June 5, 2006. Predeparture Research

Shenzhen:

ShenZhen NewlyEverRise Electronics Co., Ltd. - Joint venture company that manufactures power transformers, switching transformers, degaussing coils, indusctors, filters, and other electronic components for use in electrical appliances and household electrical appliances.

Q: I could not find much information on this company, but am curious as to whether the JV is between a Chinese company and an American company? I assume the JV was formed to exploit low labor costs in China. I am interested in hearing how the company plans to stay competitive in the future if and when labor costs increase in China. Flocking to China for low labor in the short term is OK, but what is their long term strategy and how are they beginning to implement it?

BBK Cell Phone Factory - This company manufactures many consumer electronics (cell phones, DVD players, mp3 players, stereos, etc.) Looking at the pictures from Dr. Carr and Dr. Wu's trip to China, the assembly line is labor intensive.

Q: I am interested in finding out if the quality of their products are sacrificed for labor intensive assembly? What are the most common problems they encounter with labor intensive electronics assembly? Do they have plans to implement more automation? (Understandably, automation and capital investments are probably too costly to implement, but what is their future plan for increasing quality and lowering costs, which are goals of every company?)

Yantian Seaport & Logistics Center - Import/export hub of Shenzhen located very close to industry and the 2nd largest port in China behind Shanghai.

Q: I wonder if the Chinese have the same labor issues we have in the US for port workers?

Shanghai:

Pricewaterhouse Coopers - Offers assurance, audit, tax, and consulting services to the many global and growing companeis in China. Based in the United States, PwC is one of the "Big Four" accounting firms and with the Chinese economy booming at an incredible rate, PwC has captured a large market share and solid reputation in China by being voted the best tax advisor of 2006 according to the Survey of Asian Tax Advisors.

Q: How have the accounting standards in China evolved within the past 10 years, given the growth of the economy, as well as accounting standards implemented in the United States due to corrupt companies?

Q: What barriers and difficulties does PwC encounter when dealing with Chinese firms, especially considering the large "guanxi" and relationships executives and managers like to develop with other firms? Does this make it difficult to produce a truthful audit?

CB Richard Ellis - The commerical real estate giant has capitalized on a Chinese-firm partnership on the growing Chinese economy by establishing itself as the leader in providing consulting services and asset management. On its Chinese website, CBRE offers many services, and even lists properties for sale and lease. They have offices located in Shanghai, Beijing, Guangzhou.

Q: What kinds of barriers are there to a foreign firm conducting real estate services in China? How has the Chinese commercial real estate market changed over the past 5 years?

Shanghai Urban Planning Exhibition Hall - Showcases the urban expansion planning designs for the city.

Q: How much of the model is actually implemented into the city planning?

HSBC - The Hong Kong and Shanghai Bank Corporation is one of the world's largest banks. HSBC has a larger presence in Asia as opposed to the United States, since it was founded overseas and has grown and expanded into the Western countries.

Q: I wonder how HSBC plans to futher establish the use of consumer credit cards in China give the country's high saving rate compared to the United States?

RR Donnelley - The commercial printing giant offers a wide variety of printing services for businesses. RR Donnelly entered the Chinese market in 1993 through a joint venture.

Q: What kind of censorship restriction does the firm face, and how closely are they monitored by the Chinese government?

Microsoft Global Technical Service Center - Launched in 1998, the GTSC provides technical support to customers all over the world - East Asia, America, and Europe. Located in Shanghai, the center employs over 500 Chinese workers.

Q: With the lack of intellectual property enforcement, how does Microsoft provide service to customers needing support despite their use of pirated software?

Carre-Four - This French retailer is the 2nd largest worldwide, and offers a wide range of items for sale in its location, similar to Wal-Mart. Carre-Four initially entered Taiwan in 1989, and has since expanded further into Asia. Opposed to Wal-Mart, who has had trouble gaining traction in the Chinese market, Carre-Four has been successful at retail in China.

Q: How does the company adapt to the cultural differences of each country it operates in, and what kind of market research does it conduct?

Shanghai Museum - Over 120,000 pieces of art are on display at this museum. It will be interesting for me to see the works of art and look at the culture my grandparents were familiar with growing in China.

Hangzhou/Suzhou:

Suzhou Industrial Park - Created in 1994 through a joint venture with Singapore, this industrial park is home to many organizations, from a motherboard manufacturing facility to a world-class golf course.

Q: What changes has the area seen during the economic boom China has recently been experiencing?

Beijing:

US Embassy/Commercial Attaché - This site offers comprehensive information for businesses looking to do enter the Chinese market. In addition, the site offers Chinese firms assistance in procuring US suppliers.

Q: I'm interested in finding out which companies this firm has helped do business in China, and to the extent of the help they offered.

Sun Microsystems Engineering Center - Sun is a major server and workstation producer, and they are also the pioneers of Java. Located near the top Chinese universities, this engineering center is the heart of innovation for Sun in China.

Q: Does the firm face similar piracy and intellectual property enfringements as Microsoft?

Beijing University - Founded in 1898, Beijing University is one of the top universities in China.

Tsinghua University - Established in 1911, this university is more focused towards government studies and politic, as well as polytechnics.

Panjiayuan Collection Market - Located in Beijing, this market deals in secondhand goods, as well as arts and crafts. Established in 1992 as a flea market by traders, it moved in 1995 to houses.