Figures

￡1.2 Billion

Bright Food (Group) Co., Ltd acquired a 60 percent stake in the UK breakfast cereal producer Weetabix, which was purchased by Lion Capital LLP, a private equity firm, in 2004. The deal, which includes a clause enabling Bright Food to acquire full ownership in two years, values Weetabix at ￡ 1.2 billion (RMB 12.2 billion) including debt. This price makes it the largest acquisition made by a Chinese food and beverage company in foreign territories. Bright Food plans to expand the 80-year-old Weetabix brand in Asia, particularly in China. It calls the deal a milestone in its history and hopes it will facilitate the entrance of its indigenous products to the British and eventually global market.

210,000

Canton Fair 2012 closed on May 5 having been attended by a record 210,000 or so buyers. The total value of contracts signed, however, was down 4.8 percent and 2.3 percent on the fairs 110th and 109th sessions. The value of transactions clinched with EU and U.S. buyers fell by 15.5 and 8.1 percent, respectively, while that with other emerging markets– India, Brazil, Russia and South Africa – rose 4.1 percent. That with African countries rose an even larger 13.5 percent. Both buyers, still suffering from the lingering global financial crisis, and domestic manufacturers, who are worried about the rising prices of raw materials and exchange rate fluctuations, are cautious about signing contracts for long-term orders. About 86.3 percent of orders signed at the fair were medium- and short-term deals.

230 Million

Cui Li, vice-minister of Chinas National Population and Family Planning Commission, said that the country is experiencing its largest ever demographic movement, with the migrant population hitting 230 million, 17 percent of the total population, last year. She made the remarks at a recent seminar jointly sponsored by the commission and the German Federal Ministry for Economic Cooperation and Development (BMZ). Wang Qian, the official in charge of service and management of migrant population from the commission,said that more than 70 percent of migrant workers bring their spouses, children and parents with them, and more than half live in their host cities for three years or longer, with an increasing number covered by pensions and medical and birth insurance. Marked improvement has been seen, thanks to efforts to bring migrant families children into local schools, with enrollment for children aged 7-12 now standing at 96 percent.

China World no.1 Grocery Market

The latest report from grocery industry researchers IGD finds that China has overtaken the United States to become the worlds biggest market for grocery shopping. The Chinese grocery sector was worth ￡607 billion at the end of 2011, while the US market came in at ￡572 billion over the same period – the second largest in the world. By 2015, the Chinese market is forecast to be worth ￡918 billion compared to a US value of ￡675 billion. All the BRIC(Brazil, Russia, India, China) nations will be in the top five grocery markets by 2015, with India displacing Japan as the worlds third largest grocery market by value. Joanne Denney-Finch, chief executive of IGD, said: “Chinas grocery growth story is phenomenal. Between 2006 and 2015, the Chinese grocery market is forecast to triple in value and to be worth nearly a trillion pounds. This rapid expansion has been fuelled by three main factors: rapid economic growth, population and rising food inflation.”She called China a crucial growth market for many of the worlds largest grocery retailers. Even beyond the major cities there are huge opportunities. Forecasts suggest there will be over 200 Chinese cities with a population over a million people by 2025. But Denney-Pinch warned that given Chinas size and diversity, its essential not to treat the country as one homogenous market.

IMP Forecasts Stronger Growth of Chinese economy

In its World Economic Outlook April 2012, the International Monetary Fund predicts that, notwithstanding slipping demand in the international market, Chinese economy will grow by 8.2 percent this year, compared with the Chinese governments goal of 7.5 percent. The growth rate is projected to climb to 8.8 percent in 2013. In the first quarter of this year Chinese economy slowed to 8.1 percent, well below the 9.7 percent of the same period of last year. But the IMF believes weakening external demand could be offset by a strong increase in domestic consumption and investment, driven by soaring profits of domestic businesses and steady gains in family incomes. Meanwhile it warned that housing contraction and flagging export markets will continue to put pressure on the Chinese economy. The report projects world economic growth at 3.5 percent for 2012, and 4.1 percent for 2013. It concludes that after suffering a major setback during 2011, global prospects are gradually strengthening, but downside risks remain. Improved activity in the United States during the second half of 2011 and better policies in the euro area in response to its deepening economic crisis have reduced the threat of a sharp global slowdown.

China and Germany Hold SME Summit

Chinas Ministry of Industry and Information Technology (MIIT) and the German Federal Ministry of Economics and Technology (BMWI) co-sponsored “Fit for Business with China,” a cooperation summit for the two countries small and mediumsized enterprises, held at the Hannover Messe Industrial Fair in late April. MIIT Vice Minister Liu Lihua and BMWI Vice Minister for Trade and International Financing KarlErnst Brauner attended the event and delivered speeches. Liu told the participants that the Chinese government pays particular attention to the development of the countrys SMEs, and has adopted a raft of measures to support them. At present, SMEs account for 99 percent of businesses in China. They contribute to about 60 percent of Chinas GDP, half of the governments tax revenues and provide nearly 80 percent of domestic job opportunities. Their role in economic growth, job creation, innovation stimulation and improvements in peoples livelihoods cannot be overestimated. He pointed out that the high degree of mutual compatibility in the structures of the Chinese and German economies allows extensive collaboration between the two countriesbusinesses. German SMEs are globally prominent in such fields as machinery, electronics, electric appliances and industrial design, while their Chinese counterparts are cost competitive, boast selfsufficient industrial chains and are swift in mobilizing labor and other resources required for mass production. Whats more, the vastness of the Chinese market provides plenty of space for the two countries SMEs to expand. The two vice ministers also signed an agreement on training executives for Chinese SMEs.