Written by Bob Meyer, Editor of BarterNews

China's Evolving Barter Industry

Submitted by Frank Sang of Shanghai Barter Exchange

The first official barter company (CPTNC), supported by eight ministries of China's Central Government, was established in 1997. The purpose of forming CPTNC was to solve the problem of "triangle debt" among state-owned enterprises, a long time burden of the government.

However, because these enterprises have been operating in the "planned economy" for many years, it's been difficult for them to accept and use barter...even though it would begin to solve their debt problem.

Since then, the barter industry has been moving from one-to-one trading to the modern trade exchange concept, which provides multi-lateral trading among its members.

Formed in the late 1990s, Dalian Barter Exchange Center was the first to use the modern trade exchange concept for small and mid-sized businesses, like others around the globe. This method of trading became popular in China with the local governments, because of the additional tax revenue generated through the barter business.

A new era has quickly emerged for the young and growing barter industry since the first Chinese Barter Conference was held in 2001. There are now more than ten barter companies in China and still growing...including Dalian Northern Barter Exchange, Qingdao Barter Exchange Center and China International Advertising Barter Exchange Network, to name just a few.

In order to regulate and promote the development of this industry, at the call of Shanghai Barter Exchange (SBE), most barter companies agreed to form the China Barter Exchange Alliance (hoping) to avoid the prior mistakes made by some international barter companies.

As the barter business develops, larger barter companies like SBE are also focusing on doing business internationally. For example, in real estate SBE already has trade partners in the U.S. and Australia, and plans to establish further long term business relationships in other countries.

Barter education and modern concepts are taken as priority subjects in barter companies' business promotion programs. They have also taught the importance of maintaining serious control ever their trade credits, keeping them as equal value to the national currency (RMB), with each trade credit backed by one RMB in the form of product or service. Members are prohibited from participating in transactions involving trade credits being exchanged for currency.

With the great potentials of this emerging market, barter companies are expecting long term growth in business and profits. We welcome international barter companies to join, play, and benefit from the new trade exchange industry in China.

Did you know that your classified ad gets one full year exposure in the
Tuesday Report archives?!

For information on The Barter Marketplace click here.

The Barter Marketplace archives click here.

In The Real World Barter Is Part Of The Equation For The Big Players

Basketball super-star Kobe Bryant has completed his protracted negotiations with Nike. The deal included guaranteed dollars, but more important to Bryant, creative clout and equity in Nike.

And on another front came news on the pending Universal Studios sale. The deal includes director Steven Spielberg's lucrative, extraordinary consultant arrangement. He receives (in perpetuity) 2% of the gross generated from tickets to concession sales at Universal's two parks in Orlando, plus Universal Studios Japan!

Extraordinary Revealing Report For Business Owners - Click here.

The following message was used to promote one's trade exchange. The exchange owner
sent this flyer/message out to every member....

Trade Is The Competitive Edge—Spread The Word!

We have begun co-publishing a monthly newsletter entitled The Competitive Edge that is a generic overview of barter in today's competitive marketplace.

In addition to providing the newsletter to you (our members) we have also begun a prospecting campaign using the publication. Each month we mail The Competitive Edge to businesses that would be an asset to our exchange, and follow up with phone calls.

Many trade exchanges have successfully used this newsletter, published by BarterNews magazine, to educate potential clients about trade and therefore attract new members. And we hope to have the same results here!

You can help us spread the word by providing some counter space or other conspicuous area to display The Competitive Edge to your clients. Waiting rooms, bookshelves, reception areas...wherever your customers have a chance to pick up a copy of the newsletter, they also will have a chance to find out more about bartering in today's economy.

Each month's issues offers new insights into the advantages of using trade and how it can improve a company's cash position. Every business owner will find the articles interesting and educational.

To learn more about The Competitive Edge newsletter and how it can help build your trade exchange, click here.

Get New Money-Making Ideas And Valuable Contacts!

You can obtain useful, informative ideas and contacts in every available back-issue of BarterNews.

A Look At Global & U.S. Media Through 2007

According to PricewaterhouseCoopers' annual Global Entertainment & Media Outlook, advertiser spending will continue to shift to broadcast from other media. Next-generation technologies will create new businesses to offset aging platforms, and broadband internet access will stimulate consumer spending.

Spending by global consumers and end-users will increase to nearly $1 trillion in 2007, from $781 billion in 2002. Advertising mostly will receive periodic boosts from major media events such as the Olympics and U.S. elections in 2004 and 2006, and the World Cup.

The United States, which is a $479 billion media and entertainment market, represents 44% of global spending.

Extraordinary Revealing Report For Business Owners - Click here.

The following message was used to promote one's trade exchange. The exchange owner sent this flyer/message out to every member....

Trade Is The Competitive Edge—Spread the Word!

We have begun co-publishing a monthly newsletter entitled The Competitive Edge that is a generic overview of barter in today's competitive marketplace.

In addition to providing the newsletter to you (our members) we have also begun a prospecting campaign using the publication. Each month we mail The Competitive Edge to businesses that would be an asset to our exchange, and follow up with phone calls.

Many trade exchanges have successfully used this newsletter, published by BarterNews magazine, to educate potential clients about trade and therefore attract new members. And we hope to have the same results here!

You can help us spread the word by providing some counter space or other conspicuous area to display The Competitive Edge to your clients. Waiting rooms, bookshelves, reception areas...wherever your customers have a chance to pick up a copy of the newsletter, they also will have a chance to find out more about bartering in today's economy.

Each month's issues offers new insights into the advantages of using trade and how it can improve a company's cash position. Every business owner will find the articles interesting and educational.

To learn more about The Competitive Edge newsletter and how it can help build your trade exchange, click here.

Every barter company in the world is listed on our web site, click through to our Global List of Barter Companies.

Get New Money-Making Ideas, and Valuable Contacts!

You can obtain these ideas and contacts in every every available back-issue of BarterNews.

• ITEX filed its third quarter report with the SEC, reducing its profits to$15,000 from $102,000 as previously reported in May. The reason for thechange from the stated preliminary report revolved around litigation expenses and proxy cost reimbursements. The company also announced that its recently opened corporate-owned office in Las Vegas will be closed.
  
• One of Southern California's first trade exchanges, TradeAmericanCard, is staging a summer Barter Expo. It will be held at The Grove of Anaheim, an upscale venue next to Edison Field, home of last year's World Series Champions the Anaheim Angels. The Barter Expo is scheduled for Tuesday, July 15, 3:00-9:00pm. For more information call (714) 532-1610.
  
• Have you signed up to receive a summary via e-mail of the Tuesday Report every week? If not, go to the top of this issue (right hand corner) and sign up!
  
• First quarter report on the U.S. economic situation isn't that pretty...business spending in that quarter fell the lowest since the third quarter of 1998, as capital spending dropped at an annualized pace of 4.8%. Despite the plunge in interest rates during the past year, companies are not borrowing money to expand their businesses. There's still an overload of capacity in many sectors, due to overexpansion in the past decade when there was a glut of money to be had.
  
• Money Mailer, the second-largest U.S. cooperative direct-mail marketing company, has been sold to a private equity firm based in Atlanta. Founded in 1979, Money Mailer was a big trader through various Southern California trade exchanges in its formative days. Today the company mails coupons to more than 16 million homes across the country, licensing more than 250 franchises in 34 states.
  
• 20-year old Brazilian playboy model Susana Alves made an unusual barter deal when she traded the use of her image on a billboard ad in exchange for a $2 million insurance policy on her legs!
  
• Xraymedia has announced additional media orders valued in excess of $11 million. The story on this traditional advertising agency, with leading edge live media trading technology, has been covered in previous Tuesday Reports.

• If you've missed any of our weekly Tuesday Reports the past three years we have an archive of issues for you at the bottom of this week's letter...check it out!

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