1. China: Economic Overview

29. Earnings in Manufacturing Earnings in Manufacturing

31. Costs of Production

32. Retailers & Wholesalers For years, China has been known as the country that you can produce a lot of products for a low price, but in some places that’s changing. Production is cheaper in rural areas. Still, China is the world leader in production of retail and wholesale products. Especially because many car companies base their production in China, we feel that production in China would be the most economical choice for maximum profitability. Often times, companies coming to China hire middlemen, who help with the company’s transition to new culture, laws, and environment.

33. Internet Use in China

34. Internet Use in China

36. Media in China Output of China's media industry expanded 17.7% to 5 80.8 billion in 2010 and is expected to be 6 88.24 billion in 2011. Ads revenue growth from the Internet, film and broadcast segment markets was up 54.9%, 47.4% and 34% respectively from the year before. Newspapers:- China had 1,937 newspapers that printed 43.91 billion copies in 2009;- Newspaper ad revenues were ･ 9 1.1 billion in 2009;- Revenue from real estate, retail and auto ads in newspapers (top three advertisers) was up 1.6%, 21.9% and 35.7% year on year respectively in 1H 2010. Periodicals:- China had 9,851 periodicals that printed 3.15 billion copies valued at ･ 2 0.24 billion in 2009;- Periodical ads revenue was down 2.1% to ･ 3 .04 billion in 2009, accounting for less than 4% of total revenue of the publications industry;- Over 2/3 of the periodicals such as scientific findings or industry reports were not commercially available in 2009.

37. Media in China Cont’d Radio & TV:- China's radio revenue was up 12.8% to ･ 8 .15 billion in 2009;- Radio revenue accounted for 3.52% of total ads revenue in 2009, down from 3.6% in the year before;- Increased number of private cars is an impetus to radio ads- Total radio and TV revenues were expected to exceed ･ 2 00 billion in 2009;- The number of cable TV users was up 6.9% to 175 million in 2009;- The number of digital TV users was up 39.7% to 63.22 million in 2009;- 7.13 million households paid ･ 1 .82 billion for premium digital TV programs in 2009, up 58.6% and 27.8% respectively from the year before. Movies:- China's box offices grossed ･ 1 0 billion in 2010, up 64% from the year before;- Ticket revenue from domestic movies accounted for 56% of total grossing in 2010;- Close to 300 million tickets were sold in 2010;- Over 1,500 screens were launched in 2010, taking the total number to over 6,000. TV dramas:- 402 TV dramas with 12,910 episodes were given licenses to be aired in 2009, compared to 502 dramas and 14,498 episodes respectively in the year before;- 60% of the episodes were aired between prime time (7:20pm- 10:20pm);- 20% of the episodes were never aired.