In The News

Made in China: Wal-Mart Unions

Anita Chan October 12, 2006
Global labor leaders had long considered China’s unions as an arm of the government and not worthy of much respect. But that was before All-China Federation of Trade Unions (ACFTU) took on Wal-Mart managers in China and quickly set up union branches at more than 20 stores. The move – requiring grassroots organization that’s not been seen in China for more than 50 years – could signal more...

The World Bank's China Delusions

Weijan Shan September 29, 2006
The World Bank has suggested that substantial earnings by China firms, not debt, have fueled the nation’s growth. But that assumption could be wrong, argues a private-equity analyst, who examined the same data from the National Bureau of Statistics. Reported profits in China often include government subsides and are released before payment of income taxes, a rate of about 30 percent in the...

Be Careful What You Wish For

September 28, 2006
A global economy closely binds the prosperity of the US and China, points out Henry Paulson, US treasury secretary. The US has been among the loudest clamoring for China to increase the value of its currency – but appreciation in the yuan may not necessarily ease US economic woes. China’s competitive advantage is not linked to currency differences alone, but also labor costs as well. A rising...

Across Latin America, Mandarin Is in the Air

Juan Forero September 26, 2006
As a major customer of Latin America’s agricultural, energy and mineral resources, China has become a target of interest throughout South America. As a result, more business people in Argentina, Peru, Colombia and Chile study Chinese language. The US is the leading investor in South America, and English still stands as the second language of choice. Still, China funds all manner of Asian studies...

Why Globalization Is in Trouble – Part I

Branko Milanovic August 29, 2006
The dominant world powers historically pushed for globalization as a means of increasing wealth and influence. Yet those nations fret as the emerging powers of India and China embrace the same strategy. This two-part series by World Bank economist Branco Milanovic explores why both the world’s wealthiest and poorest nations fear globalization. In the first article, Milanovic argues that citizens...

A Misreading in India

Amelia Gentleman August 24, 2006
Coca-Cola and PepsiCo executives were confident that they could handle allegations, made by the Center for Science and the Environment, that products sold in India contained pesticides. But executives did not anticipate how quickly the news would spread through India, how local politicians would seize the opportunity to denounce the multinational corporations, and how explosive the issue could...

At France Télécom, Battle to Cut Jobs Breeds Odd Tactics

Leila Abboud August 23, 2006
A winery and scuba-diving shop, a magician and an opera singer – such are the small businesses and careers subsidized by France Télécom, the national telecommunications company. While preparing to list the company on the Paris stock exchange in the mid-1990s, executives recognized that its workforce was bloated. After nearly a decade of attempting to induce early retirement by offering generous...