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GM’s Biggest Growth Market Is Now China

Since the days when Henry Ford set up his first factory, the United States of America has been the single largest market for automobiles in the world. With America facing a deep recession, US auto sales have fallen by as much as 37% this past month compared to year ago numbers resulting in the US, for the first time, losing its position as the world’s number one car market. For the month of January, more cars were sold in China than in the United States. Japan’s auto market ranks third in size behind the US and China.

In part that’s due to the Chinese government cutting the tax rate on new car purchases, previously at 10%, in half. Although still lower than China’s January 2008 sales totals, January 2009 saw relatively strong auto sales performance once the tax cut was announced. The Associated Press reports that General Motors (GM) expects Chinese auto sales for all of 2009 to eclipse US sales by more than a million vehicles. If those numbers prove accurate, it is not likely that the US will ever regain the lead since the market penetration of automobiles in China is still very small.

China, of course, has a total population that is more than four times greater than the population of the US and has been executing a long term economic policy encouraging domestic consumption. China would like to rely less on its foreign exports for its continued economic growth and more on its own domestic markets. Yet its auto industry is still largely reliant on technology borrowed from western companies. General Motors has invested heavily in China and sold over a million vehicles in that country in 2008. The Chinese government is, however, intent upon developing its own auto technology infrastructure and is committing billions of Yuan toward technology modernization efforts in the industry this year.

China has also made huge investments in roads and highways in its major industrial areas in the last decade and modern highways, even by US standards, now lay waiting for increased traffic. A visit to the industrial areas in the countries south, however, finds a mish mash of old and new, with overloaded bicycles and scooters weaving in and out between compact cars, large trucks, and stripped down tractors as the agrarian economy gives way to industry.

China, not M&A, is AZ’s promised land

By Tracy Staton

You all know what AstraZeneca CEO David Brennan said last week about big mergers: Not for us; we don’t need it. So what does it need to do to overcome the litany of challenges that face every drugmaker these days? In an interview with The Economist, Brennan says AstraZeneca will cut costs–he doesn’t need a merger to make the company more efficient–plus increase sales in emerging markets. And then there’s the good old “boost innovation” goal (isn’t that on everyone’s list?)

AstraZeneca is in the middle of a big-time cost-cutting plan, and the company announced more layoffs last week to bring the total number of axed jobs to 15,000 over five years. In another move to shrink expenses, AstraZeneca is moving manufacturing to developing countries. China, for instance, which serves Brennan’s cost-cutting push and his emerging-market sales goals. It just expanded a factory outside Shanghai, for instance, which will supply drugs throughout Asia now, and aims to export to Europe by 2012 or 2013. In 10 years, one-quarter of AstraZeneca meds may come from China.

The drugmaker, you’ll recall, made a big move into China years ago, and it’s been building on that presence ever since. It uses tried-and-true pharma sales techniques on Chinese doctors, and it’s working; sales there are growing at a faster-than-average clip. In a market where cronyism and kickbacks used to rule, pharma detailing and sales conferences seem like out-of-this-world professionalism, the magazine notes.

We’ll let you check the article for Brennan’s innovation plans. Hint: They include selective biotech buyouts.

China advances vocational training to help laid-off workers

About 4 million laid-off worker in China attended vocational training for reemployment in 2008, the Ministry of Human Resources and Social Security said Monday.

Another 400,000 received education to start self-employed business, which encouraged individuals to be their own bosses and make a living, the ministry’s spokesman Yin Chengji said.

“We have set up special funds and are using social unemployment benefits to strengthen training for workers. We also emphasize vocational training for the laid-offs, especially the migrant workers,” Yin said.

He said the training would cushion the impact of the global financial crisis and was aimed at stabilizing the employment situation in the country.

East China’s Shandong province had organized training programs for 230,000 laid-offs last year, and 75 percent of those trained found new jobs, according to local government figures.

The Ministry of Finance also said in mid-January it would play a leading role in creating jobs in government-initiated projects such as civil infrastructure building and environmental protection.

Deputies call for guarantee of jobs for migrant workers

The Shanghai municipal government should set aside certain employment vacancies for migrant job seekers after the Spring Festival holiday, three migrant worker deputies to the city’s people’s congress suggested.

With the worldwide financial crisis showing no signs of slowing down, migrant workers returning home are worried about losing their jobs after coming back from the holiday, according to Zhang Xiongwei, Hong Gang and Pan Aifang, the three people elected to represent the city’s five million migrant workers before the local legislative body.

“The government should do something to make them go home happily and come back with a hope (to find a job). Migrant workers make a huge contribution to Shanghai’s fast development,” Zhang said.

The deputies said some vacancies at construction projects of infrastructure facilities and at services in which the government pays to take care of the old, poor and sick should be set aside for them.

The government should include unemployed migrant workers in the city’s reemployment services system, in which the government trains and helps the unemployed find jobs, they added.

“I also suggest the government take measures to ensure a stable job market and prevent companies from taking advantage of the crisis to lay off employees,” Zhang said.

In the annual sessions of Shanghai Municipal People’s Congress last month, Mayor Han Zheng said migrant workers, white-collar workers and university graduates face the most difficulty in securing employment, and more efforts should be made.

He said the government would subsidize companies to maintain full employment, help train the unemployed and provide better services and more loans for people to start their own businesses.

The three deputies said they have not seen a large amount of migrant workers being laid off in Shanghai. “But the worst time has not come yet,” Zhang said.

China to build 5,000 internship bases for youths

China is to build up to 5,000 “bases” in 2009 to provide internship positions for the young to better prepare them for the job market as it feels pain amid the global financial crisis.

The Chinese Communist Youth League, a government body for work related to the young, will coordinate in recruiting qualified companies and individuals, the League said on Monday.

The youth leagues at municipal or provincial levels will select suitable companies to form the “bases”, businesses or sets of businesses which will be able to provide positions for at least 10 interns each year with basic living allowances.

Qualified candidates for the intern positions are job-hunting fresh university or vocational school graduates, those who have failed to find a job since graduation, young laid-off workers, and young migrant workers.

The first group of nearly 2,000 such bases are already selected and made public, offering about 60,000 positions in the industries of finance, publishing, telecommunications, manufacturing and transportation.

The aim of this move is to ease the employment pressure and achieve a win-win situation between the companies and the youths, according to the Youth League.

The Ministry of Human Resources and Social Security said on January 20 that there would be 7.1 million college graduates seeking vacancies this year, including 1 million of those having failed to secure jobs last year.

The ministry also said, as of the end of 2008, there were 8.86 million urban residents registered as jobless, 560,000 more than the end of the third quarter.

Govt to provide incentives to job-seeking college graduates

China’s State Council announced over the weekend a plan to provide incentives to job-seeking college graduates, including professional training and preferential loans for start-ups.

The government said it would help train one million unemployed college graduates in the coming three years to make them better qualified for jobs.

The Cabinet also said that civil service posts and state-owned companies should not charge job application fees from college graduates whose families are in financial hardship.

For graduates who are willing to work in rural areas or join the armed forces, the loans for completing their college education might be partially or fully waived, the notice said.

Labor-intensive companies are also encouraged to recruit college graduates, with preferential government loans up to two million yuan ($293,000) for each company.

Any graduates who are willing to kick off their own business would qualify for small loans of 50,000 yuan each.

The Ministry of Human Resources and Social Security said that as of December 31, there were 8.86 million urban residents registered as unemployed, 560,000 more than at the end of the third quarter.

Premier Wen welcomes foreign talents

Premier Wen Jiabao has welcomed foreign talents to start, as well as develop their careers in the country.

Addressing 19 foreign experts who have helped China’s reform and opening up, Wen said the government is committed to its economic policy.

China will stick to the opening-up policy and continue introducing advanced foreign technology and expertise in management to secure powerful intellectual resources and maintain a steady economic growth. The government will also try hard to create a favorable working condition for foreign experts in China, he added.

CSRC shortlists ‘840 in US’ for jobs

The China Securities Regulatory Commission (CSRC) has reportedly shortlisted about 840 executives from the US financial sector to work in China.

The CSRC is on a mission to the US to recruit about 1,700 such executives, mostly ethnic Chinese, threatened by the economic crisis.

The commission’s team is now in Chicago after interviewing 150 candidates in New York from Jan 17 to 19.

Another team, commissioned by 20 financial institutions from Shanghai, was in the US last month.

The ongoing overseas drive will not be the last, a CSRC official said, because the China Banking Regulatory Commission, China Insurance Regulatory Commission and the People’s Bank of China are planning similar missions to the US.

The CSRC recruits will get one year to adapt to China’s working environment. During that period, they will work as research consultants for CSRC’s capital market planning and development committee.

After a year, they can opt to work for CSRC’s other divisions, or the Shanghai or Shenzhen stock exchanges – or choose to continue their research work.

“Faced with uncertain times, many overseas Chinese in the US financial sector are looking for openings back home. They just need a channel to do so,” said Chen Xunyong, chairman of Wall Street Ren, one of the largest financial associations of ethnic Chinese in the US.

Over 100,000 jobs were lost in the US financial sector in 2008, and more are likely to be cut this year, Challenger Gray & Christmas Inc, a Chicago-based placement agency, has said.

But not everyone has welcomed the overseas recruitment drive. For instance, Cai Jiaqi, of Shanghai’s municipal committee of the Chinese People’s Political Consultative Conference, advises caution.

“Some overseas experts may use the ‘financial alchemy’ they have learned on Wall Street to harm, rather than benefit, Chinese companies,” Cai said.

Management Reporting Manager (fi200sh)

Job Title: Management Reporting Manager
Location: Shanghai?China
Our client is a leading global pharmaceutical, biopharmaceutical and medical Device outsourcing company. It mainly provides clients laboratory and manufacturing services to help them shorten the time and lower the cost of drug and medical device R&D. Their mother company is a New York Stock Exchange listed company. Because of their business expansion, they are looking for talents to join them.
Responsibilities:
1. As a key member of the Finance Team in a fast-growing company, this individual has overall Group-level’s management reporting responsibilities. Responsibilities include the following, but not limited to:
2. Provide overall management reporting, including financial data analysis, P&L forecast,
3. Work with BU heads to set up and monitor KPI’s
4. Own Group-level annual budgeting and budget analysis process
5. Control CAPEX budget and drive fixed assets efficiency
6. Support quarterly Earnings Releases
7. Supervise Group-level project costing process
8. Lead revenue recognition and revenue forecast
9. Coach and develop subordinates
Qualification:
1. 6 or more years of experience in Finance related field, with 3+ years experience as a financial analyst/manager in multi-national companies, Fortune 500 preferred.
2. Master degree in Finance or Management Science, chemistry, biochemistry or pharmaceutical sciences and MBA preferred
3. Strong experience in budgeting and costing
4. Excellent analytical and problem-solving skills
5. Strong communication skills in both English and Chinese
6. Work independently under pressure, strong ability to handle multi-tasks
7. Can-do attitude, fast learner
8. Chemistry, Biology industry knowledge or experience is a plus, but not required
9. Solid skills in Microsoft Excel & PowerPoint1. Assist treasury director to manage and control cash flow of each BU
* Please send us your complete resume (in Chinese and in English) to: ‘topjob_fi200sh@dacare.com'(Please replace “#” with “@”)
* In the email subject please include the position name and job #

Companies cut executive pay

Many companies in the country are resorting to executive pay cuts to deal with the global economic slowdown, executives and human resources managers have said.

The moves are reportedly being made in industries such as aviation, steel, power generation, petrochemical, finance, information technology, securities and real estate.

Similarly, Chinese companies including State-owned enterprises (SOEs) are planning to scale back their reward schemes for staff this year as they find ways to cut costs, industry observers have said.

Sany Heavy Industry Co, one of the country’s largest heavy machinery manufacturers, made headlines recently when its chairman Liang Wengen offered to cut his salary this year to 1 yuan, while the company cut other board members’ salaries by 90 percent.
Leading aluminum producer Chalco reportedly plans to cut executive pay by as much as 50 percent, after profits plunged last year on declining metal prices.

China Eastern Airlines’ management teams are also expected to have their wages slashed by up to 30 percent, local media reported.

Human resources experts told China Daily such moves showing executives’ efforts to share some pain with rank-and-file employees can shore up goodwill among employees, when broader pay cuts and workforce reductions are announced.

“But such moves will not necessarily drag these companies back to the black. It is just one of the many strategies they have to take,” said Luo Zhongwei, a senior researcher with the Chinese Academy of Social Sciences.

Luo said the deteriorating economic situation could also force some companies to reflect upon their operations.

“Fast growth can cover up a lot of problems. Some of our employees were spending lavishly. These problems are exposed when the outside environment worsens. We must execute cost-saving initiatives now,” said Duan Dawei, Sany’s vice-president and finance director.