Monday, 28 June 2010

"White guy in a tie"

This story in The Atlantic is equal parts humour, entrepreneurship and scandal. That's why it has garnered 202 comments!

Here's a precis: Chinese company pays Caucasian male handsomely to pretend to be an executive of a company to make a speech, meet some officials and shake some hands. Simple.

The reason for these shenanigans is that it's still 'flash' to be a (white) foreigner in China, especially in the provinces. So, if your company flies in your top executive or expert from America it's a big deal. And it goes a long way to cementing a business deal or contract.

The twist in this story is that these foreigners might well be American (or Canadian...even I can't tell the difference sometimes so I doubt the Chinese will ;) ), but they haven't boarded any planes, aren't  businessmen and the company might not even exist!

"...so I became a fake businessman in China, an often lucrative gig for underworked expatriates here. One friend, an American who works in film, was paid to represent a Canadian company and give a speech espousing a low-carbon future. Another was flown to Shanghai to act as a seasonal-gifts buyer. Recruiting fake businessmen is one way to create the image—particularly, the image of connection—that Chinese companies crave. My Chinese-language tutor, at first aghast about how much we were getting paid, put it this way: 'Having foreigners in nice suits gives the company face.'


After a brief introduction, “Director” Ernie delivered his speech before the hundred or so people in attendance. He boasted about the company’s long list of international clients and emphasized how happy we were to be working on such an important project. When the speech was over, confetti blasted over the stage, fireworks popped above the dusty field beside us, and Ernie posed for a photo with the mayor."

Sunday, 24 January 2010

Google - A New Approach to China

Earlier this month Google reported on its blog that it had been hacked. Analysis of the security breach shocked Google executives who decided to spill the beans in this blog posting.

In summary, Google says that it and "at least 20 other large companies...including the Internet, finance, technology, media and chemical sectors..." were hacked. Google had intellectual property stolen as a result of the hacking incident and informed the other companies and U.S. law enforcement of its findings. More concerning was Google's discovery that the orchestrated attack was focused on accessing Gmail accounts in the U.S., China and Europe and the account owners are known Chinese human rights activists who have also suffered at the hands of "phishing scams or malware..."

Although Google recognizes the benefits China has brought its people in recent years it says it's blowing the whistle on the incident "not just because of the security and human rights implications of what we have unearthed, but also because this information goes to the heart of a much bigger global debate about freedom of speech."

When Google agreed to censor its search engine results as a condition of operating in China in 2006 it had its fingers crossed behind its back. Now, it says as a result of the attacks "we have decided we are no longer willing to continue censoring our results on Google.cn, and so over the next few weeks we will be discussing with the Chinese government the basis on which we could operate an unfiltered search engine within the law, if at all. We recognize that this may well mean having to shut down Google.cn, and potentially our offices in China."

Cynics of Google's moves say that the reason for the potential withdrawal from China is the fact the search giant only has the #2 spot in China with 36% of the market compared to Baidu's 58% and hasn't been able to dominate as it has elsewhere.

China is the #1 car market

Business Week reported that not only has China's exports jumped 17.7% this past December, for the year China exported 41.2 trillion worth of goods which beats out Germany as the largest exported! Critics say that China's success is due to the yuan' artificially low exchange rate which is amplified further by the US dollar's decline.

Adding salt to the wounds, China also announced that it became the largest car market in the world as 2009 sales rose 46% to 13.6 million vehicles including trucks. Analysts say that China will remain #1 in 2010 since the US only had 10.9 million vehicle sales.

Timelapse of Typhoon Nangka over Hong Kong

Amazing timelaspse from last June 2009.

Sunday, 20 September 2009

Chinese adoption gone wrong

I picked up my LA Times subscription this week and found a shocking story that really soured a topic that I've had mixed feelings about in the past: adoption of Chinese babies.

Yang Libing and his wife, Cao Zhimei, with their son. Their daughter was taken away in 2005. "Our children were exported abroad like they were factory products," said Yang, a migrant worker from Hunan province. He has since learned that their daughter is in the United States.

This LA Times story must be adopting parents' nightmare and one that doesn't seem possible outside of some crime fiction novel. Even though I try to cast some doubt on negative stories about China since not all the stories read on the internet are true I know there are plenty of other stories that never make it out of the country. I believe this is one of those true stories that has only just surfaced and will send shock waves across the world and hopefully where it counts - the adoption agency networks.

Something has to be fixed! What does this say about the Chinese system, the officials who hold power and the agencies that govern the adoption process? Nothing in the remedy will ever be enough for the parents that lost a child or the parents that gained one.

This is one of the saddest stories I've read and I think the last paragraphs of the article capture the reality of what has been created in the name of greed. I wonder if the author of White Swan will update her book with a new chapter.

"In Philadelphia, Wendy Mailman, who adopted in 2005 from the orphanage in Zhenyuan that took in confiscated babies, now questions everything she was told about the girl who orphanage officials said was born in September and abandoned in January.

"Why would a mother who didn't want a baby girl be so heartless as to wait until the dead of winter to abandon her?" she said. She wonders what she would do if she discovered that her daughter was one of the stolen babies. She knows she could never return the Americanized 6-year-old, who is obsessed with "SpongeBob" and hates the Chinese culture classes her mother enrolled her in. But she said, "I would certainly want to tell the birth family that your daughter is alive and happy and maybe send a picture."

"It would be up to my daughter later if she wanted to build a relationship," she said. For many birth families, that would be enough.

"We'd never make her come back, because a girl raised in the West wouldn't want to live in a poor village like this," said Yang Shuiying's mother-in-law, Yang Jinxiu.

"But we'd like to know where she is. We'd like to see a picture. And we'd like her to know that we miss her and that we didn't throw her away."

Wednesday, 11 February 2009

Exemplary example of Chinese human rights

It's a little known fact that China took in 20,000 Jews escaping persecution from the Nazis in the 1930s! Who says the Chinese have a human rights issue?

Today, NPR interviewed some of these survivors who fled to China about a neighborhood called Tilanqiao or "Little Vienna" in Shanghai. This quaint bit of Europe was transplanted to Shanghai, but is the lesser known Eurozone compared to the well ventured French Concession district I walked through during my stay last year.

In the Hongkou district near the Northern Bund sits Ohel Moishe Synagogue which is recognized as the heart of this historic area. It's one of two synagogues, but there used to be six here at the height of the area's boom. Now, beside the place of worship all is not peaceful since the area has been under threat from the relentless cycle of development.

A fight to get Tilanqiao recognized goes back to April 27, 2006 when about 120 former Jewish refugees and their families returned to Shanghai from all over the world for a '2006 Shanghai Reunion.' The aim was to get the United Nations to list Tilanqiao as a world heritage site.

I read that in 2003 Professor Ruan Yishan of Tongji University, an ardent preservationist and dean of the National Cultural and Historical City Research Institute, helped restrict the urban development plans for the North Bund by challenging the Shanghai Urban Planning Bureau. He and his supporters succeeded in geting the city to declare "12 Key Preserved Historical Zones," including Tilanqiao.

Today, however, the White Horse Cafe that was founded by Jewish immigrants in 1939 is finally succumbing to the push for modernization. A new road is being built and the cafe must go. Without the road the future traffic in central Shanghai will be unbearable said an official. It seems that urban historical areas aren't in vogue in China. Although sections of Tilanqiao will remain, we don't know for how long? I hope I get to return and walk those streets myself before it turns into Spaghetti Junction!

Friday, 30 January 2009

Jet Li in Davos for the World Economic Summit!

Amazing to see Jet Li representing his causes at Davos, Switzerland, rubbing shoulders with the rich and powerful leaders of the world.

Thursday, 22 January 2009

Chandni Chowk to China...crazy Bollywood Kung Fu!

This is showing at my local independent cinema...From the hustle-bustle of Chandni Chowk to the hutongs of Beijing, the electric energy of Shanghai and sheer breathtaking Chinese landscapes, "Chandni Chowk to China" chronicles the lunatic adventures of a hapless simpleton cook from Delhi. As he goes to seek his destiny, he finds himself thrown into a crazy world of megalomaniac villains, femme fatales, crazy inventors, Chinese mysticism and outlandish kung-fu assassins!

Wednesday, 21 January 2009

China still growing...

Despite the downturn in the world economy a newswire I read today made me raise an eyebrow. Market research firm, iSuppli, said that China has defied the expected 5 percent global decline in mobile handset shipments.

Instead, China’s domestic wireless phone market is projected to increase by 7 percent in 2009! That means the Chinese are expected to continue to buy phones even when their jobs might be threatened this year as global consumption (of Chinese-made goods) falls. That's some 90 million new subscribers in 2009?!

Handout How could this be? First, I heard on NPR that only one third of China's production is for export, so it's not as exposed to the global freefall as we in the West might think. The rest of production is to "feed" the Chinese market of one billion people. Second, China’s three mobile operators are offering discounts and the government is even lending a hand (after all it's still Communist China) as it ponies up subsidies to keep the consumers spending!

But it's not all a bed of roses for China's mobile industry according to The Register who know their CDMA from their W-CDMA :)

Saturday, 20 December 2008

China has the biggest casino industry in the world

Did you know that Macau, the old Portuguese colony off the coast of Hong Kong, has become wealthier than the whole of Nevada due to the casino entertainment business?! Next year it expects to benefit from relaxed visa rules for mainland Chinese so stocks have soared whilst the Hong Hong stock exchange has seen turbulence.

Ironically, the boom is because the Nevada brands that we know and love (think Wynn, and the world's largest casino from The Venetian...) have invested in Macau after it was handed back to China in 1997 after 400 years of Portuguese rule. Although Macau is part of China now, not all the money goes into Chinese pockets as it still operates under "one country, two systems." But still, China is one of the hottest gambling destinations on earth. Wow!

When I was younger, Macau was already a gambling (and all that goes with that) haven because, apart from the prestigous Hong Kong Jockey, there was nowhere legal to have a bet. Folks were even betting illegally on things like video games in the 80s?!

Lighthearted Here's a little amusing story about MC Barry from Liverpool. He's a cabaret singer in Macau who is a novelty because he sings in Mandarin! That's heart!

Friday, 31 October 2008

The BBC box hits China

Money's what makes the world go round...So, the BBC is following a cargo container around world for a year to tell stories of globalisation and the world economy. For the first journey the box traveled more than 10,000 nautical miles - from Greenock, Scotland, via Southampton and along the Suez Canal, Egypt and Singapore. Watch the BBC news report here.

The BBC box arrived on Wednesday at the Yangshan port in China, one of the biggest on the planet (and so busy it's getting an artificial island in the East China Sea for its newest container terminal). Inside the box was 15,000 bottles of 12-year-old Chivas Scotch (from, um, Scotland) destined for the bars of Shanghai.

5mins to spare
Watch this Google Map of the cargo's journey.


U.S. slow down But, cargo shipping has suddenly become a lot cheaper as U.S. demand for goods has slackened so ships are sailing back half full (sending the box back to Southampton will cost a third less than last year). Wait a minute - don't you think we should begin to live in a more "macrobiotic-friendly" way - i.e. consume more local stuff, or at least stuff less traveled. It'll definitely be more expensive in the short-term but it's the only way forward.

Here's a crazy example of what's happening. Most Alaskan salmon is caught, quickly frozen and then *shipped to China* for preparation (fileting, boning etc.) before being shipped back to the U.S.!? Do you think that's excessive?

No holding back With up to 250 million middle-class Chinese consumers waiting their turn to join the consumer bandwagon simple things like Marks & Spencer's digestive biscuits are in demand. "Prices in Marks and Spencer are fine for me - considering quality," says one male shopper. "But I am more careful with my spending these days. Our earnings just aren't as stable as they used to be when the economy had double digit growth."

China stands strong Here's an amazing factoid. Even though there's a worldwide slowdown predictions are that China's burgeoning middle-class can help China maintain strong growth. "If the economy is growing well globally then China can grow at 12%, if it boosts consumption, but if the rest of the world is not doing so well, they can still grow at 9%, which ain't bad," says Access Asia's Paul French.

Tuesday, 28 October 2008

China's factories are closing

Unemployment is becoming a Chinese issue

During the McCain presidential campaign we've heard about all the money that the Middle-East is hoarding due to America's oil dependence and how the US owes the China trillions of dollars.

That's one side of the story and both those countries are in the black, rather than the red. But it's not all rosy. In China, where I never really thought people would ever be unemployed, the US-based, but global recession is starting to bite.

Friday, 10 October 2008

Fo' real, or not fo' real?

I love new gadgets, but there's never a "right time" to buy. Now it seems, you may not even be buying the real thing?!

Nokia's latest mobile phones have appeared on eBay this week. The N96 (US$500+) and Sapphire Arte (US$1,000) mobile phone handsets are being listed for "way below the market price." Uh, an obvious hint that they're fake?!



Surprising to me is the role Dubai plays in the trade of bogus goods. It seems that the UAE is a known hub for traffiking goods from China to the West. Known as the "dragon market" it's described as "the biggest trading port for Chinese traders outside China."

Nokia UK's managing director, Simon Ainslie, told Mobile magazine, "We take [counterfeit products] very seriously. Copied phones still exist and our intellectual property team are always investigating them."

Here is a blatant advert for a website that supplies the bogus gadgets.



Helpful links
How to detect fake Nokias

Sunday, 21 September 2008

Made in China...no thanks?

Wandering around Ranch 99 or 99 Cent Stores as I do occasionally, who can't help wonder what's safe to eat as nearly 13,000 children in China have been poisoned by tainted milk powder! This tragic story of greed and poor production oversight has cost four babies' lives so far!

There have been very few cases of illness outside of China. That the Chinese companies would do this to its own people is horrific. As expected, many countries have banned Chinese dairy imports following the scandal. Thankfully, Chinese police have arrested 18 people in connection with the scandal and customers are able to return the possibly tainted milk powder brands purchased at a supermarket in Hefei, Anhui province in September.



Incredible It's reported that the tainted milk contained melamine, a banned chemical normally used in plastics. When added to milk powder it appears to have higher protein and was used in products made by 22 companies!?

Made in China No longer simply a guarantee of low-price, "Made in China" is now feared. With the recent toy and food scares we've witnessed, the world has to be selective about what it buys. The old addage "quality, not quantity" is so apt in today's society of consumerism. May be that conscientiousness will trickle into other world issues like pollution and ecological matters too. That's the only way up.

Saturday, 1 September 2007

iPhone...Made in China

Hottest gadget + Hottest country = Prosperity

On the most southern tip of China, just across the border from Hong Kong is the Hon Hai Precision Industry Co. (Ticker: TEF). That typically dull industrial name hides that fact that the company is one of the world's leading electronics manufacturers and a key partner to many household names like Apple, Motorola, Nintendo and Sony Playstation.

$40 billion and growing...

What can be said about this Taiwanese company that has grown revenues by over 50% a year for the past decade to $40.6 billion revenues in 2006 alone? Billion! Imagine that kind of money...that's close the price that Cingular paid to acquire AT&T Wireless back in 2005! (Or to put it another way, Hon Hai is expected to add another $14 billion in revenues this year...the same as the entire sales of CBS Corp.!!)

Expand your share of the Value Chain

How has Hon Hai managed to grow (and keep growing) at such a rate when its rivals have struggled to manage overcapacity? I mean, Hon Hai is larger than its 10 closest competitors combined?! By leveraging the fact that it can produce many of the components that are used in its clients' products and therefore create off-shored sub-assembly production lines that are far more efficient than those of its clients. This encompasses a whole heap of manufacturing and production management acronyms like CEM, EMS, ODM and CMMS.

Dell case-study

Back in 1995, when Michael Dell first met Gou, Dell and other PC manufacturers bought the components and assembled them in their own factories. That is, until Gou built a production line that allowed Hon Hai itself to do this - everything from making the PC steel cases to building the completed PCs - thereby reducing overall costs without reducing profit margins.

Also, it doesn't hurt to have a firm grasp of expenses either. One Hon Hai executive joked that the founder, Terry Gou, is "worth $2 billion in nickels and dimes". Although today, that number has grown...Gou is personally worth about $10 billion!

Where next?

The phenomenal Taiwan/China growth story has been achieved by taking this strategy horizontally across other Computer, Communication and Consumer-electronics industries like digital cameras and LCD panels.

So where's the next growth area for this Taiwan/China partnership? Expect a 'Made in China' label on the next-generation of medical equipment soon.

Wednesday, 15 August 2007

7-foot something...Chinese are taller than Americans

What's in the food?

Wow, what are they feeding the kids in China? Yao Ming is the 7-foot 2-inches (2.26 metres) tall NBA star for the Houston Rockets. He's been in the news this month as he's marrying his sweet heart, another basketball player from China, who comes in at 6-foot 2-inches tall (1.9 metres)!

Ok, these two aren't your average rice-yammin' Chinese citizens, but NPR noted that the Chinese are gaining height, whilst the Americans are stuck at an average 5-foot 9-inches! And we all know the advantages that tall folk have over the height-challenged...

It's gotta stop

It's was interesting to read that, even though Yao Ming is fairly traditional (he got married back at home and close to his fiance's hometown), he is trying to bring attention to something that has been worrying me...The demand for exotic animal parts for Chinese cuisine due to folklore or superstitious beliefs.

The NBA Houston Rockets centre has been active in environmental protection and last year Yao Ming pledged to stop eating shark's fin soup which is considered a Chinese delicacy. The shark's fin is the only part that is valuable ($300+/lb) so fisherman just slice off the fin and dump the shark back to drown in the sea - a practice called 'finning'.

Ironically, this dish would've certainly been on the wedding banquet menu as it's a sign of wealth and prestige. By speaking up, Yao Ming has raised the awareness of the cruel and senseless practice within and outside of China.

Avril goes to China

Avril learns Mandarin

China Radio International is the only station broadcasting from Shanghai in English I believe. That's where I found some news about Canadian pop punk queen, Avril Lavigne, arriving in Shanghai to play her first solo Chinese gig.

It's a smart move on her part considering some say a larger proportion of money is made from concerts etc. than record sales now. Let's assume only a very small percentage will legitimately buy Lavigne's tunes in China, but anciliary revenues from the world's largest market could be huge(r).

Has anyone seen a blonde girl with an entourage...?!

The Shanghai Youth Daily said that: "the punk singer arrived at the city secretly, and that even the local media and hard-core fans at the airport failed to see her."

Don't make me laugh. Oh, and which local media took the pics?! Come on - unless a moody white rock chick being chaperoned by some burley white and black body guards is a normal occurance in Shanghai's Pudong International airport I think Lavigne would've stuck out like a sore thumb!

Avril in Mandarin?!

AOL Video is hosting some video clips of the concert. I didn't watch, but may be it includes her Mandarin version of "Girl Friend". If not, here it is below...hey where can I buy the bootlegged concert VCD/DVD...?! Hahaha.



Loving this



Avril in Cantonese

Tuesday, 14 August 2007

Mattel recalls 9 million toys

Here we go again...

So, Mattel are recalling 9 million toys that were 'Made in China' as they contained two dangerous elements: tiny magnets that can be swallowed by kids or higher than acceptable levels of lead paint. Deja vu: two weeks earlier another 1.5+ million Mattel toys were recalled due to a lead paint scare.

As this latest news broke some interesting facts and commentary emerged. One NPR story highlighted how many products are manufactured in China - 80% of the toys sold in the US are made in China. Understand that manufacturing is to China what the IT industry is to India. It's the economic engine driving China into the First World and it'll be very hard to change that trajectory.

'Quality fade'

So, with such a high number of products from China of course any problems will probably be from a factory in China. So why is this happening? For example, we know that Wal*Mart is famous for 'Every Day Low Prices' and some of those low prices come as a result from increasing pressure on its suppliers to deliver. This is managed by the manufacturer through a process called 'quality fade'.

Here's a simple version of how it works: the Retailer squeezes the Manufacturer on price which results in the Manufacturer only being able to carve out a 2% profit margin on the deal. Once the deal has been running for some time, the Manufacturer reduces quality (ingredients, components etc.) to gain a 10% profit margin. The change is subtle and people may be none the wiser.

Here comes the politics

AP reported Sen. Dick Durbin, D-Ill. saying: “Another week, another recall of Chinese-made toys." Rep. Mike Ferguson, R-N.J., said companies whose toys are made in China need to be sure their products meet U.S. safety standards. “If they don’t, I believe Congress must give federal regulators the authority to ensure that our kids’ toys won’t actually harm them,” he said.

With this renewed pressure there could be calls for raised trade barriers and demands for further Chinese Yuan currency re-evaluation to make it fairer for US exporters, although the US dollar has hit a 26-year low which is good for export trade and has got to be helping the US trade deficit.

Sunday, 12 August 2007

Bowl of cardboard dumplings please...NOT

China has fake news stories too ;-)

Oh man, as if China didn't have enough world attention on its quality control! Zi Beijia, an aspiring investigative journalist for Beijing Television faked a story that shocked viewers of his report, but also landed him in jail!

Reuters reports that Zi had been arrested after it emerged that he had fabricated a report that local dumplings hawkers were adding softened, pork-flavoured cardboard to their food. On Sunday, a Chinese court sentenced the TV reporter to one year in jail for faking the report that was picked up across the world.

The Chinese official Xinhua news agency reported: "the journalist, Zi Beijia, was convicted after an open court hearing of "infringing the reputation of commodities". He was also fined 1,000 yuan ($132)."

Damage unlimited

But the damage has been done. No one hears that the story is fake, just that there was such a story. The public will remember that China has such practices and might, at best, remember that China fakes news reports.

In this new emerging market economy, trust between China and other countries needs to be earnt. Individuals are busy scrambling to grab a piece of the cake at any cost, but all the outside world sees is China Inc. suffering huge growing pains.

Monday, 23 July 2007

The Chinese love cash...$207 million of it

Cash is king

Zhenli Ye Gon, a Chinese pharmaceutical executive millionaire hit the headlines in March 2007 with a story worthy of a Hollywood script...his home in Mexico was raided and police found $207 million in cash stashed behind fake walls and other hideout spots. He disappeared into the US and left his wife and family in Mexico.

Arrested in Washington D.C.

Ye Gon was arrested on July 23 in the Washington area where he had come to consult with his lawyers. U.S. authorities charge that the money found in Mexico was the largest seizure of drug proceeds in history and that Ye Gon was well on his way to establishing himself as the leading meth supplier to U.S. dealers.

Was he guilty of supplying the key ingredients for illegal methamphetamine production (since 2005) and conspiring to import tons into the States as the American DEA claim? Or was he being framed to protect corrupt Mexican officials as Ye Gon claims in his defense?

Ye Gon's lawyers have always stated that he is the victim of a set-up by Mexican officials who have fabricated evidence against him to hide the fact that Mexico's ruling party had forced him to hide an illegal presidential slush fund. Do you buy that? There are enough Mexicans who doubt the integrity of their government to believe Ye Gon's version of events.

A year later

We'll soon find out more details about this case which U.S. authorities say could drag on for a year. Why so long? The investigation involves the US, Mexican, Chinese, German and Swiss authorities. Also the 'so-called' evidence is, ummm, missing! Well, the US authorities acknowledge that the key evidence isn't in its possession. In fact, the money seized has been recirculated into the Mexican financial system!? And, the 19 tons of chemicals confiscated in December 2006 by the Mexicans have been destroyed! Hmmm. Fishy?

"To say this case has political overtones is to greatly understate the situation," said lead defense attorney Martin F. McMahon. "Most of the so-called evidence has been destroyed."

Ye Gon's defense lawyers added: "there is something obviously wrong when the evidence cited so often by authorities is no longer available."

I concur. But, as we know guilt vs. proof are different things. I wonder if Ye Gon did this even if there's a lack of evidence in hand?