Tag Archives: Egypt

China’s middle-class wants souvenirs

August 10th, 2010

The West’s bookshelves are already cluttered by souvenirs purchased in Egypt. Now for China.

The overseas edition of the People’s Daily has written about overseas Chinese bringing gifts home to friends. It used to be a no-brainer. Not anymore. In the 1980s, relatives wanted clothes and daily goods. But China has grown wealthy since then. Besides, the article argues, most of this stuff is made in China, even if it’s sold overseas as a local product. I feel for one embarrassed returnee who is told by her brother: “If you can’t find anything else, it’s better not to bring that type of thing anymore”.

One step forward. Two back.

August 2nd, 2010

One step forward. Two back. Egypt’s Masry AI Youm reports that China is asking for 40-year land rights to develop the North-West Suez Gulf Economic Zone. The request is resulting in a conflict between the Chinese investors and Egypt’s Ministry of Investment.

This is a project that has been under development for some time. And I have heard that only minimal progress has been made so far. A former advisor to the China-Egypt Business Council, Doctor Abdul Aziz Hamdi, is quoted in the article as warning that Chinese investors may even leave because of the zone’s bureaucracy and a lack of flexibility, even unpredictability, in decision-making.

Syria grabs headlines. But it’s results that matter.

July 9th, 2010

Al Hayat recently wrote about an investment conference in Syria‘s sovereign provinces. I was initially please to read that Chinese investors were in attendance. But I spoke with an ex-Syrian Minister of Finance in Doha last month, and he said that while agreements are being signed, far fewer are being implemented owing to the legal uncertainty of the investment.

It‘s an age-old complaint about emerging markets. “The legislation is there. The enforcement is not“. It’s one reason I’m more excited about Egypt’s opportunities (see “Egypt as Europe’s Backdoor”).

Egypt as a European “eagle’s nest”

June 22nd, 2010

I read that China wants to invest in Greece’s main port, taking advantage of a “fire-sale” as Greece extricates itself from a debt crisis.

Why is China so interested in an economy on Europe’s periphery? China’s exports to Greece aren’t large. But the country is as a useful hub for Chinese manufacturers trying to sell into Eastern and Southern Europe. That’s one reason.

Hui Muslims take a short-cut to Dubai

May 26th, 2010

China‘s Muslim Hui population is important to the country‘s ties with the Middle East. The Hui are smaller in numbers than the majority Han, but they play an outsized role because of their status as China‘s largest Muslim population. So, I‘m always keen to see signs of their activities in the region. Here are two stories:

The first explains how a chartered flight has started between Yinchuan, the capital of the Hui‘s province of Ningxia, and Shenzhen in the south. The flight is used to send goods by air-freight, via Shenzhen, to Dubai. Previously, the article states, the goods had to travel through ports in Tianjin, which took up to 15 days. This creates a more direct link.

Egypt’s air-conditioning industry heats up

May 9th, 2010

It’s not obvious that the Middle East’s low-cost economies can compete with China. However, I’ve long argued that China might yet invest in the region itself. If so, it is an important part of global rebalancing. An earlier blog noted that Haixin, a Chinese air-conditioning manufacturer, is building a factory south of Cairo. But a reader has also alerted me to the fact that GD Midea Holding, and an ever larger Chinese manufacturer has proposed to buy a 32% stake in Egypt’s Misr Conditioning, also known as MIRACO, for $57 million.

It seems like Egypt is attracting attention is a hub for the air-conditioning industry. It makes some sense given the region’s climate and rising incomes. (And I’m talking Africa, not just the Middle East).

More quality control problems. But this time in Egypt.

May 3rd, 2010

A reader has alerted me to this article describing how China and Egypt have recently signed an agreement to tighten controls on China’s exports to Egypt. It seems to have had an effect. The article, in Al Masry Al Youm, notes that the prices of many Chinese-made goods, or their competitors, have increased. For instance, the prices for such goods as chandeliers and energy saving bulbs have reportedly risen between 30% to 40%. I can’t find the original Arabic-language article, but I did find a Chinese-language article providing more detail. It states that an agreement between the two countries was signed on May 1, 2009, and that it requires companies exporting to Egypt to first apply for a pre-shipment certificate from the Chinese authorities. 

China isn’t the only game in town. Egypt is catching attention.

February 14th, 2010

I’ve spent the past week chatting with logistics and sourcing managers at some of the world’s largest retailers. The point was to hear more about recent developments in China. But I learned as much about the Middle East.

I was in the China Club earlier in the week and heard that Egypt is a recent target for outsourcing. Why? Egypt’s labor costs are low, it’s close to Europe, and, most importantly, it’s familiar with European standards. Ok. Egypt isn’t going to replace China. But it’s certainly catching attention. I was in a Coffee Republic in Wan Chai later in the week.

Silk Road Gallery

Archive
Canton Trade Fair
August 12th, 2010

Editorials & Articles

“China cheat sheet helps investors survive”, Bloomberg, September 1, 2010

“No more silver bullets for Beijing”, Wall Street Journal, June 17, 2010

“China’s historic return to the Gulf”, Foreign Policy, April 2, 2010

Speaking Events

International Monetary Fund, Washington, October 10, 2010

SuperReturn Asia, Hong Kong, September 29, 2010

The Global Pricing Forum, Hong Kong, September 14, 2010