China Herald

The upcoming cyber war - China Weekly Hangout

2013-06-19T11:47:00.000+02:00

US Navy 070712-N-9758L-048 Information Systems Technician 2nd Class Athena Stovall, assigned to Commander U.S. 3rd Fleet in San Diego, scans the network on her computer for intrusions during a cyber war training course at the S (Photo credit: Wikipedia)

The US, China and other countries have been building up capacity over the past decade to fight a full-blown cyber war. The recent disclosures of US whistle-blower Edward Snowden has been a major development in that playing field of cyber relations between the American and Chinese state and private companies. Apart from the Stuxnet attacks on Iran, exchanging cyber fire has been pretty limited up to now, as far as we know. Are those days over?
The China Weekly Hangout will try to scratch on Thursday 27 June a bit under the surface of this cyber war.
The event takes place on 10pm Beijing Times, 4pm CEST (Europe) and 10am EST (US/Canada).

Former security consultant +Mathew Hoover from Hong Kong has already agreed to join, and we are waiting for confirmation from a few other possible participants. Do you want to join, drop us an email or register right away at our event page.
You can watch the event here or at our event page. During the event you can send questions and remarks via Twitter, Google+ and our YouTube channel. (add hashtag +CWHCWH)

Update: +Paul Fox. media and communication lecturer at the HKU has also confirmed his attendance. Paul is a US citizen living in Hong Kong.

Who is hacking who, the China Weekly Hangout asked itself on February 28, with former security consultant +Mathew Hoover and reporter +Charlie Custer of +TechinAsia, discussing the hacking issues, the Sino-US relations, including some useful information on what to worry about and what not. Moderation: +Fons Tuinstra of the China Speakers Bureau.

will join us on Thursday 20 June at the China Weekly Hangout to discuss what Chinese tourists want (apart from quick visa and Chinese brochures). Getting Chinese tourists to your country, and letting them spend is an art in itself. Here is our announcement, or you can register directly at our event page.

Why London is lagging behind in Chinese tourists - Roy Graff

2013-06-18T14:31:00.001+02:00

Roy Graff

A cumbersome visa system, no Chinese language brochures. Those are just a few of the barriers the UK and London have in place to stop more Chinese tourists from visiting their country, almost ten years after the first groups were allowed in, hospitality expert Roy Graff tells Christine Lu in the Jing Daily.

Roy Graff:

The retail industry in London is very happy with Chinese consumers; we just need more of them. Britain was late to this game since the EU signed the ADS agreement two years earlier. At that time, the vast majority of Chinese tourists came in large groups and travelled by coach across Europe to visit as many landmarks as they could. But in the last 5 years, what became very clear is that Chinese outspend most other nationalities when they travel, and the rate of growth overall has surpassed 15% every year. In 2005, the UN WTO (World Tourism Organisation) predicted that Chinese outbound tourists will number 100 million by 2020. It has since revised that date to 2015, and recently the president of China said he believed 200 million Chinese will travel abroad by 2020!

For the UK, I’ve long argued that the focus should be squarely on high net worth individuals and small groups of discerning tourists. It would be better to have 400,000 Chinese who spend £3000 on their visit than a million who spend £1000. In 2005, the idea that Chinese would outspend Americans, Japanese, and even Middle Eastern tourists seemed ridiculous, but this is fast becoming the reality...

I think you have similar appeal in New York City, Paris, Hong Kong, and Singapore–globally famous cosmopolitan cities that have a unique, distinct set of characteristics. Many of China’s cities have developed to resemble each other so this uniqueness is a draw. London has a long established Chinese diaspora community and a thriving China town. It is an education and business centre and had historical ties to China.

Despite London having higher prices than Europe for shopping, the sales offer great value and the selection is world class. Prices are still much cheaper than China. Chinese love value, so getting 12 to 15 percent off for VAT refund at the airport is great.

More in the Jing Daily.

Roy Graff is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

+China Weekly Hangout

+Roy Graff will join us on Thursday 20 June at the China Weekly Hangout to discuss what Chinese tourists want (apart from quick visa and Chinese brochures). Getting Chinese tourists to your country, and letting them spend is an art in itself. Here is our announcement, or you can register directly at our event page.

Getting tourists might not be the UK's strongest asset, education is doing much better. The China Weekly Hangout discussed the future of Chinese students when they start an international study? +Andrew Hupert, formerly working for the NYU Shanghai campus and +Paul Fox, lecturer at the HKU School of Professional and Continuing Education joined +Fons Tuinstra, president of the China Speakers Bureau.

Can America catch up with China in Africa? - Howard French

2013-06-17T21:12:00.000+02:00

Howard French

Africa is doing better than ever, and China seems to play a major role, compared to America. China and Africa veteran, the US journalist Howard French went back to Africa, traveled to continent, to find out whether America can catch up with China. His report in AllAfrica.

Howard French:

The [Obama] administration needs to be much more energetic and resourceful in encouraging American businesses to seek out opportunities in Africa. The profit motive is the best cure for the deep-seated strain of paternalism that runs through our relations with the continent. During my book research travels, I was surprised to learn in country after country that construction projects, worth as much as $200 million that are American financed through the Millennium Development Corporation, drew no bids from American companies. China was gobbling up this work until Congress passed a law saying that funding from the MDC could not be given to state owned companies.

In one capital city after another, I noticed that American embassies had shuttered their "commercial sections," which historically have researched African economies and provided helpful information and contacts to American businesses looking for opportunities. In most of those cities, the Chinese have recently opened shop with their own commercial offices, usually not tucked away in an embassy, but housed in a well-appointed building of its own.

To avoid misunderstanding, it must be emphasized that Washington's biggest problem with Chinese inroads in Africa has nothing to do with China. The real problem is that the United States has walked away from Africa, leaving the playing floor virtually empty, and it will take years of concerted political leadership, and not gimmicky laws, to get back in the game.

Much more in AllAfrica.

Howard French is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

China Weekly Hangout

Last week the +China Weekly Hangout talked to +Eric Olander of the China Africa project about the arrest of Chinese gold miners in Ghana, and the position of Chinese labor in Africa. Questions are asked by Asia-based Swiss lawyer +Nathan KAISER and moderator +Fons Tuinstra of the China Speakers Bureau.

On Thursday 20 June we ask what Chinese tourists want. Chinese tourist spend more than those from other countries, but getting them to your country, and letting them spend is an art in itself. We are joined by Roy Graff of ChinaContact, and you can join us too. Here is our announcement, or you can register directly at our event page.

Creativity still key for marketeers - Tom Doctoroff

2013-06-17T15:13:00.000+02:00

Tom Doctoroff

Chaos has erupted now digital platforms have taken over communication channels, confusing marketeers and consumers. But China advertising guru Tom Doctoroff asks us to take a breath and look how technology is empowering us. New ideas are emerging, and they still need creativity he writes in The Huffington Post.

Tom Doctoroff:

The average Joe does not want to be bombarded with a never-ending series of disjointed creative. The best brands simplify life, not complicate it. That's why all creative ideas -- I like to call them "engagement ideas" -- must also be expressions of the brand idea. They can be short-term, long-term, thematic or promotional, but they must be manifestations of the brand's soul. Each idea reinforces the long-term relationship between people and the brands they love, lest confusion reign.

Today's business environment is ultra-competitive, hyper-accelerated. So creative has to be more than "interesting." It has to do more than break through clutter. Super Bowl Sunday notwithstanding, the days of sitting in front of the television waiting for cool TV ads to air are over. Yes, creative must be persuasive. And messages must be elegantly crafted. But communications success is now measured by depth of engagement.

In a new era of technological liberation, creative should not only draw attention but also elicit active response. Great creative ideas - for example, Nike's "Fuel" band, Axe's wake-up alarm service, Uniqlo's world Uniclock, Burger King's "Whopper Freak Out," Kit Kat's "Lucky Charms" - are now "participation platforms." (Hopefully, they are also easy to enjoy and not over-engineered.) Great ideas are now "made," not broadcast. They can be "things" people want to spend time with. The more time people spend using, playing with and spreading an idea, the deeper their involvement with a brand.

Importantly, engagement ideas must be carefully defined so they become "media-neutral," bigger than individual communications channels. As media options proliferate, ideas should remain consistent on everything from television, mobile phones, social media platforms, apps, video games, even in-store shelf talkers.

More in The Huffington Post.

Tom Doctoroff is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

+China Weekly Hangout

The new ways of communicating have influenced many parts of life in China. For example its labor force. The China Weekly Hangout discussed on May 24 those changes with +Dee Lee (Inno), of the NGO Inno in Guangzhou, is running a workers' hotline, mainly funded by big brands who want to keep an eye on working conditions. Heleen Mees, NYU professor in New York, +Sam Xu and +Fons Tuinstra, of the China Speakers Bureau, ask him questions.

On Thursday 20 June we ask what Chinese tourists want. Chinese tourist spend more than those from other countries, but getting them to your country, and letting them spend is an art in itself. We are joined by Roy Graff of ChinaContact, and you can join us too. Here is our announcement, or you can register directly at our event page.

Former US Army officer warns of too rosy picture of China - Wendell Minnick

2013-06-17T15:06:00.002+02:00

Wendell Minnick

Defense analyst Wendell Minnick got hold of an advanced copy of the upcoming book by former US Army officer Larry Wortzel, who also served as assistant Army attache at the Beijing embassy during the Tiananmen crisis in 1989. "Wortzel argues that the “PLA is turning into a modern armed force with its own unique operational doctrine.” he writes in Defense News.

Wendell Minnick:

Wortzel does not ignore true PLA weaknesses. He notes that although China’s ballistic missile capabilities have modernized and its entire missile force is mobile, the PLA has struggled to field a submarine-launched ballistic missile. Although the PLA Air Force has tested two different versions of a stealth fighter aircraft, J-20 and J-31, and successfully copied advanced Russian fighters, “China’s defense industries have struggled for decades to make a highly durable jet engine.”

However, these are not weaknesses that China will not overcome in time. In part, China has taken advantage of “many Americans, inside and outside of government” who “have a romantic and idealized view of China as a true ally.” China has successfully exploited these people to “steal technology, reverse-engineer military equipment, and learn about how the US military trains and operates.”

Too many US government officials have forgotten that “alliances depend on fundamentally shared values, which are missing from an army that is run by a communist party and has the fundamental mission of keeping in place a ‘people’s democratic dictatorship.’ ”

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 or fill in our speakers' request form.

China Weekly Hangout

International relations are a regular feature at the +China Weekly Hangout. On June 6 we discussed how Europe and the US dealt with China, when they are negotiating trade agreements, with negotiation expert +Andrew Hupert from New York, Swiss lawyer +Nathan KAISER from Taipei and political analyst +Steve Barru from Denver, Colorado. Moderated by +Fons Tuinstra of the China Speakers Bureau.

On Thursday 20 June we ask what Chinese tourists want. Chinese tourist spend more than those from other countries, but getting them to your country, and letting them spend is an art in itself. We are joined by Roy Graff of +ChinaContact, and you can join us too. Here is our announcement, or you can register directly at our event page.

Program schedule - China Weekly Hangout

2013-06-17T10:20:00.001+02:00

Over the past few weeks a program for the upcoming programs of the +China Weekly Hangout have been developing. The subjects are not yet set in stone, mainly depending on the availability of expert panelists, and developments of the issues. In each session we try to invite one or two experts in the field, and otherwise others are welcome to share experiences, or ask smart questions.
The plan as it looks today:

Thursday 20 June: what do Chinese tourists want, with +Roy Graff
Thursday 27 June: what can Edward Snowden expect from China (with an interesting contrary viewpoint here.)
Thursday 4 July: The Hong-Kong/Beijing relationship, with +Paul Fox
Thursday 11 July: Outbound Chinese investments, with +Nathan KAISER
Thursday 18 July: Having foreign firms a hard time?, with +Nathan KAISER , +Andrew Hupert

The China Weekly Hangouts take typically place on Thursday's, 10pm Beijing Time, 4pm CEST and 10am EST. In the weeks before the hangout, will we create a specific event page, where you can leave your comments or questions. During the event you can file comments and questions via Twitter, Google+ and our YouTube channel (add hashtag #CWHCWH). When you register for the +China Weekly Hangout, you will receive regular updates.

A full overview of past hangouts, you can get here. The China Weekly Hangouts are moderated by +Fons Tuinstra of the China Speakers Bureau.

Last week the +China Weekly Hangout focused on Chinese labor in Africa, with +Eric Olander of the China Africa project discusses the arrest of Chinese gold miners in Ghana, and the position of Chinese labor in Africa. Questions were asked by Swiss lawyer +Nathan KAISER and +Fons Tuinstra of the China Speakers Bureau.

On Thursday 20 June we ask what Chinese tourists want. Chinese tourist spend more than those from other countries, but getting them to your country, and letting them spend is an art in itself. We are joined by Roy Graff of +ChinaContact, and you can join us too. Here is our announcement, or you can register directly at our event page.

Integrity counts for Chinese firms - Janet Carmosky

2013-06-12T13:25:00.000+02:00

Should China put its hope on private companies, or rely on the old state-owned forces. For China veteran Janet Carmosky it is not important where a company gets its capital from, but integrity counts, she writes in Forbes. "Bankers never had the skills to evaluate commercial risk."

+Janet Carmosky:

China’s future is less about whether the enterprises who get capital are state owned or private enterprises. It’s about the integrity of the process through which they get that capital.

To be sure, numerous distortions, waste and illogic are among the results of central policy-driven lending by China’s banks to State Owned Enterprises. Still, assuming those polices were all revoked tomorrow, what would remain in place would still fail to support innovation, environmental stewardship, ethical practices in business, employee security, investment in R&D. Any of those warm fuzzy things people are supposed to think of when private enterprise is extolled.

Why? Because the bankers who allocate capital have never had to develop the skills and knowledge necessary to evaluate commercial risk. They do not know what level of expertise, analysis, or due diligence is needed to evaluate a loan application. Don’t let anyone tell you that lenders in China are doing deep and real commercial due diligence. That includes VC. The reality is that the political alignment of an enterprise – whether it’s State Owned, or the pet private project of a Party princeling – is first among all criteria for taking an equity stake.

Where patronage is the de facto criteria for lending, lenders and investors have no need or experience in identifying that elusive, powerful quality that Li Junheng calls Innovation DNA. China’s bankers and VC’s don’t have the right skill sets now. They could develop them. They could educate and hire and train people to have them. But until that happens, free market enthusiasts, don’t get too excited about big changes in China’s direction.

More in Forbes.

Janet Carmosky is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers' request form.

+China Weekly Hangout

The China Weekly Hangout discusses trends in China and focus on May 24 on the changing labor for with +Dee Lee (Inno), of the NGO Inno in Guangzhou, running a workers' hotline, mainly funded by big brands who want to keep an eye on working conditions. +Heleen Mees, NYU professor in New York, +Sam Xu and +Fons Tuinstra, of the China Speakers Bureau, ask him questions.

Chinese labor in Africa is the subject of the China Weekly Hangout on Thursday 13 June, following the story of over 124 Chinese gold miners, who got arrested in Ghana last week. Our expert panelist will be +Eric Olander of the China Africa Project, and you can read our announcement here. You can register for participation at our event page.

Meeting of Asian military: many words, no deaths - Wendell Minnick

2013-06-12T08:54:00.000+02:00

Wendell Minnick

Just before Xi Jinping and Barack Obama sat down for their California summit, the region's military representatives sat down in Singapore for the 12th Shangri-la Dialogues. Our defense analyst Wendell Minnick saw a classic Shakespeare act deploying, although with less drama than in the past, he writes in Defense News.

Wendell Minnick

Just as Shakespeare’s comedic play ends joyfully with multiple marriages and no deaths, this year’s Shangri-La lacked any real sense of crisis, minus cyber, as China and the US held their tongues over the recent Chinese military incursion into India, challenges over the Japanese-controlled Senkaku Islands in the East China Sea, disputes over exclusive economic zones (EEZs) and Beijing’s territorial disputes in the South China Sea.

Though tough talk emerged from some members of the Chinese delegation, the dialogue lacked the normal hawkish rhetoric from delegates of the People’s Liberation Army (PLA), although some comments did stretch credulity.

Lt. Gen. Qi Jianguo, deputy chief of the PLA General Staff, told attendees during his speech, “China has never taken foreign expansion and military conquering as a state policy.”

Qi made no mention of China’s 1950 invasion of Tibet, 1962 invasion of India, 1979 invasion of Vietnam or threats made to invade Taiwan. Chinese delegates did challenge allegations of wrongdoing made by the US and others, but refrained from the typical outbursts of the past.

“In general, they wanted to tone down in the wake of the Obama-Xi talk … so as to create a better atmosphere,” said Arthur Ding, a cross-strait military affairs expert at Taiwan’s National Chengchi University.

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 or fill in our speakers' request form.

+China Weekly Hangout

Negotiating trade agreements, was the theme of last week's China Weekly Hangout. A discussion on the way the EU and the US are dealing (of fail to deal) with China, with negotiation expert +Andrew Hupert from New York, Swiss lawyer +Nathan KAISER from Taipei and political analyst +Steve Barru from Denver, Colorado. Moderated by +Fons Tuinstra of the China Speakers Bureau.

Chinese labor in Africa is the subject of the China Weekly Hangout on Thursday 13 June, following the story of over 124 Chinese gold miners, who got arrested in Ghana last week. Our expert panelist will be +Eric Olander of the China Africa Project, and you can read our announcement here. You canregister for participation at our event page.

Related articles

Why China will try to ignored the RSA-scandal - Jeremy Goldkorn

2013-06-11T14:10:00.000+02:00

Jeremy Goldkorn

President Xi Jinping did not try to score points on the US cyber scandal around the NSA at the California summit. And the central government might try to ignored whistle-blower Edward Snowden in Hong Kong as much as possible, China watcher Jeremy Goldkorn explains in the LA Times.

The LA Times:

Beijing, however, has chosen not to capitalize on the U.S. government’s embarrassment. The tightly controlled state press on the mainland has barely mentioned the U.S. surveillance program and was silent Monday on Snowden’s flight to Hong Kong.

"The reason is that Beijing is doing all sorts of dodgy things ranging from surveillance to hacking. I don’t think they want to draw attention by being excessively critical of the United States,’" said +Jeremy Goldkorn, a Beijing media analyst.

The wording of the extradition treaty between the United States and Hong Kong gives Beijing veto right if "surrender of a fugitive would harm defense, foreign affairs or essential public interest or policy."

More in the LA Times.

Jeremy Goldkorn is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

The +China Weekly Hangout

Who is hacking who, the China Weekly Hangout asked on February 28. A discussion with security consultant +Mathew Hoover and reporter +Charlie Custer of +TechinAsia about the hacking issues, the Sino-US relations, including some useful information on what to worry about and what not. Moderation: +Fons Tuinstra of the China Speakers Bureau.

Chinese labor in Africa is the subject of the China Weekly Hangout on Thursday 13 June, following the story of over 124 Chinese gold miners, who got arrested in Ghana last week. Our expert panelist will be +Eric Olander of the China Africa Project, and you can read our announcement here. You can register for participation at our event page.

Upcoming hangouts: inbound and outbound China investments

2013-06-10T09:40:00.000+02:00

China's FIRST McDonald's (Photo credit: flickr.Marcus)

The participants in the most recent China Weekly Hangout, on negotiating trade agreement, came up with a few suggestions for upcoming hangouts. On the question what the real big issues were (after qualifying the 'wine fight' as smallish and symbolic) the panelist suggested both outbound Chinese investments (read 'Smithfield') and inbound foreign investments into China.

The coming weeks we will discuss first Chinese labor in Africa on Thursday 13 June with +Eric Olander , and What do Chinese tourists want, on Thursday 20 June, with +Roy Graff . After that we plan to do two different sessions on (1)Chinese investments and (2)foreign investments into China. You can already raise your virtual hand if you are interested to participate, or you can already suggest issues that fall in either category.

Watch here our most recent +China Weekly Hangout on negotiation trade agreements, including negotiating specialist +Andrew Hupert from New York, Swiss lawyer +Nathan KAISER from Taipei and political analyst +Steve Barru from Denver. Moderation by +Fons Tuinstra of the China Speakers Bureau from Lausanne.

Chinese labor in Africa - China Weekly Hangout

2013-06-10T08:35:00.000+02:00

English: Cathay, South China Tigress, in Africa (Photo credit: Wikipedia)

Ghana arrested last week at least 124 Chinese digging illegally for gold in their country. As so often, this story about China's involvement in Africa raised more questions than it gave answers. Reason enough for the +China Weekly Hangout it dive into the question of Chinese labor in Africa.
How do laborers get into China? Who is hiring them, of any? What can Chinese do better than Africans? And how is the relationship between Chinese and African labor?
We are happy to have veteran journalist +Eric Olander of the China Africa Projects in our hangout, to discuss his viewpoint on this flash-point in Africa.
Are you interested to join? Leave your comments here or at our event page. You can join the hangout on Thursday 13 June, at 10pm Beijing Time, 4pm CEST (Europe) and 10am EST (US/Canada).
During the event, you can also leave your comments and remarks at Google+, our YouTube channel and Twitter (ad hashtag #CWHCWH). You can watch the hangout in Thursday here or at our event page.

Earlier this week, the China in Africa Podcast analysed the Ghana-incident and how Western, Chinese media have reported about them, and how "lazy, shitty journalism" on each side gave a simplified edition of a pretty complicated story.

Hosted by +Eric Olander and Sino-African scholar Cobus van Staden the China in Africa Podcast is a weekly discussion on the people, culture and politics surrounding China's deepening engagement in Africa. Subscribe to the show on iTunes.

Earlier this year, on March 7, the China Weekly Hangout discussed with Eric Olander, together with journalist +Lara Farrar, the position of Chinese media in Africa. Moderation by +Fons Tuinstra, president of the China Speakers Bureau.

Quest for safe food drives up prices - Wei Gu/Shaun Rein

2013-06-06T13:38:00.003+02:00

Wei Gu

Affluent consumers in China spend 600 to 1,000 US dollar per week on groceries, hoping are safe, tells business analyst Shaun Rein WSJ wealth editor Wei Gu. Foreign brands are perceived to be safer, but if they do no deliver - like KFC did - they are in deep trouble.

Both Wei Gu and Shaun Rein are speaker at the China Speakers Bureau. Do you need them at your meeting or conference? Do get in touch or fill in our speakers' request form.

+China Weekly Hangout

Thousands of dead pigs floated earlier this year in the Huangpu river. The China Weekly Hangout discussed on March 21 food security with sustainability expert +Richard Brubaker, +Andrew Hupert and +Chris Brown on food security and how the ongoing problems will lead to massive food inflation. In the end we (both in China and outside) will have to pay the price for safe food.

Why Australia is dropping as a favorite tourist destination - Rupert Hoogewerf

2013-06-06T13:34:00.001+02:00

Australia has been dropping on the list of favorite destinations for Chinese tourists, reports the Brisbane Times. China Rich list composer Rupert Hoogewerf explains why other destinations like the France, Singapore, Italy, the UK, the US and Switzerland are today doing better.

The Brisbane Times:

France, the US, Singapore, Switzerland, the UK and Italy are all ahead of Australia, which has dropped from third to seventh place, falling out of the top three where it had been for three years.

Hurun Report chairman Rupert Hoogewerf told Fairfax Media that Australia has done "amazingly well" for Chinese tourists but it is now being overtaken in the luxury field.

"Ten years ago it was the preferred destination for Chinese tourists, full stop. But what's happened, as other countries have come up (such as the US and Switzerland), Australia has dropped down the list for luxury travel," said the Shanghai-based Mr Hoogewerf.

"I don't want to be slated by your tourist authorities, but my overall take is that I don't think the Australian tourist industry in general has put much effort into the luxury consumer. I have not seen any events or media (advertising and marketing) from Australia that is targeting the luxury consumer. Basically they have coasted very nicely. That is my personal opinion. It may not mean things are not happening, but they are on such a low-key profile compared to Singapore, which is all over China and targeting the top end spenders.

"Australia has got the product, but they are shy to shout it from the rooftop."

More in the Brisbane Times.

Rupert Hoogewerf is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

+China Weekly Hangout

What do Chinese tourists want, is the question the China Weekly Hangout will dive into at Thursday June 20, together with China travel expert of . You can read our announcement here, or register at our event page for participation.

Every week the +China Weekly Hangout discusses a timely subject on China. Moderator +Fons Tuinstra, president of the China Speakers Bureau, explains here the idea.

China companies look for a global status - Shaun Rein

2013-06-05T17:02:00.000+02:00

Shaun Rein

Pork manufacturer Shuanghui's purchase of Smithfield was the latest move of Chinese companies to enter a global economy, and they want to hedge a slower growth in their domestic markets, tells business analyst Shaun Rein AFP.

AFP:

Shaun Rein, managing director of China Market Research Group, identified two key drivers behind the phenomenon: Chinese companies' increasing appetite to be world players, combined with the pressures of a less robust domestic economy.

"A lot of Chinese companies have the ambition to become global brands," he said, giving Fosun as an example. "They're very aggressive, very ambitious and they want to grow fast.

"They're looking at getting access to the American and European markets in order to shield themselves from what is definitely a slowing Chinese economy," he added...

China turned in its weakest economic performance in 13 years in 2012, with growth sliding to 7.8 percent for the year.

Acquisitions of foreign brands and technology can also pay important dividends domestically with Chinese consumers fed up by food, quality and safety scandals.

Earlier this year, China was shocked by the spectacle of more than 16,000 dead pigs recovered from parts of Shanghai's main river, one of a long line of food controversies.

"It's about bringing American pork, trusted American pork, to the Chinese consumer," Rein said of the Smithfield acquisition. "Chinese are petrified of domestic-raised pork, pigs and cattle because of quality control concerns."

More in AFP.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

+China Weekly Hangout

Internet companies are one of the industrial groups, looking increasingly to enter a global market. The +China Weekly Hangout discussed in November 2012 their worldwide ambitions with with +Steven Millward of +TechinAsia, and +Fons Tuinstra of the China Speakers Bureau about Baidu, Tencent, Alibaba and other Chinese internet companies exploring the world. Main conclusion: most larger companies are positioning themselves in Southeast Asia.

Coming Thursday June 6, the China Weekly Hangout will discuss the art of negotiating trade negotiations, with our in-house negotiation expert of as one of the guests. You can read our announcement here, or register at our event page for action.

KFC: losing grip on its China market - Shaun Rein

2013-06-04T15:14:00.001+02:00

Shaun Rein

The bird flu and food scandals did not help KFC to continue their success story in China, their largest market. But also in terms of their offerings KFC is losing grip on the market, tells business analyst Shaun Rein in Business Week.

Business Week:

Now KFC is in danger of losing what made it distinctive by loading up its menu with Chinese dishes. Two of three main items on KFC’s dinner menu are rice-based, including spicy prawn rice and beef rice. The third is a mushroom-chicken burger. Patrons craving something sweet can order sugared egg tarts. “You want to localize but also maintain your core brand DNA,” says Shaun Rein, Shanghai-based managing director of China Market Research Group. “The name of the game 10 years ago was localizing, but at this stage consumers are already sophisticated.”

More in Business Week.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

+China Weekly Hangout

Bird flu was just one of those nightmare scenario's hurting KFC. The China Weekly Hangout discussed last April the latest flu outbreak in China with flu expert Harm Kiezebrink from Beijing, HKU-lecturer +Paul Fox from Hong Kong and CEIBS adjunct professor +Richard Brubaker from Shanghai. We try to figure out what is happening with N7H9, and what possible scenario's can develop. And we discuss what the Chinese government has learn from SARS, now ten years ago. Coming Thursday June 6, the China Weekly Hangout will discuss the art of negotiating trade negotiations, with our in-house negotiation expert +Andrew Hupert of +China Solved as one of the guests. You can read our announcement here, or register at our event page for action.

Chinese luxury travelers: biggest spenders of the world - Rupert Hoogewerf

2013-06-04T15:07:00.000+02:00

Rupert Hoogewerf

What many assumed, has this week been verified by the Hurun China Rich List, founded by Rupert Hoogewerf: Chinese travelers spend more during their trips than tourists of any other country on luxury goods. Negative: they travel less than in the past, write a range of publications.

Global Times:

Chinese tourism consumption in 2012 averaged 875 euros ($1,139) per trip, making China the worldwide leader for the third consecutive year, the Shanghai-based Hurun Research Institute announced Monday.

Compared to tourists from other nations, Chinese travelers spent the most per trip, accounting for 24 percent of overall global tourism consumption in 2012.

Russian and Japanese tourists ranked second and third, respectively, according to The Chinese Luxury Traveler White Paper 2013, issued jointly by Hurun and International Luxury Travel Market Asia.

"Chinese luxury travelers have played a very important role in the global tourism industry," said Rupert Hoogewerf, chairman and chief researcher of the Hurun Report.

Data from the China Tourism Academy indicated that a total of 83.1 million Chinese people traveled abroad in 2012, an 18.4 percent increase from 2011. This makes China the biggest outbound tourism market in the world.

Chinese tourists travel slight less than in past years, writes the Daily Travel News. But when they travel, Europe has their preference.

Chinese luxury travelers are going overseas less, down to an average 2.8 trips a year. The frequency of travel is slightly higher in First Tier Cities. The internet and magazines are the main sources of information when deciding travel destinations. Chinese luxury travelers are going overseas in smaller groups, most often in a group of three to ten people. Expenditure on hotel rooms is higher than the global average and Chinese tourists are the largest travelling nationality in the world for the third year running - and have widened the gap with second place... According to Hurun Report’s survey on ILTM’s domestic travel agency database, most package tours last for 9.8 days on average and most consist of between three to ten travelers (53%). 43% of travel groups contain over ten individuals. Trips overseas last for an average of 7.4 days with 63% in the five to eight day travel time bracket. On each overseas trip, Chinese travelers visit one or two countries and the preferred destination is France, followed by the US. Family, friends, and the entrepreneurs themselves control the booking process. The deciding travel factors are shopping, culture, cuisine, and finally business potential. 43% of Chinese travelers spend over US$5,000 (excluding flights) per trip, and 11% of them spend over US$10,000.

Tour group sizes are generally smaller for luxury travelers who are spending over US$10,000 (excluding flights). On average there are 7.1 people per group and only 16% of tour groups are larger than ten travelers. For big spending travelers, trips are usually longer, all over five days and half over eight days, with the average trip time being 9.6 days. Most fly business class and inChina prefer Air Chinaand internationally Singapore Airlines. Their preferred destination is France, followed by Switzerland. Most travel with family but also with alumni associations and private clubs.

Rupert Hoogewerf is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

+China Weekly Hangout

What do Chinese tourists want, is the question the China Weekly Hangout will dive into at Thursday June 20, together with China travel expert +Roy Graff of +ChinaContact. You can read our announcement here, or register at our event page for participation.

A growing number of wealthy Chinese not only travel, but leave their country. The China Weekly Hangout discussed the issue in September 2012 with lawyer +Meixian Li, blogger +Isaac Mao and business professor +Richard Brubaker. Moderation by president of the China Speakers Bureau, +Fons Tuinstra.

Best of Britain? Education - Rupert Hoogewerf

2013-06-03T17:35:00.000+02:00

Rupert Hoogewerf

Of all the assets Britain can provide top Chinese business people, education has the largest personal appeal, tells China's Rich list producer Rupert Hoogewerf to The Standard.

The Standard:

The London education market in particular “has more personal appeal to top Chinese business people than almost anything else in Britain”, according to China Rich List compiler Rupert Hoogewerf. St Paul’s, Westminster and Harrow don’t need to market themselves to China — there is a booming business for organisations such as Old Etonian William Vanbergen’s Shanghai-headquartered BE Education, helping parents get their children into top public schools.

Now London state schools are starting to seize the same opportunities. St Mary Magdalene in Islington, an academy founded in 2005, has an established relationship with a school in Chongqing. In September it will take five students from a new partner school in Beijing to study for the International Baccalaureate (IB). The Chinese parents will pay for their child’s bed and board with families of St Mary’s pupils in London. St Mary’s is simultaneously helping the Beijing school introduce the IB programme.

More in the Standard. Rupert Hoogewerf is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

China Weekly Hangout
Is education a gold mine or a black hole, for the institutions or for the students and their parents, the +China Weekly Hangout wondered in February of this year. +Andrew Hupert of +China Solved , formerly working for the NYU Shanghai campus and +Paul Fox, lecturer at the HKU School of Professional and Continuing Education join +Fons Tuinstra, president of the China Speakers Bureau.

On Thursday 6 June the discusses the art of making trade agreements with China. Your can read our announcement here, and register here for participation.

Why Shuanghui's Smithfield purchase is a win-win deal - Shaun Rein

2013-06-03T14:41:00.000+02:00

Shaun Rein

Despite legitimate concerns, like quality control and food inflation, the purchase of America's largest meat producer Smithfield by China's Shuanghui is a deal that can only deliver winners, says Shanghai-based business analyst Shaun Rein in the New York Times.

+Shaun Rein:

There is, however, a difference between legitimate concerns and overreacting to every investment in The United States by Chinese companies. Most acquisitions are a net positive for America, both for preserving jobs and creating opportunities to sell American-made products into the still-growing Chinese market.

More Chinese companies are looking to expand overseas through acquisitions. According to a survey by Capital A, Chinese firms invested $37.8 billion overseas in 2012. My firm, The China Market Research Group, expects investments to grow by 20 percent annually over the next five years

Unlike many Japanese firms in the 1980s that gutted workforces and imposed glass ceilings for U.S. employees, Chinese companies mostly keep management teams intact as Wanda has done with AMC Theaters and Lenovo did with the IBM ThinkPad division. They are looking to gain know-how to bring their practices to international standards. There is a public confidence crisis in China in the safety of Chinese brands, and as a result Chinese brands are desperate to learn from American ones.

More in The New York Times.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

The China Weekly Hangout

The Shuanghui/Smitfield deal is expected to get easier clearance from US authorities, because Shuanghui is a private company, not state-owned. But it would not be the first private Chinese company to run into trouble with US authorities. The China Weekly Hangout discussed the case of Huawei in October 2012 with +David Wolf, author of Making the Connection, a book about China's telecom giant Huawei, and +Andrew Hupert of +China Solved , specialist in international conflict resolution. Both discuss the future of Huwei, moderated by +Fons Tuinstra, president of the China Speakers Bureau.the case of Huawei, after the company ran into trouble in the US.

On Thursday 6 June the +China Weekly Hangout discusses the art of making trade agreements with China. Your can read our announcement here, and register here for participation.

What do Chinese tourists want (2) - China Weekly Hangout

2013-06-03T10:50:00.001+02:00

Chinese Food in Minutes (Photo credit: Wikipedia)

The +China Weekly Hangout will focus on 20 June on what Chinese tourists want, after our earlier effort collapse in a massive internet infarct. What can countries do to attract those tourists who spend often per head more than the tourists of any other country?
Getting a casino in place, Chinese food and luxury shopping palaces are basics, but how can your country really attract those high-spenders. And what do they spend their money on. Who hope to have +Roy Graff of +ChinaContact as our main guest, who will join us from Israel.

The China Weekly Hangout will be held on 20 June, 10pm Beijing Time, 4pm CEST (Europe) and 10am EST (US/Canada), so this time our friends in the America's can also join.

You can register for participation or watch the hangout at our event page, or at this page. Until the event starts, you can leave your questions and remarks at this page or at the event page. During the event you can use also Twitter, our YouTube channel and Google+ (add hashtag #CWHCWH).

Last month the China Weekly Hangout discussed (among others) the changing labor force in China, with +Dee Lee (Inno) of Inno in Guangzhou, +Heleen Mees of NYU and entrepreneur +Sam Xu.

Negotiating trade agreements - China Weekly Hangout

2013-05-31T15:36:00.000+02:00

Premier Li Keqiang (Photo credit: Wikipedia)

Negotiating deals on any level with China is a challenge, as the EU discovered last week. China premier Li Keqiang circumvented effectively efforts by European president Barroso to take a tough line on trade with China. Planned tariffs on solar and telecom equipment met resistance from EU members and Switzerland got its first free trade agreement, giving it an advantage on EU countries. And the EU Commission was left empty-handed in the eyes of the Chinese.
Comning week president Xi Jinping will meet his US counterpart Barack Obama, and can prove he can do a better job than the Europeans.
The +China Weekly Hangout will discuss on June 6 negotiation tactics between countries with +Andrew Hupert of +China Solved, an expert on Chinese negotiations and conflict resolutions.
What can you do to prepare for negotiations with China? What is going right, and what is going wrong.

Join us at Thursday June 6, 10pm Beijing Time, 4CEST PM and 10 AM EST. You can ask your questions or leave remarks here until the event starts, or at our event page, where you can also register for participation.

You can watch earlier sessions here.

In April, the China Weekly Hangout discussed political change in the past decade. A meeting with +Steve Barru, and +Fons Tuinstra of the China Speakers Bureau discuss what they expect from the political change in the upcoming ten years under Xi Jinping; agenda: Hu Jintao, austerity, poor-rich divide, and more.

Shuanghui looks for upgrade in Smithfield deal - Ben Cavender

2013-05-31T13:44:00.000+02:00

Ben Cavender

A tainted image because of a food scandal is one of the reasons China's largest pork producer Shuanghui bought America's largest meat processor Smithfield for US$4.7bn in cash. Shuanghui is trying to upgrade both management and technology, tells business analyst Ben Cavender in the Wall Street Journal.

The Wall Street Journal:

Two years ago Mr. Wan and other Shuanghui executives scrambled to contain fallout from the presence of chemically tainted meat products. He took a prominent role in containing the scandal, apologizing before the public and describing to local media how he arranged to receive daily quarantine reports.

That episode could present a public-relations headache amid broader questions about Chinese food safety, said Ben Cavender, a senior analyst at China Market Research Group, adding that U.S. consumers may want the combined company to demonstrate tight safety standards. But the deal could also help Shuanghui improve its own standards, he said.

"Chinese companies are looking for management prowess and technology upgrades when they make acquisitions," Mr. Cavender said.

The deal would give Shuanghui a much greater foreign presence. In addition to Smithfield's position in the U.S., the company sells meat in Poland, Romania and the U.K.

More in the Wall Street Journal.

Ben Cavender is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

+China Weekly Hangout
Thousands of dead pigs, floating earlier this year in Shanghai's Huangpu river, illustrated how badly organized China's food chains are. In the China Weekly Hangout +Richard Brubaker, +Andrew Hupert and +Chris Brown discussed food security and how the ongoing problems will lead to massive food inflation. Moderation by +Fons Tuinstra of the China Speakers Bureau.

Where Mary Meeker is wrong on China - Marc van der Chijs

2013-05-31T13:41:00.002+02:00

Marc van der Chijs

Cheers from VC Marc van der Chijs for Mary Meeker, who gave a lot of attention to China in her latest "The State of the Internet". She underestimates the size of China's internet companies by using under-reporting figures from Comscore, he writes on his weblog.

+Marc van der Chijs:

Mary Meeker makes a mistake by saying that the top 8 of biggest Global Internet Properties are all US companies. The data they use (based on Comscore) suggest that #9 (Tencent) and #10 (Baidu) both have less than 300 million unique monthly visitors. This is far below their real user numbers, the Comscore figures for China are always way too low. It should have been clear from some of her other charts that her figures are too low, for example WeChat (a Tencent app that was launched 18 months ago) already has 400 million users. WeChat is just one of many of Tencent’s services. Later she mentions Sina Weibo with 530 million users, which did not even make it in the top 10. Not a big deal, but in my opinion Chinese companies should be ranked much higher in the Global Internet Properties list.

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 or fill in our speakers' request form.

+China Weekly Hangout

One of the reasons China's labor force is changing, is because people are better connected than ever. Workers can complain anonymous via chat rooms in QQ, explained +Dee Lee (Inno) of Inno, a Guangzhou-based hotline, who joined the China Weekly Hangout last week. Heleen Mees, NYU professor in New York, entrepreneur +Sam Xu and +Fons Tuinstra , of the China Speakers Bureau, ask him questions.

Cautious optimistic about HK retail growth - Shaun Rein

2013-05-30T15:33:00.003+02:00

Hong Kong retail is booming, as mainland shoppers in first-tier cities saw wages going up 12% in 2013, says business analyst Shaun Rein on CNBC. But consumer confidence is still weak, especially middle-class men who are fearing wage stagnation as investments drop.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

China Weekly Hangout

More insecurity is affecting consumer confidence, and the recent bird flu threat did not help. The China Weekly Hangout discussed in April the status of the bird flu in China with flu expert Harm Kiezebrink from Beijing, HKU-lecturer +Paul Fox from Hong Kong and CEIBS adjunct professor +Richard Brubaker from Shanghai. We try to figure out what is happening with N7H9, and what possible scenario's can develop. And we discuss what the Chinese government has learn from SARS, now ten years ago. Moderation by +Fons Tuinstra of the China Speakers Bureau.

Bird flu damages business - Shaun Rein

2013-05-29T14:38:00.001+02:00

Shaun Rein

Maybe the recent bird flu was not as bad as SARS ten years ago, but the fear for a pandemic has certainly damaged business in China, tells business analyst Shaun Rein in NPR's Marketplace.

+NPR's Marketplace:

+Shaun Rein, with the China Market Research Group who lives in Shanghai, says it's becoming common for businessmen to cancel meetings in the area.

"I've had a lot of meeting that were canceled in Shanghai -- people decided to have them in Europe instead or just delay because of the fears," Rein says. "Nobody's really sure how the Avian flu is transmitted, so there are a lot of fears going on in China."

Rein says these fears are causing more and more businessmen -- both Chinese and expats -- to wonder if the cost of doing business is worth it. "The China head of a Fortune 500 firm, [whose] firm is making about 30 percent of their overall revenue in China [is] thinking about leaving," says Rein. "He loves the business challenges, he loves the compensation, but it's really affecting the quality of life for his family."

Rein adds that wealthy Chinese businessmen are also buying homes stateside because of the same concerns.

More in NPR's Marketplace.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

China +China Weekly Hangout
Pollution is one other reason business is under attack in China. The China Weekly Hangout discussed January 24 with +Richard Brubaker of AllRoadsLeadtoChina and CEIBS the rampant pollution in China. Is it getting worse, and what can be done? Moderator: +Fons Tuinstra of the China Speakers Bureau.

On Thursday 30 May the China Weekly Hangout will turn to tourism and will ask “What do Chinese tourists want?”. Participation from the UK, Singapore, Switzerland and New Zealand is already planned. You can read our latest announcement here, or register for participation here. A full overview of our hangout-channel is here.

The lagging financial literacy - Michael Justin Lee

2013-05-29T14:31:00.000+02:00

Michael Justin Lee

US youngsters are lagging more in financial literacy than those in China, Michael Justin Lee, Lecturer at the Center for East Asian Studies at the University of Maryland discovered when he dived into a comparative study by VISA International. "A crappy return on investment," he writes in ChinaUSFocus.

Michael Justin Lee:

Visa’s overall conclusion about the United States notwithstanding, there was a very disturbing sub-conclusion. On the critical question of whether our college aged people are prepared to manage their own money, the US ranked an unbelievably abysmal twenty-seventh, ahead only of Bosnia!

This is far more important than the fourth place overall finish. China’s middle of the pack ranking isn’t terrible considering the early state of their financial markets. But I shudder to think what awaits us in the future if our young people can’t do any better than second to last.

How has it come to this? There couldn’t be any country which has dedicated greater public and private resources to developing financial literacy than the United States. This is what we in the financial profession call a crappy return on investment.

More in ChinaUSFocus.

Michael Justin Lee is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

+China Weekly Hangout

Is investing in education a gold mine or a black hole, the China Weekly Hangout wondered on February 7, with +Andrew Hupert, formerly working for the NYU Shanghai campus and +Paul Fox, lecturer at the HKU School of Professional and Continuing Education. Moderation: +Fons Tuinstra, president of the China Speakers Bureau.

On Thursday 30 May the China Weekly Hangout will turn to tourism and will ask "What do Chinese tourists want?". Participation from the UK, Singapore, Switzerland and New Zealand is already planned. You can read our latest announcement here, or register for participation here. A full overview of our hangout-channel is here.

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