US-China Trade Update 3-13-2012: The iPad and Michael Jordan: Intellectual Property Debates in China

Intellectual property issues in China continue to garner news. Micheal Jordan announced he is suing a Chinese sportswear maker, Qiaodan Sports,for trademark infringement.  He claims that company is using  his name without authorization. And Apple is appealing a Chinese court ruling that the iPad trademark belongs to a mainland unit of Proview International Holdings Ltd.  When Apple purchased the rights, the Shenzhen subsidiary was controlled by creditors including Bank of China Ltd. and China Minsheng Banking Corp.  The current dispute revolves on whether Proview’s Taiwan unit, to which Apple paid to use the iPad name in China, had the right to sell it or whether the Shenzhen unit and its creditors maintained that right.  According to Bloomberg Businessweek,Apple has urged Chinese courts for ‘fair and just’ ruling in the case.

 

Meanwhile, World Bank President Robert Zoellick weighed in on concerns regarding the Chinese economy.  According to Zoellick, China will probably see little slowdown in growth this year.  He tempered his statement by saying the Chinese government "needs to overhaul its economy to manage expansion over the next two decades."All this and much more in this week’s U.S. China update.

Contents
Economy
Trade

Economy  

In the News - China’s Holdings of Treasuries Dropped in ’11
Bloomberg Businessweek, February 29, 2012
"China, the largest foreign U.S. creditor, reduced its holdings of U.S. government securities last year for the first time since the Treasury Department began compiling the data in 2001." Read more

In the News - Apple Urges China Court for ‘Fair and Just’ Ruling in IPad Case
Bloomberg Businessweek, February 29, 2012
"Apple Inc. urged a court in southern China to deliver a “fair and just” ruling in its dispute with the local unit of Proview International Holdings Ltd. over ownership of the iPad trademark in the country." Read more

In the News - China Property Curbs Showdown Simmers After Wuhu Retreat
Bloomberg Businessweek, February 29. 2012
"China’s local municipalities will press on with efforts to ease property curbs that have slowed the land sales they rely on for revenue, even after two cities retreated in the face of opposition from the central government." Read more

In the News - China Property Curbs Showdown Simmers After Wuhu Retreat
Bloomberg Businessweek, February 29,  2012
"China’s local municipalities will press on with efforts to ease property curbs that have slowed the land sales they rely on for revenue, even after two cities retreated in the face of opposition from the central government." Read more

Commentary - Massoud Hayoun: What China's Talking About Today: The Rising Cost of Living
The Atlantic, February 29, 2012
"The country's Twitter-like microblog starts a conversation about livable wages and disposable income in the world's powerhouse economy." Read more

Commentary - Damien Ma: What It Means to Be a Rising Public Intellectual in China
The Atlantic, February 28, 2012
"In a provocative op-ed in The New York Times on February 16, writer Eric X. Li argued that China's authoritarian, hybrid capitalist system is superior to America's liberal democratic system. As if that weren't enough, Li's column even went so far as to declare that the 1989 Tiananmen Square crackdown was justified." Read more

Commentary - Evan A. Feigenbaum: Understanding China's Economic Challenge and Why It Matters
The Atlantic, February 28, 2012
"Chinese leaders must slow their country's growth and transform how their economy functions." Read more

In the News - China Money Rate Reaches Three-Week Low After Reserve-Ratio Cut
Bloomberg Businessweek, February 28, 2012
"China’s money-market rate touched a three-week low on speculation the supply of cash is increasing since the reduction in banks’ reserve ratios took effect." Read more

In the News - China Lures U.S. Pilots Tired of 14-Year Wait for Captain’s Seat
Bloomberg Businessweek, February 28,  2012
"Kent John Krizman has spent 13 years as a co-pilot at American Airlines. For a chance to move across the cockpit, he’s ready to take a job in China." Read more

In the News - China Must Change to Spread Benefits of Growth, Zoellick Says
Bloomberg Businessweek, February 28, 2012
"World Bank President Robert Zoellick comments on China’s growth, changes needed in the structure of the nation’s economy and the fiscal system to reduce inequality. He spoke to reporters in Beijing today." Read more

In the News - China’s Billionaire Congress Makes Its U.S. Peer Look Poor
Bloomberg Businessweek, February 28, 2012
"The richest 70 members of China’s legislature added more to their wealth last year than the combined net worth of all 535 members of the U.S. Congress, the president and his Cabinet, and the nine Supreme Court justices." Read more

 In the News - China May Have ‘Soft Landing’ in Near Term, Zoellick Says
Bloomberg Businessweek, February 28, 2012
"China will probably see little slowdown in growth this year even as its government needs to overhaul its economy to manage expansion over the next two decades, World Bank President Robert Zoellick said." Read more

In the News - China’s Yuan Strengthens on Oil Price Decline, U.S. Home Sales
Bloomberg Businessweek, February  28, 2012
"The yuan gained the most in a week as oil prices declined and an increase in U.S. home sales added to signs of a recovery in China’s biggest export market." Read more

In the News - China Finance Pay to Grow by Double Digits, Says Robert Walters
Bloomberg Businessweek, February 28, 2012
"Pay for newly hired senior investment professionals in China and emerging Asian countries may see double-digit growth this year as banks in the region compete for talent and avoid European debt crisis fallout." Read more

 In the News - China Growth Model Must Rely More on Markets, Zoellick Says
Bloomberg Businessweek, February 27, 2012
"China’s economic-growth model isn’t sustainable and needs changes so the nation can better transition to a market-oriented system, World Bank President Robert Zoellick said." Read more

 In the News - Mao’s Red Flag Returning to Drive China Leaders From Audi: Cars
Bloomberg Businessweek, February  27, 2012
"Chairman Mao Zedong’s Red Flag limousine is making a comeback after a $280 million overhaul, seeking to regain its standing as the ride of Chinese leaders from Volkswagen AG’s Audi." Read more

 In the News - China Calls Romney Opinion Piece Irresponsible, Groundless
Bloomberg Businessweek,  February 27, 2012
"Comments by Republican presidential candidate Mitt Romney about China in an opinion piece were irresponsible and groundless, Chinese Foreign Ministry spokesman Hong Lei said today in Beijing." Read more

In the News - China to Impose Quotas on Renewable Energy This Year, News Says
Bloomberg Businessweek, February 27, 2012
"China will this year implement a quota-based system for provinces and cities that dictates the amount of renewable energy that they need to consume, buy into their grid and produce, the China News Service reported, citing Ren Dongming, director of the renewable energy development center of the National Development and Reform Commission." Read more

 Commentary - The World Bank: China: The Case for Change On the Road to 2030
The World Bank, February 27, 2012
"China should complete its transition to a market economy -- through enterprise, land, labor, and financial sector reforms -- strengthen its private sector, open its markets to greater competition and innovation, and ensure equality of opportunity to help achieve its goal of a new structure for economic growth… [according to] a joint research report by a team from the World Bank and the Development Research Center of China’s State Council." Read more

  In the News - China Carmakers May Face Overseas Hurdles, European Chamber Says
Bloomberg Businessweek, February 27, 2012
"China’s exclusion of foreign automakers from a proposed list of fleet suppliers may prompt other countries to make it harder for the nation’s carmakers to expand, the European Union Chamber of Commerce in China said." Read more

 In the News - China Swaps Drop Most in a Week as Cut to Reserves Takes Effect
Bloomberg Businessweek, February 27, 2012
"China’s interest-rate swaps declined the most in a week on speculation money supply will improve after the cut in banks’ reserve requirements took effect." Read more

Commentary - Arvind Subramanian: Oops, I Underestimated China’s GDP
Peterson Institute, February 26, 2012
"It turns out that I have understated China’s GDP, possibly substantially. In a new and important paper, Robert Feenstra and three co-authors argue that the IMF’s estimate of China’s GDP for 2005 (which is basically the World Bank’s estimate for that year) may have been underestimated by as much as 50 percent." Read more

Commentary - Gordon G. Chang: How Will China Pay Off Its Debt?
Forbes, February 26, 2012
"Here’s some terrific news about China’s economy: at the end of last year, the debt-to-GDP ratio of the Chinese government, the key measure of its fiscal sustainability, stood at 16.3%.  That’s an improvement from the already impressive 17% at year-end 2010…  The 16.3% calculation excludes Beijing’s “hidden liabilities.”  Once you add them in, China’s debt-to-GDP ratio increases to somewhere between 90% and 160%." Read more

In the News - No Company Follows Apple's Expanded China Factory Audits
Bloomberg Businessweek, February 26,  2012
"Apple Inc.’s rivals aren’t rushing to emulate the iPhone maker’s decision to subject supplier factories to audits by a labor group. Instead, they’re sticking to internal checks that may leave room for violations—and negative public relations fallout." Read more

In the News - International Financial Markets Still Volatile, China’s Xie Says
Bloomberg Businessweek, February 26, 2012
"International financial markets continue to be volatile and protectionism is rising, China’s Finance Minister Xie Xuren said in Beijing." Read more

In the News - Zhou Says China Will Do Its Part to Increase IMF Resources
Bloomberg Businessweek,  February 26, 2012
"China will do its part to boost resources for the International Monetary Fund, the country’s central bank Governor Zhou Xiaochuan told reporters in Mexico City at the end of a Group of 20 summit." Read more

In the News - China’s Growth May Slip to 8.6% This Year on European Slowdown
Bloomberg Businessweek,  February 25,  2012
"China’s economic growth may slip to 8.59 percent this year due to slowing in Europe, while inflation will ease to 3.3 percent, according to a Xiamen University and National University of Singapore joint forecast." Read more

In the News - MGM China Rises to 5-Month High on Profit Surge: Hong Kong Mover
Bloomberg Businessweek, February 25, 2012
"MGM China Holdings Ltd., the Macau venture between Pansy Ho and the biggest casino operator on the Las Vegas Strip, rose to the highest in five months in Hong Kong trading after reporting 2011 profit more than doubled." Read more

In the News - China’s Official-Vehicle Purchases Include Only Domestic Brands
Bloomberg Businessweek, February 25, 2012
"China issued a preliminary list for official-vehicle purchases this year that excludes all foreign brands." Read more

In the News - Chevron Starts China Shale Gas Exploration, Builds Sichuan Plant
Bloomberg Businessweek, February 24, 2012
"Chevron Corp. said it began exploring for shale gas in China, holder of the world’s biggest reserves of the fuel, and expects to start a natural gas processing plant in the country next year." Read more

Commentary - Nicholas Borst: Capital Account Liberalization and the Corporate Bond Market
Peterson Institute, February, 24 2012
"The People’s Bank of China (PBoC) released a report (Chinese language) this week that focused on prospects for capital account liberalization. Opening up the capital account would be a major reform, perhaps the most significant in a more than a decade. It would give Chinese savers an escape hatch from financial repression and force the reform of the financial sector." Read more

In the News - China Luxury Pits L’Oreal Against Chiang Kai-Shek Kin: Retail
Bloomberg Businessweek, February 24, 2012
"Global brands from L’Oreal SA to Gucci face new competition in their race for a share of the $33.7 billion Chinese luxury market: homegrown Chinese brands." Read more

In the News - Hong Kong Stocks Advance as U.S., China Data Lifts Confidence
Bloomberg Businessweek, February 24. 2012
"Hong Kong stocks gained as a leading economic indicator for China increased at a faster pace and after U.S. jobs and housing data beat projections, adding to signs the global economy is recovering." Read more

In the News - Ford Opens Plant in China, Increasing Capacity by a Third
Bloomberg Businessweek, February 24, 2012
"Ford Motor Co. opened its third passenger-car factory in China today, increasing the automaker’s manufacturing capacity in the country by a third to more than 600,000 vehicles annually." Read more

 In the News - Apple’s IPad Trademark Battle Unveils Bank of China as Opponent
Bloomberg Businessweek, February 23. 2012
"Apple Inc.’s legal fight for the iPad name in China doesn’t just pit the world’s most-valuable company against a failed Hong Kong display maker. Some of the nation’s biggest banks also are opposing the technology giant." Read more

In the News - Michael Jordan Wants Respect for his Brand in China
Bloomberg Businessweek, February 23,  2012
"On Feb. 22, Jordan announced he is suing a Chinese maker of sportswear and shoes, Qiaodan Sports, for allegedly using his name without authorization." Read more

In the News - China Central Bank Study Urges Relaxing Curbs on Capital Flows
Bloomberg Businessweek, February 23, 2012
"China has a “strategic opportunity” now to relax restrictions on capital flows to take advantage of lower values of Western companies and elevate the yuan’s role in international trade, a central bank study said." Read more

 In the News - Wen Seen Setting China Growth Target Below 8% in 2012: Economy
Bloomberg Businessweek, February 23, 2012
"China’s Premier Wen Jiabao is seen signaling next month that curbing pollution, inequality and the risk of financial instability eclipse the benefits of faster economic growth, a survey of analysts indicated." Read more

In the News - China Big 4 Banks Had $49 Billion Deposits in 20 Days, 21st Says
Bloomberg Businessweek, February 23, 2012
"China’s four biggest banks attracted 310 billion yuan ($49 billion) of deposits in the first 20 days of February and advanced 75 billion yuan of new loans in the period, the 21st Century Business Herald reported." Read more

Commentary - Chas Freeman: Why America's China Strategy Is All Wrong and How to Fix It
The Atlantic, February 23. 2012
"Forty years after Nixon went to Beijing, the U.S. must again rethink its approach to Asia." Read more
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Trade

In the News - China’s Stocks Snap Eight-Day Rally on Housing Policy Reversal
Bloomberg Businessweek, February 29,  2012
"China’s stocks fell, dragging the benchmark index lower for the first time in nine days, on concern the government will retain measures to curb gains in housing prices this year." Read more

In the News - Sina’s Weibo Outlook Buoys Internet Stock Gains: China Overnight
Bloomberg Businessweek, February 29, 2012
"Chinese Internet stocks climbed, led by Sina Corp., after the company said its Twitter-like Weibo service may start contributing to sales in the second half." Read more

In the News - Most Chinese Stocks Fall on Concern Rally Overvalues Earnings
Bloomberg Businessweek, February 27, 2012
"Most Chinese stocks fell as some investors speculated the benchmark index’s rally to a three- month high excessive relative to earnings prospects." Read more

In the News - China’s Copper Demand Growth to Rebound on Clean Energy Use
Bloomberg Businessweek, February 27, 2012
"Copper consumption growth in China may rebound in the next few years on accelerating demand from the renewable energy sector and special industries, according to Nexans SA, the second-largest cable and wire maker." Read more

In the News - China Stock Index Rises to Three-Month High on Policy Outlook
Bloomberg Businessweek, February 27, 2012
"China’s benchmark stock index rose to a three-month high on expectations the government will further loosen monetary policies to spur economic growth." Read more

In the News - China Thermal Coal Price Falls for Third Week as Stocks Rise
Bloomberg Businessweek, February 27,  2012
"Benchmark thermal coal prices at China’s Qinhuangdao, the nation’s biggest delivery port for the fuel, fell for the third week as inventories continued to climb on slowing demand." Read more

In the News - China Stock Index Rises to Three-Month High on Policy Outlook
Bloomberg Businessweek, February 27, 2012
"China’s benchmark stock index rose to a three-month high on expectations the government will further loosen monetary policies to spur economic growth." Read more

In the News - China Buying Higher-Sulfur Crude for Stockpiles, Journal Reports
Bloomberg Businessweek, February 27, 2012
"China started buying higher-sulfur crude to fill its emergency oil-storage reserve, China Business Journal reported on Feb. 25, citing people involved in the purchase that it didn’t name." Read more

In the News - China’s Cheap Stocks to Extend Rally, ABN Amro’s Roth Says
Bloomberg Businessweek, February 24, 2012
"China’s shares are still undervalued after this year’s rally and may extend gains as easing inflation allows the government to adopt more fiscal policies to boost economic growth, said ABN Amro Bank NV’s private bank unit." Read more

In the News - China’s Stocks Rise, Capping 6th Week of Gains; Developers Jump
Bloomberg Businessweek, February 24, 2012
"China’s stocks rose, capping a sixth week of gains for the benchmark index, on speculation local governments are relaxing restrictions on the property market and an improving global economy will spur Chinese exports." Read more

In the News - China Stocks: Chongqing Brewery, Poly Real Estate, Shenhua
Bloomberg Businessweek, February 24, 2012
"Shares of the following companies had unusual moves in China trading. Stock symbols are in parentheses as of the close." Read more

In the News - China Oil-Product Stockpiles Gain Amid Weaker Demand, NDRC Says
Bloomberg Businessweek, February 24,  2012
"China’s oil-product stockpiles increased last month as demand weakened during the Chinese New Year holiday, according to the country’s top economic planner." Read more

In the News - Asian Stocks Drop on U.S. Housing Data, China Slowdown Concern
Bloomberg Businessweek, February 23, 2012
"Asian stocks declined as sales of previously owned homes in the U.S. trailed estimates and on speculation China’s Premier Wen Jiabao will set a lower target for economic growth this year." Read more

In the News - Copper Drops for Second Day on Bets China’s Demand Will Ease
Bloomberg Businessweek, February 23, 2012
"Copper futures fell for the second straight day on speculation that demand will ease in China, the world’s biggest consumer of industrial metals." Read more
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