The Dragon awakes: Is Chinese competition policy a cause for concern? Bruegel Policy Contribution 2013/14, 22 October 2013

China’s Anti-Monopoly Law, adopted in 2007, is largely compatible with antitrust law in the European Union, the United States and other jurisdictions. Enforcement activity by the Chinese authorities is also approaching the level seen in the EU. The Chinese law, however, leaves significant room for the use of competition policy to further industrial policy objectives. The data presented in this Policy Contribution indicates that Chinese merger control might have asymmetrically targeted foreign companies, while favouring domestic companies. However, there are no indications that antitrust control has been used to favour domestic players. A strategy to achieve convergence in global antitrust enforcement should include support for Chinese competition authorities to develop the institutional tools they already have, and to improve merger control by promoting the adoption of a consumer-oriented test and enforcing M&A notification rules.

Post-WTO China : competition and technology transfer laws in the 'new' socialist market economy

China has been the focus of much academic and business scrutiny of late. Its economic climate is changing and its huge new market opportunities seem quite tantalizing to the would-be 'technology entrepreneur'. But China's market is a relatively immature one; it is still in the process of being opened up to real competition. The corollary of this is that, at this stage of the transitional process, there is still significant State control of market function. This article discusses Chinese competition law, the technology transfer system, how the laws are being reformed and how the technology entrepreneur fares under them. The bottom line is that while opportunities beckon, the wise entrepreneur will nevertheless continue to exercise caution.

O paradoxo nas relações comerciais Brasil e China no período 2000-2010

Pós-graduação em Ciências Sociais - FFC

Fear for Manufacturing? China and the Future of Industry in Brazil and Latin America

There has been considerable concern in Latin America over the implications of increased competition from China for local industry. These concerns include the possibility of "deindustrialization," the increased "primarization" of the region's exports and the difficulties of upgrading manufactured exports into higher technology products. This article examines the impact of Chinese competition both in the domestic market and in export markets on Brazilian industry. It documents the increased penetration of Chinese manufactures in the Brazilian market and the way in which Brazilian exports have lost market share to China in the US, European Union and four Latin American countries. Brazil, because of its more developed and locally integrated industrial sector, is not typical of other Latin American countries and the article also discusses the relevance of the Brazilian experience for the region as a whole.

Taiwanese Lobbying in the European Union: ‘Workable Diplomacy’ and its Limitations. EU Diplomacy Paper 8/2015

The policy of the European Union (EU) towards Taiwan has mostly been analysed either as a by-product of EU-China relations or with reference to the general lack of a European geopolitical approach towards East Asia. By adopting a lobbying approach which focusses on Taiwan’s different ‘channels of influence’ within the complex European foreign policy system in Brussels, this study provides new insights into the functioning of EU-Taiwan relations. It also sheds new light on the implications of the radical change in Taiwanese diplomacy after 2008, when Chen Shui-bian’s assertive and identity-based diplomacy was replaced with the Kuomintang’s new dogma of ‘workable diplomacy’. Based on semi-guided interviews with Taiwanese and European actors, this paper examines why Taiwanese lobbying in Brussels, albeit very active and professional, is not salient enough to meet the challenges arising from the overwhelming Chinese competition and from the increasing proliferation of regional trade agreements – with active EU participation – in the Asia-Pacific region. It argues that the pragmatic ‘workable diplomacy’ approach, while smoothing out working-level relations between Taiwan and the EU, fails to attract a sufficient degree of political and public attention in Europe to the Taiwan question and thus fosters the neglect of Taiwan by European foreign policy-makers. The main challenge faced by Taiwanese diplomacy, however, is not simply one of convincing through technical arguments, but one of agenda setting, that is, of redefining European priorities in Taiwan’s favour.

Competition and innovation : independent production in the Chinese TV industry

Independent television production is recognised for its capacity to generate new kinds of program content, as well as deliver innovation in formats. Globally, the television industry is entering into the post-broadcasting era where audiences are fragmented and content is distributed across multiple platforms. The effects of this convergence are now being felt in China, as it both challenges old statist models and presents new opportunities for content innovation. This thesis discusses the status of independent production in China, making relevant comparisons with independent production in other countries. Independent television production has become an important element in the reform of broadcasting in China in the past decade. The first independent TV production company was registered officially in 1994. While there are now over 4000 independent companies, the term „independent. does not necessarily constitute autonomy. The question the thesis addresses is: what is the status and nature of independence in China? Is it an appropriate term to use to describe the changing environment, or is it a misnomer? The thesis argues that Chinese independents operate alongside the mainstream state-owned system; they are „dependent. on the mainstream. Therefore independent television in China is a relative term. By looking at several companies in Beijing, mainly in entertainment, TV drama and animation, the thesis shows how the sector is injecting fresh ideas into the marketplace and how it plays an important role in improving innovation in many aspects of the television industry. The thesis shows how independent television companies in China are looking to protect their property rights. It demonstrates that far from being at the cutting edge, independents are reliant on a system that has many inbuilt structural problems. The thesis outlines many of the challenges facing 'independents'.

Competition of the mechanisms : how Chinese home appliance firms coped with default risk of trade credit?

During the transition period from a planned economy to a market economy in 1990s of China, there was a considerable accrual of deferred payment, and default due to inferior enforcement institutions. This is a very common phenomenon in the transition economies at that time. Interviews with home electronics appliance firms revealed that firms coped with this problem by adjusting their sales mechanisms (found four types), and the benefit of institutions was limited. A theoretical analysis claim that spot and integration are inferior to contracts, a contract with a rebate on volume and prepayment against an exclusive agent can realize the lowest cost and price. The empirical part showed that mechanisms converged into a mechanism with the rebate on volume an against exclusive agent and its price level is the lowest. The competition is the driving force of the convergence of mechanisms and improvement risk management capacity.

Anger and perceived legitimacy of aggression in male Hong Kong Chinese athletes: Effects of type of sport and level of competition

Problem: The vast majority of research examining the interplay between aggressive emotions, beliefs, behaviors, cognitions, and situational contingencies in competitive athletes has focused on Western populations and only select sports (e.g., ice hockey). Research involving Eastern, particularly Chinese, athletes is surprisingly sparse given the sheer size of these populations. Thus, this study examines the aggressive emotions, beliefs, behaviors, and cognitions, of competitive Chinese athletes. Method: Several measures related to aggression were distributed to a large sample (N ¼ 471) of male athletes, representing four sports (basketball, rugby union, association football/soccer, and squash). Results: Higher levels of anger and aggression tended to be associated with higher levels of play for rugby and low levels of play for contact (e.g., football, basketball) and individual sports (e.g., squash). Conclusions: The results suggest that the experience of angry emotions and aggressive behaviors of Chinese athletes are similar to Western populations, but that sport psychology practitioners should be aware of some potentially important differences, such as the general tendency of Chinese athletes to disapprove of aggressive behavior.

Chinese export competition, declining exports and adjustments at the industry and regional level in Europe

We analyze how a set of 22 European countries was affected by increased Chinese export competition between 1995 and 2008. Employing product-group level data, we observe a reduction in the export volumes of European countries due to increased Chinese export competition. This deceleration in the export sector induces changes within the manufacturing industries, especially a decline in employment. When using more aggregated, regional-level data, our analysis shows that the industry sector as a whole declines, resulting in an increased unemployment rate. The importance of Chinese export competition for Europe is attributable to its high export intensity.

Industrial land price and its impact on urban growth : a Chinese case study

China is experiencing rapid progress in industrialization, with its own rationale toward industrial land development based on a deliberate change from an extensive to intensive form of urban land use. One result has been concerted attempts by local government to attract foreign investment by a low industrial land price strategy, which has resulted in a disproportionally large amount of industrial land within the total urban land use structure at the expense of the urban sprawl of many cities. This paper first examines “Comparable Benchmark Price as Residential land use” (CBPR) as the theoretical basis of the low industrial land price phenomenon. Empirical findings are presented from a case study based on data from Jinyun County, China. These data are analyzed to reveal the rationale of industrial land price from 2000 to 2010 concerning the CBPR model. We then explore the causes of low industrial land prices in the form of a “Centipede Game Model”, involving two neighborhood regions as “major players” to make a set of moves (or strategies). When one of the players unilaterally reduces the land price to attract investment with the aim to maximize profits arising from the revenues generated from foreign investment and land premiums, a two-player price war begins in the form of a dynamic game, the effect of which is to produce a downward spiral of prices. In this context, the paradox of maximizing profits for each of the two players are not accomplished due to the inter-regional competition of attracted investment leading to a lose-lose situation for both sides’ in competing for land premium revenues. A short-term solution to the problem is offered involving the establishment of inter-regional cooperative partnerships. For the longer term, however, a comprehensive reform of the local financial system, more adroit regional planning and an improved means of evaluating government performance is needed to ensure the government's role in securing pubic goods is not abandoned in favor of one solely concerned with revenue generation.

How do Chinese fashion designers become global fashion leaders? A new perspective on legitimisation in China’s fashion system

The term fashion system describes inter-relationships between production and consumption, illustrating how the production of fashion is a collective activity. For instance, Yuniya Kawamura (2011) notes systems for the production of fashion differ around the globe and are subject to constant change, and Jennifer Craik (1994, 6) draws attention to an ‘array of competing and intermeshing systems cutting across western and non-western cultures. In China, Shanghai’s nascent fashion system seeks to emulate the Eurocentric system of Fashion Weeks and industry support groups. It promises designers a platform for global competition, yet there are tensions from within. Interaction with a fashion system inevitably means becoming validated or legitimised. Legitimisation in turn depends upon gatekeepers who make aesthetic judgments about the status, quality, and cultural value of a designers work (Becker 2008). My paper offers a new perspective on legitimisation that is drawn mainly from my PhD research. I argue that some Chinese fashion designers are on the path to becoming global fashion designers because they have embraced a global aesthetic that resonates with the human condition, rather than the manufactured authenticity of a Eurocentric fashion system that perpetuates endless consumption. In this way, they are able to ‘self-legitimise’. I contend these designers are ‘designers for humans’, because they are able to look beyond the mythology of fashion brands, and the Eurocentric fashion system, where they explore the tensions of man and culture in their practice. Furthermore, their design ethos pursues beauty, truth and harmony in the Chinese philosophical sense, as well as incorporating financial return in a process that is still enacted through a fashion system. Accordingly, cultural tradition, heritage and modernity, while still valuable, have less impact on their practice.

Ethnic enclave lifecycle : a case study of Chinese restaurants in south east Queensland

Immigrant entrepreneurs tend to start businesses within their ethnic enclave (EE), as it is an integral part of their social and cultural context and the location where ethnic resources reside (Logan, Alba, & Stults, 2003). Ethnic enclaves can be seen as a form of geographic cluster, China Towns are exemplar EEs, easily identified by the clustering of Chinese restaurants and other ethnic businesses in one central location. Studies on EE thus far have neglected the life cycles stages of EE and its impact on the business experiences of the entrepreneurs. In this paper, we track the formation, growth and decline of a EE. We argue that EE is a special industrial cluster and as such it follows the growth conditions proposed by the cluster life cycle theory (Menzel & Fornahl, 2009). We report a mixed method study of Chinese Restaurants in South East Queensland. Based on multiple sources of data, we concluded that changes in government policies leading to a sharp increase of immigrant numbers from a distinctive culture group can lead to the initiation and growth of the EE. Continuous incoming of new immigrants and increase competition within the cluster mark the mature stage of the EE, making the growth condition more favourable “inside” the cluster. A decline in new immigrants from the same ethnic group and the increased competition within the EE may eventually lead to the decline of such an industrial cluster, thus providing more favorable condition for growth of business outside the cluster.

Ethnic cluster lifecycle : a case of Chinese restaurants in South East Queensland

Immigrant entrepreneurs tend to start businesses within their ethnic enclave (EE), as it is an integral part of their social and cultural context and the location where ethnic resources reside (Logan, Alba, & Stults, 2003). Ethnic enclaves can be seen as a form of geographic cluster, China Towns are exemplar EEs, easily identified by the clustering of Chinese restaurants and other ethnic businesses in one central location. Studies on EE thus far have neglected the life cycles stages of EE and its impact on the business experiences of the entrepreneurs. In this paper, we track the formation, growth and decline of an EE. We argue that EE is a special industrial cluster and as such it follows the growth conditions proposed by the cluster life cycle theory (Menzel & Fornahl, 2009). We report a mixed method study of Chinese Restaurants in South East Queensland. Based on multiple sources of data, we concluded that changes in government policies leading to a sharp increase of immigrant numbers from a distinctive culture group can lead to the initiation and growth of the EE. Continuous incoming of new immigrants and increase competition within the cluster mark the mature stage of the EE, making the growth condition more favourable “inside” the cluster. A decline in new immigrants from the same ethnic group and the increased competition within the EE may eventually lead to the decline of such an industrial cluster, thus providing more favorable condition for growth of business outside the cluster.

The rotifer assemblage in a shallow, eutrophic Chinese lake and its relationships with cyanobacterial blooms and crustacean zooplankton

Rotifer assemblage in the subtropical eutrophic Lake Chaohu was investigated monthly from September 2002 to August 2003. Forty-nine species belonging to 18 genera and 14 families were recorded. The highest densities of rotifer were observed during summer when there were heavy cyanobacterial blooms. There was a significant positive correlation between total rotifer density and the biomass of cyanobacteria. However, no correlations were found between the densities of rotifer and crustacean zooplankton, possibly owing to the paucity of large-bodied planktonic crustaceans. It is likely that the occurrence of cyanobacterial blooms not only caused the shift of dominant crustacean zooplankton from large species to smaller ones but also weakened the negative interaction between crustaceans and rotifers.

The impact of silver carp (Hypophthalmichthys molitrix) on the rotifer community in a eutrophic subtropical Chinese lake

From 20 April to 25 June in 1999, an enclosure experiment was conducted in Lake Donghu to assess the impact of planktivorous silver carp on the planktonic rotifer community. We set up four treatments with silver carp biomass at 0, 116, 176, and 316 g m(-2). Total rotifer density was significantly higher in the no-fish enclosure than in fish-present enclosures. Fish predation on the rotifers alleviated zooplankton competition and resulted in dominance of small zooplankton species (Anureaopsis fissa, Trichocerca pusilla and Moina micrura) in fish-present enclosures. However, some relatively larger species (Polyarthra vulgaris, Brachionus angularis, Brachionus calyciflorus, and Asplanchna spp.) showed higher densities in the no-fish enclosure than in fish-present enclosures.