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CONTENTS 30 Published monthly since 1990


Publisher China Economic Review Publishing Editor


Pete Sweeney


Contributing Editors Fergus Naughton, Ana Swanson, Christo- pher Beddor, Richard Wells Research Manager Ada Liu


Researchers Eden Pang, Sarah Chen, Prima Li, Zoe Wang, Ronnie Xiao Contributors Chen Baizhu, Rob Abbanat, Frank Yu, Paul French, Andrew Galbraith Art Director Frank Zheng Art Editor Siva Hu


Editorial Consultant Tim Burroughs Editor at Large Graham Earnshaw Associate Publisher Gareth Powell


Director of Accounts Neil Donaldson


CHINA ECONOMIC REVIEW (ISSN: 1350-6390) is published by China Economic Review Publishing


Enquiries cer@ChinaEconomicReview.com


Subscriptions subscriptions@ChinaEconomicReview.com


Addresses


The Plaza Building, 102 Lee High Road London, SE13 5PT, England


Room 2103, 21/F, Far East Consortium Building, 121 Des Voeux Road Central, Hong Kong


CHINA ECONOMIC REVIEW welcomes letters. Please write to the Editor at: letters@ChinaEconomicReview.com


THE HOUSE VIEW 4 OPINION


Te SEC investigation of reverse mergers should not be


overdone; Beijing’s ban on luxury ads is no ban on luxury 6 BEST OF THE WEBSITE


Lashou’s $1.1b valuation is unwarranted; Dylan did not protest in China, but he’s still sticking it to Te Man


MONTH IN REVIEW 6 PUNDITRY 7 BRIEFING


Te earthquake’s toll on Chinese business has just begun 8 SECTOR NEWS


8 CHINA BY NUMBERS 9 CHINA BUZZ 10 FAT DRAGON


An emerging land market could bring wealth and


opportunity to farmers 11 PAUL FRENCH’S DIARY


Li Ning flounders with yoga; IKEA courts Chinese superbrats; Unilever serves up suspect soup statistics 12 QUESTION OF THE MONTH


Advertising inquiries ads@ChinaEconomicReview.com Hong Kong: +852 3755 6729 Shanghai: +8621 5187 9633 ext 811


How long can the government keep higher production


costs from trickling down to the consumer? 14 LOCAL VOICES


Chinese business leaders and managers gripe about rising costs of labor and raw materials 16 COMPANIES: RETAIL


Media Markt’s model may succeed where Best Buy failed,


thanks to a smart partnership with Foxconn 18 PORTFOLIO


HKABC membership approved and certified


China Mass Media’s margins have dwindled; SkyPeople Fruit Juice presents the potential for fruitful returns


CULTURE 50 BOOK REVIEW


Décadence Mandchoue: Empress Cixi’s British lover tells all, or makes it all up ... too much information either way


TRAVELS TO THE WEST IS TRAVELING!


Graham Earnshaw’s epic foot trek across China will resume next month in Enterprise China magazine. For a free subscription, contact EnterpriseChina@sinomedia.net.


China Economic Review • May 2011 3 AFTER THE CLOSE


43 COMPANY INDEX 45 EXPOS & CONFERENCES 46 LISTINGS 48 ECONOMIC INDICATORS


SPECIAL REPORT: UNCONVENTIONAL GAS


Shale gas will satisfy some of China’s growing energy appetite, but the technology is not easy to crack


COVER BY ANDREW MOK: Find the Toronto-based illustrator at www.andrewmok.ca 20 QUESTION & ANSWER: ROMANO PRODI


Italy’s former prime minister on Wenzhou’s invasion of Italy and why he’s done with politics for good


TALKING POINTS 22 CHEN BAIZHU


Wages will rise, but companies should not rush to relocate 26 ROB ABBANAT


Te joys of enterpreneurship 28 FRANK YU Sina’s Twitter clone could re-define information-sharing


SPOTLIGHT: INDONESIA 39 SPLITTING STITCHES


Free trade has opened the floodgates for Chinese textiles 44 Q&A: PIKRI ILHAM K. OF GARUDA INDONESIA


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