The New US Sputnik Moment

On the eve of Obama's State of the Union address, there are reports that he will center his speech on the theme of our generation's Sputnik moment.  

"Half a century ago, when the Soviets beat us into space with the launch of a satellite called Sputnik, we had no idea how we'd beat them to the moon," Obama will say, according to excerpts released by the White House. "The science wasn't there yet. NASA didn't even exist. But after investing in better research and education, we didn't just surpass the Soviets; we unleashed a wave of innovation that created new industries and millions of new jobs."

The contemporary Sputnik moment that exists right now is the competition with China. 

When international tests revealed that students in Shanghai ranked first in math and science in December, it stunned educators. Amy Chua then jumped on this sentiment with a provocative op-ed in the WSJ titled Why Asian Mothers are Superior to promote her new book, it created a fierce national debate that brought out the "USA! USA!" chanting American defenders/Chinese critics, here, here and here.

Although there could be debate on the validity of this the best way to teach children and the actual competitiveness of US education, the underlying theme is clear. While US kids are playing video games and out having fun, Chinese kids have private tutors and Sunday classes. While the US is cutting education budgets all over the country, China is increasing its own. No debate will change the fact that Chinese Confucian culture puts greater emphasis on education. Below is a great clip of Nicholas Kristof discussing this issue.

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Thomas Friedman actually first started the Sputnik discussion in an op-ed in late 2009 addressing China's huge investment in green energy with governmental support.

without declaring it, China is embarking on a new, parallel path of clean power deployment and innovation. It is the Sputnik of our day. We ignore it at our peril.

This sentiment has prodded both the Secretary of Energy and Commerce to refer to the Sputnik challenge in renewable energy, investment in infrastructure and high tech computing in recent speeches. 

While the US is bogged down with its fake repeal of "Obamacare", partisan bickering, tax cuts for the rich and bureaucratic hoops, China is strongly supporting the future renewable energy sector. Hopefully Obama can utilize the unifying sentiments from the Tuscon shooting and focuses it on the country's future. Who knows if the Republicans will listen. 

US Press Makes Hu Jintao Sweat Over Human Rights Question. Really??

I have been eagerly watching the coverage of the Chinese President, Hu Jintao, and his state visit to the US for the past 2 days. It has been made a big deal by media in both countries and occurs at an interesting point in China/US relations as China is now the 2nd largest economy in the world, surpassing Japan.

I read all the articles I could find online from Foreign Policy, Time and other sources to give me a sense of public discourse on the subject. Not only did I find more ideas for future blog posts, it gave me a feel for how the US viewed this visit and what the media wanted to accomplish.

The thing that most stood out before President Hu's arrival was the inclusion of a media press conference held with Obama. Multiple media sources stated that this was a concession the Chinese had to make in order to "get the State dinner." It would also be a symbol for human rights and free press to see the red China president take questions from a free media.

As the official "day of pomp and ceremony" arrived, I waited for the highly anticipated joint press conference. After brief opening statements from both leaders, 2 US and 2 Chinese reporters would be called to ask questions.

When the 1st US reporter began to ask his question, I knew it would be on the issue of human rights. It fit perfectly with the "finally, we can put him on the spot" mindset established in the US media. After the reporter asked his long question to Obama, he asked Hu:

How do you justify China's record, and do you think that's any of the business of the American people?

In reality, this was a softball question. It fits perfectly with (what I believe) the established Chinese answer:

A major part of human rights is providing citizens with food, shelter, jobs, healthcare, ect. and China has done that by lifting 500 million people out of poverty in the past (whatever) years. And no, its not any of your business because we believe in non-interference wrt other countries' internal affairs.

However, as I anticipated this answer when Obama first finished his, there was only silence. Hu Jintao didnt answer the question?! Instead he stood their with a confused look while the US media waited for his answer. After a brief silence, he went on to take a question from the next Chinese reporter. 

I personally never thought he tried to dodge it. The question was too easy. Instead, I thought that he probably didnt hear it. After the first question was raised in English, Obama answered in a long monologue. Only after that was there a translation of the question and Obama's answer. The translator also SUCKED! Not only did he constantly stumble on his Chinese through out the press conference, he translated many things wrong and omitted a lot of content.

However, if Hu didnt answer the question, I knew there would be a problem.  The major news in the media following would focus on it and say, "we put him on the spot and he just dodged it", "thats what an commie does" and "thats why the US system is so much better", ect. That would be terrible for China's rep.

Thankfully, the 2nd American reporter addressed the initial human rights question. After explaining he didnt hear it initially, President Hu gave his answer.

Thank god he answered it or all hell would've broke loose or will it anyways?

Today, while reading coverage of the visit online, I stumbled on Dana Milbank's op-ed piece on the Washington Post. The response and description of the press conference from the day before was exactly what I had anticipated.

Something about human rights just doesn't translate for Chinese President Hu Jintao.

President Obama granted him the full state-dinner treatment that President George W. Bush denied him five years ago - but in return, Hu had to put up with a news conference, which he had refused to do when Obama visited China. For a repressive ruler, facing a free press is about as pleasant a prospect as attending the Nobel Peace Prize ceremony.

After the leaders' standard opening statements full of the blah-blah about bilateral cooperation, the Associated Press's Ben Feller rose and asked a gutsy, forceful question.

Obama answered. The translator translated. All eyes turned to Hu - who said nothing.

Instead, he looked to a woman from China Central Television - the state-run network that answers to the Communist Party's propaganda department - who tossed him a softball about "friendship and mutual understanding."

But the next questioner, Bloomberg's Hans Nichols, gave Hu a lesson in press freedoms (by addressing the first not-answered question). 

In Beijing, that impertinence would get a reporter jailed. But Hu wasn't in Beijing. During the translation of Nichols's question, Hu held a palm up and smiled, as if he couldn't see what all the fuss was about. "Because of the technical translation and interpretation problem, I did not hear the question about the human rights," he explained - falsely, as it turns out.

It was a good moment for the American press. Feller and Nichols put the Chinese leader on the spot in a way that Obama, constrained by protocol, could not have done. On Wednesday afternoon, Obama and the press corps were justifiably on the same side, displaying the rights of free people.

Hu, however, ignored that question in favor of the gentler one from his employee at Chinese television. As luck would have it, Hu was perfectly prepared for the question, and, in his reply, looked down to read statistics from his notes.

Reporters glanced at each other, puzzled over Hu's ignoring of Feller's question. During the interminable translation into Mandarin of Hu's answer to the Chinese reporter's question, Obama flashed a grin at Gibbs.

Hu, his forehead shining, had another plant waiting in the crowd, a reporter from the state-run Xinhua news agency. But before Hu could get that lifeline tossed his way, the microphone went to the American side, where Nichols demanded an answer to the human-rights question. This time, Hu couldn't claim it was lost in translation.

"China is a developing country with a huge population and also a developing country in a crucial stage of reform," he explained. "In this context, China still faces many challenges in economic and social development, and a lot still needs to be done in China in terms of human rights."

No wonder Hu doesn't like questions: He might have to give an honest answer.

Of course it was a good moment for the US press. You posed a hard hitting question and made the President of China squirm. You made him sweat and succumb to the demands of the righteously free media. USA! USA! USA!

WSJ Tells the Truth on US/China Trade Deficit

With all of the anti-China mongering before the recent midterm elections, and constant pressure to adjust Chinese USD exchange rates, finally a US media source addresses the real issues.

In yesterday's WSJ article, Not Really 'Made in China', the author makes the point that the iphone, although thought of as ubiqutously American actually added almost 2 billion dollars to the US deficit with China last year.

Two academic researchers estimate that Apple Inc.'s iPhone—one of the best-selling U.S. technology products—actually added $1.9 billion to the U.S. trade deficit with China last year.

How is this possible? The researchers say traditional ways of measuring global trade produce the number but fail to reflect the complexities of global commerce where the design, manufacturing and assembly of products often involve several countries.

"A distorted picture" is the result, they say, one that exaggerates trade imbalances between nations.

Trade statistics in both countries consider the iPhone a Chinese export to the U.S., even though it is entirely designed and owned by a U.S. company, and is made largely of parts produced in several Asian and European countries. China's contribution is the last step—assembling and shipping the phones.

So the entire $178.96 estimated wholesale cost of the shipped phone is credited to China, even though the value of the work performed by the Chinese workers at Hon Hai Precision Industry Co. accounts for just 3.6%, or $6.50, of the total, the researchers calculated in a report published this month.

Since the traditional trade deficit/surplus calculation counts the entire wholesale cost of the iphone as part of China's trade, there is a distorted view of the actual situation.

The vast majority of Chinese exports are made with various components that are first imported to China. Therefore, even if China implements currency exchange inform -  the traditional view of US politicians, very little would actually change with respect to Chinese exports. Although components of cost will rise for Chinese manufactures (ie. labor, overhead), the costs of parts that are foreign imported actually decreases for the factory. This means that the final price is about the same as the price before the currency adjustment. 

This means that the new currency policy would have little or no effect on the competitiveness of Chinese products wrt to American products. Although it would give China greater purchasing power for American goods, unless the US lowers export restrictions on high tech goods, exports wont increase much either.

Although there are issues with current US/China trade, its important for Americans to better understand that its not a black and white cause of Chinese exchange rate policies. There needs to be better analysis of the fundamental problems with the US economy and less Chinese fear-mongering. Thank you, WSJ for helping out. 

China's (Optimistic) Future

During this current global recession and financial crisis, I've had many debates with fellow American friends living in Shenzhen on what will happen in China in the future. My friends (some of them have been in China for more than 5 years now and speak Mandarin fluently) often believe in a similar view as western media. 

"Chinese people let the totalitarian Chinese gov't rule in exchange for economic growth - at least 8%."

If this statement holds true, the current closures of thousands of factories directly linked to the export industry and the millions of workers that has join the unemployed poses a huge problem for the stability of the gov't and society in general. Recent unrest and footage of protesting workers have shown to be initial reactions of this issue. One of my friends even hypothesized that China will invade Taiwan just to distract the Chinese people and to increase nationalism sentiment.

I personally don’t understand where this "trade-off" between the Chinese people and gov't idea came from - because I disagree with it whole-heartedly. Although there have been riots - they have been relatively isolated and usually protesting justified inequalities perpetrated by local officials (often corrupt). In the video above, the toy factory closed unexpectedly and didn’t pay any of its workers. Is that the government's fault?

I personally see Chinese people as hard working, resilient people who have a history of getting through hard times. My parents lived through hard times with rationing and the Cultural Revolution where no one had anything. Just a few years ago, my hometown Harbin, didn’t have water for a week because of a chemical spill upstream that polluted the Songhua River. My extended family and grandparents still live there. Did people panic and riot? No. Everyone worked together to get through it. 

Look at the recent earthquake in Sichuan and the aftermath of that event. China is populated with people pulling together through hard times. In the absense of gov't help, villiagers banded together to help each other. People did what they could. While this happened, the gov't mobilized quickly and was on site immediately to help. Compare this to the 2005 Katrina disaster where the gov't didnt do anything for many days at the same time people were just waiting for people to "save them" at the New Orleans Superdome. 

The definition of a Chinese person's character is that he first blames himself before blaming someone else. He works to improve his own situation rather than waiting for the government to do something (Only when it’s too unfair do people take action). He is adaptive and stable. 

My outlook for the future China has always been optimistic. Here are the steps I foresee:

1. Although Chinese exports industries are getting hit hard; this is a natural situation that will realign the Chinese economy. Different businesses have already started to focus on selling their products, once destined for the US and Europe, in China.

2. The Chinese consumer, although not too confident currently, has savings and an ample appetite to spend. As Americans are riddled with debt and are saving more, Chinese consumers are still spending. Just walk around restaurants and malls and you won’t see any signs of recession here in Shenzhen. 

3. Migrant workers who lost their jobs are not going to riot. They are going to go home, start families, start businesses and live life. Less people are going to come back into the urban areas after Chinese New Year. In a recent report, China estimates about 20 million people have returned home.  Most people have made money in the past and have it saved up at home. And since living costs are drastically lower back in the smaller towns and villages, the savings go a long way. 

4. Thousands of 海归 (haigui - overseas Chinese) have returned to China - many with high level degrees. Since opportunities in the US, Europe and other areas of the world are gone, they have come back to China to find jobs. This will greatly enhance Chinese competitiveness and future development. 

5.  Local and provincial governments understand the importance of high tech industries as well as economically sustainable green technologies. This focus will help future economic prospects.

6. The government is trying to aid in everything it can. It’s helping small businesses get loans through banks and helping consumers spend with subsidies. More importantly, the Chinese stimulus package focuses on infrastructure projects that will greatly improve Chinese transportation efficiency. During the last Asian Financial Crisis, China's lead in investing in its infrastructure helped it sustain economic growth for more than 10 years. 

7. As the economy starts to realign away from exports, the Chinese gov't will slowly sell off US debt and appreciate the Chinese RMB to higher levels. With a higher RMB, China will then go buy even more assets all over the world to further its future development. 

Shenzhen Mass Transit: For the People

During the Spring Festival break, I was able to spend time and talk with my extended family at the different dinners and tennis outings we had. At one of the outings, I had to chance to discuss the Shenzhen public transportation with my aunt's colleague - an official who is in charge of government municipal projects. Currently Shenzhen is going through a massive expansion of its metro system. 

When discussing the effects of the economic crisis and the current government investment in infrastructure, our family friend mentioned that currently, the Shenzhen metro system had an operating loss of 500 million (五亿) RMB in the past year. That's a lot of money. 

I was first stunned at this number and was interested in why this is the case. The Shenzhen metro system is already the most expensive in the country with a graduated ticket price based on distance. Also with increasing traffic congestion, more and more people are choosing to ride the metro everyday in their commute. Even with these factors, the operating cost of the metro is still much higher than the revenue. 

As the official explained:

The metro runs as a regular company, but with the Shenzhen government as the controling party, we set the ticket prices. Our goal is to provide affordable transportation for Shenzhen citizens.  We make sure that the bus system and the metro system are not profit driven so that we can give the citizens a great service at a reduced price. This is also why all people over the age of 65 ride free of charge as well. 

As the expanded network comes online, we believe that even more people will ride the metro based on its convenience. Shenzhen will be a much different city. We believe the 500 million loss we incur every year will be reduced but in reality, that isnt too important. Cheap, reliable service to the people are.

When comparing the Shenzhen metro system with the NYC subway, there is a huge difference in thinking. Because the NYC system is profit based, price fares are constantly rising with subsequent lower service and convenience. I remember a few years ago, the MTA wanted to increase the fare price because of a loss while trying to hide millions of dollars worth of revenue from the public. 

The government promoting public transportation in China not only helps the citizens, it helps reduce the use of private cars and improves the enviorment. Currently China is building more than 10 different subway lines across the country with more planned. This is on top of the increased investment on railroads and other mass transit systems. 

Expat Frustration in China

China is a frustrating place.

There i said it. Everyone is thinking it. You know you are too.

I would like to first state that I love China. I was born here and have been living here for more than 2 years. I have family here and a lot of friends too. I feel a incredible pride of being Chinese in the current state in the world as well as understand the burden of its history. I really do understand. It's in me.

As much as I enjoy living here, I have found China to be an incredibly frustrating place to live. People from the outside would make general arguments for this fact... ie. the water is dirty or the air is polluted, but the real frustration comes from all of the little things. These little things cant be seen or even understood by someone who hasnt lived in China. It builds up slowly until one day, you know you have to just get out of here.

When one first moves to China, everything is new and exciting. It can even initially be fun and interesting as something that is embrassed. However, given the right amount of time, these things become less fun/interesting. It's ok to laugh it off for a little bit of time, but after actually living with it everyday.... things change. Of course all of these little things can be properly explained and put into context of cultural difference, social development, a large population, ect. As a visitor in any new country, one has to accept the local society and its customs. However, that doesnt make day-to-day life easier.

So what are these little things? Here's a list:

1. The inability to just relax. The sheer number of people in China makes it so that is are people EVERYWHERE. I have never been anywhere where it was just me and no one else - where I can take a deep breath and get away from it all. 就不能安静下来. Even in places like your own apartment, the bathroom or anywhere else private, there are tons of ambiant noise caused by all of the people.

2.The horrible service. Although the general service is improving, it still lacks a huge amount to a solid benchmark. Examples include:

• Waiting for hours in line at the bank where there is only 1 teller serving dozens of people
  
• Any small mistake on any form will mean redoing that form
  
• The amount of BS paperwork and incovenient transaction materials for just about any service including banking, general utilities, phone, ect.
  
• Really long waits for any service at restaurants where a question or request can be left unanswered for more than 15 minutes
• Some employees telling you the wrong thing while managers tell you the right thing
• Basic lack of common sense where the idea that the "customer is right" doesnt exist
• General inefficency
  

3. Lack of common courtesy by (not all) people. This issue depends on city and location, but it definitely happens just about everywhere. It is worst in a place like Shenzhen where there is a large migrant community. Although not all people are so bad, the small percentage of 1.3 billion is a lot. Some examples are:

• Spitting on the street to spitting on the floor indoors and even airport terminals
  
• Blatent littering when trash cans are close by (I've found myself picking up after other people)
• Smoking in McDonald's or other non-smoking places
• Not waiting in line for anything and pushing your way through to the front
• Really loud disturbing conversations in restaurants or on cell phones

4. Life threatening transportation. With more and more cars on the roads everyday, the streets are not only more conjested but even more dangerous. Some basics are:

• Taxi drivers swirving left and right in and out of traffic
• Drivers sometime ignoring red lights or going in the wrong way on a street
• Cars parked waiting for someone along the side of the road that blocks off traffic for
• People standing in the street for buses
• Jaywalking on really busy 8-lane intersections
• People dragging carts along the street filled with random stuff.

5. For people not of Chinese decent, they get stared at all the time and approached with hi's, hello's and impromptu conversations. That's cool for a while but it gets annoying too.

All of these isses and problems all combine after a certain amount of time to build up incredible frustration in just about everyone I know. Good people become the epitome of the "ugly American" with this built up in their system.

I was talking to a friend of mine who is the nicest girl you would ever meet. She told me a story of how she just flipped out at a taxi driver after he said he couldnt take her to her destination becuase he was about to go off duty and had to return the car. She felt horrible afterwards and felt bad for the taxi driver who was only doing his job. That didnt prevent her from venting out yelling at him. That's something I would never expect from her.

Even my mom agrees. She has lived 60% of her life in China and 40% in the US. She comes back on business trips every year and loves it for a while. However, she would never be able to live here for an extended amount of time anymore.

I've seen myself become increasingly frustrated over time as well. After a while, you just cant help it but to be chippy douche to people, even friends. It's just one of those things. Maybe this is why all of the Chinese rich people are moving out to places where there are less people.

The only remedy is to get out of China for a while and go on vacation. The key is to get back to a place where these small things dont exist, or that they exist but are interpreted by a tourist mindset of acceptance, not a constant annoyance. Thank goodness Shenzhen, is so close to Hong Kong, Macau and SE Asia. A couple of days on the Thailand beaches really does wonders. Bali, here I come.

Sex, Love & Money in China

Anyone who knows anything about Shenzhen knows that it is the "wild wild west" of Chinese capitalism. Although some would argue Shanghai or Hong Kong as the major financial centers, Shenzhen is the real place where all the most able and capable entrepreneurs go. Maybe in 10-20 years, Shenzhen will develop into a international city, it is still currently a culture-less metropolis with a specific focus on money and everything money related.

I like describing Shenzhen as a melting pot of the most able people in China. The young worker in the factory is usually the eldest and most responsible or able in his/her family while the company owners are hotshots from every part of China. It is certainly a weird and unique place with a young population that like to get ahead.

One of the more interesting and somewhat unfortunate aspects of his money-hungry city is its hidden cultural intersection between sex, love and money. Here's the rule: those who dont have money will do a lot to get it. In this case it has led to a system of mistresses and

In a article published online by Telegraph.co.uk entitled "China girls: 'The only luxury we can't afford is love'", it describes the current and growing issue of 2nd wives and "concubines" in China. It follows a variety of individuals who are in this community of "二奶 [ernai]" and discuss the various social, political and personal issues that are involved.

Anyone who lives in a major city in China can see the various signs of this system. It is as simple as going to a club/bar on a weekend and seeing all of the 40 year old guys sporting the beer belly with a young and attractive girl in her 20s.

Even yesterday as I rode the elevator down from my apartment building at dinner time, I chatted with a really pretty girl in her 20s. I noticed that she was wearing expensive jewlery, clothing while radiating Channel purfume. As we parted ways outside of the building after some small talk, I saw her go directly into a high priced Mercedes waiting for her, driven by a 40-something guy.

Most 二奶 receive "rental on a fashionable penthouse in one of the city's dazzling white apartment blocks, plus a 5,000-yuan (about £350) monthly budget for clothing, haircare and skin-whitening treatments. That's more than double China's average monthly income."

In turn her 'husband' - a successful industrialist whose factories stud mainland China - entertains Little Snow once or twice a month. The nights are raucous, but the sex lacklustre, to Little Snow 'a function no different from brushing my hair or drinking a glass of water'. He's up before the sun rises, sometimes leaving a rose on the pillow.

Is this wrong? Is this right? I don't know. However, I do know that this is all created by the income disparity that exists between people from the countryside and those from the cities, between the young and old, between women and men.

As long as men in China have most of the wealth and the distrubution disparty between the different classes are so large, this system will always exist. As the Telegraph article states:'

The country has changed rapidly; but Chinese thinking hasn't caught up with this new reality,' says Yang Erche Namu, aka Namu, one-time mistress to a diplomat and now a postergirl for modern Chinese feminism, whose ballsy bestselling books urge Chinese women to pursue emotional and financial emancipation. 'Some men are getting very rich, with cash to throw around, but at the same time the wealth gap is widening and the countryside is full of young girls living in poverty. So it's natural that love becomes a transaction - it's a simple case of supply and demand.'

In addition to the young 2nd wives, there are also 2nd husbands, gigalos or 鸭子 [yazi] in Shenzhen. While this usually occurs less frequently, it is still a part of the culture. A recent Malaysian article described a young, 22 year old Shenzhen man blackmailing his 50 year old wife for 1 million HKD.

This just shows that its all about the money in Shenzhen.


Note: Many people have written about the issues relating to prostitution and brothels in Shenzhen and other Chinese cities. I have been recently reading China Inc. by Ted Fishman and it gives a great summary of the situation for girls who go into the pay-for-sex industry and its links with economic and financial struggles.

Also, just to show that Sex & Money is related in every culture, below is a recent ABC News report describing the growth in the US brothel service in the current bad economy.

China Takes Action. US Hangs Out

For the past few days since Barack Obama was elected President, I've been trying my best to keep up with the news about his presidential transition and the economy. Although it has only been a few days since the historic election, there has already been a lot of politics and fighting between the various interest groups in the US.

The main issue currently in the US is the economy. As GM is almost going bankrupt and more people hit the unemployment lines everyday, the country has sought a change from the current status quo and is looking to Obama as the savior. It seems that most people want him to start doing things right away and try to pursue his policy direction he laid out during his campaign.

Obama has announced his desire for middle class tax relief, help in healthcare and unemployment insurance for the poor as well as investments in infulstructure and public work projects all over the country to stimulate the economy. The issue right now is that:

1. He's still not the president. He only becomes president in January.
2. Even though he has a "mandate" from the election, he has to get past the lame-duck congress and lame duck president bush to see any of his proposals become law before he's sworn in.
3. Even when he is officially president, he will still have to play the politics game back and forth with congress to get anything done. As we've seen the $150 billion in amendments and pork addes on to the $700 billion bailout of Wall Street, there will definitely more of the same to any new stimulous package.

So in the midst of an economic crisis for the ages, the US government cant act because of procedural issues and infighting.

On the flip side, look at China. Just before I went to bed last night, CNN reported that China, in all its "red, commie" glory, has announced a $586 Billion spending plan for the next to years to bolster its economy in this downturn. Without too much debate or infighting, China has acted urgently to combat this crisis.

And surprise surpise, the investment is for "infrastructure and social welfare" projects/programs. I guess this is what Obama was thinking about doing in his plan. Now lets see how long it takes the US to do the same exact thing as China.

Unity in the USA and China

I spent last night with a couple of fellow American friends to watch the complete and full election coverage on our little 3-monitor setup here in Shenzhen. After a rather quick electoral landslide, Obama will become the next President of the USA. This almost improbable moment just years ago - in a country with a racist and problematic past, the US voted for change.


Even though I am on the other side of the world, watching what is going on through video monitors, I could still feel the great aura of the moment. I could almost feel the excitement and sheer awesomeness felt all over the US. Many friends emailed, texted and even called me talking about their excitement, where they were and what was going on. Some partied in the streets of Harlem on the 125th and some were present at his acceptance speech with 70,000 others in a Chicago park. Just a great moment.

This moment, that brought together millions of Americans created a new communal feeling of togetherness and unity that has not touched the US for such a long time.

In actuality, this moment resembles a lot of the past few years in China. Yes its true. As much as a lot of people criticize China for "autoritarian gov't" and other "non-democratic" ways, it is a place that has this collective conscienceness.

Thinking back, I remember when China was awarded the 2008 Olympic games way back in 2001. I was in China for a few days and saw the millions of people celebrating in Tiananmen Square and all over the country. I remember the Sichuan earthquake and how that brought the Chinese people together. I experienced the sheer awe-inspiring 2-week Beijing Olympics and the subsequent liftoff and the 1st space walk of the Shenzhou 7 mission. All of these events (among others) are underlying reasons why China has been able to become what it is today.

Again this feeling of community, the collective idenity and conscienceness creates a great feeling of unity. With the looming economic crisis increasing in scope, this is exactly what the US needs. Just as it united the USA after the attacks of 9/11, it will make the country resiliant and powerful again. Even though i'm over here in China, i'm proud of my country and see a bright future ahead even with the problems that will come. For a country to be able to build the A-bomb and go to the Moon, nothing is out of reach.

Shenzhen Opens Office in NYC to Promote Trade & Relations

In a recent press release published online by Marketwatch, on Oct. 27, 2008, Shenzhen will officially opened a office in New York City.

The City of Shenzhen, China announced today that it will be hosting a luncheon ceremony on October 27 at the Marriott Marquis in New York, to celebrate the opening of the New York Representative Office of Shenzhen and to discuss key economic developments as well as business opportunities between Shenzhen and the U.S.

The opening ceremony will not only include government officials and representatives of Shenzhen and the Chinese consulate in NYC, but it will also include prominent leaders of major electronics and financial firms based in Shenzhen.

What seems most likely is the continued expansion of ties in the financial and high tech industries. Shenzhen has already planned a NASDAQ exchange for small and medium sized companies that can supplement the already existing Shenzhen Exchange. It is also focused on decreasing the number of value-added companies (that produce toys for example) and promote the high tech industry. This would push it away from just a factory town to a city of innovation, design and creatvity.

Great move by Shenzhen. Silicon Valley anyone?

Expat Exodux = Easy to find a Job in Shenzhen

In the past few months, there has been a huge exodus of foreigners from Guangdong province. Due to the Olympics, China employed a lot of regulations that could help control the flow of foreigners into China. Not only was it much more difficult to obtain a visa but it was almost impossible to get a visa in Hong Kong.

Also, foreigners who were living in China and working on Tourist visas were shooed away. This usually stemmed from police approaching expats on the street to see adaquate identification. For people who were employed, he/she faced increased scrutiny in applying for a work visa. While most of these regulations were a surprise to expats, they were all on the books but werent really enforced until recently.

All of these efforts led to a huge decline in the expat community in Guangdong. As a friend of mine described to me, supposedly as much as 90% of the foreigners in Guangdong had left before the Olmypics started. That's just crazy.

Just walk around the Shekou area and you can see the effects. Once filled with foreigners from all over the world, Shekou is now mostly empty. Business is down for both restaurants and bars. I went there on a night out with friends this past Wednesday and there were barley anyone there. Woah.

Another side effect of this exodus deals with jobs. Many foreigners working in Guangdong were employed as project managers for various trading or manufacturing companies - usually under tourist visas. Since most of these people have left China, it has created a vaccum of talent for people seeking jobs. It is now incredibly easy to find a project management job in Shenzhen that pays a very attractive salary. I would assume this is the case as well in other cities like Beijing and Shanghai. It was always easy to find English teaching jobs in Shenzhen, but it's definitely even easier now.

As the US economy tanks and the world economy goes into a recession of sorts, I see China becoming an increasingly attractive place for young people to come to. Recently, another 100+ newly college-grad English teachers have deceded on Shenzhen through the CLTC Program's deal with the Shenzhen Government Education Bureau. Students are arriving every semester to study Chinese at different universities all over the country from places like the USA, Europe, South America, Mexico, Korea and Japan. Even people who have gone back to the USA are returning to China for round 2.

If you want that job, get over here early.

WWE Wresting is in CHINA! WHAT?!?!

As I'm writing in my blog right now, I have the Guangzhou sports channel on (Channel 67 on Shenzhen's local cable). To my surprise, the programming being broadcasted right now isnt a European Champion's League soccer game nor is it a replay of an 2008 Beijing Olympic event - that has been often on TV recently. It's not even a boring strategy guide of Chinese chess.

No. It's WWE's Monday night RAW with John Cena wrestling in a 2 on 1 event.

What?!

Yes. You heard it here. The World Wrestling Entertainment is here in China. As I've noticed in the brief time I've been checking the show out, it seems like unedited segments of the live events broadcasted in its natural form. The viewer can hear the English broadcast, plot lines and music but the entire production is voiced over by a Chinese commentator. This guy explains each wrestler's history, their technique and special moves, the plot lines, situations and almost a play-by-play of the matches. I wonder how these commentators made up the Chinese vocab for a Stone Cold Stunner...

Best Quote: "[In Chinese] Don't do these submission moves at home, kids."

What is with WWE events being broadcasted in China of all places? What are they thinking? Although I dont know if fake wrestling is as popular here in China as it is in the midwest and south in the USA, I do know that the WWE is making a play at the China market just like the NBA, MLB, NFL (not to mention just about all other western companies).

In my opinion, it's incredibly funny that this is on TV here in Shenzhen, China. If Chinese people actually watch this programing, what would they think about how crazy US sports are. I wonder if the China version shows the girls wrestle in skimpy bikinis too??

2008 Beijing Olympics: Comparing US's NBC and China's CCTV Coverage of the Opening Ceremonies

I finally came back to Shenzhen after staying in Beijing for the Olympics and post-Olympic festivities for about a month. After a few days of movie watching, video games playing and takeout in my new apartment, I finally decided to venture out into the local neighborhood in the Nanshan district.

At the local bootleg 5RMB bootleg DVD stand, I was able to get the new Mummy 3 as well as a great version of the Iron Man and Batman movies. (Note: Although the government has definitely cracked down on the sale of bootleg DVDs for the past few years, they are still found in different neighborhoods sold by a few people.) To my surprise I also found the DVD with the full version of the NBC broadcast of the 2008 Beijing Olympic opening ceremony. Wow.

After watching the live ceremony in Ditan park in north Beijing with 5000 people and rebroadcasts on Chinese TV multiple times, I wanted to see the NBC version. (My friend actually interned for NBC during the Olympics and helped edit and translate footage for different events.) I wanted to see how the US viewed the opening ceremony and the games. Remember back in 1996, Chinese people in America protested Bob Costas for his comments about Chinese athletes.

Overall, the coverage was very positive. Here are some of the things I saw:

• NBC did an excellent job with the political issues surrounding China hosting the Olympics. They showed China in a pretty positive light with only a few comments referencing political issues. You could even see the commentators tread lightly on the political issues.
• NBC camera work during the artistic portion at the beginning was better than the Chinese CCTV coverage. CCTV spent a lot of time focused on specific performers during each stage while NBC used many more wide-camera angles to get the big picture.
• Bob Costas and Matt Lauer “warned” the American viewers about the sheer size and scale of the ceremony before it started. They also commented during the initial drum performance that viewers might consider it “awe inspiring and perhaps somewhat intimidating.”
• In his post Opening Ceremony press conference, Jiang Yimou explained that the entire cost of the ceremony was less than the previous opening ceremony of the Doha Asian Games held in 2007, held in a oil rich Arab country. He wanted tog et the maximum effect for the least cost.
• A huge amount of emphasis was put on the importance of the Olympics in China and the “overwhelming sense of pride the Chinese people in the days leading up to it. The same amount of importance was also on the idea of “harmony” in the Chinese psyche and the theme of the Olympics.
• Commercial interruption on NBC really sucks for an event like this. No commercials in China. FYI, the transitions were pretty flawless just like the rest of the ceremony.
• Quotes by Bob Costas: “Woah” (when Li Ning was lifted up to light the flame) and “When it comes to opening ceremonies, retire the trophy.”
• NBC invited their China expert to co-host and give more perspective on the games. He did an excellent job with the symbolism invoked in the performance as well as more interesting tidbits into Chinese history. A lot of the political issues were also put in a historical context, something a lot of Americans lack while looking at China.
• A great explanation of the combination of people doing "karate" around a group a school children was just an example - a harmony of man with nature is the only hope the children of the future have to solve all of the problems in the world.
• There were a lot of shots of the members of the “Redeem Team”, the USA Men’s Basketball team. With a lot of star power and constant presence, Lebron James, Jason Kidd and Kobe Bryant were repeated shown to be taking pictures with other athletes from different countries.
• While CCTV commentators were part of the event, reading scripted material that aided the audience in every piece, the transitions and symbolism in very Chinese artistic language, the NBC trio was very spontaneous, joking and dumbstruck by the show. This was probably because they weren’t “in the know”

NY Times is Beginning to Like China

During the entire Olympics period, the NY Times has many more "objective" articles regarding China. Recently however, they've taken it to another level - basically suggesting that the US should learn from China. Previously it was the interesting pros of having an authoritarian government and the benefits of being a communal society. Now its the inward focus and own-nation building.

In today's NY Times op-ed article A Biblical Seven Years by Thomas Friedman, China's emergence in its 7-year preparation for the Olympics is compared to the US and the 7 years since 9/11 and translated into an election contest between Obama and McCain.

Without even getting into the article itself, it is quite amazing the amount of "good press" China has gotten in the past few weeks because of the Olympics. It seems that the success of these Games have given China a better platform to showcase its achievements. Even though the human rights and Tibet issue is always raised in any general article, at least it is moved down further near the end of the article.

Here's the complete NY Times text:

After attending the spectacular closing ceremony at the Beijing Olympics and feeling the vibrations from hundreds of Chinese drummers pulsating in my own chest, I was tempted to conclude two things: “Holy mackerel, the energy coming out of this country is unrivaled.” And, two: “We are so cooked. Start teaching your kids Mandarin.”

However, I’ve learned over the years not to over-interpret any two-week event. Olympics don’t change history. They are mere snapshots — a country posing in its Sunday bests for all the world too see. But, as snapshots go, the one China presented through the Olympics was enormously powerful — and it’s one that Americans need to reflect upon this election season.

China did not build the magnificent $43 billion infrastructure for these games, or put on the unparalleled opening and closing ceremonies, simply by the dumb luck of discovering oil. No, it was the culmination of seven years of national investment, planning, concentrated state power, national mobilization and hard work.

Seven years ... Seven years ... Oh, that’s right. China was awarded these Olympic Games on July 13, 2001 — just two months before 9/11.

As I sat in my seat at the Bird’s Nest, watching thousands of Chinese dancers, drummers, singers and acrobats on stilts perform their magic at the closing ceremony, I couldn’t help but reflect on how China and America have spent the last seven years: China has been preparing for the Olympics; we’ve been preparing for Al Qaeda. They’ve been building better stadiums, subways, airports, roads and parks. And we’ve been building better metal detectors, armored Humvees and pilotless drones.

The difference is starting to show. Just compare arriving at La Guardia’s dumpy terminal in New York City and driving through the crumbling infrastructure into Manhattan with arriving at Shanghai’s sleek airport and taking the 220-mile-per-hour magnetic levitation train, which uses electromagnetic propulsion instead of steel wheels and tracks, to get to town in a blink.

Then ask yourself: Who is living in the third world country?

Yes, if you drive an hour out of Beijing, you meet the vast dirt-poor third world of China. But here’s what’s new: The rich parts of China, the modern parts of Beijing or Shanghai or Dalian, are now more state of the art than rich America. The buildings are architecturally more interesting, the wireless networks more sophisticated, the roads and trains more efficient and nicer. And, I repeat, they did not get all this by discovering oil. They got it by digging inside themselves.

I realize the differences: We were attacked on 9/11; they were not. We have real enemies; theirs are small and mostly domestic. We had to respond to 9/11 at least by eliminating the Al Qaeda base in Afghanistan and investing in tighter homeland security. They could avoid foreign entanglements. Trying to build democracy in Iraq, though, which I supported, was a war of choice and is unlikely to ever produce anything equal to its huge price tag.

But the first rule of holes is that when you’re in one, stop digging. When you see how much modern infrastructure has been built in China since 2001, under the banner of the Olympics, and you see how much infrastructure has been postponed in America since 2001, under the banner of the war on terrorism, it’s clear that the next seven years need to be devoted to nation-building in America.

We need to finish our business in Iraq and Afghanistan as quickly as possible, which is why it is a travesty that the Iraqi Parliament has gone on vacation while 130,000 U.S. troops are standing guard. We can no longer afford to postpone our nation-building while Iraqis squabble over whether to do theirs.

A lot of people are now advising Barack Obama to get dirty with John McCain. Sure, fight fire with fire. That’s necessary, but it is not sufficient.

Obama got this far because many voters projected onto him that he could be the leader of an American renewal. They know we need nation-building at home now — not in Iraq, not in Afghanistan, not in Georgia, but in America. Obama cannot lose that theme.

He cannot let Republicans make this election about who is tough enough to stand up to Russia or bin Laden. It has to be about who is strong enough, focused enough, creative enough and unifying enough to get Americans to rebuild America. The next president can have all the foreign affairs experience in the world, but it will be useless, utterly useless, if we, as a country, are weak.

Obama is more right than he knows when he proclaims that this is “our” moment, this is “our” time. But it is our time to get back to work on the only home we have, our time for nation-building in America. I never want to tell my girls — and I’m sure Obama feels the same about his — that they have to go to China to see the future.

2008 Beijing Olympics: Medal Count Politics

Before the Olympics started, my friend Amy, made a wager with one of her Chinese coworkers which country would win the most gold medals in the Olympics. For 100RMB (15USD), Amy took the US while her colleague took China.

At that time, I personally believed that if Michael Phelps was taken out of the equation China could win. Otherwise, there would be only a small chance that China could stand on top of the gold standings.

At the beginning of the final day of competition, no matter what the US win today, China has won the total gold medal tally. The only question is whether or not China will eclipse the 50-gold mark.

I haven't talked to Amy yet, but I bet she is upset that she lost the bet. She probably feels the same way as most people in the US.

The most recent discussion online has been with regard to who won the medal race for the Olympics. In the US, the medal count has always been ranked by total medals won, gold + silver + bronze. I remember that from the 1992 games in Barcelona and in '96 in Atlanta. If that's the rubric then the US wins.

In just about everywhere else in the world, as well as the International Olympic Committee, the rankings are based on the numbers gold medals won. In this rubric, China wins.

Which one is correct?

The Koreans have a different idea. They think it should be ranked based on gold medals per capital (the number of gold medals with respect to the population). If that is the rubric, surprise surprise - South Korea is best.

Some in the US think it should be the amount of people with gold medals on their necks (since a gold in Basketball means 12 people have medals vs. weightlifting where only 1 person receives a gold).

I personally adhere to what the IOC's formula - since it's been used since 1894. I would also like to politely ask my fellow Americans to just accept the fact that China won the most golds and congradualte them for it. For a country and culture where being #1 is first and foremost, it should also embrase that winning gold is most important.

Inside the toy recalls: Mattel's sins

It's been a few weeks since the Mattel toy recalls first started. Since then millions of toys have been taken off the shelves all over the world, a Chinese factory owner hung himself and the "Made in China" name is being dragged through the dirt in the US media.

Just about everyone in the US has jumped on the hating. There have been countless examiniations into the saftey of everything China makes and an unseen fervor has developed. Democrats and Republicans alike are attacking China as the now "irresponsible" global production machine.

While I can not make any statements regarding food recalls or underware, as a person who has worked in the toy industry (my job was to liason between the factory and the US design staff), I see this situation really clearly:

It isnt really the Chinese company's fault!

During the design process, there are a lot of considerations for safety. Only certain materials could be used for certain aged kids and the spacing between motorized parts had to be a certain width. Above these basic restraints, all of our toys had to pass a RoHS standard. This applied to the entire packaging, the paint, the materials used, the parts, everything. Before being able to ship any toys, we had to submit them for testing at a hong kong third party. Only with certification from this third party could we ship to Walmart, Target, ect.

In order to pass these tests, we had to control our supply chain. Every shipment of materials were individually checked by our on-site Quality Control team. If anything was wrong with the shipment, the QA team would not accept the entire stock and demand the sourced company to redo it.

In essance, there were atleast 4 different levels of quality assurance: During design, supply chain, manufacturing and third party testing before shipment. Of course not all shipments were perfect and things did slip through the cracks, but no products were recalled when I worked there. None.

So with my own first hand experience, I was terribly shocked when I heard of Mattel's recall. How could the biggest toy company in the US allow so many millions of toys be shipped? What happened to all of the different layers of testing and retesting. Also, why didnt the US media find the real reasons for the problems instead of making China the scapegoat?

Well finally, someone did. Only in today's NY Times has there been any mention of the innate problems within Mattel's business.

Mattel has been manufacturing in Asia far longer than many companies (the first Barbie was made there in 1959). That led to long-term relationships with certain Chinese contractors, many spanning decades. Paradoxically, that appears to have contributed to Mattel’s problems: the longer it outsourced to a factory supplier with good results, the looser the leash became.

During Mr. Eckert’s tenure, the company has scaled back the number of companies it uses and the fraction of Mattel toys that they make, but it allowed its more reliable suppliers to do their own regular toy testing — with spot tests by Mattel only every three months.

The two contractors that caused this month’s recalls were among the most trusted. Lee Der Industrial, the supplier involved in the first recall, had worked with Mattel for 15 years. The Early Light Industrial Company, the contractor that made the Sarge cars in the second recall, has supplied toys for 20 years.

Mattel became so confident in their China production that it basically gave all control to their subcontractors. Instead of making sure they had final say of what toys were being shipped, the left it up to their Chinese counterparts. What responsible company would decide to do that? No smart company would ever think of giving all control for their products to someone else.

Still Mattel execs want to refocus the blame on the Chinese:

“I think it’s the fault of the vendor who didn’t follow the procedures that we’ve been living with for a long time,” Mr. Debrowski said.

I guess Mr. Debrowski has never worked in a Chinese factory (like I have). Maybe if he worked there for 2 weeks, he would see that Chinese employees need constant attention. Only micromanagers with attention to detail can actually confirm that any processes are used. Without this oversight, any "procedures" are just random words on paper.

All in all, the real issue is money. The real reason why Mattel gave so much autonomy to their contractors was because they wanted higher profits. In order to have their own staff oversee and manager the production, QA and other processes, it would cost Mattel much more money. Instead, they calculate the cost and overhead of the Chinese manufacturer, add 15% for the Chinese company's margin and not worry about anything else. For a toy that costs the Chinese company $1.20, Mattel sell it for $4.50 to Walmart. That's quite a profit.

Whey they're making that much money, who cares about a little lead in the paint?

Ultimately, no one is really blaming Mattel for this. If you read the NY Times article, you can see that the underlying tone of it is pro-Mattel. Even the title, After Stumbling, Mattel Cracks Down on China, shows the bias.

The US (and world) media will continue to attack China while the real culprits enjoy their high profit margins. I guess it's just another symptom of globalization.

China & Morality

One of the most interesting things about living in China is the underlying sense of morality.... or the lack there of.

From my time living here, I really believe that anything and everything can happen. Although the vast majority have a decent sense of what's right and wrong, a lot of people clearly don't have it.

Business ethics? Who cares.

Insider Trading? Common place.

Cheating for self gain? Standard.

One recent event that shows the turbulent and frequent questionable nature of what is real/fake and right/wrong occurred in journalism.

The west often accuses Chinese journalism as censored, government approved and basically propaganda. Although everyone and their grandmom knows that there is a natural sensitivity for the government on certain issues (like falonggong, protests) on the national scale, journalism on the local level is more open than I had previously thought. There are definitely news reports, on the radio, in TV and print describing corruption, crimes, and other unsavory events. Although there is a vail lifted over the average Chinese person, it's not as thick as everyone thinks.

Well, about a month ago, a Beijing journalist described a very interesting story about food vendors putting cardboard and other undesirable materials into food. This scary story caused a stir in local and national headlines and was quickly picked up by CNN international sources.

The whole country was in outrage. Police and health inspectors started checking everywhere. Foreign press lamented and criticized China, ect. ect.

And all the while, the story was fake...

As CNN reported through Reuters:

Beijing police have detained a television reporter for allegedly fabricating an investigative story about steamed buns stuffed with cardboard at a time when China's food safety is under intense international scrutiny.

Beijing authorities said investigations had found that an employee surnamed Zi had fabricated the report to garner "higher audience ratings", the China Daily said on Thursday.

"Zi had provided all the cardboard and asked the vendor to soak it. It's all cheating," the paper quoted a government notice as saying.

After I read the original report, I spent a while thinking about the stuff I put into my body every morning before going to work. I also thought about the other crap that could be in the foods out there. I was almost freaking out.

So while I, and many other people were freaking out (like me), while the whole country was in outrage investing food processes, standards and regulations, and while the international community criticized the Chinese government and its standards as another example of inept corruption of the "communist regime," the story turned out to be fake.

So, creating this panic and international incident was just a chance to get higher ratings, and a future promotion. Wow.

This is China.

The reporter has since been tried and sentenced to 1 year in jail and a fine. Good times.

Before leaving this topic, there is another issue that is involved here. I would not be surprised if the story was true and the reporter was telling the truth. Instead, the culprit could be the authorities who are trying to damage control. Different agencies could have ordered that the reporter be the scape goat so that the government could deny these accusations with more footing to foreign trade partners... what if...

Ultimately, no one knows what the hell is going on. It doesn't matter if you believe one side, or the other. They are all playing with the same, cheating deck of cards.

Chinese College Entrance Examination - 高考

June 7,8,9.

Every year, these 3 dates are the most important dates for millions of Chinese students (and their families and friends) taking the annual Chinese College Entrance Exam.

The Contra Costal Times has a great article titled "College exam impacts all of China" that accurately describes the test process that influences soo many people each and every year.

College admissions in China is strictly based on the score from the test.

Unlike the U.S., where standardized test scores are just one factor weighed by universities, how Chinese students do on the "gaokao" determines everything. Students list their top three schools and their major and hope their score is high enough to win a place.

Extracurricular activities do not count, and neither do high school grades. And forget writing about volunteer work; there are no essays to persuade admissions officers.

Every student is tested in 5 different areas. Each student is required to take the Chinese, English and Calculus test. The final 2 areas are different depending on the student pursuing a Bachelor's of Arts or a Bachelor's of Science degrees. They take History and Social Studies versus Physics and Chemistry, respectively.

Each test is scored on a scale of 150 points for a maximum possible of 750 points. Each university has a low cut off point. The top universities like 北京大学 choose first and pick the best students. Students with more than 600 points are considered. Those who were not chosen are then available for the next schools. This process goes on until all of the spots in every university are filled.

This process is accurate for the vast majority of students in China. A few percent of students go to school in other ways. These might include going to a specialized school where the student was recruited. Just as schools in the US recruit for sports, Chinese schools recruit for sports, as well as other areas of study.

Chinese gaokao has been such a important thing that kids are tutored and nurchered at a young age, to be ready for it. College exam impacts all of China describes a mother waiting for her daughter to finish the test.

Li Yukun gripped a bouquet of pink roses, a gift for her 18-year-old daughter who has been tutored every weekend since middle school.

"These 12 years have been so hard. These roses are to show her that I care, it's been so hard for her, not one day of rest," the mother said.

Due to the importance of the test, high school in China has also become a "breeding ground" and very different than its US counterpart. The typical Chinese high school lasts 3 years. In the first 2 years of high school, a student takes all of the classes as a normal US high school student with new material. In the 3rd year (senior year), high school transforms from a place of learning to a place of preperation. Instead of learning new material, the entire year is used to review and focus on the old material (in order to be ready for the entrance exam). Students prepare with extensive study sessions, mock tests and outside tutors.

Years of study, hope, investment and hard work all comes down to the exam. Make or break. Win or go home.

June 7,8,9.

Future China/US Trade War?

There has been an abundant amount of coverage on the possible US sanctions towards Chinese goods if China doesn’t appreciate the yuan at a faster pace than it is doing currently. Paulson: China must implement reforms describes current US Treasury Secretary’s view of what’s going on.

Paulson said there is agreement in principle between the U.S. and China on the need for greater yuan flexibility. The discussion is about "the pace" of change.

"They're moving, but they're not moving, in my judgment, quickly enough," he said. "China is by far the largest" economy that doesn't have a market-determined currency, but enjoys the benefits of the global economy."

In a 4/21/07 Bloomberg.com article entitled Paulson Says China Must Yield `Tangible Results' on Yuan, Trade, Paulson described the possible consequences and repercussions if China doesn't act quickly.

"The American people are concerned, Congress is concerned and there's a lot of protectionist sentiment'' toward China, Paulson said in an interview on the ``Charlie Rose'' show on PBS television following his speech in New York." The more tangible reforms we see, the easier it is for me to deal with Congress.''

"There will be some, I believe, unattractive bills that are voted on in Congress,'' Paulson acknowledged. "I think the Chinese are very well aware of this -- I think they should be aware of it.''

Other parts of the Bush Administration have also taken action by imposing import duties on Chinese glossy paper and by filing 2 complaints to the WTO for copyright infringement and piracy.

The feeling of uncertainty in Chinese and US relations changed 2 days later in another Bloomberg piece by Matthew Benjamin. In his story, called Paulson May Be Unable to Get China, U.S. Off Collision Course, Benjamin painted a grim picture if reforms in the Chinese currency doesn't happen soon.

Without steps to allow a significant increase in the yuan, which most economists consider unlikely, Paulson may not be able to continue holding off moves in Congress to punish China.

"After years of talk and bluster, protectionism no longer seems like an empty threat,'' says Stephen Roach, chief global economist at Morgan Stanley in New York. "Trade sanctions against China are now all but inevitable.''

These increasingly real threats come with the backing of Congressional democrats who maintain that they would achieve “strong and effective legislation is likely to pass with a veto-proof margin.”

Although it might seem that the appreciation of the yuan is all but unavoidable, Benjamin also shows the hidden side of the currency struggle, relating both US and Chinese workers and businesses.

When China allowed a small rise in the value of its currency in 2005, Hangzhou food-company executive Wang Yuzhou saw his profits squeezed. Any further move threatens the livelihoods of his 1,000 workers and the 5,000 rural households that supply his plants, he says.

John Walker says China's currency policies have already cost 100 jobs at his Lewisburg, Tennessee, die-casting company. He wants the U.S. Congress to do "whatever it takes'' to force an increase in an undervalued yuan that he contends gives an unfair advantage to Chinese competitors.

Citizens on both side of the Pacific Ocean have money, family and livelihoods at stake. It is often easy for Americans (me included) to jump into the US perspective (of John Walker) while being ignorant of Wang Yuzhou’s plea.

But what can China do other than to appease the US on their currency appreciation wishes? The answer lies in a recent 4/18/07 NY Times article. China Leans Less on U.S. Trade describes the readjustment of China’s global trade strategy.

At booth after booth at China’s main trade fair (Canton Fair) this week, the refrain from Chinese business executives is the same: the American market is not as crucial as it used to be.

Instead, Chinese producers of everything from socket wrenches to sport utility vehicles say, their fastest growth these days lies in Europe, Africa, the Middle East, South America and elsewhere in Asia — in other words, practically anywhere other than the United States.

So it is throughout China. With ample support from the Beijing government — including a flurry of trade missions to Africa and assistance with trade fairs in Germany, Australia or someplace in between — Chinese companies are poised to expand into the markets of many of the world’s rapidly growing economies.

By placing the focus on new markets for the abundant amount of Chinese goods (produced in cities like Shenzhen), Chinese businesses are beginning to hedge their profit margins and risk.

The government and companies across China increasingly see a danger in becoming too dependent on a single market (USA). So they are stepping up efforts to sell to other countries, particularly those outside the industrial world.

This change in direction is a small but important step for China. Maybe in the future, they will not need to be so dependent on American politics and their tariffs.

On the other side: what would happen to the US if cheap Chinese goods start decreasing?

Chinese Radio: Loveline

Every time I go back to the US for a business trip, I’m lucky enough to go home and bring some stuff back to me to Shenzhen. Familiar DVDs, old family pictures and past books have made my Shenzhen apartment feel more like home.

One of the things I’ve recently brought over from the US that I thought I needed is my Alarm Clock/ Radio. I’ve had this thing since I was in middle school and I’ve used it on my bed stand ever since. I’ve definitely felt a void not having it here in Shenzhen with me. Currently I only have my cell phone to tell time and to wake me up in the morning. My clock would do a better job of those 2 functions while simultaneously giving me access to the radio airwaves. Yes.

So after I lugged this thing across the ocean, bought an extra power cord and power adaptor for it, I discover it didn't work. The clock would be progressively slow. For every hour of time that went by, the clock only showed 55 minutes went by. I tried a couple of other clocks and the same thing happened. For some reason, the US alarm clock just can tell time in China (I think it’s a current problem…anyone want to help me fix it?). I could only use the radio.

I’ve been to listening to the radio a couple of nights a week before bed. On top of that, i've had other opportunities to tune in while taking taxis (Shenzhen taxi drivers love talk radio) and on the bus, commuting to and from work. Although still limited in my exposure to radio in China, I have found many interesting things on the air waves.

This interest has made me decide to add a new category to my blog, “Chinese Radio”, in which everything will stem from radio content that I hear.

A few nights ago, I was restless and unable to sleep around midnight. Bored and annoyed with myself, I decide to turn on the radio and hopefully doze off with it acting as the background ambient noise. The radio didn't help. Instead, I grew incredibly interested in a show I just happened to stumble upon.

Imagine a women-specific version of Loveline, Chinese style (without the mentioning of drug use and without Adam Carolla’s antics

At the beginning I didn't know what was going on. I couldn't exactly understand all of the technical language that was spoken. But as it wore on, I got into the grove of it and could understand about 90% of what was being said. I just used context to guess at the last 10%. All in all, the hosts seemed to be enjoying themselves and the subject was entertaining. Here are the details:

• There were 3 different female voices on the air. I’m assuming one was the host and the other two were experts/doctors.
• The doctors answered questions on a wide range of topics, including sexual health, physical health, and mental health.
• The doctors spoke in professional language, and from what I could understand, had a decent grasp of female health issues.
• Questions were asked in many different forms, including direct calls, letters as well as text messages. There seemed to be a lot of text message questions.
• The hosts all spoke in very good mandarin.

One of the more interesting calls that came on was from a 26 year old. In a nervous, slow and heavy-accented speech, she asked a question regarding having unprotected sex and the likelihood of pregnancy by using the “pull out” before climaxing method.

The experts calmly explained (correctly) that the “pull out” method was not a good way to prevent pregnancy because there would guys sometime ejaculate semen before actually climaxing (or pre-cum). Instead of doing this, she should either use some type of birth control, including male/female condoms and contraceptive pills. They were very comforting and accepting in their explanation and attitude to the caller.

When the inexperienced girl questioned how she could get the medication, the experts gave her a hospital location in proximity to where she was explained the procedure.

Success! The potential for one less Chinese baby!

Listening to this program got me thinking:

• I’m actually not surprised that a show like this is on the air. While Chinese people, I would say, are sexually repressed, they feel decently comfortable about it when it’s done in professional and medical terms.
• The text message questions are a good way to receive questions. Text messages are not only cheaper than traditional phone calls, but they negate the nervousness and awkwardness of the first-time caller. Chinese people might be ok with talking about health and sex, but they’re definitely always nervous.
• This show is a really good idea for Shenzhen.
• Population: As everyone already knows, Shenzhen is filled with tons of migrant workers, in which a majority of them are female. (My factory’s assembly line of more than 2000 is 95% female.)
• Education: Most of the migrant workers are from the countryside and have relatively little education. Most have never been to high school. People often get word-of-mouth advice from just as ignorant friends.
• Hospitals: Public health services are not keeping up with Shenzhen’s growing population. Also, health care costs are rising throughout the country.
• Income: Migrant workers are paid relatively little and are saving up for their family. If something is wrong with their health, they often ignore it or try the least expensive treatment possible.
• Combine all of these together and this show should be a great success.
• The Chinese listener didn't seem that knowledgeable about the most basic bodily stuff…not just sex. Just about everything that was being asked seemed to be from high school biology/anatomy class.
• One of the questions was about mental health and depression. I wasn't able to get a good read on it due to the technical language… but I do wonder what kind of training and experience the doctors on the show have on that.
• I wonder if they have this in other cities. It has to be in the 1^st tier cities. What about the 2^nd and 3^rd tier? It’s definitely a good resource.

Let’s only hope that these girls from the countryside have radios in their factory dorms to take advantage of programs like this. Maybe they should go buy a clock radio and see if it tells correct time.