prices, plunging payrolls and financial market turmoil,” wrote Dimitry Fleming, an economist at ING Bank, in a note to clients.

Sales of exports increased 2 percent, to $151.4 billion, from $148.4 billion in February. Foreign demand for motor vehicles, food and beverages and heavy machinery all increased.

But there were signs of weakness: sales of semiconductors, communications equipment and consumer goods all declined.

A separate report on Thursday showed that new claims for unemployment benefits fell last week. The number of American workers filing for benefits dropped 53,000, to 357,000, after adjusting for seasonal factors, the Labor Department said.

But the four-week average rose to 378,250, the highest level since October 2005, reinforcing fears that the American labor market has weakened significantly. New claims for unemployment surged to 410,000 for the week ended March 29, and economists interpreted that as a signal of a recession.

Employers shed 80,000 jobs last month, according to the government, the third consecutive monthly decline.

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China may unveil a plan for phone companies to offer both fixed-line and mobile services “soon,” Sina.com reported yesterday, citing Xi Guohua, deputy minister of the Industry and Information.

The government aims to reform the nation’s telecommunications industry to speed up its development, Sina.com cited Xi as saying on Wednesday.

China Telecom Corp and China Netcom Group Corp, the nation’s two biggest fixed-line phone companies, have said they want licenses to offer mobile services, Bloomberg News said.

China Mobile Ltd, the world’s biggest telco by users, gained a record 7.97 million subscribers in February, while the two fixed-line companies both lost phone customers.

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China Mobile Phone, the nation’s biggest mobile telecom operator, said it has no timetable for returning to the mainland stock market, denying widespread media reports that it has decided to launch Mar. 4, 2008 (China Knowledge) - China Mobile<941><CHL>, the nation’s biggest mobile telecom operator, said it has no timetable for returning to the mainland stock market, denying widespread media reports that it has decided to launch A-share listing this year.

Wang Jianzhou, president of the company, said on Monday the company is now preparing for the listing plan, which requires more time as the listing procedure is complicated.

Last month, some reports said China Mobile is expected to be the first Hong Kong-listed red-chip company to float A shares on the mainland as early as the first half of the year.

Meanwhile, the Chinese government has been encouraging Hong Kong-listed mainland firms to return to the A-share market within this year.

In regard to the upcoming reshuffle of China’s telecom industry, Wang said both operators and users will benefit from the reorganization, but till now no instructions from the central government had been received.

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Industry Focus
Electrical Equipment & Supplies , Electronic Components & Supplies , Lights & Lighting , Measurement & Analysis Instruments , Telecommunications

Products and Services Focus
Electronic Material , Electronic Components , Equipment , Testing & Measurement Instruments , IC , Photoelectric products , Consumer Electronic Products , Communication Terminals and Equipments , small Household Electronics Appliance , IT Products.

Summary
China Electronics Fair (CEF) —-No. 1 electronics fair in China With its debut in 1964, CEF is an authoritative electronics show in China, which is the only fair fully supported by both China Ministry of Information Industry and Ministry of Commerce and it was classed ýAý exhibition in 2003 by Ministry of Commerce. Growing up with Chinaýs electronic industry, CEF has witnessed the transition and development of Chinaýs electronic and information industry from Planned Economy to Market Economy. Strategically, CEF is held 3 sessions every year with high level industry seminars, including Spring Edition in Shenzhen/South China, Summer Edition in Xiýan/West China, and Autumn Edition in Shanghai/East China. In fact, CEF has become the flag of development of China electronic industry. Taking the advantages of the most comprehensive, the largest scale and the most influential grand event, CEF helps your companies keep a long and deep effect to the electronics and information industry in China. CEF has impressive influence worldwide. As the largest electronics fair in mainland China, CEF is one of five members in Asian Electronics Exhibition Conference Confederation (AEECC). CEF is listed in top 5 Asian electronics exhibitions with CEATEC JAPAN, KES, Taitronics and HK Electronics Fair. Through cooperation with overseas exhibitions and publication companies, like Mess Munchen, CEA, Global Sources, CMP, TEEMA, HKTDC, KEA, JESA and Nikkei BP etc, CEF aims to provide an effective trade platform for domestic and overseas companies into China market.
General Information
Hall Plan Hall 1: IC, Electronic Manufacturing Equipments, Testing & Measurement Instruments and Tools, Photoelectric, International area Hall 2: IT Products, Small Household Electronics Appliance DigiCome China 2008 Hall 9: Comprehensive Hall of Electronic Components Booth Prices: Standard booth:(3mý3m): USD 2,520/booth Raw Space (at least 36m2): USD 260/m2 Corner booths will be subject to 10% additional charge. Insightful and profound seminars SMT China 2008 (Shenzhen) International Testing and Measurement Seminar 2008 Senior Seminar on RFID Application 2008 4th China Technology Seminar of Digital TV and Set-Top Box China International electronic Purchasing Conference The Review of 69th CEF and DigiCome China 2007 Dates: April 12-14, 2007 Venue: Shenzhen Convention & Exhibition Center Overview of the Exhibition: Scale: 52,000sqm, including 5000 mý of overseas exhibitors. Exhibitors: 1,700 electronics industrial exhibitors with 2,000 booths, including 150 overseas exhibitors. Visitors: This exhibition attracted 42,563 visitors from 45 countries and regions. The total number of visitors times presented at the exhibition was more than 60,000. Powerful Forums China FPD Manufacturing Forum 2007 (Shenzhen) Seminar on Green Electronic Manufacture and Authentication Portable Consumer Electronics Seminar 2007 Global IC Market Analysis & Forecast Summit 2007 China Eelectronic Purchasing Annual Meeting & Electronic Components Reliable Resource Recognizing Seminar 2007 Korea Electronics Show Promotion Conference The 6th Senior Seminar on RFID Scientific Achievement & Application 2007 (Shenzhen) 2nd Global Bluetooth Technology & Products Exchanging Summit 2007 China VolP Conference (Spring) 2007 2nd China Mobile Communication Development Conference The Appraisal by Exhibitors given to 69th CEF NOUSSTAR has attended CEF continuously for years and every time it brings us a new appearance. On the 69th CEF, we continued to demonstrate our latest technology and new product equipments. It is a good platform. Wish the better future for CEF. We are looking forward to participating the next CEF. —-Mr. Zhong Jinglong, NOUSSTAR SCIENCE AND TENOLOGY CO.,LTD Our company returned to CEF this year. The number of visitors is quite good, and we are very satisfied. This time, our GSP-830 wave instrument, GDS-2000 digital oscillograph, LCR-8101 test instrument, GDM-8255 five and half digits were promoted greatly. Trust the brand, trust the organizer, and we are considering to attend CEF shanghai and CEF Xiýan also. ——— Mr.Weng Qichao, Marketing manager, Good Will Instrument Co., Ltd The Appraisal by Visitors Given to 69th CEF I have been visiting CEF quite a lot of times. This time I was informed by TV news. CEF brings me achievement every time. Their Shanghai and Shenzhen fairs are qualified fairs that I must visit. ——Mr. Bian Xiaoshe, Manufacturing Sector, Foxconn My fiends strong recommended this fair to me. It is quite good indeed. I can meet so many qualified suppliers. So many professional products and people in a 3-days fair brought me helpful information. Wish there will be more qualified high-level exhibitors. —-Mr. Xu Yinjie, Purchase Engineer, Vincent Medical Manufacturing Company, Ltd. China has powerful potential. A lot of our imported products are from China. This is the first time for me to attend CEF. I knew the fair from the Internet. The scale of the fair is very large and its products have good quality and affordable prices. Actually, 3 days are not enough if you want to visit it all carefully. I hope to visit CEF Xiýan, CEF Shanghai, CEF Shenzhen because it brings me so many choices and cooperation opportunities. —-Mr. Marcelo, Director of Import Department, Costaýs Brotherýs Import, Brazil
Attendee Information
This exhibition attracted 42,563 visitors from 45 countries and regions. The total number of visitorsý times present at the exhibition was more than 60,000, including more than 2,000 sourcing delegations organized by state departments and province governments.
Exhibitor Information
With a total hall area of 52,000 mý and more than 1,700 exhibitors (more than 2,000 booths) from electronics suppliers all over the world, the range of CEF covered electronics material, electronics manufacturing equipment, testing and measurement instruments, electronics tools, integrate circuit, photoelectric, and additionally, telecommunication terminals and accessories, digital consumer electronics products, information technology products and so on.

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