Archive for April, 2008
Submitted By: Sarah Ybarra
By this point in the MBA program, we have clearly determined that China is a nation of never-ending contradictions. This is a land that is communist in its politics, capitalist and extremely competitive in business, and still clings to its seemingly arcane traditions, values and superstitions. And how do they reconcile all of these different facets of life? Well, in many cases, they don’t. It seems to many outsiders that the Chinese are living unexamined lives, with no desire to reflect on the contradictions that run their world. The Chinese traditions, in particular, run in stark contradiction to the newly adopted capitalist values. These beliefs are often hardwired into the Chinese psyche, such as the belief that male children are more desirable than are female children, as explained by Amy Linker, even though this belief is now wreaking havoc on the country’s economy and family structures.
Another striking contradiction I found was in the CNN article An Olympic Sized Baby Boom, in which the author describes the rise in pregnancies to coincide with the opening of the Beijing Olympics. Some mothers are even requesting to schedule their c-sections at the exact time and date of the opening ceremonies. It seems that, even though China is currently in the year of the rat (an unpopular sign under which to be born), a birthday associated with such a prosperous event for China would surely result in the baby itself prospering later in life. And since next year is the Year of the Ox (commonly associated with the bull), the obstetricians will be having another very busy year. ‘”With the stock markets in the doldrums, I bet many parents would love to have a ‘bull baby’ to bring about a bull market,” Dr. Xu predicted. “I am sure I’ll be busy as ever.”’
Such superstitions seemingly have no place in what we have come to learn is a marketplace of practicality, self-made destiny, no-frills hard work and very little room for the humanity that we expect in the American workplace. All mothers want to give their children the best possible opportunities, however, and in China, this still includes giving a baby the best possible birth sign. This tradition, as out of place as it might seem, can do nothing to hurt the baby’s chances of success.
Drinking on the job, on the other hand, is a Chinese tradition that might be meeting its demise in the future, due to its adverse effects on productivity and on public sentiment. In the New York Post article, Got a Mint, Comrade? Chinese Ban Liquid Lunch, the typical Communist civil servant’s daily schedule is described as including a very lengthy and alcohol-soaked lunch banquet in the middle of the day. The Chinese consider it bad form to not entertain their business partners, and so they engage in heavy drinking, often on the government’s dime, in order to impress their clients. The public, however has grown very weary of being stuck with the bill, and the leader of the Xinyang Communist Party has assigned roving “booze squads” to administer breathalyzer tests on the civil servants in the province. Many feel as though these crackdowns violate their rights as civil servants, but others are grateful that they no longer are expected to partake of the heavy drinking required as part of the job. Said one party official, ‘“They felt obligated to drink at these lunches. If they didn’t, they would be accused of not treating their guests warmly.’”
It seems as though in this case, the demands of the marketplace have resulted in crackdowns on the traditions that have long contributed to government corruption and inefficiencies. The leader of the booze squads admits, however, that this is a deep-rooted tradition and that it will be next to impossible to persuade the old guard to forego the custom.
There is no disputing the fact that it is much easier to pick out the hypocrisies and contradictions of others than it is to see them in one’s self or one’s culture. The New York Post article Major League Baseball Arrives in China, but Traditions Don’t Quite Translate, the author describes his trip with his son to see the Dodgers and Padres play in China’s new Olympic stadium. He tells of how he instructed his hesitant son to throw his peanut shells on the ground, as is custom in the United States. A Chinese woman working at the stadium quickly came up and began scooping up the peanut shells with her hands, and the boy looked horrified to have committed such a faux pas. It became obvious to me that Americans must have many seemingly contradictory customs and traditions, and that we simply do not see them because they have been so ingrained into us. The Chinese woman might have thought to herself that it seems quite odd for an American, who espouses the ideals of politeness and civility, to throw their refuse on the floor in a public place.
If we were on the outside looking in, what other contradictions would we see in ourselves and in our culture? Would we find some that adversely affect our gross national product? Are these traditions more important than the bottom line? These are all questions that we are waiting for the Chinese to answer about themselves, but it might be that they do not recognize many of these contradictions because they are living them. So I think what we should do is go over there and tell them what they’re doing wrong! Who’s with me?
What might be the most valuable is that we view the Chinese culture as a whole, rather than as a sum of its parts. The pieces should be considered and examined, but cannot be discarded as easily as might be suggested. The Chinese culture is one of traditions and one of ambition. One without the other is not desirable or possible.
April 17th, 2008
Submitted By: Adam Windham
Below is a YouTube video titled “Shift Happens” that I came across recently. It illustrates a lot of issues regarding globalization, technological advancement and the exponential times we live in. It’s hard to comment too much without giving away the video, so please watch it before you read my, or anyone else’s comments.
I can’t say whether or not these facts are statistically accurate or not, and my guess would be that they’re probably not. What I got out of this video was the message that times are changing. And while the numbers might not be 100% correct, the message is clear and it really makes you think about what kind of world will we be living in 10, 15 or 20 years from now. The thing that got to me the most was the line “we are educating our kids for jobs that don’t exist, using technologies that haven’t been invented, to solve problems we don’t know are problems yet.”
We can see this effect of rapid globalization in business and how companies respond to new information and opportunities. The ones that are successful are able to adapt to change and deal with new and emerging business environments … China anyone?
I thought it was a really interesting video and welcome any comments.
April 16th, 2008
What to you think? Please vote, and explain the reasoning why.
My vote? I am happy to go first and publicly put myself out there for criticism. Yes, he should proceed to attend, as scheduled. I agree with Dan Harris at the China Law Blog — we need friends and support to fight the Al Queda’s of the world (go look at a map and see who borders China to the west and India to the north), North Korea, to win in Iraq (assuming we ever can), to deal with a potentially nuclear Iran and others (note to my good friend and OCOB colleague and finance professor who is from Iran, Dr. Cyrus Ramezani — Cyrus, like you I don’t buy for a second the bad guy Iran rhetoric we are hearing out of Washington, but I list Iran here in case the mullahs there stay in power and I end up being wrong and you and I have to eat our words!), to help contain the chaos that may break out in the Pakistans of the world, rally support to counter Russia if things turn south there and ugly, the FARC in Columbia gets its mojo back, to keep leverage on the Europeans should they ratchet their protectionism up even more, etc.
As a guy who by profession operates in gray areas each and every day, I am more than comfortable with my vote and it’s an easy call for me and one I can sleep with at night. I tend to approach an issue like this using a form of the utilitarian ethical model which means I analyze the pros and cons surrounding an issue that I can think of. So for me, here, on this issue, the geopolitical pros of America showing public support to China for its day in the sun and the mileage that will get us on a number of fronts simply outweighs the cons. My vote is also based on pure, unadulterated, unabashed American self-interest and how we can, quite honestly, use China to further our own strategic advantage just as she will use us for her advantage if Bush attends the event (or not). My vote has little to do with whether I like China or not with all her beauty marks and warts.
How about you? Step up. Be heard. All votes are welcome, and count equally. There is no right or wrong or expected answer here. Everybody is 100 percent free and entitled to their own opinion. State the why behind your vote. In doing so you practice some of the writing and persuasion communication skills you learned in Dr. Whitaker’s and Dr. Beamon’s class. And what drives your vote — utilitarianism, a belief in natural law, you are a member of the school of legal positivism, etc.?
April 11th, 2008
Submitted By: Nic Marlin
Last Tuesday, March 11, the U.S. Department of State issued “Country Reports on Human Rights Practices for 2007.” The reports criticize over 190 countries and regions on their human rights issues.
From which country does it sound like the following issues/ statistics come from?
• Millions of underage girls become sex slaves in this country
• 1.41 million violent crimes were reported nationwide in 2006, an increase of 1.9 percent over 2005
• Of the violent crimes, the estimated number of murders and non negligent manslaughters increased 1.8 percent
• Throughout 2006, residents of this country age 12 or above experienced an estimated 25 million crimes of violence and theft
• About 30,000 people die from gun wounds every year
• In 2007, this country witnessed the deadliest shooting rampage in the country’s modern history
• The government has seriously violated the freedom and rights of its citizens; violations of civil rights in this country have risen 25% from 2001 to 2007
• One out of eight of this country’s citizens lives in poverty
• Racial discrimination is a deep-rooted social illness in this country
• This country has the highest inmate to population ratio in the world
Can you guess which country this is? The last one gives it away doesn’t it? These are statistics of the United States and they come from various credible sources, including the U.S. Department of Justice, the U.S. Census Bureau, and the FBI (see this People’s Daily Online article).
In response to the reports the U.S. Department of State issued, China issued a report called, “The Human Rights Record of the United States in 2007.” After being criticized for human rights issues by the U.S., the Chinese government felt it was necessary to point out a few human rights issues in the United States that the U.S. reports neglected.
A recent article titled, “China hits back at US on rights…,” highlights a few key arguments in the Chinese report. The article points out that “(America’s) arrogant critique on the human rights of other countries are always accompanied by a deliberate ignoring of serious human rights problems on its own territory.” Other arguments are that “the United States has a notorious record of trampling on the sovereignty of and violating human rights in other countries,” and that “the invasion of Iraq by American troops has produced the biggest human rights tragedy and the greatest humanitarian disaster in modern world.” It also criticized civilian deaths in Afghanistan, secret prisons, and torture of detainees.
The Chinese report serves as a good reminder for the citizens of the United States to reflect upon its own issues. For those of you who did not guess the correct country from the statistics above, why do you think that you are unaware of these U.S. statistics? Is there a reason that people in the United States do not know the real [Nic, this somehow got cut off. How should the remainder read? - Prof. Carr]
April 11th, 2008
Given the popularity and demand for this course and trip, as a matter of statistical probability, the day will come where a student on the trip loses his/her focus and makes a mistake that changes his or her life forever …. such examples might include committing a drug offense in China while they are off the clock, getting liquored up and drawn into or starting a fight and arrested at a bar while they off the clock, taking a girl back to their hotel room and she has a boyfriend in wait ready to burst into the room and rob you (and no, fellas, she really did not “like you” to begin with), proselytizing (folks, whether you like or agree with it or not it’s against the law in China), deciding that their conscience “demands” that they unfurl that “Free Taiwan” or “Free Tibet” in the middle of Tiannanmen, etc.
No matter how many pre-departure sessions we have, lengthy syllabi and FAQ documents I distribute, the Application and Assumption of Risk agreement that people fill out and sign, something along the lines of the above will, in time, occur and it will be a nightmare for that person and his/her family.
You might check out these mesmerizing National Geographic shows I watched some time ago. They are excellent and powerful. They present, in visual, inescapable form, what can be challenging to effectively communicate in paper form to young people who may feel they are invincible and powerful under the aphrodisiac that travel and adventure can bring, just how severe the consequences of a poor decision abroad can be.
These segments also highlight how nobody is going to give them special treatment in their favor just because they are an American (in fact, they may come down on you harder if you are an American). This is especially the case in Asia, where crimes involving drugs or violence are big-time no-nos. China, Thailand, Vietnam, etc., are NOT Amsterdam.
Locked Up Abroad: Peru (I can’t find Part II)
Locked Up Abroad: Colombia (Parts I, II, III, IV and V) (Addendum: yesterday these segments were available but this morning when I tested them they were not coming up; if these do not work for you perhaps you can do a Google or YouTube search to find them and if you can’t find them, it’s not the end of the world).
Locked Up Abroad: Venezuela (perhaps the best one but I could not find it on YouTube)
If you are that poor chap who makes a similar bad choice like the people featured in the above segments, the ONLY response you should expect from me and Cal Poly, and as laid out in the trip and course application and materials, is that I will notify the US Embassy and/or Consulate that you are in trouble and/or sitting in a local jail (or that we cannot find you), and that they need to try and find you and/or pay you a visit.
The rest of us will need to move on with the trip and leave you behind. Nobody will wait for you. You will be on your own.
The US State Department issued a Fact Sheet on the 2008 Olympics that notes:
All visitors should be aware that they have no reasonable expectation of privacy in public or private locations. All hotel rooms and offices are considered to be subject to on-site or remote technical monitoring at all times. Hotel rooms, residences and offices may be accessed at any time without the occupant’s consent or knowledge. Many hotels and apartment buildings may be of substandard construction, lack emergency exits, fire suppression systems, carbon monoxide monitors and standard security equipment (locks, alarms, and personnel). Americans traveling abroad should be reminded to review fire evacuation procedures for hotels, apartments or offices …. The Department of State or the U.S. Embassy and Consulates General cannot have an American released from prison (emphasis added).
Dan Harris of the China Law Blog said it best:
Though I am sure most experienced travelers understand that US (or German or French or whatever) law typically ends at the border when it comes to criminal violations, you would be surprised at how many travelers either do not know this or think that their embassy or consulate will be there to bail them out no matter what. Now before you laugh, please realize many US companies believe their US trademark or patent registrations extend to China, so it is certainly not that large a legal leap for people to believe US criminal law extends to them wherever they may go.
My firm has assisted on a number of criminal cases inside China for American (and European) defendants and, nearly without exception, we are told (usually by both the defendant and his family) that the US Embassy is not doing enough to get the defendant freed from the Chinese jail. When we explain that the US government will not usually employ its political capital on this or that drug or fraud case, our clients seem downright surprised.
So … let me make it perfectly clear. If you get arrested in China, the role of the US government (be it the consulate the embassy, or whatever), will almost certainly be limited to helping you find a lawyer, helping you contact your family for assistance, and maybe helping you with the logistics of having your family or friends get food or magazines into you at the jail.
I am NOT expressing an opinion as to how anyone should act during the Olympics, but it certainly does not hurt to know the potential repercussions.
Lawyers. People hate us … until they need us.
Be smart. Be safe. Come home to your warm bed, on schedule, with the rest of us.
April 9th, 2008
Check out this piece Dr. Ashok Bardhan (one of our winter quarter speakers) wrote that just came out in Yale Global. Click HERE.
April 8th, 2008
Submitted By: Andria Greenlee
In a country where the average annual household income amounts to a mere $820 dollars, it is hard to believe that the demand for expensive, contemporary Indian art has never been so high. According to this article from the New York Times, the Indian art world is exploding, with prices that have increased tenfold since 2002. Artwork by India’s hottest contemporary artists such as Atul Dodiya and Subodh Gupta are being snatched up by local and international art collectors for hundreds of thousands of dollars, often exceeding price tags of Western counterparts.
As Indian art is gaining popularity on the international art scene, galleries in Mumbai and New Delhi are springing up everywhere. International exposure has picked up as many high end galleries and renowned museums in New York, Paris, and Switzerland have been showing Indian art. Dealers and curators from all over the world are heading to India to search for new talent and pick up trendy pieces for their customers. Interestingly, a large chunk of the customer base for this art is nonresident Indians who have made their fortunes abroad and wish to invest in a piece of art that represents their culture and heritage.
Despite the millions of dollars pouring into the art world, it is mostly the gallery owners and artists that are reaping the benefits. India falls far behind most countries in terms of art schooling and museums, and most popular Indian artists have had to go abroad to study their craft. Without resources available at home, how will Indian art evolve into its own style and genre? In addition, how is India going to really solidify their standing as an artistic society without investing in museums that enable the majority of the poorer Indian population to access these Indian masterpieces? If India really wants to pump up their credibility in the art industry the next step is for the government to recognize the need for proper museums to preserve the works of today for generations of artists and Indians to come.
Check out this Indian Art website to see some of the beautiful Indian works of art for yourself:
April 8th, 2008
Submitted By: Glenn Hughes
The US Olympics team will be bringing its own food to the games this year. One of the concerns for athletes is that chicken, as well as other foods in China, contain such high levels of steroids that athletes could potentially test positive.
Despite China’s assurance that their food is safe, the US Olympic Committee or USOC has arranged with several US companies to ship 25,000 pounds of food to China for their athletes. This move was spurred by concerns of pesticides, veterinary drugs, steroids and other compounds that could potentially end up in the final food product. One of the most recent concerns came from dumplings shipped to Japan where people complained that pesticides made their way into the food poisoning at least 10 people.
China responds by showing regrets that the US team will not be dining with the other athletes in a communal environment. Authorities insist that food in Beijing has been properly monitored and that steroids such as clenbuterol have been banned in food production. One article even states that mice will be used as test subjects to ensure the safety of the food being served to the athletes.
The United States team will have to comply with all of the import standards that apply to bringing food into China and all relevant regulations. Although this issue has not been completely resolved, China has stated that it will not allow any outside food to be brought into Olympic Village.
Olympians Banned from Bringing Food into Village
Dr. Carr posted on Cultural Knuckleheads, does the USOC fit this description? We are guests in China, rejecting food being offered to the Olympians. China has offered that their food is safe and has put procedures in place to ensure that nothing is tainted. Pasture to plate monitoring for food in Beijing has been taking place over the past months using barcodes and other tracking methods to make sure food does not get tainted. Thus far we are the only Olympic team to be publicized as doing such. Being so closely tied with China, is it wise for a country to make such a move?
April 6th, 2008
Submitted By: Mark Fairman
For nearly three decades, foreign investors had reaped huge benefits from their geographic locations in the PRC. Tax Holidays in provinces along the Eastern seaboard (Shandong, Jiangsu, Fujian, and Guandong) have allowed for large imbalances in exports between regions—as well as imbalances between foreign and domestic firms.
The initial tax holiday allowed manufacturers to pay no income taxes for their first two years and taxed only half of the standard 25% for the next two. Also, duties and taxes for exports of foreign manufacturers are differed indefinitely. Along with the ridiculously cheap cost of labor, tax exemption has been a major draw for foreign investors over the past years.
This situation sounds great for companies moving operations abroad, but the Chinese government has started phasing out these exemptions (except for high-tech firms and R&D) at the beginning of 2008. They are doing this to allow a more level playing field between the eastern provinces and the central and western provinces of China, as well as an attempt to upgrade their manufacturing model by luring in more high-tech firms.
So what does this mean for a young entrepreneur thinking of doing business in the PRC? One solution to this problem might be to locate facilities in the central provinces of Chengdu and Xian, where the Tax Holidays are still in effect. Of course, with this move, there is weaker transportation network and no direct port access. Do the benefits of this move outweigh the costs? Are there business opportunities created by a shift in manufacturing locations?
For a more in-depth into the particulars of the 2008 tax reform, click here.
April 4th, 2008
Gifts are a big deal in China. It’s part of the expectation and game. One brought gifts to the Emperor as part of the expected “kowtow” Dr. Morris told us about; today, it may take a different form — in dealing with the Chinese government you bring foreign investment or technology or evidence that you are committed to China for the long term and not to rape and pillage, take your money and make a quick exit for home, etc. for its blessing and regulatory approval. And for your friends and/or business colleagues one often brings personal gifts as part of building guanxi.
You will be organized into teams and assigned to several companies (see your Information Booklet for the details). As part of the firm visit, your team will be expected to purchase, bring and present a gift to the noted manager(s) (again, see the Information Booklet for how many gifts you need to bring per firm). The FAQ document has some good information on gifts (see Question No. 68). Please go back and re-read that question. You will need to give firms something nicer/better than a Cal Poly t-shirt or polo.
If two teams have been assigned to a firm, no need for both teams to each bring and give a gift. Instead, collaborate and work it out re: who will get the gift, wrap and pack it, how you will share the cost, etc.
Several weeks ago I was in Barns and Noble. They had some killer sales on picture books. I picked up two gorgeous picture books about China and one on India for about $12.00 each.
I noticed that B & N had some very nice picture books on SLO Country Wineries, so I bought a few to hand out as gifts when I traveled there in March.
I also noticed that B & N had some other killer picture books about California, Big Sur, Yosemite, etc. Some of these picture books I noticed were on sale, some where not. (Also, perhaps El Corral Bookstore has some nice picture books about Cal Poly? — check it out. Borders bookstore in the Madonna Plaza may also have some nice picture books.)
If you divvy the cost of a company gift between four people (or eight people if two teams have been assigned to that firm), this should not break your bank. See the Information Booklet for suggested maximum budget per gift. The amount is not nearly as important as the thought and the connection to you (see below).
It is important that the gift you choose (it does not have to be a picture book!; I just note the above as an option) be an extension of you and who you are. The personal thought and touch counts. The gift can, but is not required, be tied into your home and where you live. A nice California, Big Sur, Yosemite, Cal Poly, etc. picture book might be a good idea to bring as a gift, and easier to carry and pack than other potential gifts.
Note that for a China gift, per the Information Booklet for some of the firms you need to stay away from the SLO County Winery picture book, as I already gave that to a fair number of people you will meet in China. But for India, it can/still will work nicely.
As a personal note, when I made my first foray into China years ago, I brought Central Coast wine. In my own arrogance and western ethnocentricity, I thought, “Wow, are they going to be impressed with SLO County wine — after all, it’s great stuff and we are God’s chosen people here in SLO town.” One major problem, though — wine drinking has not yet taken over China like here, so I could tell they viewed said gift with a “ho-hum, big friggin deal, what’s this?”
So, if it was me, I would stay away from wine as a gift (it’s also a pain to pack and carry, and can break and if red wine, your clothes will be trashed). But for some reason picture books, even of a winery or vineyards, they seem to like and appreciate.
Wrapping Your Gift:
This important. I REPEAT — WRAP YOUR FRIGGIN’ GIFT. How you wrap a gift, and the care you take to wrap it and the quality of its presentation is also a big deal in China. This is a part of external/outward “face” in China. Thus, you need to make it look good when you wrap it. Color of paper is important (again, see FAQ document; red is a safe color). Color, packaging and how it looks is part of the romance you are bringing and trying to offer to make yourself look attractive and sincere.
As long as your gift does not contain metal, you can wrap it and put in your suitcase and TSA will likely not make you take it out and unwrap it so they can see it (but I cannot guarantee that what the white shirted storm trooper may/may not do!).
WARNING: if you put it in your carry-on, then definitely don’t wrap it as there is a good chance TSA will make you take it out and unwrap it!!!
Another option - you might wrap your gift once we are IN China, by bringing and packing your wrapping paper and tape with you, and then you wrap it in the hotel room (I have done this a time or two). Once we get to China, finding a place to buy wrapping paper and/or tape in a quick manner is unrealistic and you likely won’t have much time to go on a gift wrapping paper and scotch tape hunt, so I would not plan on that.
Need More Info?
Tap into the expertise of your colleagues! — Simeon, Justine, Gary, etc. They can give you good ideas and suggestions. You would be remiss if you did not touch base with them on this.
For India, Dr. Singh notes the same rules and expectations noted above apply.
Again, the SLO Country Winery book will work well for India, but I have already given out a number of these to folks in China that you will meet so if you go with a picture book for the China firms, gotta pick another picture book if you go that route …
April 3rd, 2008
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