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Google Exploring Shanghai’s Free-Trade Zone

Companies such as Amazon and Apple use Shanghai’s free-trade zone to run some of their value-added services in China, due to the area’s looser rules on foreign capital.

Yang Jie reports: The jury is still out on the business benefits of Shanghai’s free-trade zone— but one notable U.S. tech giant is among the firms that has dipped a toe into the pilot area’s waters.

“The free-trade zone’s rules make it easier for foreign companies to run e-commerce operations, for example. But they have little benefit when it comes to activities such as Internet search and e-mail, which are dependent on the location of the server and the storage of data”

Google, of Mountain View, Calif., set up a company in Shanghai’s pioneer free-trade zone last year, according to online filings reviewed by The Wall Street Journal.

Companies such as Amazon and Apple use Shanghai’s free-trade zone to run some of their value-added services in China, due to the area’s looser rules on foreign capital and greater freedom in terms of industries that foreign businesses can participate in.

The free-trade zone’s rules make it easier for foreign companies to run e-commerce operations, for example. But they have little benefit when it comes to activities such as Internet search and e-mail, which are dependent on the location of the server and the storage of data, according to people familiar with the matter.

A Google spokesman declined to comment on the issue. The company’s establishment was first reported on Monday by The Paper, a Shanghai-based media outlet.
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‘Sorry, My Bad’: Chinese Ad Company Who Snooped Apple User Data Apologizes

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Source: WSJ


Apple Speeds Up Electric-Car Work

Daisuke Wakabayashi reports: Apple Inc. is accelerating efforts to build an electric car, designating it internally as a “committed project” and setting a target ship date for 2019, according to people familiar with the matter.

The go-ahead came after the company spent more than a year investigating the feasibility of an Apple-branded car, including meetings with two groups of government officials in California. Leaders of the project, code-named Titan , have been given permission to triple the 600-person team, the people familiar with the matter said.

‘We look at a number of things along the way, and we decided to really put out energies in a few of them.’

—Tim Cook, Apple’s CEO

Apple has hired experts in driverless cars, but the people familiar with Apple’s plans said the Cupertino, Calif., company doesn’t currently plan to make its first electric vehicle fully autonomous. That capability is part of the product’s long-term plans, the people familiar with the matter said.

[Read the full story here, at WSJ]

Apple’s commitment is a sign that the company sees an opportunity to become a player in the automotive industry by applying expertise that it has honed in developing iPhones—in areas such as batteries, sensors and hardware-software integration—to the next generation of cars.

An Apple spokesman declined to comment.

There are many unanswered questions about Apple’s automotive foray. It isn’t clear whether Apple has a manufacturing partner to become the car equivalent of Hon Hai Precision Industry Co., the Taiwanese contract manufacturer that builds most iPhones and is known by the trade name Foxconn. Most major auto makers build and run their own factories, but that hasn’t been Apple’s strategy with iPhones or iPads. Contract manufacturing in the auto industry usually is limited to a few niche models.

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The 2019 target is ambitious. Building a car is a complex endeavor, even more so for a company without any experience. Once Apple completes its designs and prototypes, a vehicle would still need to undergo a litany of tests before it could clear regulatory hurdles.

In Apple’s parlance, a “ship date” doesn’t necessarily mean the date that customers receive a new product; it can also mean the date that engineers sign off on the product’s main features.

[Read the full text of Daisuke Wakabayashi‘s article here, at WSJ]

It isn’t uncommon for a project of this size and complexity to miss ship date deadlines. People familiar with the project said there is skepticism within the team that the 2019 target is achievable. Read the rest of this entry »


China launches free trade zone in Shanghai

Workers finish off a large sign that reads "China (Shanghai) Pilot Free Trade Zone", on September 23, 2013 (AFP)

Workers finish off a large sign that reads “China (Shanghai) Pilot Free Trade Zone”, on September 23, 2013 (AFP)

Shanghai (AFP) –  China launched a free trade zone in its commercial hub Shanghai on Sunday, state-media reported, with the project seen as a testing ground for much-needed reforms in the world’s second largest economy.

The zone, which covers 29 square kilometres (11 square miles), “started operating Sunday”, the official Xinhua news agency said, adding that it was “a test bed for the Chinese leadership’s drive of deepening market-oriented reforms and boosting economic vigour”.

Reforms in the zone will be closely-watched as a key test of China’s ability to make long-pledged structural changes as it attempts to shift its economic model in the face of slowing growth. Read the rest of this entry »