China
Panasonic recall leaves scar on Japanese appliances in China
The Panasonic refrigerator recall that started this month hurt its brand and in terms of sales and influence, the effect was also obvious. Market share of both Panasonic refrigerators and washing machines declined within a week. According to latest data released by All View Consulting, a week after the incident, market share of Panasonic refrigerators dropped 0.8 percent, while the washing machine market share has fallen 1.8 percent. For a long time, Japanese home appliances products have …
The Panasonic refrigerator recall that started this month hurt its brand and in terms of sales and influence, the effect was also obvious. Market share of both Panasonic refrigerators and washing machines declined within a week.
According to latest data released by All View Consulting, a week after the incident, market share of Panasonic refrigerators dropped 0.8 percent, while the washing machine market share has fallen 1.8 percent.
For a long time, Japanese home appliances products have enjoyed a high-end image. However, domestic brands like Haier and Midea, which have been making gains in the high-end market, are starting to chip away at the Japanese brands’ market share.
Domestic brand’s high-end market share has risen from 35 percent in 2008 up to 43 percent.
Unlike Japanese brands, Korean brands started in the low-end market. Samsung has said that in the future it adopt a differentiated market strategy in China, and will expand market share through low-end, medium and high-end products to compete with Japanese brand home appliances in China.
These measures eroded Panasonic’s market share. Data shows that in the first half of 2010, Panasonic refrigerator’s market share in China was less than 2 percent and is behind other foreign brands like Siemens, Samsung and LG Electronics. Panasonic washing machines’ market share also has fallen from 11 percent in the beginning of this year to 8 percent.
Panasonic is a case study of Japanese home appliance companies’ destiny in the Chinese market. Toshiba TV and Sharp’s “discriminatory sales” also caused Japanese brands to lost face. Many Japanese home appliances companies are now moving manufacturing plants to China, which can reduce export costs, but they still cannot increase market share.
Panasonic China declared on its Web site on Aug 1. that it will recall over 360,000 refrigerators in China due to a control valve defect. It was the largest home appliance recall in China in recent years.
According to the declaration, the defect may cause the cooling compartment to get either too cold or not cold enough in certain circumstances, or a refrigerant leak, or even cause smoke and fire. The defective part has already been responsible for 13 safety incidents in China.
The recall involves 29 models from the B20-B26 and C23-C29 series produced from March 2007 to March 2009. A total of nearly 366,000 refrigerators on the Chinese mainland are included in the recall.
Last November, Samsung recalled 32,000 refrigerators in China while LG recalled 672 washing machines in February. At present, only some foreign brands have recalled their defective products in China, while no domestic home appliance company has yet to conduct a recall.
&$&$By Huang Beibei, People’s Daily Online&$&$
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Panasonic recall leaves scar on Japanese appliance brands
Business
Gordonstoun Severs Connections with Business Led by Individual Accused of Espionage for China
Gordonstoun school severed ties with Hampton Group over espionage allegations against chairman Yang Tengbo. He denies involvement and claims to be a victim of political tensions between the UK and China.
Allegations Lead to School’s Decision
Gordonstoun School in Moray has cut ties with Hampton Group International after serious allegations surfaced regarding its chairman, Yang Tengbo, who is accused of being a spy for the Chinese government. Known by the alias "H6," Mr. Tengbo was involved in a deal that aimed to establish five new schools in China affiliated with Gordonstoun. However, the recent allegations compelled the school to terminate their agreement.
Public Denial and Legal Action
In response to the spying claims, Mr. Tengbo publicly revealed his identity, asserting that he has committed no wrongdoing. A close associate of Prince Andrew and a former Gordonstoun student himself, Mr. Tengbo has strenuously denied the accusations, stating that he is a target of the escalating tensions between the UK and China. He has claimed that his mistreatment is politically motivated.
Immigration Challenges and Legal Responses
Yang Tengbo, also known as Chris Yang, has faced additional challenges regarding his immigration status in the UK. After losing an appeal against a ban enacted last year, he reiterated his innocence, condemning media speculation while emphasizing his commitment to clear his name. Gordonstoun, on its part, stated its inability to divulge further details due to legal constraints.
Source : Gordonstoun cuts ties with business chaired by man accused of spying for China
Business
China Dismantles Prominent Uyghur Business Landmark in Xinjiang – Shia Waves
The Chinese government demolished the Rebiya Kadeer Trade Center in Xinjiang, affecting Uyghur culture and commerce, prompting criticism from activists amid concerns over cultural erasure and human rights violations.
Demolition of a Cultural Landmark
The Chinese government recently demolished the Rebiya Kadeer Trade Center in Urumqi, Xinjiang, a vital hub for Uyghur culture and commerce, as reported by VOA. This center, once inhabited by more than 800 predominantly Uyghur-owned businesses, has been deserted since 2009. Authorities forcibly ordered local business owners to vacate the premises before proceeding with the demolition, which took place without any public notice.
Condemnation from Activists
Uyghur rights activists have condemned this demolition, perceiving it as part of China’s broader strategy to undermine Uyghur identity and heritage. The event has sparked heightened international concern regarding China’s policies in Xinjiang, which have been characterized by allegations of mass detentions and cultural suppression, prompting claims of crimes against humanity.
Rebiya Kadeer’s Response
Rebiya Kadeer, the center’s namesake and a notable Uyghur rights advocate, criticized the demolition as a deliberate attempt to erase her legacy. Kadeer, who has been living in exile in the U.S. since her release from imprisonment in 2005, continues to advocate for Uyghur rights. She has expressed that her family members have suffered persecution due to her activism, while the Chinese government has yet to comment on the legal ramifications of the demolition.
Source : China Demolishes Uyghur Business Landmark in Xinjiang – Shia Waves
China
China Expands Nationwide Private Pension Scheme After Two-Year Pilot Program
China’s private pension scheme, previously piloted in 36 cities, will roll out nationwide on December 15, 2024, enabling workers to open tax-deferred accounts. The initiative aims to enhance retirement savings, address aging population challenges, and stimulate financial sector growth.
After a two-year pilot program, China has officially expanded its private pension scheme nationwide. Starting December 15, 2024, workers covered by urban employee basic pension insurance or urban-rural resident basic pension insurance across the country can participate in this supplementary pension scheme. This nationwide rollout represents a significant milestone in China’s efforts to build a comprehensive pension system, addressing the challenges of a rapidly aging population.
On December 12, 2024, the Ministry of Human Resources and Social Security, together with four other departments including the Ministry of Finance, the State Taxation Administration, the Financial Regulatory Administration, and the China Securities Regulatory Commission, announced the nationwide implementation of China’s private pension scheme effective December 15, 2024. The initiative extends eligibility to all workers enrolled in urban employee basic pension insurance or urban-rural resident basic pension insurance.
A notable development is the expansion of tax incentives for private pensions, previously limited to pilot cities, to a national scale. Participants can now enjoy these benefits across China, with government agencies collaborating to ensure seamless implementation and to encourage broad participation through these enhanced incentives.
China first introduced its private pension scheme in November 2022 as a pilot program covering 36 cities and regions, including major hubs like Beijing, Shanghai, Guangzhou, Xi’an, and Chengdu. Under the program, individuals were allowed to open tax-deferred private pension accounts, contributing up to RMB 12,000 (approximately $1,654) annually to invest in a range of retirement products such as bank deposits, mutual funds, commercial pension insurance, and wealth management products.
Read more about China’s private pension pilot program launched two years ago: China Officially Launches New Private Pension Scheme – Who Can Take Part?
The nationwide implementation underscores the Chinese government’s commitment to addressing demographic challenges and promoting economic resilience. By providing tax advantages and expanding access, the scheme aims to incentivize long-term savings and foster greater participation in personal retirement planning.
The reform is expected to catalyze growth in China’s financial and insurance sectors while offering individuals a reliable mechanism to enhance their retirement security.
This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
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