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Matrix opens Nanjing IT training center, a joint venture with PTL Group

Posted by PTL Group
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on Monday, 07 July 2014
in Business in China

IT integrator Matrix IT unit John Bryce Hi-Tech College and PTL Group have opened new training center in Nanjing in collaboration with the Nanjing Quality & Inspection Center, which authorizes every software product developed in the city before marketing.

The new center in Nanjing is another milestone passed since Matrix's entry into China over six years ago. Matrix started with establishing John Bryce Colleges in Shanghai and Beijing and today serves international clients such as Intel, SAP, EMC, Autodesk, and Adobe, as well as Chinese corporations such as China Mobile and ZTE. To date, John Bryce China has trained over 8,000 senior high-tech engineers. A year ago, Matrix and PTL Group launched a Development Center for Mobile Apps in Changzhou.

China’s 12th Five-Year Plan - Part 3

Posted by Tyler Kretzschmar
Tyler Kretzschmar
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on Monday, 13 May 2013
in Business in China

This is Part 3 of a 3-part series on the 12th Five-Year Plan.

Part 1 simplifies and summarises the plan, and Parts 2 & 3 will discuss the importance of the Plan for those interested in the Chinese market.

Click here for image source.

What does the Five-Year Plan mean for SMEs looking to enter the China market?

One thing that SMEs must be aware of is the rising cost of doing business in China. One of the implications of higher quality of life in China is increased wages, meaning increased production costs in the manufacturing sector. Some estimates show that the cost of labour has increased by 20 percent annually since 2008. And despite any delays in carbon tax, environmental awareness is sure to come at least partially at the expense of companies as well. These changes correspond to the shift toward high-tech manufacturing, as companies in low-end sectors will likely find it difficult to profit as they have in the past.

China’s 12th Five-Year Plan - Part 2

Posted by Tyler Kretzschmar
Tyler Kretzschmar
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on Tuesday, 07 May 2013
in Business in China

This is Part 2 of a 3-part series on the 12th Five-Year Plan.

Part 1 simplifies and summarises the plan, and Parts 2 & 3 will discuss the importance of the Plan for those interested in the Chinese market.

How has the 12th Five-Year Plan developed since its implementation?

The Five-Year Plan is not set in stone. As a drafted document to oversee social and economic development over the course of five years for the most populous country in the world, a certain level of coordination with local governments through supplementary and supporting legislation, as well as flexibility with the Plan are paramount to its success. As such, some aspects of the Plan drafted in 2011 are today, in 2013, slightly different after re-evaluation.

China’s 12th Five-Year Plan – Part 1

Posted by Tyler Kretzschmar
Tyler Kretzschmar
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on Saturday, 27 April 2013
in Business in China

This is Part 1 of a 3-part series on the 12th Five-Year Plan.

Part 1 will simplify and summarise the plan, and Parts 2 & 3 will discuss the importance of the Plan for those interested in the Chinese market.

This is an abridged version; for more information on the background and specifics of the 12th Five-Year Plan click here: chinas-12th-five-year-plan-part-1.pdf


Background & Overview

A term synonymous with China’s continuous development strategies, the 12th and current Five-Year Plan breaks from tradition and acts as a milestone in Chinese policy-making;  a shift in the path that China has been on for more than three decades. First approved on March 14, 2011, the partly philosophical and partly strategic programme encompasses a mix of goals, benchmarks and principles for the Chinese top and local government bodies to follow regarding the social and economic future of the country, between 2011 and 2015.

The Philosophy behind the Plan

China may have escaped some of the more drastic consequences of the global financial crisis that affected markets around the world in 2008, however given the globalised nature of the world’s markets, a Chinese economy that is based heavily on exports would undoubtedly suffer if foreign countries stopped importing goods. Economic stability is one of the key goals for Chinese policy-makers, something that cannot be achieved when GDP relies so heavily on demand outside of one’s own borders. In 2011, the US, Europe and Japan accounted for 48 percent of China’s exports, highlighting the need for a GDP base that is less reliant on countries whose economies are struggling.  

Capitalising on China’s growing middle class – estimated to reach 700 million by 2020 – constitutes using a different model than one of growth solely focused on exports and investments. Thus, looking at private domestic consumption as a new primary market feature is imperative in building a stable and well-rounded Chinese economy.

What are the key economic aspects of the 12th Five-Year Plan?

Compared to previous Plans, the 12th envisions more broad based developments in the economy as opposed to simply attaining specific levels of growth. Looking at the future of the country, the Plan’s overarching themes seek to promote sustainable growth and development for a well rounded economy and an improvement in the overall quality of life for Chinese citizens.

Entering the Chinese market: more challenges, more rewards

Posted by Tyler Kretzschmar
Tyler Kretzschmar
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on Monday, 22 April 2013
in Business in China

The global financial crisis and the fast growing Chinese consumer market, as well as the abundant wealth available for investment in China today, amplify the growing need to penetrate and operate in the Chinese market. It is no secret that China offers numerous opportunities to expand a business; however what remains a mystery for many small and medium sized enterprises (SMEs) is how to effectively address the challenges of entering and operating in China.

One such challenge is the growing market itself, giving way to an increasing number of competitive local companies. The 12th Five Year Plan that laid the roadmap for China’s social and economic development for 2011-2015 shifted the focus of the Chinese policy makers to the strengthening of China’s dynamic new homegrown companies, referred to in China as Domestic Private Enterprises (DPE), both home and abroad. In 2010, 60 percent of China’s GDP came from DPEs – this is in striking contrast to the 38 percent they contributed in 2005. The fact that GDP is expected to quadruple itself between 2007-2025 also gives perspective into the business threats facing foreign companies in China and in home markets in the next few years.

Furthermore, the 12th Five Year Plan’s goal to increase the overall quality of life for Chinese citizens is creating higher operating costs in some sectors. One example is minimum wage increases (up to 13 percent each year), translating into more costly production in many of the developed manufacturing hubs along the coast. Another is China’s goal of a 40 percent reduction in carbon-dioxide emissions per unit of GDP by 2020, constituting elevated environmental taxes for manufacturers. 

Cina, un mercato di opportunità e di rischi. Ma non cogliere l’opportunità è il rischio maggiore.

Posted by Tiziana Cantoni
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Ovvero io, che raccolgo, approfondisco ed elaboro quello che sento, leggo, sperimento e lo trasformo in post, ...
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on Monday, 18 March 2013
in senonCINAsci

È iniziato l’anno del serpente in Cina, ma il governo cinese prosegue sulla vecchia strada che ha come meta il portare la Cina ad essere un mercato di consumi. Facciamocene una ragione: saranno i nostri nuovi clienti. E quello che non vorremo vendere loro, impareranno a produrselo. Per poi probabilmente rivendercelo.

The Israeli robotics industry is aiming to the Chinese Market

Posted by Lily Li
Lily Li
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on Tuesday, 19 February 2013
in Business in China

On January 7, 2013, Mr. Zvi Shalgo the chairman of the Israeli Chamber of Commerce in Shanghai and the CEO of PTL Group was quoted during a special meeting organized by the Israeli Robotics Association as saying “Foxconn is not alone! The giant Chinese company is intending to replace its workforce by a million robots by the end of 2014. “This reflects a growing trend in China: large local companies are now investing in robotics and automation, because of the dramatic increase in wages."

He said: "Since the new regulation of labor laws in China, which led to a radical increase in salaries, many enterprises have collapsed. The Chinese industry sees robots as a solution to the diminishing workforce problem. Due to the policy of 'one child' in China, the working age population shrinks, which will naturally lose the demographic advantage. " 

Mr. Zvi Shalgo, who introduced the principles of management in China, which are very different from those found in any other market, said "Your initiative and technology is the only competitive power you have in China, so, do not share it with foreign partners." PTL Group of Companies has developed over the years under a model allowing Israeli companies to enjoy a risk reduction investment along with responsible growth in China, without giving their technology to a Chinese partner. On the other side, the partnership with the local government which is willing to spend on benefits and incentives (millions of dollars) to attract industries with unique technology does not require a technological partnership in return. This option therefore is recommended.

Another speaker was Dror Marom, CEO of ACS (Motion Control) who has been operating in China for two years. The company develops motion control systems for the electronics, semiconductor, medical scanners, and digital printing market. Until 2010, ACS had two distributors in China, but given its results, the company realized that only a local presence would achieve a successful outcome. The company now operates in China through PTL Group in order to save the investment required in establishing its own subsidiary in China. PTL Group provides a total management shell including recruitment, handling administrative matters and personnel, finance and office management, so that local workers recruited are only concerned with managing sales. Marom also mentioned, that competition in China is tough, so "as an Israeli, your advantage is the unique technology you have, which should be kept."

2012 Honorary Citizen of Changzhou

Posted by Lily Li
Lily Li
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on Saturday, 05 January 2013
in Business in China

On Dec 18, 2012, Mr. Zvi Shalgo, CEO of PTL Group, was bestowed the title of “Honorary Citizen of Changzhou” during an official ceremony involving a number of foreign companies, in the Changzhou Shangri-La Hotel. The Changzhou Honorary Citizen Award is the highest distinction in recognizing the extraordinary contribution made by expatriates to the city of Changzhou.

Perchè in Cina il buon senso degli imprenditori stranieri si azzera?

Posted by Tiziana Cantoni
Tiziana Cantoni
Ovvero io, che raccolgo, approfondisco ed elaboro quello che sento, leggo, sperimento e lo trasformo in post, ...
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on Monday, 15 October 2012
in senonCINAsci

Già sapete che vado alle fiere di Shanghai per cercare potenziali clienti, ma anche per farmi un’idea di cosa bolle nel gran pentolone delle aziende italiane che intendono muoversi in Cina.
Devo dire che sembra bollire molto buon senso. La maggior parte delle aziende é consapevole dei rischi che corre ad entrare nel mercato cinese ed è preparata. Il marchio è registrato, un po’ di studio del terreno su cui si andrà ad operare fatto, piccoli test non compromettenti per saggiare l’andamento del business eseguiti. Inoltre sanno del rischio che corrono nel vedersi il proprio know how rubato e sembrano essere saggi nel muoversi decisi, ma cauti. Insomma sembrano essere sul pezzo. Sembrano.

First Annual China Business Summit Held in Israel

Posted by Elena Luk'yanenko
Elena Luk'yanenko
Elena has more than five years of experience in international marketing providing services for the foreign com...
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on Thursday, 18 August 2011
in Business in China

RAMAT GAN, ISRAEL, JULY 27 - The 2011 Annual Conference on Business in China held in cooperation with the Israel Export Institute and the Israel Manufacturers Association gathered more than 550 business owners, senior managers and academics in Leonardo City Tower.

Among the subjects discussed were the:

  • Latest economic and commercial developments in China
  • Business models applicable to the Chinese market
  • The Chinese 12th five-year plan (2011 - 2015) - its principals and the implied business opportunities
  • Chinese investments in Israel: source of apprehension or an opportunity?
  • Credit insurance - what are the possible courses and available solutions for Israeli companies?
  • Intellectual property issues - what is new in China in this aspect?

Among the Speakers were:
Avi Hefetz, director General at the Israel Export and International Cooperation Institute, Dan Katarivas, head of the foreign trade department at the Israel Manufacturers Association, Nili Shalev, head of supportive tools formation at the Foreign Trade Administration at the Israeli Ministry of Industry Trade and Labor, Adv. Ashok Chandrishikar, Haim Cohen, CEO at D&B - Dun and Bradstreet, Yacov Pedhatzur, CEO at Netafim Asia, Zvi Halamish, CEO of Ashra and more.

Zvi Shalgo, founder and CEO at PTL Group, participated in a panel of CEOs from Israeli companies already active in China. He presented the Changzhou Industrial Incubator Initiative (CI3) as a way of dealing with local competition, and explained how this new model helps foreign manufactures to reduce the initial investment and risks associated with entering a complex and unfamiliar market.

He also mentioned that "foreign companies now require local manufacturing investments to maintain their competitive edge, but many Israeli companies shy away from investment in manufacturing in China because of uncertainty regarding the success of sales. The new Industrial Incubator allows the beginning of production in small series and subsequent increases depending on the volume of sales in the Chinese market, without the high investment required for setting up a factory."

Posted by Elena Luk'yanenko
Elena Luk'yanenko
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on Wednesday, 14 July 2010
in Business in China

The task of building a factory becomes more complex in China. It is imperative to have the right skills, knowledge, experience regarding each stage in the process of setting up a new entity in order to obtain the best possible site and agreement. Undertaking such a task in China requires an in-depth understanding of cultural differences, local regulations, negotiation processes and management strategies in addition to experience and connections in the local markets. The key to success of any industrial construction project lies in proper financial management, which should not be neglected.

This article covers the following stages of industrial project management:

  1. Picking the right site for your business
  2. Negotiations
  3. Construction
  4. Management