Mr. Ma: I can definitely start on key points like exports. Yeah, because I am quite familiar with the export sector. I have two companies in my coverage space that deal with exports - one is Global Sources. This is a B2B Web site that facilitates Chinese exports and the rest-of-the-world buyers. I have another company based in Shenzhen called Winner Medical, they produce medical disposable products. There is so much to talk about shifting, or when the export market is weak and shifting to domestic demand. I think the results have been mixed because it takes quite some time to adjust from an export to domestic market, and that it will be very difficult to achieve for several reasons. One is that most Chinese exporters focus on the U.S. and the developed world, and typically they sell in large quantities without a brand name. It will be either OEM or will be someone else's name. There is no marketing in the domestic market. Also due to tax incentives, they have a better margin. Starting in 2007, export margins got hit because of appreciation of Chinese currency, and the government did away with or reduced some of the tax incentives or VAT tax rebates. So when they shift to a domestic market, they encounter a few difficulties. First is the marketing - these companies typically have no marketing in China. So that will be very difficult for them to compete in the domestic market. Number two is the logistics, as exporters get used to shipping products by large quantities. However, domestic orders are typically smaller. Depending on the industry sector you are in, the domestic target can be even more price sensitive, even sometimes at the expense of quality.
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