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.

  • Internet freedom

    A couple of stories related to internet freedom that came to my attention this morning.

    Internet freedom in China

    First off today’s New York Times magazine has an indepth feature about the challenges that China presents to Internet companies seeking a Chinese audience. Google’s China Problem (and China’s Google Problem) by Clive Thompson is balanced and well written. There are some interesting aspects to it:

    • The censorship is open rather than furtive
    • It involves self-censorship as a key element in it’s execution
    • Chinese people interviewed do not view freedom of speech as an absolute binary state (you’re free or you’re not) but as a continuum and are prepared to make trade-offs; so Google’s ‘Do the least evil’ approach makes more sense
    • The role of chat and forums in Chinese internet usage is far higher than we’re used to
    • The assumption that the US readership of the article enjoy ‘absolute’ freedom of speech and a resulting internet freedom

    The last point brings me on to the text of a speech given by US attorney general Alberto R. Gonzales at National Center for Missing and Exploited Children. 

    US threat to internet freedom

    Vigilant civil rights activists have noticed a number of items in the speech which would extend the government powers of censorship and surveillance well beyond child pornography with the implication being that in future US legislation freedom of speech and internet freedom may not be the absolute that it once was.

    Lauren Weinstein of pressure group People for Internet Responsibility made the following post to the Interesting People email list:

    In a speech a few days ago, Attorney General Gonzales announced DoJ plans to send Congress new legislation to control “pornography” and (apparently) ultimately to require activity log and other data retention by Internet Services (in follow-up interviews, Google and other search engines have been specifically discussed). Gonzales is pitching this legislation using child abuse as the hook. That is, he is arguing for tools to use against child abuse and child pornography — certainly a “third rail” issue these days where virtually everyone will support enforcement efforts. However, it’s also clear that the DoJ seems to have no intention of limiting such tools *only* to child-related areas. The legislation itself is currently titled: “Child Pornography and Obscenity Prevention Amendments of 2006”

    A transcript of the Attorney General’s speech is here:
    http://releases.usnewswire.com/GetRelease.asp?id=64319
    Note this key quote: “This legislation will help ensure that communications providers report the presence of child pornography on their systems by strengthening criminal penalties for failing to report it. It will also prevent people from inadvertently stumbling across pornographic images on the Internet.” Requiring the reporting of child pornography on systems (when it is known to exist) is something that few people would argue against, obviously.

    But let’s examine the second sentence again: “It will also prevent people from inadvertently stumbling across pornographic images on the Internet.” This seems to be addressing the entire broad category of non-child “pornography” (which of course can be defined in any number of ways in different locales and contexts), and suggests a requirement (here we go again!) for proactive ratings/controls (presumably ID or credit

    card based for “offensive” materials) for all (U.S.) Web sites. So this isn’t just about children, it’s likely about broader government controls over many U.S.-based Internet entities (of course, Gonzales doesn’t effectively address the issue of Web sites outside the country). Gonzales goes a lot further in another quote:

    “The investigation and prosecution of child predators depends critically on the availability of evidence that is often in the hands of Internet service providers. This evidence will be available for us to use only if the providers retain the records for a reasonable amount of time. Unfortunately, the failure of some Internet service providers to keep records has hampered our ability to conduct investigations in this area. As a result, I have asked the appropriate experts at the Department to examine this issue and provide me with proposed recommendations. And I am going to reach out personally to the CEOs of the leading service providers and to other industry leaders to solicit their input and assistance. Record retention by Internet service providers consistent with the legitimate privacy rights of Americans, is an issue that must be addressed.”

    Again, we see that protecting children — the goal that we all support — is being used as the raison d’etre to likely later propose broad data retention requirements on all manner of Internet services. Ironically, this is occurring shortly after calls for mandated data *destruction* legislation that arose in the wake of the DoJ vs. Google records battle (where I strongly supported Google’s stance).cted that this sequence would occur — though it is happening even faster than I expected. Record retention is a particularly risky area. DoJ might be expected to argue (as Gonzales implies) that such records would only be demanded in cases involving children.

    That’s today’s line. But in a general records retention environment, you cannot a priori retain only the records related to child abusers whom you don’t already know about — you must retain *everyone’s* records. While the criteria for records access might be child abuse today, does anyone seriously believe that calls for access to user log data will not massively expand over time, to the extent that such data is available? Of course it will. If the data exists, all manner of ostensibly laudable reasons for government digging through users’ Internet activities will be forthcoming. And that will create a wholly different kind of Internet, where ultimately our every action on the Net may be subject to retroactive inspection. The term “slippery slope” is definitely applicable.

    We need to see the specifics of legislation before detailed comments will be possible. But the handwriting is on the wall, and it does not bode well for either Internet users or Internet-related services.

    More related content here.

  • China Inc. – The 800-pound dragon in the room

    The New York Times has a great review of China Inc. by Ted C. Fishman which highlights the growing economic might of China. Some interesting facts and figures featured in the review of the book include:

    • From 1982 through 2002, the United States economy grew at an annual rate of 3.3 percent. China’s economy grew at an annual rate of 9.5 percent,
    • In 2003 China bought 7 percent of the world’s oil, a quarter of its aluminum and steel, almost a third of its iron ore and coal, and 40 percent of its cement.
    • China makes 40 percent of all furniture sold in the United States
    • China has 3,000 Christmas-decoration factories which exported more than $900 million tree trimmings and plastic Santas in the first 10 months of 2003.
    • China still only makes one-twentieth of everything produced in the world
    • China can rely on a vast low-wage army, working for an average of 40 cents an hour, that can turn out consumer goods of every description
    • American and Japanese companies spend $1 billion to $2 billion to develop a new car
    • New super-cities like Shenzhen, a fishing town of 70,000 20 years ago that now has 7 million people, making it larger than Los Angeles or Paris, swelled by migrants from the countryside looking for a better life in the city
    • Up to 300 million Chinese have migrated from the country to the city over the past 20 years
    • The Asian Brown Cloud, a wind-borne industrial smog that originates on China’s east coast, can be seen in California as it rides the jet stream
    • China has seven of the world’s ten most polluted cities


    The book also provides some insights into the differences between the rise of China and Japan. Unlike Japan, China Inc. is driven by local enterprises rather than the central analysis and planning carried out by Japanese Ministry of International Trade and Industry (MITI) [now known as the Ministry of Economy Trade and Industry] to find key markets to conquer. There is a certain irony in the socialist state using the brutal darwinism of the marketplace in a way that Adam Smith would have appreciated.

    Current reading at chez Renaissance Chambara:

     

  • Lead the internet

    America historically has been the best position to lead the Internet. It deliberately set up multilateral open bodies that set many of the technology standards. It benefited from this approach and is now home to many of the main companies whose technology underpins and makes use of the Internet.

    That might be changing. A small geeky announcement on ChinaTechNews.com that caught my eye indicated that the balance is shifting. The announcement is significant. Think of it this way, how many extra phone lines could you have if you added an extra digit to the area code of a phone number? Well, imagine that jump but much, much bigger to understand the leap forward that the Chinese are making to lead the Internet with the adoption of IPv9.

    This also marks a profound future social, economic and information shift to the East; especially when considering how the most brutal and naked form of capitalism since the Robber Barons of the 19th century America is reshaping China. Behind this laissez faire capitalism is a regime with a very much ulitarian and mercantilist vision of power. The futures red, the future’s China; get ready for video on demand Shaw Brothers Classics. More related content here.