Ged Carroll

Category: china | 中國 | 중국 | 中華

Ni hao – this category features any blog posts that relate to the People’s Republic of China, the Chinese communist party, Chinese citizens, consumer behaviour, business, and Chinese business abroad.

It is likely the post will also in other categories too.  For example a post about Tong Ren Tang might end up in the business section as well. Inevitably everything is inherently political in nature. At the moment, I don’t take suggestions for subject areas or comments on content for this category, it just isn’t worth the hassle.

Why have posts on China? I have been involved in projects there and had Chinese clients. China has some interesting things happening in art, advertising, architecture, design and manufacturing. I have managed to experience some great and not so great aspects of the country and its businesses.

Opinions have been managed by the omnipresent party and this has affected consumer behaviour. Lotte was boycotted and harassed out of the country. Toyota and Honda cars occasionally go through damage by consumer action during particularly high tensions with Japan.

I put stuff here to allow readers to make up their own  minds about the PRC. The size of the place makes things complicated and the only constants are change, death, taxes and the party. Things get even more complicated on the global stage.

The unique nature of the Chinese internet and sheltered business sectors means that interesting Galapagos syndrome type things happen.

I have separate sections for Taiwan and Hong Kong, for posts that are specific to them.

  • Living with the iPhone 12 Pro Max

    iPhone 12 Pro Max transition

    I moved to an Apple iPhone 12 Pro Max from an Apple iPhone 11 Pro Max. That’s an important  factor to bear in mind when one sees phone comparisons. Secondly, I don’t earn my living doing phone reviews, so my reactions are likely to be less dramatic than a professional phone reviewer. Instead, I am trying to reflect a view of what its like to live with the device. 

    Smartphones overall

    You would have to look pretty hard to find a dreadful premium or mid-range smartphone nowadays. Some of the lower end Motorolas are sluggish performers, have the build quality of an early Samsung Galaxy and a mic that cuts in and out. But for the average iPhone user, a phone that is five years old is still a cracking phone, that could go another few years with a replacement battery. 

    The cameras are more than adequate for snapshots or document scanning, but no amount of software will make up for the quality of the lens in a smartphone versus a semi-professional photographers camera. And for most people, that’s enough. Performance has reduced to incremental improvements in real world performance. And in this respect smartphones mirror personal computers; as the huge perceived performance gains of the early computers flattened out. 

    I no longer need a Mophie Juice Pack case to make the iPhone last through a work day like I did with the iPhone 3GS. Although for long trips away from my desk, I still a power pack and a cable in my bag. This is as much about having the reassurance of knowing that I can run down my battery with lots of Maps usage if I have to, rather than a real need. Increased battery life is partly a function of screen size. The larger the screen, the larger the battery. Device screen sizes have grown over the years. Secondly, chip design and system software have focused on power consumption as part of a decade plus long focus on computing power per watt. 

    I still miss the keyboard and form-factor of my old Nokia E90; despite its flaky Symbian software. But I no longer miss its superior battery life, or the ability to remove the battery and replace it with fully charged spare. 

    Out of the box

    All of the iPhone 12 models come in smaller packaging than previous devices. The primary reason for this is Apple no longer supplies a USB charger. The excuse that Apple provided was that it was environmentally friendly. The problem with this is there are some awfully unsafe USB chargers available online as an alternative. The second thing that was missing from the box was a set of Apple wired earbuds. Again this was put down to being environmentally friendly by Apple. Though you could also come to two less flattering conclusions:

    • Apple is converting an insignificant amount of Android users, but only converting existing Apple iPhone customers. So headphones with a Lightning connector wasn’t needed and Apple could save on costs
    • It was a cynical ploy by Apple to drive AirPod wireless headphone sales even higher

    I can understand why Chinese netizens considered both moves to Apple shortchanging customers. I agree with them.

    China

    It is also interesting to note that all the main live-streaming platforms in China simultaneously decided to cancel live-streaming of the iPhone 12 series launch.

    Of course the Chinese government / Communist Party of China had nothing to do in coordinating this – honest….

    Handset design

    When you take the iPhone 12 Pro Max handset out of the box, you immediately notice its size and weight.  It has steep stainless steel sides like an iPhone 4 on steroids. 

    Apple iPhone 12 Pro Max
    iPhone 12 Pro Max view from the back of the phone

    Usually the heft of a premium phone feels reassuring. But at first, holding the phone was a dissonant experience. There were a few reasons for this:

    The change in design language from smooth round edges on handsets from the iPhone 6 onwards, to a flat edge of the iPhone 4 and 5.

    It was the first time that an iPhone model has become thicker than the previous generation of iPhone.

    The change in design with its thicker flat sides has little difference in putting on a protective case, but removing the case is noticeably harder.

    After three days or so usage, the iPhone 12 felt perfectly normal as I got used to it.

    Camera

    As I said at the outset to this post, this like other modern premium smartphones, are good at taking snapshots. The main difference between my iPhone 11 Max Pro and iPhone 12 Max Pro was a slight increase in optical magnification. The rest of the mild photographic improvements were available in the iOS 14 software for both new and older iPhones.

    Networking

    The big selling point for Apple on the iPhone 12 Pro Max is its ability use 5G networks. The problem is that for consumers 5G doesn’t have a compelling killer application at the moment.

    In that respect, it reminds me a lot of my time working with Cap Gemini as a client when video calling and Quibi like sports and entertainment clips were thought to be the killer app for 3G.

    The reality is that it took wi-fi and 4G made video to make calls work, even then the product isn’t perfect. Shorter sellable video content is still looking for a market. 5G does have industrial niche market opportunities.  Secondly, 5G network rollout means that there will be probably three generations of future iPhones before the 5G wireless function becomes useful. I still live in a neighbourhood in central London where I often lose 4G coverage. 5G will require many more cell sites to provide the same level of coverage. 

    Cellphone reception seems to be better; I don’t know if this is down to the handset or my carrier building out their infrastructure further during the lockdown.

    My house has never had great cellphone reception during my time living here. It backs on to a railway line with overhead electrification and only had windows the side facing away from the railway. Yet I am now seeing two bars of signal in parts of the house where I previously would only have had Wi-Fi or a single bar of 3G. 

    Conclusion

    Unsurprisingly, the iPhone 12 Pro Max is an accomplished handset. It offers good battery life, responsive performance, a great screen, a good camera and is well made. But there is insufficient reason to upgrade if you have an iPhone made in the last three years. You already have a good well made phone. It has a good camera and will run the latest version of iOS.

    If your battery no longer holds the charge, the way it once did, Apple offers a service to replace the battery at a very reasonable cost.

    More design related posts here.

    More information and selected reviews

    iPhone 12 launching without earbuds or wall chargers is compared to eating without chopsticks in China | South China Morning Post 

    Shenzhen/Huawei: the other Bay Area | Financial Times – The impression of military manoeuvres by alternative means was reinforced by Tencent, another Shenzhen resident. It was among big Chinese social and video platforms including iQiyi and Weibo, that simultaneously cancelled the livecast of Apple’s iPhone 12 launch

    Kibbles & Bytes #1122: Apple Releases Four iPhone 12 Models and the HomePod mini – Don nails the assessment of 5G in the latest edition of his newsletter.

    Daring Fireball: The iPhone 12 and iPhone 12 Pro – interesting thoughts on the iPhone 12s. What Gruber doesn’t touch on is the radio improvements, particularly in 4G

  • Plastic surgery hack + more

    Hackers threaten to leak plastic surgery pictures – BBC News – this follows on from the hack on Finnish mental health services. Given the link between plastic surgery and self image; black hat hackers have a lot of sustained leverage. More security related posts here.

    Regulators tell Jack Ma’s Ant Group to rectify five problems – the five areas included: Ant’s inadequate governance; regulatory negligence; unlawful profit-seeking; monopolistic practices and; infringement of consumer rights, said China’s central bank vice governor Pan Gongsheng. China orders Ant Group to rein in unfettered expansion as regulators put up fences around financial risks | South China Morning Post – Ant must return to its origins in online payments and prohibit irregular competition, protect customers’ privacy in operating its personal credit rating business, establish a financial holding company to manage its businesses, rectify any irregularities in its insurance, wealth management and credit businesses, and run its asset-backed securities business in accordance with regulations, the People’s Bank of China’s deputy governor Pan Gongsheng said in a statement on Sunday.

    Beijing launches antitrust investigation into Alibaba | FT – of course, its not political.

    Who’s behind Marcus Rashford? – UnHerd – interesting profile of Roc Nation’s UK arm

    SolarWinds Adviser Warned of Lax Security Years Before Hack – Bloomberg – I’d be surprised if there isn’t shareholder class action suits now

    The OnlyFans revolution – The Face – Selena suggests we ​“talk about OF in a way that doesn’t glamourise the economics of the operation”. Instead, we need a more ​“nuanced conversation about the nuts and bolts of what the actual labour looks like. We aren’t seeing the injustices. It’s either focused on our trauma or on the glamorous hyperbolic examples, while most of us are somewhere in the middle.”  There are many sides to running an OnlyFans that are less visible, including work that goes into maintaining a profile and the emotional labour involved in keeping up with fans. Historically, sex workers basically act as ad hoc therapists to their clients – it’s said to come with the territory, from escorting to camming to BDSM. And the ​“girlfriend experience” applies here too. A key part of the site’s success is one-to-one connection – often creators’ bios will explicitly state they talk with all their followers – for the right brands there is an opportunity for influence campaigns

    North American Semiconductor Equipment Industry Posts November 2020 Billings – Semiconductor Digest – generally a good sign for the global economic outlook. A dip in semiconductor equipment is usually the canary in the coal mine for global economic time.

  • Private sector control + more things

    China’s Xi Ramps Up Control of Private Sector. ‘We Have No Choice but to Follow the Party.’ – WSJ – In some cases, it is taking charge entirely of companies it regards as undisciplined, absorbing them into state-owned enterprises. – Push driven by a concern over the private sector business owners being unpredictable and not trusted. They think a centrally planned complex economy is the way forward; with the private sector playing a subservient role at best. This view has been strengthened by the state engineered swift recovery from COVID-19. I presume that they consider that China’s place in global supply chains, big data and machine learning will solve a lot of the problems that bedevilled previous centralised economic planning systems like what happened in the Soviet Union. More economics related content here.

    Party Committees See Rising Prevalence in Private Sector | Marco Polo – China clamping down on private sector

    Google AMP gets a shock to its system as advisor quits, lawsuit claims foul play • The Register 

    Quick Thoughts on the Russia Hack – Lawfare  – interesting post on the SolarWind hack based attacks

    North American Semiconductor Equipment Industry Posts November 2020 Billings – Semiconductor Digest – this looks good in terms of world economic growth

    China-Europe Trade Forum Canceled After China Sought to Bar Critics – WSJ – Officials familiar with the exchange say the two people Beijing wanted to exclude from this year’s virtual event were Reinhard Bütikofer, the European Parliament’s chairman of the EU-China caucus who has publicly criticized Beijing over Hong Kong and its treatment of the Uighur minority; and Mikko Huotari, the head of Merics, a German think tank critical of the Chinese Communist Party. – China is depriving itself of unvarnished information about how it is viewed. A recipe for miscalculation in policymaking. Mainland Chinese contacts fail to understand why they don’t seem to have friendly relations with other nations anymore, despite Chinese achievements

    Huawei, 5G, and the Man Who Conquered Noise | WIRED – Steven Levy explains Erdal Arikan’s breakthrough in information theory well. What’s interesting is how the west has abandoned long term research projects. Arikan took 20 years for his breakthrough. In an American university you wouldn’t get, or maintain tenure doing that

    ‘Made in Hong Kong’ prestige provides springboard for retailers Watsons, Sa Sa to find success in Greater Bay Area | South China Morning Post – ‘Made in Hong Kong’ prestige provides springboard for retailers Watsons, Sa Sa to find success in Greater Bay Area. Well-known Hong Kong retailers are aggressively expanding in the bay area, where the prestige of their brands makes them a hit with mainland consumers. The city’s retail sector has been devastated by the coronavirus keeping deep-pocketed mainland tourists away – if true, I don’t seeing it being a defensible differentiation in the medium to long term

    MindGeek: the secretive owner of Pornhub and RedTube | Financial Times – Porn pioneered elements of the global online advertising industry such as targeted advertising, pay-per-click and email marketing and is today a substantial part of the internet economy

    Gen Z: the rising power in Chinese market and their 7 digital lifestyles – ChoZan – not the greatest guide to life stage trends in China

  • Endeavour Christmas card and other things that caught my eye this week

    Creative agency Endeavour sent out the first Christmas card that I received. This year they focused on content rather than design with everything that you need Christmas 2020 – Endeavour.

    There was guidance on how to make paper Christmas trees including a green PDF that you can print out if you don’t like the snow white look of unprinted paper and a Spotify playlist.

    The Financial Times have put together a series article looking at The Future of the City. The City in question being the London’s international financial services sector, whose traditional home is the City of London – think Wall Street in New York, or Central in Hong Kong. I found How London grew into a financial powerhouse particularly informative and all the articles are chock full of charts.

    A relatively modern Carroll family Christmas tradition has been my Dad and I watching the BBC adaptations of Tinker, Tailor, Soldier, Spy and Smiley’s People. It will carry extra weight this year due to social distancing and the recent death of John Le Carre. My Dad read his books whilst working shifts during the late 1960s and early 1970s. He used to buy books second hand from a florrid looking book dealer in the local market. I in turn, read my Dad’s books (Len Deighton, Alistair Maclean, Hammond Innes, Robert Ludlum and John Le Carre) as I went through the early years of secondary school. Le Carre was the only one of these authors that I decided to read more than once.

    This time, we’ll both be watching them on Blu-Ray whilst keeping the video open on FaceTime to discuss it as we go along.

    It doesn’t get more 1990s than this. A skateboarder reading his self-authored poetry. Mike Vallely a professional skateboarder. If my memory serves me right, Vallely rode for Powell Peralta (Bones Brigade) factory team a few separate times during his career. In this video he gives the poetry reading in a LA skate shop back in 1996.

    https://youtu.be/QTr2Mvz873c

    The Luxury Society held a panel in Shanghai talking about luxury brands and the digital behaviour of the Chinese consumer. More luxury related content here.

  • Caribbean phone networks + more

    Revealed: China suspected of spying on Americans via Caribbean phone networks | US news | The Guardian – China is alleged to have used Caribbean phone networks to conduct its surveillance. I’d imagine that they aren’t the only people to do this – At the heart of the allegations are claims that China, using a state-controlled mobile phone operator, is directing signalling messages to US subscribers, usually while they are travelling abroad. Signalling messages are commands that are sent by a telecoms operators across the global network, unbeknownst to a mobile phone user. They allow operators to locate mobile phones, connect mobile phone users to one another, and assess roaming charges. But some signalling messages can be used for illegitimate purposes, such as tracking, monitoring, or intercepting communications.– always use a VPN when roaming whether it’s Caribbean phone networks or elsewhere. We don’t know which Caribbean phone networks are vulnerable, could it be Digicel? More security related posts here.

    Robinhood faces legal action over ‘gamification’ of investing | FT – not terribly surprised by this. I wouldn’t be surprised if they were adopting B.J. Fogg’s dark principles in his work Persuasive Technology

    LS Keynote Shanghai 2020: The Digital Transformation of International Brands in China – studies by Boston Consulting Group for the luxury sector showed that 93 per cent of purchases in China are influenced by digital touchpoints – which is significantly higher compared to the 60 per cent observed in the global market. This makes developing digital offerings in China more significant for luxury brands. On top of its external transformation, it is also crucial for brands to establish an effective organisational structure and infrastructure internally. When it comes to creating omnichannel experiences, the development of online channels should be done so in tandem with offline touchpoints, opined Liang. Any projects that straddle online and offline must be supported by frontline staff – something he sees as a key challenge for luxury brands today – interesting stuff from Luxury Society

    Facebook says French and Russian disinformation trolls spar in Africa | Financial Times – this is fascinating. It is interesting that western agencies are trying to beat Russia at its own game

    To the moon and back, Chinese R&D is leaving the US behind | Financial Times – Once upon a time, the US government invested heavily in research. US federal R&D spending surged after the Soviets launched Sputnik, peaking in 1965 at 11.7 per cent of federal spending and at 2.2 per cent of gross domestic product. Frontier discoveries from that time led to the internet and GPS, the global navigation system. But in the decades since putting a person on the moon, US government investment in ideas has waned. In constant dollars, Nasa spending had fallen by more than half by the early 1970s; it has been flat ever since. By 2019, total federal R&D spend constituted just 2.8 per cent of all federal spending and just 0.6 per cent of GDP — the lowest since the start of the cold war.

    What to do when the UN human rights office may have violated human rights? | South China Morning Post – UN shopped human rights activists to China, exposing them to retribution

    US orders emergency action after huge cyber security breach | Financial Times – Hundreds of thousands of organisations around the world use SolarWinds’ Orion platform. The US department of Homeland Security’s cyber security arm ordered all federal agencies to disconnect from the platform, which is used by IT departments to monitor and manage their networks and systems. FireEye, a leading cyber security company that said it had fallen victim to the hack last week, said it had already found “numerous” other victims including “government, consulting, technology, telecom and extractive entities in North America, Europe, Asia and the Middle East”.

    ‘This Feels Uncomfortable’: Nike Tackles Racism In Japan – observers criticised Nike for misunderstanding or disrespecting its host country — as if racial prejudice were somehow a component of Japanese culture that should not be challenged. The issue is more complex than both the content and the censure suggest, but the reaction was a reminder that Japan is still less accustomed to ‘purpose-driven’ brand work than many economically advanced markets. It also underscored that extreme right-wing views exist in Japanese society, even if people rarely give voice to them in an offline environment. For some ordinarily bold brands, it is likely to prompt a round of second-guessing before adopting a sensitive social topic as part of their marketing efforts. “People think discrimination isn’t part of Japanese life, but it is,” said one Japanese in-house communications head at a multinational consumer-facing company, who wanted to remain anonymous. She added that she did not see the work as offensive but as helping to raise awareness of unconscious bias. At the same time, she said she would weigh the risks with extra care before embarking on any diversity-oriented campaign

    Finnish Data Theft and Extortion – Schneier on Security – when the ransomware hustle didn’t work on a Finnish mental health clinic, the hackers looked to extort employees and patients

    China pulls back from the world: rethinking Xi’s ‘project of the century’ | Financial Times – two Chinese banks lent $462bn, just short of the $467bn extended by the World Bank, according to the Boston University data. In some years, lending by the Chinese policy banks was almost equivalent to that by all six of the world’s multilateral financial institutions — which along with the World Bank include the Asian Development Bank, the Inter-American Development Bank, the European Investment Bank, the European Bank for Reconstruction and Development and the African Development Bank — put together. In global development finance, such a sharp scaling back of lending by the Chinese banks amounts to an earthquake. If it persists, it will exacerbate an infrastructure funding gap that in Asia alone already amounts to $907bn a year, according to Asian Development Bank estimates. In Africa and Latin America — where Chinese credit has also formed a big part of infrastructure financing — the gap between what is required and what is available is also expected to yawn wider. China’s retreat from overseas development finance derives from structural policy shifts, according to Chinese analysts. “China is consolidating, absorbing and digesting the investments made in the past,” says Wang Huiyao, an adviser to China’s state council and president of the Center for China and Globalisation, a think-tank. – there are limits to what even China can do to defy economic laws. Overall the infrastructure costs of the British empire were much higher than is generally realised