Posts Tagged ‘chinas’

Tag:China’s economic,slowest pace,2005,speculation
From:http://www.appareltextile-china.com/

  China’s economy grew at the slowest pace since 2005 in the second quarter, prompting the yuan’s biggest drop in seven weeks on speculation the government will slow its advance to protect exporters.
  Gross domestic product rose 10.1 percent from a year earlier, down from 10.6 percent in the first quarter, as exports weakened and the government curbed lending. Consumer prices rose 7.1 percent in June, slowing from 7.7 percent in May, the statistics bureau said Thursday in Beijing.
  The yuan fell 0.2 percent against the dollar, paring a 7 percent advance this year that made it Asia’s best performer. Some Chinese officials are pressing for slower currency appreciation to protect jobs as cooling global demand threatens to trigger a slump in shipments from the world’s fastest-growing major economy.
  “A slower pace of appreciation would mean breathing room for the export sector,” said Jing Ulrich, JPMorgan’s chairwoman of China equities.
  The yuan traded at 6.8270 against the dollar as of 3:55 pm in Shanghai, the biggest drop since May 27.
  GDP growth cooled for the fourth straight quarter. The median estimate of 18 economists surveyed by Bloomberg News was for a 10.3 percent expansion. The US economy grew 2.5 percent in the first quarter.
  ‘Orderly Slowdown’
  China’s growth is still the fastest of the world’s 20 biggest economies and is helping to sustain the global expansion this year as a housing slump and credit-market turmoil threaten to send the US into a recession.
  “This is an orderly slowdown, not a dramatic one,” said Kevin Lai, a Hong Kong-based economist with Daiwa Institute of Research.
  The trade surplus for the second quarter narrowed 12 percent from a year earlier to US$58.14 billion as import costs climbed and US demand faltered.
  Export prospects have deteriorated, with US Federal Reserve Chairman Ben S. Bernanke saying this week that the US faces “significant downside risks to the outlook for growth.”
  Rising prices, constraints on agricultural output, lagging rural incomes and global financial market turmoil are problems for China’s economy, the statistics bureau said in a statement.
  The Ministry of Commerce has urged China’s cabinet to rein in currency gains and raise some export rebates, a ministry official said July 14, speaking on condition of anonymity.
  “We’ll Be Dead”
  “We’ll all be dead if the government doesn’t increase tax rebates and slow the appreciation,” Tang Zhenya, a salesman at Changshu Shengtian Knitting & Clothing Co. in Jiangsu province said Wednesday.
  Most textile companies were unprofitable in the first five months of the year, Du Yuzhou, President of China Chamber of Commerce for Import and Export of Textiles said at an industry conference in Shanghai.
  As many as 45 million workers earn their livings in export-oriented sectors, according to Jonathan Anderson, a Hong Kong-based economist with UBS AG. He cites government surveys.
  Inflation has eased from February’s 12-year high of 8.7 percent on smaller gains in food prices. It remains above the central bank’s 4.8 percent annual target and rising commodity costs may keep prices elevated.
  Producer-Price Inflation
  Producer prices climbed 8.8 percent in June from a year earlier, the statistics bureau said, after rising 8.2 percent in May. That is the fastest pace since Bloomberg data began in 1999.
  “The high producer-prices number points to the potential risk of inflation in the coming months,” said Huang Yiping, chief Asia economist at Citigroup Inc. in Hong Kong. “Inflation is still way above the official target so a tight policy will continue.”
  Besides using the currency to cool inflation, China has imposed lending quotas and ordered banks to set aside a record 17.5 percent of deposits as reserves to soak up cash flooding the economy from trade, foreign direct investment and investors betting on gains by the yuan. The central bank hasn’t raised interest rates this year to avoid attracting capital inflows.
  Standard Chartered Bank Plc today cut its forecast for four interest-rate increases this year to none and said policy makers’ next move will be to cut rates in 2009.

Only two decades ago, China was a poor agricultural country; now it becomes the third-largest economy in the world, with a GDP of more than $2, 108 billion in 2006. Experts forecast that by 2020, China will be the world’s largest economy.

1, China’s pharmaceutical market

The has shown impressive growth in recent years, in tandem with the country’s rapid economic expansion. In the past twenty years, China’s pharmaceutical market has an averaging between 18 – 20% growth, significantly higher than US and European growth during that period (7 – 9%). The total pharmaceutical market is expected to grow to $27.7 billion by the year 2005, to become the world’s largest pharmaceutical market by 2020.

2, China’s pharmaceutical industry

China has a large domestic pharmaceutical industry, providing 80% of China’s pharmaceutical consumption. In 1995, approximately 3,000 domestic state pharmaceutical enterprises produced a total output of $12 billion, of which more than $3 billion was exported, according to the State Pharmaceutical Administration of China (SPAC). The Chinese pharmaceutical industry has increased in value with an annual average growth rate of 16.72% over the last few decades.

However, the industry is still small-scale, with a scattered geographical layout, duplicated production processes, and outdated manufacturing technology and management structure. The Chinese pharmaceutical industry also has a lower market concentration and weak international trading competitiveness, coupled with a lack of patented pharmaceuticals developed in-house.

As China joins the World Trade Organization (WTO), it needs to integrate more completely into the global economy. The international competition will place an intense pressure on the Chinese pharmaceutical industry and further open the door to a lucrative market for non-Chinese companies, especially for pharmaceutical producers and manufacturers. Accession to the WTO binds China by fundamental WTO principles, such as improved transparency and the strengthening of commercial legal procedures. China’s WTO commitments include the tightening of rules on intellectual property, tariff concessions, and market access of non-Chinese service suppliers engaging in the distribution of pharmaceuticals. All such moves create additional business opportunities for non-Chinese pharmaceutical companies in China, and in turn, place an intense pressure on the Chinese pharmaceutical industry.

So, over the past few years, Chinese pharmaceutical firms have been merging to improve economies of scale, concentrate resources, and increase competitiveness through vertical integration. Many large, state-owned pharmaceutical companies are also transforming their ownership structures into joint ventures or public companies to become more efficient. According to the SPAC, China aims to become the world’s leading producer of pharmaceuticals and medical devices and instruments in the first half of this century.

3, China’s pharmaceutical foreign trade

In recent years, many Chinese pharmaceutical enterprises take part in the international pharmaceutical market. They not only export patent medicine but also assist their global partners in shortening the cycle and lowering the cost of drug discovery and development by providing cost-effective and efficient outsourcing solutions, for example, pharmaceutical intermediate. Some Chinese pharmaceutical companies even appear in the Nasdaq market successfully, such as WuXi PharmaTech (WX.NYSE) and Simcere Pharmaceutical Group (SCR) etc.

Electronic commerce is introduced to the pharmaceutical enterprises. is one of the most famous B2B website in China. It provides various trade leads including pharmaceutical information among China factory, manufacturers, suppliers, and global buyers.

The pharmaceutical trade shows supply the platform to the leading manufacturers, suppliers and buyers both at home and abroad. Many pharmaceutical companies attend the China International Medical Equipment Fair (CMEF), China International Oral Care Technology & Equipment Exhibition and Shanghai International Medical Equipment and Furnishment Exhibition ?IMEFE? and so on. CMEF is Asia Pacific’s biggest exhibition serving the entire value chain for the medical devices market. China International Oral Care Technology & Equipment Exhibition is organized by the China Oral Care Industry Association, Exhibition Center of China Light Industry. The Show covers oral care products, raw and auxiliary materials, packaging materials, manufacturing and packaging equipment, oral medical equipment and materials.

4, China’s pharmaceutical market trend

First, the price of pharmaceutical products will continue to decrease steadily. In June 2004, the price of 400 antibiotics in 24 categories, including penicillin, was reduced by, on average, 35%. The total value affected by this reduction was US$42 million. The central government has been playing a significant role in pharmaceutical price readjustment. According to industry experts, future price reductions will originate from hospital pharmaceutical retail shops.

Secondly, the rural pharmaceutical market will shift significantly. According to Information Times, 80% of counterfeit products are consumed in rural areas. This provides a huge opportunity for pharmaceutical companies to develop the market in rural areas.

Thirdly, China will become the largest pharmaceutical R&D base in the world. In recent years, more and more western pharmaceutical enterprises, such as GSK, Roche, Novo Nordisk, etc, have come to China and set up R&D centers. Twenty world leading pharmaceutical companies have established joint venture manufactories in China. Some have even set up sole propriety manufactories. Currently, amongst the largest 500 overseas enterprises, 14 of them are pharmaceutical companies.

The fourth trend is that foreign enterprises will begin an OTC price war in future years. Based on expert analysis, foreign enterprises have been closely monitoring the expanding OTC market. In September 2003, German Mike Company began its OTC project in China.

While China’s northeastern parts such as Beijing and Shandong may represent the historical heart of the People’s Republic, it’s in the west where we find a unique cultural diversity that is so attractive to travelers.

Nowhere else in the country might one uncover the splendor of China’s varied minority population than ’south of the clouds,’ Yunnan. Situated on the southwestern corner of four other provinces, Yunnan also shares borders with three countries (not quite including Thailand and India), its proximity resulting in the highest concentration of ethnic groups in all of China.

However, with the northern Naxi city of Lijiang having become China’s hottest holiday destination for tour groups, nearby Dali a laidback retreat for younger backpackers, and Zhongdian a jumping off point for Tibet, south Yunnan remains a relatively unspoiled region.

From the concrete jungle of the provincial capital city of Kunming into the rain forests of Xishuangbanna, this writer bypassed the more popular route towards Laos and Vietnam for the less-explored areas around the Burma perimeter. My timing was perfect, as I arrived in the village of Menghun just before its Sunday market.

A quiet community accented with stilted wooden homes and a hilltop monastery overlooking the surrounding rice fields, the day’s drizzly weather served to enhance the village’s reticence. But through the gray I caught glimpses of color that revealed thselves to be the region’s multiple ethnic minorities.By mid-morning, Menghun’s relatively small marketplace, abounding with freshly slaughtered pig heads, brilliant fruits and vegetables, plugs of tobacco and a rainbowof textiles, became a veritable kaleidoscope of culture unlike any I have every witnessed. I was first met by the silky glory of Xishuangbanna’s majority population, the Dai, a 2000 year-old culture that fuses Hinayana Buddhism with elements of Thai. The Dai dress attractively in shimmering attire, but it is the younger Dai girls in their formfitting pastel sarongs who catch one’s eye before teasingly runing away like nymphs.

Further illuminating the otherwise dark day were the Akha people, known as the Hani. Like a resplendent yet elusive jungle bird, the Akha appear from the deep lush hills only on market day, whence they adorn themselves in heavy layers of black brilliantly highlighted with intricately embroidered patterns. Descendants of the nomadic Qiang from Tibet, each Hani subgroup wear a different colored headdress to signify their tribe, not unlike the plumage of a proud bird, and lavishly accessorize in silver-studded bracelets and leggings, patchwork satchels and antiqued coins stretching out their earlobes. Tumpline baskets around their heads and teeth stained red with betel nut are commonplace.

Especially weary of outsiders, they timidly skirted all my advancements, however friendly persistence coupled with a sincere interest in their lifestyle soon granted me access to a tight knit Akha clan. They spoke very little Mandarin, and of course no English, so we relied simply on gestures and smiles in an attempt to learn about each other.

By noon the market had cleared along with the rain, the streets now lined with vivid knots of indigenous folk awaiting tractors to take them back to their respective outlying villages.

My continued journey through Xishuangbanna Autonomous Prefecture would take me deeper into the surrounding tropical jungles, including a 50km trek from Bulongshan to Damenglong. But those are stories for another time. For now I will reminisce over that small yet colorful town of Menghun, for nowhere else have I ever witnessed such a definitive representation of China’s beautifully proud ethnic minorities.

Tom Carter, a freelance writer and photographer from San Francisco, has lived in China the past two and a half years. He is currently backpacking through all 32 Chinese provinces.

Transportation

1) From Kunming’s main bus station on Beijing Lu, express leeper busses to Jinghong, capital of Xinshuangbanna, daily at 6:30pm (150yuan, 15 hours).

2) Shuttles from Jinghong to Menghun leave the No.2 Bus Station every 20 minutes between 7am and 6pm (15yuan, 2 hours).

Accommodation

In Mengun there are several small boardinghouses, luguan, located on the main street near the bus stop (20 yuan each). A backpacker’s favorite is Baita Fandian (White Tower Hotel, 10 yua for a bed) on the outskirts of town and overlooking a lily pond teaming with fish and frogs. Directions are complicated so it’s best to ask locals to point you there

Regional cuisine

Rice is the staple diet of the Dai people, who were the first in the history of the world to cultivate rice as a food. Sticky rice baked in fragrant bamboo is a specialty. Xishuangbanna locals also enjoy nibbling on grilled pigtail from street vendors, and perpetually chewing on betel nut (binglang) mixed with lime, which gives off a light narcotic effect while staining the mouth red.

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Insight

Trade exchange between different cultures and countries has long yielded rich rewards for those who recognize the potential.

After all, as far back as the 1st century BC, merchants and caravans followed the Silk Road – the overland trade route from northern China to the Western World – and brought precious silks, tea and other resources from China to the rest of the world. Not only did linking different countries and cultures prove profitable, but new and greater products and ideas flowed between the countries.

The Silk Road of the 21st century is technology driven. This trade exchange, built on fiber-optic cable, sprang from the Telecommunications Act of 1996. Now, it is the R&D departments of companies from the United States and other countries that benefit from the resources and opportunity found in China.

Today’s China, the fastest growing country in the world, offers the:

• Biggest engineering talent pool

• Biggest emerging market

• World’s number one manufacturing industry

Strengthening ties, country-to-country, people-to-people, has shown time and time again that remarkable achievements, that otherwise would have been impossible, can come to fruition.

Long Circle urges you to explore the opportunities that exist in China today, especially if your business focus is embedded systems technologies for software and hardware.

With our global reach, we could see the importance of China, and we have grown significantly in the past five years in this critical market. Today, we have $5 billion in revenues and 12,000 employees.

GE 2005 Annual Report/

Letter to Stakeholders

Biggest Engineering Resource Pool

The last few years have convinced Fortune 100 companies and start-ups alike that China, home of the fastest growing economy in the world, is key to achieving their strategic plans, as well as the business objectives of their R&D departments. GE, Microsoft, Motorola, Intel, Nokia, Oracle, and SAP are just a few of the multinational companies with R&D operations in China, and for some important business drivers:

o Lower costs

o Lower wages

o Expanded productivity

o Reduced time-to-market

o Strengthened R&D embedded technology engineering resources

Wages are lower offshore, there’s no question about it, but the experience the workforce has must be in product research and development, not IT. With China’s deep pool of engineering talent, especially R&D embedded technology engineers, companies can expand and strengthen their R&D resources.

For example, the Microsoft Research (MSR) Asia lab has engineers working on a wide range of advanced technologies – from spoken-language technologies such as automatic speech recognition to face detection and tracking, face modeling and recognition, cartoon generation, image and video retrieval for MSN, and Xbox camera-based game interfaces. According to Forbes, Microsoft’s investment in all China-related R&D activities is approximately $100 million US dollars annually. In addition, with currently more than 800 employees in China, Microsoft is predicted to grow that number substantially over the next three to five years.

Biggest engineering talent pool; most engineering graduates each year

Engineering Graduates China India United States

Source: Duke University*352,000 112,000 137,000

Source: Unknown ** 600,000 350,000 70,000

*Source: A study released in December, 2005 by Duke University (and also widely quoted in the media, including The Christian Science Monitor) citing the number of engineering graduates in each country yearly.

* Note: Statistics widely quoted, from Fortune Magazine to Senator Ted Kennedy’s speeches. However according to the Wall Street Journal online, these figures are misleading and no one can track down a concrete and reliable original source.

Biggest Emerging Market

How could any organization that wants to be successful in the global arena ignore China today?

China is the world’s most populous country – 1,313,973,713 (2006 est.) – and organizations like the Finnish mobile telecommunications giant Nokia expect China to be a key growth driver for their global operations. Nokia provides equipment, solutions and services for network operators and corporations’ mobile phones and network equipment.

According to Infoworld’s online Web site:

“China has 400 million mobile users and its 3G (third generation) networks are not yet switched on, providing a future avenue for further growth. “ According to a study done by Norson (Hong Kong) Information Technology , “. . . after three years of 3G availability, more than 84 million Chinese will use 3G services.”

Consequently, construction is underway on Nokia’s new and expanded China headquarters, scheduled to open in 2007, that will host over 1500 of Nokia’s R&D, sales and marketing operations, pre-production, logistics, sourcing and manufacturing operations.

During China’s President Hu Jintao’s recent visit to the United States, he attended a dinner at the home of Microsoft’s Bill Gates and called for broadening the relationship between the United States and China.

“Today, many cargo ships are very busy crossing the Pacific Ocean, laden with the rich fruit of our strong trade ties and friendship between our two peoples,” Hu said. “I am sure that with the further deepening of China’s reform and opening up, we are going to see an even broader prospect for the economic cooperation and trade between China and Washington State and China and the United States as a whole.” Source: Reuters

According to the US-China Business Council:

• China’s economy grew 10.2 % in the first quarter of 2006.

• The government’s new focus on balanced growth and its attempt to shift from an investment- and export-driven economy to a consumption-driven one will mean more policies to promote consumption.

• GDP (purchasing power parity): $8.158 trillion (2005 est.)

• GDP – per capita: purchasing power parity – $6,200 (2005 est.)

• GDP – real growth rate: 9.2% (official data) (2005 est.)

• GDP – composition by sector:

Agriculture: 14.4%

Industry and construction: 53.1%

Services: 32.5% (2005 est.) Source: [www.uschina.org]

World’s #1 Manufacturing Industry

China is “the world’s factory” and produces $60 billion worth of consumer electronic goods a year. The “Made in China” label is found everywhere.

When China became a member of the World Trade Organization (WTO), it agreed to abide by WTO standards and regulations, along with the rest of the WTO countries. And this opened up one of the world’s largest economies to the rest of the world. Forward-thinking organizations did not hesitate to capitalize on the unprecedented opportunity.

For example, GE has long regarded China as an essential piece in the company’s strategic plan. According to Jeff Immelt., “We have been there for 15 – 20 years, so we know how to do business. We have been on the ground. We have 12,000 employees. And I think at the end of the day, China is trending towards being a great global competitor and following the rules. And that is important to us and it’s a way that we can be successful as well.”

Today, companies doing business in China find tax incentives, excellent civic infrastructure, government support, a political environment that encourages foreign business, rapid economic growth, a deep pool of engineering talent and college graduates, and improving legal, banking and financial systems.

China Strategy: Choose the Right Road to China

There are basically three paths an organization’s R&D department can follow to successfully gain entry into China. Take time to consider the best route for your company, especially if your focus is in R&D embedded technology.

? Single, Independent Project

Beginning by outsourcing a single, independent project is an excellent way to start on the path to China. Typically, these projects involve software and hardware development, testing, maintenance, or product enhancement. This transaction type outsourcing is turn-key, straightforward, and has a quick ramp up time. An R&D department can:

o Capture an opportunity within a short time frame.

o Boost bandwidth to meet short-term demand.

o Outsource clearly defined short-term projects.

Companies going this route find cost savings through transaction-type outsourcing and capitalize on short-term cost savings.

? Partner Program

A long term, relationship-based service program is another excellent way to leverage China’s technology resources. A dedicated team within the China outsourcing vendor’s R&D department can be created, trained, hosted, and managed exclusively for your embedded systems R&D technology projects. Clients take advantage of lower wages, while benefiting from a team educated on the Client’s corporate values and culture, providing a true business level alignment. A China R&D department can:

o Offload non-core functions.

o Fill in needed skills.

o Increase engineering efficiency.

o Increase return on R&D.

? Offshore R&D Center

Many companies find they benefit most from a one-of-a-kind incubation center that is an extension of their R&D department back home. Building a R&D facility from the beginning and introducing best practices provides the optimal solution to meet your company’s strategic goals.

Your company takes advantage of China’s low cost workforce, manufacturing capacity, and emerging markets and there are no intermediaries or third party costs.

A China R&D Center can:

• Provide confidence and security to handle sensitive data and intellectual property inhouse offshore.

• Train talent according to your company’s unique standards and values.

• Increase talent retention by providing attractive culture and a sense of belonging.

• Share services with other functions of the company.

• Engage in long term innovation-driven research that does not usually generate immediate profits.

• Access the China labor market directly.

Turn to China

Throughout history, new products, new ideas, and new opportunities have come about by crossing borders. The global exchange of trade, expertise, and capabilities means exciting ideas and innovations which benefit everyone.

China today is a country with unlimited opportunity. However, personal connections and relationships are essential to any successful business in China. Would your company like to expand into China, but is unsure about potential roadblocks such as regulations, recruiting, and setup? The right vendor can smooth your way.

In addition to entry into China, a potential vendor’s technology expertise must not be overlooked. For example, does the potential vendor focus on embedded technology? Do they have experience with manufacturers, original equipment manufacturers (OEMs), original design manufacturers (ODMs), independent software vendors (ISVs), system integrators (SI), and value added service providers (VASPs) who rely on embedded hardware and software technologies?

Intellectual property is a concern everywhere, but especially in a new environment. What are a potential vendor’s procedures for protecting your intellectual property?

Remember, when searching for the best route to leverage China’s vast resources and opportunities, it pays to make certain you have the best vendor as your guide.

A journey of a thousand miles

Begins with a single step.

Lao-tzu (604 BC – 531 BC)

Chinese philosopher

About Long Circle

Long Circle provides outsourced engineering services to companies whose products and services rely on embedded software and hardware technology. Long Circle and the Long Circle China Center of Excellence enables U.S. companies to reduce costs, increase engineering bandwidth, and broaden market reach by providing low-risk, strategic access to China’s engineering talent, manufacturing industry, and emerging markets. To learn more about Long Circle, visit http://www.longcircle.com.

Why the hell are still behind the rest of the world when it comes to fast internet, and fast trains. ## China is spending vast sums to create some of the world’s fastest commuter trains. CNN’s Emily Chang reports.

China reveals extensive details of its investments in US companies and funds. CNN’s Eunice Yoon reports.

If you are on a tour to China and decide to stop at Yunnan province, then you are guaranteed a wonderful time with Chinese minority groups. Yunnan is a beautiful province which is proud of its ethnic minorities and culture; this is reflected in the lifestyle of the locals who inhabit the community. Considered as one of the beautiful places to go in China, the province of Yunnan is a place that celebrates life. It can be divided into different cities namely Kunming, Dali, Lijiang, Zhongdian and Deqin. Each of these cities has various sightseeing and highlights which attracts tourists all year round.

Kunming is known as the city of eternal spring which is usually the best city to travel to in China in spring. This is because of its mild climate which has in turn boosted the tourism and natural beauty of the city. With over four hundred types of flowers and orchids in the various gardens, it is no wonder horticulturists and nature lovers’ flock to this part of China to spend some time. Kunming is also known to be the center of the Yunnan minority culture where over 25 different ethnic groups live together. The major ethnic minorities have their various cultures, languages, and customs and celebrate different festivals. Major highlights to see in Kunming include the stone forest, a long acre of karsts limestone formations which were formed into cliffs, peaks, caves and arches; the birds and flowers market where different species of birds and flowers are sold; Dian Chi Lake, the Yunnan nationalities museum and the World Horticultural Expo garden.

Dali is another city in Yunnan well known for preserved relics for historical interests. The beautiful sceneries, different traditions, the locals and the unique environment are what makes Dali a stop over for tourists on their Yunnan province tour. For example the Old town of Dali is a place that was set up in the Ming Dynasty where you will find well preserved traditional styled houses of the Bai people. These houses were built with unique designs featuring grey tilted roofs, stone walls, windows and doors carved in dragon patterns. The streams fed by the run offs from the Cangshan Mountains and the idyllic courtyards and peaceful streets which were well known in the ancient times have now become a place of interest for visitors. Major highlights in Dali include the Erhai Lake, an ear like shaped Lake, the Three Pagodas, the Butterfly Fountain and Dali Museum to enrich your knowledge about the history and culture of Yunnan.

Lijiang is an old town resting in northwestern Yunnan. It is located on a plateau which rises on an elevation of 8,530 feet above sea level. Lijiang Old town is Yunnan’s mecca for most Chinese tour groups and this is because of the magnificent landscape which it has. The Old town is a world heritage relic site as listed by UNESCO. It has a number of attractions for tourists to visit, many of which includes The Jade Dragon Snow Mountain: a snow capped mountain which looks like a jade dragon lying in the clouds when seen from Lijiang, the tiger leaping gorge believed to be the deepest gorge in the world which attracts rafters and adventure tourists. Other interesting things to do in Lijiang are the use of cable cars to the top of Cangshan Mountain to witness a panoramic view overlooking Erhai Lake and the traditional musical concerts.

Zhongdian and Deqin should be the final destination on your Yunnan province tour. It is one of the three counties that form the Diqen Tibetan Autonomous Territory. With some of its history based on the concept of Shambhala, a mystical city in Tibetan Buddhism; it was formerly called Zhongdian County and was later renamed to Shangri-la after the fictional land in the book ‘Lost Horizon’ in 2001. Shangri-la is considered to be a mythical distant paradise on earth characterized with great beauty and peacefulness; this is why many travelers come to this place to spend some peaceful time. This town has also been used by hikers and mountaineers as a gateway to Tibet. Some of the major highlights in this town include the Emerald Pagoda Lake (Bita hai Lake), the Meili Snow mountain (God Mountain) and the Ganden Sumtseling Gompa monastery. This monastery is a 300 year old complex which has around 600 monks. The small town is centered with multi story temples filled with statues and colorful paintings of Tibetan lamas, guardians and mandalas. The landscape of Zhongdian is not enough to describe in words, it gives a kind of feeling which is difficult to describe; this is why most people recommend a visit to Zhongdian and its sacred temples.

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