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Tuesday, February 23, 2010

China's Wage Increase

Minimum wages have been announced before the Chinese New Year ranging from 10 percent in Beijing to 15 percent in export-oriented Shanghai and Jiangsu.

and

There does now appear to be a shortage of labor in several areas. Reports in Hong Kong say factory owners in the Pearl River delta, the major export hub, are having difficulty luring workers back to the region.

Interesting.

China's Wage Increase - Asian Sentinel.

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Sunday, February 21, 2010

Young, educated and jobless in China

Young, educated and jobless in China - LA Times.

An estimated 3 million jobless or underemployed college graduates in China, products of a mass social experiment by central planners to churn out more professionals for China's economic development. Nicknamed the Ant Tribe, after the title of a recent book documenting their struggles, they now constitute a vast army of educated young people whose growing restlessness worries the Chinese government.

There is a limit on what state control and direction can do. My thought what China needs to do is encourage entrepreneurship and increase intellectual property. The current system favors the families and businesses that are well connected.

I just learned about the eight immortals today, who they are, and their descendants. Interesting what this says about China's economy.

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Saturday, February 20, 2010

Chinese Developer Challenges

Working with software developers can be very challenging. And figuring out what a customer wants for software development. There is a saying that a camel is a horse designed by committee. Or another good story is the blind men describing an elephant.

There seems to be a culture clash working with Chinese developers. Of course working with any developer can be challenging. And of course there is the developer stories of crazy customer stories, a developer friend of mine describes a quote he got where the person wanted a site like eBay, and only wanted to pay $100.

Mindset change needed to work with Chinese developers - ZDNET

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Thursday, February 18, 2010

China, Silicon Valley, & Solar

Good article from the Mercury News - Silicon Valley faces fierce global competition in cleantech

Key Points:
  • China views cleantech as a gold rush that will propel Chinese companies to world-domineering status.
  • Lawrence Berkeley's Wiser noted that Chinese government policy supports local companies and that it's often cheaper to buy homegrown technology, even though foreign-made products may be more reliable.

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Wednesday, February 10, 2010

Disturbing on Chinese Foreign Relatios

Tuesday, January 26, 2010

China's Cyber Merchantism

Mercantilism is where a country deliberately pushes the exports of products from their country while keeping imports to a minimum.

With security breaches the great thing about it is there is 100% deniability. There is always a chance that your country is being framed. And with the 100% deniability, there is no downside to Cyber Merchantism for a country. What is the cost of stealing competitive information (oil reserve information) from a US Oil company that can help your own domestic oil industry on bidding? None, since nobody can prove your country did it.

For any software used in China that uses encryption, the Chinese government requires a company to turn over the keys (access) to them. The US has similar requirements for criminal investigations through court orders. What happened with Skype for example in China, was somebody was monitoring conversations and scanning them for keywords, and then copying them. The challenge is what happens when the Chinese government favors domestic competition over your foreign site?

An example of this in China was initially Google's site for a while was being forwarded to a competitors. So if you typed in Google.cop Baidu would come put. Another example was when Google.cn was shut down due to pornography.

From a software prospective China was going to require that all PC's be installed with software to filter the Internet. Unfortunately it seems the software, Green Dam, had large parts of it copied from a US Software Cybersitter. Currently Cybersitter is suing for $2.2 Billion dollars over this. Since Green Dam has no foreign assets I don't see a cost for them copying the code. Cybersitter is also going after PC Manufacturers who installed the software that have foreign assets such as Sony, Lenovo, Toshiba, Acer, etc.

What is happening in the hacker attacks is an outside entitity is gaining control of a computer. Making it into a zombie, which then gives them access to the network that computer is on. And specific people are being targeted using a combination of human engineering and zero day flaws. Through E-Mails sent directly to a person using their name and having a subject line that appears real, with a link or attached pdf, that when clicked on gives control of the computer.

And the sophistication of the hacking is amazing with different groups being involved in different areas. One group does the initial penetration, and then another group would search out needed information, and a third group would actually move the information out.

Why would a country do Cyber Merchantism? The simple answer is to give their own industry help. And this applies from raw materials, manufacturing, to the information economy. The goal of China's government is move up the economic value food chain, to advance from being just a place for low cost hub for manufacturing, into a producer and developer of high technology products.

I found this quote interesting:

“The China threat is constant,” says Shawn Carpenter, principal forensics analyst for NetWitness, a cybersecurity company. “If there’s valuable intellectual property out there, there are people in China and elsewhere who want to take it. It’s the new battlefield – low risk and low investment with high gain.”

References:

US oil industry hit by cyberattacks: Was China involved? - Christian Science Monitor

In Digital Combat, U.S. Finds No Easy Deterrent - NY Times.

Google Attack Part of Widespread Spying Effort - IDG

China Issues Sharp Rebuke to U.S. Calls for an Investigation on Google Attacks - NY Times.

China retreats on Internet Filtering SoftwareChina Requires Censoring on New PCs

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Google China History

Good history of Google's involvement with China - The Google-China Challenge: How It Came to This by JR Raphael, PC World

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Saturday, January 9, 2010

China Awakens or a Bubble about to Collapse

Two very different views on China:

Who’s Sleeping Now? NY Times by Thomas Friedman. A positive article about China and how they are doing a great Green Leap Forward.

The other is Contrarian Investor Sees Economic Crash in China also from the NY Times. The position in the article is China is over inflated with dodgy numbers and is Enron, except on a national scale.

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Saturday, December 26, 2009

China on $35 a Day

China on $35 a Day from the Wall Street Journal.

Sounds like China is more reasonable than I thought on the cost (my wife is from Taiwan). There is also a lot of cheap package deals to China with group tours. And I do have a few things that would be good for the traveler to help them with Learning Chinese for all ages.

I so want to go HK Disneyland! I had free tickets to go to HK, but unfortunately SARS happened so I was forbidden to go and the voucher expired.

The problem with going to China for vacation is my families schedule. Last summer was SAT and then we went on a quick vacation to the Southern US that was a lot of fun. Only negative was we missed Dollywood (it was closed when we were in the area, so we saw more of Chatanooga and Atlanta). Since my daughter is taking AP US History this year, it was also a bit educational.

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Saturday, October 10, 2009

China and the Dollar

The recent decline in the US dollar is challenging for China, since this increases the cost of their goods. I am curious to see if they will be intervening in the currency market as other countries have recently on the dollar.

Known Facts:
  • China has been helping finance the US National debt by buying treasury bonds.
  • China is economy is export focused.
  • China has a tremendous amount of investments in dollars.
  • China relies on a favorable exchange rate with the US.
  • The US is China's largest trading partner.

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Sunday, June 21, 2009

Beijing Olympic Pollution

I find it exciting that this was measured at all, results are interesting and I hope they spur China's government for more efforts that are effective on cleaning up the pollution there.

Pollution of Olympic proportions - SF Gate

Beijing air pollution was up to 3.5 times higher than at Summer Games in Athens, Atlanta and Sydney.

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Saturday, April 19, 2008

And you thought the US Stock Market was bad...

China Stocks, Once Frothy, Fall by Half In Six Months article from the Wall Street Journal. They have lost 49% of their value, or 2.5 Trillion dollars of value.

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Wednesday, April 2, 2008

Silicon Valley in China

WSJ article. Looks very interesting.

Why China Will Win The Web from Forbes. WSJ article I am still looking for. It's a review of a new book that is out.

China's government is pushing hard to develop a high tech industry, and limiting foreign competition. Which is why many of the companies mentioned in the article have done so well. Looking for MP3's that may not be legal, if your Google you don't want to mess with the DMCA. Baidu, that's OK.

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Sunday, February 17, 2008

iPhone - What does this say about China

There has been a mystery with iPhones, on why are only 2/3rds of them have been activated. 3.7 million were sold last year, and only 2.3 million activated. So where are the other 1.4 Million Phones. It seems at least 400,000 are in China. NY Times article that gives some insite into the issue. Smugglers Return iPhones to China Business Week's article, Inside the iPhone Grey Market is interesting.

So what does this huge amount of phones being exported to China, say about Chinese society today?

Some semi-educated guesses:
  1. The latest Electronics (especially Cell Phones) are status symbol in China.
  2. Cell Phones are very visible symbols of your wealth. Which is why they pay $555 and more, for an iPhone that costs $400 in the US due to the status.
  3. Lots of Internet is viewed on mobile phones in the cities, unlike the US.
  4. Apple has great branding, even in China.
  5. Apple has a better interface than other competitor phones, even in Chinese.

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Saturday, February 16, 2008

Virus in Picture Frames

Sad. It seems some Digital Picture Frames made in China have a virus on them, that steels passwords and such.

So far the list of goods made in China that have had issues:
This is not helping the made in China brand. China has a lot of hackers and the government has the attitude that as long as the attacks are outside of China, it's fine. Since they are a potential resource if a cyber war ever happened with another country.

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Thursday, February 14, 2008

Chinese Drug Contamination - 4 Deaths possible link

Page one from the Wall Street Journal - China Plant Played Role In Drug Tied to 4 Deaths - There blog has some comments.

Key Points:
  • The drug thinner Heparin had production halted by Baxter, which has 50% of the market share
  • FDA may only inspect around 7% of foreign drug-making facilities in a given year.
  • FDA has not inspected the plant ever, and it has been making the drug ingredient for Baxter for 20 years.
  • China is now the world's largest producer of active pharmaceutical ingredient
  • The Chinese plant may not be the reason for the 4 deaths.
  • This is scary - FDA "cannot provide the exact number of foreign establishments that have never been inspected."

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Friday, February 1, 2008

China's Inflation Hits America

NY Times Article that Inflation in China will have an impact in America. I am already starting to see this on some items we sell, such as .

Key Points of the Article:
  • China's increased demand for raw materials increases costs for all manufacturers.
  • China's imports only make up 7.5% of goods bought in the US.
  • Chinese imports US Market Share is about 80 percent of toys, 85 percent of footwear, and 40 percent for clothing.
  • China manufactures even when not having a major market share, still have price pressure on other people in the same industry.
  • Plastic, used heavily in toys, has increased in price 30% due to the price of oil.
  • There is an increased cost by manufacturers due to safety testing.
  • Wages are increasing in China with labor shortages being reported in some areas.
  • China's Government has increased tariffs in some areas as a way to increase businesses focusing on higher margin value items.
  • Revealing quote: Nate Herman, director of international trade at the American Apparel and Footwear Association, based in Arlington, Va., that represents some big clothing and footwear makers. “Factories are coming back and asking for 20, 30, 40, 50 percent price increases.
With my wife's site selling dresses, the Flower Girl Dresses and Holiday Dresses are made in the US. The US garment industry has shrunk due to imports, the only ones I see mostly remaining are places that focus on high end or quick turnarounds with faster changes in fashio. The Chinese QiPao Cheongsam Girl's Dresses and Vietnamese Girl's Dresses - Ao Dai Cuoi are imported and I have started to see price increases.

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Ice Storms in China

The impact of a severe winter can be seen as millions of travelers have been stranded as they attempt to make their way home for the annual New Years Holiday to the rise in food prices due to destruction of crops. Half The Sky, an organization to help abandoned orphans in China. Estimate of damages is $7.5 Billion and is the worst in 50 years.

Two E-Mails I received from Half The Sky (a great foundation I have a lot of respect for) founded by a parent who adopted a child from China and is going to carry the Olympic Torch.

Date: Fri, 1 Feb 2008
Subject: Further news from HTS regarding our little ones in China

Hello again,

Welfare institutions in south and central China are having the hardest
time dealing with the weather disaster. This part of the country is
simply not equipped to deal with extreme cold or heavy snow and ice. The
most common critical problems are power outages, lack of safe drinking and
cooking water, lack of fuel, diapers and public transportation. In many
places where buses have stopped running, our Half the Sky nannies have
been walking hours (in one case, 4 hours) along icy roads to get to the
children. As conditions worsen, our nannies and teachers are remaining at
the institutions day and night. They have given up the idea of going home
to their own families for the holidays. They need quilts. They need warm
clothing. They need coal, water, disposable diapers and food.

Here are the reports I have thus far, while in-flight. I will send more
soon. Where you don’t see a report, either all is well or I don’t yet
have information. I will tell you when we’ve heard from everyone. We’ve
also given all the directors an emergency number to call when/if the
situation changes.

Hunan Province ­

Chenzhou has had no electricity or water for six days. They are relying
on coal for heat and cooking. The supermarkets and banks are closed.
Staff is using personal money for baby food, diapers, coal and water.
Costs are rising due to shortages. They have a natural well which,
thankfully, is not frozen. Even the older children are helping to fetch
water. They have perhaps six days of food remaining. The local
government is overwhelmed by the disaster and is unable to help much.

Shaoyang has seen heavy snow every day for 20 days. There is sufficient
water and, for the moment, there is power, so the children are warm.
However, 5 of 6 power poles have been downed by weather. Only one stands
and the institution fears it will fall as well, leaving them without
electricity. Much of the rest of the city is already dark. Children and
caregivers continue to work and play together. High school students are
cramming for exams and trying to ignore the cold. Everyone prays that the
power pole will continue to stand.

Yueyang also has no electricity. The one functioning power generator is
being used in the children’s dormitory. They are relying on coal heat but
the price has tripled in recent days. They are running out of food and
have applied to the local Bureau of Civil Affairs for funds to buy more.
Our HTS nannies have been walking for hours to get to work, often slipping
on the ice, “even though they try to be cautious.”

Xiangtan has had snow for the past 10 days. The main water pipe is
“broken again.” There is no water for cooking right now but they do have
electricity, coal and blankets. They are still able to buy food but
prices have gone way up. Not all of the HTS nannies can get to work every
day. They are keeping the programs going as well as they can and make
sure that at least five nurturing nannies are there with the babies every
day, along with the institution’s caregivers.

Jiangsu Province ­
Changzhou has seen some heavy snows but the director reports that the
children are fine. The director says that he’s doing his best to ensure
that the children do not suffer. Public transportation is crippled by the
snow and HTS nannies and teachers are waiting for hours to catch a bus for
home or even walking home in the snowy dark.

Nanjing reports no problems at all despite the heavy snows. I tried to
fly into Nanjing yesterday but it was not possible.

Anhui Province -

Chuzhou has both water and power. Only public transportation has failed.
HTS nannies and teachers are walking to work. They are leaving home extra
early to be there for the children.

Guangxi Province ­

Guilin has two broken HTS heater/air conditioners in the Infant Nurture
rooms and they’ve asked us to replace. The rooms are very, very cold.
They ask for more soft matting for the floors and also snow boots for our
HTS nannies who’ve been slipping and falling in the ice and snow as they
come to work. They are so ill-equipped to handle severe weather.

Jiangxi Province ­

Fuzhou lost power for a few days but now it is back to normal. The snow
stopped a couple of days ago but now is falling again. The directors and
HTS staff have gathered all the children into one big room to keep them
warm. They’ve bought New Years clothes for the children and will have a
party no matter how bad the weather. This year, however, the foster
parents will stay home to keep the children safe. The institution has
enough food and water. They want us to focus on those in more serious
trouble and ask us please not to worry.

Jiujiang says they’ve never faced such bitter weather. They desperately
need disposable diapers. Washable diapers cannot be dried. They need
warm clothes, shoes, gloves hats quilts and warm mats for the floors.
They need medicine for infant coughs and colds.

Hubei Province ­

Wuhan suffers heavy snows but they still have power. Heaters are working
but there is no water for bathing. The local community has offered to
take children in for the Chinese New Year and the institution feels this
may be the best decision to keep them safe.

Huangshi reports that the freeze is so severe that all heater/air
conditioners have stopped functioning. They need quilts and warm clothes
for the children. They need disposable diapers. Several HTS nannies have
fallen on the ice on their way to work and they need medicine to treat
cuts and bruises.

Gathering these reports together makes me think about how careful we have
always been at Half the Sky to maintain our focus on nurture and education
programs. Ours is not a medical or relief organization. There are many
wonderful groups who do that work. Probably the primary reason we’ve been
able to accomplish so much and reach so many children is because we’ve
maintained our focus on our core mission -- providing nurturing care for
children who’ve lost their families..

But a moment like this really cannot be ignored. The tragedy of Hurricane
Katrina in the US taught us that no matter how wealthy a country might be,
its vulnerable citizens (old, poor, ill, and orphaned children) are the
ones who suffer most when disaster strikes. Even as China seems to be
entering the first world, a disaster like this is quite simply crippling.
We know that orphaned children will be among those who suffer the damage
most.

I say this because I think we should break one of Half the Sky’s rules
and, if there are sufficient funds raised in the Little Mouse Emergency
Fund, we should offer relief (water, food, diapers, quilts, clothing) to
any orphanage where children need help. Let’s see how this goes. If
people are as generous as I think they might be, we will work with the
provincial Bureaus of Civil Affairs in every hard-hit community, and offer
assistance to all welfare institutions where there is need.

Please lend a hand, however you can. You can donate to the Little Mouse
Emergency Fund by calling us in the US at +1-510-525-3377 or in Asia at
+852- 2520-5266 or by visiting us at www.halfthesky.org. Once there, you
can click on “Donate Now”
download a form to mail or fax. Donations are tax-deductible in US,
Canada and Hong Kong.

Please forward this message and tell your friends and family.

I will be back with an update very, very soon.

Thank you!

Jenny

Jenny Bowen
Executive Director
Half the Sky Foundation

Half the Sky was created in order to enrich the lives and enhance the prospects for orphaned children in China. We establish and operate infant nurture and preschool programs, provide personalized learning for older children and establish loving permanent family care and guidance for children with disabilities. It is our goal to ensure that every orphaned child has a caring adult in her life and a chance at a bright future.

Date: Thu, 31 Jan 2008
Subject: We need your help in China - NOW!


Dear friends,

Greetings from Beijing. Every year at this time we send you a note
celebrating and welcoming the Lunar New Year. This year, the Year of the
Mouse, promises prosperity (we hope!) and good fortune and there should be
plenty to celebrate.

But in these days leading up to the holiday the weather has dealt China a
heavy blow. YouÂ’ve probably heard about the millions of workers stranded
all over the country, struggling to return home to their families for the
Spring Festival Holiday. But I donÂ’t know if you know how rough these
days are for our children in welfare institutions, who, of course, have no
families to go home to. You wonÂ’t read about them in the news.

Despite power outages and downed phone lines, our Beijing staff has been
reaching out to all Half the Sky orphanages by whatever means possible.
WeÂ’ve reached all but five. In some places, conditions are pretty grim.
WeÂ’ve managed to get word to all of our sites that we are going to do
whatever it takes to get the children the help they need. I am asking for
your help.

Today Half the Sky launches the “Little Mouse Emergency Fund” to help the
institutions purchase what they need to get through this disaster. If
there are funds left over when the weather clears and services are
restored, we will take the balance and help each site establish a store of
emergency provisions so that this never happens again.

You can give to the Little Mouse Emergency Fund by clicking “Donate Now”
on our website. Please note in the “Special Instructions to Half the Sky”
that your gift is for the Little Mouse Emergency Fund.

I am trying to get on an airplane right now (even airports are crazy!) but
I will write more details about the needs and conditions in individual
orphanages as I fly. Will send more just as soon as I can. I'd be very
grateful if you'd forward this message to others who you think might care
about the children.

Please be safe and warm and wellÂ….

Love and thanks,
Jenny

Jenny Bowen
Executive Director
Half the Sky Foundation

Half the Sky was created in order to enrich the lives and enhance the prospects for orphaned children in China. We establish and operate infant nurture and preschool programs, provide personalized learning for older children and establish loving permanent family care and guidance for children with disabilities. It is our goal to ensure that every orphaned child has a caring adult in her life and a chance at a bright future.

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Sunday, January 13, 2008

Poverty in China

Good article from the NY times Lives of Poverty, Untouched by China’s Boom as well as a post on a blog on global poverty. China has done an amazing job of increasing the size of their economy and lifting so many people out of poverty. There is still a ways to go because China is a huge country. The economic disparity is one the Chinese Government is aware of, but they only have so much power. Chinese proverb to remember: "The mountains are high and the Emperor is far away"Which means basically as long as you don't cause major problems, the Chinese government is going to leave you alone. Cause problems enough to get noticed and action will be taken. An example of this was the Toy company CEO committed suicide because he got noticed after he embarrassed China, resulting in his company being shut down.

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Monday, December 31, 2007

China's Economy - Size Adjusted Down

Per the LA Times, the size of the Chinese Economy has been adjusted down per the World Bank. The article analyzes the impact of the changes such as that China will not be bigger than the US economically in 2012, as well as the fact considerably more people are poorer in China than thought before.

Amazing what you can do with statistics. How reliable are the measurements? I am not sure. Statistics on economic output in China are state controlled for the most part from what I have read. There is usually an incentive to overstate statistics on a lower, state level (who wants to admit to being poor or not making their growth estimates). Would it be in China's interest to have lower statistics? Would it be in their interest to have higher statistics? I can see arguments for reasons for going either way.

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