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National Security Review Under China's New Anti-Monopoly Law
2008-08-29 23:48:00 By Steve Dickinson China 's National Development and Reform Commission (NDRC) recently reported on its plans for forming an interagency committee to review the national security impacts of foreign acquisitions of Chinese companies. Contrary to many of the news reports in both English and Chinese, this is not a new policy adopted by the NDRC. The formation of such a committee is consistent with longstanding China policy and it is required by law. China's Anti Monopoly Law (AML) became effective on August 1, 2008. Article 31 of the AML provides for national security review of foreign M&A transactions as follows: Article 31. If the merger with or acquisition of domestic enterprises by foreign investors or other forms of concentration involving foreign investors concerns national security, in addition to the review for concentration of undertakings in accordance with the provisions of this Law, it shall be examined for national security review in accordance with relevant regulat... More About: Security , National Security , Review
China: Where The News Is Always Good.
2008-08-28 10:44:00 Black and White Cat does a great job showing how China 's media sanitizes foreign media articles on China, in its post entitled, "How the New York Times (should have) covered the Olympics." I am "speechless" not because I am surprised (I am not), but because the post speaks volumes all by itself. Read it. (h/t to Peking Duck) More About: News , The News , Good
Why To Go To China For Growth And How To Succeed At It
2008-08-28 08:41:00 Very good article on China Success Stories on why and how to sell and market in and to China. Article is written by Beijing-based advertising guru Dan Mintz and is entitled "Sagging Markets? Look To China: Wealthy Chinese consumers are ripe for the pitching, but approach with caution." Selling and marketing in China 101. Check it out. More About: Growth
China's Anti-Monopoly Law. People, We've Got The Rules.
2008-08-27 18:39:00 By Steve Dickinson On August 3, 2008, the PRC State Council released its long awaited merger notification rules: Regulation on Notification Thresholds for Concentrations of Undertakings, State Council Regulation Number 529, available online in Chinese here. These merger notification rules are required by Article 21 of the PRC Anti -Monopoly Law (“AML”), which requires prior notification for mergers meeting the State Council rules. Since failure to provide notification renders the merger void, the requirement has be viewed with concern, particularly since no hint was given in the AML on what the standard would be. The particular concern was that an excessively low standard would cause excessive involvement of the PRC authorities in international mergers not specifically targeted at China . Under the new rules, there are two notification thresholds: one for foreign M&A transactions with an impact on China and another one for M&A (mergers and acquisitions) transactions with purely... More About: People , Rules
Tony Blair Gets It Right On China. Why Not America?
2008-08-27 08:19:00 England's former Prime Minister, Tony Blair , has an opinion piece in the Wall Street Journal today that lays out exactly how the West should deal with a resurgent China , and why. Do politicians have to retire from office to speak coherently and sensibly on foreign policy, or has Blair always been so smart? After listening to months of foreign policy pablum from Barack Obama, John McCain and now Joe Biden (will someone please explain to me how merely having done something for a really long time all of a sudden makes one a genius?). Let's be honest, when it comes to the candidates' policy with China, the best we America ns can hope for at this point is that none of them really mean what they are saying. The odds are certainly pretty good.
Beijing Olympics Quote Of The Day
2008-08-26 08:35:00 Of course this one is late, but I just heard it on The Daily Show, where Jon Stewart refers to the little girl who sang the opening night song, but whose face did not make it on TV: You thought your middle school days were tough? Imagine if your government got together and decided yohttp://calpolymbatrip.com/2008/china/jo n-stewart-is-still-a-god/u were not cute. UPDATE: Some consider Stewart worthy of deification and use him as part of their graduate level syllabus. On a somewhat related note (using pop culture as a learning device), while listening to Bruce Springsteen's, The Rising, this morning, I concluded that if one listed to every song by Springsteen, Bob Dylan, and Marvin Gaye, one ought to get at least 16 hours college credit in sociology, political science and US history, 1965-2008. Do you agree? More About: Olympics , Beijing , Quote Of The Day , Beijing Olympics , Quote
Phillip Pan's "Out Of Mao's Shadow" Is One Great Book.
2008-08-25 08:08:00 "If you want to make an omelet, you must be willing to break a few eggs." Vladmir Lenin "Power tends to corrupt, and absolute power corrupts absolutely.." Lord Acton Phillip Pan, former Washington Post Beijing bureau chief has written a great book on China, entitled, "Out of Mao's Shadow : The Struggle for the Soul of a New China." The book profiles 11 Chinese, mostly present day, and by doing so, it very nicely provides a not very pretty snapshot on China's political development. Pan was in China from 2000 to 2007 and one gets the distinct impression he was working on many of these profiles the entire time. Pan clearly views the people of whom he writes as markers on where China is now and where it likely will be heading. Pan takes a decidedly pessimistic view of the party's ability to reform from within and is overall rather negative on the idea of China's growing economy automatically leading to a corresponding growth in the political arena. I agree and I disagre... More About: Great , Book
Beijing Olympics Quote Of The Day
2008-08-23 07:06:00 This one from Steve Kelley, consistently excellent sportswriter for the Seattle Times, in an article entitled, "Usain Bolt electrifies Beijing , winning the 200 in a world-record time": If you're old enough to remember the first time you saw Muhammad Ali, the first time you saw Roberto Clemente, the first time you saw Magic Johnson, watching Bolt has that same never-seen-it-before feeling. More About: Olympics , Quote Of The Day , Beijing Olympics , Quote
China Too Expensive? That Depends
2008-08-22 12:44:00 All Roads Lead to China has a very helpful post, entitled, "Is China No Longer Competitive?" All Roads asks the question and then proceeds to answer it in the only sensible way: it depends. The question is asked in the context of all the media reports of prices rising in China and companies fleeing because of it. My views on this have remained constant. China was NEVER the place for everyone and it never will be. On the flip side, it is a great place for certain companies. During the absolute height of the China craze, I asked a very well run, very prosperous fishing company client of ours why it was not sending its fish over to China for processing when it seemed like all its competitors were doing so. I was so drunk on China as the place to be at that point that I assumed the client would respond by saying something about how it was planning to go to China but it just had not yet found the right people over there to get started. Instead, I was told something along the...
China Quality Control (QC). Who To Hire?
2008-08-21 13:42:00 The relatively new Quality Wars blog is looking like it will be a good source of information on quality control (QC) in China . The blog's subtitle is "The fight for quality export product in China." I especially liked two of its posts. The first, entitled, "QC…In-house vs. Outsource," deals with whether foreign companies manufacturing in China are better off doing their own QC with an employee in China or hiring an outside QC company. The post very nicely sets out the following pros and cons of each: Outsource QC to a 3rd Party QC Company Positives 1. Opportunity to work with management and trained staff who specialize in checking product, factories and production in Asia 2. Can capitalize on the acquired knowledge of a QC company who has checked various different products and understands how factories in Asia attempt to “short-cut” and cheapen products for which a standard has already been established 3. Ease and economic value of having staff contracted on a “p... More About: Hire , Quality Control , Control
Shanghai And Beijing Maps Good Enough For Tom Cruise
2008-08-21 08:37:00 Mapmatrix.com has what appear to be excellent maps of Shanghai and Beijing in pdf format. (h/t to James Fallows) More About: Tom Cruise , Maps , Good
Chinese Litigation: This Is The Way (Uh Huh) We Like It
2008-08-20 12:27:00 By Steve Dickinson When we draft contracts in China, our foreign company clients usually instruct us to have the contract be governed by foreign law and for any disputes to be decided by arbitration, preferably outside of China. This is often a mistake. One major reason is that when any form of arbitration is required, the plaintiff has no access to the very effective prejudgment remedies available within the Chinese litigation system. A recently completed matter shows how this can work. A very internationally savvy Japanese client came to us for help resolving a difficult foreign trade dispute. A Chinese company owed our Japanese company a substantial sum, but the amount was not documented by a clear contract and the exact sum owed was nowhere clearly specified in writing. We were able to convince the Chinese side to enter into a new agreement where the Chinese company agreed to an exact payment amount and a precise payment date. In our initial drafting of this agreement, ... More About: Litigation
Postcard From Beijing: Home Of Clean Air And Cheap Beer.
2008-08-20 08:42:00 Just got an email from my friend and blogger extraordinaire, Ben Ross. I thought it did a nice job encapsulating what is going on in Beijing these days and after I secured his permission to post it, here goes: Just wanted to give everybody a quick update from Beijing. For starters, this has probably been the most enjoyable week I have ever spent in the Chinese capital. The Olympics are in full swing, and although I never thought I'd say this…I hope they never end. I've been spending much of the past week enjoying clean air, drinking cheap beer, and watching world class athletes compete for the price of upper-deck Royals tickets. As I'm sure you have probably heard, starting July 20 the local government closed most factories around the outskirts of Beijing. They also implemented a new system where private cars could only drive every other day, based on their license plate numbers. The impact of the traffic regulations were immediate. (Chicago could really use a rule lik... More About: Home , Beer , Clean , Cheap
China's 10 Worst Laws
2008-08-19 18:01:00 Foreign Policy Magazine is out with a fascinating and very well done list of China 's 10 worst laws (damn, why didn't I think of that). (h/t to Jeremiah over at Peking Duck) I certainly agree with most of those on the list, but I hardly think it fair to put the New Property Rights Law on there. Here's what Foreign Policy has to say about it: What it says: A first, this law granted the right to property ownership by private persons. What it does: Although one can own buildings and fixtures on land, the land itself still belongs to the state. The Chinese government also has a right to seize private property for “a public purpose,” a vague standard that is often exploited by commercial interests. The state must “provide compensation” for such seizures, but it usually offers a menial amount. Some analysts think that giving peasants in particular the right to sell their land would have tamped down rural unrest and helped millions find work and overcome poverty, but such ... More About: Laws
On The Benefits Of Chinglish
2008-08-19 13:38:00 Very insightful post on Matt Schiavenza's blog, entitled, "Why Chinglish Exists." Post starts out with a great story on the Great Communicator (Ronald Reagan) and then explains the marketing benefits of using English, no matter how mangled: In mainland China, having English advertisements represents modernity, internationalism, and sophistication. Most Chinese people wouldn’t realize that the actual words were nonsensical, as most don’t read English. Besides, their eyes would immediately go to the (properly written) Chinese text first. Just having the words there is what matters, not what the words actually say. In addition to appealing to Chinese consumers, when I am in a foreign country (not just China), I am more likely to go into a restaurant or store if there is some English somewhere. I figure that no matter how bad the English, the effort means they probably want English speaking customers and there is a greater chance someone inside speaks at least some English. ... More About: Benefits
Beijing Olympics Quote Of The Day
2008-08-19 09:55:00 James Fallows telling us not to worry about the plethora of "I love China" decals we are seeing on so many Chinese people's faces: History is full of examples of "rising national powers" getting the big head, feeling arrogant, and doing dangerous things. That's not the main feeling I get here. It's negative Chinese nationalism, like what appeared after the protests over the Olympic torch relay in April, that we should worry about. So a confident China is to be congratulated; a victimized-feeling China is the one to be feared. More About: Olympics , Beijing , Quote Of The Day , Beijing Olympics , Quote
Beijing Olympics Quote Of The Day
2008-08-19 03:37:00 Too good a line not to repeat. It is from a Lost Laowai post, entitled, "Beijing : Chinatown in Disneyland," reflecting on the atmosphere in Beijing during the Olympics : The Beijing people seem happy in the way that the staff at a five star hotel are happy, but not in the way that a group of old men playing mahjong in a hutong are happy. More About: Quote Of The Day , Beijing Olympics , Quote
Qingdao Olympic Update (Live)
2008-08-18 12:17:00 Qingdao Olympic s Report Week Two August 18, 2008 By: Steve Dickinson From: Qingdao, China We are heading into week two of the Olympic Sailing Events here in Qingdao. It is time for a short report. In order to host the Olympic sailing events, Qingdao built a modern sailing center right in the heart of the central business district. This modern facility will be converted into a sailing school and public park after the Olympic sailing events are concluded. You can find an introduction to the sailing center here. I have an apartment on Dong Hai West Road in Qingdao, just one block from the entrance to the sailing center. So my neighbors and I have been in the middle of the preparations for the event. The primary concern of the Qingdao Olympic committee has been to ensure a smoothly functioning event. Olympic sailing is quite complex, involving numerous races on multiple courses with many different types of vessels. You can get an idea of the complexity by looking at the race sched... More About: Live , Update
Our Policies, Biases, And Conflicts
2008-08-17 22:58:00 I am a huge fan of Seth Godin's books and of his blog. His piece, "Small is the new big," is a classic. Godin is a marketing genius. On Godin's blog yestertoday, he had the following post, entitled, "Policies , biases and conflicts": I don't take advertising on this site. I never have, I don't intend to. If there's a link on this site, it's because I thought it was a good idea. I don't get paid to include links. I write about stuff I like, stuff you might like and people that I like. The only affiliate program I belong to is Amazon. All my proceeds go to charity. I don't take PR pitches. If you send me a press release, I will go out of my way not to mention you here. I'm a principal shareholder in Squidoo.com, a company I founded. I don't get paid a salary by Squidoo and all my Squidoo royalties go to charity. I get paid to write books and give speeches. I don't mention them on this blog because I want you to buy them, though, I mention them because I figure people... More About: Conflicts
Who Is Winning The Olympics?
2008-08-17 19:25:00 So is it gold medals that determine it or is it total medals? Should we give 3 points for a gold, 2 for a silver, and one for a bronze? And shouldn't team sports in something big-time like basketball or volleyball or even soccer count for more than an individual metal in synchronized dive wrestling? For more on this, check out James Fallows' post, "More on Chauvinism. medals, and Olympic TV" UPDATE: Peking Duck also addresses this issue. More About: Olympics , Winning
Global Rainmaking. What's Good For Lawyers Is Good For All.
2008-08-17 17:22:00 The International Lawyer Coach has an excellent post, entitled, "Global Rainmaking Tips: Pointers on Developing Clients Abroad." Though the post is geared towards international lawyers, its advice no doubt applies to nearly everyone trying to globalize their service business. My favorite takeaway: Lastly, having a general interest in other cultures really enhances global rainmaking. Prospective clients can sense whether a lawyer is genuinely interested in them and their culture—or is just trying to get the economic benefit of their new business. So true. More About: Lawyers , Good
Basketball As China Metaphor: The Expanded Edition.
2008-08-16 20:38:00 Will Lewis over at Experience Not Logic has an interesting post up riffing on my post wondering why China cannot produce an elite point guard, nicely weaving in the David Brooks/James Fallows/John Pomfret discussion on individualism versus collectivism. (I always love it when someone elevates one of my posts to a higher intellectual plane, figuring at least something good has to rub off on me because of it.) Will quotes this from Pomfret, questioning why Brooks viewed China's putting a 9-year old hero in the Olympics' opening ceremony as a sign of totalitarian: What am I missing here? How is a sense of responsibility, instilled in any leader, no matter how small, in any society (ever hear of a class president?), taken as a sign of totalitarian brainwashing or a propaganda campaign? Don't we hear this kind of sentiment in the voices of Americans who go down into mines or back into fires to save their comrades? "I'm the fire chief, I couldn't leave my men behind." And so wha... More About: Basketball , Edition
China Olympics Athlete Blog List And Why No Chinese Magic Johnson?
2008-08-15 14:23:00 Got an email this morning asking me why I was not writing more on the Olympics . Main reason is because I am vacationing in Pentwater, Michigan, placing me about 1800 miles from my 50" HDTV and forcing me to watch it on a 21" circa 1970s model. But, I have asked co-blogger, Steve Dickinson, who is in Qingdao right now, to give us all a report on the Olympic goings-on there. Expect that soon. In the meantime, Danwei has a great list of Olympic Athletes who are blogging on the games. But I feel compelled to discuss one thing I have noticed in watching the Olympics and that is that China 's basketball team does not have a single point guard worth a damn and I have to wonder why. Is it further evidence of the shortcomings of a planned economy? Does China pull out the great athletes for other sports, leaving only tall people for basketball? Is it further evidence of a lack of innovation or take-chargedness (I know I am making up this word, but it works) in China? Great point... More About: Magic , Blog , Chinese
Everything You Want To Know About China's Internet. Just Ask.
2008-08-14 23:31:00 Nothing new here (near as I can tell), but nice collection of facts and figures regarding China 's internet can be found on Trendspotting by going here. (h/t to China Venture News) More About: Internet
Is China Going Green, Part XVII: Increased Tax On Large Cars Says "Sor
2008-08-14 17:19:00 China Environmental Law Blog has a short post, entitled, "Big Cars Face Big Tax: Fat Cats Unfazed," nicely summarizing recent changes (to become effective on September 1) to China's car tax: Cars with engines above 4-liter capacity: 40% tax Cars with engines between 3 and 4 liters: 25% tax (up from 15%) Cars with engines below 1-liter capacity: 1% tax (reduced from 3%) The stated goal is to reduce pollution and energy use. What about just removing the heavy Chinese government fuel subsidy? More About: China , Green , Part , Large
China's Economy: The Gloom And Doom Version
2008-08-13 18:55:00 As regular readers well know, I am not a big fan of predictions regarding China or its economy. Their overall accuracy is too low. But I am linking over to one now, entitled, "Chinese and Starbucks Late Stage Growth Obesity," for two reasons. First, I know the author, Vitaliy Katsenelson, and he is one smart dude. Second, it does a nice job of analyzing the situation. But while I agree with much of the analysis (though I sure as hell would not describe Singapore as a lower cost country than China!), I aggressively take absolutely no position on the conclusion: China's economy is going to fall and fall hard. It does make for interesting reading. More About: Economy , Doom , Version
China IP: Neither Hong Kong Nor Macau Need Apply.
2008-08-12 18:37:00 Interesting post over at China Business Law on registering IP in Macau , got me to thinking of a company who came to me last year for assistance in pursuing trademark infringement litigation in China. As I always do in these situations, I first asked this company was whether it had actually registered its trademark in China. I ask this because many times American companies wrongly believe they have trademark protection in China simply because they have it in the United States. The company VP answered yes. We talked for another 20 minutes or so and then I asked him to send me all relevant documents. It was not until I got the documents that I discovered this company had not registered its trademark in China at all; it had registered it in Hong Kong . Our client had wrongly assumed that filing in Hong Kong constitutes filing in China. Registering your trademark in China does not constitute registering your trademark in either Hong Kong or Macau, and vice-versa. Oh, and whi...
Li Ning As China Law Metaphor
2008-08-11 15:39:00 Is it the Shoes? Is it the Shoes? Is it the Shoes? ... it's gotta be the SHOES!" -- Mars Blackmon, from Spike Lee's 1986 film, "She's Gotta Have It" Adidas pays around $80 million to be a sponsor of the Olympics and Li Ning gets to carry in the torch, figuratively burning much of that $80 million. This is just so analogous to the legal treatment of foreign companies in China . China laws/rules are generally the same and for both foreign and domestic companies (at least with respect to those industries where foreign companies are allowed to participate as Wholly Foreign Owned Enterprises, or WFOEs), but when push comes to shove, it certainly helps to be Chinese. Now before anyone writes in to say this is true in every country in the world, let me say that I know this, but it differs by degree and it is the degree that matters. There are certainly worse places in the world for foreign companies (including many countries that are generally considered better), in terms of l...
China As Full Grown Dragon. This Is The New Normal.
2008-08-09 23:57:00 Kent Kedl over at China Business Blog and Podcast just posted a transcript of a recent podcast in which he discusses whether China has "become too expensive." The post is entitled, "China Too Expensive, It's Time to Recalibrate 'Normal '," and in it, Kedl gives the only smart answer to the question as to whether China has become too expensive: "it depends." Read it for that and read it to hear what one of China's best and oldest (in terms of time in China) and funniest business consultants has to say about the current state of business in China. It makes for an excellent read. More About: Full , Grown , Dragon
China Olympics: The Opening Ceremony. I Wasn't Gonna Do It.
More articles from this author:2008-08-09 17:44:00 I wasn't going to do it, I swear. I had told myself not to say anything about the Olympics , figuring all those who are interested could watch it themselves, but Brendan O'Kane's post on it is just too damn funny and snarky (I am using that word for the first time on here just to seem hip) to pass up. I recommend you read it. More About: China , Opening , Ceremony , Gonna 1, 2, 3, 4, 5, 6, 7 |
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