Stay Connected through WTCSD  Join Our Network on LinkedIn Like Us on Facebook View Our Blogs Follow Us on Twitter Watch Us on YouTube See Us on flickr Sign-up for The Trader
WTCSD Home

ASIA DESK BLOG


<< First  < Prev   1   2   3   4   5   Next >  Last >> 
  • 18 Oct 2013 4:36 PM | Programs WTCSD (Administrator)
      As Tokyo cheers for proudly being selected as the city to host the 2020 Olympics, the sporting industry also sets off into an eruption of excitement as a perfect marketing opportunity arises. It is not merely the surge of immense pride that a nation experiences in being able to host such a major event as the Olympics that rouses a crowd, but also the enormity of the publicity on an international scale that amps the viewership and participation in sports. The world’s eyes are set hard and consistently on the games for the short duration of around two-weeks. It is not merely the athletes’ performances that the viewers will be attentive to, but also the sponsors that the athletes will be representing and the commercials presented throughout the major event by large sponsors of the Olympics.

     

    Aside from the general immense marketing opportunity the typical trend of the Olympic Effect has on a global scale, Tokyo as the announced host of the 2020 Olympics may actually spell for a particularly greater potential opportunity for the sporting industry.

     

    The sports market in Asia has generally been considered to have the largest sector in sponsorship amongst others in the global community. Sponsorship is particularly an advantage for major events such as the Olympics because this not only allows for brand recognition, but also a deeper attachment and sense of loyalty to brands from fans through the surge of emotion running throughout the games. The sentiment correlated to the Olympic Games adds a certain brand value to the sponsors and while viewers may not be able to actually participate in these events, merchandising allows viewers to immerse themselves into the games to an assessable degree.

     

    Recent trends have changed as now Asia has been experiencing a shift towards an increase in sports apparel and equipment consumption for the sporting industry market. As the economy rises alongside individual incomes, more individuals have time and money to spend on leisure activities such as hiking or camping. South Korea, for example, has noticed a significant demand for brand name sportswear. Just as locals in Seoul can be seen wearing the latest European luxury brand on the streets, seeing locals dressed in the latest high-end sportswear is becoming more and more common now. Since South Korea’s hosting of the Olympics in the 1980’s, people were inspired to improve their lifestyle and turn towards a more physical style of living. Even during the Asian financial crisis in 1997, despite the massive amounts of layoffs, the South Koreans were motivated to stay positive by “remain[ing] healthy for a comeback”, resulting in an increase in people participating in more physical activities. South Korea has since noted an explosion of market growth in the sporting industry from $1.1 billion in 2006 to $5.3 billion in 2012. Sports apparel has now become such a large trend in South Korea that it has not only swept the outdoor scene, but also the streets as more and more young trendsetters are being seen dressed in sportswear on the casual daily.

     

    On another interesting note, domestic sports brand marketers in South Korea have been using professional athletes to model their brand, and have even partnered with local gyms and popular yoga professionals, allowing for the already popular aspect of sponsorship that allows sports industries to thrive in Asia to go hand-in-hand with this surge of consumer interest in sports apparel.

     

    Japan is facing similar circumstances to that of South Korea as they begin preparing for the Tokyo 2020 Olympics and continue making efforts towards economic reform. As preparations follow for the Tokyo 2020 Olympics, this may provide an extremely lucrative opportunity for international sports manufacturers. By beginning to participate in the Japanese market, sports manufacturers will experience an even greater increase in sales by meeting consumer demands reinforced by the hype of the Olympics.

     

    Sources and Related Articles:

    http://www.theguardian.com/business/2012/sep/20/retail-sales-drop-olympic-olympic-effect

    http://www.nber.org/papers/w14854.pdf?new_window=1

    http://www.pwc.com/en_GX/gx/hospitality-leisure/pdf/changing-the-game-outlook-for-the-global-sports-market-to-2015.pdf

    http://www.academia.edu/1197323/The_relationship_between_sponsorship_and_sporting_events_the_case_of_Mcdonalds_sponsoring_the_Olympics

    http://asiarisingtv.com/south-korea-is-the-new-frontier-for-sportswear-brands/

    http://www.koreatimes.co.kr/www/news/biz/2013/10/123_143586.html

    http://money.cnn.com/2013/10/01/news/economy/japan-tax-stimulus/index.html?hpt=ias_c2

     

  • 26 Jun 2013 2:37 PM | Programs WTCSD (Administrator)
    As China is becoming increasingly more urban with higher consumption rates, more cars on the road, and problematic air pollution, the problem is clear.

    On June 7th 2013, some of the largest energy companies in the world--GE, Dupont, and Sinopec--came together in Chengdu for the purpose of discussing
    the increasingly large problem in China and the possibility of creating a sustainable energy future. During the conference, Sinopec suggested that while energy renewables--such as solar, wind, etc.--are important, enforcing energy efficiency of greater importance. “We can cut our energy needs by two-thirds through efficiency,” says Sinopec chairman Fu Chengyu. How? Tougher environmental standards, for one, which would stop excesses of pollution, and two, encouraging foreign investment which would bring clean technology from abroad, promoting it domestically. According to Fu, “the central [Chinese] government has made the environment its top priority.”

    Controversially, Minxin Pei alludes that government policies, standards, and clean-energy spending are useless unless China’s government is more open with the subject of pollution. For example, the government’s secrecy and deception have caused a failure to give timely warnings of toxic spills to the public in Beijing. There is rebellion towards this secrecy in many areas of the country’s population. Chinese journalists and NGOs are working to expose their government’s environmental scandals. And citizens, particularly the rising middle class, are becoming less tolerant of their government’s economic motto: economic growth at all cost.


    For the reason of secrecy, among others, China-United States relations regarding renewable energy are somewhat troubling. There are evident trade tensions which reveal issues between the two. For example, the Committee of foreign investment in United States (CFIUS) often reject Chinese investors, and such rejection is often perceived as problematic by the Chinese. In addition, there is the issue of industry competitiveness versus combating climate change, specifically regarding implications of dumping solar panels. Cases like these occasionally promote disagreement between the United States and Chinese investors. However, on a more positive note, President Obama and President Xi have recently created a US-China joint statement towards combating climate change.


    President Obama and President Xi have just announced a statement for combatting climate change that incorporates multilateral cooperation. US and China will work together to phase down the consumption and production of hydrofluorocarbon (HFC)--a form of potent greenhouse gas. This plan may reduce 90 gigatons of CO2 by 2050.

    The more daunting reasons for the sudden U.S.--China statement includes the dangers presented by climate change, and the inadequacy of the global response. The measure that the US and China will now take, as agreed upon, is a Climate Change working group. The purpose of this group is to prepare for the 2013 Strategic Economic Dialogue where they will present the issues at hand and what needs to be done. In order to prepare for this presentation the measures include: taking stocks of climate change company cooperation and calculating the economic and climate potential, as well as identifying possible areas for action (both environmental and economic) through joint international and private-public partnerships. The U.S. hopes this collaboration with China will help build trust and respect through a common interest--an environmentally clean way to increase economic growth.

    Along with the Obama-Xi statement towards a cleaner energy solution, President Xi JinPing's has his own reforms. Among them, his first is to reduce atmospheric pollution and increase the safety of food and water. Upon meeting with the Chinese State Council, they agreed and approved ten anti-pollution measures, which will go towards reducing greenhouse gas emissions, as well as increasing the government's investment in cleaner energies. One reason for such action, other than the increasingly harmful pollution over the last few years, is the fear that the Chinese Communist party has regarding the displeasure that the people of Beijing are feeling--they are afraid outspoken Beijing-ers will breakdown social order. For this reason, among others, president Xi JinPeng claims that China will not sacrifice the environment for economic benefits any longer.


    China is well known for being the first in attracting clean energy investment, and is also becoming a global force in investing in clean energy elsewhere. They have made 124 investments in solar and wind industries in 33 host countries. The effect this investment has on China includes the fact that energy investments will increase, positively building an economy for sustainability, and furthermore having a positive impact on the climate. Yet, there are three challenges that face China in their investment endeavors. Firstly, if the host government is not strong, they will not protect the small social communities or their environments. Secondly, small and medium-sized Chinese companies will not heed environment protection in host countries, as they already do not in their home country. Finally, investment treaties and environmental agreements sometimes do not add up, which can end up being problematic for the climate and/or environment of a host country.


    President Xi, within his first reform, has outlined guidelines from the Chinese Ministry of Environment Protection. On the 18th of February this year, twenty-two articles were issued to regulate all Chinese enterprises, both domestic and abroad, in their industries for the purpose of environmental protection. The reasons, and hopeful outcomes, for these sudden guidelines include: regularizing environmental protection in foreign investment and cooperation, identifying (through research or cooperation) and preventing environmental risks, promoting a positive international Chinese image, and supporting sustainable development in host/foreign countries.


    As a major energy consumer, China is trying to raise the proportion of clean energy in its total mix. For example, domestically they have targeted Shale gas, a type of easily accessible natural gas. However, they have approached three obstacles: 
    infrastructure construction, technology barriers and water shortages. For these reasons, they have also decided to look and invest abroad.

    China’s recently acquired goal is to by 2020 get 15% of energy from renewable sources, and by 2050 to get 30-45% (World Resources Institute). Therefore, China would be making clean, renewable energy resources the main domestic source for energy. Specifically, China has already begun investing in solar and wind industries for this purpose. Their interest in solar and wind is due to many different conditions--first of all, the macroeconomic conditions. The appreciation of the RMB in comparison to the USD has caused a very positive outlook on business and industries that invest in a China-U.S. relationship. In addition, the industry conditions--both domestically and internationally--promote a desire for overseas investment and trade, for example, when the manufacturing capacity exceeds domestic demand. This subject relates to the idea of local government policies “pushing” Chinese companies towards international business, and overseas government policies “pulling” these Chinese investors.


    The political “pushing” of the Chinese government urges local companies to invest overseas. The reason for this is the opportunity that international business holds for China’s overall growth and its role in the global economy. Policies such as the “Go Global” strategy of 2001 raise the issue of investing overseas as a “national strategic priority,” and are linked to China’s state owned banks (World Resources Institute). Thus, local companies of all sizes are strongly motivated by the government to expand their businesses globally. Furthermore, this desire for Chinese business elsewhere is mirrored by the “pulling” of other countries for Chinese investors. The “pulling” is deliberately represented through different policies, either explicitly such as in the form of tax breaks, or implicitly in the form of bilateral agreements. The several countries that attract overseas investments offer such policies as incentives for “win-win” situations between host country and investor.


    Investments of cleaner energies from China also rely on industrial markets--solar and wind power. While solar and wind industries are both forms of highly demanded renewable energies, the demands of the two markets is very different. The demand for solar energy depends very much on international sales, as it is more an industry based on trade. Wind on the other hand depends on the domestic market, and is instead a cross-border investment meaning that when the manufacturing capacity exceeds domestic demand, then the industry branches out. Such investing of solar and wind industries overseas can lead to a variety of positive outcomes, the main being: the retaining and expanding of industries and markets, the acquiring of new technologies from pacts, the acquiring of undervalued assets during financial crisis, and the creation of a demand for the exportation of certain products.


    One of San Diego’s major industries happens to be clean technology. In particular, San Diego leads California in terms of overall solar generation capacity. “If San Diego were a country,” San Diego Regional says, “it would rank among the top 25 nations in the world in terms of solar capacity.” This, along with the fact that China is currently the world’s number one clean energy manufacturing nation, could promote trade relations between China and San Diego.


    Just a few days ago, Chinese consul general Yuan Nansheng and California Governor Jerry Brown met on Tuesday June 11th for the purpose of discussing clean energy, consequentially also forming bilateral trade cooperation. California is the biggest exporter to China in the United States. As a result of their meeting, the two authorities hope to bring more investment from China to California for cooperation on clean energy, and clean technology, among other areas. One example of this relationship already in progress is the reopening of the Shanghai trade office. This is the beginning of the U.S. and China working together to develop and promote new, cleaner technologies.

    Works Cited:
    The Dividend Daily. GE Committed to Investing in Clean Energy Projects in China.
    CNN Money. Immelt: GE to ‘double down’ on Clean Energy in China.
    CNN Money. China’s Environment: An Economic Death Sentence.
    Ministry of Commerce People’s Republic of China. Notification of the Ministry of Commerce and the Ministry of Environmental Protection on Issuing the Guidelines for Environmental Protection in Foreign Investment and Cooperation.
    WRI Insights. China Invests Billions in International Renewable Energy Projects.
    People’s Daily Online. China Steps Up Search For Gas.
    WRI Insights. Why is China Investing So Much In U.S. Solar and Wind?
    The White House. United States and China Agree to Work Together on Phase Down of HFCs.
    U.S. Department of State. Joint U.S.-China Statement on Climate Change.
    China Daily USA. Brown and Chinese consul talk clean energy and IT.
    Eco-Business. Clean Energy Expo China (CEEC) 2013.
    Biz Trade Shows.Clean Energy Expo China.
    Clean Energy Expo China.
    World Resources Institute. China’s Overseas Investments in the Wind and Solar Industries: Trends and Drivers.
    San Diego Regional. Clean Tech.
    Sunshine Coast Daily. China orders its industries to cut pollution.
  • 17 Jun 2013 1:51 PM | Programs WTCSD (Administrator)
    The leaders of the Group of Eight countries are set to gather for a summit in Northern Ireland on Monday to discuss ways to spur world growth, with Japanese Prime Minister Shinzo Abe aiming to explain his economic policies to his fellow leaders and make them an international commitment.
    Syria, where more than two years of civil war has sparked a humanitarian crisis, is expected to top the agenda on regional affairs to be discussed by the leaders of Britain, Canada, France, Germany, Italy, Japan, Russia and the United States the same day.
  • 03 May 2013 3:34 PM | Anonymous

    Japanese Prime Minister Shinzo Abe has made a huge advance for trade liberalization in his country: Japan is on its way to join the Trans-Pacific Partnership (TPP).  His decision in joining the TPP negotiation talk has delighted many, terrorized a few, and surprised all.  Many eyeballs are locked on the next move of the world's third largest economy.

    On April 20, Abe’s administration earned its final provision of approval from Canada, the last of the 11 TPP nations to formally grant permission for Japan to join the negotiation talks.  With unilateral backing from the participant nations, Japan is expected to join the negotiations from the 18th round which is projected to take place in Malaysia on July 25.

    Although Japan had joined the TPP discussions in November 2010 as an observer country, political leaders failed to consolidate a plan to join the treaty negotiations until March 2013 when Prime Minister Abe stepped in. 

    Many critics indicate that one of the major obstacles that hindered the past Prime Ministers’ efforts in joining the TPP was the heavy opposition from the agriculture sector in Japan.  Japan Agriculture (JA), the national network of local farm co-operatives and one of the nation’s most powerful lobby groups, had played a crucial role in stopping the administrations from stepping into the TPP.  They advocate the right of domestic farmers by supporting high import tariffs on agricultural products, including a 780% tariff on rice.  The farm industry has continually warned the public that the Japanese rice production would decrease by 90-percent with the entrance of the cheap American agribusiness rice products.

    Prime Minister Abe addressed that he will bring the domestic farmer’s issues to the negotiation table, pledging to safeguard Japan’s interest.  Prime Minister Abe remarked that what Japan should really fear is not the collapse of agriculture but the “consequences of doing nothing.”

    Prime Minister Abe reminded the public that joining the TPP is the key to reviving Japan’s struggling economy.  Not only does it provide new market access opportunities for Japanese exporters amongst the TPP countries, the TPP will lead lawmakers to drive domestic economic reforms through various channels.  Japan's inclusion in the TPP is expected to liberalize the country's manufacturing and service sector by lowering tariffs rates on goods and eliminating border regulations, fostering greater competition and increase productivity of the economy.  Analysts in the Abe administration estimate a considerable boost in Japan's GDP after their inclusion in the TPP, but at a cost of potentially damaging the agriculture industry.

    Japan’s participation in the TPP has delighted Washington in the past month.  Since the United States does not yet have a Free Trade Agreement with Japan, the new TPP relationship with Japan would bring fresh economic benefits to the American companies in the form of boosted exports and increased Japanese FDI in the U.S. 

    Fumihiko Sugie, Trade Associate 

  • 23 Apr 2013 3:18 PM | Anonymous

    The World Trade Center San Diego (WTCSD) Trade Missions have been invaluable to Palomar Technologies. This is especially true in China where business and government are so closely tied. The importance of understanding the balance between business and government in this region of the world presents a formidable challenge for small companies without programs like the WTCSD Trade Missions. In order succeed in China, access to government and industry officials is imperative to business development.  The WTCSD provides this unique access. The WTCSD is viewed very positively by the Chinese government and, likewise, it is considered prestigious to be part of the WTC in China.

    Access to influential business officials and contacts in China without the visibility that the WTCSD provides would be very difficult. Having the WTCSD on your “résumé” resonates with Chinese business and government leaders.

    Palomar Technologies President and CEO, Bruce Hueners, has participated in several WTCSD Trade Missions. “The WTCSD Trade Missions are exceptionally well planned.  Both the business and social aspects continually exceed expectations,” states Hueners. “One major benefit as a result of the trips is the networking opportunities with Chinese business influencers pertinent to your business. You have the chance to meet fellow colleagues and other service providers, such as lawyers and manufacturers. As a small business operating globally, the opportunity to learn and connect with key business and government contacts in regions of the world we serve is of immeasurable value. The WTCSD Trade Missions have had a significant positive revenue/financial impact on Palomar Technologies as a result of our involvement.”

    Message from CEO of Palomar Technologies, Inc. 

    "Palomar Technologies is a world-wide microelectronic packaging solutions provider, with an installed base of nearly $500M in over 25 countries. The opportunity to learn and connect with key business and government contacts in regions of the world we serve is of immeasurable value. The WTCSD Trade Missions have had a significant positive revenue/financial impact on Palomar Technologies as a result of our involvement."

    Bruce Hueners
    President and CEO
    Palomar Technologies, Inc.

     


    Learn more about our Business Mission to Japan, May 31 - June 7 open to all industries. Deadline to apply is April 30, 2013. CLICK HERE or contact Lynn Hijar, at lhijar@wtcsd.org or my calling +619 215.9968

  • 15 Apr 2013 1:41 PM | Anonymous
    Long time user of WTC San Diego services and sponsor of our International Relations Office, Whitney Skala of Whitney Skala A.P.C. on his trip to Shanghai, China.


     
  • 18 Mar 2013 12:18 PM | Programs WTCSD (Administrator)

    WORLD TRADE CENTER San Diego will host the event, Doing Business in Japan: Culture Meets Commerce on Wednesday, March 27, 2013 from 11:30 a.m to 1:30 p.m at WTC San Diego Office (2980 Pacific Highway, San Diego, CA 92101). Ms. Diana Rowland, from Rowland & Associates, Inc. will be the Instructor to provide detail cultural information for the customs and etiquette in Japan.

    Ms. Rowland founded Rowland & Associates in 1985 as a cross-cultural consultant specializing in Japanese- American business. Over the years she has brought together a network of highly skilled and specialized trainers to address the needs of the global business environment.

    Also Asia Desk at WORLD TRADE CENTER San Diego is organizing a business mission to Japan from May 31 to June 7, 2013. Join us as we strengthen ties between San Diego and Japan, with visits to leading Japanese companies in Tokyo, Yokohama, Osaka & Kyoto.

    Industry-focused Cooperators will arrange tracks including: Life Sciences, IT & Communications, Software, Electronics, Tourism and Leisure, and may have separate meetings during the day, with a focus on increasing exports to Japan, with networking events in the evening at all.

     

    San Diego companies and business development associations with an interest in commerce, trade, and investment with Japan are invited together to present opportunities with our region.


    For more information:

    Instructor Bio

    Doing Business in Japan: Culture Meets Commerce

    San Diego Business Mission to Japan

  • 28 Jan 2013 10:34 AM | Programs WTCSD (Administrator)

    On January 30, 2013, Ethan Devine, Asia Desk Manager at World Trade Center San Diego will participate as a panelist for the first East Asia Career Panel during USC's Career Fest 2013. This event is aimed at all students interested in using East Asian language and area studies skills in their future professions and learning about the different career options available. All impressive alumni panelists come from East Asia-related professions in business consulting, international trade, non-profit, marketing, and education. The panel will be followed by a Q&A and networking opportunity.

    Click here for more information

  • 17 Jan 2013 10:01 AM | Programs WTCSD (Administrator)

    Asia Desk at WORLD TRADE CENTER San Diego will host the 9th Annual China Business Outlook conference on Thursday, February 7, 2013 from 2:00p.m to 7:00p.m at AMN Health Care (12400 High Bluff Drive San Diego, CA 92130). The conference will feature keynote speakers, a networking reception and a celebration of Chinese New Year (Year of Snake).

    This year the experts and corporate executives will chair topics on “The Chinese Economy, Chinese Investment and China Market Strategies” to provide an update on China’s changing business environment and conclude with the trends, opportunities, and challenges of doing business in China. Hope to see you there!

    Click here to register

    Click here to read more about our speakers


  • 19 Dec 2012 9:46 AM | Programs WTCSD (Administrator)
    Apple has been assembled their products in China  for year. However in a recent interview with, Apple's new CEO Tim Cook said "Next year we’re going to bring some production to the US,This doesn’t mean that Apple will do it ourselves, but we’ll be working with people and we’ll be investing our money.”

    For the United States, this certainly will create more jobs and improve the employment situation.This move could hopefully inspire other companies to move their manufacturer back in the U.S too. It also reflects the fact that Chinese labors prices are not as low as several years ago. With the increasing oil price, transportation cost has also become one of the reasons why companies are moving their factories away from China, either back in the U.S. or to the countries that are closer to the U.S.
<< First  < Prev   1   2   3   4   5   Next >  Last >> 
 
Powered by Wild Apricot Membership Software