China's Education Market

Despite the size and diversity of China’s education system, there is substantial demand for overseas education due to a small number of places available per capita. Since most urban families have only one child because of China’s family planning policy, parents tend to give their children the best education they can. Recent surveys have indicated that children’s education is the top investment priority of Chinese families, ahead of buying houses, saving for retirement and all other investment options.

China has an excellent education system; however, China’s domestic education system struggles to expand to meet demand. There are currently not enough places for students wishing to enter university for the 150 million people in the 17–24 age group looking for opportunities in higher education.

In addition to the fierce competition for university places, China has also realized the importance of vocational and adult education. There is a potentially huge demand from mature age students (ie. 24 years and over) that is currently not being met.

The role of the government in China is far more substantial than in the USA and there is government involvement in most activities that involves foreigners or overseas organizations. The government relationship is crucial, both for student flows to the USA and for all other aspects of the USA education relationship, including the in-China provision of courses.

Higher education comprises junior college, Bachelor, Master and Doctoral degree programs. In 2006, there were 1,147 junior colleges and 720 universities countrywide offering 5,460,500 places for junior college and bachelor programs; 56,000 places for doctoral programs; and 342,000 places for master programs. Included in these colleges and universities are more than 317 research institutions approved by the Ministry of Education.

Medium level colleges offer certificate courses which, however, cannot be converted into diploma courses. The medium level professional schools and technical colleges offer basic to intermediate vocational training, both long term and short-term courses. Since the 1980s, there has been a rapid increase in the level of government recognition regarding the importance of Chinese vocational and technical education, and there has also been a sharp increase in the number of students attending such courses.

In 2006, there were 18.1 million students enrolled in 14,693 vocational and technical schools nationwide.

Higher level vocational and technical schools cater for more sophisticated vocational training such as IT or sophisticated manufacturing. The courses can also generally be taken at diploma level. There are currently 921 higher level vocational and technical education institutions in China.

USA is one of the leading foreign providers of courses in China. During the last five years, there has been a dramatic increase in student visa applications to study in the USA. For information about China's Education Market webinar, please log on http://www.midwestUSAChina.com

ADD ABG TO YOUR BUSINESS RELATIONSHIP WITH CHINA

Artisan Business Group is a consulting and advisory services headed by China expert Mr. Brian Su. We assist small and mid-sized business in capturing opportunities in the People's Republic of China through advising them on issues of Chinese market entry, government regulations and risk management.

With China's entry into the WTO and billions of dollars in foreign investment, China is becoming the World's Manufacturing Factory; the country's hosting of the 2008 Olympics and the 2010 World Fair will provide new growth opportunities for many small and mid-size companies. In order to benefit from this emerging market, American executives and entrepreneurs must combine proper business analysis and solid communication with the Chinese counterparts. We are your bridge to the new emerging markets in China, we are here to assist you achieve that goal.

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Is your company currently engaged in or planning to do business with China?
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Do your key managers and employees interact with a significant number of Chinese counterparts?
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Have you encountered communication difficulties when working with people from China, i.e. meeting expectations, defining deliverables?

China is one of the most exciting markets in the world. It is also one of the most challenging. The Chinese are smart, touch negotiators. Understanding how to do business effectively with the Chinese is essential in today's competitive marketplace.

We focuses on working with clients through training, consulting and coaching. Our goal is to assist non-Chinese business managers, who do business directly or indirectly with businesspeople in China, develop an understanding of how business is done and how to be successful. Our major services include:

China Advisory & Consultancy

* Market research & entry strategy
* Finding the right partners in China
* Credit checks & taxation advice
* Identifying suitable areas and premises in China
* Recruitment under Chinese employment laws
* Management briefings, orientation & mentoring
* Intellectual property issues

Sourcing Development

* Identify the most-reputable and best-qualified factories & ensure high-quality results for your products
* Lower material costs with competitive pricing negotiated on your behalf from the factories
* Set up and facilitate a relationship between two parties
* Develop and promote products to the Chinese market
* Product promotion party & exhibition arrangements with potential clients and government officials

Other Consulting Services

* Provide translations services
* Offer in house workshops and online services
* Help set up dependable business networks in China
* Assist travel and trip arrangements, including pre-departure orientation sessions
* Offer pre-departure orientation and counseling
* Website translation and content localization
* Services on a retainer basis available

Visit us at http://www.midwesetUSAChina.com

China's Automotive Market

The automotive industry is one of China’s designated ‘pillar’ industries. It accounts for between two to four per cent of China’s total industrial output and employs approximately 300,000 people within 130 key automotive original equipment manufacturer (OEM) companies. It is predicted that China’s vehicle production is estimated to grow to eight million vehicles by 2008-2010.

The manufacturing of passenger cars is one of the national priorities, particularly in Shanghai, Changchun, Wuhan and Guangzhou where dominant international players such as Volkswagen, General Motors, Citroen and Honda have established production facilities.

In addition to those major players, many local automotive manufacturers such as Chery Auto, Geely Auto, Zotyr Auto, etc are growing quickly. Chery plans to raise its annual automotive output to 1 million vehicles by 2010. Chery’s current annual automotive production is around 400,000 vehicles.

China’s automotive component industry is quite segmented with approximately 2000 large and medium-sized automotive component manufacturers. There are also over 1000 small manufacturers across China operating under separate industry administrations but supplying to the automotive industry. The industry is focused on safety systems, new material utilisation and environmentally friendly technologies such as alternative fuel systems for motor vehicles.

China’s automotive industry has undergone major restructuring at the central government level and the State Economy and Trade Commission is now responsible for the industry in terms of ‘macro’ planning. This move is seen as a ‘decentralization’of power to provincial government and automotive industry departments.

For more information, please contact us.

Biotechnology Market in China

The Chinese Government has targeted biotechnology as a priority, along with information and communications technology. Incentives, development programs, education and training, research and development, and the commercialization of new products, technologies and services are being actively encouraged by the government.

Pharmaceuticals is one of the fastest growing industries of biotechnology in China. In the current China pharmaceutical market, 'me too' products represent 90 per cent of total market. Chinese relatively low R&D investment means China has very few of its own patented drugs on the world market. This situation has been a major concern of the Chinese Government resulting in the concerted effort to make biotechnology a key driver in health care and the drug industry in future years.

In 2006, the domestic pharmaceutical industry grew rapidly and annual production reached around A$88 billion, at 18 per cent growth. Biological products increased 21.7 per cent totaling A$6.6 billion, and medical devices increased 27 per cent totaling A$7.1 billion. Biotechnology application in agriculture has progressively increased, with a focus in areas such as rice and cotton.

With China’s rapid economic development, per capita incomes continue to increase, particularly in major urban centers. Better health care products and services are an increasing focus for wealthy citizens. Biotechnology is therefore expected to continue to grow at over 10 per cent per year for the next five to 10 years. At the same time, biotech resources and manpower are being consolidated into major centres such as Shanghai, Beijing, Guangzhou, Shenzhen, Changchun, and Shijiazhuang.

For more information about China's biotechnology market, please contact us.

Missouri Governor, Chinese Agencies Sign Agreement To Promote Trade

Missouri Gov. Matt Blunt signed an agreement on March 26 with China’s Investment Promotion Agency and the Trade Development Bureau, on behalf of that nation’s Ministry of Commerce, that could make St. Louis a new transportation hub for trade with China and increase exports between Missouri and China. The memorandum of understanding document was signed following a series of meetings with Chinese officials led by Gov. Blunt and U.S. Senators Kit Bond (R-Mo.) and Claire McCaskill (D-Mo.). The governor and senators last week led a bipartisan delegation of government, business, and civic leaders from the St. Louis area on a trade mission to China.

“Missouri workers are the most productive employees in the world, and I am pleased to promote our state’s workforce around the globe,” Gov. Blunt said. “This agreement is a result of our meetings with the Vice Minister of Commerce and promises to foster a long and beneficial relationship between Missouri and China that will open new markets for Missouri-made products, generate more opportunities for Missouri workers, and showcase the countless benefits of doing business in and with our state.”

“The creation of a Sino-American import-export hub in St. Louis will mean hundreds of new jobs for Missourians and just makes economic, commercial, cultural, political and strategic sense,” U.S. Sen. Kit Bond said. “By improving trade between our countries, we can create jobs here at home for Missourians and a more sustainable and long-term relationship that benefits the U.S. and our strategic interests.”

“This is an important milestone toward leveling the playing field for trade with China,” U.S. Sen. Claire McCaskill said. “I’m happy to be working in a bipartisan way to enhance the opportunity to export manufactured goods and agricultural products from Missouri, which will help our economy and create jobs here at home.”

The memorandum of understanding agreement outlines ways to strengthen the relationship between China and Missouri through new initiatives in trade and economic development. Calling St. Louis “the traditional center of the United States,” it says St. Louis “can serve as an important center for expanding two-way exchanges and investment between China, Missouri, and the Midwest.” It also says, “Lambert St. Louis International Airport can become a potential center for Chinese airfreight and passenger flights.”

The memorandum of understanding further states that a delegation of the Chinese Ministry of Commerce will visit Missouri to review and assess the opportunities for expanding trade and investment promotion activities in agriculture, high-tech equipment and other manufactured goods, financial services, manufacturing, parts assembly, and real estate. It calls for continuing efforts to “foster a long-term, friendly and cooperative relationship and to develop a healthy partnership between China, Missouri, and the Midwest region of the United States.”

Joining Gov. Blunt and U.S. Senators Bond and McCaskill on the trade mission and for the meetings that resulted in the signing of the memorandum of understanding include: U.S. Rep. Russ Carnahan (D-Mo.); St. Louis Mayor Francis Slay; St. Louis County Executive Charlie Dooley; and former Mo. Gov. Bob Holden, who serves as the Vice Chairman of the Midwest U.S.-China Association and was invited by Gov. Blunt. Business leaders include Richard C. D. Fleming, president and CEO of the St. Louis Regional Chamber & Growth Association (RCGA); David L. Steward, chairman and CEO of World Wide Technology; and executives with Pfizer, Peabody Energy, Unigroup, McEagle Properties, the World Trade Center St. Louis, and Lambert St. Louis International Airport.

“This is an outstanding agreement for the whole St. Louis area,” St. Louis Mayor Francis Slay said. “Our goal is to create good paying jobs in St. Louis. China’s interest is in developing the St. Louis area as a major point of access for trade in the United States. We believe we have taken an important step toward the goals of both sides.”

The RCGA’s Fleming commented, “We have shown the Chinese that the St. Louis area’s role and position in the United States–embodied in our region’s brand, ‘Perfectly Centered. Remarkably Connected’–make us a natural hub as they seek to expand their trade with the U.S., especially our exports. The St. Louis area is at the center of a 20-state global market that accounts for 43 percent of the U.S. population, 40 percent of its Gross Domestic Product, and 40 percent of U.S. agriculture. This market–equal in area to India and in production to Japan and Mexico combined–is not well-served by the two coasts. Our geographical location and superb transportation assets make us a natural.”

St. Louis County Executive Charlie A. Dooley said, “We are extremely pleased with the details of the memorandum of understanding and I know our entire Missouri delegation believes that it signals a very encouraging trend with our friends here in China.”

The trip was a follow-up to the visit to St. Louis last February of Zhou Wenzhong, China’s Ambassador to the United States. That visit, the first by a Chinese ambassador to St. Louis in memory, resulted from an invitation by the two senators and was hosted by the RCGA. During his two days in Missouri, Mr. Zhou received briefings on the area’s transportation assets and from executives at such companies and organizations as Monsanto, Pfizer, Bunge North America, Washington University, Webster University, the University of Missouri, Barnes-Jewish Hospital, the Danforth Plant Science Center, and others.

Missouri Department of Agriculture Director Katie Smith also led a feed-related mission in mid-March to Vietnam to assist Missouri companies and suppliers in developing sales to Vietnam’s feed industry. More information can be found in our coverage of that trip.

ABG Signed New Online Marketing Contract with Armbruster Mfg. Co.

Artisan Business Group reached an marketing agreement with Armbruster Manufacturing Company, a world leader in large tent manufacturing. ABG will be responsible for promoting and marketing its products to global market.

ABG Signed New Online Marketing Contract with Solomon, Saltsman & Jamieson

Artisan Business Group signed a new agreement with the Law Offices of Solomon, Saltsman & Jamieson, a California based law firm. ABG will assist Solomon, Saltsman & Jamieson in developing an effective Internet marketing strategy and marketing its services to prospective clients in California.

Meeting with Milwaukee Int'l Trade Center

Brian Su, President of Artisan Business Group, held a meeting in Chicago with Mr. Robert K. Feldman, COO of Milwaukee International Trade Center, a federally approved EB-5 Regional Center in Wisconsin. Both parties discussed possibility for a new partnership in attracting investors from China and Asian countries.