Archive for China
August 31, 2009 at 10:40 am · Filed under China, Globalisation, Australia
Foreign direct investment (FDI) into Australia continues to grow. “From innovation to a highly educated and multicultural workforce Australia is a globally competitive location for business,” according to Austrade - the Australian government department responsible for attracting investors. Add to that a stable government, secure legal system, great infrastructure, competitive tax environment and high quality of life and you understand why companies want to invest in Australia.
As of 31 December 2008, the stock of inward FDI in Australia was A$392.9 billion. The top four source countries were the United States, the United Kingdom, Japan and the Netherlands. (Source:Austrade)
Australia’s top exports are minerals and resources, and given our location adjacent to Asia Pacific we’ve become a provider of choice for iron ore and other commodities. We are more competitive in terms of shipping times than Canada or Brazil, two significant resource competitors.
Notably absent from the listing of top countries investing in Australia is China. That said there has been no shortage of investments from China, particularly from resource companies. Austrade’s fact sheet on how it helped inward investment into resources has six case studies - four are from China.
This weekend Aquila Resources announced a $285.6 investment by China’s biggest steelmaker, Baosteel. This follows on the heels from the failed investment bid by Chinalco for US$19.5 billion in Rio Tinto. And while is is reassuring to see nearly $300 million invested by Baosteel, the scale of the failed US$19 billion deal is overwhelming.
It appears small deals are acceptable - but major transactions flounder. Why? Probably because it is not politically acceptable for the Government of Australia to approve large-scale investments by state-run enterprises from China. Australians are scared of China and don’t want their politicians to approve these transactions.
For China the road forward is a long one - but an easy journey is possible. There have always been massive differences between the East and the West. Yet through assimilation and education these differences are better understood. Generally we do not fear what we understand.
While China made a great start with the 2008 Olympics, a wide-scale education and cultural exchange program will help in Australia. That would include the standards of scholarships, cultural exchanges and trade delegations. But the heartland of Australia is large - and not likely to travel to the National Gallery for an exhibition of clay soldiers. Instead greater use of mass media would help - whether it’s the reality series of “Wife Swap” between families in Sichuan and Sylvania Waters or “Super Nanny” takes on spoiled boys in Foshan.
We need to see that the daily struggles and challenges faced by families in Australia and China are the same. Then we can cheer the progress made by the new-found celebrity families from China as they get together to grill bean curd or corn cobs on an Aussie barbecue. Then we’ll know and accept and adore China all the more.
February 25, 2009 at 8:49 am · Filed under America, China, Globalisation
Before World War Two, Germany endured a decade of economic losses spurred by the loss of World War One and the Great Depression. That period of time, called the Weimar Republic, was characterised by high inflation, currency devaluation, unemployment followed by a rise of nationalism and social unrest. With the vast scale of economic collapse globally I believe we’ll look back and call this time the “Pre-War Years”. Something’s gonna give - big time.
No country is being spared in the global economic collapse. Millions are jobless. In the USA in January 750,000 joined the ranks of unemployed. In the last six months 20 million people in China lost their jobs. That’s roughly the population of Australia. Government benefits are being rushed out to help but like all things government it will be too little, too late. Prices are tumbling and confidence has evaporated.
In time these collapses will ripple further. What happens when food production is impacted - or people can no longer afford dietary staples? One billion people lack access to clean drinking water. What happens when some of those live in Orange County or Barcelona or Beijing? When will civil discontent bubble into unrest?
In “Canadian Bacon” a fictional USA President finds his popularity waning. He believes war to be the best way to galvanise the public behind his presidency. Doesn’t take a large stretch of the imagination to foresee a Premier in China concerned about growing civil unrest - and using the same tactic to divert attention. And as always there are plenty of countries needing to be brought in line.
Other than the eternal bogeyman of China it is easy to see any country squabbling with its neighbours near and far over economic issues. Boost the tariff on pulp and watch Canadians get annoyed. Ban salted cod and the Portuguese are your enemies. Dispute a province and India is before the United Nations.
In times of economic unrest the quickest diversion for any politician is to externalise the argument. This isn’t the economy, stupid. This is war. Now it’s just a matter of when and where. Are the British betting agencies accepting wagers yet?
February 19, 2009 at 9:34 am · Filed under America, China, Globalisation, Australia
Australia owed its success in the first half of the 20th century to wool - it was ”a lucky country” built “off the sheep’s back”. In the 1990’s the economy powered through a decade without recession due to increased demand for minerals. Raw exports from Australia fed the growth in Asia and particularly China. In the same period China built vast reserves due to growth in trade. Australia was one of a very few countries with a positive trade balance with China. The USA faced a record imbalance as it relied more and more on China’s low cost imports.
Today China still has vast wealth reserves. Couple that with a desire to secure long-term resources and the country is sitting pretty.
Australia’s Treasurer Wayne Swan faces difficult decisions as China’s state-owned minerals company seeks to buy into Rio Tinto, one of Australia’s largest mineral companies. (Further complicating matters Rio Tinto knocked back an offer from BHP Billiton and now may accept a lower offer due to financial stress. Their gamesmanship didn’t work. Checkmate, Rio Tinto?)
Is China using the global economic crisis to sweep into long-term deals? You betcha!
In Russia a loan was announced today where two oil companies receive $25 billion from China in exchange for long-term supply contracts. The frankest summation comes from Charles Freeman at the Centre for Strategic and International Studies in Washington DC:
“Realistically, there is nowhere to go but China.”
But China faces an enormous image issue - as they experienced during the Olympic Torch Relay. A large number of people around the world distrust the Government of China. Human rights, Tibet, Tiananmen Square, censorship and other serious issues are raised. But today the country with cash is king. And China is awash in foreign currencies. It is one country able to buy USA bonds to fund the massive bail-out.
China has become a lender of last resort - and one we are highly, highly dependent on. William Shakespeare said:
“Misery acquaints a man with strange bedfellows.”
Shove over America, Australia, Russia and others - make room in bed for Superhero China!
November 19, 2008 at 9:09 am · Filed under China, Learning to Blog
I was in Beijing for a week and got home yesterday - I attended the International Public Relations Association (IPRA) semi-annual global conference. This was a great event with attendees from every corner of the world. I met Nigerians, Poles, Swedes, Americans, Canadians, Peruvians, Taiwanese and Chinese public relations professionals. Day One began with a session in the Great Hall of the People on Tienanmen Square.
Yet I could not blog during my visit. WallyDownUndy is blocked in China.
It’s odd to encounter censorship first-hand. As an Australian-American I have always enjoyed freedom of speech. And part of that freedom includes being critical of government when you believe government is wrong or irresponsible. (From Monica Lewinsky to Weapons of Mass Destruction I’m an equal opportunity critic.)
In the past I’ve blogged about China. An earlier post shows the Tibet riots on YouTube. Whenever I mention Taiwan my readership spikes - even more than the time I mentioned Pamela Lee Anderson! (Go Taiwan!) So a censor in China decided my blog did not meet their readership criteria.
I didn’t cotton on immediately. It started when I was trying to mark a comment as spam. (Note to spammers: Comments about ’sex tapes’ do stand out on a blog about global public relations trends. Our executives are not that spicy.) I assumed it was a bad Internet connection and tried the next morning.
Given that I could not managed comments and could not post, I then tried to read the blog. It was then I realised it was blocked. Other blogs were open and available.
So my apologies to anyone in China who previously enjoyed my blog. And to fellow bloggers, a recommendation: Denounce China in any posting and you’ll be censored.
August 5, 2008 at 1:15 pm · Filed under China
China blinked.
After a tense week China dismantled firewalls preventing journalists from accessing sites like Amnesty Interational, Human Rights Watch and those associated with Falung Gong.
It shows how important these Games are to China.
In the showdown one side was bound to lose face. The IOC (International Olympic Committee) was looking like a goose for “we knew-we didn’t know” stories. The Chinese looked….like they usually do (authoritative, strict, unrepentant, stone-faced).
China’s decision to allow unfettered Internet access hows the depths of their desire for a perfect Olympic Games.
In times of crisis, there’s an advantage to moving quickly. Compare the Internet conundrum to the Iguana-gate story of the other month. By failing to rapidly and honestly deal with the situation, Della Bosca and Neal have effectively ruined their political careers (see my earlier post - “The -Gate Suffix Means Bad News”).
For public relations practitioners the lesson is clear. Be fast. Demonstrate action. And if you’re wrong, undo the earlier decision. The media moves on and all recall you did the right thing.
June 23, 2008 at 5:37 pm · Filed under America, China, Globalisation
Once in a while you get to attend a fantastic presentation. Last Thursday I listened to John Micklethwait, Editor-in-Chief, The Economist. This news weekly is by far the best news magazine in the world. Amazingly they sell 180,000 copies in their home country the UK while total global sales exceed 1.3 million copies every week. The event was sponsored by Sydney Ideas at the University of Sydney.
Micklethwait makes “Big Picture” look small. He was singularly capable of encapsulating global issues and concerns in a broad perspective. Rarely do pundits back away from the headlines to achive such clarity.
There are dozens of themes and issues he explored. I’ll hone in on one - the upcoming Beijing Olympics and the USA Presidential Elections.
Make no error - China is poised to win a record number of Olympic gold medals. And they will run a flawless games with military precision (oops - did I say military?).
The United States hates coming in second in an Olympics. And if the games are truly “crisp” and run in military fashion, it will exacerbate anti-China sentiment.
Did you know the USA was in recession? Housing prices are expected to fall a further 20% by some estimates. And Iraq will still be dragging on (Congress approved funding last week).
So a matter of weeks before the USA election there’s the populace - bitter over second place, juggling home finances, worried about the nation’s future. This will all play into an election focused on nationalism, security and trade restrictions. And just as the USA economy is being kept alive by trade, there are no new free trade deals going through Congress.
According to Micklethwait, if you want to predict the outcome of the USA elections in November keep an eye on the medals tally in Beijing in August. If the USA is routed then a democrat will get in with a license to close the country down.
And if you ever get the chance in this life to hear Micklethwait speak then take it - he’s fantastic!
May 20, 2008 at 9:08 pm · Filed under China, Media Industry, Globalisation
National Public Radio in the USA had planned for some time to broadcast live from South Wet China. It just so happens that they were in place in Chengdu at the moment last week’s earthquake hit. There is a fascinating series of broadcasts available (see www.NPR.org).
Two disasters in two countries in two weeks. Yet the difference between Burma and China couldn’t be greater. Media access is bringing the China disaster closer to home. It’s galvanising public sympathy - and will influence donor contributions.
Yet the scale of the disaster in Burma dwarfs the toll for the China quake. And as long as the military leadership block access for media, we will never appreciate the scale of the disaster and the impact on local Burmese.
Compare and contrast - and while you naturally focus on China given its open access and daily fodder of news stories and photos, don’t forget the Burmese.
April 28, 2008 at 8:21 pm · Filed under China, Globalisation
With the nightly news broadcasting protests along the route of the Olympic torch, it’s easy to forget the monumental effort being put into this year’s Beijing Games. I was living in Sydney when we pipped China to the post for the 2000 Games - Juan Antonio Samaranch’s announcement made Sydney a three syllable word.
China has waited patiently for these Games - and now is a time to celebrate all the country has achieved. Every host country has issues and the Games can be a chance to deepen the dialogue.
Until then - watch in awe as China prepares for the 2008 Beijing Olympic Games. My son is adopted from China. I can’t wait to show him this clip tonight!
March 25, 2008 at 3:04 am · Filed under Issues Management, China
Last week I wrote about Gloria Jean’s Coffee - and yesterday found a Facebook Group organising a boycott. Consumer companies need to fear public backlash. The goodwill that propels a brand to stardom can be fickle. It turns quickly.
Beijing is in the throes of boycott avoidance. The Tibet uprising couldn’t come at a worse time. Over the coming weeks the Olympic flame will visit most major cities - to provide a searing reminder of the issue of human rights.
I am old enough to remember the 1980 Olympics in Moscow. Then the USSR had invaded Afghanistan and was subjected to a global boycott. Many Eastern European nations retaliated in 1984 by avoiding the Los Angeles games.
Today athletes are under pressure to consider personal boycotts of the games. Nations stand like dominoes ready to topple in succession. Each awaits the other’s move.By the Northern Hemisphere summer we’ll see a succession of boycott calls. And many individuals will heed the call. Soon after pressure will grow for nation states to follow.
Don’t book your hotel rooms in Beijing quite yet. It won’t be a politically correct place to visit this year.
March 17, 2008 at 5:56 pm · Filed under Issues Management, China
In olden days, China only needed to censor the media and expel foreign journalists. This week video footage of uprising in Tibet has been uploaded to YouTube. In Mainland China access to YouTube is down today. For some quirky reason you can’t get your favourite karaoke, pet tricks or scenes of activists being led away in chains (or in a body bag). This is the bleeding edge of citizen journalism.
On 11 April the Newseum opens in Washington DC. This is a museum dedicated to news and journalism, and is likely to honour journalists killed in the line of action. Soon they will have to feature the ordinary citizens who place their life on the line to ensure atrocities are witnessed by all the world.See this clip on YouTube.
And realise this - your ability to watch this means you’re living in a democracy.
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