Tag Archives: Irish

China – Under The Hood: Is there really a market for gluten-free food products in China?

A commercial oatmeal producer in Ireland recently sought my opinion regarding China market potential for gluten-free food products.

Gluten-free food China

Before answering, in addition to our own secondary research, I reached out to four China and Hong food procurement experts whose inputs I attach weight to: The procurement directors of both the largest food retailer in the province of Zhejiang and a leading online food platform in China, as well as an established Irish food importer in Hong Kong, and the procurement manager of a leading food retailer in Hong Kong.

Gluten-free food China 2The verdict: As always, China is a very tough nut to crack.  To arrive at an in-depth understanding of the market potential would require a full investigation into the growing instance of coeliac in China brought about as Chinese consumers adopt a more Western lifestyle, with increased consumption of wheat and gluten-containing products. Even so as it stands there is no significant demand for gluten-free products in China.

Until there is large pool of coeliac patients, increasing consumer awareness about coeliac disease and the benefits of a gluten free diet in controlling the symptoms, and rising government funding in the China this position will likely remain unchanged over the next three years, at a minimum.

Present Position

  • Consumer awareness of gluten-free products in China is low, with most gluten-free products being consumed by either the expatriate population or by Chinese High Net Worth Individuals.
  • Its incidence and distribution being largely unknown, officially, rates of coeliac disease in China are also low. As already noted, this lack of evidence indicating the existence, or extent, of coeliac among the Chinese population makes it a challenge to draw objective conclusions regarding the market size of gluten-free food products.
  • On the whole China media have been dismissive of the benefits and need for gluten-free products in China. An example of such sentiment is highlighted in one such article that refers to gluten-free as “an American obsession providing psychological comfort…” openly questioning “are gluten-free foods really better for the body?

(Source: http://www.qdaily.com/articles/28547.html).

Future Scenario

  • Typically, in terms of tackling coeliac as a public health issue, the central government and local authorities would be expected to take the initial lead in directing strategies for coeliac prevention thus raising public awareness and opening the market to local and international manufacturers / brands.
  • There is little doubt a major rise in the prevalence of coeliac is less than a decade away, especially in urban environments where the risk of is becoming a common disease would be higher.
  • With future insight and food allergies becoming more common, a shift in the mindset of Chinese consumers will ultimately push food exporters to phase out gluten and nut products.
  • Direct consequences of the numerous safety scandals that have hitherto plagued China’s food industry have been stronger consumer awareness of harmful food ingredients and more stringent labelling requirements. In this context for the consumer becoming gluten free may be about more the inclusions in a specific food product, not the food product itself.
  • At the most basic level, and this point is worth bearing in mind regarding a potential ‘toe in the waterTaobao (https://world.taobao.com/) or daigou D2C (http://www.daigousales.com/) cross-border ecommerce play, the main factors driving consumer purchasing decisions will continue to be quality and price, rather than following a gluten free diet.

Current gluten-free food / channels in China

  • Tmall http://www.tmall.com[Tmall is the largest business-to-consumer (B2C) retail platform in Asia, and most visited B2C online platform in China]

The following link is in Chinese.

https://list.tmall.com/search_product.htm?spm=a220m.1000858.1000723.2.4a1504c0s85EBC&&from=rs_1_key-top-s&q=%CE%DE%F4%EF%D6%CA%CA%B3%C6%B7

The results from a search for “Gluten Free” in Chinese.  Scroll up and down to review the images and pricing, which is in RMB or CNY [FYI 1 RMB = Euro 0.13 -date 3rd November 2017]. The sales volumes are particularly small given that the fee for setting up a shop-front on Tmall, or selling via such a shop are very high. The market is embryonic.

  • Taobao [Taobao is the biggest consumer-to-consumer (C2C) e-commerce platform based in China]. The following link is in Chinese

https://s.taobao.com/search?q=%E6%97%A0%E9%BA%B8%E8%B4%A8&type=p&tmhkh5=&spm=a21wu.241046-global.a2227oh.d100&from=sea_1_searchbutton&catId=100

The results from a search for “gluten free” in Chinese. Scroll up and down to review the images and pricing, which is in RMB or CNY [FYI 1 RMB = Euro 0.13 -date 3rd November 2017] The sales volumes are somewhat higher given that its only November 3rd… Yet, most of these foreign brands are airmailed from the source directly to the customer once an order has been placed. This maybe a low-cost option for testing the market.  There are other daigou, mobile apps and social network shopping apps that may also be useful for toe dipping. However, gluten-free food producers are not going to generate significant revenue streams from such cross-border channels until knowledge of gluten-free food benefits is much more widespread

Hong Kong?

Beyond the expat community there is “little demand” for gluten-free food products, and that’s from two trusted sources who are my first ports of call for all Hong Kong-related food matters.

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Here’s proof that 2014 was a landmark year in Ireland – China Relations

GREAT WALL OF CHINA BECOMES THE ‘GREEN WALL OF CHINA’ AS IT

The Green Wall of China

In terms of Ireland – China political and trade relations 2014 was a pivotal year. The following birds-eye view draws attention to the main breakthroughs as well as offering a hunch or two regarding how the kinship can be expected to develop into 2015.

Part 1: 2014 – The year that was

Part 2: 2015 – The year that will be

Open Sesame

– Export opportunities

– Strategic sourcing

– Foreign Direct Investment (FDI)

Accurate Group – China Market Makers

Part 1: 2014 -The year that was

Accurate China Insight China Investment Corporation 2014 a pivotal year in china ireland relations– The year had barely commenced when China Investment Corp (CIC) and The National Pension Reserve Fund announced an investment of US$100 million in The China Ireland Technology Growth Capital Fund which is turn will invest in fast-growing Irish start-up technology companies trying to expand into China.

– Another subtle telltale sign of the improving relationship was the Chinese Embassy in Dublin‘s anticipation of ” a need for increased facilities to carry out embassy, consular and state business“, as noted in the Irish Independent last February. It was around this time the Irish Government announced its intention to open a Consulate in Hong Kong.

– The first big dairy export deal of the year was won by Northern Ireland‘s Dale Farm – whey protein, a deal which effectively pushed its annual exports to China up to £20 million a year.

Chinese leasing company Bank of Communications Financial Leasing (JY Aviation) became the third Chinese aircraft leasing company to set up its European headquarters in Dublin..

WrightBus hits the streets of Hong Kong

WrightBus hits the streets of Hong Kong

– In March, Northern Ireland bus-maker Wrightbus of Ballymena won orders for more than 50 new buses in Hong Kong.

– While the photograph of President Higgins of Ireland being welcomed to China by President Xi Jinping in December 2014 represents the highest form of State engagement in diplomatic protocol, perhaps the most iconic image of the Ireland – China relationship in 2014 was the greening of China’s most important cultural icon, the Great Wall to celebrate St. Patrick’s Day.

– Meanwhile, the Bank of Ireland became the first bank in Ireland to offer business customers the facility to make payments in Chinese Yuan / RMB.

– H.E. Xu Jianguo was appointed Chinese ambassador to Ireland. Tellingly, his previous posting was as Chinese ambassador to New Zealand, the main conduit for dairy product imports into China (courtesy of a generous free trade agreement).

– However, the year wasn’t all about agriculture. Tencent, games industry giant and China’s largest and most used Internet service portal, chose Ireland’s Havok to deliver for its Iron Knight game dynamic battlefields, enhanced graphics, efficient character AI, more realistic animations and detailed destruction effects to offer players the most authentic fighting action possible. All-in-all, a huge milestone for Havok, the premier provider of interactive software and services for digital media creators in the games and entertainment industries.

Havok secured a landmark deal with Tencent

Havok secured a landmark deal with Tencent

– In May 30 Irish diary companies had products approved for export to China following stringent audits by Chinese authorities, a significant milestone for Ireland’s dairy industry.

– Also in May, then Minister for Tourism Leo Varadkar leading a trade mission to China commented: “I think everyone accepts that sooner or later there will be direct flights between Ireland and China, most likely Dublin and Beijing...”

– …while a leading tourism survey in China observed that 62% of Chinese travellers were reasonably familiar with Ireland.

– Huawei Technologies, the leading Chinese multinational networking and telecommunications equipment and services giant announced the establishment of a new R&D centre in Athlone.

Huawei opened an R&D centre in Athlone

Huawei opened an R&D centre in Athlone

– ChinaHR, the fast growing Asia-focused recruitment company owned by Leslie Buckley and Denis O’Brien, which employs 2,600 staff in 26 cities across China, was said to be mulling over plans to float in Hong Kong. There was also muted talk (but little substance) of a potential listing in Hong Kong by PCH International, which sells product development and supply chain management services – and is widely considered Ireland’s biggest exporter in China.

– On a serious note the Chinese sheep shearing team arrived in Ireland to compete for the first time in the World Sheep Shearing Championships. On a less serious note, Irish-American comedian Des Bishop wowed Chinese television audiences… in Chinese!

– H.E. Xu Jianguo, the new Chinese ambassador to Ireland, undertook a well-publicised pilgrimage to what Chinese officials consider to be Ireland’s Mecca – the Shannon Free Zone, following in the footsteps of Jiang Zemin’s 1980 trip to study the Shannon Free Zone model, which has since been adopted across China in the development of its hugely successful special economic zones.

– In June, Dublin Airport announced its intention to secure a direct air-link to China by mid-2016.

Accurate China Insight Unionpay 2014 a pivotal year in china ireland relations– June also saw a boost to Irish businesses as AIB Merchant Services enabled acceptance of the Chinese card UnionPay.

– During the same month a new visa to let Chinese tourists travel freely between Ireland and the UK was announced, a significant milestone for Irish tourism.

– Mr. Liu Yunshan, a leading member of the Politburo Standing Committee of the Communist Party of China, was the most senior Chinese official to visit Ireland in 2014. He was accompanied by four ministers in a delegation of fifty-one officials. Since 2011 nearly thirty Chinese Ministers or Vice-Ministers have visited Ireland. Clearly, the Chinese leadership considers a strengthening of the ties between the two nations to be of benefit for China.

– In October it was announced that China is to open a consulate in Belfast, Northern Ireland.

– On the education front, Jan O’Sullivan, Minister for Education and Skills’s trade mission to China in late October was a fitting backdrop to a slew of positive news announcements:

– University College Dublin (UCD) opened an office in Beijing as Irish universities sought to step up their expansion into China. UCD estimated it has 1,000 alumni in China with over 100 based in Beijing.

– Trinity (TCD) announced a new Masters in Chinese Studies and the opening of the Trinity Centre for Asian Studies, which it says “aim to advance Chinese scholarship and to promote Ireland as a leading knowledge centre for pan-Asian language studies and research”.

– University of Limerick (UL) also signed deals with four Chinese institutions.

– In November, as the year drew to a close, Agriculture Minister Simon Coveney led a major trade mission of 37 companies to China. He also had plenty of positive news to announce:

– Kerrygold unveiled a new milk product for Chinese market, under the Chinese trade mark “Jin Kai Li”.

UCD, Irish company Richard Keenan & Co and the Chinese Academy of Agricultural Sciences joined forces to form the China-Ireland Dairy Science and Technology Centre with the goal of improving feeding efficiency, animal health and reduced environmental impact of dairy farming.

– Kerry Group launched a new Irish made infant nutrition product ‘Green Love’ for the China market. Produced at Kerry’s new €40 million facility in Charleville, Co. Cork. More importantly, 100 new jobs were created.

– Glanbia launched its Avonmore UHT milk brand in China.

Glanbia launches Avonmore UHT milk in China

Glanbia launched Avonmore UHT milk in China

Richard Keenan & Co entered into a franchise partnership with Shanghai Shengmu Livestock Company, a €7 million deal to accelerate sales of Richard Keenan‘s mixer wagons across the Chinese market.

A breakthrough year for Richard Keenan & Co

A breakthrough year for Richard Keenan & Co.

– Machinery company Samco, based in Adare, Co. Limerick, secured a purchase agreement with two companies based in Inner Mongolia, Northern China for their SAMCO maize planting machine and bio-degradable mulch film.

– Bord Iascaigh Mhara (BIM), along with 12 Irish seafood companies, exhibiting to key buyers at the premier China Seafood Expo in Qingdao, highlighting boarfish in particular as a new viable product option.

Accurate China Insight Irish boarfish- 2014 a pivotal year in china ireland relations

– Irish mobile technology company Cubic Telecom signed a lucrative global agreement with China Unicom, to provide machine-to-machine (M2M) services to enterprise customers across mainland China and Hong Kong.

– Arthur Cox Listing Services acted as Listing Agent on the first Chinese transaction to list in Ireland, when China Petrochemical Corporation acted as guarantor for Sinopec Group Overseas Development (2013) Limited which listed its Dollar and Euro Senior Notes on the Irish Stock Exchange (ISE).

– Other notable deals for the island included: AB Pneumatics, a Lisburn Northern Ireland-based manufacturer of air springs for vehicle seating, won new business to supply £600,000 (€766,000) a year of equipment to Commercial Vehicle Group (CVG) in Shanghai; Antrim-based Fastank won a deal to supply portable liquid storage systems for environmental clean-up operations at a major chemical plant in Shanghai; while BI Electrical, a specialist in electrical engineering services, has signed a £20 million (€25.5 million) China agreement with Keenshine in Shanghai.

– In December a team of Chinese veterinary inspectors visited Ireland to officially inspected Irish beef slaughtering and processing facilities. Irish beef producers are competing with Canadian and USA beef producers to gain China export approval. For Ireland to be the first EU member to have its beef approved for export to China would be major coup.

– The year ended on a high note with President Higgins of Ireland’s historic state visit to Beijing, Shanghai and Hangzhou, during which it was announced that President Xi Jinping of China had accepted an invitation to visit Ireland. (For additional insight into President Higgins of Ireland’s State Visit to China click the following url:  http://wp.me/p15Yzr-182)

President Xi Jinping of China welcomes President Higgins of Ireland to China

President Xi Jinping of China welcomed President Higgins of Ireland to China

Part 2: 2015 – The year that will be?

The one certainty in the relationship is that in the run-up to President Xi Jinping‘s return trip to Ireland, which is more likely to happen in 2016 (although with the next Irish general election expected to take place no later than 3 April 2016, the Irish Government will be pushing for President Xi Jinping to make undertake his State Visit to Ireland during the latter part of 2015) the political, economic and cultural relationship can only grow stronger. The one vulnerability is the transient Chinese economy, which although experiencing an extended period of volatility is unlikely to go off the rails.

Open Sesame

So soon after the close of such a vibrant year in Ireland – China relations, any talk of China’s massive appetite for Ireland’s baby formula, beef, pork suddenly metamorphosing into becoming a major cash cow at this point, is greatly overstated.

Every country trading with China wants a piece of the action, and in the food and drink sector competition is set to grow in intensity. For instance, Chile recently started exporting live cattle to China, while Australia recently concluded a free trade agreement with China that will give its exporters preferential pricing similar to that already enjoyed by New Zealand exporters.

It is highly probable that 2015 will see Irish beef producers benefit from the strengthened political bond by having their produce approved for export to China. Moreover, the formal announcement of a direct air-link and a significant rise in the numbers of tourists visiting Ireland are also highly likely.

Export opportunities

Relative to the overall size of the China market, for Irish businesses in search of China market opportunities, we would also beat the drum for:

  • Agricultural Technology;
  • Cleantech;
  • Construction Products and Technology;
  • Engineering;
  • Food Technology and Ingredients;
  • Healthcare and Hygiene Solutions;
  • Industrial Components (OEM suppliers), Life Sciences, Medical Devices (class I and II);

While in the B2C space, where domestic consumption is creating opportunities for foreign brands to sell products in China, the sectors we would make a pitch for include:

  • Foods and functional foods sold through grocery retail, health stores and on-line.
  • OTC and other products, e.g. baby products, consumer medical devices and aids, cosmetics, etc. that are sold through pharmacies, parapharmacies, health stores and on-line;
Foreign Direct Investment (FDI)

In addition, we are of the opinion that the time is ripe for a significant FDI from China, and in this regard two words come to mind: ‘Open Sesame’

Driven out of necessity, Hangzhou-based E-commerce behemoth Alibaba Group – arguably the world’s largest online and mobile company – is actively plotting its expansion to become a truly global company. Investments in Europe and the USA beckon. In this regard, we would be inclined to think the December visit by President Higgins and Minister of Finance Michael Noonan to Alibaba‘s headquarters in Hangzhou would have been quite effective in putting the squeeze on Jack Ma, Founder and Chairman, Alibaba Group, in considering Ireland as a possible location for further European expansion, bearing in mind that Alibaba already has an office in London’s Canary Wharf. (For additional insight into President Higgins’s visit to Hangzhou click the following url: http://wp.me/p15Yzr-18c)

President Higgins of Ireland meets Jack Ma, Founder and Chairman of Alibaba Group, in Hangzhou

President Higgins of Ireland met with Mr. Jack Ma, Founder and Chairman of Alibaba Group, in Hangzhou

Strategic sourcing

Given the extensive publicity that usually accompanies a China market breakthrough for an Irish exporter, it is easy to overlook the fact that the Ireland – China trading relationship is two-way.

Long known for manufacturing cheap products, over the past few years rising labour and real estate costs, have forced Chinese manufacturers to move up the value stream. Concurrently, an unrelenting series of tainted product scandals have generated a multitude of exacting government decreed benchmark quality standards. The ensuing marked improvement in product and food safety standards represents an economic transformation that is already rekindling China’s export competitiveness. By its very nature, we foresee Irish businesses increasingly focusing on China for strategic sourcing options, which over the course of the year will gradually eat into Ireland’s trade surplus with China.

Accurate Group – China Market Makers

Ireland is a long way away and Chinese people like to see a presence here. The first advice that we give to Irish companies coming to China is that they need to commit to the market. They are not going to come in and make a quick buck.

– Julie Sinnamon, CEO, Enterprise Ireland” Source: Irish Times, 15th December, 2014

The only way to succeed in China is to be aware and prepared – and to be on the ground. With this vital rule of thumb in mind, in 2014 Accurate Group, which is based in Hangzhou and Shanghai, was directly involved in developing China trade worth up to €4 million for Ireland’s food and drink sectors.

– By Niall O’Reilly

Niall O’Reilly is the Managing Director of Accurate Group, China Market Makers, and Director for China, Irish Exporters Association, has been based in Hangzhou since 2007.

Sourcehttp://www.accuratelimited.com/blog.view.php?id=l1UtkHyIg1Y= 

Niall O’Reilly

Managing Director, Accurate Group – Ireland China Market Makers

Website: For more ‘Accurate China Insights’ click  http://www.accuratelimited.com/blog.php

Twitter: @AccurateChina – China: The Ireland Angle

China Office : Accurate Group China, Hangzhou – O: +86 571 8709 1253

Ireland Office: Accurate Group, Dublin – O: +353-1 271-1830

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State Visit to the People’s Republic of China – President Michael D. Higgins of Ireland

The State Visit, the highest form of engagement, in diplomatic protocol, that one country can have with another, will be the 3rd overseas State Visit since the President of Ireland took office and is recognition of the warm relationship Ireland enjoys with the People’s Republic of China encompassing all aspects of the exchanges between Ireland and China in culture, education, trade and investment.

The President’s programme in China, which officially commences in Beijing on Sunday 7th December, will include State ceremonies, cultural, educational and business events, such as an Irish Cultural Performance in Beijing‘s Forbidden City Concert Hall, and Enterprise Ireland / IDA Ireland business and Embassy of Ireland Irish community receptions. A state dinner in his honour, hosted by the President Xi Jinping and Madame Ping will be held on Tuesday 19th December. On Thursday, 11th December, the Consul General of Ireland in Shanghai will host a reception for the Irish community, while on Friday 12th the President will visit the third city involved in the State Visit, Hangzhou. In Hangzhou, President Higgins will visit Alibaba, and have a meeting with Mr. Jack Ma its founder and Executive Chairman. Staying overnight in Hangzhou – perhaps at the West Lake State Guest House where Nixon and Mao signed the historic “3 Joint Communiques” in 1972– on Saturday he will visit the Lingyin Temple in Hangzhou, which dates back to 328AD, take a Bronze Dragon Boat trip on Hangzhou’s spectacular West Lake, followed by a visit to a Longjing Tea Plantation before returning to Shanghai by bullet train. President Higgins will return to Ireland on Monday, 15th of December.

The importance of high-level diplomatic visits between the Ireland and China, which are helping to widen and deepen bilateral relations, cannot be overstated, and in our opinion a substantial trade spin-off can be expected to follow this major State Visit. Real potential exists for further enhancing the relationship between Ireland and China in Ireland’s niche industry sectors such as energy and green technologies, food and agriculture, financial services and aviation leasing, pharmaceuticals, medical devices, educational services, and tourism.

During his momentous visit to China President Higgins can be expected to emphasise the importance of trade links, and, more importantly from a Chinese perspective, growing mutual trust, while encouraging even greater economic co-operation between China and Ireland.

State Visit to China President of Ireland Michael D Higgins to meet President of China Xi Jinping

While there is considerable optimism in Ireland’s agri-food sector about Ireland having the potential to resolve problems of food security in China, New Zealand’s and, most recently, Australia’s free trade agreements with China serve to highlight the daunting task Ireland dairy and meat producers face gaining traction in such an intensely competitive market. As Mark Twain observed “To get the right word in the right place is a rare achievement”. However, one point President Higgins is very good at is talking up Ireland and he will have separate official meetings at the Great Hall of the People with President Xi Jinping, Prime Minister, Mr Li Keqiang and the Chairman of the National People’s Congress, Mr Zhang Dejiang, the three most powerful people in China.

Why is China so interested in Ireland?

As noted in an earlier Accurate China Insight http://www.accuratelimited.com/blog.view.php?id=2Mic2J2sUyQ=

“both countries enjoy an excellent political, business and cultural relationship, much to the envy of Ireland’s European partners”.

Firstly, China’s political leaders are clearly impressed by Ireland’s ongoing economic renewal brought about by the country’s strict adherence to fulfilling its commitments as an international Monetary Fund (IMF) country programme country, as recognized by the IMF, the European Central Bank (ECB), and the European Commission. From an export dependency perspective, China has a vested interest in the European Union’s rapid return to growth and in this context Ireland is a shining beacon of light.

Secondly, such positive awareness dovetails with the ‘Irish Model’ that has proved so successful in the development of China’s own special economic zones areas. In Chinese political circles, whether we realise it or not, Ireland has made an important contribution to China’s economic development. In 1980, a visit by former Chinese President Jiang Zemin, then Senior Vice Minister of State Imports and Exports Administration, to the ‘Shannon Free Zone’ (the world’s first free trade zone) paved the way for Chinese companies to import goods into a special economic zone, manufacture or reconfigure the goods, and then export them without intervention of the customs authorities. The resulting export-led growth has delivered an economy that has experienced the fastest expansion in GDP per capita of any major economy in human history. In recent times after years of economic expansion China’s economic growth rate has being losing speed, in part due to a decline in demand for its exports from key markets. To stall the slowdown new economic prototypes are being assessed such as the fledgling Shanghai Free-Trade Zone that bears characteristics that can be traced back to the ‘Shannon-Free Zone’. The February 2012 visit to the Shannon Development Zone by President Xi Jinping, then Vice President of China, was no mere happenstance.

Thirdly, Ireland currently enjoys a unique position in Europe between two of China’s traditional rivals, the USA and the UK, which for China represents a “soft power” relationship it is determined to make the most of over the long-term.

Fourthly, in addition that Ireland is the only English speaking country in the Euro zone enjoying tariff and border free trade across the European Union makes for a useful entry point into the European market of 500 millions. However, from this perspective Ireland has yet to notch up any significant Chinese investments, a point that President Higgins will no doubt be highlighting during his meetings with China’s political elites.

During the second week of December Ireland will take centre stage in China like never before.

Source: http://www.accuratelimited.com/blog.view.php?id=uInfgiAwMQU=

Niall O’Reilly

Managing Director, Accurate Group – Ireland China Market Makers

Website: For more ‘Accurate China Insights’ click  http://www.accuratelimited.com/blog.php

Twitter: @AccurateChina – China: The Ireland Angle

China Office : Accurate Group China, Hangzhou – O: +86 571 8709 1253

Ireland Office: Accurate Group, Dublin – O: +353-1 271-1830

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Cringe-worthy awkward moments (gaffes) when Irish politicians and media expose China ignorance

1. Language skills

Leo Varadkar - ChinaActually, Ireland in Chinese has three syllables… Ai Er Lan… Just like home indeed Mr. Minister for Tourism and Transport!!

2. Geography

Awkward Moments

Awkward moment here for Irish Independent writer Donal Lynch…. The photo is of Taipei’s 101 Tower in Taiwan, not mainland China… so much for thorough desk research, checking sources and all that.

3. Exaggeration

Ireland's Food and Drink Agency, Bord Bia, promotes Tanaiste (Deputy Prime Minister) Eamon Gilmore to Prime Minister (总理) in China food promotion

Ireland’s Food and Drink Agency, Bord Bia, promotes Tanaiste (Deputy Prime Minister) Eamon Gilmore to Prime Minister (总理) in  St. Patrick’s Day China food promotion

4. Impressions

You Irish velly gud at software

– The remarkable comment in 2011 by leader of Micheál Martin, leader of Fianna Fail, Ireland’s catch all centrist populist party.

5. Pretending

Chinese Premier Zhu Rongji’s visit to Ireland in September 2001:

“I really wish the prime minister Ahern Bertie would stop saying ‘tanks tanks tanks’. He’s overdoing this Tiananmen protest stuff.”

Source: Torture of a Chinese PM http://www.independent.ie/opinion/analysis/torture-of-a-chinese-pm-26250637.html

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Accurate China Insight: CIC’s ‘China Ireland Technology Growth Capital Fund’ play underlines Ireland’s strategic value

Two major sovereign wealth funds the National Pensions Reserve Fund (NPRF) and the China Investment Corporation (CIC) have joined forces to invest US$$50 million each in the recently created China Ireland Technology Growth Capital Fund [For more information on this announcement read http://www.irishtimes.com/business/sectors/financial-services/pensions-reserve-fund-to-unveil-investment-of-70m-by-chinese-group-1.1658163].

This is a huge vote of confidence in Ireland’s future economic vitality. Yet, what’s even more significant is the way this has played out since 2011.

China‘s state media made great play out of the leaders of Greece, Portugal, Spain and Italy going ‘cap in hand’ to Beijing in search of China Investment Corporation sovereign funds to mitigate their economic woes.

Accurate China Insight - CIC- China Ireland Technology Growth Capital Fund - play underlines Irelands strategic valueNot so when it comes to Ireland. State media coverage of Ireland has always been characterised by the highlighting of particular qualities or attributes which the Chinese Government views as the basis for the close relationship between Ireland and China, the importance of which is highlighted by the growing number of senior Chinese leaders/officials visiting our shores on a regular basis.

Behind the subtly of carefully crafted official speeches and commentaries regarding Ireland there has clearly been a sense of purpose in China’s strategic approach. For example, when senior Chinese officials say “China attaches great importance to its relationship with Ireland” what they mean is ‘English speaking’, ‘between Europe/USA’, ‘same time zone as UK’, ‘potentially resource rich (food, energy)’, ‘friendly’. In other words Ireland is clearly of strategic value to China.

In a new world order potentially led by China our Mediterranean friends don’t offer such strategic attributes.

Following the signing of joint government sponsored NTMA / CIC MOU back in early 2012, an initiative involving CIC was always going to bear fruition. The questions to be answered were when/where?

Given that CIC only makes strategic investments which in China’s vested interests, the statement that Irish and Chinese companies in “core technology sectors such as internet, software, semiconductors, and clean technology will be targeted by the fund’s managers, as well as a number of other technology areas where the Fund’s strategy is uniquely positioned. These include agriculture, food, medical, and financial services” clearly offers the chance of a “win-win” solution for all.

Accurate China Insight-  China Investment Corporation CIC-China Ireland Technology Growth Capital Fund play underlines Irelands strategic value

Now that there is investment money on the table: China is now set to become a major market for Irish companies in terms of joint collaboration and market access; while Ireland’s technological prowess and investment climate, backed by CIC’s vote of confidence, place us at the top table in terms of attracting Chinese outbound investment into Europe.

Coming hot on the heels of the announcement of the established of a new Irish-domiciled exchange-traded fund (ETF) offering European investors direct access to China’s blue-chip stocks for the first time, the approaching Year of the Horse looks set to be a thrilling year in Ireland China relations.

Niall O’Reilly

Managing Director, Accurate Group Ireland China Market Makers (Route to Market, Export, Import, Partner Due Diligence)

Website: http://www.accuratelimited.com

Twitter: @AccurateChina

China Office : Accurate Group China, Hangzhou – O: +86 571 8709 1253

Ireland Office: Accurate Ireland, Dublin – O: +353-1271-1830

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Our Great Little Nation (sic): Ten things you can do in Ireland that almost certainly won’t land you in jail

In response to Tuesday’s (30th July) Irish Times article by Fintan O’Toole in which he notes:

A country that can’t protect its citizens from the effects of wrongdoing is not a Republic

Source: http://www.irishtimes.com/news/crime-and-law/ten-things-you-can-do-in-ireland-that-almost-certainly-won-t-land-you-in-jail-1.1478549?page=1

Doubtless a political elite that has sapped the moral fibre of our nation and is so divorced from the reality of life under the economic hardship that has befallen so many of our citizens will angrily deny the following:

“Our “Great Little Nation” is increasingly being run in an authoritarian, secretive and anti-democratic style which has nothing to do with the sense of pride and moral virtue that propelled the vision of our founding fathers to build an independent Irish state established on sound democratic principles…

… The reality is what it is.. There are a lot of smart people in this country who feel completely alienated by the Establishment because they dare to think ‘out of the box’.. People like the writer of this Irish Times article. We read, we rant, we argue, and our elite chuckle away. The Establishment has never felt threatened and they don’t feel threatened now. Because the system they have created is so watertight there is little possibility of systemic change to the way our country operates.”

Ireland's political elite

“The stone’s in the midst of all “

‘Easter 1916’, by William Butler Yeats

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Exports showcase offers ‘rare’ opportunity for Irish products in growing China market

Niall O’Reilly, who organised the Hangzhou leg of the Irish Exporters’ Association trip to China which we reported on last month, says an offer by Wahaha chief Zong Qinghou to attend the company’s annual internal distributor exhibition marks a “very rare China market opportunity not to be missed”.

China’s richest man, with almost €9 billion in personal assets, Zong is trying to diversify his company, the country’s biggest domestic beverage group, by opening 18 self-run shopping malls, 35 franchising malls and a further 300 franchising stores by the end of 2015.

Wahaha has a nationwide distribution network of about 10,000 distributors, over 100,000 wholesaler and three million sales terminals. It employs more than 60,000 people, has 150 subsidiary companies and 60 manufacturing bases scattered throughout China.

At the meeting with the Irish Exporters Association, Zong, invited Irish producers of milk powder, UHT milk, goat milk powder, tea, fruit drink concentrates, sweets, Irish whiskies and spirits, and, curiously, Irish tweed and knitwear products to attend the Wahaha European Premium Commodities Exhibition in Hangzhou from July 25th to July 28th.

While noting the short time to the exhibition, Zong thought the exhibition would be a great opportunity to showcase Irish products to Wahaha’s key distributors.

Exports showcase offers ‘rare’ opportunity for Irish products in growing China market - Zong Qing Hou Chairman Hangzhou Wahaha and Niall O'Reilly Managing Director Accurate Group China Business Advisers

China’s wealthiest man, Zong Qing Hou Chairman Hangzhou Wahaha – China’s most admired company – welcomes Niall O’Reilly Managing Director Accurate Group China Business Advisers to Wahaha’s HQ in Hangzhou

“This is a man whose primary interest in working with foreign companies is to bring into China products which Chinese companies are poor at making. If he likes a product, his nod is as good as a wink to Wahaha’s distribution network,” said O’Reilly, head of the Accurate Group.

China is set to become Ireland’s fourth largest export market in the next decade, and the retail sector offers huge market potential for Irish foodbeverage and clothing companies. Over 300 million people in China now have disposable income to purchase on non-essential goods that was not possible even back in the 1990s, while Chinese government policies aim to double household incomes by 2020.

Sources / Copyright: Clifford Coonan / Irish Times http://www.irishtimes.com/business/economy/exports-showcase-offers-rare-opportunity-in-growing-market-1.1456741

http://www.accuratelimited.com/blog.view.php?id=i84nUxS5ONA=

Niall O’Reilly

Managing Director, Accurate Group – Ireland China Product & Business Development (ExportImport, Partner Due Diligence) Consultancy

Website: http://www.accuratelimited.com

Twitter: @AccurateChina

China Office : Niall O’ReillyAccurate China 1-3 Ying Hui Xing Zhou, Jiang Nan Shui Xiang Lian Sheng Road, Yuhang District, Hangzhou. China 310023| O: +86 571 8709 1253

Ireland Office: Niall O’ReillyAccurate Ireland 93 Upper Georges Street, Dun Laoghaire, Dublin, Ireland| O: +353-1271-1830

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Irish Exporters Association trade mission to ‘paradise’ meets China’s richest man

Irish Times, Asia Briefing, 2nd July, 2013

“And so to the prosperous east of China, to the cities of Suzhou and Hangzhou, where the Irish Exporters Association (IEA) organised a trade mission that included a meeting with mainland China’s richest man: Zong Qinghou.

There is a Chinese proverb: “In heaven there is paradise, on earth Suzhou and Hangzhou.”

As well as being pleasant cities, they are important business locations, and they fit right in with the current thinking on how to exploit the China market best. That involves focusing on second-tier cities that have large populations.

Hangzhou has 9.5 million inhabitants, while Suzhou has 12 million, which is why the IEA’s Asia Trade Forum chose them for its business visit.

“This is all about taking a phased approach to Asia, and getting to know Asia better,” said Hugh Kelly, the chairman of the IEA’s Asia Trade Forum.

“We wanted to get people out here and get them over the hump of making the trip. We wanted to try to get people to experience China and better inform them if it’s the market for them.”

The IEA’s director for China, Niall O’Reilly, is a long-time Hangzhou resident and he orchestrated the coup of arranging a meeting with Mr Zong.

He is estimated to have a personal wealth of 82 billion yuan (€10.23 billion) and is the chairman of the privately held Wahaha group, China’s top homegrown beverage firm, producing bottled water, tea and other drinks, which had pre-tax profits of €1.23 billion last year.

A chain-smoking member of China’s annual parliament, the National People’s Congress, Mr Zong is famously frugal, spending just $20 (€15) a day on himself. He is the third-richest man in Asia and 23rd richest in the world.

His knowledge of Ireland was extremely limited, something the delegates were keen to remedy, but he seemed receptive to the possibilities offered by Ireland – the visit was supposed to be 20 minutes’ long but went on for one and a half hours.

Wahaha has about 60 factories in 29 provinces, and it also makes baby formula and children’s clothes.

The Wahaha group has considerable geographical spread in China and Mr Zong said that he can get a new product into two million shops inside of a week.

“Mr Zong was very interested in what Ireland had to offer,” said Mr Kelly.

Zong Qinghou, Chairman of Hangzhou Wahaha

Zong Qinghou, Chairman of Hangzhou Wahaha

During the visit, Mr Zong invited the IEA to attend a Wahaha event in three weeks’ time, which will be an opportunity to pitch products to the 20 shopping malls owned by Wahaha.

Among the companies taking part on the delegation was Áine Handmade Chocolates. Owner and chocolatier Anne Rudden was impressed by the scale of operations at Wahaha.

“I was here on this trip to see if there were opportunities, so I got more than I thought out of it. Meeting with Mr Zong was the best. And choosing Hangzhou seems to have been a good idea,” said Ms Rudden.

Mr Zong also tried Darling Cocktails’ ready-to-serve cocktail.

Mr Kelly said that while companies were happy to go to the US six times a year, companies found the trip to Asia more daunting and had less of a presence as a result.“Everyone is going home with a great impression. There are a lot of layers here and we’ve achieved more than we expected on this trip. You have to come here to see the scale on which they plan,” said Mr Kelly, the chief executive of Associated Marketing.

Unlike other Government trade missions, the IEA trade delegation had the benefit of not having to meet political obligations.

Mr Kelly said the choice of Hangzhou and Suzhou as the main venues for the trip was part of a plan to match Irish companies with their counterparts in smaller cities.

“Many Irish companies are small and medium-sized companies and are very small in China. If you pair off with someone too big you will fade,” said Mr Kelly.

The delegation also visited the Hangzhou Economic Development Authority and was received by the local government.

Source / Copyright: Clifford Coonan / Irish Times http://www.irishtimes.com/business/economy/world/asia-briefing-irish-trade-mission-to-paradise-meets-richest-man-1.1449280 . Accurate Group China Business Blog  http://www.accuratelimited.com/blog.view.php?id=VDJvvLcn5vQ=

Niall O’Reilly

Managing Director, Accurate Group – Ireland China Product & Business Development (ExportImport, Partner Due Diligence) Consultancy

Website: http://www.accuratelimited.com

Twitter: @AccurateChina

China Office : Niall O’ReillyAccurate China 1-3 Ying Hui Xing Zhou, Jiang Nan Shui Xiang Lian Sheng Road, Yu Hang District, Hangzhou. China 310023| O: +86 571 8709 1253

Ireland Office: Niall O’ReillyAccurate Ireland 93 Upper Georges Street, Dun Laoghaire, Dublin, Ireland| O: +353-1271-1830

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Righting a wrong: No evidence that Kennedy-Skipton was a Japanese collaborator during the occupation of Hong Kong

It seems the impact of Derry-born Irishman George Stacey Kennedy-Skipton’s (c 1898-1982) working for the Japanese is exaggerated at best, considering his focus was on agricultural activity aimed at dealing with a rapidly escalating food crisis. Everything written so far points to him being the victim of a grudge on the part of Franklin Gimson (the Colonial Secretary of Hong Kong who was Kennedy-Skipton’s direct report), who had powerful enough friends to besmirch Kennedy-Skipton’s  reputation. Loyalty, or the lack of, regarding Colonial Office servants is the key issue here, not collaboration with the Japanese. Kennedy-Skipton (K-S) was the only Colonial Office cadet to avoid capture and who stayed in Japanese occupied Hong Kong

I would also add that many Irish Free State passport holders (including my uncle) working for the Colonial Office, trading houses, etc, joined the Hong Kong Volunteer Defence Corps (HKVDC) and defending the territory with distinction. Kennedy-Skipton’s neutrality didn’t go down at all well with volunteers who put their life on the line defending Hong Kong, while up on The Peak he was flying the Irish flag declaring his neutrality to the Japanese. As to why he was flying the flag, and who he was protecting in his house was unknown and at the time deemed irrelevant.

A reference in the POW diary written by my uncle “Barney”  John Bernard Patrick Byrne “Diary of War: Private John Bernard Patrick Byrne “Barney” (HKVDC #4732) – Irish Prisoner of the Japanese in Shamshuipo and Sendai (1941-1945)” (Source: https://nialljoreilly.wordpress.com/2012/12/07/niall-and-barney/) throws some light on the depth of feeling suffering POWs would have felt towards K-S and other ‘third nationals’, or neutrals.

Righting a wrong No real evidence that Kennedy-Skipton was a Japanese collaborator during the occupation of Hong Kong - The Blarney stone

The Blarney Stone: According to legend whoever kisses the Blarney Stone is gifted with eloquence and persuasiveness.

In it Barney refers to a trial of French traitors as giving “us Hong Kong men some ideas about a similar purge when we get back there. And we won’t have any shortage of candidate for the rope provided the local loyal Chinese haven’t forestalled us!”

A number of posts in Second World War related Hong Kong groups’ online recount the experiences of families who sheltered in his neutral house. None refer to him informing the Japanese. Far from it, he saved them from the Japanese.

What is curious are the secret files he claim to have discovered which hadn’t been destroyed. There is no evidence he informed the Japanese about the contents of these file. In fact, he went to extraordinary efforts to inform the British Government of their existence.

However, the receipt by the British government of the message relating such information would have been preceded by the Franklin Gimson / British Army Aid Group (BAAG) grapevine noting that one of their own had gone over to the Japs, and was therefore branded a collaborator…. which was pretty much the same label everyone who claimed neutrality and worked for the Japanese occupation government was tarnished with.

In conclusion, in my there is no evidence that K-S was a collaborator in any shape or form. He just chose to declare his Irish neutrality, at a time when he was working for the colonial government and most of the Irish, and his fellow colonial cadets living in Hong Kong were fighting for Hong Kong and subsequently imprisoned. As such he was effectively disowned.

I recall a conversation I had in the late 1990s with an eminent Hong Kong LEGCO legislator on the very sensitive subject of collaborators. Naturally given the depth of rage, anyone, irrespective of race and background, who had by hook or by crook avoided the hardship of the Japanese occupation, profited from the turmoil, or who had recently returned to Hong Kong from Macau to be part of and benefit from the Post War reconstruction effort would have been branded a traitor. In order to maintain law and order, and perhaps keep the degree of treachery under wraps, the colonial government would have taken a conscious decision to classify the wartime records of many collaborators.

And while mentioning by hook or by crook there is a question mark regarding whether or not Kennedy-Skipton actually carried an Irish Free State passport which would have been the basis for his Irish neutrality. He may not have held an Irish Free State passport.  At the time of the Irish Free State people living and born in the six counties of Northern Ireland, of which Derry was part, would not have Irish Citizenship. Probably he just exploited an opportunity to outfox the Japanese.

To the Japanese it didn’t matter if the Irish were from north or south Ireland, they still treated them as neutrals.  Kennedy-Skipton (K-S) January 1943 escape to China may well have coincided with the Japanese finally grasping the intricacies Ireland’s political boundaries.

Additional reading: http://gwulo.com/node/12900?page=1

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Accurate China Insight: China business scam – Beware of unusually large Purchase Orders

A growing number of small to medium sized companies both in the Republic of Ireland and in Northern Ireland have recently contacted Accurate Group to seek our assistance in verifying the existence of China-based companies (many of which are operating out of the Shenzhen area of Guangdong Province) with generic names such as Brightway, etc., that are sending unanticipated, yet conceivable (and therefore tempting), large purchase orders, with attractive upfront payment terms of up to 50%. Following minimal correspondence, the Irish company contact (usually the Managing Director) is invited to travel to China to sign a contract. However, once in China visiting buyer’s office (which appears to be legitimate, but is merely a respectable cover for a criminal activity), and the initial deposit is due, the seller is asked to pay upfront half the bank fees for the transfer, or a commission in cash. Upon return to Ireland the seller will find no initial payment has being transferred and the party they have been communicating with has disappeared as has any cash they have been paid.

Accurate China Insight - China business scam -Beware of unusually large Purchase Orders

The Irish company usually contacts Accurate after a number of email exchanges with the Chinese company, which points to a level of sophistication on the part of the Chinese entity. They have done their homework and know industry specific terminology across a range of sectors including renewables, electrical filaments, and animal feed.

DON’T BE FOOLED BY SUCH SCAMS

  • If the size of the P.O. from a company in China you’ve never heard of reads too good to be true, that’s because it is!
  • There are easier ways to win in China. If you have never dealt with a Chinese company and just want to be sure they are bo na fide then you should contact a long-term hands-on Ireland China business consultancy with offices and Chinese speaking staff on the ground in China.  As veterans of doing business in China, an Irish China business consultancy, knowing the wily tricks played by Chinese companies, can be of invaluable assistance when verifying the true credentials of a Chinese buyer, supplier or business partner

… and, assuming, the Chinese prospective (product buyer, supplier, partner) company is genuine, an Irish China business consultancy can help you to negotiate and make the sale!

  • Never travel to Company to meet a company without verifying the integrity of the product buyer, supplier, or partner company that has invited you to visit them. In any case such a company will need to supply you with a Letter of Invitation (chopped / stamped with the official Chinese company name – any company doing business in Mainland China should be properly legally established [such as a company, a rep office, a branch, etc.] for tax and invoice issuing purpose), which you need to provide to your local Chinese Embassy when applying for a China entry visa. 
  • Even if you have received a contract in English, assume there is always a contract in Chinese. Ask for a copy and have if verified to ensure that contracts are exact copies of each other.

Incidentally it’s not just small and medium companies who fall prey to sophisticated China scams. No company doing business in China is immune: Look at what happened to Caterpillar who recently had to write off most of a China deal after uncovering “deliberate, multi-year, coordinated accounting” fraud (Source:  http://www.reuters.com/article/2013/01/19/us-caterpillar-siwei-idUSBRE90H1C520130119)?

Do note that these kinds of difficulties are experienced by very few Irish companies doing business in China. Follow your gut instinct, use commonsense and take the same precautions as you would doing business anywhere else.

Accurate China Insight - China business scam -Beware of unusually large Purchase Orders 2

Source: http://accuratelimited.com/blog.view.php?id=t8/dwXC9GMw=

Niall O’Reilly

Managing Director, Accurate GroupIreland China Product & Business Development (Export, Source, Import, Partner Due Diligence) Consultants doing business in China for over 24 years

China Office : 1-3 Ying Hui Xing Zhou, Jiang Nan Shui Xiang Lian Sheng Road, Yu Hang District, Hangzhou. China 310023| O: +86 571 8709 1253

Ireland Office: 93 Upper Georges Street, Dun Laoghaire, Dublin, Ireland| O: +353-1271-1830

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