Chinavation

Chinese Design Appearing in Global Homes

2012-01-02T12:01:00.000-08:00

In the 1980s Steve Jobs tapped German designer Hartmut Esslinger of Frog Design to revolutionize the industrial design of Apple products. In the 1980s and 1990s IBM relied on Munich born Richard Sapper to bring elegant form and function to IBM desktop PCs and ThinkPad notebooks. Few have noticed as Chinese car companies and PC firms like Lenovo are integrating distinctly Chinese design into their products. At first glance the Lenovo IdeaCentre is another consumer all-in-one PC, but a closer glance at the rear vents of the PC reveal artistic lines reminiscent of Ming and Qing Dynasty (1368 - 1912) design. The youthful and charismatic VP of Design Yao Yingjia at Fortune 500 firm, Lenovo, is at the forefront of revealing how Chinese firms integrate their culture and history into the design of today's consumer products. Such artistry and thought is welcome in an age of impersonally cold commodity products.

Top 10 Advertising Capability in China

2012-01-02T11:51:00.000-08:00

Based on my experience managing Sales & Marketing deliverables at China's top IT firm, Lenovo, these are the top 10 Advertising Capability required when selecting a local or MNE ad agency in the PRC. Most of these advertising skills are essential in any geography, although many ad agencies lack all ten of these capabilities.

Top 10 Challenges for Local Chinese Marketing Firms

2012-01-02T11:20:00.000-08:00

This is a subjective list of the top 10 Advertising Challenges in China based on my 7 year experience of marketing and managing local ad agency relationships in Beijing. While there are many reputable advertising firms operating in China, unfortunately the above list constitutes the challenges many local ad agencies exhibit. This does not mean that reputable firms are not gaining enormous advertising contracts, in fact China is one of the top destinations for corporate advertising spending, as demonstrated in this CampaignAsia & R3 Pitch List from 2011.

Cutting Edge Marketing Shows People Who Do in Beijing

2012-01-02T11:05:00.000-08:00

Chinese metropolises like Beijing are becoming hubs for the creative class despite the unending traffic, pollution, and internet censorship. The web video that I wrote and edited shows five real-life creators in Beijing - a model, photographer, product designer, chef and business manager using PCs throughout their day to work smarter.

Four U.S. Brands are Most Engaging Brands in China, Says R3 Research 2H 2011

2012-01-02T10:41:00.000-08:00

As many Americans fear the dominance of Chinese firms, much as Americans feared the threat from Japanese brands in the 1980s, it is important to note that in the second half of 2011, R3 research shows nearly half of the most engaging brands in China are American brands - Apple no. 2, Nike no. 3, and Coca-Cola no. 5 and KFC (Yum Brands) no. 10. Americans should take heart that Buyology Inc. research of the top 20 Most Desired Brands in the U.S. for Men or Women do not list a single Chinese brand. So who should be fearful, the Chinese or Americans?

Despite China's Rise not a Single Chinese Brand on Interbrand Global 2011 Top 100 List

2012-01-02T10:19:00.000-08:00

While U.S. politicians ratchet up the threat of China to challenge U.S. capitalism and business, it is important to note that 49 out of the Interbrand Best 100 Global Brands 2011 list are U.S. firms and not a single Chinese brand made the coveted list. Marketing power house, Apple, led the Interbrand list with the largest annual change in brand value - surging 58%. Germany with respected brands like Mercedes, BMW and SAP is the closest runner up with 10 top global brands, while France and Japan share third place with 7 top global brands each. Time will tell when Geely which bought Volvo in 2010, BYD with investment by Warren Buffet, or Huawei will make the Interbrand Global Brand list. With such a formidable lead in global branding, U.S. politicians would better serve their constituents by focusing inward on how to invest in long-term R&D, primary - university Education, and Community Infrastructure to ensure American businesses remain competitive against global competition.

Sarah Palin's Foreign Policy

2010-11-26T04:39:00.001-08:00

Sarah Palin's Foreign Policy
Originally uploaded by Cory M. Grenier

On Nov. 25th, 2010 Sarah Palin stated on the Glen Beck radio show "Obviously, we've got to stand with our North Korean allies" (1).

Palin has consistently demonstrated a lack of geopolitical understanding. The Idaho born Republican-Tea Party leader and Fox News Host entered college on a beauty pageant scholarship (2). Decades later, Palin received her passport at the age of 42 (3), and made her first international flight to Kuwait.

Before quitting as Governor of Alaska, in an interview with Alaska Business Monthly, Sarah stated she supported the Bush Administration in Iraq but admitted, "I've been so focused on state government, I haven't really focused much on the war in Iraq" (4)

Demonstrating her understanding of international diplomay on a May 29th, 2010 Fox News show, Palin stated President Obama would be reelected if, "he played the war card. Say he decided to declare war on Iran or decided really come out and do whatever he could to support Israel, which I would like him to do" (5).

After BP's Deep Horizon oil rig, which was being maintained by Halliburton, killed 11 men and pumped 185 million gallons of oil (6) into the Gulf Coast in the worst oil spill in history, Sarah stated defiantly, 'I repeat the slogan 'drill here, drill now' (7). Later saying, "I want our country to be able to trust the oil industry."

Sarah Palin holds a Univ. of Idaho BA degree in Communications.

(1) www.bbc.co.uk/news/world-us-canada-11840828
(2)Johnson, Kaylene (April 1, 2008). Sarah: How a Hockey Mom Turned Alaska's Political Establishment Upside Down. Epicenter Press. p. 80.
(3)http://www.boston.com/news/nation/articles/2008/09/03/palin_not_well_traveled_outside_us/
(4) andrewsullivan.theatlantic.com/the_daily_dish/2008/08/pal...
(5) www.politicsdaily.com/2010/02/07/sarah-palin-on-fox-news-...
(6)http://pubs.acs.org/cen/news/88/i39/8839notw7.html
(7)http://voices.washingtonpost.com/right-now/2010/04/palin_on_oil_spill_no_human_en.html

Local Chinese Clothing Retailers Copy Foreign Brands

2009-07-17T23:23:00.000-07:00

To local Chinese living in Shang Di on the northern tip of Beijing, the new mall opening was a blessing. For four years residents have had to put up with long lines at the supermarket and little entertainment. The opening of Hualian Mall , the eighth Hualian Mall to open in Beijing alone, brought the first cinema, video arcade and mega shopping market to Shang Di. But during my first walk through the mall I couldn't help noticing dozens of local Chinese retailers knocking off established western brands. Here are some examples from the mall and down the road in nearby Wu Dao Kou.

Above the retail store scrambles the luxury car brand acronym BMW, which stands for Bavarian Motor Works, and inside the store a modified logo of the German car brand is on display. -Hualian Mall, Shang Di, Beijing

This product line of baggages are branded similarly to the luxury brand 'Hugo Boss', which was founded in Metzingen, Germany in 1923 by Hugo Ferdinand Boss. -Hualian Mall, Shang Di, Beijing

A hybrid knockoff of luxury brands Calvin Klein and Paul Smith, a posh Nottingham based UK brand. -located nearby Shang Di in Wu Dao Kou, Beijing

It should be noted that the Hualian Mall did contain a legitimate branch of the London based coffee powerhouse Costa Coffee. Within three months the Costa coffee shop was closed down, apparently not tailoring its beverages to the local tastes of Shang Di residents who are likely more accustomed to tea, or Tsingtao.

Download Software to Jump over the Great FireWall

2009-07-17T23:00:00.000-07:00

JumpOverGreatFireWall/">

China Censors Foreign Websites

2009-07-16T06:06:00.000-07:00

The Open Net Iniative (ONI) recently mapped out locations where Internet censorship is "pervasive". Leading the list is China, Iran, Syria, Vietnam, and Tunisia. As chronicled by ONI and experienced in person, in March Youtube was permanently blocked. Two months later in the days before the 50th anniversary of the Tibetan uprising and also the one year anniversary since violence erupted in Tibet in 2008, Blogspot and Wordpress were summarily blocked and have not returned. On June 4th, Flickr, Picasa Web Albums, Twitter and Hotmail were blocked within China during the anniversary of the Tiannamen Square protests. In early July violence broke out in Xinjiang's capitol Urumqi between ethnic Uighurs and Han Chinese, which saw the blocking of Facebook.

The irony is social media facilitates one of humanities most basic needs - the sharing of ideas. Much has been written about how China needs creative people to help the country transition from a largely agragarian economy in rural areas and low-skilled manufacturing to high value added service industries. But how many creative ideas are blocked with a swift invisible hand of censorship? How many innovative new technology videos such as Google Tech Talks will never be seen by local Chinese? How many inspiring photos will never be seen by any of China's more than 50 ethnicities? And how many potential business conversations and relationships will never be forged online? Yes, China has its own search engines like Baidu, and its own versions of youtube such as Youkou, but in a 'flat world' a country cannot benefit from the collective wisdom of the crowd when billions of people's outside voices are restricted. As Richard Florida states in Flight of the Creative Class, a country's ability to compete is largely based upon its ability to attract the most talented and creative global people. Mr. Florida states that this is facilitated when regions embrace openness, and harnesses the power of creative individuals. What would my hometown of Silicon Valley, California be like without creative immigrants like Google co-founder Sirgey Brin of Russia, Intel co-founder Andy Grove of Hungary, or Sun Microsystems co-founder Vinod Khosla of India? If the U.S.A. had restricted individual forms of self expression and sharing then these creative individuals may have never have chosen to work and live in America. Each foreign website that China blocks deters talented people from choosing to make the move to China. Ironically, it is a global creative class who can help China realize its ambitions to establish the modern service economy it so badly craves.

Even China is not immune to Hip Hop Culture

2009-07-06T08:05:00.000-07:00

From With the locals

Major League Baseball adds Cheerleaders in China

2009-07-06T07:58:00.000-07:00

In China, Baseball has Cheerleaders from Cory Grenier on Vimeo.

China's Economic Growth Continues Faster than the West

2009-07-06T07:47:00.000-07:00

In July 2009, Bloomberg reports that China's stock market displaced Japan as the second most valuable stock market in the world, with the Shanghai Composite Index growing 75% from the same period last year. Investors are reacting positively to the Chinese stimulus package, which unlike the US stimulus, has created record lending, increased domestic consumption and boosted the stock prices of domestic firms. Infrastructure spending in the less developed western provinces, high auto and real estate sales and domestic consumption for manufactured goods are credited with China's recent economic recovery. Despite the 'global financial crisis', China's economy grew 7.9% over the same period last year. China's spectacular economic rebound points to a meltdown in the U.S. housing, credit and securities market, which have hit western economies hardest. The globalized impact from U.S. financial troubles did not cross the Pacific as hard as predicted. For the first time in modern history, governments in the developing countries may be looking to China rather than the U.S. for economic and political models to copy. The long term effects of this socio-economic change are unknown.

Millions of Boy Security Guards

2009-07-06T07:40:00.000-07:00

With a national slogan of a "Harmonious Society", why all the security? Every large apartment complex in China is guarded by young Chinese security guards who can be seen staring bored into space, harassing motorists, or listening to music on their mobile phones. Beijing has more security guards at residential areas than any city I have ever visited. In 2007, the Beijing Municipal People's Congress stated there are 200,000 security guards in Beijing alone, of which 50,000 security guards patrol properties. Xinhua News Agency states that a security guard earns only 1,000 RMB ($133) a month, which is less than a waiter. The report also states that 30,000 guards are employed illegally. In 2006 there were five cases of murder in Beijing by security guards, in which all five of the convicted guards were below the age of 20, were not natives of Beijing, and had no high school education.

Note: Once I saw a badly beaten guard, who looked about 16, but a elite police officer who arrived stopped me from helping him and refused to let me give him a cold Coke for his swollen cheek. Often I donate my old clothes and magazines to the guards who stand freezing for hours in the cold winters and sweating during hot summers. If China wants to be a world class country, and not only the largest economy, then the 50,000 young men standing in place at Beijing apartments will need a high school education and a more purposeful role in society. For a start, how about an Eco-Corps of newly trained botanists, forestry majors and biologists planting trees and plants in the barren, deforested hills surrounding Beijing?

90 Second Motorcycle Taxi Ride in Beijing

2009-07-06T07:33:00.000-07:00

90 Second Motor Taxi Ride in Beijing from Cory Grenier on Vimeo.

Behaviors are Learned

2009-07-06T07:16:00.000-07:00

From With the locals

China's Economic Winners

2009-07-06T06:25:00.000-07:00

From California Visit

H1N1 Lands in Hong Kong and China Reacts

2009-05-05T09:08:00.000-07:00

On the morning of Friday, May 1st I decided to book a three night stay at the Renaissance Hotel over the Metropark Hotel in Wan Chai, Hong Kong. That was a fortunate decision. Upon landing in Hong Kong from Beijing I saw that people were taking the H1N1 flu seriously. As the above photo illustrates, numerous passengers, and every HK airport employee were wearing protective masks. I was asked to fill out a new type of health form that asked if I had 'contact with pig'.

Once in Wan Chai, HK my girlfriend and I passed a chaotic scene of police, medical workers and press photographers wearing masks outside the Metropark Hotel as we walked to the nearby entertainment district Central. I commented that someone inside the Hotel was probably infected with the H1N1 virus. I was right.

Earlier in the day flight MU505 from Shanghai to Hong Kong carried a Mexican passenger who was infected with the H1N1 virus and checked in to the Metropark Hotel. The passenger became the first confirmed H1N1 flu victim in Asia. The Hong Kong and Chinese government swiftly reacted by placing all 354 hotel guests and staff under a seven day quarantine inside the Metropark Hotel. In addition all flights between Mexico and China were cancelled indefinitely. Throughout China crowds are the norm, personal space is a luxury, and public spitting is prevalent. Under such conditions it is easy to understand China's reaction to prevent an epidemic from catching hold of the population.

The South China Morning Post reported that local HK restaurant owners in Wan Chai were suffering economically from a 50% drop in business. But entrepreneurial local street vendors could be seen selling enormous quantities of protective face masks. Perhaps the street vendors are analogous for the current financial downturn, where despite a global crisis situation, hardworking Chinese continue to profit.

China's GDP Growth Slows to a 17 Year Low

2009-04-26T20:08:00.000-07:00

This clip states that China's GDP growth grew at a mere 6%, its lowest rate since 1992. The growth decline has been less global demand for Chinese made products with exports declining 20% from this time last year. Domestically China's (USD) 600 Billion dollar stimulus is contributing to heightened domestic growth with China's stock market up and auto sales growing to record levels. But as the former blog post shows, growing consumption of auto sales has its own social and long term economic impacts.

China's Environmental Challenge will equal a Talent Challenge

2009-04-26T09:46:00.000-07:00

Less than a year since Science Magazine placed the title, 'China's Environmental Challenges' on its cover, the New York Times reports that China is cutting back on its environmental projects and instead focusing more resources on creating economic growth in an effort to smooth the impact from the global financial crisis. Obviously China's leaders need to continuously create employment opportunities for its enormous population and sustain social stability. However the Government should continue to invest in environmental protection and green projects because they can ensure higher efficiency, GDP growth and lower health and environmental costs. Critically important a clean environment will ensure the flow of global human talent required for China's future economic and technological advancement.

The China Price is especially high for the environment and its inhabitants. The photo above shows the personal effect that Beijing's pollution had on me during an hour motorcycle ride behind scores of smoggy diesel trucks. When I returned to my Beijing apartment I coughed up dust and blood. A book titled The River Runs Black: The Environmental Challenge to China's Future by Elizabeth C. Economy states that the cost of being the world’s largest manufacturing center is that

China

is now the leading contributor to climate change. The River Runs Black states that air pollution contributes to the deaths of 300,000 Chinese people a year. In 2006, Economy delivered a grave report to U.S. gov. officials titled, China's Environmental Challenge, that states 75% of 340 monitored cities in China have unclean air.

The Wall Street Journal reported that environmental science professors at Peking University estimate air pollution killed 25,000 people in Beijing and cost 7% of city GDP in 2002 alone. China's capitol, Beijing, has consistently led China's Environmental Protection Agency as having the fewest days that meet China's air quality standards.

Air pollution not only kills people, but it also deters the world's top talent from moving to Beijing. Richard Florida details in his book Flight of the Creative Class , that today's top innovators relocate globally to places that provide the best local environments, business opportunities and overall quality of life.

Modern day Silicon Valley in California would not exist without the top innovators from around the world such as Google co-founder Sergey Brin of Russia, Sun Microsystems co-founder Vinod Khosla of India, or Intel co-founder Andy Grove.

As long as Beijing residents face choking traffic, burning lungs and itchy eyes, the creative class of the world who can collectively fuel the high value service economy that China's government leaders yearn for, will stay at home.

China leads World in Traffic Deaths

2009-04-26T09:12:00.000-07:00

Any driver or passenger on China's roads will see that traffic rules are systematically broken. The result is that China leads the world in traffic deaths since 1987. Last year, 81,000 people died on

China

's roads according to the China Automotive Technology Research Center (CATRC).

After the 2008 Beijing Olympics and Space launches, the world community awoke to China's concrete aspiration to become the world's next super power. But to accomplish this feat, the citizens of the country will need to develop respect for the regulatory laws that can enable world-class development. Countries whose citizens respect intellectual property rights, uphold workers safety and obey civil regulations have shown sustained growth that have withstood the economic downturns of time.

The China Price

2009-04-20T00:25:00.000-07:00

The China Price is an enlightening read into the lives of the people behind the label, and exposes the corrupt practices of some of the local manufacturers and western multinationals. Recently Financial Times journalist Alexandra Harney discussed her book The China Price, which discusses the experiences of everyday Chinese who toil in poor conditions to produce products often sold to the West. Alexandra candidly answered questions and used real life examples of the people she had met during her investigations. At one point Alexandra shared how some dishonest Chinese manufacturers run two factories. The first factory is clean and presentable for western inspectors. A second shadow factory is located nearby where working conditions are worse and production rates much higher, which means employees must work illegal over-time to meet demand.

The book also states in 2006 the China Government moved to strengthen legal protection for workers, but both the American Chamber and European Chambers of Commerce representing multinational firms warned that the law would greatly reduce employment opportunities for PRC workers and hurt China's competitiveness for foreign investment (p. 258-259). One day maybe firms operating in China will learn that the best way to sustainable global economic growth is to raise the bar for the well being of all people regardless of geography. That will require meaningful China innovation.

China's Demand for Salmon Grows

2009-04-19T04:03:00.000-07:00

During the first nine months of 2008, China's global seafood imports increased 50% to total over one million tons of fish. Recently I ate at a Chinese buffet where I saw customers going for bowl after bowl of Shark Fin Soup and the Sushi chef worked hard to keep enough salmon on the serving tray. No sooner had he thinly sliced a long fillet and set the red meat out, then the first two customers would take the entire platter between them. As I stood in line I began to wonder what a increasingly affluent population of 1.3 billion seafood consumers mean for today's salmon population and fisherman.

In 2006, the USDA reported that China was the second largest single country to consume US salmon products, after Japan. Between 2005 and 2006 US salmon exports to China grew 25% to reach 36,000 tonnes, worth nearly $110 million USD. During the same period the US imported 22,000 tonnes of salmon from China at a value of $80 million. Evidently salmon is one commodity that the U.S. enjoys a favorable balance of trade with China. But is this sustainable? In California officials have cancelled the Chinook Salmon fishing season because of low fish populations caused by over fishing and environmental impacts from dams, pesticides and pollutants from cities. The message is clear, China's growing consumer purchasing power will continue to grow demand for salmon imports and other seafood. However as California has demonstrated, nature is increasingly unable to sustain the market's demand for salmon. Please click this link for a useful Sustainable Seafood Guide from the Monterrey Bay Aquarium to learn how you can help conserve dwindling fish populations.

Edward Burtynzsky Photo Exhibit at Paris Beijing Gallery

2009-04-15T11:16:00.000-07:00

Edward Burtynsky shows Globalization's Physical Impact on China

2009-04-15T11:10:00.000-07:00

The People behind China's Development

2009-04-13T18:46:00.000-07:00

China's Electrifying Car Strategy

2009-04-13T06:50:00.000-07:00

Last year a number of electric cars were shown at the Beijing auto show, but most were being manufactured by Japanese firms. Mitsubishi's urban car, the iMiev, (above) plugs into a standard 110 volt power outlet and is capable of 80 miles per charge. The car is powered solely by electric lithium-ion batteries. However the global economic crisis is hitting the Japanese auto makers hard.
General Motor's all electric Volt, (above) was scheduled for production in Nov. 2010. But last December, GM announced that it is halting development of the Volt due to the financial crisis. This is not the first time. In 1996 the US had the lead in electric car technology, but GM similarly abandoned the effort and destroyed its fleet of EV1 electric vehicles despite public protests. The Obama Administration is stressing that GM should keep the Volt project alive, despite its unprofitable outlook in the short-run. The Volt project has already cost GM $1 billion in research and development, and represents the USA's only fighting chance to wrestle a piece of the electric car market from its competitors in Asia. Today the United States is up against a more formidable competitor than Honda or Toyota. China.

Last year as Detroit auto manufacturers were closing, China's passenger car market grew 10% in 2008, and is continuing to expand. China's 'compressed development' has seen people go from no telephone to mobile phone, from no PC to wireless laptop and now masses of people are going straight from bicycles to cars. The reason why China might leapfrog its Japanese and Western counterparts in electric car adoption is because the habits of the middle-class are still being formed. In addition, the centralized government is throwing its support behind electric cars. China's Minister of Science and Technology is a former Audi engineer from Germany who in April 2009 states, "We need to be sustainable in different sectors, particularly in the auto sector". To meet this objective domestic firm like BYD (Build Your Dreams), a local battery manufacturer for mobile phones and notebook PCs, is producing battery powered cars. In addition, the Chinese Ministry of Industry and Information Technology has signed an agreement with Nissan to develop electric cars. The Government has set a target to have 500,000 non-gasoline cars on the road by 2011. China's Olympic and Space program have proved that the country is capable of meeting ambitious project deadlines. Western auto firms can only see the future by looking out the windshield and not staring listlessly in the rear view mirror.

China now the World's Largest Car Market

2009-04-12T07:17:00.000-07:00

Above, an international model named Marta Wojcicka attracts more attention from Chinese spectators than the convertible SAAB car behind her.

Last year Beijing hosted one of the largest Auto Shows in the world. Tens of thousands of people were pushing and shoving to take photos of the gleaming cars and attractive women surrounding them. As the U.S. economy is slowing, in Jan. 2009, China outpaced the U.S. to become the world's largest car market. Monthly car sales in China totaled 735,000 cars, nearly 12% more than in the U.S.
The Beijing car show was chaotic. One photographer from San Francisco stated he had to leave early because there were just too many people. Since then many of the people at the 2008 Beijing Car Show have bought new cars. Reuters news reports in the first two and a half months of 2009, Beijing is adding an average of nearly 1,500 new cars each day to its roads. Ironically the Chinese Government is restricting 930,000 cars from driving each week day in Beijing, in an effort to curb the pollution and traffic caused by the Capitol's 3.6 million vehicles. Car manufacturers should also practice some restraint of their own, and consider marketing more ecological vehicles that enrich the total experience of their customers lives. Sadly the glamorous car dreams promoted at the Beijing Auto Show do not match the polluted and restrictive experience that motorists and residents live with in Beijing.

The World's Largest Car Show

2009-04-12T06:53:00.000-07:00

Two Minute Walk at the Beijing Auto Show from Cory Grenier on Vimeo.

Motorcycle Mania - China's Mechanized Cash Crop

2009-04-12T06:37:00.000-07:00

Driving a motorcycle in China can be deadly. Above a motorcyclist in Shang Di District lays helpless after on an accident. But last year on a trip to Henan my colleague and I saw two dead motorcyclists lying unnaturally motionless across their motor bike. Seconds earlier the two riders had collided with a blue farm truck. Neither rider was wearing a helmet.

But with the right regulatory framework motorcycles, especially electric powered, could be used to curb pollution, reduce gasoline consumption, and ease traffic. Taiwan is a good example where thousands of scooters share the roads with cars. Imagine the traffic jams if every scooter rider in Taipei were driving a car! In Beijing, millions of new middle class car drivers, construction and transport trucks, and low-income motorcycle riders share the same roads. But motorcyclists are restricted from many areas of the city.

Despite the large motorcycle riding population in China, driving a motorcycle in the country carries enormous risk, especially in the southern city of Shenzhen. After a series of crimes were committed by thieves using motorcycles, the Shenzhen government confiscated nearly 600,000 motorcycles since 2003, and publicly destroyed 14,000 last year. This would be unthinkable in Taiwan, for countless people use motorcycles and scooters as their primary transportation. But at the same time that China is destroying motorcycles at home, the country's motorcycle production continues to grow. The Chairman of China's giant motorcycle firm Lifan states that the company is seeking to use China's rural stimulus support to expand motorcycles into the countryside. Also global exports continue to rise. In 2008, according to China Economic Net nearly 90 Chinese firms exported over 9.7 million motorcycles.

According to the China Daily, in 2006, China was already the world's largest motorcycle manufacturer - producing half of the world's motorcycles. However premium motorcycle firms like Ducati have not entered Mainland China, although Ducati is present in Hong Kong. Most large motorcycles are banned in Beijing, and nearly all foreign motorcycles have been brought into China illegally and are using falsified registration and fake license plates. The photo above shows a Ducati dealership in Taiwan.

Driving a motorcycle as a foreigner is especially challenging. The China Transportation authority does not provide a traffic rule book in English, so a person must go to FESCO and purchase a traffic manual that has been translated into English for $22. You must also have copies of your home license, and a document that translates this information into Chinese, along with passport size photos on a white background. The traffic exam is 100 questions in English with a 45 minute time limit. Many foreign citizens have been seriously injured in motorcycle accidents, and are consistently questioned and even pursued by police.

Soon it may be time to hang up the helmet. Below is a clip of what driving my Ducati is like on the commute to work in Beijing.

The Ducati Diaries - risky streets of Beijing

2009-04-11T08:08:00.000-07:00

The Ducati Diaries - risky streets of Beijing from Cory Grenier on Vimeo.

2009-04-10T11:36:00.000-07:00

Motorcycles in Beijing often have an 'A' plate which is the registration code of Hebei. To drive legally within the inner ring roads of Beijing, one must have a proper 'B' license plate.

Fires Happen in China, so unlock the Doors!

2009-03-29T06:55:00.000-07:00

Visitors to China may be frustrated by countless exits being locked for no credible reason. This photo was taken at a busy shopping mall in Xidan, Beijing. Customer after customer walked to the exit which was locked and then searched for a open exit. Beyond the inconvenience is the danger of death if a fire were to occur. In a panic people would not be able to calmly find the way out, but would run to a locked exit and perish from smoke inhalation and burns. How many casualties would be suffered here if there was a another shopping centre fire, like the blaze last year in Xinjiang, China?

The Shopping Mall blaze killed three firefighters and two others on Jan 2, 2008. Most recently, on Feb 9th, 2009 during the Chinese New Year celebrations,fireworks caught the newly completed Mandarin Oriental Hotel on fire in Beijing. The fire caused over 700 million US dollars in damages and left one firefighter dead.

The same attention to developing China's infrastructure and technology needs to be given to enforcing the existing health and safety regulations that protect the China's people. Developing new processes and methods to hold people accountable for ensuring safety would represent meaningful innovation.

The Future Fusion of Fashion in China

2009-03-26T06:04:00.000-07:00

Last year I met a famed make-up artist and the entreprenuerial founder of Tony Studios named Tony Li. Tony shared that he left China to San Francisco where he studied hair styling and returned with new skills and dreams to open a chain of hair and photo studios across China. The billboard shows that his business has been flourishing for nearly a decade.

Works by Chen Man, Beijing's top rated photographer. She has shot ads for Lenovo, Vision and popular nightspot Bling.

Above is Chen Man, Tony Li and popular model from Poland, Marta Wojcicka. This photo shows East and Western artists collaborating to produce new forms of innovative artistic expression.

2009-01-19T09:48:00.000-08:00

Morning Traffic in Beijing from Cory Grenier on Vimeo.

2008-10-07T05:06:00.000-07:00

Weekly Chinese Idiom Last Chinese New Year I gave a box of Chunghwa cigarettes to a close friend named Liú Jié 刘杰. The expensive brand of cigarettes, Chunghwa, are sold in a soft pack, while cheaper ones are sold in a hard box. Shanghai Tobacco Co. has been producing Chunghwa branded cigarettes for over 50 years and currently exports to 30 countries on five continents. Chunghwa cigarettes have long been a prized gift among businessmen and government officials along with Wuliangye "bái jiŭ ". Bái jiŭ 白酒 literally means white alcohol, and clocks in at 80-120 proof, or 40-60% alcohol by volume, which compares to vodka with a measly 35-40%. Wuliangye 五粮液 bái jiŭ can cost up to 27,000 Chinese renminbi (US$3,900) or roughly 9 months wages for a full-time Beijing taxi driver. To be frank the Chinese don't mess around when it comes to smoking or drinking.

A 2002 study by members of the University of Sheffield and the Univ. of Michigan found that China leads the world in male smoking. Globally, 43% of men above age 15 smoke, yet in China more men smoke than don't. Maybe a smoking ban would help slow global warming? By 1999 the World Health Organization stated one in three cigarettes smoked in the world were in China. The Worldmapper.com , which uses cartograms to re-size 200 countries according to the variable being mapped, shows the global smoking population in 2002. The map below illustrates China's male smoking use relative to the USA, and the rest of the world. But the USA can still claim to be number one, ...in cigarette exports. According to a 2003 Congressional Report titled, "U.S. Tobacco Production,Consumption, and Export Trends", US annual exports were estimated be 127 billion cigarettes in 2002 alone. One firm, PhilipMorris International, stated in its 2002 Annual Report that non-U.S. shipments totalled 723 billion cigarettes!

In true Chinese tradition, when my birthday rolled around, Liú Jié gave me a gift - a 3,061 page dictionary of Idiomatic expressions with Chinese/English translations. Liú Jié knew that I enjoyed quipping Chinese idioms in a desperate act to show off my feeble command of the language. Once I ventured to China's northern city of Dalian where my host brought out a high-walled, cold glass plate topped with green lettuce and live prawns soaked in alcohol - a dish aptly named "drunken shrimp". My host and friends kicked back the bái jiŭ and ripped the live heads off the prawns. Next they stripped the dancing legs off the tails and dipped them in small sauce dished and ate them. I paused for a second watching the decapitated prawn whiskers still moving about as its torso was being digested. I wasn't fond of drinking white alcohol or eating live sea animals. But I feared disrespecting my hosts even more and joined in. Had I received my book of Chinese idioms sooner, I would have been able to say 入乡随俗 pronounced 'rù xiāng suí sú'! The idiom translates into, 'When in Rome, do as the Romans do'.

In Chinese idioms are called 'chéngyǔ' 成语 or "set phrases", which commonly consist of four Chinese characters, as in my previous example. Chéngyǔ are probably nearly as old as Chinese language itself, and my idiom tome probably has over 20,000. My highly valued book is published by China's top academic institution - Tsinghua University press. Tsinghua University is where my former and current boss, China's current sitting President Hú Jǐntāo 胡锦涛, and Liú Jié each graduated. The University also lies about three miles from Lenovo China's headquarters.

Today I would like to offer readers with a weekly idiom, 安渡难关 ān dù nán guān, which translates: TO PULL THROUGH, or tide over a crisis. An appropriate idiom for these financial times, but an idiom that also demonstrates eastern and western cultures have both overcome difficult times and share similar phrases to express it. Photo Credits: Mao Smoking by Michael Feat on Flickr; Cartogram chart by Worldmapper.com; Book of Chinese Idioms by Cory

Authors Note:

*A useful website to translate Chinese characters into romanized 'pinyin' is http://www.hanzitopinyin.com/converter/ .

*To translate between simplified Chinese/English and English/Chinese you can use Google Translator.

2008-10-04T01:58:00.000-07:00

On Sept. 25, 2008 China successfully launched the Shenzou VII spacecraft. Two days later a five-yellow star flag waving, 'made in China' spacesuit wearing Chinese astronaut, Zhai Zhigang, made history by becoming China's first space walker. Only two other super powers, Russia and the United States, have ever sent humans to walk in space. On Sunday, Sept. 28, the Chinese astronauts returned safely to a heroes welcome in Beijing.

The compressed development of China means that in just 30 short years the country has risen from a depressed Maoist-planned economy to fulfilling the same goals of science and exploration that JFK and the USSR sought as world powers during the space race of the 1960s. By 2020 China plans to launch a moon orbiter, complete a space station and land humans on the moon. The recent spacewalk strengthens the Party's credibility to execute large scale projects such as the hosting of the Beijing Olympics. After the success of the Shenzhou 6 in 2005, the Chinese government announced China would launch humans into space to perform a spacewalk in 2008. This week the Chinese Government delivered the result.

What about the United States credibility to deliver results for large scale projects that it commits to? How does the democratic USA measure up against an autocratic state controlled government to deliver upon its public commitments in space science and technology?

Nearly five years ago on Jan. 14, 2004 US President George W. Bush announced that American astronauts would return to the Moon by 2015, develop a new manned vehicle, and use the experience to land Americans on Mars by 2030. The new NASA Moon landing alone was estimated to cost $12 - $50 billion dollars. One of the rationales for renewed interest in space exploration is over 1,300 new technologies were derived from the space industry leading to useful products such as satellite communications and heart monitors. In addition rare minerals may also be found.

All those things sound great! I love my mobile phone and generations of elderly and wall street bankers value heart monitors. Lets look at where the US is at meeting its milestones. The 2009 NASA budget rose 1.7% from '08, but leaves the agency $500,000,000 short of where NASA was told it would be by 2009 when Bush proposed the Moon mission. Wait, $500M short? The Moon is only 384,000 km away from Earth, how will Americans make it to Mars, which lies 490M kilometers away, a distance 3Xs times farther away than the Earth lies from the Sun on an underfunded budget?

The Whitehouse has stated that the US has been in a recession since 2001 and the fighting costly wars will require sacrifices. President Bush publicly committed to the American people and the world to a goal. Bush correctly stated, "the fascination generated by further exploration will inspire our young people to study math and science and engineering and create a new generation of innovators and pioneers." Yet unlike the years following the Kennedy address to land a man on the moon and return him safely to earth, in the years since Bush's speech, the Republican controlled Executive and Congressional(until 2006) branches did not commit the necessary resources to achieve the goal. Using historical budgetary figures adjusted for inflation, during the 8 year Clinton Administration NASA received a total of $131.76 Billion or $16.5 Billion dollars a year. During the 8 year Bush Administration NASA received less at $130.125 Billion dollars or $16.3 Billion per year. To date the Iraq and Afghanistan Wars have cost $604 Billion dollars, enough money to fund NASA for the next 35 years at current NASA spending levels. In fact, when adjusted for inflation, the Wars already total 75% of the entire 50 year budget of NASA since its creation in 1958.

Was it science or politics that led to the Bush announcement to pursue Moon and Mars missions when America is fighting two Wars, an unfunded health and social security system, and rising unemployment. Four years later unemployment figures are at a seven year high, and today President Bush signed a $700 Billion dollar bail out of America's largest banks and insurance firms. OK, the sub-prime mortgage crisis hadn't occurred, yet in 2004 America had just witnessed its seventh largest firm Enron declare bankruptcy - a sign that US businesses needed more robust assets and businesses models. The recent Financial Bailout represents nearly 7% of the total annual US Federal Government Budget, yet NASA's budget only consumes 0.6% per year. Since 2003, the CIA WorldFactbook states the US economy has grown an average of 3.1% a year. In 2007, China's economy grew 11.4%, its largest increase in 13 years.

In an Orwellian way, maybe the public perception is being used by two large state governments in different ways. China is opening up its media and reporting on the space missions with unprecedented transparency, which is promoting national pride and government allegiance. At the same time the US government is using its power to interrupt American TV broadcasting for President Bush to deliver state messages of fear and urgency to give tax-payer money to financial institutions NOW!

At the same time, Intel Chairman Craig Barrett cannot believe that the US Government failed to increase funding for Research & Development in Science and Technology by $1.2 billion, as authorized by the America Competes Act, which President Bush signed in August of 2007. Barrett states, "A big part of the world is still investing in infrastructure, China, Russia and India. Those regions are seeing good growth rates. ....I’m not against bailing out Wall Street, because they are bailing out individuals. But when you look at the agricultural subsidies and the bailouts and the earmarks it’s hard to believe the government can’t come up with $1 billion to fund innovation. We as a country have chosen not to compete." To put this in perspective, Congress approved a $487.7 billion 2009 budget for the Defense Department, including a single Navy Destroyer at a cost $1.5 billion, more than required to fully fund the America Competes Act. Since 2003, President George W. Bush's missile defense spending has run about $10 billion per year, and the FY 2009 is the highest missile defense request on record at $13.2 billion. In my opinion, military spending has shown a poorer return on investment relative to spending on scientific research and innovation. Regardless of where you stand on military spending, the issue is about prioritizing. We cannot engage in global wars, bailout entire financial industries - including five large banks this week alone, and expect to remain dominant in science and technology, including space exploration. The trend suggests that the current US Government can identify an issue, yet like the inadequately funded Space Exploration Program, does not supply the resources to bring the project to completion. In business we frown upon blue sky thinkers who have ambitious plans, yet do not follow-through with execution to achieve the stated result. A plans without action is irresponsibility.

During the 2004 Moon and Mars announcement, Bush stated, "We choose to explore space because doing so improves our lives and lifts our national spirit." Bush is right, investments in Science and Technology, embodied in space exploration can enhance our collective innovation, produce new products and services and instill us with pride. By delivering on its goal of a spacewalk in 2008, the Chinese Government has enabled Chinese citizens to celebrate in the exploration of space and associated boosts in national spirit. Sadly like Intel's Chairman observed, the US is not investing in our competitive future. The every day person living in the BRIC countries are as hungry to succeed as Americans were during the Industrial Revolution. The recent Chinese space walk demonstrates the world has changed. The US Government and millions of Americans are failing to acknowledge that developing countries are focusing on developing systems of internal innovation and delivering sustainable results through investments in science and technologies that matter. We must do the same, otherwise there will be 45 less stars on the cover of Time Magazine for generations to come.

Photo Credits: China Daily, Xinhua News, CNN, NPR

Bush requests Congress to Grow US National Debt Limit by $700 Billion: Need for Performance Management and Accountability in Government

2008-09-21T00:18:00.000-07:00

Cory’s Takeaway: The US Government should use the same standards of management performance that are required in private industry. This article examines historical data to benchmark our Government’s current performance using data from a wide range of sources. Based on this article’s data it is clear that the current Government did not deliver on its brand (Bush White House) promise to prevent recession, shrink government spending or create an environment for sustainable lower taxes. It is also clear that the Government did not put in place the right processes (regulations) to ensure its management system would work efficiently and in the interest of its stakeholders (voters, world-community, environment). If this was a business the board of directors (voters) would evaluate the data and hold the managers (Bush Administration) accountable for their poor performance. Let’s base our voting decisions on data and not emotion. Let’s seek out the most reliable data and use historical benchmarks, trends, and facts to base our decisions. And when our managers of our great nation fail to perform according to plan, let’s hold them responsible for their economic mismanagement and incompetence, which is what we would expect in any competitive organization.

Almost exactly eight years ago on Sept. 29, 2000, while campaigning for President, Gov. Bush stated his sweeping tax cut of $1.3 trillion over 10 years was, in fact, ''an insurance policy against an economic slowdown or a recession.'' Indeed President George W. Bush ran in 2000 on the promise to shrink government spending and cut taxes. He warned that too much new government spending could cripple the economy. Bush belittled sitting vice president Gore for proposing larger government spending on education, health care, Medicare and the environment as having, ''cast his lot with the old Democratic Party'' in proposing a new level of federal spending and regulation, which Gov. Bush said would endanger the country's current prosperity. In his first address to congress he lobbied for the largest tax cut in history, which later passed, stated, "American taxpayers have been overcharged, and on their behalf I am here to ask for a refund”. Did large tax cuts benefitting the richest Americans, less regulation and a pledge to shrink ‘Big Government’ work? Here’s the data-

Today Sept. 21, 2008, President Bush is requesting the largest Government bailout in 80 years, which will require a Congressional act to raise the United States national debt limit from $10.6 trillion to $11.3 trillion! This represents the largest corporate welfare package in history, and does not hold accountable the people, firms or processes responsible for poor business decisions. Imagine if a free-market IT business could make bad bets on customers, collect large salaries and bonuses and then when their investments didn’t deliver ROI, the government would offer to pay out! Imagine an IT executive making enormous salary and bonuses for poor business management and not being held accountable. That is the reality for the recipients of the $700 billion “Bailout Plan”.

In 2004 the late libertarian commentator Harry Browne used DATA from US Gov Statistics and Economic Indicators, which identified that Bush grew non-military Government spending by 3.5% a year by 2004, compared to the historic President who grew non-military government spending the least per year at an average of 1.5%, Bill Clinton. In real terms, using Gov. Data and not rhetoric, means that by 2004 Bush was increasing non-military spending at twice the rate as Bill Clinton.

Even former Republican economist Alan Greenspan criticizes Bush for growing government spending, despite having a Republican Congress in power for over 80% of his presidency. "My biggest frustration remained the president's unwillingness to wield his veto against out-of-control spending," Greenspan writes. In his recent book, conservative Greenspan praises Clinton for collecting relevant information, seeing the big picture and trying to use the tax surplus to fund Social Security into the future.

In a 2000 campaign speech Gov. Bush criticized Gore, “His promises throw the budget out of balance. He offers a big federal spending program to every -- to nearly every -- single voting bloc in America. He expands entitlements without reforms to sustain them”. In 2008, the USA has the largest budget and trade gap ever, enormous expenditures for the expensive Iraq and Afghanistan Wars, and an unfunded Social Security system with millions of aging Americans set to retire. Today the Bush Administration’s short three page (budget ‘unbalancing’) plan asks for $700 billion of tax payers money to compensate large financial firms for poor investments, and does not address the home-owners who are losing their homes. Inronically Bush's Bail Out Plan will leave generations of Americans with an enormous debt that can only be paid for in higher taxes. Bush offered, "The risk of doing nothing far outweighs the risk of the package. ... Over time, we're going to get a lot of the money back." Bush failed to set a specific date on when ‘we’ will get the money back, and did not specify what will be done to make the money, or how the money will be given back. Back to Bush’s original campaign address in 2000, 'Americans are being overcharged', but sadly the Bush team has not produced an economic system to deliver a refund. The House of Representative’s top Republican, Ohio Rep. John A. Boehner, stated, "We need to do everything possible to protect the taxpayers from the consequences of a broken Washington." That last statement is something I can agree with.

Michael Phelps and American Face

2008-09-01T08:42:00.000-07:00

Two Chinese girls inspect an Omega ad featuring American Olympian, Michael Phelps. For the past four years I've been hearing rumors that China would defeat the USA in the Olympics. Last week those boasts became a reality. The final medal count saw China lead the world in Gold medals with 51, to the USA's 36. Some web pages like Chris Chase's "The Real Medal Count" are indignant that China disproportionately won in judged events. However the fact remains that 2008 is the first time in 16 years that Team USA has not led the Olympics in Gold Medals, and represents China's best Olympic performance to date. The overall medal count saw American men and women's teams carry equal weight with 53 medals each and one Mixed event to bring the total US medal count to 110, against China's total medal count of 100.

The me generation continues. Weren't we all taught in Business 101 about Hoftstede's Five Cultural Dimensions that states that Asian Societies are Collectivist or more integrated into strong cohesive groups. How come China's athletes performed gloriously in individual competitions and fared dismally in most of the team based sports? For example, China's first gold medal went to a petite, 106 pound, female weightlifter named Chen XieXia who hoisted an amazing 258 pounds! How about those other collectivistic sport records for China? The Chinese athletes took home Gold in more individual than team sports including men's 56, 62, 69kg Weightlifting, Lightfly Boxing, Canoe, Horizontal Bar Gymnastics, Fencing, and the women's Taekwondo, Judo, 50M Pistol, 10M Rifle Shooting, and Archery et al. Table Tennis, Badminton and Gymnastics were the main team sports for Team China. As a contrast, the 'individualistic' USA performed extremely well in team-based sports such as, Water Polo, Volleyball, Softball, Team Fencing, Eight person Rowing, Basketball and Relay Swimming! Of course that last sport SWIMMING, redeemed Team USA for our unique brand of American individualism. Yes, Michael Phelps, keeping true to his word, won eight Gold medals.

Those familiar with Chinese culture know that the word eight in Chinese is the character 八 pronounced 'bā' which phonetically sounds similar to the first syllable in 发财 'fă cái ', which means rich or fortune. Eight is so revered that license plates with the number eight have been auctioned for small fortunes. When I arrived in China in 2005 I went to a shop to buy a SIM card with an associated phone number. I asked the sales clerk why some of the SIM cards were much cheaper than others. He replied that phone numbers were unlucky if they had a four within the number because the Chinese word for four is 四 'sì', which phonetically sounds similar to 死 'sĭ ' meaning death. I was told people would be disinclined to call me if I had a number of unlucky fours. Consequently phone numbers with fours were highly discounted. I ended up paying a premium for a more expensive phone number with three eights in it because I was told people, particularly ladies, would be more keen to call me!

Some people are calling Phelps '八th' Olympic Gold win, one of the greatest moments in sports. During this 200八 Olympics, Phelps achievement may be the strongest case for the continuation of what many people see as an epic American ideology, that the individual through their own means can stand up work hard, work hard, work hard and obtain their rightful American Dream. But we need to look carefully at the changes on the horizon. The architects of China's breathtaking Olympic venues are the same masterminds responsible for China's rising economic power and increasingly materialistic society. The me generation of China doesn't seem bent on political reform, but is passionate about rising to the top. The Olympic athletes are the tip of the iceberg, and despite Phelps saving USA 'face' at the Beijing Olympics, the state of the art sports venues, the fireworks, the red flag waving masses, are confirming that with each appreciation of the PRC currency - the Renminbi, with each manned space flight, the Chinese people are creating their own unique brand of China Dream.

Are the little girls admiring Michael Phelps' photo, or thinking what glory awaits their future?