NOL shifts China HQ from costly Shanghai to cheaper Chongqing

SINGAPORE's Neptune Orient Lines (NOL) plans to move its China transactional headquarters from Shanghai to Chongqing over course of next year, a move involving the relocation of 200 jobs and one expected to cut costs.

"Shanghai has established itself as one of the world's premier cities and the cost of doing business has increased and is expected to rise further," said Eng Aik Meng, the president of NOL's container arm, APL. "Now is the right time to relocate to a location that provides a more effective cost base."

NOL said Chongqing office space is cheaper; it has a business-friendly government and tax policies. It is highly accessible with well-established transport links to major regional and global centres and a wide, well-educated talent pool, said a company statement.

Expected to be operational by the end of next year, the Regional Administration Centre in Shanghai will incrementally move itself to Chongqing over the course of 2010.

"Management will work closely with impacted staff to provide them with detailed information about how the decision will affect their circumstances and the compensation and support services that will be provided," a statement from NOL said.

The new Chongqing centre will be responsible for providing support processes for customs compliance, bill of lading production and invoicing for APL, the group's container shipping business. It will also support APL's backroom operations across Greater China, Japan, Korea and the Americas.

NOL said Chongqing had lower office leasing costs, a business-friendly local government and taxation policies, a highly accessible location with well-established transportation links to major commercial centres both regionally and globally, and a wide, well-educated talent pool.

China threatens countervailing action as trade disputes heat up with US

THE Ministry of Commerce ministry promised to take measures to protect Chinese industry after the US slapped anti-dumping duties on US$2.6 billion on Chinese steel pipe imports, reports London's Financial Times.

The threat comes less than a week before US President Barack Obama visits Beijing for the first time and at a time when trade conflicts between the two countries are growing, despite the regular high-level meeting last week that many hoped would reduce tensions.

"China resolutely opposes such protectionist practices, and will take steps to protect the interests of our domestic industries," said Commerce Ministry spokesman Yao Jian on the state website. "The US should give objective consideration to the fact that the fundamental problem of the US industries in question is the fall of demand brought about by the financial crisis."

The US Commerce Department has levied a 99 per cent tariff on Chinese steel pipes, after the US, the EU and Mexico sought a World Trade Organisation probe into Beijing's exports on materials an alleged attempt to manipulate prices. Earlier the US president signed off on a China-only "safeguard" tariff of 35 per cent tariffs on Chinese tyres.

Chinese have opened investigations into US-poultry imports on grounds of safety and into cars and auto parts because of recent government aid received by the US industry has virtually turned it into a State Owned Enterprise.

"We hope the US will set aside its biases and act as quickly as possible to recognise China as a market economy," said the ministry statement.

Source: www.schednet.com