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© Pedro Angelini

Nestle (NESN.VX) is planning to take over Chinese food company Hsu Fu Chi International (HSFU.SI) for over USD 2 billion. Industry analysts say that buying off the Chinese food company will boost Nestle's business that is witnessing sluggish sales at home.
The deal is still in the nascent stage with several other companies also showing interest in buying over the Chinese food company. Nestle believes that if the deal clicks and the Chinese authorities give their approval, it will make a great difference to its business during this slack period. This is because Hsu Fu Chi offers 6% exposure to the China candy market as a manufacturer of several snacks like peanut candies, pop jellies and sachima rice snacks. Moreover, this Chinese food company has good cash flow.

© JMRosenfeld

Guanxi is central to the Chinese way of doing business. The term 'guanxi' covers a lot of topics, but mainly it refers to the personal dynamics of relations between people doing business. You will be expected to drink a lot of baiju (60-70% alcohol), refusing it is considered impolite (bad for guanxi!). Best trick is to add lot of water while no one is looking; you can also throw it over your shoulder, but if someone sees you doing this, your guanxi will hit a new low!

Also, the meetings will be on a round table, and it might get difficult for you to spot the decision maker! Mostly, the person facing the door and the one who gets the head of the fish is the boss. Your guanxi will be better if you can eat using chopsticks.

© Maya83

The possibility of a Taiwan trade pact with the Philippines is being explored, in a move to reconcile a recent extradition row. Manila had sent 14 Taiwanese fraud suspects to China over protests from Taipei, but this did not stop a Philippine presidential envoy from visiting Taiwan for a second meeting with the foreign minister. The two sides discussed improved judicial cooperation along with the feasibility of an economic partnership.

Their goal is to avoid extradition incidents in the future, which can adversely impact migrant workers from the Philippines in Taiwan. Manila sacked its immigration chief after the incident, and in response Taiwan said it would relax requirements on Filipinos seeking work in Taiwan. A move by Manila to extradite a Taiwan fugitive suspected of lottery fraud back to the island also helped to ease tensions between the two sides.