DE Global has formed a joint venture with East West Associates of Charlotte, NC, USA.  This joint venture allows us to dramatically expand services offerings to clients.

Doing Business in China, Vietnam and Asia

Thousands of companies large and small are operating in Asia.  Many have entered the marketplace to service a growing Asian customer base and compete in the domestic market.  However, costs are increasing, domestic competitors are emerging and established US firms are adopting more sophisticated manufacturing strategies. 

Thus, the competitive bar is much higher and to be successful, companies must employ best manufacturing and operational practices in order to successfully compete.

Manufacturing and operational excellence is critical for companies operating in this market.  Asia has unique cultural and business practices, and as a result, companies need to apply tailored business practices to ensure their success in this competitive market.

East West provides manufacturing and operational consulting for those companies operating in the Asia Pacific region.  Our Team consists of seasoned operational executives from global corporations like IBM, Michelin, and Owens Corning and operates with US and Shanghai-based offices and resources. 

We assist firms in various stages of Doing Business in Asia, including:

• Identification and qualification of Asian suppliers and subcontractors;
• Start-up of Asian businesses (manufacturing plants, sales offices, subcontracting relationships, etc);
• Productivity process improvements and operational trouble -shooting at existing Chinese facilities; and
• Investment in Asian operations.
  

We have highlighted Four Scenarios in which we are assisting companies Doing Business in Asia:

 Scenario No. 1
Company is sourcing products, or subcontracting, or establishing a
Business Development & Sales Office in Asia

Services include:

• Sourcing Finished and Component Products
• Identification and Qualification of Asian Suppliers
• Supply Chain Development
• Supplier Assessments
• Competitive Intelligence Reports and Briefings
• Industry Market Assessments
• Business License Formation and Registration
• Identification of Qualified Chinese Employees
• Identification of Available Office Space and Support Services
• Sourcing Finished and Component Products 

Scenario No. 2
Company is establishing Asian manufacturing capabilities

Services include:

• All Services in Scenario No. 1
• Site Selection
• Operational Business Plan Development
• Project Plan
• Facility Negotiations
• Facility Construction and Installations
• Plant Start-up and Qualification
• Employee Identification, Qualification and Training
• Operational and Manufacturing Process Development
• Interim General Management
• Joint Venture Partner Identification
• Joint Venture Negotiations

Scenario No. 3
Company needs Business Process Improvements or Operational Trouble-Shooting
at existing Asian operations
 

Services include:

• All Services in Scenarios No. 1 and No. 2
• Productivity and Manufacturing Process Improvements
• Resolution of Operating Problems, including:
• Supply Chain Failures
• Production Ramp-up and Quality Monitoring
• Verification of Manufacturing Capability vs. Specifications
• Human Resource Policies and Retention Problems
• Management and Leadership
• IP Protection and Mitigation Procedures
• Operational Transparency
• Asian Government Relations

Scenario No. 4
Company desires to acquire or divest of existing Asian companies

.Services include:

• All Services in Scenarios No. 1, 2 and 3
• Development of Asian Investment Criteria
• Identification of Investment Targets
• Manufacturing and Operational Due Diligence
• Negotiation
• Integration Planning
• Transition Execution
• Post Closing Compliance
• Cultural Training

Failure to adequately plan and execute in China can lead to major cost overruns which mitigate the potential market benefits.  Underestimating the complexity and resources required to operate successfully in Asia can also create real problems supplying critical customers and drain capital.  East West can assist your company in mitigating the risks and ensuring the successful management of your company’s Asian operations.

East West China, LLC (EWC) is a manufacturing and operational consulting firm providing strategic implementation and hands-on problem-solving services for clients  in the US and Asia Pacific.  
We have a team of seasoned executives from leading global corporations with deep operational experience in Asia, including IBM, Motorola, Michelin, Sonoco Products and Owens Corning.  Our methodologies and experience provide structure and clarity for companies navigating the Asian marketplace.  EWC operates with US and Shanghai, China offices which interface extensively with the client to ensure seamless execution.

For more information, please visit our website at www.eastwestassoc.com or www.eastwestchina.net , email the company at info@eastwestassoc.com or info@eastwestchina.net or call our Charlotte, NC headquarters at +1 704-364-8893 or Shanghai, China headquarters at +86 21 5116 8790.

(China Daily) Updated: 2007-07-05 06:55
With contaminated drinking water surfacing in Shuyang County, East China’s Jiangsu Province, some 200,000 local residents could not get safe water from their taps for more than 40 hours. This is the second incident of its kind in a month in the same province, one of the richest in the country. It is beyond doubt that the Yihe River, the source of the county’s drinking water, was wantonly polluted although investigators are yet to determine the cause.

The conclusion by the State Environmental Protection Administration (SEPA) that water pollution has reached the point of posing a serious threat to the normal life of residents is no exaggeration. The repeated contamination of drinking water sends a somber message. Local governments’ apathy and inaction toward the increasingly hazardous water pollution can well be considered life-threatening political pollution. Local leaders’ business-as-usual all too often includes giving approval to the operation of polluting firms.

Premier Wen Jiabao stressed at a conference last week that pollution control and treatment in the country’s major lakes must be at the top of local governments’ agendas. This shows the resolve of the central government in environmental protection.

SEPA Deputy Director Pan Yue made the point that pollution cannot be stopped unless local government leaders are held legally accountable for the local environment. The repeated drinking water contamination incidents have already brought home the urgency of pollution control.
(China Daily 07/05/2007 page10)
For full article see http://www.chinadaily.net/opinion/2007-07/05/content_910483.htm

By Sun Xiaohua (China Daily) Updated: 2007-07-04 06:40 

No new industrial projects will be approved in several cities and industrial parks along four major river systems to prevent them from being further contaminated. Six cities, two counties and five industrial zones were indicted by the State Environmental Protection Administration (SEPA) for their role in polluting the Yangtze, Yellow, Huaihe and Haihe rivers. 

SEPA will not approve any projects for three months apart from treatment plants and recycling facilities; and the ban will not be lifted until the sources of untreated wastewater are shut down and treatment facilities installed. 

Pan Yue, vice-minister of SEPA, told China Daily that the environmental authorities had zeroed in on the areas following a thorough investigation. Surveillance by the environmental watchdog from January to April showed that water quality in these places was extremely poor, said Pan. Altogether, 32 heavily polluting factories and six wastewater treatment plants were blacklisted by SEPA and ordered to fix their “environmental problems” in three months. 

“Suspending approval of new industrial projects is the toughest measure that SEPA can take, given its (limited) authority,” Pan said. But he is worried about vested local interests. “Pursuit of short-term goals is leading to ever increasing pollution despite various measures,” Pan said. “Traditional ways of development have caused the near breakdown of China’s resources and environment; and people’s lives are in great danger.” 

Last year, polluted or seriously polluted water in the country’s seven major river systems accounted for 26 percent of the total. And water quality in seven out of the nine lakes under surveillance was so bad that it posed danger to human skin on contact. 

(China Daily 07/04/2007 page1) For the full article see http://www.chinadaily.com.cn/china/2007-07/04/content_909239.htm

AHN Media, quoting JD Power-Automotive Resources Asia, reports that China will soon surpass Japan to be the region’s biggest car manufacturer by 2010 when annual output is expected to reach 11 million light vehicles. For 2007, the Chinese auto market is expected to expand by 14.3 percent to 7.6 million units until it eventually reaches 11 million units by 2010.  For the full story see

http://www.allheadlinenews.com/articles/7006978047

China’s national business climate index rose 8.2 percent year on year to 139.7 points in the first quarter, said the National Bureau of Statistics (NBS) on Thursday.

The index, based on a survey of 19,500 Chinese enterprises by the NBS, has remained at a high level since the second half of 2003.

The mining sector recorded the highest index at 157.9 points, followed by the information technology sector with 155.1 points and the wholesale and retail trade with 151.7 points.

The index for the catering sector was 148.8 points, up 13.5 points from a year ago, the highest rise of any sector.

The index for large enterprises was 162.7 points, much higher than the indices for medium and small sized ones which stood at 126.7 points and 116.7 points.

The indices for China’s eastern, central and western regions were 143.9 points, 138.0 points and 132.8 points, up 10.1 points, 5.5 points and 8.7 points respectively.

Source: Xinhua http://english.people.com.cn/200704/06/eng20070406_364258.html