Foreign Firms Leaving China

Armand2REP

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AMD 10% job cuts worldwide spread to China

Yesterday the computer chip giant AMD announced that the company would lay off 10% workers, the cuts will involve AMD China area. This is this year in August, Lenovo Group former chief operating officer Reed quit AMD takes up the post of company CEO has made the first major adjustments.

The AMD statement, the cuts is the cause of the global PC market weakness and manufacturing activity in the delay to make losses, and that the redundancy measures can help companies in the fourth quarter to save about $10000000 cost savings of $118000000, the next year. Reportedly, the cuts will involve a total of 1400 employees of AMD.

AMD 10% job cuts worldwide spread to China | IC Datasheet
 

nimo_cn

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It is funny that Armand is posting something like 'Nokia Siemens To Axe 4,000 Employees In China', which only indicates the collapse of western telecom vendors.

Don't worry for the 4000 employees laid off by NS, I am pretty sure most of them will be recruited by Chinese companies like Huawei and ZTE.
 

Armand2REP

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Coach to shift manufacturing from China


Coach, the US accessories brand, is planning to shift up to half of its manufacturing out of China to escape rising labour costs at the same time as it moves aggressively to expand its sales in the country.
Lew Frankfort, Coach's chief executive, said that over the next five years the company would cut its China production to 40-50 per cent of its total from 85 per cent at present by opening factories in lower-wage economies including India, Vietnam and the Philippines.

Coach's plans point to the shift in China's role from workshop of the world to consumer of first resort. Coach is aiming to make annual sales of $500m in China within the next three years.
The move is also reminder that while China's consumer class is expanding because incomes are rising, companies manfucturing goods in the country to meet that demand face the risk of narrower profit margins.

Mr Frankfort said: "We are subject to rapid wage increases in China among employees working in the manufacturing sector, which we support. We work with factories to offset high labour costs through improved efficiency and lean manufacturing."
But he also said: "We are beginning to diversify production out of China into other Asian countries that are not enjoying that level of prosperity." He was speaking at conference of the Committee of 100, a Chinese-American group in New York.

The Chinese government is trying to encourage a shift in the economy from being heavily export-led to depending more on domestic consumption. As part of that process, it has encouraged a substantial rise in wages in coastal manufacturing cities such as Shenzhen in the past year.
Li & Fung, a Hong Kong-based consumer goods sourcing and logistics company, said in March that wages had risen by 20 per cent in China this year, heralding "a new era in sourcing with higher prices".

Coach's sales in China doubled last year to $100m and it is aiming to boost them to $500m by 2014 and secure a 10 per cent share of the luxury accessories market.
Coach has nine stores in Hong Kong, 44 in mainland China, and is planning to add 11 new outlets in this quarter.
"We are pacing our growth. We could profitably open twice or three times the number of stores we open each year," Mr Frankfort said.

It is especially keen to tap into the market for men's handbags – or "man bags". Coach says men account for 45 per cent of spending on handbags and accessories in mainland China, whereas they make up only 25 per cent across Asia and 15 per cent globally.

Coach to shift manufacturing from China - FT.com
 

CherrywoodHunter

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Inward DFI of China is increasing. Plain and simple.
BTW, China's outward DFI is also increasing rapidly.
 

Ray

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Sweatshops or not, China is on the rise!

China is a huge sweatshop!
 

amoy

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No silver lining to Asian export clouds for airlines

David Badger | Monday, 16 Jan. 2012

Cargo carriers axe services and cut capacity as demand out of key Asian markets stays soft



Air cargo carriers look set to cut services and reduce capacity as demand for exports out of the key Asian markets of Hong Kong and mainland China remains soft.

Cargoitalia grounded its freighter operations last month, as did Jade Cargo, a China-based joint-venture between Lufthansa Cargo and Air China, hoping to restore them today. However, late last week, the carrier announced this would not happen.

And, as reported in IFW, Air India last year scrapped plans to set up dedicated freighter services from Asia.

Hong Kong-based Cathay Pacific and sister carrier Dragonair carried 142,122 tonnes of cargo and mail in December, down 11.9% on the same month in 2010 with the load factor down 9.6 percentage points to 67.8%.

Capacity, measured in available cargo/mail tonne km, rose 3.9%, while cargo and mail tonne km flown were down by 9%. For the year as whole, tonnage dropped 8.6% compared to a capacity increase of 6.9%, while cargo and mail tonne km flown fell by 5.2%.

Cathay Pacific's General Manager Cargo Sales & Marketing, James Woodrow, said: "The traditional year-end peak for our cargo business simply didn't happen and our December figures were a disappointing end to what was a challenging year overall.

"Demand out of our key markets in Hong Kong and mainland China remain soft and there is no sign of any upturn."

Overall, Asia-Pacific carriers saw traffic fall 6.5% in November, year on year, according to the Association of Asia Pacific Airlines (AAPA). Carriers saw traffic fall 4.8% in the first 11 months of the year compared with 2010.

Asia-Pacific airports saw cargo volumes decline 3.2% in November, year on year, with major export gateways hit most severely, according to statistics from Airports Council International (ACI) reported in IFW.

Taipei, Incheon, Hong Kong and Shanghai saw traffic fall 10.6%, 8.2%, 6.6% and 5%, respectively.

The air cargo export market out of Asia is "really bad," said Paul Tsui, Chairman of the Hong Kong Association of Freight Forwarding and Logistics.

"Most of this is down to the EU debt crisis but the US economy is also not very stable and Japan has not fully recovered from its earthquake. Overall the market is just really bad."

The first Asia airport figures available for December, released by Hong Kong Air Cargo Terminals, showed a similarly disappointing picture. Volume was down 4.3% year on year and exports fell 9.3%.

"Given unresolved concerns about the Eurozone debt crisis, and wider uncertainty about the global economic outlook for 2012, Asian carriers are bracing themselves for another tough year ahead," said AAPA Director General Andrew Herdman.
 

Armand2REP

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Olympus Layoffs 3000 in China

Olympus plans by the end of September this year before one-third of global layoffs, that is, around 4000, to retain about 10,000 employees. The job cuts mainly concentrated in China and other overseas factories. Olympus plans two plants in China to cut nearly 3,000 employees, and suspend the recruitment of new staff. According to company president Kikugawa just revealed that this is the first time since the founding of Olympus layoffs main purpose is to reduce expenditure. Yesterday (11) 18:00, "First Financial Daily" from the Olympus headquarters in Tokyo, Japan to know the exact source of the lay-offs of two factories in China are: Guangdong Province is located in Nanshan District, Shenzhen Nam Tau Fifth Olympus Industrial Zone (Shenzhen) Industrial Co., Ltd. and is located in Panyu District, Guangzhou City Yingbin Road Olympus (Guangzhou) Industrial Co., Ltd., mainly through layoffs "control the employment of new staff" and "employment contract does not expire further update "to complete the natural decline.

Olympus global scope to lay off 4,000 people_World light industry
 

Armand2REP

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Read the topic... if it isn't foreign firms leaving China, it don't go here.
 

Armand2REP

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Multinationals retreat from China

Several multinational companies began retreating from China last February, when US consumer-electronics retailer Best Buy closed all of its outlets in China. Next, the US soda-maker Pepsi Cola sold its bottling operations in China to the China-based Taiwanese company Tingyi on Nov. 4.

One month later, global food giant Danone suspended operations of its Shanghai company on Dec. 5. By the end of that month, the world's largest food and nutrition company, Nestle, suspended the sales of its ice cream in eastern China.

With the withdrawal of overseas companies, foreign direct investment in China has slowed as well, reports the China Economic Weekly in Beijing, citing statistics edited by the Ministry of Commerce, which show that foreign direct investment grew by 9.72% in 2011, compared to 17.4% in 2010.

The weekly ascribed the retreat to foreign investors' realization that China is no longer a lucrative, newly emerging market. It noted that the days when investors could easily earn a profit of 15-20% were gone.

Citing a survey by the Economist Intelligence Unit among 328 multinational companies in China, the weekly said competition in the Chinese market has intensified as the country works to move toward an economy based on the technology industry.

China no longer offers preferential treatment to foreign investors and limits the industrial sectors foreign nationals can invest in, now imposing stricter environmental-protection requirements.

The weekly cited a senior executive at a multinational company as saying that Chinese authorities began to levy the same taxes and surcharges on both foreign and domestic companies from 2007 onwards, increasing his company's tax burden considerably.
 

Armand2REP

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Suddenly, China's Car Market Falls Apart

One reason investors like to own General Motors (NYSE: GM) stock is that that company is the leading car manufacturer in China, when its local partners' sales results are added to its own. Chinese sales are a primary reason investors like Volkswagen. And investors carefully watch whether Ford (NYSE: F) and Toyota (NYSE: TM) can challenge the market share of the two incumbents.

The trouble with relying on China as the future of the global car industry is that the people in the People's Republic have lost some of their voracious appetite for new vehicles. The China Association of Automobile Manufacturers reports that, in January, sales of cars and light vehicles dropped 23.8% year-over-year. Analysts blamed the lunar holiday. But sales rose only 5% in all of 2011. So, the market has softened considerably.

China may produce sales of 18 million vehicles per year, well above the 13 million or so in the U.S. But car companies realize that American car sales are rising rapidly, while Chinese sales are not. The U.S., just two years ago the black hole of car sales, has become a foundation for revenue of multinational manufacturers. China has become a market where large investments in factories and marketing is a problem, at least for awhile.

Another challenge for foreign car companies in China is that local companies have grown tired of watching manufactures from the U.S., Japan and Europe exploit their market. All of the large local firms have learned manufacturing from their joint venture partners like GM and VW. That gives them the ability to stand on their own, and that can only hurt the sales of outsiders.

China has lost some of its luster for foreign car companies — that is, sales there have faltered — for a a number of reasons. Among them is that China's middle class faces the effects of an economic slowdown and an inflation rate that hit 4.5% last month. And many Chinese cars are still relatively new. The factor of the replacement of cars that are six years or older, which is the cause for much of the improvement in sales in the U.S., is not as large a factor in China. There, the really huge volume in annual sales only happened in the past several years. The Chinese may not be ready to trade their cars in yet.

China, once the biggest hope for sales by global car companies, cannot sustain the revenue increases that the industry hoped it would.

Douglas A. McIntyre

Read more: Suddenly, China's Car Market Falls Apart - 24/7 Wall St. Suddenly, China's Car Market Falls Apart - 24/7 Wall St.
 

Godless-Kafir

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Even if China loses some luster in its car market, who would want to get out of an massive consumer market like China?
 

SPIEZ

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Why si this happening. And when is India's turn ?
 

Armand2REP

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Chinese economy is stalling, it isn't nearly as profitable as it used to be.
 

trackwhack

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China have the financial muscle and expertise to replace all these corporations with local ones who will end up out-competing these giants in the future. Stop dreaming of a China crash, the only way to beat China is to outperform them in cost and quality.
 

Armand2REP

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Kodak to close all digital camera factories in China

Kodak to be announced stop the production digital camera

freePRnow.com, 2/14/2012 - February 9,, kodak announced in the first half of this year will be gradually exit digital camera research and development and the production field. According to kodak (China) relevant controller introduces, withdraw from the kodak digital camera business.

As the film giant once and the inventor of the digital cameras, digital wave in under the impact of, kodak on January 19, file for bankruptcy. The enterprise after it filed for bankruptcy and looking for a way to reduce costs. The company, in the near future the kodak theater in Hollywood end of sponsorship contract.

Kodak is expected to finish this "discontinued" plan, loss of about $30 million of additional expenses and income, but also is expected to save more than 100 million dollars a year of the operation cost. But does not explicitly production brought kodak layoffs cost, and kodak overseas factories closed cost.

Eastman kodak company spokesman said before, is seeking to cut costs method, give up this business will have $30 million spending, but is expected to save $100 million annual can operating costs.

Kodak to be announced stop the production digital camera
 

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