Friday, September 30, 2011

Rich entrepreneur in Central Committee "largely symbolic" - Rupert Hoogewerf

Rupert Hoogewerf
When Liang Wengen, currently China's richest entrepreneur, is voted next year into the Central Committee, that is largely a symbolic move, illustrating the symbiotic relationship between the Communist Party and private entrepreneurs, tells Rupert Hoogewerf or Hurun in CNN.

CNN:
Rupert Hoogewerf, who has served as chief researcher for Hurun Rich list for many years, says Liang's expected election into the Central Committee is largely symbolic. He points out that the private sector is "clearly an important player now in the economy as a whole," creating new jobs and paying substantial taxes. "It is a symbiotic relationship," he says. "They help each other out." 
If Liang is elected next year, Hoogewerf adds, his new political status will be a morale boost for China's private sector and may also benefit his company, the Sany Group., which Liang founded in 1989. It will not be the first time for Liang to work with the ruling party. He and his company have been involved in high-profile partnerships with the Chinese government. 
"It wasn't a coincidence that Sany was in Chile to rescue the trapped miners last year," Hoogewerf tells CNN. "The Chinese government offered to help and Liang was the person asked to make it happen on behalf of the government. It was a big thing."
More in CNN

Rupert Hoogewerf is the founder of the China Rich list and speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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The economic damage of internet filters - Marc van der Chijs

Marc van der Chijs
The slowdown of China's internet filters is costing internet entrepreneur Marc van der Chijs the equivalent of three working weeks per year, he estimates on his weblog. It hurts the country's international competitiveness.

Marc van der Chijs:
Tonight I was particularly frustrated when I was trying to test a website hosted on Amazon, and each time I was trying to check something the connection timed out. I got so upset that I even tweeted about it. Fellow entrepreneur Alex Duncan then replied with a blog post that he had written out of similar frustration 2 months ago. 
In this post he calculated that at the US multinational he used to work for, the staff spent an average of 30-45 minutes extra per day because of the slow Internet. That means a full 3 weeks of lost productivity (plus added stress and frustration) per year! Can you imagine the macro impact of this in a country like China? Of course only a relatively small number of people regularly uses the foreign Internet, but still the total effect must be huge. 
Alex mentioned that he might eventually consider to leave China because of this. Naturally I have pondered about that as well, but for me the advantages of China generally (still) outweigh the disadvantages of the terrible Internet. But at times I am so frustrated that I can’t wait until my next trip outside the Great Firewall.
More on Marc van der Chijs' weblog


Marc van der Chijs is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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Zambians vote against China - Howard French

Howard French
When the Zambians voted out their president last week, the election was also a referendum against China, writes journalist Howard French in The Atlantic. "Zambia has been at the leading edge of China's drive to expand its relations with the continent."

Howard French:
Although China is a latecomer to Zambia's decades-old copper industry, it has quickly established itself as an ambitious rival to "traditional" mining partners like Australia and South Africa. As almost everywhere in Africa these days, Chinese contractors are building highways, dams, and other large infrastructure projects. Zambia even boasts two Chinese-built special economic zones, and has recently allowed banking in the Chinese renminbi instead of the kwacha, dollar, or euro to facilitate trade with China. 
But these are not the only developments that have set Zambia apart, or at least placed it ahead of the pack in terms of observable trends in its relations with China. Zambia was one of the first African countries where the role of China and of Chinese people in the country became an explicit and potent political issue. During the campaigning for elections in 2006 and 2008, the newly elected leader, Michael Sata, made a sport of baiting China, calling its businesspeople in the country "profiteers," not investors, and denouncing Chinese for "bringing in their own people to push wheelbarrows instead of hiring local people." 
"Zambia has become a province of China," Sata thundered in one campaign rally back then. "The Chinese are the most unpopular people in the country because no one trusts them. The Chinaman is coming just to invade and exploit Africa."
Read the rest of the story in The Atlantic  


Howard French is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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Thursday, September 29, 2011

China's right to undervalue its exchange rate - Arthur Kroeber

Arthur Kroeber
China is manipulating its currency to boost its export, US criticasters say. China sees an undervalued exchange rate as the right of a developing country, just like other did in the past, argues economic analyst Arthur Kroeber in the Voice of America.

The Voice of America:
Arthur Kroeber is managing director of GK Dragonomics. He argues that China sees its undervalued currency and trade surplus as a right - and a key part of its national economic development. 
“There is no other demonstrated way to become a rich and powerful country other than, at your early stage, to promote exports. One of the tools to promote exports is to run an undervalued exchange rate," said Kroeber. "The Chinese take the view that, ‘Everyone else who has gotten rich has used the same technique… we want to get rich; we have the same rights as everyone else.'”... 
But keeping the yuan under tight government control also carries costs. It means China’s currency is not internationally traded, so many global businesses continue to price goods and contracts in dollars. 
Analyst Kroeber said Chinese concerns about the stability of the dollar are becoming a catalyst for Beijing to try to internationalize the use of the yuan. 
He said that the goal of the Chinese leadership, 10 or 20 years from now, is to create an internationally accessible bond market large enough to make the Chinese yuan a reserve currency like the dollar. “What they’ve been trying to do is increase the use of renminbi for settling and invoicing trade. If you have concerns about the currency in which your trade is denominated, traditionally U.S. dollars, using your own currency is a good solution to that,” said Kroeber.
More in the VOA

Arthur Kroeber is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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The internet as my second brain - Marc van der Chijs

Marc van der Chijs
The internet has become an extension of my real brain, serial online entrepreneur Marc van der Chijs told last weekend a group of future corporate leaders in Switzerland. On his weblog he discusses how business changes because of the internet.

Marc van der Chijs:
Don’t underestimate what this could mean for businesses – whether good or bad, fact is that the management is no longer in charge of the conversation. If top management does not embrace social media they may be in for an unpleasant surprise. But don’t see it as a threat, if management is entrepreneurial (which should be the case, right?) they should see it as an opportunity that their business can profit from. 
New very profitable businesses suddenly emerged (social games anyone?) because of the changing role of online media. It’s forcing many traditional companies to quickly adapt their business models. I discussed the book, music, newspaper and TV industry in more detail with my ideas about what they did right and wrong and what their future will look like. In my opinion this is just the beginning – we ain’t seen nothing yet.
More on Marc van der Chijs' weblog.

Marc van der Chijs is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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Wednesday, September 28, 2011

Building too fast in China - Bill Dodson

Bill Dodson
Author Bill Dodson takes the no.10 subway in Shanghai several times per week and just missed the collision yesterday. An annus horribilis for China's infrastructure, he sights on his weblog. But taking the bicycle in stead of the train is no longer an option.

Bill Dodson:
This has been an annus horribilis for China infrastructure. This year has seen wind turbines blowing up, bridges falling down, bullet trains crashing into one another and, most recently, a terrible accident on a Shanghai subway line I take several times a week. On hearing the news about the Shanghai accident my (Chinese) wife simply shook her head and said, “Everyone knows they’re building things too fast.” She told me of a program she had seen on Chinese national television in which engineers echoed the same sentiment. “I don’t want you to take the bullet train to Shanghai,” she said quickly, “and I don’t want you riding the subway in Shanghai, either. Ride your bicycle!” Of course, that’s hardly feasible with a 150 km to cover between Suzhou and Shanghai; leave alone the thought of navigating Shanghai traffic on a bicycle.”
More on Bill Dodson's weblog

Bill Dodson is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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Tuesday, September 27, 2011

Inflation undermines consumer confidence - Shaun Rein

Shaun Rein
Rising food prices are worrying China's consumers, tells business analyst Shaun Rein in CNBC. Although he also discovered the women keep on shopping for now, although their buying habits changed dramatically.

Shaun Rein:
My company interviewed 500 consumers in five cities last month. We found consumer confidence to be at the lowest point since the start of the financial crisis in 2008 with dissatisfaction largely stemming from inflation. 
However, there is a silver lining. Women consumers in China are still willing to spend, but how and what they spend on is changing dramatically. Western brand managers need to understand these changes and adjust their product selections as well as marketing messages or else they will make mistakes and end up retreating from the market as Best Buy and Barbie did. Instead of cutting back on spending, we found the vast majority of women - perhaps surprisingly given the overall gloom - were spending more. 
However, they were seeking value more than ever before in their purchases... On the good side spending is actually growing for the aspiring middle classes and above. To capture this growing segment, brand managers need to understand that women consumers are more focused on value rather than price and are researching their purchases.
More in CNBC  


Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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How does Sina Weibo fits into China's media landscape? - Sam Flemming

Sam Flemminhg
Sina Weibo, China's equivalent of Twitter, fits exactly into the media landscape of this moment, tells CIC-founder Sam Flemming in Thoughtful. On top of it, if offers tools for anonymous conversation, private groups and business pages, and is an instant hit among internet users.

Sam Flemming is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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Monday, September 26, 2011

Europe's lagging internet culture - Marc van der Chijs

Shanghai-based serial internet entrepreneur Marc van der Chijs tells on his weblog how the internet culture in Europe is lagging, as he talks to a conference of future corporate leaders, who still have to find out the world has changed behind their backs. Unsettling, when you are used to China.

Marc van der Chijs:
This morning I was surprised by two of the speakers when they among others discussed the use of Twitter and Facebook. English politician Lord Michael Hastings of Scarisbrick (Global Head of Citizenship at KPMG) and Prof. Joachim Bitterlich (former foreign policy advisor to Helmut Kohl and currently a.o. board member at Veolia) both argued that Twitter and Facebook lead to a focus on short term decision making and don’t allow you to step back and take a longer term view. Having that opinion is fine of course, but not when you first announce that you don’t use Twitter and Facebook! It’s so typical that people who don’t use social media seem to be the biggest critics of it.
More from a shocked Marc van der Chijs at his weblog

Marc van der Chijs is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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Saturday, September 24, 2011

China has more billionaires than the US - Rupert Hoogewerf

Rupert Hoogewerf
China has 270 billionaires, tells Hurun founder Rupert Hoogewerf in the Want China Times, more than the US, although the Hurun Rich list 2011 does not give all their names.
The [latest] report also stressed that as Chinese people are often secretive about their wealth, it is not obvious that China is now likely to have more billionaires than the United States. The's rapid economic boom is best illustrated by the fact that when Hurun released its first report in 1999, China did not have any dollar billionaires. 
The ... list is the complete version, listing 1,000 corporate executives with personal wealth of 5.9 billion yuan (US$923.4 million) on average. This represents a growth of 20% from a year earlier. The lower threshold of the list is now 2 billion yuan (US$313 million), double that of last year. The average age of the listed executives is 51. 
"This year, China's rich people outpaced all others in the world in creating wealth," said Hoogewerf. 
The report also highlighted that Sany Group was one of the wealthiest publicly-traded companies in China, with eight of its shareholders joining the billionaire club.
More in Want China Times. Rupert Hoogewerf is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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Friday, September 23, 2011

Why censoring the "Super Girl" show does not help- Zhang Lijia

Zhang Lijia
China's broadcast authorities cancelled recently a hugely popular Idols-like TV show called the 'super girls'. Author Zhang Lijia explains on her weblog why those heavy handed censorship methods do not work anymore.
China has greatly relaxed its control in many ways. Back in the 80’s, I failed to get any promotion partly because of my curly hair – I am one of the few Chinese who have natural curly hair but my boss thought I wore a perm. In those days, only people with bourgeoisie outlook in life would curl their hair. I didn’t have the correct ideology therefore didn’t deserve a promotion. Today’s young girls feel free to curl their hair or dye their hair purple or blonde, as quite a few of ‘super girls’ do. But the leaders still keep a watchful eye on the culture, which has always been used as a tool for propaganda, for setting moral examples and educated the masses. 
There’s always generation gap. And the gap between China’s young generation and their parents is wider than ever before. They are far more worldly, opinionated and harder to be brain washed and they are increasingly individualistic. In fact, one of the selling points of ‘Super Girl’ was that it encouraged girls to be awesome, be yourself and using this opportunity to express your individuality. The heavy-handed way the ‘Super Girl’ was dealt with may not work with the youngsters. The authorities can pull the plug of the show but can’t pull them away from the love songs in English and to embrace the revolutionary songs in their own tongue. 
Once Mao’s straight jacket has been unbuttoned, no one really wants to get back into it.
More at Zhang Lijia's weblog


Zhang Lijia is a speaker at the China Speakers Bureau. When you need her at your meeting or conference, do get in touch.
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Apple is lagging behind Google's android - Shaun Rein

Shaun Rein
Apple might look like the big technology winner, gaining unprecedented access to the Chinese consumer, but it is lagging as Google's Android moves ahead, tells business analyst Shaun Rein Bloomberg. Bloomberg:
The iPhone maker is only “scratching the surface” of Chinese demand after sales in the region surged six-fold to $3.8 billion last quarter, Apple Chief Executive Officer Tim Cook said in July. Still, delays in store openings may give makers of smartphones and tablets equipped with Google Inc. (GOOG)’s Android software room to gain market share, said Shaun Rein, managing director of China Market Research Group. “In many ways they are still behind the curve, and they are opening stores too slowly,” said Rein, whose Shanghai-based company advises retailers and other clients about operating businesses in China. “Before, Apple had clear dominance in terms of technology, but now the gap is being lowered because of Android.” Apple is expanding distribution of its products including the iPhone and iPad in China as competition with Android device makers including Samsung Electronics Co. and Lenovo Group Ltd. (992) intensifies. Kristin Huguet, a spokeswoman at Apple, declined to give the company’s latest target for store openings in China.
 More in Bloomberg Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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China's rich defy global crisis - Rupert Hoogewerf

The US and Europe might be bracing for another global crisis, but the wealth of China rich increases undeterred, noted Hurun' founder Rupert Hoogewerf of China's rich list in an interview with Xinhua on Thursday. They booked another record year of growth.
Property remained the biggest source of wealth for those on the list, but the fastest growing sources of wealth were in the commodities, healthcare, IT and retail sectors, Hoogewerf said at a press conference held to introduce the 2011 Hurun China Rich List compiled by the Hurun Research Institute. 
The annual ranking of China's richest people names 1,000 people with individual wealth of over two billion yuan (about 313 million U.S. dollars). Their average age, this year, is 51. 
The list shows that, despite the continuing global financial crisis, 2011 is a record year for China's rich, with average personal wealth totaling 924 million U.S. dollars, according to the list. 
Liang Wengen, chairman of China's heavy machinery giant Sany Group, has been named the wealthiest person in the Chinese mainland. His personal fortune totaled 70 billion yuan. 
Despite the looming global financial crisis, China's economy has continued to grow vigorously and steadily, which is apparent in the rich list, said Hoogewerf, who is also the chairman and chief researcher of the Hurun Research Institute.
More in Xinhua

Rupert Hoogewerf is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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Migrants' dreams and technology - Tricia Wang

Sociologist Tricia Wang investigates the dreams and ambitions of migrants in China, and their usage of mobile phones and the internet. Agenda Beijing interviewed her on her findings and how her search fits into her own life. A snippet:
We’ve also seen one of the world’s most rapid expansions of mobile phones and Internet architectures in China, and the Chinese administration has successfully ensured that its digital revolution has reached an immense number of new users. This alone makes China an incredibly unique place to do for research on digital culture. 
What are some of these workers’ hopes and dreams? 
They actually share the same dreams with most people around the world: finding a stable job, meeting someone special, giving their parents a more comfortable life, and having opportunities to improve their life chances. This current period of development in China is like a big race to reach the dream of having a comfortable life, but not everyone has an equal start; people from villages and smaller cities face challenges that more long-settled or life-long urbanized people do not. 
Is technology the ticket into the middle-class for migrant workers? 
I wouldn’t say ever say that technology alone is the ticket for upward economic mobility—technology per se is almost never a silver bullet for economic development. However, I would say that digital technology is an important factor among many others such as social and economic stability, access to education, and health in helping migrants get ahead. 
In what ways do you see migrant workers’ constructing their own technological needs?   
I don’t necessarily see people constructing technology needs, but I see people constructing social needs and using technology to fulfill them. Young people (but not limited to them) want to feel validated. They want someone to listen to them, and to care about them. Deep friendships are created out of multi-player games. In the in-game chat or post-game chat on QQ, they are often willing to share really emotionally complex and deep things about themselves that they feel they can’t share with their offline friends or family.
More in Agenda Beijing

Tricia Wang is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch.
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Thursday, September 22, 2011

China 'soft power' fails - Jeremy Goldkorn

Jeremy Goldkorn
China is trying to put up a nice face by using 'soft power' to get things done globally, but it meets mostly distrust, illustrated by a troubled bid from a Chinese tycoon to buy a part of Iceland. Beijing resident and media watcher Jeremy Goldkorn tells the New York Times why.

 The New York Times:
“I was moved by that bleak, wild nature,” [developer Mr. Huang] told The International Herald Leader, a newspaper affiliated with Xinhua, the state-run news agency. 
The developer, who has climbed Mount Everest twice and published six volumes of poetry with titles like “Don’t Love Me Any More,” “looks forward to become a wandering poet and lead a wild life,” according to his company’s Web site. “Why do people want to ruin this win-win investment?” he asked in the newspaper interview. 
One answer: deep suspicion about a country with increasing global weight but little “soft power,” analysts said. 
“It does show what a failure they’ve been at their soft-power efforts,” said Jeremy Goldkorn, the founder of danwei.com, a Web magazine and research firm, and a 16-year resident of China. 
The phrase “gets bandied about in various ways,” said Mr. Goldkorn. “It should mean that you have the power of attraction, and China’s been very bad at that,” he said, citing its lack of transparency, harsh treatment of dissidents, hard-line stance over claims in the South China Sea and food safety scandals. “The soft power that they are getting is exclusively because of their money,” he said. “They haven’t managed to build a country where people feel safe.”
More in The New York Times

Jeremy Goldkorn is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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US$ 5.8 bn arms package for Taiwan - Wendell Minnick

Wendell Minnick
The US have released a US$ 5.8 billion arms package for Taiwan, triggering off the anger of China, writes defense analyst Wendell Minnick in Defense News. Taiwan still hope to obtain also ordered new F-16's. Wendell Minnick:
The U.S. has released a $5.8 billion arms package to Taiwan that includes a retrofit for F-16A/B fighter aircraft, the continuation of an F-16 fighter training program, and a blanket order for spare parts for the C-130 cargo aircraft, F-5 fighter and Indigenous Defense Fighter (IDF). The U.S. Defense Security Cooperation Agency (DSCA) released three Congressional notifications on Sept. 21 covering the deal under the Foreign Military Sales program. Taiwan's Ministry of National Defense (MND) also confirmed the release during a late night press conference. MND officials expressed gratitude for the release; one official called it an early Christmas gift.
More in Defense News Wendell Minnick is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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Wednesday, September 21, 2011

Peter Hessler, the inspiration of my memoirs - Zhang Lijia

Bestselling author Zhang Lijia recalls in her weblog how award winning journalist Peter Hessler inspired her to write her memoirs, "Socialism Is Great!": A Worker's Memoir of the New China. Hessler won the MacArthur Foundation award. Zhang Lijia
Among his three books, I’m particularly fond of River Town, for its simple and elegant prose, often with fresh twist: “Fuling is a city of legs – the gnarled caves of a stick-stick soldier, the bowed legs of an old man, the willow-thin ankles of a xiaojie…” I admire his sharp observation as an outsider. For example, he talks about how Chinese often laugh at a moment westerners would think impropriate, saying mentioning death, and points out it’s just a Chinese way to ease the awkwardness. I realized that’s what I’ve been doing without realizing why. And I love his subtle humour. And I think he put just right amount about himself in the book, which is about a Chinese town, seeing through his eyes. Through the pages, he comes across as an extremely nice man who honestly reveals his more arrogant (only by his own standard) English-speaking Peter Hessler and more likable Chinese-speaking He Wei (何伟,his Chinese name). I am delighted that his fame and enormous success have not blown up his ego. This spring during Beijing’s International Writer’s Festival, I saw him and his twin girls. He remains the same laid-back and amiable guy he always was and even the cute babies are easy-going.
More in Zhang Lijia's weblog   Zhang Lijia is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch.
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Taiwan might pick JSF after F-16 ban - Wendell Minnick

Wendell Minnick
Taiwan might shift its preference to the F-35 Joint Strike Fighter (JFK) after the US declined to sell F-16's to the island, to safeguard its relationship with China, defense specialist Wendell Minnick writes in Defense News, quoting deputy Defense minister Andrew Yang.

 Wendell Minnick:
Taiwan has requested 66 F-16C/D fighter aircraft and a mid-life upgrade (MLU) package for 146 older F-16A/B fighters. However, due to pressure from China, the U.S. had declined Taiwan's request for new C/Ds. The U.S. Defense Security Cooperation Agency is expected to release the Congressional notification this week for the A/B MLU. 
The specter of declining U.S. support for Taiwan's defense needs has rattled the Ministry of National Defense, which has become reliant on U.S. arms exports as others, such as Europe and Israel, have sided with China to curry economic and political advantages.
More in Defense News Wendell Minnick is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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Tuesday, September 20, 2011

China: expected to continue economic growth - Arthur Kroeber

Arthur Kroeber
Europe and the US might be bracing for another economic hit, but economic analyst Arthur Kroeber explains in The Financial Times why he expects China to continue growing - in stead of crashing like others predict.

Private consumption in China is low, 33 percent of its GDP today, while its neighbors spend at least 50 percent on consumption. How is this working out in China, where sales of luxury goods and cars have been picking up over the past few years?

The Financial Times:
How to reconcile this paradox? Arthur Kroeber, managing director of Gavekal Dragonomics, an economic consultancy, has an explanation. He argues that China’s private consumption has actually accelerated from around 7 per cent in the late 1990s to around 10 per cent a decade later (although growth did slow noticeably in 2010). Kroeber declares that China’s real per capita consumption growth in recent years is “the fastest of any country in history”. 
Among the many clouds looming over the world’s economy, it is reassuring to have a ray of sunshine to look ahead to. Kroeber goes further, arguing that China’s very high investment rate of 46 per cent, also the highest in recorded history, may also be a precursor to economic super-stardom rather than the precursor to a crash as several sceptical observers believe it is. The US and Germany ( with investment ratios of more than 20 per cent of GDP when they were industrialising rapidly ) and subsequently Japan and South Korea (more than 30 per cent) also invested more as a percentage of their GDPs than ever seen before, he argues. They then went on to be economic behemoths.
So, like sporting records perhaps, investment as a percentage of GDP is one that is beaten every decade or two. Kroeber predicts that China is at the point when its investment ratio stabilises and then declines “while consumption begins to pick up steam.” He predicts that China will likely grow at a very respectable 8 per cent a year annually for a decade at least.
More in The Financial Times

Arthur Kroeber is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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Why China should not bail out Europe - Shaun Rein

Shaun Rein
Europe is more than ever looking at China as a way out of its financial misery. But business analyst Shaun Rein argues in CNBC that buying Italian bonds is not in the interest of China, or the world. Shaun Rein:
Since the crisis started, far too many politicians have looked for easy solutions like lower interest rates rather than restructuring economies to rebuild confidence and create job opportunities. Buying Italian bonds will not save Europe. It will only avert a crisis until a few months down the line when fears about Spain or Portugal hit the world. Even though Prime Minister Wen Jiabao said China would be a friend to Europe, he did not specifically mention what his nation would do. Wen's options are limited because of raging inflation that hit 6.2 percent in August, rising local government debt and non-performing loans. Domestic pressure is also pushing the government to be cautious in buying bonds. The Chinese people don't want to see the nation’s reserves drop in value if the Euro falls just as China's U.S. dollar holdings have lost value... China is being a responsible global stakeholder by stepping in to calm markets and ensure the fiscal viability of its own nation. It is taking care of its internal interests and helping where it can globally. But the Chinese know that buying bonds is not a long-term solution. Western Europe and America need to focus on reforming their economies to produce items the Chinese want. They need to build consumer confidence through job creation and stop dreaming that a Chinese bailout will work.
More in CNBC   Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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Saturday, September 17, 2011

Obama opposes Congressional push for Taiwan's F-16's - Wendell Minnick

Wendell Minnick
US president Barack Obama plans to push Congress against the law that would allow the sale of F-16's to Taiwan, Wendell Minnick writes in Defense News. The result of a meeting with Congress yesterday are not yet known.  
"The U.S. government does not comment on possible foreign military sales - including processes associated with them - unless formal congressional notification has taken place," a State Department spokesman said in an email. "Consistent with long-standing U.S. policy, U.S. arms sales to Taiwan are guided by the Taiwan Relations Act (TRA) and based on our assessment of Taiwan's defense needs. Meeting Taiwan's defense needs is a deep and enduring commitment of the United States, and this administration is committed to doing so under the terms of the TRA. We authorized the sale of $6.4 billion in arms to Taiwan just last year." 
According to one source, the official notification on the deal should be released by the Defense Security Cooperation Agency, the Defense Department office that oversees foreign arms sales, some time next week.
More in Defense News Wendell Minnick is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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Friday, September 16, 2011

Why the Chinese read fewer books - Zhang Lijia

Zhang Lijia
Drooling foreign publishers are trying to enter the Chinese market, like recently on the International Book Fair in Beijing. But author Zhang Lijia warns on her weblog for too high expectation, as the already limited number of books per Chinese is even dropping. Zhang Lijia:
 Eyeing at China’s massive potential, the publishers all asked me about the reading habit of the Chinese. I felt a little embarrassed to tell them that today’s Chinese don’t read much. And we are reading less and less, though more books than ever, domestically produced, imported and translated, are on offer. 
According to one survey, only 5% of the Chinese have the habit of reading. And on average, each Chinese reads 4.5 books a year comparing to 50 books for an American, 55 for a Russian and 65 for a Jew. Those being surveyed blame the lack of time for not reading while others admit that they don’t have the habit of reading. 
Of course, the digital world has taken away some readers. But that’s the challenge faced by the world. 
And if the Chinese read anything, it’ll be likely practical books that will help them to go far in life, books related to their account degree, MBA, or books such as how to become a millionaire, how to lose weight, how to deal with relationships or how to find a rich husband. If they read fiction, it’ll be likely cheap thrillers, tomb raiders, predictable romance, strange ghost stories or such. 
The Chinese seem to be too restless to read, to restless to read serious books.
More on Zhang Lijia's weblog

Zhang Lijia is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch.
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Wednesday, September 14, 2011

US Congress pushes Obama on Taiwan's F-16's - Wendell Minnick

John CornynJohn Cornyn via WikipediaThe pro-Taiwan lobby in US Congress is gathering steam after president Obama refused permission for F-16 sales to Taiwan, writes Wendell Minnick in Defense News. The Taiwan Airpower Modernization Act (TAMA) is now up for discussion. Wendell Minnick:
U.S. Sens. John Cornyn, R-Texas, and Robert Menendez, D-N.J., introduced the Taiwan Airpower Modernization Act (TAMA) on Sept. 12 for congressional review. The new act is an effort to force the Obama administration to adhere to "obligations" under the 1979 Taiwan Relations Act "to provide Taiwan with the military equipment it needs to maintain its self-defense capabilities," said a press release issued by the two senators. 
The new legislation is the latest salvo from Taiwan supporters in Congress who are pushing Obama to release an $8-billion deal for 66 F-16C/D Block 50/52 fighter aircraft. On Aug. 1, 181 bipartisan U.S. House members sent a letter to Obama urging him to release F-16s. On May 26, another bipartisan letter signed by 45 senators was sent to the White House.
Wendell Minnick
More in Defense News.


Wendell Minnick is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.
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