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Wal Mart is Scared, Danone Sells Out, There is a Big Meeting in Beijing, Global Business Dynamics 2007-10-21 07:48:13 Danone Sells Stake of Shanghai Bright While still in the middle of perhaps China’s talked about implosion, Danone has exited from its stake in Shanghai Bright. Much like the Wahaha investment, Danone had a position in Bright’s largest competitor Inner Mongolia based Mengniu. You can read the full details IHT and the Dairy Reporter article. Perhaps Danone has come to understand that while investing in firms that already have captured a large portion of the market, investing in the top 2 is not the best idea. Especially when you are trying to explain why a new product concept is not such a good idea… The Changing Dynamics of the Global Business Cycle The world is changing in many ways.. and fast. At Thunderbird, I learned about the history of globalization from a number of different angles, the role of trade, politics, and human movements.. and I found it all fascinating (ok.. International Econ was a bit of a snore). However, when reading the popular press and when ...

Wal Mart is Scared, Danone Sells Out, There is a Big Meeting in Beijing, Global Business Dynamics 2007-10-21 07:48:13 Danone Sells Stake of Shanghai Bright While still in the middle of perhaps China’s talked about implosion, Danone has exited from its stake in Shanghai Bright. Much like the Wahaha investment, Danone had a position in Bright’s largest competitor Inner Mongolia based Mengniu. You can read the full details IHT and the Dairy Reporter article. Perhaps Danone has come to understand that while investing in firms that already have captured a large portion of the market, investing in the top 2 is not the best idea. Especially when you are trying to explain why a new product concept is not such a good idea… The Changing Dynamics of the Global Business Cycle The world is changing in many ways.. and fast. At Thunderbird, I learned about the history of globalization from a number of different angles, the role of trade, politics, and human movements.. and I found it all fascinating (ok.. International Econ was a bit of a snore). However, when reading the popular press and when ...

Brits Get Rich In China: Part 5 2007-10-21 07:48:11 http://www.youtube.com/watch?v=ULyC6USbLaQ Vance - Back to the dinner…. where bugs, donkey penis, and a host of other special dishes are served up for Vance. Despite taunts from his son.. he takes a pass Peter - Cecil’s sales campaign is in high gear, and Peter has gone from CEO to token foreigner in the meeting. The “negotiations” are in full force, but Peter exists the room (Note: If you are the token foreigner in a negotiation, you should not leave the room). Credit to Peter is that he fully recognizes this relationship is a complete gamble. He has no contract between them, and his solicitor has only been able to verify that Cecil was not involved (i.e. convicted) of anything illegal. Tony - back in his hotel room, Tony is crunching numbers and dodging calls from the resident massage girls. His showroom is complete, and to make sure he can close sales, he needs to hire his staff. Hiring in China is always an adventure, and Tony is taking a good approa ...

China Plans CCP Branch in Space 2007-10-20 15:57:52 The more prescient members at the National Party Congress are evidently thinking far outside the box. Outside the planet, it appears… China’s space communists would “carry out the regular activities of a Communist Party of China branch in space in the way we do on Earth,” Yang Liwei, the first Chinese astronaut to fly into space, was quoted by Xinhua as saying on the sidelines of the national party congress. Yang said a party branch would have to await establishment of a permanent presence in space such as a space station, something China is decades from achieving. [Kudos to Miss Johnson from London. Knightsbridge, perhaps?] Read Original Post Here ...

Judicial Independence — When Local Authorities Pay the Judiciary Scant Attention 2007-10-20 15:57:51 Get a judgment somewhere in China. Then try to collect. There is little value in a judgment when the authorities flout its enforcement. Read this Washington Post article. The local government, against whom the judgment was entered, won’t pay and can’t be forced to. Yuci township, the subject of the story, is not a rogue element (although it may be run by rogues); in fact, it displays typical administrative behavior. It might possibly disgorge its illegal gain if a superior authority compels it to — a strategy used by a number of American bankers collecting on bad loans in China (”The governor of the province is a personal friend of mine, and if you don’t give me my $23.6 million today I will be having lunch with him tomorrow). But then, the judiciary is once again circumvented by the power structure which would — or would pretend? — to espouse judicial independence in the first place Read Original Post Here ...

Audio: Republicans Reject Free Trade and China Takes a Hit 2007-10-20 15:57:50 Click the little triangle to listen to today's post. Read Original Post Here ...

U.S. Republicans Reject Free Trade — China Takes a Hit 2007-10-20 15:57:50 Over the last few years, the American ardor for China has cooled. Even I need a sweater. In speaking with Americans, the topic often turns to China. My partner in conversation, whoever it may be — home improvement contractor, local attorney, bank teller, teacher — is now, as a rule, adamant that China is not a friend. Of course, that person may delight in friendships with individual Chinese, but to many Americans, China has become more than just an adversary. And I believe I am right in saying that Chinese are similarly disposed towards the U.S. A dreadful state of affairs. China has become a focal lens for the distress, anger and helplessness that Americans can no longer tolerate directing inwardly. No longer do we read encomia touting the virtues of ancient Chinese philosophies practiced in modern life, the beneficially high rate of savings and lack of debt, the care and respect towards the elderly, the veneration of education, the tolerance for long hours and ha ...

Who Will Apologize Next? 2007-10-20 15:57:48 The American Consumer Product Safety Commission has issued another set of product recalls involving leaded toys and jewelry from China. (Golly gee willickers, but don’t they look so cute!) In Bejing, Commerce Ministry spokesman Wang Xinpei on Thursday said: “Our attitude toward the toy problem has always been the same, that the problem is one in a thousand.” With several million products already recalled and many more likely to follow, that ratio may be somewhat erroneous. The $64,000 Asia Business Intelligence question: which of the American companies involved in the recalls will be the next to suddenly appear with Chinese officials, apologizing deeply, humbly and profusely to the government, exporters, manufacturers, factory workers, transport carriers, freight forwarders, longshoremen and God knows who else in China? Read Original Post Here ...

Announcement: IP Rights in China Roundtable 2007-10-20 15:57:47 Event: ROUNDTABLE DISCUSSION ON INTELLECTUAL PROPERTY RIGHTS IN CHINA Date: October 23-24, 2007 October 23: Evening Reception October 24: IPR Roundtable Place: Grand Hyatt Beijing From the event website: Ambassador Clark T. Randt will host the Sixth Annual Roundtable Discussion on Intellectual Property Rights (IPR) in China on October 23-24, 2007 at the Grand Hyatt Hotel in Beijing, China. This is a unique opportunity for United States companies to spend the day with the Ambassador, and hear from industry and trade association representatives with in-depth knowledge and experience speak on IPR protection and enforcement issues in China. The Roundtable discussion will also facilitate direct engagement between United States companies and senior United States officials from both Washington, DC and the United States Mission in China. Register here. Read Original Post Here ...

Flying The Communist Skies: Air Koryo To North Korea 2007-10-20 15:57:46 [Editor’s Note: I’ve never traveled to North Korea, but dearly wish to do so. As an American, the likelihood is slim, alas. I envy PRC Chinese who, following the footsteps of the presumably still incarcerated Yang Bin — the ex-flower magnate, embezzler and bankrupt of Shenyang who had planned to corner the cross border trade — flit over to Shinuiju to gamble on the crap tables installed by Stanley Ho of Macao casino fame and fortune. I long, redheaded, white-skinned Chinese speaker that I am, to turn the heads and fix the eyes of those North Koreans who’ve never seen a Westerner, as I did with PRC Chinese in the early 1980s. In essence, to turn back the calendar by thirty years and re-visit ancient Asian “communism,” still on display in its only remnant, the death defying holdout. I wonder how I would apprehend it this time around. Most likely with the same desperate sadness I did then, but who knows? I find any first-hand account of N ...

Mattel Apologizes to China! 2007-10-20 15:57:46 A shameful kow-tow. “Our reputation has been damaged lately by these recalls,” Thomas Debrowski, Mattel’s executive vice president of worldwide operations, told China’s quality watchdog chief, Li Changjiang, in the Chinese capital. Mattel takes full responsibility for these recalls and apologizes personally to you, the Chinese people and all of our customers who received the toys.” “But it’s important for everyone to understand that the vast majority of those products that we recalled were the result of a design flaw in Mattel’s design, not through a manufacturing flaw in Chinese manufacturers.” As of 1300 UTC on the date of this posting, the Mattel website does not display any such statement. Beware, all ye who dare to accuse. UPDATE (2100 UTC): Even the Wall Street Journal, that supposed bastion of the free market ideal, and its interviewees miss the point entirely: it also would also seem logical for Mattel officials to take a ...

Chinese-Made Condoms Fail to Stimulate Confidence 2007-10-20 15:57:45 A reference in passing to the origin of these condoms suffices to make this another “Uh-oh, Made in China” story. Check your wallets, boys. [Thanks once again to the eagle-eyed Miss Johnson From London for the onpass.] The usual noises are heard, this time in Canada: China’s ambassador to Canada said importers share some responsibility for the recent recalls of Chinese-made toys found to contain excessive levels of lead paint. It is unfair to blame Chinese companies alone for this week’s recall of 700,000 Chinese-made toys by Mattel Inc. (NYSE:MAT), Lu Shumin said Wednesday. The Chinese toy manufacturers, most of them, are doing business with these foreign importers,’ Lu said. ‘They make toys according to the foreign importers’ requests, according to their standard. So I think it is a mutual responsibility.’ In what has been termed an international public relations campaign, Chinese officials have disastrously turned, as is habit, to a ...

Beijing: Analysis of a Left Turn 2007-10-20 15:57:43 You will appreciate this fine analysis of left turn in Beijing. With thanks to Emperor B for the onpass. Then watch a video of traffic patterns at an intersection in Guangzhou here. No, really, it’s fascinating! Read Original Post Here ...

China Law Reporter Looking for Articles 2007-10-20 15:57:42 Qiang Bjornbak, editor of the ABA’s China Law Reporter, is soliciting articles on two timely topics. 1. China’s much anticipated anti-monopoly law: its major features and potential for influence upon unfair competition behaviors, such as price fixing. 2. Product safety issues. Ideally, CLR is looking for two articles on this subject — “one from a lawyer from the Chinese perspective and one from a non-China-based lawyer taking the importer’s perspective. Lots of topic possibilities with this one. For further information, contributors should contact Qiang directly with their proposal. Read Original Post Here ... Articles

Kiwis Say "Blow Me Down! Poison in Kids Clothing From China?" 2007-10-20 15:57:42 In New Zealand, high-levels of formaldehyde have been found in children’s clothing imported from China. Calls are issued for Parliamentary investigations. Just how does the formaldehyde find its way into the bloodstream? Curious, but I was unaware that Kiwis ingested woolens and cottons. Never saw them served at a bun-fight, have you? Then, some dag comes along to report more formaldehyde can be found in food and drink, a by-product of aspartame, than in clothing. Dieters of New Zealand, beware. Never, NEVER! sweeten your cardigan with NutraSweet. [Editor’s note: Many thanks to Miss Johnson from London for the tip.] UPDATE (August 22, 2007): Now all in ANZ can sleep restfully. Thank goodness it’s turning warmer. “Chinese-made blankets containing high levels of formaldehyde have been recalled across Australia and New Zealand, the distributor said Wednesday, amid rising global concern over the safety of products from China.” Read Original Post H ...