Tuesday, July 04, 2017

Will China face a pushback? - Howard French

Howard French
China's erstwhile "peaceful rise" has been less peaceful over the past years. Will China face a pushback from its neighbors, asks former foreign correspondent Mary Kay Magistad author Howard French of Everything Under the Heavens: How the Past Helps Shape China's Push for Global Power in a wide ranging interview about his book in PRI.

PRI:
French: That's really the $64,000 question, and it's kind of the core of my book really. I think that we are entering, right now, a moment of very serious danger, which in my view, and I kind of roll out this argument in an extended way in my book, is likely to last for the next 10, 15, at the longest 20 years, after which, I think, if we can get through this transitional period, tensions will subside. 
But we are entering the danger period. And we're entering the danger period because China has advanced so far, so quickly. And its strength, economically speaking, in terms of industrial competitiveness, military capability, and particularly in terms of capacities for self-defense and projection of force in the nearby seas, have come to draw close to the capacities of the United States. In a situation where you’ve had a rising power and a status quo power in history, where the gap between the two narrows rapidly and dramatically, that is the precise situation of highest danger — because neither side is absolutely certain that it is able to prevail in a moment of instability or of conflict. 
In the rising power, you have strong constituencies that are tied up in the investment and effort to acquire capabilities, which say, 'what's the point of acquiring all of these capabilities, if you don't use them?' 
And meanwhile, in the status quo power, what was once a very clear and unambiguous lead in all of these key areas from economic strength and competitiveness, to high tech to military capacity, as the gap narrows, anxiety begins to increase. And ... a corresponding constituency says, in effect, ‘if we don't do something now to nip this threat in the bud, then it's going to be too late. We have to assert ourselves now to make clear who's in charge, or to make clear what the rules are.’ 
What's happening in the surrounding region is that, again I think one most usefully must resort to the realism that political scientists speak of. The neighboring powers are watching kind of anxiously to understand which way the wind blows. And so, how did they respond to this? Well the first thing they want to do is to avoid having to explicitly choose sides. And that means that most of them will want to obtain the benefits of economic cooperation with China, because China has been growing so fast and represents a huge market that's right on their doorstep, and to simultaneously enjoy the benefits of security arrangements with the United States, because the United States is this off-shore power far away that has been the trustee and guardian of the established rules of the road and who doesn't seem threatening. 
And so you see lots of countries — Vietnam is the most interesting example of this — Indians are training Vietnamese submarine crews on how to run submarines that are used, among other ways, to deter Chinese attacks. The Japanese are helping pay for a new Philippines Coast Guard, and a Vietnamese Coast Guard as well. Australia plays in this game. All of the smaller countries, Malaysia, Indonesia, the Philippines, Vietnam, Thailand are seeking ways to balance against China — soft balancing against China in ways that are not meant to be offensive to China, but allow them to hedge their bets. 
Magistad: You mentioned an important point in your book, which is, if China doesn't show respect for the rules and norms of the region, it pretty much encourages those countries to seek assistance, to seek support, to seek backup from the United States, and that actually plays against China's interests. How much do you think China's leaders are aware of that? 
French:  So there's a political scientist named Edward Luttwak, who I quote in the book at one point, who has developed a theory. He's basically a strategic thinker. And he's developed a theory, which is not exclusive to China, but describes a mentality or mindset that's common to very fast rising powers, as they begin to emerge, and to begin to more and more obviously contend with the status quo power. This mentality that he speaks of is called Great Power Autism. And, apologies to anyone who might take offense at this — this is not my term. 
The point he's trying to make is that rising this far this fast is a giddy experience. And amid the giddiness that you experience during this rise, caution and all sorts of other perspectives are kind of lost. And so, you are not likely to be terribly perceptive of the cost that you may incur by offending other people, meaning in this case, your immediate neighbors, much smaller countries, because you think that when you rise as far and as fast as a country like China has risen, that this is an affirmation of your correctness. 
So the next 10 years could be very messy, by accident or by design, to one degree or another. China could push in a way that involves hard power, to make gains in the immediate region at the expense of the status quo powers, most importantly for this conversation, the United States and Japan, which are the most important status quo powers in the region. And there could be a war. Or there could be at least some more limited form of conflict that could be ugly and very dangerous. 
That's one scenario that's very real, cannot be discounted, which we must be very attentive to, and that our diplomats have to figure out a way to prevent. 
You can imagine a leadership that says 'look, in 10-15 years, we can be down to 2 to 3 percent economic growth per year. ... This is the moment when we have to go we have to make our big push. We have to lock in whatever gains we can lock in right now, meaning in the next 10 years.' 
Still, I'm hopeful that we'll muddle through. Once we're past this transitional period of 10, maybe 15 years, then other things begin to happen. The demographics of China, I think, kick in — with hundreds of millions of people over the age of 65, with immense costs in medical care, possibly residential care, and China doesn’t have that infrastructure yet, because it hasn’t yet been at that stage of economic development. And so, if we get past this transitional period of 10 or 15 years, I'm very hopeful that China will say, 'listen, the status quo isn't as bad as we thought it was. We don't need to be such a grudging, victim-centric country. We've done well. We've come a long way.
More in PRI.

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Trump will stick to symbolic action against China - Arthur Kroeber

Arthur Kroeber
US president Trump seems to have been on a warpath with China. Political analyst Arthur Kroeber, author of China's Economy: What Everyone Needs to Know® expects no real action, but - like mostly - symbolic action against his Mar-a-Lago friend Xi Jinping, he tells in the Chicago Tribune.

The Chicago Tribune:
A downturn in ties was effectively announced on Twitter on June 20, when Trump declared that China's pressure on North Korea had "not worked out." 
Arthur Kroeber, managing director of Gavekal Dragonomics, a consulting and research firm, said Trump may have miscalculated, too. 
"The basic deal Trump thought he offered Xi at the Mar-a-Lago summit — a light touch on trade in exchange for more cooperation on North Korea — was absurdly unrealistic, given China's obvious unwillingness to change its North Korea policy," he wrote in a client note But Kroeber said he still did not expect Trump to embark on a "stupid and self-defeating trade war" with China. 
"The more likely outcome is that he will settle for largely symbolic actions" that will "do little to change trade flows but enable him to crow to his political base that he has got tough with foreigners who are cheating Americans out of production and jobs," he wrote.
More in the Chicago Tribune.

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Monday, July 03, 2017

Brainpower: How China changes the world - Jeffrey Towson

Jeffrey Towson
Apple's Steve Jobs was the first American CEO to discover China's massive brainpower potential when he got the first iPhone produced in six weeks time, by 200,000 workers and 8,700 engineers. China's massive brainpower is a disrupting force for the world, says Beida business professor Jeffrey Towson, co-author of The One Hour China Book (2017 Edition) on his weblog.

Jeffrey Towson:
There are two important aspects to this story – which may have become somewhat embellished over time. The first is how incredibly fast, flexible, and smart the Chinese manufacturing ecosystem is. This situation was not about being cheap. It was about speed and flexibility. Figuring out how to redesign iPhone screens took lots of brainpower deployed quickly. In the US, the iPhone screens simply could not have been redesigned in such a short timeframe. 
The second is that Apple had 8,700 Chinese industrial engineers overseeing production. That is a lot of engineers. The New York Times reported that Apple had estimated it would take 9 months to find this many engineers in the US. In China, they found them in about 15 days. 
This is a story of Chinese brainpower as a game-changer in global business. The ability to mobilize so much talent, so many engineers, and so quickly, is something new in the world. 
But we have also heard this kind of story before. 
Twenty years ago, the scale of Chinese manufacturing began emerging as a similarly game-changing phenomenon. Suddenly, everything from shoes to bicycles began to become much cheaper than before. Low-cost Chinese manufacturing changed what was possible in industry after industry. “Made in China” became a household phrase. 
Businesses around the world have since incorporated the large-scale and low-cost of Chinese manufacturing into their operations. And it wasn’t really optional. Businesses either had to take advantage of the phenomenon or suffer as their competitors did. 
The large scale and low cost of Chinese brainpower is another game changer. Suddenly thousands of engineers can be ramped up in a matter of days. And this phenomenon is starting to ripple through industry after industry. What is the impact on the pharmaceutical industry if companies can now access tens of thousands of scientists cheaply? If your competitor is opening a research and development center in China with 10,000 technical specialists, how big of a problem is that for you? Chinese brainpower is starting to impact many industries – often in unexpected ways.”
More at Jeffrey Towson's weblog.

Jeffrey Towson is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form. 

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Silkroad, a short story - Zhang Lijia

Zhang Lijia at the BBC
Author Zhang Lijia, author of the bestseller Lotus: A Novel, wrote a short story, the Silk Road, for Discovery the magazine of Cathay Pacific and tells in an interview about her preferences while traveling and a new book project on China's left-behind children.

Zhang Lijia
One evening in July 1986, a puzzling incident took place at the chemistry laboratory at Beijing’s Tsinghua University. Lin, a freshman from the chemical engineering department, was found lying unconscious on the floor, next to an open bottle of chloroform. The classmate who had discovered him and called for help wasn’t sure if Lin, who had been strangely quiet lately, had accidentally sniffed too much of the sweet-smelling yet toxic solvent, or was experimenting to attain a hallucinatory thrill, or had simply attempted suicide. After emergency treatment, Lin, still in a coma, was placed on a breathing machine in an intensive care unit. He lay motionless in his bed, separated by curtains from other patients, oblivious to the coming and going of the nurses and doctors. What occupied his cloudy mind were vivid scenes from another hospital stay two months earlier.
More in Discovery.

In the interview for the magazine Zhang Lijia tells how it works to write in English, while keeping a Chinese mindset:

Your stories are usually based in China. How would you describe your relationship with the country?

Intense, I would say. I am one of the few Chinese writers based in China while writing in English for international publications. Even though English has been my working language for years now, my sensibility remains Chinese. And compared with my Western colleagues, I have something different to offer: my insights into the Chinese society.

Silkroad is a travel magazine, but we’re trying something a bit different by publishing an issue of original fiction. How do you feel fiction can inspire travel in a way non-fiction or travel articles don’t?

I think the project is wonderful and exciting. Good fiction can entertain and educate the readers. My fictional works can be read as non-fiction as it is rooted in reality.

What do you read when you’re on holiday?

I read what I must read for my two book groups in Beijing. I also have my personal project: to re-read classics, such as all the works by Tolstoy, which I read in Chinese in my youth.

What do you do when you’re on a flight? Are you reader, worker, film watcher?

I work when I must. Then I read. When I am too tired to read, I watch films. I finished the short story for Silkroad while flying from Beijing to London. I was so obsessed with getting the story right that I couldn’t sleep a wink or watch any films.

What do you think about fiction in an inflight magazine?

I think it’s absolutely cool!

Finally, what are you working on at the moment?

I’ve started a literary non-fiction book project on China’s left-behind children, a term for the children of migrant workers. Right now, 61 million children are living in China’s villages without one or both parents. Focusing on one village in southwestern China’s Guizhou province, the book exposes the heavy human cost behind China’s so-called economic miracle.
You can read the full interview here.

Zhang Lijia is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers' request form.

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Friday, June 30, 2017

Tencent's Ma: the Don Corleone of China - Andy Mok

Andy Mok
Tencent has become the major force in China, and refusing an offer by the giant is impossible for any startup, says internet expert Andy Mok to Bloomberg. Pony Ma, the CEO of Tencent, is almost like Don Corleone, he says. And it is going international too.

Bloomberg:
WeChat now has 937.8 million active users, more than a third of whom spend in excess of four hours a day on the service. To put that in context, consider that the average person around the world spends a little more than an hour a day on Facebook, Instagram, Snapchat, and Twitter combined. Tencent’s services are so pervasive in China that startups there find it difficult to refuse forging alliances with or accepting investment dollars from the company. 
“It’s a little bit like the Godfather Don Corleone saying, ‘I’m going to make you an offer you can’t refuse,’ ” says Andy Mok, founder and president of Beijing-based consultant Red Pagoda Resources LLC. “If you don’t take their money, and they invest in a competitor, it can be deadly. 
With WeChat’s rise, Tencent has tried to act like, or at least look like, a global technology leader. Later this year it will join Apple, Amazon.com, and Facebook in opening pricey new headquarters—a pair of conjoined glass skyscrapers designed by Seattle-based architecture firm NBBJ Design LLP. The towers, linked by three angular skybridges, resemble giant, slow-dancing robots.
More in Bloomberg.

Andy Mok is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

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WeChat: indispensable for Chinese tourists - Matthew Brennan

Matthew Brennan at the EU Parliament
Europe is preparing for the 2018 China-EU Tourism year and the European Parliament invited social media expert Matthew Brennan to Brussels to brief them on the position of WeChat. He explained the committee how to improve Europe's performance, writes the China-EU newsletter.

The China-EU newsletter:
Matthew Brennan, Co-Founder of China Channel, explained the potentialities of digital marketing in China. 
If one is to understand China’s digital ecosystem, one needs to understand the phenomenon of WeChat. WeChat is not social media. It is not, as many people put it, China’s version of WhatsApp. WeChat is a tool, an operating system which integrates all different functions of life.” 
In order to attract Chinese tourists, Europe needs to become smarter and link to the very tools used by Chinese travelers, such as e-wallet solutions like WeChat Pay and Alipay, online booking apps like Ctrip and Dianping, and leading mapping platform Baidu Maps.
More at the China-EU newsletter.

Matthew Brennan is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

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Tuesday, June 27, 2017

Booming creativity in China - Jeffrey Towson

Jeffrey Towson
More than a million Chinese graduated over the past years in art and design. Beida business professor Jeffrey Towson visited earlier Oriental DreamWorks and explains at his weblog why creativity is a booming business in China. The best of two world's approach.

Jeffrey Towson:
At ODW’s offices, I interviewed their creative head Peilin Chou and got a tour. Walking around their offices, you could see their animators (they call them artists) working in teams on everything from story ideas to designing the hair and surfacing of various characters. Overall, it’s impressive – but as a finance creature I do find the whole creative process a bit of a mystery. 
My discussion with Chou mostly focused on their creative professionals. I wanted to know where they come from and how they work together to create the animated films. ODW does appear to be producing a level of quality mostly unmatched in China for animation. And the key to this appears to be how they combine young Chinese artists with Hollywood expertise and experience. 
ODW had about 250 staff total, with the creative team having about 150 artists and animators. Their artists were over 90% native Chinese, and mostly trained at China’s art and design schools. The staff overseeing project development were about 50% native Chinese and 50% Chinese-Americans with Hollywood experience. So it’s a hybrid “best of both worlds” approach.
The first major work by ODW was the January 2016 release of Kung Fu Panda 3. It was the top grossing animated movie in China at that time. And it is a compelling example of what world-class movies, made mostly by Chinese talent, can look like. The characters spoke fluent Mandarin and story was full of cultural subtleties that foreign audiences probably missed. The movie stood out as both high quality but also uniquely Chinese. 
Two other people to keep in mind when thinking about ODW are its famous founders. There is Li Ruigang, head of China Media Capital. Li is arguably at the forefront of creative China and has long been a “partner of choice” for Hollywood in China. 
And there is DreamWorks co-founder Jeffrey Katzenberg, who has been consistently ahead of the curve when it comes to China. His launch of Oriental Dreamworks in 2012 was an important first in terms of joint venture studios in China. However, prior to this he was also the person who created Disney’s film Mulan, the first animated movie based on a Chinese character. And prior to that he was the studio executive who approved The Joy Luck Club, the first major Hollywood movie about Chinese-American families. Around the same time, he was also responsible for creating a Disney internship program that brought some of the first Asian-Americans into the Hollywood studio system. 
According to Peilin Chou, “Jeffrey[Katzenberg] has always been a visionary who understood that a great story is a great story. And regardless of the culture, audiences worldwide will tune in for a great story. In addition, he has always had a genuine passion and love for China.” Chou, a Hollywood veteran and now rising star in China, was one of the first four interns selected for Katzenberg’s internship program back in 1994. 
The Chinese education is a big part of this story. I am a professor at Peking University so I do have a reasonable view of the education system. And it is impossible not to notice the huge improvements in students over the past five years. They have become much smarter and more sophisticated. And they are shockingly ambitious. So the idea that there are similar advances in arts and culture is not surprising to me.
More at Jeffrey Towson's weblog.

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Monday, June 26, 2017

How to gain loyalty from China's consumers - Tom Doctoroff

Tom Doctoroff
China's consumers are perceived to be some of the most promiscuous in the world when it comes to picking brands. But there are ways to avoid this conundrum, says branding expert Tom Doctoroff at his LinkedIn page, using the Prophet’s Brand Relevance Index (BRI).

Tom Doctoroff:
China is bimodal. Premium brands, which are usually multinational, command high margins but narrow scale. While mass brands, which are usually domestic, sell at a lower price point, but have broad penetration. The white space in between is vast. By tapping into each of the above golden rules, brands can take advantage of this opportunity to become more relentlessly relevant. 
International companies can be more ruthlessly pragmatic by increasing accessibility without degrading cachet. Luxury brands, for example, can leverage sub-brands to expand reach. Armani appeals to different segments through Armani Collezioni, Emporio Armani, Armani Exchange and Armani Jeans without diluting its master brand appeal. Premium brands can target youthful segments by expanding the range of lower out-of-pocket cost items. Gucci retail stores are already accessory meccas, with bags, sunglasses and mobile phone straps moving to the front of the stores. 
Local brands should pull themselves up to higher price tiers. They should define a single-minded proposition and brand purpose, then reinforce their commitment to distinctive inspiration and pervasive innovation. Shenzen-based drone brand DJI’s “future of possible” proposition and Starbuck’s “share the love” gifting app are great examples of the former. Baidu’s aggressive foray into artificial intelligence and Dyson vacuum cleaners’ breakthrough designs – wireless, bladeless, colorful – epitomize the latter. 
All brands, both local and multinational, should become more customer obsessed. Leading internet insurance brand Da Te Bao’s use of everyday language to simplify buying decisions and Ping’an’s “good doctor” app both signal respect for ordinary people. In the end, deep insight into the lives of consumers is the key to locking better, more profitable, growth.
More tips and tricks at Tom Doctoroff's LinkedIn Page.

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The success of Fo Guang Shan - Ian Johnson

Ian Johnson
Religious groups in China have had different degrees of success, depending on their relations with the authorities. Among the Buddhist Fo Guang Shan, has been the most successful, writes author Ian Johnson of The Souls of China: The Return of Religion After Mao in the New York Times. Has Fo Guang Shan changed China, or is China changing Buddhism, he asks.

Ian Johnson:
Fo Guang Shan is perhaps the most successful of these groups. Since coming to China more than a decade ago, it has set up cultural centers and libraries in major Chinese cities and printed and distributed millions of volumes of its books through state-controlled publishers. While the government has tightened controls on most other foreign religious organizations, Fo Guang Shan has flourished, spreading a powerful message that individual acts of charity can reshape China. 
It has done so, however, by making compromises. The Chinese government is wary of spiritual activity it does not control — the Falun Gong an example — and prohibits mixing religion and politics. That has led Fo Guang Shan to play down its message of social change and even its religious content, focusing instead on promoting knowledge of traditional culture and values. 
The approach has won it high-level support; President Xi Jinping is one of its backers. But its relationship with the party raises a key question: Can it still change China?
Fo Guang Shan is led by one of modern China’s most famous religious figures, the Venerable Master Hsing Yun. I met him late last year at the temple in Yixing, in a bright room filled with his calligraphy and photos of senior Chinese leaders who have received him in Beijing. He wore tannish golden robes, and his shaved head was set off by thick eyebrows and sharp, impish lips. 
At age 89, he is nearly blind, and a nun often had to repeat my questions so he could hear them. But his mind was quick, and he nimbly parried questions that the Chinese authorities might consider objectionable. When I asked him what he hoped to accomplish by spreading Buddhism — proselytizing is illegal in China — his eyebrows arched in mock amusement. 
“I don’t want to promote Buddhism!” he said. “I only promote Chinese culture to cleanse humanity.” 
As for the Communist Party, he was unequivocal: “We Buddhists uphold whoever is in charge. Buddhists don’t get involved in politics.”
Much more in the New York Times.

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Xi Jinping: more control on private companies - Paul Gillis

Paul Gillis
China is bringing more of its private companies to heel, both domestically and their international investments. Peking University accounting professor Paul Gillis sees it as an effort by president Xi Jinping to consolidate its power, he tells the VOA.

The VOA:
China is probing the loan practices of a group of big private sector conglomerates who have been on a high-profile global spending spree over the past few years. And although the review targets only a few of the country’s most politically-connected companies, some analysts see an attempt to increase government control over the role played by the private sector in foreign markets. 
"I think this is an attempt to change the direction (of) the role these Chinese companies play in the Chinese economy," says Paul Gillis, a professor at Peking University's Guanghua School of Management. "To align them more closely with the policies of the government and to reduce the risks that actions of these private companies could end up having a shock effect on the economy as a whole."... 
Peking University's Gillis says it appears the Chinese government is coming to terms with how to effectively regulate private enterprises, companies that behave more aggressively than their state-owned counterparts. But he also sees the move as a further consolidation of power by President Xi Jinping, bringing companies more under the control of the central government. 
"I think many of the companies had a pretty favorable treatment from prior administrations, and I think Xi Jinping is less enamored of these large private companies than some of his predecessors were." 
Expensive acquisitions by companies like Wanda and Anbang have thrust China into the global spotlight. But the news and commentary that followed the companies' mega-deals has not always been positive.
More in the VOA.

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Rules for self-driving cars getting up to speed - Mark Schaub

Mark Schaub
Tesla was the latest to announce the building of its car plant in Shanghai, but self-driving and electric cars are making many inroads in China. Shanghai-based lawyer Mark Schaub gives for Lexology an overview of the latest regulations to facilitate this trend. China seems to be late follow the latests developments, but catching up fast, he says.

Mark Schaub:
The scene seems set for rapid technological developments to revolutionize the automotive industry in a way similar to other products such as mobile phones. 
It seems clear that a major trend will be a transition from cars with advanced features to truly smart cars. It is likely that part of this trend will be that smart cars equipped with ADAS will become increasingly popular with the ultimate goal being intelligent automobile technology that allows for fully self-driving cars. This technology will go far beyond computer assisted driving. 
China seems to be aware of both the challenge and the opportunity. “Made in China 2025[10] includes intelligent Internet-connected cars as a key development goal. Further Made in China 2025 specifies that China will master technologies relating to intelligent assisted driving and establish preliminary autonomous R&D systems and support production systems for intelligent Internet-connected cars by 2020. Beyond this China has also announced its intention to master technologies for automatic driving, establish a complete autonomous R&D system, build a supportive production system and encourage industrial clusters of intelligent Internet-connected cars. All these goals have the overriding ambition of being able to have a fully upgraded, world class Chinese automobile industry by 2025. 
Steps have already been taken in this regard, by way of illustration in 2016 the Ministry of Industry and Information Technology (MIIT) commissioned a system proposal for intelligent Internet-connected cars. This draft has become the standard framework system for industrial discussions and will be issued to the public for comment once the industrial discussions have been completed.[11] 
Another example of China taking measures is that in July 2016, the National Technical Committee of Auto Standardization (NTCAS) issued the Notice of Conducting Surveys as to the Applicability of Mandatory Vehicle Standards for Intelligent Internet-Connected Cars (2016 NTCAS Notice). Of particular interest is that NTCAS sets in place a review of existing vehicle standards and relevant laws and regulations in China in order to identify how such regulations need to be adjusted so as to avoid restricting the implementation of such new technologies and also to create solutions to enable ADAS and automated driving technologies to be adopted in the marketplace. 
Another important measure is the China Automotive Technology and Research Center initiated China-New Car Assessment Program (C-NCAP). This program ensures that active safety measures are incorporated into the assessment system. On January 12, 2017, the official website of C-NCAP issued the draft C-NCAP Administration Rules (2018) for comment. This is another step by China that shows the increased importance placed on active safety, including AEB and will facilitate the development of ADAS in China. 
As mentioned above, one issue retarding the growth of ADAS in China is that the automotive refitting market for ADAS is currently conducted on a semi-underground basis due to unclear interpretation and enforcement of regulations. 
This issue has not gone unnoticed by the industry which has called for amendments to offending laws and regulations. The Automobile Refitting Committee of the Chamber of Automobile and Motorcycle Auxiliary Products, which is affiliated to All-China Federation of Industry and Commerce, has proposed enacting Administrative Measures for Refitting of Motor Vehicles in 2013 and 2015. These proposals have received responses from MIIT, Ministry of Public Security and other ministries[12]. It is expected that the Chinese automotive refitting industry will be governed by new regulations in the near future – this bringing of the industry out of the semi-underground will promote further sustainable growth in the Chinese automotive refitting industry and this will naturally flow on to the ADAS industry. 
The Chinese authorities’ attention to the development of the smart car in China can also be seen in the joint issuing in April 2017 of the Auto Industry Mid and Long Term Planning. This plan was jointly issued by powerful departments such as MIIT, National Development and Reform Commission and Ministry of Science and Technology. The plan stresses that China will strengthen its efforts in the break-through key technologies in respect on intelligent and Internet-connected cars and will also take various measures to foster such developments. These measures include organizing pilot areas, improving testing and assessment systems and updating laws and regulations. In addition, under this initiative, by 2020, the inclusion of DA (Driver Assistance), PA (Partial Automatic Driving) and CA (Conditional Automatic Driving) systems for new cars is slated to exceed 50% and inclusion of Networking Driver Assistance System are expected to reach 10%. The Networking Driving Assistance System will also lead towards the goal of developing intelligent transportation cities. By 2025, the inclusion of DA, PA and CA systems on new cars will reach 80% and 25% of these cars will be considered substantially or fully automatic driving cars.
Much more in Lexology.

More background on ADAS is here. Mark Schaub is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

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Friday, June 23, 2017

Political risks haunt investors - Shaun Rein

Shaun Rein
Overseas investments by private Chinese companies have become under unprecedented scrutiny, causing a severe drop over the first quarter of 2017. Political analyst Shaun Rein has never seen such a political pressure before, he tells the South China Morning Post.

The South China Morning Post:
While there’s no suggestion of wrongdoing, the heightened scrutiny of the companies underscores Beijing’s new attitude towards overseas mergers and acquisitions by private companies. 
The number of major overseas asset purchases by mainland companies plunged by 80 per cent in the first quarter, as Beijing tightened controls on capital outflows and ratcheted up scrutiny into deal funding. 
“Investors right now have to be political experts as much as valuation and financial ones - the political risk now is the highest I’ve seen in the 20 years I’ve been in China,” said Shaun Rein, founder of China consultancy Market Research Group, based in Shanghai.
China experts said the latest administrative measures pointed to the Beijing’s commitment to reduce financial risks ahead of an important political meeting this autumn.
More in the South China Morning Post.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

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Why China is no.1 in e-commerce - William Bao Bean

William Bao Bean
Europe and America are getting the message: they are behind China in e-commerce. China veteran William Bao Bean tells an European audience at Medialaan in Brussels it is not about technology, but about the speed of adoption of the users.

William Bao Bean is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.


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Wednesday, June 21, 2017

A bold move by Tencent's Pony Ma - Andy Mok

Andy Mok
Tencent's CEO Pony Ma is not very well known for his media appearances. So, when he joined the discussion about Hong Kong's future, it took political analysts like Andy Mok by surprise, he tells Bloomberg.

Bloomberg:
“The typical move is just to keep your head down ahead of July 1 and the Party Congress,” said Andy Mok, managing director for Beijing-based internet consultancy Red Pagoda Resources, referring to a leadership reshuffle later this year. “It could be that Tencent sees this as an internal strategic move to strengthen its dominance in gaming, finance, and it also creates a symbolic meaning of leadership,” he said, calling Ma’s effort “a bold move.” 
Ma’s emergence into the spotlight is highly unusual for a Chinese entrepreneur who shuns media appearances and interviews. He graces at most a couple high-profile events a year, at which he consistently refrains from extensive public pronouncements. It reflects how a new generation of Chinese tech tycoons are fast becoming de-facto ambassadors for their country. Jack Ma is among the most assured of his cohort, jetting around the world to plug his vision of helping small businesses thrive.
More at Bloomberg. Andy Mok is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

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