Entries Tagged as 'Uncategorized'

Which is worse for the future of the US Chinese relations?

Not sure which is more foreboding for the future of the US Chinese relations.

The fact that the Chinese publicly don’t think that Obama can handle the pressure or make any significant change (smarter than we give them credit for, eh?).

Or

The fact that “it’s the economy, stupid” and McCain is economically stupid, by his own admission!

Scary.

Could the two US political parties have put forward two worse options for President? Our choice as voters is either an extremely liberal political neophyte or a economically challenged bitter centrist. Whiners on both sides will say “But he’s the first black president!” or “But he’s a war hero!”

So what?! How about this for novel voting criteria: “Is he competent?!”

I remember in 1992 when Clinton was elected I had some family traveling in Europe.  While there, they were constantly mocked due to the fact that the US people just elected BC–they couldn’t believe how stupid that vote/selection was (smarter than we give them credit for, eh?).  Most liberals claim that Bush was the (only) one that made the US lose face internationally–that would be true only if US history started in the year 2000 and if the Clintons and Carters never existed.

Wave the flag and pass the apple pie, it’s the next President of the United States. Thiibbbbttttt

The Joys of Living in China

Yup. Woke up this morning to the SZ police force outside the gates of our apartment complex, Zhonghai Huating. They brought 6 riot vans and two busses full of police to make sure that the housewives, maids and others at home wouldn’t disrupt their appropriation of land for the SZ metro company. (I was asked by other landlords to edit this paragraph–this is not the original version).

I’ve talked about the “process” we’ve been involved in with the SZ govt and the Metro before. It’s process in name only–I mean, how much respect can you give a system where, in a meeting in the offices of the local government, the head of the SZ Metro delegation says: “you can die for all I care! And if you protest we’ll arrest you just like we arrested the others.”

Guess he’s made good on his threat.

A couple of landlords were indeed hauled away this AM. I came out later and starting taking photos and was immediately pushed and ask/told to leave. Of course being a bull-headed American, I didn’t. We argued about the fact that I’m not only a landlord but there are no signs prohibiting me from taking photos of my own property (that the police were standing on). After 20 or so minutes, a call came and the police said that I could take photos. So I immediately started snapping pics of the guy who tried to stop me in the first place. Round two of “no pictures” started immediately. “You can take pictures” means, I guess, I can take photos of everything but the guy who told me no–you can see him with his hand up in the photos–more photos went to a couple of newspapers already.

Now, I understand eminent domain. But there are both limits and requirements on what can be taken. First we were not offered any compensation for our land. Second, we were not told of the timing of the construction. And third, we weren’t given any health studies on the construction of the exhaust fans that are going to be put in our fishpond/garden.

Further, 300+ police with water cannons and riot gear (in the trucks) for a construction project in the middle of a Wednesday AM at a private residence? Me thinks they over reacted just a bit.

Some interesting reactions from the mornings events. First, Chinese neighbors cheered when I showed up and started taking pictures. They chanted and told me they supported me. I wasn’t looking for anything but some good shots as I’ve pretty much resigned myself the the fact that the government doesn’t care (the “you can die” comment sealed the deal for me weeks ago). They cheered when I made a smart (ass) comment and screamed in the face of the policemen that were trying to stop me. They knew that being foreign means being different–sometimes thats a good thing.

Second, the police were not as willing to arrest a foreigner as they were the locals earlier. They threatened to arrest me and I put my hands behind my back and offered myself up and they backed off and just told me to leave. Indeed, they wanted me out of the way as quickly as possible. Again being foreign kept me out of jail when others were tied up and hauled off.

Third, the police were very very intimidating to the locals. The local screamed and yelled but except for the couple that got hauled off, they did exactly what they were told to do–stand back, leave the work alone and go home or go to jail. Surprisingly vitriolic but at the same time passive.

Fourth, the words used to talk to me came in two very distinct styles. First, was from an assumed power position. I was told/asked things like: “Do you know who I am?” “Do you want me to arrest you?” “Leave now!” “You can’t take photos here–you have no right!” “I’ll give you some face, you just leave now.” The second position came later as the people were more riled up and after I had offered to be arrested. “Please leave.” “Please support our work here.” And of course “OK, you can take pictures now.”

The problem is, I don’t support the work. I’m very much against the land appropriation by the SZ government for a company (the SZ metro) when we were given nothing but threats as compensation.

If you think that I’m just down on China or that this is really a new, modern China and I just don’t get it, think again. Much in China is recent, clean and different to be sure. But much of the current problems are the same horror stories you read about 10 years ago. There are great opportunities and scary problems here side by side. Illegal land appropriation by local governments is not unique to our housing complex–it’s happening thousands of times a year all over China–famous stories include the old lady in Chongqing, the Beijing Hutongs and the riots/arrests in multiple cities in Guangdong province late last year.

I’m here for the opportunities…but at what price?

What will the earthquake cost outside of Sichuan?

China Economic Review notes that labor prices are going to rise due to so many workers from Sichuan going to home.  Richard, at All Roads Lead to China, had some immediate post earthquake thoughts on economic impacts too.  China Herald noted two weeks ago, before the earthquake, that prices were already set to rise 12%.

Workers with ties to Sichuan are certainly going to be interested in going back home, now that there will be jobs there, there will be no reason for them to stay in the East.  The reconstruction work on schools and public buildings alone will take years to complete.  Then there are the roads, utilities and other public infrastructure that must be repaired.  Prior to any of that is the massive clean up effort that has to take place.  Since Sichuan is the most populous province in China, this will mean millions of people and jobs.  here’s hoping that the governments in Sichuan give priority to local workers to help them rebuild their lives and families.

Food prices, already at uncomfortable highs for many, will continue to rise as the earthquake strains both domestic food resources and the central inflation controls.  The 5 million homeless will need to be taken care of for months to come.  How many more don’t have jobs (there may be an answer for some of these) and more than 250,000 are injured (i.e. homeless, jobless and unable to work).  The shift in resource allocation is going to last through the end of the year, at least.

On the 14th, John Ng, from Hong Kong wrote that Toyota and other manufactures in Sichuan had suspended operations and that market reaction to the quake was mixed.

The BBC updated this by saying that Toyota was back in business this week and the cost of construction materials are already rising, by as much as 10%.  The article also points out that the quake is costing companies close to 10 billion dollars.  The China Post doubled the cost estimate.

So what does this mean for the SME who’s using a factory in Dongguan?

For manufactures in Guangdong this amounts to a perfect storm of price increases.  When coupled with the effects of the mature industrial base already here and the addition of China’s new labor law you can see why options to move elsewhere are so attractive.

The quake will directly impact production costs form most of China’s east coast provinces that rely on cheap labor from other provinces.  I’ve said before that unless you can pull complimentary suppliers with you moving to a second tier or third tier city in China is difficult.  But the bottom line is moving without a fully developed supply chain can cost more than you ultimately save–it could also be the ticket to better margins; it will depend on what you manufacture, where you are now and how much of that production process you can honestly duplicate elsewhere.

Donate, please!

If you’re not here or have not lived through a disaster yourself, you have no idea of the scope of damage and devastation to millions of individual lives.  It is truly heart wrenching to think that possibly more than 200,000 people in China and Myanmar have died in just the last couple of weeks.

So, thanks to Sourcejuice for the link, here is a page with 20+ different charities that you can donate to.

In ‘95 I lived in the area of the quake, Chongqing actually, for a year as an English teacher.  I have been to Chengdu, Dujiangyan and other damaged areas and have friends, former students and co-workers from the area–some of whom I’ve been able to contact and some of whom I have not.

Our prayers, thoughts and financial support go out to all those affected (directly or indirectly).

SQL Attack Hits SRI, Twice

For at least 5 hours each, at two different times today, SRI was off line due to a confirmed SQL attack. The server that hosts SRI in the US was overwhelmed with traffic that shut down the entire server (multiple sites). No email, no website, no blog, no online project access.

If you tried to contact SRI today/yesterday and have not heard back, please contact us again. We’re back on online now!