Shot in Arm for Online Pharmacies  

Caijing

March 2

While e-commerce has been booming in China over the past decade, online pharmacies, however, have been developing slowly due to tight government control. Online sale of prescription medicines still remains banned. The main reason is that hospitals have long held a dominant position in pharmaceutical sales in China. The majority of patients buy medicines from the hospitals where they undergo examinations, visiting pharmacies only occasionally to buy over-the-counter medication. Drug sales account for over 45 percent of public hospitals' income in China. Another problem is how to change people's buying habits as most are used to buying medicines from hospitals to save time.

However, the situation is about to change. It was reported earlier that the authorities are planning to open up online sale of prescription drugs. Once there is such a policy, e-commerce giants will be able to wrest sales from hospitals. Although facing multiple obstacles, e-pharmacies are expected to play a significant role in lowering medicine prices and promoting fair competition in the pharmaceutical market.

Saga of Sino-Foreign JVs

Oriental Outlook

February 26

The three decades after China launched its reform and opening-up policy in the late 1970s were a golden period for Sino-foreign joint ventures (JVs). In this issue, Oriental Outlook magazine looks at the development of such JVs over the years.

In the 1980s, JVs were almost the only means to attract foreign investment to China. Initially, the government allowed foreign investors access to the Chinese market in exchange for their technology by establishing such JVs.  

Since China joined the World Trade Organization in 2001, an increasing number of foreign investors have set up foreign-owned companies in many industries. Subsequently, more and more foreign investors have chosen to break away from the JV mold and establish companies on their own in China.

However, though more and more Chinese and foreign enterprises are parting company to develop independently, JVs are still the only way for foreign investors to enter the Chinese market in some industries such as aviation and finance. Also, for some Chinese and foreign companies, establishing JVs is still an easy and effective way of complementing each other's advantages.

Huawei's Expansion Abroad

Caixin

February 9

Ren Zhengfei, founder and CEO of Huawei Technologies, made a formal appearance at the World Economic Forum in Davos this year. Huawei has today become a global telecom equipment company with an annual sales volume of $46 billion and branches in 170 countries and regions. Caixin examines how Huawei expanded its overseas markets and grew into a global company.

Founded in Shenzhen in 1987, Huawei entered the international market in 1998. Like other Chinese companies, it initially focused on developing markets in the Middle East, Africa and Asia. Later, it expanded to more mature markets in Europe. After mainly pursuing a low-price strategy in developing countries, it changed its tack as European customers cared more about quality than price.

Most people think, like many Chinese companies, Huawei too won the market by selling products at low prices. At the beginning, low price was indeed a big advantage, helping the company enter new markets. But now, the article argues, globalization has prompted Huawei to pursue a high-quality strategy from its earlier low-price strategy.

The Harvard Business School once sent a team to Huawei to do a case study on its success. Before the research, the team had assumed the company's success lay in the low-price strategy and government support. But they changed their view after their research. The success of the company abroad lies in incorporating Western management and operation methods and integrating them with its own culture.

Green Tech Boon for GDP, Air Quality

Global Times

March 4

With the Chinese becoming more concerned about the health hazards posed by smog, how to combat smog garnered unprecedented attention during the annual sessions of the National People's Congress and the Chinese People's Political Consultative Conference held in Beijing in March.

The article argues that the country and the public have to be prepared for a prolonged fight against smog. It requires concerted efforts by the government, enterprises, scholars and the people. Smog, forecast to plague China for at least another 10 to 20 years, cannot be cleared overnight. Economic development and smog control must be coordinated. China has issued a slew of policies, including limiting emissions, encouraging the development of hi-tech sectors and promoting the use of clean energy. All these policies will help control smog. 

There is a huge market potential for enterprises investing in hi-tech industries as these can not only tackle the smog problem but also propel economic development.