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Introduction to the book Chinese Business Chinese Business

Excerpts Chinese Affairs

manuals on China, turned and turned from every point of view, have flooded the shelves of libraries, as well as technical publications on aspects of corporate, tax and legal activities in China. Consultants, experts, international lawyers have said authoritatively on all these aspects. So do not intend to retrace the steps, but we want to provide a practical manual, practical, pragmatic people, entrepreneur, manager or consultant, is faced with real operational problems in the management of China Operations.
are voices from the field, extracts from the daily lives of those who come every day to address the problems that the race China presents a daily basis, alongside entrepreneurs, managers and staff relocated Italian. The cut will be on this text is so industrial and managerial, lying in a language as much as possible plan, borrowed from the newspaper industry and management. There is no claim to completeness and comprehensiveness in the discussion, we intend to limit the operating procedures, to case studies, examples, trying, where possible, to offer a cultural context for better understanding of China. The only intent is to try to err a little less operators, providing experiences already lived through that can serve as a warning or address.
We will however have to mention in many cases legal and administrative, will not expand here, but that may be of great interest to readers.
also refer immediately to the site of Dezan Shira & Associates, the largest Italian property consultancy in China, with 9 offices in major Chinese cities, over two hundred employees and collaborators. The reference site, which are accessible from many areas of specialized study is http://www.dezshira.com/
If even deepening the site was not enough, more details can be obtained by sending an email to italiandesk @ dezshira.com
Similarly, for the deepening of strategic and operational aspects that are not adequately satisfied in this manual may be required to bosco@keenscore.com
At the end of this introduction, two words moral and ethical aspects of working in China.
This is certainly not the place for a discussion on human rights and the social situation of China, which, while representing an important element of socio-economic context of the country, and who are always in the background of those working in it, but I like to recall an episode which I think is good that today the Chinese intelligentsia, even those not aligned, you think of the social system.
A dinner with a professor at the University of Shenzhen, great views and great cultural background, topics affecting the ethical aspects of the economic system of China. To a specific question about my civil rights, the teacher answers me with a statement which, at the time, I found replies

"The Chinese took away from poverty 300/400 million people in the last 20 years. This is the first civil law. No other system in the world has been able to do the same. "

to say: we're coming out 40 years of international isolation and arrested development. Before you think to feed people and then decide what to democracy.
We may share or not. Certainly makes one think.
The impression one gets from living in China, is that the system knows all its contradictions, and acting to address them, with the times and conditions granted by a country of 1 billion 300 million people, how little known or little understood in the West.
For example, there's no evidence in Italy of the recent decision of the Central Committee of the Chinese Communist Party has set as a top priority for the country to cover the gap in income between city and country. This sums up all the great contradictions of the country, the income differences are the source of inequality among social classes, with all that this entails. The development policy of the city so-called "second tier" (within the country, outside from coastal areas that were first developed), with strong investment incentives, and creation of important industrial and technological policy is part of this equalization of incomes.

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Index of the book The school

Excerpts Chinese Affairs

1) Introduction
2) Cultural diversity: what it means in business in There na
3) structural fragility of Italian SMEs
- The size of the company
- Poor availability of skilled human resources.
- Poor language skills
- Low cash flow available for investment
- Difficulty in creating a system
- Additional critical elements for SMEs in China
4) Panorama of Italian companies in China
5) common pitfalls in the approach to the Chinese market
- Organizational Structure
- Trust the Chinese
- Savings fake - real costs
- Replicate models
6) The human resources management units relocated
- Select and recruit Chinese
- The new law on employment contracts
7) Manufacturing in China to sell in the world
- Yielding know how to maintain competitiveness' in Italy
- Case history
8) Buy China
- Traders, producers, buyers: buy quality
- Organization for the purchase professional
- OEM
Contracts - Research and Development by suppliers
9) Selling in China
- Consumer Market: "Italian Style - China Made"
- Market Segmentation "consumers": the phenomenon "Chyuppies"
- Someone needs
cover - How do you build the system, Italian Style - China Made
- The main objection: the protection of intellectual property
- tools for sale in China
- we do not miss anything if we do not we copy we copy the Chinese themselves. The case of self-counterfeit wine
- Sales in the industrial sector
- Italian Style - Made in China industry
- Follow the customer
- China on China
- Know How in exchange for revenue and market share
10) pills competitiveness
- Competitiveness daily
- The school key element of competitiveness
11) The world of Private Equity Funds "
12) Information tools


Attachments

A ) Rules of Operational Due Diligence
B) The new Act work

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key element of competitiveness

Taken from the book Chinese Affairs

The Chinese school is selective meritocratic, competitive, expensive. The students are terrified by the first rigorous entrance exam, then the votes, which may affect the admission to prestigious universities. The families are huge savings for their children to study, realizing that the school is a key factor in their future success.
I know of families who organized real collections, have self-assessed grandparents, parents, brothers, uncles, to send his youngest son University.
training for adults in Italy affects about 220,000 people. In China, the only Training College of the National Statistic Bureau, National Training Authority, headed by the Chinese equivalent of our ISTAT), mostly devoted to adult education, which was originally only in the statistics, now across the board, works on the territory Chinese Training College with 147, and 510 technical schools.
people, both employees of public entities to private companies, they pay from their own pockets the cost of training.
The Board has formed since 2005, 1,600,000 people, and every year goes to graduate 23,400 people. These figures are remarkable, even for a large country like China, especially considering that this is just one of many institutions of public education in China.
Chinese universities have the line of students out the door. Once the dream of all the American universities were now all, including Americans, want to attend the University of Science and Technology of China and Tsinghua University, also known as the MIT of China.
Foreign students in Italy represent 4.3% of the school population. In Europe the figures are very different: the data are these: In Switzerland, foreign students are 23.6%, Germany 10%, Netherlands 13%, Spain 5.7%, Portugal 5, 5% France 5%.

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element of competitiveness'

Excerpts Chinese Affairs

Again in terms of competitiveness, what about the speed of construction of major public works? China has completed construction of the world's longest bridge over a stretch of sea. It dell'Hangzhou Bay Bridge, a work of 36 km through the East China Sea.
The bridge of concrete and steel beats by far all other such as the one that connects Bahrain to Saudi Arabia is only 25 kilometers and could join the UK to France across the English Channel. It cost about 1.5 billion, covering to 29 percent by private capital.
Its structure is made to withstand the typhoons that often hit that stretch of beach south of Shanghai, as well as subsidence of the land. For the construction This is one of the most ambitious of China took three years of work.

(Need a consultant for the bridge over the Strait of Messina?)

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know-how in exchange for sales and market shares on China China

Excerpts Chinese Affairs

An example of perfect integration, maximum optimization of resources and different experiences of Italian companies and Chinese is important Italian textile group, also very active in the field of packaging and distribution of fashion and women.
Their strategy integrates very efficiently the concept of Italian Style - China Made, maximizing the efficiency of the system-on-China China, tracing, perfezionaldolo, the model presented in Figure 7 above.
must start by saying that we are talking about a very large group, in which the problem is more like entering China, but as always seek out new investment opportunities and growth. So it's not the problem of small business that wants to put one foot in China, but that of a big company that wants to take root, to increase market share, turnover and margins.
Their strategy, however, is illuminating and worth a description.
The company operates for many years under various brand names, not strong enough to stand alone stores in China, as is the case in Italy and Europe.
Investments to overcome the threshold of visibility for these brands in China were very heavy (the benchmarks in marketing and advertising are obviously unreachable brand of great Italian fashion and French) and returns still uncertain and long.
addition, their product placed in the middle class in Italy was likely to average out the Chinese market, which is similar articles (Chinese) a lower price. You would then have to do a re-sizing of all collections to fit the different physical structure of Chinese women, for a product replacement fast, low-priced, this could be very costly. All operations
still feasible and absolutely within reach of a large company, but like I said, very slow and uncertain outcome, the entry threshold is somewhat higher.
The company instead sought investment opportunities, turnover, market shares and profits in the short.
They then decided to focus on their strong elements: the perfect knowledge of the methods of distribution, marketing of the product fast fashion, the large capacity and flexibility in styling. They know exactly how to serve the middle-class women, they know perfectly the profile of the consumers they serve, have a great ability to create image and style that is unmistakably Italian. And experience to sell. In short, everything the necessary know-how.
With these assets in the portfolio have begun a search for industrial partners in China who have capacity, especially of their own brand and its own direct distribution channels ....
...
The brand is now one of the most famous and popular Chinese brands in women, and the company performs constant monitoring of new shopping centers in which to open new stores. Preside over the new location once it has become now they must.

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Excerpts Chinese Affairs

The mechanism triangulated China on China deserves to be explained in detail to a method used more more, and with excellent results, by large and medium-sized Italian groups.
is something more than we have already seen in the construction of the system, Italian Style - China Made ...

... This is a rather complex, requiring the presence and establishment in China, with Italian staff, and a strong consulting assistance to correctly handle the bureaucratic steps that both the contractual and customs, as a matter first for the construction of the components is, in this case, imported from Japan via Hong Kong.
however, is a model of great strength and impact, and provide a basis for development of sales on both the Chinese domestic market than on the other neighboring Asian markets. It is based on the exploitation of maximum economic efficiency of markets and market players themselves.
It is, in this case, a small Italian company specializing in an innovative application in the footwear sector, which uses its own patent application, which sometimes sells licenses to Chinese manufacturers, along with the technology needed to use it.

.... It is in this case of a major Italian industrial group, with an established brand and well known in the world, provider of a specific component for footwear. The organization aims to create a new hub for the entire Asia-Pacific area, replicating, and improving their organizational model has already been applied United States.
The diagram on the next page (Figure 9) resembles to some passing the previous one, with a strong variation. The Company has established a great Centre of Research and Development, in coordination with the Italian Centre, develop and test new materials, products and applications for specific market.

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Follow the Customer

Excerpts Chinese Affairs

For many small and medium-sized Italian companies, more or less extensive relocation of production from their major customers has been a real trauma. For larger ones, a great opportunity.
Many small businesses, providing electronic or components in the automotive, found themselves in front of the blue to the request of their customers to provide control panels, control systems, sophisticated components, no longer in Reggio Emilia, Modena and Bologna, but maybe in Guangzhou, close to their new plant in China, albeit at Chinese prices.
Guanzhou?
These small companies have taken years to become accredited providers of a great brand, and when you were a little relaxing, rewarded for their efforts and their investments, this is invented Guangzhou or Shenzhen, and Foshan, or some other Chinese city by the unpronounceable name, for many probably just dots on a map that they had perhaps never carefully observed. For those who know China, a city with millions of inhabitants.
But the world moves, and many small businesses have had to travel the steps that, if planned, would have been much easier. Then again investment resources yet, still struggling. But just because we are terribly late and we did not notice how fast it runs the world.

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Italian Style in China - China Made industrial

Excerpts Chinese Affairs

In this case, even more than in consumption is only a matter of time. The industrial system of China has demonstrated its ability to upgrade technology and innovation unimaginable for our habits thanks to strong investment in R & D of the rich Chinese industries, and close relationship with the Chinese University of Technology.
The idea that we can continue to sell equipment to the Chinese, and not worry to locate production in China, or make agreements for the exploitation of Italian technology in place will lead to dramatic results for Italian companies.
Nor must we forget that the industrial alliances in China have not only internal purposes to the Chinese market. China is becoming the standard for purchases for many developing countries. is certainly a market for other Asian countries, but now also for Africa, with which China has forged very strong political and commercial ties.
Being present in China with a production capacity highly competitive means looking out to the world in developing hungry now developed technology and industrial products, but also short of consumer products. We must therefore see China as a platform also commercial and logical decisions in this settlement in the Chinese market must have an overall vision, strategic and global development.

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we do not miss anything. If the Chinese do not copy we copy it for themselves: the case of self-counterfeit wine

Excerpts Chinese Affairs

is then I doubt that it is a counterfeit wine, in fact the quality of the wine bottle is a thousand miles away from what we know well.
then write an email to the producer and I put a copy of the General Manger of the restaurant (they did so, always prevails over the spirit of the journalist). The Manager
answer me quite angry, saying that this was an indication received by the importer, and that could not possibly know all the wines of the North (the restaurant chain is owned by people of central Italy).
I answered the President of the Company which owns the brand, which has the same name, with a long email in which essentially argues that:

1) The Chinese do not understand wine

2) The importer asked a product line to offer lower market, since their standard line was too expensive for the Chinese.

3) He had invented a fancy name to replace the name of your company as a manufacturer, and do not tie to a poor product (however, had 'unfortunately been retained along with the fancy name of its well-known trademark manufacturer, which obviously helps sale, so much so that I bought it myself, I know very well that the march)

4) The wine was "drinking more than many others" (letterale!)

5) The company shall maintain turnover and market shares.

I could not believe it was copied by myself!

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Case Hystory semi-comic

Excerpts Chinese Affairs

One of my clients' stories that made me smile more, thinking about improvisation, and poor knowledge of China, about an entrepreneur Emilian invited to China with the proposed purchase of its own machine. The businessman arrived in Shenzhen, and is invited to discuss a popular and elegant restaurant.
During the dinner are being developed details of the contract in that case, however, the Chinese are careful not to sign (but it would be the same). At the end of dinner, the restaurant bill is presented to the entrepreneur: almost 4,000 euros for a dinner for 5 people.
The entrepreneur pays a little surprised the cost, but does not know anything about China. Credit card and go. That restaurant does not charge more than 15/20 euros per person for dinner. Its Chinese partners had organized a combine with the restaurant. A few thousand Euros in your pocket easily.
The contractor is yet to be convinced to do the deal and returned to Italy, but his audience does not become more alive. He turns to his business association that has an agreement with our Consultancy.
we act immediately, but the first description we understand that this is a scam to Toto. Obviously, the Chinese company does not exist, has no business license, has no office. And who knows what other potential sellers has attracted into their trap ..

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Excerpts Chinese Affairs

They learned by heart the lesson of pragmatism Den Xiaoping, who in a speech to the Central Committee of the Chinese Communist Party, the July 8, 1983 said:

"We should make use of intellectual resources of other countries, inviting foreigners to participate in the development of our projects in different fields. We have not recognized how important this is, and then we did everything we could do. In terms of modernization we have no experience nor knowledge. We should not be afraid to spend to hire foreigners. No matter how little time to remain for a long time, or only for a project. Once they're here, we must take advantage of their knowledge. We should open our country to the outside world, and ask for help from European countries to speed up our processing technology. We should do the same with Eastern European countries, because their technologies are some of our advanced piuà. China can provide them with a large market, and these countries are very eager to develop cooperation with us. We must seize this opportunity, is a matter of strategic importance.

foresight and pragmatism at its best, remarkable for a person of nearly eighty years!

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Buy Chinese Pragmatism in China Chinese staff

Excerpts Chinese Affairs

I have seen some of these buy directly from alibaba.com (the largest shopping portal in China) without ever having met the supplier, without seeing the company, perhaps even without having seen a sample. All professional traders in China use alibaba.com for its size, comprehensiveness, efficiency, and speed of consultation, but none of them would never think of placing an order online for a container, and pay well in advance. Alibaba.com is the easiest way to search, but then you have to start direct contacts and Quality Control in China.
so many times, these buyers occasional drop the initiative after some bad experiences, the idea of \u200b\u200bspreading in Italy Made in China poor, unreliable and insecure. The

to tell Toyota, Mercedes, BWM, Volkswagen, the great Italian designers who produce in China, or the large American electronics or cell phones! (80% of phones in the world is produced in China).
Even the case of American MATTEL toys withdrawn from the market because products with hazardous materials and how it was dismantled by the admission by the American multinational that the problem was born of an error on their design.
Italian newspapers, often superficial and approximate, have given prominence to the problem, but I read a line, or maybe I missed, so it was probably well hidden, the fact that the President of Mattel flew to China to personally apologize to the Chinese authorities for the bad image of the country that this situation was diffused.
Televisions Chinese obviously have a huge importance to this fact.
In China, therefore, is amply demonstrated, one can produce quality products identical to that of Europe, but that did not happen by itself.

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Excerpts Chinese Affairs Select

managerial figures in China so it is not easy. Of course there are many exceptions, and they are all the result of experience gained in large foreign companies, mainly American, European or Japanese (sought after automotive engineers from Toyota and Volkswagen).
These companies invest heavily in methodically and staff training, plus it provides the managerial skills that the Chinese school is clearly not yet able to provide.
These figures of course know the value of their managerial competence, and of course speak excellent English. As a result, the salary of an engineer who normally could be around 7,000 to 10,000 RMB / month, shoots quickly -15,000 to 12,000 RMB / month. [1] The mere fact to speak good English, normally raises a 15-20% salary for all professionals.
Another important reason to use consultant in the selection of personnel and contractual aspects of personnel management. There is a very intricate mechanism of bonuses, house allowance, social costs, etc.. so sometimes you end up not fully understand what actually cost us the person we are taking.
A final point concerns the motivation of management personnel. The economic aspect is of course important for a Chinese (as it is for an Italian or a German), but it is not the only factor that will tend to accept the assignment. The image and reputation of the company and its brand, its market position, career opportunities that are offered, are all held in high regard by candidates of value, together with an element that seems trivial to us, but in China not at all: the formal title is awarded to the person (General Manager, rather than Factory Manager, QC Manager, rather than Quality Engineer, and so on. A very Anglo-Saxon habit rather underestimated by Italian firms). Because all things that I just mentioned, the right choice of managers in China is absolutely essential. Do not forget that it will pay them then select the rest of the staff, and they therefore depend the overall quality of human resources.
[1] gross salary of the employee. Includes shares of taxes and charges against him

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false, true costs

Excerpts Chinese Affairs

This element is very strong in the practice of launching a company in China. As I said, stems from the presumption that they could act in China on the basis of their experiences, considered sufficient to meet the challenges in China. Not so. After a while everyone becomes aware that China is a different world. This knowledge can cost you later.
Another element linked to the fake is the low savings propensity, which, combined with poor knowledge of the country, are what appear to be real cost savings, which are proving increasingly false. Let's see some

:

• Relying on a Chinese economic and administrative law firm, rather than an international structure (most expensive)
• select staff on the basis of information, suggestions, recommendations or contact the local partner
• Choice the partner with which to start operations. Again there is very occasionally. Often the partner is a superficial knowledge or nearly so. The Chinese partner is sometimes entrusted with the complete management of the Company. The control is very low. The disastrous effects, in economic terms but also to legal liability (tax and labor law in particular)
• launched an initiative on the basis of a few partial data. We have seen cases of companies from the carbonated market, based on an experience of a few days or weeks in China. Some spectacular, where the Chinese are very clever, is sufficient to convince the company that China is the future, and that the partner is the right one.
• not perform due diligence before entering into a JV to acquire or even in whole or part of a Chinese company. Due diligence is an extremely useful tool
• Issue orders to unknown companies do not scan
• Quality

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As we see the Chinese

Excerpts Chinese Affairs

I want to mention a real episode, with some bitterness, but we must take note of everything that was not done to promote in Italy China, and the fact that Italian industry is only a piece of the system, that alone can not win the battle of the Chinese market.
The episode is this: the General Manager of a major Chinese public company, of which I am a friend, asking me to help organize a study trip to Italy for about twenty leaders. Not a trip to the savings, the budget was adequate, it could be a good opportunity to open a new, small but qualified channel, the Chinese tourism in Italy.
I do to try to do on the sites Italian institutional videos, pictures, descriptions in Chinese. Seeking even more institutional site, the ENIT, but I can not find a shred of promotional video to propose to the Board of Directors of The (let's head in the Chinese know very little of Italy, and that if we are to attract their tourism must show).
then decide to build a small home movie, putting together the most beautiful pictures of Venice, Rome, Florence, Milan, and putting a song in the background of Pavarotti. It came a decent job, a condensed summary of the beauties Italian.
proud that I was making a small contribution to our country, sending the movie to my friend to present to the Board of Directors of your Company, in support of the proposed trip to Italy. Help my friend to build an itinerary and also to have some quotes from Italian tour operators (who as a poor image have done their part). Some of the directors, however, said they were more in favor of a trip to France, and this proposal went against what my friend suggested that Director Italy. When I asked the rationale for them, the answer to pieces literally sent my remaining hopes on our country's ability to assert themselves for what that is, or was. The answer, more or less, was:

"Italy is a country that has just appeared at modernization, and is just out of misery!"

That's what we managed to convey to the Chinese 'Italian image. So the Chinese consider Ferrari, Prada, Valentino, Versace, Bottega Veneta, the peaks of excellence in a landscape of misery.

I came to wonder whether this is so.

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Italian Wine in China who has seen it? Italy

Excerpts Chinese Affairs

We find instead placed in an excellent way to Spain, France, and large producers of wine from Chile, New Zealand, South African, Californian, who are literally invading the shelves of supermarkets. No trace of our great oils (those present at the Italian brand is already owned by the English), typical Italian products, fruit juices, canned goods of quality (well-placed Germans and Americans).
Very few Italian wines, divided into two major levels: the Brunello (sold over 2,000 RMB, and the modest and anonymous red table, dressed for the occasion with a flashy label-owl, sold less than 200 RMB (They are produced that the winery has a price less than 2 euros). Our Prosecco and Franciacorta? The noble wine Piedmont, Tuscany, Friuli and Sicilian? No, or at most a few pale appearance. The problems Chinese statistics say that the importance of wine in China has doubled in 2007, which France has also doubled its exports in stessso year, to share 15,517.251 gallons, Italy is still only at 5,113,181, followed from Spain at an altitude of 3,399,425 litri.Con a market share of 37% by volume, France enjoys a privileged position and hardly scalzabile. In value terms the position is even stronger exports add up to 56.3 million Euros and this ranking is followed by Australia (19.8%) and Italy (9.7%). This means that not only export a little wine, but we manage to export mainly cheap wine. In contrast, the average prices of imported French wine in 2007 increased by 25%., However, compared to an average increase in the price of imported wines by 60%.
..
In 2000 the Chinese government held a competition to be planted 24 hectares of vines in Taishi, Hebei province in the cold (about 100 kilometers from Beijing, and to provide all the processing plants of the grape and wine production . This is a holding demo (called the Sino-French Grape Growing and Winemaking Demonstration Farm, which opened November 13, 2006, after five years of work), but, as we shall see, has already good business.
The race was won by a Franco-Chinese Consulting Company (the France-China-Tech Ltd) [1] , with offices in Hong Kong and Bordeaux, and with an office in Shenzhen, who planted the vines and provided all facilities in the cellar.
The 16 varieties of grapes planted are of course strictly French.
We Italians, masters in the production of machinery and equipment for wine making, as well as master winemakers, this event should be missed! The facilities provided by the French for this initiative, would seem to be Italian, according to the description of the site, but the industrial and commercial heart of the initiative is all the French. The Company
Franco-Chinese author of the initiative, said openly on a French website, [2] its objective of selling to Chinese farmers of small plants (kit) for the production of wine, and you want to create the first Chinese DOC .
Now the company began producing its own wine and sell it in supermarkets. The pricing policy is extremely cautious, red wines are located around 16-18 euros, well above the Vignelli (or marcs) Chinese, who are 3-4 in Euro, but just below the first European wines price, which can be found starting at around 20 Euro.
These wines may well be sold to the public at 8-10 euros, with margins still certainly interesting, but both manufacturers and mass retailers if they look good from it, and maintain their position around 18 Euro. From what follows in this capacity?
from the mere fact that the label has much in evidence that the wine is made with China, but the famous French tradition (specifying Bordeaux). Therefore, Chinese wine but technically French. The names of the wines, then, are marked Chateau. In other words: French Style - Made China. The French thought we were before me, I have not invented anything.

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System in China: the new challenge of consumption

Excerpts Chinese Affairs

The Italian system has the possibility of a strong recovery on the delay in its presence in China. The
exports to China are growing strongly, but Italy still represents only about 1% of Chinese imports, trade and interchange with China puts it at 10.mo the rankings (although up 22% in 2006 and is still growing). Italy's trade deficit with China, however, continues to grow at rates of around 20%, which means that the system Italy is rising imports from China more than it can increase exports.
secodo the results of the third Summit Made in Italy (Il Sole 24 Ore) in the years 2007 / 2011 the wave of increased demand for Made in Italy by so-called emerging countries will suffer a further positive surge.
The attractiveness of Italian products is therefore very strong, but in this case, the structural weakness of System Italy, and Italian SMEs, could prove an insurmountable obstacle. To date, approximately 50% of Italian exports to China is represented by machinery and industrial equipment, a sector in which we maintain a good competition, but the space of increase in the Consumers, the one where the "Made in Italy expresses the maximum His potential is really enormous.
Considering that Italy is, as we said, 1% of the Chinese, and half is done by machines and industrial plants, means that our Consumers export products to China represents about 0.5% of Chinese.
Sometimes it's almost demeaning to Italian expatriates in China to see how in the world of the Chinese consumer that Italy is really a Cinderella.

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The strategic mistake of Italian system to meet the challenge of China Chinese

Excerpts Chinese Affairs

was made a fundamental mistake from the part of the Italian economy than China. An error by the dramatic effects of which it is now difficult to escape. The China phenomenon has exploded over the past 10 years, with a peak in the last few years, but began quietly 20 years ago.
What was the reaction of the Italian industrial economy in the wake Chinese? Subject to rare and commendable exceptions, the reaction was the same one that has had the appearance (30/40 years ago) of Japan phenomenon.
When Japan began to invade in the years 50-60 the Western world with its cheap products (plastics, electronics, etc..), The Italian system was thought that this was a temporary phenomenon, a fire straw that would have died within a few years, imploding in its own contradictions (the same as those we find today in Chinese),
Needless to say it is over, what has become Japan and its economy, the world scene, is under the eyes of all.
With China has adopted exact same analysis.
Rather than embrace this new world to understand the threats, to assess their chances and opportunities, has snubbed the phenomenon, certain that sooner or later it would be deflated, and everything would be back to normal.
Italian companies have so entrenched to defend their market shares worldwide, with two instruments: a smart and one not.

Large companies are able to think big and come with real capacity for innovation and development, have intensified their intrinsic values \u200b\u200band the value added of their products, creating a barrier to access for Chinese products.
Creativity, style, design, technology, beauty, short, Italian Style, have been the engine for the general development of the Made in Italy, building very high barriers to entry to their markets, protecting these companies from the threat of China, and allowing them to increase profits, which are now using for its massive commercial investments in China .
This was the intelligent tool.
tool, let's say, less intelligent, it was the valiant defense of market share through the erosion of margins. He tried to keep that market positions, customers, quotas, trying to meet the competition of the Chinese side of the price, with the obvious result of erosion of margins. Was a suicidal attitude, which has resulted in the impoverishment of the companies, who are now unable, financially, to cope with increasing the level of technology and aesthetics in China, which is threatening even the most sophisticated productions. On the other hand, this policy has not always guaranteed the maintenance of market share, of which Chinese companies are gradually a hold on the world scene.
When it was realized that the battle against the giant Asian trade could not have been overcome in this way, we passed a loud voice to the request of customs duties and various protectionism against Chinese exports, arguing that Chinese companies did the dumping their products, without mentioning that 60% of this export is done by foreign companies or companies owned by foreign capital. The typical in the foot.

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: collectivism and individualism. The mix of success

Excerpts Chinese Affairs

Finally the view of the cultural differences and the obstacles that they bring in business, a nod to a popular belief in the West: the phenomenon that the Chinese economy is tied to tradition the community, the indistinct mass of the whole people. The phenomenon is often described as China's unstoppable wave that is compact, which moves in the same direction. This is absolutely true, and that is why the effectiveness of public intervention to address economy, but it is also true that in this cultural and social situation has been triggered, paradoxically, as a detonator, rampant individualism, personal desire to emerge and grow rich, to become number one in something, take social visibility and appreciation, as if capitalism to China's Deng Xiaoping had opened the doors not only to economic liberalization, but also the development of individual potential, the first inhibited or masked by the prevailing culture community.
Put together, these seemingly contradictory elements, and you have one of the explanations on the strength dell'arrembaggio China to Western economies.

What Is A Nice Reliable Computer

sales in China. Italian Style - Made

Excerpts Chinese Affairs

There are already many examples of Italian companies are operating with this logic: Italian products, Chinese production. A leading sector in which many Italian SMEs are already active, is automotive.
The fast pace of big European brands of cars, for years outsourced to China, has forced many Italian manufacturers from China to supply the same products previously provided by Italy. I think no one doubts that the components supplied Vokswagen, Piaggio or Toyota from foreign companies in China should be of similar quality to those provided first from Italy, Germany or Japan.
Similarly there are examples of optimization and integration of production systems by Italian companies, which are put in a position of greater competitiveness in world markets, allowing their Chinese partners to produce in China on their behalf, or for distribution in JV in the Chinese market (through technology transfer, or simply by licensing), finished goods, finished goods or components of Italian design.
This Italian companies can remain competitive in a market where China and India, were being sidelined due to a better value for money.
Manufacturing in China components, machinery, plant, keeping Italy in the value software represented by R & D, design, styling, is proving to many Italian companies, a real cure to support the brand in international markets and employment rates in Italy, without giving up in exasperation that competitive edge has eroded in recent years .

Outboard Motor Cleaning

Chyuppies China: the new class of Chinese consumers. Because 'the system does not intercept

Excerpts Chinese Affairs

In fact, the largest emerging market for Chinese consumption is aggregating around that target consumers who have called chyuppies - Chinese yuppies - mainly formed by young people under 32 / 35 years, with two incomes around 1,000 euros per month in the family, with a strong propensity to buy strongly attracted to the Italian style, and Western Europe in general.
A recent survey published by Newsweek on 500 Chinese youth belonging to this category of consumers showed that 90% of these people think of spending more in 2008 than it spent in 2007, taking into account an expected increase in their Wages vary from one to a + 10 + 25% over the next two years.

Upconverting Receiver For Sale

Praise Saviano but do not overdo ... How

to tell the truth, while acknowledging the greatness and the courage of Saviano and yet to publicly express my pride in his fellow countryman, I want to remind everyone that the things he recounted and criticized, were voiced 15 years ago '(not the day before yesterday) by Senator Lorenzo Diana (from San Cipriano d'Aversa), under escort, I believe, since 1996 . I agree, therefore, with all the pro Saviano initiatives of recent times, but let's not forget the equally brave scholars who preceded him, who were already aware of the facts, misdeeds, figures, turnover, collusion, underworld infiltration and customs of the bell and who also have tried to send, by their writings, the scenarios of this dark and twisted world of crime bell, not earning anywhere near the success of Roberto. So, it certainly leads to a palm of a hand Gomorrah, but bring on the same palm of your hand, even the writings of Bruno De Stefano , Simone Di Meo , Gigi Di Fiore, Sergio Nazzaro , Jo ' Marrazzo, Paliotti Vittorio, Francesco De Rosa , Isaiah Sales , Scanni Matteo, Enzo Ciconte , Roberto Anfossi , articles Giancarlo Siani (which, had he been alive, an escort would not have had even in 2050) and Don Peppino Diana . Should not be ignored, also the excellent essays by Francesco Barbagallo of Marisa Figurative of Francesco Marolda of Antonio Ghirelli of and Sergio De Gregorio even historians of the South as De Leo, Coletti, Barrese, Balestrini, Virnicchi , Faenza and others, to mention the great precursor of the current and anticipated sociological literature and nonfiction Neapolitan underworld that Bell identified perfectly developments, the evolution and degeneration, while living in an era far removed from today. I refer to Matilde Serao , Benedetto Croce , Giustino Fortunato , Arturo Labriola , Francesco Saverio Nitti , Edward Scarfoglio , Luigi Settembrini and many others. Forgive me, but in light of the foregoing, this tam tam Gomorrah on me seems to be amplified beyond measure. Apart from the style absolutely outstanding Saviano, content of the text seems to me that all these authors have written so many things from him . Probably many will disagree with me but I, as a passionate crowds of studies on organized crime and terrorism, I read an avalanche of books and, I repeat, that apart from winning the narrative style of this young writer, I have not found major new elements in the events narrated (note, I speak of "novelty" and not "quality"). Evidently the power of the market is too, so it's above all this. I have heard from many quarters: "Finally, it was about time someone spoke of the Camorra in Naples," by suggesting that Saviano was the first. It is on this point that imposes a duty of truth, if only to bring justice to those who have studied and observed the phenomenon for a long time racketeer, writing and speaking, with no amplification advertising. Sorry, but this is my humble thought that does not detract in any way the greatness of Roberto.

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Gigi Landi

Wwe Diva Trish Stratus Stripped

Software Architecture: to be fast ...

Years ago ... yet another interview with Bill Gates in which the speaker asks what is the behavior, the methodology ... In short, the most important thing to do in software development ... Question
all things trivial ... the answer, judging from the face of Gates and the resulting dried his famous wry smile, it might even be trivial ...
Gates focuses for a moment and, after a few seconds, a response which, in its apparent banality and simplicity, and it remains to be absolutely brilliant ...
Gates' answer ... simply ...:

"to be fast ..."

The interviewer will show itself a bit 'annoyed by something that Gates seems to have tossed so much for responding, and presses Gates asking him again, you ... it is obvious that it is necessary to be quick and fast during the development of any software ... but anyway ... else, according to Gates, is really important, after being fast, in software development?

Gates answers this time ... even colder if possible:

"to be faster ..."

Napoleon Bonaparte had already responded, a bit 'of time before a similar question, of course, what were the three most important parameters to be considered on the battlefield ... Napoleon's reply ...

... vitesse, vitesse , vitesse! "

Vitesse, of course, is French speed ...

speed motorboat, 1923 Benedetta Cappa Marinetti.

Funny Marriage Phrase

was born in Naples on the problem of "garbage"

Living far from Naples, my friends have often asked me recently where the problem is rooted in the garbage in Naples. They think that the mere fact of being Neapolitan I should be aware of all the mechanisms of political, social, business and why not, even anthropological who are behind this phenomenon which, incidentally, has no equal, even in the same South It is not that expert, but the idea I have done over the years, regardless of whether you come from the beautiful and ravaged Campania, far from "Felix" as the Romans called it at the time of Scipio, by virtue of the fertility of its land and its enviable climate.
I try to summarize in a few lines of the "history" of this complex and endemic problem.
In principle, the problem of waste in Campania is attributable to two orders causes:

1. almost total lack of differentiation in the collection of waste (except for some areas of Salerno and Irpinia, where, on the contrary, the differentiation comes up to 85%).
2. Exploitation of emergency situations, once created, by criminal organizations and businesses by disposing of the camp, in collusion with strong organizations even those members of the same.

The first cause is due to a over twenty years of marriage between political, business and the Camorra through the system of CONSORTIA joint venture, public and private. This system has actually allowed agl'imprenditori engaged in the disposal, in collusion with the mafia and protected by a large share of local political power to circumvent all the control mechanisms, both national and Community level, making the "consortium" a kind monopolistic cartel that inevitably ends up penalizing the competition and, ultimately, companies that win tenders can only be those belonging to the consortium. The fact, then, that such groups have a financial component public (sponsored by political parties and local government) and one private (the business community) means that the public portion of the contract to ensure the collection of waste in all municipalities of reality Consortium (eliminating any possible competition from other companies), but it also means that individuals from approprino profits, leaving all the expenses and losses to the public. In the end, therefore, spend little or nothing to the private party, but s'intascano all the profits. Obviously, such undertakings are almost always close to the Camorra, or even would be able to stand in the forefront in the consortium. The earnings of these companies are made even more conspicuous by the fact that, since the firms colluded, they have no intention of complying with national and community structure that are given, just that the "consortium, in some way lets do it with a series of artful deceptions of existing rules to their advantage by using the rules that govern life and activities of the consortiums. So, instead of promoting separate collection, recycling, incineration and gl'interventi of termoriduzione, they prefer only to classic landfills (many of which are also unfair and illegal), the old and traditional in which pit all possible, even those that waste should not end there because absolutely harmful . In this way the waste cycle is not completed, in some cases, even part and landfills eventually reach saturation.
The political class has always pretended not to understand that until it all ended in a landfill you could not get to a situation of saturation. In all civilized countries it is known that very little has to go to landfill, the smallest part of a general sample of urban waste, agricultural and industrial applications. Mention
aside, then, deserve the toxic waste, whose disposal the normal price would be about 70-80 cents per kg, while the companies of the Camorra they dispose of them illegally for about 10 cents per kg, destroying every form of competition because only a contractor does not dispose of these crazy prices.

The second set of causes lies in the state of emergency that is created for the reasons stated above. face of the emergency, the streets filled with waste, with the population on a war footing, the Camorra, the enterprises themselves end up offering to dispose of the surplus in their landfills, pushing up prices, using its emergency . In these cases, the commissioners of the government (De Gennaro and the various Bertolaso, for instance), but to start the collection and release piles of garbage from the streets, buying even in the eyes of voters in favor of the governments that hired them, turn a blind eye to the nature of the landfill that is going to be involved and the type of disposal practices. In the end it has the paradoxical case of an emergency that disposal in landfills is inadequate and illegal, mostly owned by the Camorra, which for these disposals take rivers of money from government and police stations, in addition, gets a standing outside deleterious emergence could never achieve. It is, in other words, the classic case of realization of the famous Neapolitan proverb "Horn and Mazza," referring, of course, the citizens of Campania.
In the end, therefore, prevail this approximate solution and the fall-back only because the face of upcoming elections and / or election campaigns, politicians interested in cleaning up the city and reach the result in positive affect citizens, regardless of the method used to do it.
In principle, it is a bit 'this is the story of the disposal in Campania and Naples in particular. Even the last cleaning, in my opinion just a facade, because the suburbs and some areas of the province are still under water from the waste, under this policy patch, as he called 10 years ago my professor of 'politics of' environment, "John Leo University of Naples. A policy not only patch, but that does not have a strong constituency behind any long-range planning nor a cut at the root of the problem . And then there's the classic turn of the knife in when they feel Neapolitans 2 out of 3 said: "This government at least some sort of cleaning has made it, who did not even existed before this." Oh well, what to say, "alive and lively Naples Italy."

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Gigi Landi

Brown Spotting Period

blow to the Casalesi clan: made 107 arrests

the early hours of today there has been a police blitz against Caserta Camorra clan Casalesi, to make 107 arrests. Coordinated by the Central Directorate of the Police Anti-Crime, concerning the operation of the organization leaders and soldiers operating not only in Caserta and in southern Lazio, but also with national and international connections. The GdF is going to the seizure of movable and immovable property and commercial companies related to the clan for 100 mln euro.Tre alleged killer of the massacre in Castel Volturno (Caserta), in which six African immigrants were killed, Stan in their hideout in the province of Naples. And yet, arrests of members of the Casalesi clan, including the wife of the super boss Francesco Schiavone, told Sandokan. Two major operations of the police, almost simultaneously, Today marked a victory of the state, in what he called the Interior Minister, Roberto Maroni, "a day to be framed." Casale SEIZED ASSETS FOR OVER 100 MILLION anticamorra The operation last night led to the seizure of property belonging the Casalesi clan for a total value of over € 100 million. This was announced by Interior Minister Roberto Maroni, during a press conference at Palazzo Chigi. "They were seized - said the minister - 48 companies, 148 vehicles, 134 buildings and 13 horses." MARONI: Casale severe blow on "Tonight we have dealt a blow to the Casalesi clan." This was stated by Interior Minister Roberto Maroni. The minister, in conference Print at Palazzo Chigi, stressed that "all state structures have acted together." "The war against the Camorra - has said - will continue until it is won. It is the 'first major response that the state gives to the war declared by the Camorra." "This morning he called me to congratulate the Head of State". NAPOLITANO: RECOGNIZED first party "The response to the aggression of organized crime demonstrates the ability of state forces, rapid reaction and concrete." said the President of the Republic Giorgio Napolitano, who gave to the Prosecutor of Naples, the Chief of Police and Commanders Carabinieri and Guardia di Finanza my deepest satisfaction surveys and transactions that led to the capture of prominent representatives of the clan.

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From "TORRESETTE" - Tuesday 30 September 2008