Understanding China, One Blog at a Time

An American in China

Archive for May 8th, 2011

China Looking to Add Another Product to Its Toxic Portfolio?

Posted by w_thames_the_d on May 8, 2011

China has been trying to buy her way into foreign markets as they, well they just have shitty quality and don’t know how to build a brand. Still burdened by the shakles of the communist mentality, they fail to understand that the customer is always correct and that no, adding poison to product just to earn a few pennies, is not a good thing. Under the stricter communist rule of the 50’s maybe they were the only game in town and if a few people died from shitty quality, then so be it, it may have been seen as a noble way to die- assisting the motherland and all. But nowadays, people have this affinity for their internal organs and quality of life. While the chinese, accustomed to inhaling the sooty air may have gotten used to cancer villages and having a cancerous end being the leadind cause of death in this place, the rest of the world has different standards. Thus, the chinese companies must purchase foreign ones to get traction overseas. The problem is that in typical chiense fashion, they will attempt to cut corners, use cronyism and do things just like they are done here, thus ensuring a glaring death overseas. It is one thing to have success in the chinese market where one’s goods are highly protected and quite another to equal that success overseas, just ask BYD and Buffet.

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Foxconn Quitting China?

Posted by w_thames_the_d on May 8, 2011

Foxconn has had problems in China. The Taiwanese compnay that does much work for Apple got a black eye when its Chinese workers were committing suicide at an incredible pace. It has been said that Apple has been pressuring them to stop assembly of some Apple products in the Chinese mainland and it appears as if Foxconn may be making such a move. In the two articles below we see that Foxconn has stopped plans to manufacture table computers in China’s Hunan province but are going deep with an invetment in Brazil. Could this be a sign of things to come for China?


SHANGHAI – Foxconn Technology Group, the world’s largest electronics contractor by revenue, has halted a plan to manufacture tablet computers in Hengyang in Central China’s Hunan province. That’s according to a statement from Foxconn’s parent company, the Taipei-based Hon Hai Precision Industry Co Ltd, to the Taiwan Stock Exchange on Tuesday.
The announcement came as Foxconn- the contract maker of Apple Inc iPhones and Hewlett-Packard Co computers – was reported by the Xiaoxiang Morning Herald to be planning to make its Hengyang tablet computer plant operational by the end of May. In the statement, Edmund Ding, a Foxconn spokesman, said that the company has terminated an investment proposal to manufacture children’s e-books and digital photo frames in Hengyang due to “subjective and objective environmental changes”, despite previous investigations into its feasibility.

form the Chinadaily

BEIJING – IPhone maker Foxconn Technology Group is considering investing $12 billion in Brazil, a move that may help Apple Inc and other tech companies expand in the world’s eighth-largest economy.

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China Declares War on Toxic Foods and Is Losing….

Posted by w_thames_the_d on May 8, 2011

China seems to be blessed with the abilty to patronize or pander to the crowds. They smile , talk a great game and say they will put all of the necessary implements in place to accomlish a goal, but they usually fail miserably. Take food safety, for instance. After the toxic milk scandal that they allowed to ravage the couintry and did not address till after the Olympics, they said they had solved that problem, yet in each of the past three years toxic milk has still turned up.

Here is a quote from wantchina that speaks to this issue:
“Authorities have declared food safety a national priority since infant milk formula contaminated with the chemical melamine poisoned 300,000 infants and killed at least six in 2008. The last three years have seen a number of high profile raids on dubious food producers.
However, food safety scandals have seen a resurgence this spring, from recycled buns to contaminated pork, make it clear that official efforts are falling short.”
continue here

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China Spends More On Public Security Than the Military

Posted by w_thames_the_d on May 8, 2011

Many chinawatchers claim that the biggest issue in China is internal strife and not necessarily problems in dealing with foreign powers. The numbers below seem to corrorborate this as China spends more to tame the locals then they do in protecting from the barbarians….
from here
“The intensified scrutiny came as China released budget figures showing that for the first time annual spending on law enforcement and public security would outstrip the military budget. The government said it planned to spend $95 billion on the police, state security, armed civil militia and jails, 13.8 percent more than last year. Military spending rose 12.7 percent to $91.5 billion.

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Ipad 2 Rollout in Beijing Turns Bloody

Posted by w_thames_the_d on May 8, 2011

There was a report that the Apple store at Sanlitun in Beijing had to close due to the unveiling of the Ipad 2 there. I have no idea what caused the row, but I am not surprised at all.

Posted in China Fact | 1 Comment »

Local Kleptocracies in China?

Posted by w_thames_the_d on May 8, 2011

I was reading an interesting article about corruption in China. The question was if china is developing local kleptocracies. Although I’d never heard of the word, I understand klepto so I can figure it out. It would appear that this term is appropriate to many areas of China, unfortunately. On the positive side, I was watching the chicom channel and saw a woman who lived in nothing more than a shack in Tai Yuan. The funny thing is that although she lived in abject poverty, here eyes were bright and happy. To me the only smiling faces in China are on the faces of the poor…

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Prostitutes More Trustworthy than Politicians in China- According to Poll

Posted by w_thames_the_d on May 8, 2011

A poll in China showed that according to the locals, prostitutes are more trustworthy than the chinese government. I guess they figure that while both parties will screw you, the hookers are more fair in doing so…

from here:
The online survey of 3,376 Chinese showed that 7.9 per cent of respondents considered sex workers trustworthy, putting them in third place after farmers and religious workers, the Insight China magazine said on its website…”The sex workers’ unexpected prominence on this list of honour… is indeed unusual..The newspaper said the list, based on a survey carried out in June and July, showed scientists and teachers ranked “way below, and that government functionaries, too, scored hardly better”….Soldiers and students were ranked after sex workers on the list of trustworthy professions, according to Insight China….At least (the scientists and officials) have not slid into the least credible category, which consists of real estate developers, secretaries, agents, ntertainers and directors.”

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Hong Kong Support for Ai WeiWei

Posted by w_thames_the_d on May 8, 2011

Good post here about Ai WeiWei support in Hong Kong.I have pasted segments below but in essence the article said that it would appear that Ai WeiWei has supporters in Hong Kong which may anger the leaders in the Chinese mainland and the result is a strained relationship between the two.

Excerpt from here (

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Example of How Corruption Works in China

Posted by w_thames_the_d on May 8, 2011

Here is an example of how corruption works in China- from here

The extensive government funded construction in China is a fertile ground for corruption. A standard scheme works as follows: an officer is in charge of a construction project. He hires a friend to act as general contractor. The general contractor bills for the work at an inflated price. The two share in the illegal profit. The report discusses this sort of scheme as well.

The issuance of these reports is a good news/bad news event.

On the good news side, Report 1 shows that the central government is taking strong steps to rid government, banks and state owned enterprises of financial corruption. Report 2 breaks with tradition and lists the full names of the defendants and provides full details of the fraudulent activities, making clear that the government is serious about transparency. On the bad news side, the amount of corruption and fraud uncovered is a tiny fraction of the almost endemic fraud that pervades Chinese government, banking and business. Most Chinese, when reading this report, extrapolate out to what they see as the real magnitude of the problem. The result is a feeling of concern rather than a feeling of accomplishment.

There are two messages here for foreign companies doing business in China. First, be on guard at all times against fraud within your own company and in connection with those with whom you do business. Second, avoid getting involved in this kind of activity at all costs. Though the chance of discovery and prosecution may be small, the chance is real and I can assure you that you will not enjoy a 14 year stay in a Chinese jail.

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