China Sales Dog Blog

Old habits die hard - control, control, control

Seems the Chinese government wants foreigners out of the internal financial information loop. The apparent fear is that foreign institutions such as the U.S. SEC might gain access to sensitive financial information, maybe irregularities, associated with Chinese company audits conducted by the Big Four accounting firms. Such information could hurt the credibility of Chinese companies seeking to raise funding on Wall Street. In other words, it's best to keep the cap on bad information and paint a prettier picture. Good strategy but unfortunately Wall Street is niether that hungry nor that dumb, at least I hope this to be true. Investors won't bite on a Chinese company if its financial reports are good but suspect due to lack of transparency. See article in Chicago Tribune highlighting new requirement for that the Big Four firms in China kick out the expatriates and transition over to Chinese senior partners.

So much happening, it's hard to keep up with the news!

Have a good day,

Chris

Makings of a great "soft power" - does China have what it takes?

Here is an interesting and I believe accurate perspective on the Chinese government's campaign to increase its global "soft power" with the apparent hope of supporting its increasing superpower status. The very idea that China has a campaign to do so is a bit of an oxymoron given that most free-thinkers believe "soft power" arises out of ones very nature and is not acquired through effective "advertising".

Read Joseph Nye's (professor at Harvard and author of "The Future of Power", PublicAffairs, 2011) take as published in the Wall Street Journal. Remember, the more you understand China and the Chinese, the more effectively will you be able to conduct business here.

Enjoy,

Chris

Phase II of the Chen Guangcheng story

Chen case resolved, maybe, and China wants an apology? Game is still on. Check out WSJ article for more.

Live and learn, always!

Chris

China and U.S. face choices in Chen case, none perfect - latimes.com

There is not rest for China watchers. Just when you thought there couldn't be another major US-China issue (i.e. think China and the Philippines disputing a South China sea rock while the US awaits on the Philippines' flank) enter blind Chinese activist Chen Guangcheng, his escape from Chinese house arrest and apparent asylum in the U.S. Beijing emabassy. It sure will be interesting to see how this one plays out. See the LA times article for the whole story and a few cultural insights therein.

Have a good day,

Chris

From the LA Times - "No resolution of the diplomatic challenges facing the United States and China over what happens to blind dissident Chen Guangcheng is likely to both ease Chinese embarrassment and cast the Obama administration as a staunch defender of human rights, experts say.via latimesblogs.latimes.com"

China economic and political update

Here's a good comprehensive video update by Li Daokui, director of the Center for China in the World Economy at Tsinghua University and former adviser to the People's Bank of China. Touches on the current state of the economy, China's monetary policy, the real estate market, the Bo Xi Lai scandal and continued reforms. Worth a look.

Chris

View Video on Washington Post.

China's Top 10 Business Stories In 2011 - Forbes

As the year comes to a close, and we look forward to 2012, I continue the tradition I started last year and offer a brief look at the top stories that shaped China’s business and economic climate in 2011:

via www.forbes.com

Good summary of what was important in China in 2011 and still is as we move into 2012.

Enjoy!

Is China somehow limited by its culture and design?

Explaining the many nuances of China to an uninformed friend is always difficult. There are so many angles on everything China that the "uninformed" cannot begin to comprehend the "expert's" divergent seemingly disconnected explanations. You know that old concept of yin-yang, the one represnting "dark-light", "good-evil", "hard-soft" and a whole slew of other opposing yet intertwined forces in the universe? Originating in China, there is no other place it describes better than China. Even today, China is pulled by many "contradictory" forces, the majority being internal.

 

Read the below referenced article

Time for China to pay the piper? Maybe ...

I've seen it coming for some time now. China's increasing PDC or "public display of confidence" that's been building for over ten years could come back to haunt it. According to China, China is always faster, smarter, "right-er" and better than the rest of the world. Problem is the rest of rest of the world has worked hard to develop and played to a certain set of rules for a long time now, rules that newcomer China seems intent on disrupting.

Chinese usually consider it "clever" (聪明 - tsong ming) to bypass the system to achieve ones ends. But as dumb as the rest of the world seems, the rest of the world may not be that dumb after all. What did George Bush say "fool me once ... uh, shame, shame on you. If you FOOL me you can't get fooled again ... !" Translating for our dear Mr. Bush, we can let infractions slide a few times but we do have our limits. Increasingly it seems it's China against the world, a world that when pushed can become a united and formidable opponent.

Read this WSJ article (link below) discussing an emerging reality for China, one sure to put limits on just how much it can continue, as Obama has been saying, gaming the system.

Live and learn,

Chris

China Might Have Over-Reached Itself

By IRWIN STELZER

China Currency Bill Runs Into GOP Opposition - Bloomberg

Getting China to move on it's currecny policy is like pushing bolders up a rocky hill ... the boulders are pretty much going to do what they want anyway. Now it seems that a currency bill developed in the US Senate also may not be the answer, at least according to some members of the House of Represenatives. Read about opposition to the bill in the following Bloomberg article.

Overview: U.S. Senate legislation that would punish China for an undervalued currency ran into opposition from senators and a roadblock by House Speaker John Boehner, who said the bill was “pretty dangerous.” via Bloomberg.

View full article.

Become enlightened.

Chris

Report: US-China trade negative impact on US labor market

Here is an informative article from the September 27 online edition of Wall Street Journal discussing the real impact on US manufacturing and jobs from years of increasing trade with China, or more accurately intensive buying from China-based manufacturers. The article "Tallying the Toll of U.S.-China Trade - Study Sees Americans Bearing High Economic Cost of Imports as Labor Market Struggles to Adapt" based on the research of three prominent economists does not challenge the traditional theory that increased trade is good for the economy. Rather, the research indicates the ramp up of China's exports has been too fast for the US economy to adapt. The result has been increasing unemployment.

The findings of the study (See study - Download ChinaMFGimpact) are consistent with my own perceptions of what's been happening in this US-China game. The conclusions of the report also support my earlier post arguing the US should maintain at least some level of manufacturing in as many sectors as possible, if not for strategic interests, then just for employment.

Have a good day!

Chris