New York Times Flaunts Ignorance of China R&D Rules

March 21st, 2010

Howard Richman submits:

In a story in the March 17 New York Times celebrating U.S. R&D moving to China (China Drawing High-Tech Research from U.S.), Keith Bradsher completely failed to mention the Chinese government’s new November and December rules requiring that American firms move their R&D and patents to China as a condition for doing business with the Chinese government.
Although the New York Times may have missed the story of these rules, the Wall Street Journal did not. On February 16 it reported that the Obama administration was responding with talk:

In an unusually broad response, U.S. officials from several government agencies have approached the Chinese to relay concern over the proposed rules, according to people familiar with the situation. "We are expressing our serious concerns with all appropriate counterparts in the Chinese government," said Carol Guthrie, a spokeswoman for the U.S. Trade Representative’s office.

Although Keith Bradsher was reporting from China, his sources may not include the U.S. Chamber of Commerce, the Business Roundtable, the Business Software Alliance, or any of the other 19 American trade groups, representing America’s largest corporations in China, who wrote a January 26 2010 letter which explained the new rules and their threat to the American economy. Here is a key paragraph:

Of most immediate concern are new rules issued by the Chinese government in November to establish a national catealogue of products to receive significant preferences for government procurement. Among the criteria for eligibility for the catalogue is that the products contain intellectual property that is developed and owned in China and that any associated trademarks are originally registered in China. This represents an unprecedented use of domestic intellectual property as a market-access condition and makes it nearly impossible for the products of American companies to qualify unless they are prepared to establish Chinese brands and transfer their research and development of new products to China.


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Rio Tinto / Chinalco Deal Could Have Wider Influence on Australia / China Relations

March 21st, 2010

Relations between Australia and China appear to be thawing quickly, just as Rio Tinto (RTP) and Chinalco (ACH), China’s largest aluminium producer, start to look at ways to co-operate again on large undeveloped projects.

For those of us with foggy memories of anything further out than 12 months, Chinalco and Rio Tinto have courted each other before. Back in 2008, Chinalco came close to taking a significant stake in several projects operated by the Australian mining giant in a US$19.5 billion deal. The proposed deal received a frosty reception from both Rio Tinto’s shareholder base and the Australian Government, and in the end, was scuppered after commodity markets recovered just enough to allow Rio Tinto to tap the markets for cash and embark on a round of asset disposals to shore up its balance sheet.


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The Nine Nations of China: The Metropolis

March 21st, 2010

Patrick Chovanec submits:

THE METROPOLIS
(Shanghai, Jiangsu, Zhejiang)
Territory: 216,008 km2 (2% of total)
Population: 147 million (11% of total)
Per Capita GDP: $6,406 (#3 of 9)
Exports as % of GDP: 58%
Net Trade Balance (ex-China): $119 billion surplus

Sleek, stylish, confident—Shanghai certainly makes an impression. Its steel skyscrapers look like rocket ships ready to blast off into the future, taking China along with it. Shanghai is a very young city by Chinese standards, but the Yangtze River delta—known in ancient times as the kingdom of Wu—has always been the most commercial and cosmopolitan part of China. Like the Low Countries at the mouth of the Rhine, it is a flat watery land crisscrossed by busy canals linking a constellation of trading cities. The Back Door may succeed in breaking the rules, but only the Metropolis has the wealth and dynamism to entirely reshape them. Its treasure fleets nearly discovered Europe a century before Columbus sailed, and of the Nine Nations, it is the only one to have displaced the Yellow Land—several times—as China’s political capital.


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Chinese Banks Strong Enough to Withstand Loan Failures

March 21st, 2010

Research Recap submits:

Chinese banks appear financially strong enough to withstand the expected pressure on profits as non-performing loans (NPLs) and other problem loans increase, according to a Standard & Poor’s.

Standard & Poor’s forecasts a 20% increase in loan growth this year, following a record 30% rise last year, but it expects the NPL and other problem loans ratio to remain below 10% for the next two years.


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China Sky One Predicts Improved 2010

March 21st, 2010

chinabiotodaynewlogo ChinaBio Today submits:

China Sky One Medical (NSDQ: CSKI) expects 2010 revenues to grow by 20% to $156 million. Net income, however, will increase by a more modest 13% to $39 million, as the company ups its R&D to 15% of revenue. At the same time, the company said it will shift its corporate focus to cardiovascular medicine and antibiotic drugs.

China Sky One has been a very ardent practitioner of M&A as a way of increasing its revenues. Because the new focus seems like a serious departure from its traditional expertise in topically delivered drugs, China Sky One may have some additional transactions in mind. The company said only that it “plans to make significant investment in the development of high margin branded drugs to support long-term sustainable growth.”


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Three China Small Caps Set to Double in Six Months

March 21st, 2010

China OTC Player submits:

With the recent retreat of some of our Chinese small caps, certain stocks are looking very attractive once again. Just today, I loaded up on some of my favorite plays.

This is the perfect time. We are in the midst of a reporting season that is shaping up to be one that is not only very positive but has in fact not uncovered any nasty surprises. As a contrarian, I love taking advantage of the uncertainty surrounding the Yuan and China’s credit market. Further, even though some of us have been in this space for a long while, judging from the actions of certain investors, Chinese small caps are garnering attention like never before.


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Paul Krugman vs. Reality

March 21st, 2010

Peter Schiff submits:

In his latest weekly New York Times column, Nobel Prize-winning economist Paul Krugman put forward arguments that were so nonsensical that the award committee should ask for its medal back.

Recent rhetoric from Washington has put the economic relationship between the U.S. and China squarely on the front burner, and Krugman is demanding that we crank up the flame. This week 130 members of Congress sent a letter to Treasury Secretary Timothy Geithner demanding that the Obama administration designate China as a "currency manipulator". Following that, a bipartisan group of senators introduced a bill that looks to force the Obama administration’s hand. For its own part, Beijing invites criticism by continuing to deny its utterly obvious currency agenda.


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China Mobile Beats Earnings Forecast

March 21st, 2010

Zacks.com submits:

The world’s largest wireless carrier by users, China Mobile (CHL), announced full-year 2009 results with earnings per ADS of US$4.16 beating the Zacks Consensus Estimate of US$3.98. Net income increased 2.3% year-over-year to RMB115.2 billion (US$17 billion).

The Chinese wireless behemoth reported revenues of RMB452 billion (US$66 billion), up 9.8% year-over-year, partly driven by increased contribution from value-added services (29% of total sales). EBITDA increased 5.9% to RMB229 billion (US$34 billion) with the EBITDA margin equating to 50.7%.


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Five Questions (and Answers) About “Autumn Gem”

March 19th, 2010

By Maura Elizabeth Cunningham

At the beginning of March, Rae Chang and Adam Tow came to UC Irvine to show their docudrama about the life of Qiu Jin, Autumn Gem (see here for their blog post about the UCI event, and here for a list of upcoming screenings around the country). The movie traces the life of “China’s first feminist,” Qiu Jin (1875-1907), who was a leader in both the nationalist and women’s movements and was executed at the age of 32 for her involvement in a plot to overthrow the Qing government. Hailed as a revolutionary martyr in China, Qiu Jin is little known outside the country, but the Autumn Gem screenings are bringing her story to American audiences. After seeing the movie, I wanted to learn more about its development, and conducted this brief interview with Rae Chang by e-mail.

Maura Elizabeth Cunningham: How did Autumn Gem come into being? Why did you pick Qiu Jin as the focus of this project?

Autumn GemRae Chang: As a Chinese American born in the U.S., I had never heard of Qiu Jin until I came across her in a book, Writing Women in Modern China, about twelve years ago. It was an anthology that included English translations of her work, as well as a brief biographical sketch. What caught my attention was that she was described as a “radical feminist” from China, which came as a surprise to me because I didn’t even realize there was a feminist movement in China, much less a radical one! That led to doing more research about her life, and after collecting more material I thought she’d make a great subject for a documentary.

MEC: Why did you choose to include so many of Qiu Jin’s poems, essays, and speeches in the movie’s script? Aside from Qiu Jin’s own writings, what other sources did you consult when researching Autumn Gem?

RC: Qiu Jin was certainly a prolific writer, composing over 200 pieces throughout her short life, and I wanted to use her own words as much as possible to tell her story. I felt the act of writing was such an integral part of her life, and helped shape who she was in both public and private. Her political speeches and essays were fiery, passionate diatribes meant to stir up the people, while her poetry revealed this intensely turbulent inner life. Listening to her own words, we wanted the viewer to have a more intimate sense of who she was.

I unfortunately can’t read Chinese, so I relied mostly on English translations of her work. The scholars we interviewed for the film – Hu Ying from UC Irvine, Amy Dooling from Connecticut College, and Lingzhen Wang from Brown University – had written excellent works on Qiu Jin in English and were wonderful resources for us. We also had assistance from the Qiu Jin Museum in China, as well as Qiu Jin’s grand-nephew, who has become a caretaker of her legacy.

MEC: What was the most surprising thing you learned about Qiu Jin, or about China’s early women’s movement, as you made the film?

RC: While she was remarkably ahead of her time in her feminist actions, speaking out in public, dressing up in men’s clothes, leaving her husband and children, she was also a very traditional Chinese woman in many ways. She had bound feet and had been set up in an arranged marriage, and was living the life of a gentry wife until her political awakening. Even the act of sacrificing herself for the modern revolution was based on the traditional notion of heroic self-sacrifice. She had so many contrasting aspects of her life, which made her especially fascinating.

MEC: As you’ve shown Autumn Gem at colleges around the country, what kind of reaction has the movie provoked?

RC: Most people in the U.S. have never heard of her, and were surprised to learn about this historical figure who was part of the extraordinary women’s movement. People from China knew about her story, although they generally were more familiar with her political revolutionary aspect and were not as aware of her feminist side. We also met people whose grandparents or relatives knew Qiu Jin personally; some had studied with her in Japan, others had participated in the revolution themselves. It was incredible connecting with them through the film.

MEC: What sort of legacy do you think Qiu Jin has left to the women of China?Qiu Jin

RC: While she wasn’t the first women’s rights advocate, she was inarguably the most prominent, as her martyrdom brought national attention to the women’s movement. I think her image resonates strongly with feminist activists today. It’s been over a hundred years since her death, and she’s still ahead of her time.

Lusting for old Shanghai: Andrew Field and Tess Johnston @ SILF 2010

March 19th, 2010

By Marta Cooper

Shanghai is a city where one has to work particularly hard to find simple, unadulterated culture. So, when the blue moon opportunity comes to bask in it for two weeks, I do just that. Most recently, that’s meant heading to the sophisticated Glamour Bar, overlooking the curve of the Bund and the sci-fi lights of Pudong, which has been hosting the 2010 Shanghai International Literary Festival (SILF) this month. The venue has been brimming with excitement, with authors from County Cork to Manila sharing their work with the spoiled audience.

On a mild Saturday, hot off the heels of Paul French’s swim through the depths of decadent and dirty Shanghai, two more authors took us back in time.

In the morning, historian Andrew Field launched his new book, Shanghai’s Dancing World: Cabaret Culture and Urban Politics, 1919-1954. Plunging into an untapped reservoir of Chinese sources, government documents, novels and magazines, Field described a time when cabaret and ballroom dancehalls decorated old Shanghai.

Thanks to the pockets of Westerners in Shanghai’s concessionary areas, the city had its own edition of the Roaring Twenties. Shanghai’s dancehalls were awash with American musicians blending jazz beats and riffs with Chinese folk, taxi dancers being paid to drink, dance and converse with men, and local girls from a variety of class backgrounds cruising the town in 3-inch heels. It even seemed from his presentation that the glamorous and decadent cabaret halls, adorned in nickel, crystal and marble with electric lights, sometimes echoed more Saturday Night Fever than Paris of the Orient.

Dancing the cha-cha and Charleston were not only Shanghai’s answer to flappers, but also the city’s gangsters, who often used the venues for their own rackets. The scandalous underworld of sexual dancing and criminal culture unsettled the then-ruling KMT (Nationalist Party), which banned cabarets in 1927 but failed to outlaw the dancing halls and ballrooms that were conveniently situated in the concessionary areas, and therefore under foreign control.

What Field reminded us of is that the local Shanghainese quickly jumped on to the cabaret bandwagon and eventually “elbowed the foreigners off the dancefloor.” Despite the fact that the dancing was controversial in terms of Confucian cultural values, these venues sprung up during an enlightened era in which the May 4th Movement had set the stage for a context of change. What was initially a puzzling development for the locals was soon appropriated as a liberating transgression (however, when asked what the Chinese thought of this ballroom culture, Field simply responded: “read the book!”).

Field wrapped up by drawing parallels between the then and now. Even without the 1920s’ glamour, Shanghai’s nightlife is still one the city’s greatest assets: the club scene is alive and well, and bars of both the sophisticated and seedy varieties are not difficult to come by. For Field, the past still echoes through the amplifiers.

In the afternoon, 80-year-old (or, going on 25) Tess Johnston took us on a more personal journey. Having spent forty plus years abroad in the US Foreign Service, Johnston descended on Shanghai in the early 1980s. She called the city she found a combination of 1938 Warsaw and Calcutta: “grubby, grey and crumbling…but all entirely intact,” she said. She heralded the Bund, her most cherished Shanghai sight, as “a scruffy showcase of Western architecture, but wonderful.”

Tess Johnston

For the next hour, Johnston regaled us with tales of the mystique of the French Concession, foreigners-only markets in old warehouses, not wasting one bite of a decadent Snickers bar that had already been half-eaten by rats, and struggling to find an available dish on the Western menu at the Park Hotel. In between her escapades, Johnston managed to write 25 books, including several on Western architecture and the life of an expat in old China.

Johnston’s words were infused with nostalgia, but not for the glamorous Paris of the East that Field had described. Instead, Johnson yearned for simpler times: “there was no glitz or lust for money,” she said of 1980s Shanghai.

The city’s superficial reality certainly overshadows its creative and immaterial vibes. For a jazz enthusiast spoiled by London’s delicious culture, I arrived here with an immature pang for the Paris of the Orient I never experienced.

However, it is useless to criticise the materialistic currents running through the city’s nouveau riche. As Johnston affirmed, “who could begrudge China these new opportunities? The Shanghainese are taking this city into the twenty-first century with a vengeance.”

Marta Cooper is a British-Italian writer and student based in Shanghai. She currently writes for Shanghaiist and Global Voices Online, and keeps a blog titled …in Shanghai.