January 31, 2005
Dinner and democracy

I am a big fan of ESWN. Amongst other things tt constantly has thought-provoking, well written and cosmopolitan posts on Hong Kong and China. Allow me to take a leaf from Roland's book and link his dinner party with a post on HK's income tax and mix it all in with a dose of democracy and a pinch of blogging.

Firstly the dinner. I'll let him set the scene:

This was the annual shareholders' meeting for my cooperative apartment building in Hong Kong. There were about 10 people present, and we dealt with the business issues quickly and then we sat down for the meal. As we ate dinner, we had a chance to talk about other matters.

Who are these people? There was a doctor, an English-language teacher, a financial advisor, a retired elderly lady, a restaurant owner and three factory owners. Their ages range between fifty to eighty-three. Given that they own apartments in one of the most exclusive neighborhoods in Hong Kong (note: Jackie Chen just bought a house down the street), they are presumed to be among the upper class elite here.

What did they talk about? Read the post. But here's the conclusion:
I am thinking about the Hong Kong political blogosphere. I must say that those who write about politics are predominantly oriented towards the so-called pan-democratic 'grass roots' mindset. Who would speak up consistently on behalf of people like my fellow shareholders? Nobody I know. This creates a skewed representation of public opinion in the manner of the "Spiral of Silence" of Elizabeth Noelle-Neumann -- a small self-selected group dominates the share of voice among those who speak out, thus creating the impression that they represent the majority.

So why won't they speak on their own behalf? These people are too busy looking after their businesses to blog!

So there you have it. A sliver of the upper class elite are more interested in the status quo but are too busy to do much about it. To be fair the group were equally unhappy with the HK Government. On the other hand, a couple of hundred thousand Hong Kongers care enough each year to march for democracy. It would be great to have more views and voices in HK blogging so this could be debated in greater depth. The barriers to entry in blogging are extremely low and it needn't take much time. If they want to join the debate, let them. Otherwise they forfeit their right to be a part of the decision.

ESWN also links to a Media Matters fact-check on HK's flat tax regime (a related MM post on the issue is here). The MM people are correct. HK's flat tax is paid by only a tiny minority of all taxpayers. But it also highlights one of the failures of HK's governance. Firstly the numbers:

In the assessment year of 2002-03, among the 3 million or so working population, only 1.2 million people are subject to salaries tax. And among these taxpayers, only 13,000 are subject to the standard rate...According to government figures, the total number of people paying the standard rate of tax will rise to 27,000 in 2003-04 and 44,000 by 2005.

With roughly 3 million workers in Hong Kong, the 44,000 expected to pay the standard rate of tax this year is less than 1.5 percent of the total.

HK's standard rate of tax is 16% of income after allowances. Otherwise people are taxed on a sliding scale, with a person earning the equivalent of US$33,000 paying US$75 income tax. While this is a boon for the vast majority of HK workers, it means HK's Government receives little in income tax. Instead the Government relies on other sources of income and especially land sales and profits tax. What does that do? Let's make a heroic assumption that Governments are rational economic actors. Government looks to maximise its revenue. So it is catering to those who keep it in power and pay it revenue. In Hong Kong this means the Government has incentives to pander to property developers and business tycoons at the expense of the vast majority. There are no elections and most pay little tax. So the Government follows its incentives. If more Hong Kong workers were paying more income tax, you can be sure Government would be even more responsive to their views. Instead the Government is contemplating a regressive flat sales tax to provide a steadier revenue stream that is not at the whim of the property and business cycles. I am not talking about raising income tax rates in Hong Kong. I am talking about broadening the income taxpaying base by reducing allowances and/or lowering thresholds. Anywhere else in the world someone earning US$33,000 is paying far more that US$75 in income tax.

A bargain in the making: an increase in income tax payments in return for democracy. If the Government took the advice of Roland's dinner guests and allowed more economic migrants they'd be laying the groundwork for improved revenue, make the factory owners happy and maybe even advance the cause of democracy in HK. They might even be moved to blog about it.



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[boomerang] Posted by Simon at 15:38
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Where's Conrad?

Conrad lives and explains.

(via Shaky)

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[boomerang] Posted by Simon at 14:31
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Bowing to masters

The World Economic Forum at Davos gathers the great and good to discuss the pressing issues of the day. It acts as a headline grabber for a week and allow "networking" opportunities between various elites. Bill Gates has used the platform to perform a Rupert Murdoch, lavishing praise on China's leadership. Naturally part of his motive will be to advance the interests of his company. But I suspect Bill has mixed his message. Gates said:

They have this mericratic way of picking people for these government posts where you rotate into the university and really think about state allocation of resources and the welfare of the country and then you rotate back into some bureaucratic position."
China has historically had meritocratic methods of selecting public servants. The CCP have continued that tradition, albeit with large dollops of nepotism and corruption. But again that is just as it has always been throughout China's history.

His praise for the leadership:

This generation of leaders is so smart, so capable, from the top down, particularly from the top down.
Again, there is an element of truth in this. This generation of leaders is the first in generations to consist of technocrats rather than despots and autocrats. Whether they deserve the lavish praise Gates has lauded upon them is a different matter. Gates also partially got something else right:
[Gates] says [China] has created a brand-new form of capitalism that benefits consumers more than anything has in the past. "It is a brand-new form of capitalism, and as a consumer its the best thing that ever happened."
China is, to some extent, a more "capitalist" economy than many realise. That's partially because regulation and law lags the rapid changes in China's economy. There are some true "laissez-faire" aspects in modern China. At the same time, however, the state owns the largest banks and biggest manufacturers. The state plays a key role in allocating contracts and capital. Bill's right: it's capitalism but not as we know it. He's right on one other aspect, with one small omission. It's great for American consumers. But wait, there's more:
He characterised the Chinese model in terms of "willingness to work hard and not having quite the same medical overhead or legal overhead"
To some extent he's right. China's lack of basic safeguards for workers mean labour costs are low. It also means China loses a horrendous number of lives to industrial accidents, has an army of labour with no protection if they get sick, when they retire or if there wages aren't paid. But that's the price you pay if you want cheap t-shirts.

According to Rebecca MacKinnon, China has been a hot theme at the Davos Forum. She an interesting take on the meaning of democratic values in China:

Of all the people in China who I got to know well - from itinerant artists to farmers to students to intellectuals to government officials - I never met anybody who didn't believe that "democracy" is something China needs more of. The problem is they want to get from here to there without revolution, violence, or risks to their jobs. Most Chinese now have enough to lose after 25 years of reform. They don't like foreigners lecturing them about how they should run their country even if they don't like the way the current leadership runs it - it's called pride. But some Chinese will also admit that the embarrassment of outside media scrutiny and diplomatic pressure is also helping to change some less-than-democratic government behaviors.
For mine this is only part of the answer. As people have more to lose, especially materially, they demand a greater say in how things are run to preserve and continue their prosperity. China's current leadership have gained legitimacy by engineering the current boom. So long as they remain competent economic managers their reign is likely to continue. Things such as human rights and democracy aren't on most people's radars. They're too busy making money. It's when the merry-go-round stops the leadership will find itself in trouble. The current tensions in the country come from inequality, discrimination against minorities and poor working conditions. Keeping a lid on these requires redistribution of wealth. In order to stay "Gatesian" capitalist, China needs to become more Communist. Ironic, isn't it?

Update: Lest you think the title of this post is sarcastic, I put to you that Beijing runs Boeing.

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[boomerang] Posted by Simon at 10:29
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The costs of being the world's free-est economy

Hong Kong consistently wins the label of "World's Free-est Economy." It is richly undeserved. Hong Kong's economy is free in the sense that business has few rules. But freedom does not mean a competitive economy. This excellent article summarises some of the main problems in Hong Kong: a lack of a competition law or authority; the lack of a level playing field; anti-competitive cartels; and collusion between firms and between business and government. The best analogy is from Baptist University Professor Tsang Shu-ki: "It's like playing football. Even if the players are civilised, does that mean we don't need a referee? Of course not." If judged from a corporate point of view, Hong Kong is the world's free-est economy. If judged from an economic welfare or a consumer point of view, it is far from it.

Update: Hell, even capitalist China is beating Honkers on this one.

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[boomerang] Posted by Simon at 09:51
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» Winds of Change links with: Simon's China and East Asia Highlights: 2005-2-15




January 28, 2005
Asia by Blog

Asia by Blog is a twice weekly feature, usually posted on Monday and Thursday, providing links to Asian blogs and their views on the news in this fascinating region. Previous editions can be found here.

This edition contains a Korean drinking guide, the controversy over "Tsunami Song", HK's pliant press, Zhao Ziyang's funeral, North Korean's Pakistani purchases and plenty more...

The round-up has four key areas of focus:

China, Taiwan and Hong Kong

Korea and Japan

  • Joi Ito has a case of a South Korean national being banned from taking a managerial promotion civil service exam in Japan due to her nationality. He's not impressed. Sean looks into the same issue in greater detail.
  • There are reports NK bought a nuke from Pakistan. I've always wondered how that happens. Does someone from NK ring up the Pakistan Government and request a transfer to the "Nuclear Arms for Sale" Department?
  • China's clampdown on official gambling is hurting North Korea.
  • Japan's largest trading partner is now China.
  • Did Japanese PM father a child with a Korean?
  • Jodi talks about Koreans adopted and raised abroad who have returned to Korea, including herself.
  • The North Koreans have responded to Japanese experts who determined the bones handed over were not those of Megumi Yokota.
  • In case you need it, a guide to drinking in Korea, with a follow-up.

SE and Other Asia

Miscellany



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[boomerang] Posted by Simon at 19:17
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A day in the life

A 15 year old boy wakes up in a remote Chinese province. He has breakfast with his parents then bustles off for some English lessons and scripture. He finds some time to play with his favourite toy: his laptop computer. In the afternoon he chats and argues, spends an evening in front of the TV and doing his home work before heading to bed. Pretty unremarkable stuff. Except this is a day in the life of the 11th Panchen Lama, China's officially approved re-incarnation of Buddha. Amongst the article's gems:

Now Panchen Lama has a desktop computer and a portable computer, which he is so fond of and will not let them out of his hands. He does his Chinese and English homework on the computer.

The servant monks say that the Living Buddha likes something of high-tech, such as computer, camera and videocassette recorder. But it is limited for his spare time. Being a Buddhist monk, the Living Buddha has strong self-discipline over himself though he is still very young. Therefore, he cannot touch all these high-tech things so often.

Let that be a lesson to all you techno-obsessed freaks. If you were the Living Buddha you'd have to control your urges with strong self-discipline. But wait, there's more:
After watching CCTV news, Panchen Lama studies Tibetan, practises calligraphy, goes over Chinese and English.
Good, patriotic Lama. Who said being a living god was fun?

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[boomerang] Posted by Simon at 09:30
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January 27, 2005
Sticky ports

Yesterday John Tsang, Hong Kong's Collusion Commerce Secretary penned an an article in 6 HK papers defending the Government from charges of collusion over Cyberport. Let's leave the ethics of papers printing verbatim articles aside. This part of Tung Che-hwa's new found anti-collusion drive, which began with his policy address a couple of weeks back. The Tsang article is in the extended entry for those who want to read it. But the basic premise is simple. The Government deliberately rushed the job through because it knew the dot com boom wouldn't last and time was of the essence. To compensate PCCW for being lumbered with constructing a high-tech industrial park that would never attract enough tennants, the Government permitted PCCW to build a residential project at the same time. Funnily enough, the residential project, called Bel-Air on the Peak (in reality, in the Peak's shadow), is where the money has been made. David Webb took a critical look at the project back in October.

The reality is if we judge Cyberport by its original intention, it has been an unmitigated flop. Ex-post justifications for awarding the project to PCCW without tender don't wash. As was expected, the whole project is a residential property project in which the Government shares a small amount of the upside and in return granted a private, albeit well-connected*, company public land at bargain rates. Ah, I hear you say, but at least the lessons have been learnt and it won't happen again.

To which I give you the West Kowloon "Cultural District", or Cultureport.

* No pun intended.

Update: Firstly read Hemlock's Thursday entry (reproduced at the bottom of this post). The Standard's article that Hemlock refers to, headlined "We are no mouthpiece", is reproduced in full. It is a must read:

On Tuesday evening, The Standard was visited by what, in another democracy, would be considered an extraordinary request: Print, unedited and uncut, 1,800 words of the government's rationalisation for its 1998 decision to bypass the legislature and hand over 24 hectares of some of the most valuable land on Earth to the son of Hong Kong's biggest tycoon in a bid to belatedly drag the SAR into the cyber revolution.

By all accounts, except the government's, this experiment has not been a notable success for anybody but Richard Li and his company, now known as PCCW. In exchange for luring 33 companies, many of them merely from other parts of Hong Kong, to Telegraph Bay, Li was allowed to develop a major portion of Cyberport into an extremely lucrative housing scheme.

Seven years after that decision, with public irritation rising over a new scheme to hand over even more valuable land in West Kowloon to a single developer, the government has now chosen to try to defend its decision to give Cyberport to Richard Li.

The Secretary for Commerce, Industry and Technology, John Tsang, was to defend that decision on Wednesday. But before doing so, Tsang sought to prime the press and the public with the government's version of how Cyberport came about. As can be imagined, in Tsang's prose, it was a solid decision, exhaustively thought out and executed, that ``transformed disused land at Telegraph Bay into a lively modern community, enhancing the value of its neighborhood and enriching the quality of life in Hong Kong'' while turning the territory into a regional information technology powerhouse.

This is the second time in two months the government has sought to deliver its version of questionable property decisions designed to put enormously valuable land into the hands of Hong Kong's oligarchs. The first came in early December, when top-level government officials including Chief Secretary for Administration Donald Tsang and home affairs chief Patrick Ho delivered an equally extraordinary six-part series justifying the government's potential decision to grant the West Kowloon development to a single developer.

As with Tsang's article, the government laid down conditions for Hong Kong's newspapers. They were told to run that six-part series without abridgement or comment or not run a single word of it. The Standard refused to run those articles, just as it refused to run Tsang's.

The government apparently does not understand that the very foundation of a free press, which is so essential to democracy, makes it inimical to even make such a request.

In a democracy, a free press stands as an interpreter of the government's decisions, not as a conduit for their justifications. It is crucial the press stand aside from government and report what government does and how it does it.

Society's voters cannot be present at the creation of their government's laws and decisions. It is the press' responsibility to report what is actually happening in the halls of power to which the individual has no access. That is vital for the security of the community itself.

Printing wholesale government justifications of momentous decisions on land use in Hong Kong, without soliciting reasoned and fair analysis of at the same time, is an abdication of a newspaper's responsibility. Hong Kong's may be an imperfect democracy, but it is a democracy nonetheless, and its press remains free. That is why The Standard refused to print John Tsang's 1,800 words of justification for Cyberport, and it is why we will refuse to the next time as well.

The government has enormous resources to get its message across, ranging from its army of civil servants to public service announcements on government-owned RTHK. But the government is crossing a dangerous line when it tries to dictate to Hong Kong's media what and under what conditions it can print government statements - statements, we should remind John Tsang and his staff, that are written using our and our readers's tax dollars.

If we get copies of similar articles from other sources besides the government, we analyze their justifications, ask knowledgeable sources for their opinions, and print them as news for our readers to consider, on our news pages, as we do every other story.

We would be happy to consider any pieces that the government submits as op-ed pieces, subject to normal editing procedures. Or we will be happy to print them as advertisements, clearly labeled as such, and paid for by the government. But we will not print them in our news pages, lest our readers get the impression that these ideas are presented as fact.

We would also request that other newspapers, having given the matter thought, join us in boycotting the government's attempts to insert its rationalizations into their news pages while squelching public comment.

It's time to switch my paper subscription over to The Standard.

The full article by John Tsang:

If there is one project that has attracted continued attack from selected sectors of the community, it is Cyberport. Six years after the government launched the project, criticism and cynicism persist.

Critics allege the government bypassed the legislature to transfer benefits to PCCW. Some even cite Cyberport as the prime example of "collusion between government and business". Is there any truth to these outrageous allegations? I would like to set the record straight and let the people of Hong Kong make a judgment based on facts, not slogans.

The Cyberport project was conceived at the height of the dot.com boom when many of our regional neighbours had already built or were in the process of building their own infrastructure to foster and support the development of information technology (IT).

Against this background in mid-1998, the Pacific Century Group (PCG), now called PCCW, presented to government the Cyberport concept, suggesting the government should construct Cyberport as a public works project with PCG as one of the anchor tenants. Naturally, without any upfront commitment from leading IT companies that they would move into Cyberport, the government was unwilling to commit from public coffers the substantial capital cost necessary to develop the project. Also, it has always been the government's intention to have the private sector take a lead in the development of projects of this nature.

Later in 1998, PCG put forward a revised proposal that included an ancillary residential development to provide revenue to finance the project. PCG would also be responsible for constructing the Cyberport portion, which comprised offices and supporting facilities, and would hand them over to government upon completion. In other words, the government would be the sole owner of the Cyberport portion, in addition to sharing the surplus sales proceeds from the residential portion.

To ascertain the benefits of Cyberport to Hong Kong, the government engaged an international consultant - Arthur Andersen Business Consulting - to conduct a strategic assessment of the proposal. The consultant concluded that a development such as Cyberport would be an important element of Hong Kong's economic infrastructure, that it could assist IT companies by providing state-of-the-art facilities at shared cost, and that it could give Hong Kong an international marketing advantage in enhancing its image and competitiveness as an international information services centre. The government's decision to proceed with the Cyberport project was thus in line with the global trend of creating IT clusters and nurturing professional talent in strategic information infrastructure.

Further studies by the consultant confirmed that there was across-the-board support from the local IT sector for the Cyberport concept. By the end of 2001, more than 70 applications for office tenancy had been received, but the subsequent bursting of the dot.com bubble shattered many dreams. By the time the Cyberport portion was completed in mid-2004, more than one-third of the first batch of applicant companies had disappeared and others had dramatically altered their business plans.

Public criticism has all along focused on the way the government awarded PCCW the development rights at Cyberport. The government's decision to enter into partnership with PCCW to build Cyberport was made in view of the special nature, circumstances and requirements of the project, including:

(a) the need to complete Cyberport within the shortest possible timeframe to sustain Hong Kong's competitiveness in the region;

(b) the need for heavy upfront investment in Cyberport (estimated to be around $5 billion on top of the costs of providing essential infrastructure facilities); and

(c) the benefits of a public-private partnership (PPP) model that could enable the government to bring forward completion of Cyberport by a couple of years, reduce its capital contribution and transfer the public risk to the private sector partner.

At that time, other than the specific offer PCG had made to build Cyberport for the government, the real estate sector had also put forward a proposal that suggested the excision of the residential portion from the project and the open tendering of the land to provide government with the necessary funds to construct the Cyberport portion.

This was actually considered and rejected by the Legislative Council. It is interesting to note this proposal is strikingly similar to the one some developers have suggested for the handling of the West Kowloon cultural district.

The financial analyses of the two proposals were submitted by government to Legco's Planning, Land and Works (PLW) Panel in April 1999. Under the developers' proposal, it was assumed that the land for the residential portion could fetch around $8 billion if it were put out to tender. Deducting from it the $5 billion construction costs for the Cyberport portion, the government would get $3 billion upfront cash. As usual, the profits, if any, through sales of the residential units, would be reaped by the developers.

On the other hand, under the PPP model, in addition to full ownership of the Cyberport portion, the government would be able to share the surplus sales proceeds from the residential portion with PCCW, and it was estimated that government could get about $4.2 billion cash (compared with $3 billion under the other proposal) if the residential units were sold at a conservatively estimated average price of $4,000 per square foot. This was one of the scenarios set out in the panel paper. In retrospect, we note that the sale price went on a roller-coaster ride from then until the actual sale dates. But the fact remains that when we compared the two proposals, the PPP model would yield a higher return and, at the same time, result in lower risk for the government.

Based on these analyses, the government concluded the PPP model would ensure that the Cyberport portion could be completed in the shortest possible time and that government would receive a reasonable return while its risks in the project development would be minimised. This was clearly the preferred option and the logical public policy decision.

Following the announcement of the Cyberport project in the 1999-2000 Budget, we briefed the Information Technology and Broadcasting (ITB) Panel on March 8, 1999. Further consultations with the ITB Panel on the financial terms and analyses of the project and with the PLW Panel on the infrastructure works were held on April 29 and May 4, 1999, respectively.

After reaching consensus with PCCW on the project agreement for the Cyberport project in May 2000, the government briefed Legco on the main terms of the agreement and the granting of the development rights to PCCW in June 2000.

The Public Works Subcommittee and the Finance Committee were also consulted a number of times between May 1999 and December 2000 on the funding applications for a total of $1.1 billion to construct the essential infrastructure, such as roads and water supplies; and the funding applications were approved by the Finance Committee.

All in all, the government actively consulted relevant Legco committees and panels on more than 20 occasions from March 1999 to January 2005. The legislature was fully aware of the different aspects of the project as well as the responsibilities and benefits that the Cyberport project could bring to government and PCCW.

Legco members have, indeed, been vigilant in monitoring not only the progress made, but also the extent to which Cyberport has achieved its objectives. There is absolutely no truth to the allegation that Legco has been bypassed or hoodwinked.

John Tsang Chun-wah is Secretary for Commerce, Industry and Technology.

Hemlock's Thursday entry:

A little before 6.30 in the morning, and RTHK Radio 3 decides to rouse Hong Kong’s English-speaking community with a friendly public-service message. “The Chief Executive in his policy address explained how the Government is working for a vibrant economy,” says an irritatingly cheerful and enthusiastic male announcer. “And it is creating jobs! It is also working to bring about a caring community with social harmony.” I miss the next few sentences, owing to my futile but instinctive habit of hurling abuse at helpless electronic equipment conveying offensive broadcasts. “…bringing you people-based government!” gushes the sickening voice in conclusion. This comes just two days after officials asked newspapers to print a 1,800-word article by pitiful Technology and Industry Secretary John Tsang, laboriously claiming that Cyberport – Tung Chee-hwa’s gift of billions in public wealth to Li Ka-shing’s son – was not cronyism. The newspapers were required to print it unedited and without comment, orders with which the South China Morning Post droolingly complied, to the disgust of The Standard.

Delectable Administrative Officer Winky Ip squirms when I tackle her about all this over breakfast at Yuet Yuen Restaurant. What on earth, I beg her, is going on? She takes a deep breath. The situation is complex, she says, shaking pepper onto her congee. “Some people imagine this sort of thing is effective and persuasive – so it pleases them when we show them this stuff. ‘Great communication’, they think.” I nod wearily. Tofu-for-brains is the obvious example. Say something is true – and it becomes true. “Other people,” Winky continues somewhat awkwardly, “um… Well, they know this heavy-handed propaganda doesn’t work. In fact, has the opposite effect. Makes certain people look bad.” I nod some more. “And, um, that’s what they want,” she says. “So they’re happy too.” I see. So how much does a civil servant’s soul go for these days? I wonder. Winky shakes her head defensively and puts her teacup down next to the newspaper with its story marking the 60th anniversary of the liberation of Auschwitz. “We’re only implementing policy,” she asserts.



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[boomerang] Posted by Simon at 10:21
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January 26, 2005
Australia Day

Today is Australia Day, a celebration of a great nation. Australian of the Year Dr. Fiona Wood said in her mercifully short speech:

The realisation that we can all choose to make a difference to others remote and in need is growing as the Australian Spirit shines through. I am proud to be an Australian and will work towards a society dependent on the integrity of each and everyone of us - because every drop in the ocean does make a difference.
Or, to put it another way, try this.

Jingoism is often confused for patriotism. But Australia and Australians have so much to be proud of. So to show you care, I insist you do the honourable thing. The first Australian you meet today, you buy them a beer. It doesn't matter what time of day.

Update: It's also India Republic Day. Nitin insists you buy an Indian a beer too. As for Indian Australians, I guess it's their lucky day.

I've done my bit - I just cleared Starbucks of their supply of lamingtons.

Everything about the flag and the image are from here.

ozflag.gif



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[boomerang] Posted by Simon at 12:10
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Extra Extras

The approach of Chinese New Year sees humanity's biggest annual migration of people. China expects to transport 1.97 bilion people over the next month. Which leaves one puzzle. China's population is 1.3 billion. Where have the 670 million extras come from?

Some other news brief-lets:

* Chinese are amongst the top 5 countries for consuming fast food. A disappointing 3% are not eating fast food, thus leaving China adrift of the Filipinos, Taiwanese and Malays.
* The People's Daily has a touching story of Anna, a student in Beijing who doesn't like being called laowai. The patronising pieces finishes with She now plans to find a job in Beijing, to settle down in the city and to become a real Beijinger. If someone can find the manual on how to become a "real Beijinger", please let me know.
* China's plan to slow its economy to prevent overheating in 2004 hasn't quite work out. It's a nice problem for the Government to have, but it seems their efforts to control the economy to date haven't borne much fruit. But any change in the yuan is a long time off.
* Almost 2,000 Chinese bankers are being investigated by the regulator. When state-owned financial institutions are exposed to scrutiny, it's no surprise there are plenty of skeletons in the closet.
* China and India are in a "strategic dialogue" this week. This event isn't getting much attention, even though it has profound consequences for the region.

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[boomerang] Posted by Simon at 09:37
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January 25, 2005
Asia by Blog

Asia by Blog is a twice weekly feature, usually posted on Monday and Thursday, providing links to Asian blogs and their views on the news in this fascinating region. Previous editions can be found here.

The round-up has four key areas of focus:

China, Taiwan and Hong Kong

Korea and Japan

SE and Other Asia

Miscellany



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[boomerang] Posted by Simon at 14:14
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Reds ain't red

A small story to illustrate just how economically liberal China can be. China halved duty on share trades in order to lift the market. With Chinese share markets at 5 year lows the markets in Shanghai and Shenzhen have been the worst performing in the world. Problems such as poor disclosure, non-existant corporate governance, poor auditing, patchy data, fraud, an overhang of state shares don't help. Stock duty has been cut to 0.1% from 0.2%, lower than the UK's 0.5% levy. Tax competition: it sounds almost capitalist.

But if China is enjoying such a boom, why is its share market at 5 year lows?

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[boomerang] Posted by Simon at 10:33
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January 24, 2005
Lost in space

They couldn't offer much material support for the tsunami victims, but China's able to do what the Russians and Americans did fifty years ago: they're going back into space, again. In terms of wasting money to satiate a vague nationalistic urge, this has to be in the top 10.

Meanwhile on Planet Earth, China and India's rapprochement continues apace. These two rivals clearly see many areas of mutual interest and have plenty in common.

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[boomerang] Posted by Simon at 12:16
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Commie-ese

The trouble with working as a reporter in China is you have to be able to come up with sentences like this:

China will exert more efforts to crack down on pornography and illegal publications in 2005, aiming to create a favorable cultural environment for its reform and opening up and socialist modernization drive.
The hardest part is keeping a straight face while you do it. The good news is the crackdown is paying off:
China has seized 229 million copies of illegal publications, closed down 2,966 illegal publishing houses and more than 40,000 stalls and shops that sell illegal publications.
That's efficiency for you.

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[boomerang] Posted by Simon at 11:05
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January 21, 2005
Catching up

Unfortunately due to time constraints there has been no Asia by Blog edition this week but expect regular service to resume next week. In the meantime some links to keep you going:

ESWN is on a roll at the moment. While I may not agree with some of his politics he certainly digs up some of the most varied and interesting China/HK related stories going and plenty more to boot. Extensive coverage of the Chinese hostages in Iraq; how some enterprising Hong Kongers can make 10 times their money in 2 weeks by giving away trees; and two pieces from Roland's recent trip to Yunnan: the economics of travel agencies and the tourism cult of personality.

Andres continues his profile series with an interview with Pieter from Peaktalk.

If you need a hand, Phil has some people who can help (potentially NSFW).

After previously admiring their spurning of materialism, the parents of China's 1.3 billionth baby have given in to Mammon. Jeremy Joel also has a list of the 10 top terms in Chinese publishing in 2004.

If you want to know everything, and I mean everything, about China's Three Gorges project, read this site (via PD). Richard also points out that ex-wonder analyst Henry Blodget is admitting he's clueless...about China.

Did Kim Jong-il get a U.S. visa in 1997? And if the South Korean Army run low on rations, at least they have a recycling plan ready.

If you have a death wish and want to drive on Chinese roads, Sam has some tips.

Jodi ponders the question "Are Asians racist?"

Macam-Macam looks at Condi Rice's testimony and her naming Myanmar, amongst others, as an outpost of tyranny.

Greg visits a zoo in China and comes to this conclusion: the animals are on the outside.

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[boomerang] Posted by Simon at 10:57
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January 20, 2005
Non-clash of the titans

Arthur Chrenkoff points to two related reports on the same theme: China as America's emerging rival. Amongst other things, he quotes the Washington Times:

China is building up military forces and setting up bases along sea lanes from the Middle East to project its power overseas and protect its oil shipments, according to a previously undisclosed internal report prepared for Defense Secretary Donald H. Rumsfeld.
The "coming conflict with Beijing" will not be a fight over scarce oil resources. The only possible scenario where conflict could emerge would be over Taiwan. Even then China's entire strategy is based on taking over the island before the Americans could intervene. In other words, it is based on avoiding conflict with the superior American forces. Likewise China is deliberately avoiding getting involved in the Mid-East, despite its keen interest in the region. It doesn't want to antgonise its Mid-East oil suppliers, nor does it want to antgonise the Americans. The recent tsunami saw the PLA do almost nothing when America and Australia's military was offering assistance because they couldn't. America's military has an enormous technological advantage over China's and the Chinese know it. That's not a gap that will be closed, even in 50 years.

Brain Shavings also notes a couple of more angles stemming from all this, including the growing influence of Christianity and market economics in China. Both also mean China is more likely to emulate rather than fight America in the future.

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[boomerang] Posted by Simon at 13:29
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Come see it all

Hong Kong bills itself as "Asia's World City". To prove it, the Government went as far as to build the world's first publicly owned Disneyland. And the Government's love affair with property developers is well known. But now it's time to put up or shut up. Is Hong Kong really the cosmopolitan, global city it purports to be? Is it a place where business can be done, no matter what it takes?

A group have proposed to open HK's and Asia's first official nudist colony. The development would include houses fronting on to the nudist beach, thus combining HK's love of property and tourism with another bow in the quiver that Singapore will never have. But even if the project is approved, one question remains?

Will Tung Che-hwa open the development and what (if anything) will he wear?

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[boomerang] Posted by Simon at 09:24
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It's all so quiet

In some countries the right to remain silent is a constitutional guarantee, not to mention TV cliche. But in Hong Kong the right to remain silent is considered subversive, unruly and potentially unconstitutional. Personally anything that can get Leung "Long Hair" Kwok-hung to shut up for 60 seconds should become a weapon of choice.

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[boomerang] Posted by Simon at 08:29
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January 19, 2005
Stepping on the wrong toes

China has long maintained its distance from Iraq for many reasons, inlcuding its reliance on Middle Eastern oil and its reluctance to pro-actively engage in world geopolitics. So the kidnapping of eight Chinese nationals in Iraq, with the aim of China "clarifying its role in Iraq", achieves two things. It forces China to engage with Iraq and push it towards supporting the anti-insurgency efforts; and it proves once again the total stupidity of Iraqi hostage takers. Why in God's name would you engage and enrage the sleeping dragon? One that has effectively been neutral in the conflict? And just for the sake of "clarification"? Wouldn't it be easier just to ring the Chinese Foreign Ministry in Beijing? Or are lives now cheaper than telephone calls in Iraq? Our hostage taking morons will soon find out.

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[boomerang] Posted by Simon at 07:36
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January 18, 2005
Saints and demons

Zhao Ziyang's passing has lead to the typical what-if analysis, all under the premise that if only Zhao had remained at the top China would be a very different place. It may even be true. But his visit on May 19, 1989, when Zhao visited Tiananmen Square to ask the protesters to leave, turned a mildly reformist cadre into something (for the West, at least) approaching a diety. He was a part of the early market reforms under Deng Xiapong, but prior to Tiananmen inflation was soaring and many were unhappy with his stewardship of the economy. To some extent China's current prosperity is based on his work, but otherwise would China be much different if he had remained Secretary-General of the CCP? Not really. All he was doing when he turned up at the Square was warning the protesters of the looming crackdown - he didn't declare his fealty to their cause.

So before too much more gets read into his passing and what might have been, let's also remember what actually was. Clearly the CCP saw what he represented as a threat, hence his lengthy house arrest. But do you judge the man on one action or his life and deeads? The man himself was no saint and his firing from the CCP left China neither better nor worse off.

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[boomerang] Posted by Simon at 11:19
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Fruit loops

Muslim cleric and suspected terrorist Abu Bakar Ba'asyir's trial is generating a lot of interest. Fred Burks, an ex-US State Department employee, has been a witness...for the defence. Besides sticking up for terrorists Mr. Burk may have revealed the identity of a CIA agent during the trial. Follow both the links for more.

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[boomerang] Posted by Simon at 09:48
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A world away

China's corruption clampdown is now having an impact on neighbouring countries too. As if Macau doesn't have enough to worry about.

There's actually no need for casinos in China. If they want to gamble, they've got roads.

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[boomerang] Posted by Simon at 06:45
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January 17, 2005
Eternal Life

Xinhua is proud to announce former CCP leader Zhao Ziyang is in perfect health and will live forever. "After reports surfaced that Mr. Zhao was 'clinging to life' and 'in a coma', we had to do something. With our world-leading embalming and preservation technologies, it was simple to put the two together and declare Zhao Ziyang China's newest "Eternal Citizen"." Zhao is resting comfortably at his new Government villa in the Gobi desert.

Update: Umm, the plan didn't quite work out.

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[boomerang] Posted by Simon at 05:29
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Express lane

Just in case you weren't sure about China's intentions on its currency, another official re-iterated the impossibility of revaluing the renminbi this year. Along with predictions the US dollar will continue to weaken this year, it means these will only get more expensive. Which means they will likely sell even more.

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[boomerang] Posted by Simon at 05:10
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January 13, 2005
Asia by Blog

Asia by Blog is a twice weekly feature, usually posted on Monday and Thursday, providing links to Asian blogs and their views on the news in this fascinating region. Previous editions can be found here.

For tsunami relief information, please see the Tsunami Help blog.

This edition contains first hand reports on the tsunami recovery efforts, exams, tax and tipping in China, Mao's grandkids, train riding Smurfs, bulls in Japan, curbing malaria without DDT plus plenty more...

The official results are up for the 2004 Asia Blog Awards.

The round-up has four five key areas of focus:

Asian Earthquake and Tsunami

China, Taiwan and Hong Kong

Korea and Japan

SE and Other Asia

Miscellany



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[boomerang] Posted by Simon at 16:12
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The other reds

Somewhat lost after Tung Che-hwa's speech was another far more interesting piece of testimony. It was Sir David Aker-Jones' turn to testify to Legco over the Discovery Bay debacle (you can read some background here). It was quite some testimony. The zoning changes that lead to massive windfall gains to the property developers without them having to pay any land premium to the Government was due to a fear of Disco Bay turning into a Russian listening post. This fear cost precisely HK$160 million in foregone revenue. We can be generous and say there may have been security concerns. One can't help but feel there were better ways to deal with the problem than letting developers change the nature of the project. Except in Sir David's eyes the project didn't change:

Akers-Jones contended that, even today, there has been no fundamental change in the nature of Discovery Bay. "It follows principally a resort development,'' he said, adding that even though resorts such as Miami and Cannes also contain substantial residential components, they can still be considered as resorts.

As to the decision in 1985 to allow the developer to build residential instead of hotel and commercial buildings, Akers-Jones said: "A discussion between reasonable men would not require a developer to build hotels if no one was going to stay at the hotels.'' Similarly, decisions to allow the developer to drop the construction of a promised public golf course in 1982, and a cable car system in 1985, were driven by the need for flexibility and pragmatism.

Discovery Bay is many things, but it is not a resort. It never has been. Clinging to this notion would be quaint if it hadn't cost HK taxpayers so much money. At least we now know the key to making money in HK property. Plan to create a resort, borrow the money from the Russians, actually build a residential community and stir. Easy.

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[boomerang] Posted by Simon at 13:04
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Not much ado about nothing

Only a couple of weeks ago, President Hu told Tung Che-hwa to shape up or ship out. Hu said and Tung learnt:

[Hu]:"Hong Kong has to draw conclusions from experience and find out what's been insufficient."

[Tung at press conference]: "President Hu reminds us to look at our deficiencies and continue to raise our governance."

Say what you like about HK's Chief Executive, he knows how to listen to Beijing. In yesterday's policy address Tung accepted his Government had failed to listen to the public and said
"we were indecisive when dealing with emergencies. These shortcomings and inadquacies have underminded the credibility of our policy-making capability and our ability to govern...In formulating policies, we fell short of thinking what people think and addressing people’s pressing needs."
Stunning. It only took 7 years and a ticking off by the President of China to open Tung's eyes to the concept of public opinion. As an aside, it's interesting the Tung, leader of the world's free-est economy, is publicly engaging in that most Communist of sessions: a self-criticism. But Tung had even more surprises in store. Much to the vexation of his public service and HK's public, he said:
"We are resolutely against collusion between business and the government and will strictly enforce our monitoring systems to eliminate any transfer of benefits."
.The cartels' Legco representative, James Tien, was not impressed:
"A proactive denial will be seen by the pan-democrats as Tung's self-confession,'' Tien said. "[Policy unit head and speech writer] Lau should have written this thorny issue positively, saying that the government, in facilitating the business environment, would not favor anyone. It is stupid to repeat slogans chanted by protestors and give the democrats bullets to fire at Tung.''
If Tien's upset you know it's on the right track.

The reaction to the speech has been mixed. Generally everyone on planet Earth has been unimpressed with the exception of the above-mentioned Collusion-gate. The Chinese press gave it a ringing endorsement, although rumours the articles were pre-written or written in their sleep were denied.

Will anything come of it? Could the final few years of Tung's Chief Executive-ship turn the tables on the collusion between Government and business? Could he turn himself from unresponsive lame-duck into champion of HK's poor? Will the aerodynamics of porcine products defy the laws of nature?

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[boomerang] Posted by Simon at 11:52
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More on vouchers and a new HK Blog

Let's give a warm welcome to 100 sq foot each (Update: while we're at it, let's also say hi to Amy Gu). Reidon adds his thoughts on a voucher system for HK school kids. Chris mentioned that vouchers are not an easy solution. True, but that is not a reason to shy away from the idea. Students at local public schools already effectively receive vouchers, just the Government doesn't physically pass the money to the parents - instead it provides the schooling. Via the subvention the Government somewhat subsidises the ESF schools for those HK taxpayers who have children that do not speak Cantonese fluently. The other international schools, despite still being children of HK taxpayers, receive nothing. It is inequitable. I'm not saying the ESF subvention should be cut. I am saying the Government either needs to restate subsidies to all international schools or provide vouchers to compensate those taxpaying parents who do not have children at local public schools, irrespective if they are locals or expats.

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[boomerang] Posted by Simon at 09:11
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January 12, 2005
The missing piece

I wrote last week about China's limited official response to the earthquake/tsunami recovery efforts. This article summarises the same points and puts the response in the context of China's geopolitical aspirations.

And before debate starts again, remember this important point.

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[boomerang] Posted by Simon at 17:27
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China's new year economy

Three pieces of related economic news from China:

1. China's foreign exchange reserves rose by 51.3% in 2004. China's reserves now total US$610 billion, excluding the US$45 billion injected into Bank of China and CCB.
2. China's exports rose 33% in December, with a trade surplus of US$11.1 billion for the month. An increased trade surplus is likely if China's domestic economy continues to slow into 2005. Which means China's demand for US dollars will only increase going forward. Shanghai has overtaken Rotterdam as the world's biggest port in cargo throughput.
3. China's tax revenue rose by 25.7% in 2004 to 2.572 trillion yuan (US$310 billion). Tax revenue is approximately 19% of GDP. Interesting that a so-called Communist country should have such a low percentage.

What does it all mean? For the year China's trade surplus was only US$32 billion out of total exports of US$594 billion. While the surplus with the US is much larger, China is actually in deficit with many countries, especially those that provide raw materials and energy. China is, on a massive scale, becoming America's workshop. In theory, that US$32 billion surplus would be exactly the amount China's reserves increase by for the year. It represents the extra money countries have paid for China's exports as opposed to the money China has paid the world for its imports. Instead reserves rose by more than US$200 billion. The difference is from those speculating on an appreciation on the yuan, the so-called "hot money". It explains the Chinese dilemma in allowing an appreciation in the yuan: it could lead to a massive and rapid outflow of funds with potentially devastating effects on the domestic economy. Success comes at a price.

And all that money still doesn't buy you happiness.

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[boomerang] Posted by Simon at 09:45
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Vouchers in Hong Kong

The English Schools Foundation is continuing to pull out all stops to protect its Government subsidy, a topic I've covered previously. Yesterday in a Legco committee meeting Education Secretary Arthur Li continued the pressure, saying he was open-minded on continuing the subvention (subsidy). He also said the ESF's preferential treatment over other international schools and the historical reasons behind the subsidy should be revisited.

This lead to a full-court press by the ESF. On radio and in the press various members of the Foundation have responded with the usual litany of reasons to maintain the ESF's subsidy. With one exception. From the SCMP:

Sarah Rigby, chairwoman of the foundation's joint council of parent teacher associations, argued that parents of English-speaking children had a right to subsidised education, but conceded that it was unfair that parents with children in other international schools did not receive such support. "I would ask you to look at a voucher system as a way forward," she said.
And there you have it. The truth has been uttered. A voucher system would re-establish equity for all HK residents'/taxpayers' children. The ESF is a Government subsidised competitor in the international schools sector in HK. The justifications for the continuation of the subsidy apply to all international schools that compete in this sector.

HK's Government is often lauded for presiding over the free-est economy in the world. Subsidising one group to the exclusion of competitors in the same sector is not is the hallmark of a free economy. Are Arthur Li and the SAR Government up to the challenge of introducing a voucher system? Here's hoping.

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[boomerang] Posted by Simon at 09:22
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January 11, 2005
Asian Blogging Convention 2005

An idea that's been brewing for a while...inspired by the success of the Global Voices Online Conference at Harvard last year, I am starting to wonder if there is enough critical mass for some kind of Asia Blogging Convention? Besides being an excuse to meet, learn and discuss topics of mutual interest it would be a great way to further solidify the growing links between blogs across Asia.

At this stage I'm just looking at expressions of interest and thoughts as to how the conference would work.

Some of my thoughts are below.

Update: Fons adds his thoughts.

Update 2: I'll fold the idea into this one.

1. It would need an organising committee. Depending where the conference would be held, there would need to be a few people from the host city and then at least one rep to act as country co-ordinator.

2. Around October 2005 would be a good target for the timing. Long enough to get some speakers, get sponsors and publicity, and organise something decent.

3. The idea would be to run it as breakeven...although should it be run for profit we can discuss what to do with any leftover money that should result. However the main aim would be to make sure no-one is left "holding the bag" with a loss.

4. Ideally we could tie this in with the Global Voices people and leverage of their experience in organising this.

5. If there is enough interest I may approach some sponsors, particularly some universities that could tie it in with their programs. We could also approach Governments for some funding...

I'll add more as I think through it all.

Update

6. While calling it an Asian blogging conference, it would not be exclusive to Asia bloggers. Attendees from Australasia, America, Europe and anywhere else would be most welcome.

7. I've mentioned a few potential topics in the comments. Some others spring to mind, such as language and blogging, blogs as a political and social force, blogging outside the USA. As I said in the comment, the committee could work on topics using a combination of lectures, workshops and panels.



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[boomerang] Posted by Simon at 14:23
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The long and the short of it

Is there any connection between this and this? Sure Latham lost the election, but is Kim Jong-il the right person to take advice for next time? Given Kim's winning record, perhaps.

And what is with Australian leaders and Communists?

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[boomerang] Posted by Simon at 14:02
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Fucoffee

I'm no fan of coffee, but I could be persuaded.

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[boomerang] Posted by Simon at 08:46
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Accurate Acupuncture

Acupuncture is a 2,000 year old Chinese medical practice involving 361 precise points on the body. Each exact spot "controls" some body function or organ and can be used to heal. Now the WHO is getting involved. Why? Because over time some of the pressure points have diverged. So now the three countries have agreed "standardise" acupuncture points with a total of 92 points to be standardised in two stages this year. This is part of a WHO project to formally determine all 361 points by 2006 in order to help spread Oriental medicine.

It doesn't bode well that 92 of the points differed enough that they need standardising. Maybe there are subtle differences in the nature of each country's citizens, requiring slight variations in pressure points. Maybe the pressure point areas are large enough to allow for variation. Or just maybe acupuncture isn't all its cracked up to be.

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[boomerang] Posted by Simon at 08:24
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January 10, 2005
The exception

The parents of China's 1.3 billionth baby are understandly being deluged with offers from companies looking to use their boy in advertising and promotional campaigns. But the family are saying no. By turning their back on all of this commercialism they are actually using their baby as a perfect antidote to the materialism and commercialism that is washing over China (and the world). I wonder if the boy will be thanking his parents for all the wealth and fame that could have been his.

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[boomerang] Posted by Simon at 13:50
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Lost and found

The demise of Conrad and his Gweilo Diaries has inevitably lead to conspiracy theories and idle speculation. Thankfully Hemlock (Sunday entry) has discovered the truth.

For a real conspiracy theory, a commenter at Shaky's noticed the new owner of the Gweilo Diaries domain, Al Koehler, is engaging in nefarious tactics.

Or maybe he's just gone and turned it all into a book: The Wanchai Chronicles (via Skaky).

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[boomerang] Posted by Simon at 13:30
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Asia by Blog

Asia by Blog is a twice weekly feature, usually posted on Monday and Thursday, providing links to Asian blogs and their views on the news in this fascinating region. Previous editions can be found here.

For tsunami relief information, please see the Tsunami Help blog.

This edition contains earthquake and tsunami links, the new Communists, leaked war plans, unwanted refugees, casinos in strange places, the end of the Boom Boom Room, skimpy models plus plenty more...

The official results are up for the 2004 Asia Blog Awards.

The round-up has four five key areas of focus:

Asian Earthquake and Tsunami

Many of the links in this section are to blogs, not posts. Just scroll through each blog as they all have plenty on the Tsunami and the relief efforts.

  • Agam's Gecko has plenty of on-the-ground reports on and about the disaster and especially Aceh.
  • The Diplomad, by some members of the US Foreign Service, has a critical look at the efforts of the UN compared to others in providing relief.
  • Prince Roy, a US diplomat in India, has been dealing first-hand with the aftermath and relief efforts.
  • Ran makes it into the newspaper (full article here) - not for his photos, but for his harrowing first-hand experience in the tsunami.
  • From Indonesia Jakartass has plenty of links and posts and points to the Indonesia Help blog.
  • Fred in Sri Lanka has plenty of photos and reports.
  • Macam-macam has several posts focussing especially on Aceh, including background and history, as well as a look at the Australian aid package.
  • Friskodude has a plethora of photos from various areas.
  • India Uncut has plenty of thoughtful articles on the tsunami and its aftermath.
  • Jeff Ooi, amongst other posts, has extensive coverage.

China, Taiwan and Hong Kong

Korea and Japan

SE and Other Asia

Miscellany



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[boomerang] Posted by Simon at 11:17
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January 09, 2005
Early and often

I didn't even realise I'd been nominated, but yours truly is in some fine company in the 2005 Australian Blog Awards. In the best Overseas Australian Blog category I've got tough competition, including fellow HK-er Spirit Fingers and Chinese blog Supernaut. In fact geographically greater China dominates this category.

Follow this link for details on voting.

Update: Just before Award fatigue sets in, the 2005 Bloggies are in the nomination stage. This one has actual prizes and it includes an Asian category.

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[boomerang] Posted by Simon at 11:58
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January 08, 2005
Asia Blog Awards 2004: Full Results

The official results are in. Please click on the links below to see the results in each category.

Thank you to everyone who participated. While the awards themselves are competitive, the main point is to create greater exposure for blogs right across Asia. A total of 27,200 votes were cast and there has been interest from mainstream media as well as around the world. The diversity and quality of Asian blogs is astounding and something that will only grow in the future.

In each category I have listed the three top vote-winners and then the other finalists. For many of the country categories I have added links to blog directories covering that country. I have left space for other blogs that also fit each category to be added in time. Alternatively you can look at the Best Blogs in Asia directory.

Thanks again and enjoy the many Asian blogs on display.

Update: Thanks to IZ, new special logos are available at the bottom of this post.

Update 2: I am gathering expressions of interest in an Asian Blogging Convention in 2005.

Best HK Blog
Best Mainland China Blog
Best Korea Blog
Best Taiwan Blog
Best Singapore Blog
Best Malaysia Blog
Best Thai Blog
Best Indonesia Blog
Best Japan Blog
Best Philippines Blog
Best India Blog
Best Bangladesh/Sri Lanka Blog
Best Pakistan Blog
Best Vietnam Blog
Best Central Asian Blog

Best Newcomer 2004
Best Designed Blog

Funniest Blog
Best Non-Asian (Foreign) Blog
Best Political Blog
Best Essayist
Best Journal/Diary
Best Photoblog

Images

asiablogawards-big.gif

asiablogawards-2ndrunnerup.gif

asiablogawards-nominee.gif

asiablogawards-runnerup.gif

asiablogawards-winner.gif



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[boomerang] Posted by Simon at 13:09
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January 07, 2005
Stay tuned

Asia Blog Awards 2004 results will be posted this weekend.

There should be a new Asia by Blog by Monday.

On an admin note, I've had to shut off comments on all posts that are older than 30 days old. Most comments on those posts were from members of the pharmacetical or adult entertainment industries. This being a digital age I cannot use these comments to wipe my bottom after certain movements. Their value thus another victim of digitisation, I have decided to experiment with not having to deal with them at all.

And if you're wondering who those three handsome men wondering around Wanchai Computer Centre tomorrow afternoon, that'd be me, him and him. Autographs to those that recognise us.

Update: Two more admin things. I've corrected the link for my Amazon wishlist (gifts in all price ranges!). Secondly I've changed my excerpts to only capture the first 100 words of each post. While I recognise RSS readers are becoming more popular, at the same time I want people to come to my site rather than all of my site just going to them. If you want to read the post you should visit the site - that way I can track it and if I so choose monetise it in the form of ads. Not that we've reached that point, yet. 100 words should be enough to give a taste of most posts. If the RSS crowd are unhappy please feel free to tell me why I should revert to displaying full posts. But I need better reasons than "that's how I read blogs". The only reward I get for doing this is readership and RSS readers don't show up as readers. Consider these excerpts teasers to draw you back to the site, rather than letting you read the posts for "free". It's a very small price to pay: precisely one mouse click. [see the comments]

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[boomerang] Posted by Simon at 15:00
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China's gender problem

Yesterday China had its 1.3 billionth baby, unsurprisingly a boy. China has 120 boys for every 100 girlsand in some provinces 130:100 - the average worldwide is 105 boys to 100 girls. Indeed the PR gurus who managed yesterday's media event were disappointed the baby was a boy, according to the SCMP. They were hoping a girl would act as another reminder of the growing gender imbalance. China has 40 million more men than women as a result of the interaction of the one child policy and cultural preferences. The Government has tightened bans against gender detection and sex-selective abortions, although policing such bans are almost impossible. One wonders why it has taken so long.

However the future isn't all gloomy. What Government policy and culture distorts can be corrected by an extremely efficient mechanism - the market. Without wanting to be too crude, the "price" of women will continue to rise in the years ahead. More men will compete for the favour of fewer women. Women can become more selective about their mates. In time the value of having a baby girl will start to outweigh the perceived negatives. But this will take decades. In the meantime you literally have an army of Chinese men who are unlikely to find wives. That's a social problem beyond even the social engineering efforts of the CCP.

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[boomerang] Posted by Simon at 13:45
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Turnaround

It is now official: the HK property market has fully recovered from the SARS crisis. The flat across the hall from mine, which has been empty since we moved in at the start of 2004, is currently being renovated and is expecting tenants at the start of February.

Good news for Hong Kong but a disaster for us. We've taken to using the common area as a handy storage space for strollers and pool toys. Still, I look forward to an amusing conversation regarding rents when I meet the new tenants.

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[boomerang] Posted by Simon at 11:19
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January 06, 2005
Paper shuffling

Could this article be the most bad taste and flimsiest article yet on the tsunami? Who the hell bases a newspaper article on the semi-articulate gibberings of an expat in Wanchai? Except for AFP, that is. I'll grant Mark Tyler, if he exists, that he probably either (a) didn't realise he was speaking to a reporter and/or (b) was joking. The non-accredited AFP reporter, on the other hand, has no excuse.

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[boomerang] Posted by Simon at 18:30
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Fundraiser

For all those in Hong Kong, this Monday night, January 10th, Delaneys in Wanchai is showing the Asia v. Rest of the World charity cricket match. All bar takings on the night are being donated by Delaneys to the tsunami relief effort.

I will be there and I strongly encourage everyone to attend. After all, how many times in your life can you drink and say it's for a good cause?

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[boomerang] Posted by Simon at 15:56
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Chinese zeitgeist

As the internet becomes more pervasive it can act as a mirror to the society that uses it. John has compiled a sample of the top 10 searches on China's most popular search engine, Baidu. The Top 10 How Tos start with how to kiss and include how to get pregnant. The Whys include Why join the Party?, the puzzling Why can't I get online (how are they searching, by telepathy?) and disturbingly Why live?.

These lists must keep sociologists busy for months.

Update: The People's Daily has also listed the top 10 domestic and international stories in Chinese media. The top domestic story covered a Government report on farmer's incomes and rights; Hu Jintao's assumption of the top job only ranked 8th.

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[boomerang] Posted by Simon at 13:47
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China population hits 1.3 billion

At 12:02pm last night, Lan Hui gave birth to a baby boy at the Beijing Hospital of Gynaecology and Obstectrics. Proud father Zhang Tong didn't have to worry about the normal juggling of cameras and videos to capture the moment, because this little boy is China's 1.3 billionth person. At a intensely emotion and stressful time, the lucky couple had most of China's media crammed into the delivery room watching, videoing and photographing the event.

Do these people get special treatment? Or is it a fleeting flame - one minute you're the star and the next you're just another little emperor? Has anyone heard from the 1.2 billionth baby lately?

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[boomerang] Posted by Simon at 12:13
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These things are not the same

My thoughts on the Chinese Government's inadequate response to the tsunami crisis has generated some debate. One commenter said my comments are an insult to the Chinese people. That's a common comeback when anyone makes a comment on China. The problem is it confuses two very different entities: the Chinese people and the Chinese Government. The Chinese people have been very generous in donating to tsunami relief. The Chinese Government, while starting to catch up, has been slow in offering aid and assistance and have squandered a chance to lead the way in responding to the disaster and assert its role as a regional power.

This is an important point and I'm going to repeat it. The Chinese people are not the same thing as the Chinese Government. Attacking the Government is not a sleight on the Chinese people. While the CCP says it is the sole representative of all Chinese, the truth is that it is not. It's a crucial distinction.

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[boomerang] Posted by Simon at 11:04
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January 05, 2005
Smoke on the water

Today's SCMP headline: HK leads the world in tsunami relief. As Shaky notes, it isn't a competition. The headline is also misleading. The chart below also shows the contributions per capita by Governments as well as by private donors. HK's people lead the way; the Government is, by contrast, stingy beyond belief. Compared to the other rich countries listed, HK's Government is at least half of the others. Hong Kong's fiscal reserves were HK$311 billion (US$40 billion) in March 2003. To date the Government has donated HK$30 million. Pathetic.

Hong Kong also kept top spot in the Heritage Foundation's economic freedom index. Quick trivia check: which Government bought huge quantities of shares on its own stock exchange in 1998?

donations.jpg



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[boomerang] Posted by Simon at 15:43
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Shooting below its weight

I was going to write today about China's lamentable efforts in the wake of the tsunami disaster but Michael Moran of MSNBC beat me to it. His article, China fails the tsunami test, is worth a read. China's pretentions to being a world or even regional power are found wanting at times like this. Some excerpts:

At a time when tens of thousands in its neighborhood were at risk of starvation, dehydration and disease, China’s focus was right where it has been for centuries: China...With the exception of the American 7th Fleet, based in Japan, China maintains the largest amphibious force in the region, a force with precisely the kind of ships desperately needed in parts of the region rendered inaccessible by the battering waves...So why are the Chinese still at their moorings?

The answer is complicated by China’s historic policy of “non-interfere” in the internal affairs of its neighbors, and in some places — India, in particular — by historic suspicions and resentments built up over centuries of rivalry. But China's low profile also speaks volumes about the gap between its rhetoric, which stresses it’s coming of age as a great power in Asia, and the reality of China’s inward-oriented foreign policy...More seriously for China, it casts light at an inconvenient time on a somewhat cynical game the Chinese government has been playing for years: soaking up billions in aid and interest free development loans from the World Bank, Asian Development Bank and other NGOs, even as it has grown into the seventh largest economy in the world...

Within hours of the disaster, India – China’s near equal in terms of population and economic growth – told the world it did not need disaster relief for the time being, suggesting such money be diverted to poorer nations. What’s more, India dispatched navy ships and cargo aircraft to its devastated cousins in Sri Lanka, immediately staking a claim for itself in the “core” group of donor nations...

But coaxing China out of the somewhat paranoid shell through which it has viewed the world for centuries is in the longer term interest of the United States and Asia. Had China, on Dec. 27, announced that its naval transports planned joint relief operations with Japan or the U.S. fleet instead of war games with Russia, an important line would have been crossed. Unfortunately, for China, Asia and the world, Beijing just can’t see the logic – yet.

Exactly right. Here was an opportunity for China to show the world it is ready to take its seat at the top table of nations, to be a true world power. But instead of accepting the responsabilities that come with it, China would rather engage the world on its own terms. But the world doesn't work like that - you can't cherry-pick being a world power, such as attending G8 meetings, without accepting the burdens that go with it. But further than that, China missed an opportunity to do the right thing because it is the right thing to do. Until China can learn the meaning of altruism, it will never be the power it aspires to being.

Update: Glenn Reynolds points to an IHT article on the same lines.

For a contrast, Joe has a summary of the current US effort. These efforts along with the NGOs such as the Red Cross are stunning in their efficiency. By contrast, the UN's efforts to date seem almost a parody. Why is it whenever the UN gets a chance to show the good it can to, it squanders it?

Update 2: It appears China has sent some aid to the affected countries. It seems to have come out of the Foreign Affairs Department with limited involvement of the PLA so far. China could and should be doing more, but it's a start.

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[boomerang] Posted by Simon at 10:08
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Chinese dumping

China's joining of the World Trade Organisation (WTO) was seen as a way to open its economy to further international trade and to force China to play within the rules. One common measure are "anti-dumping" actions, where businesses in (say) America can allege a country (say) China is dumping goods at well below "fair" cost, thus causing damage to those local businesses that cannot compete. Such measures have a place but are often abused for protectionist reasons. Typically anti-dumping actions are brought against very low cost producers who can sell at a far cheaper rate than local competitors can match. If the case if found proved special tariffs are applied to level out the playing field. More often than not the low cost producer is a country such as China.

But not always. China is imposing antidumping tariffs on optical fiber from the US, Japan, S. Korea. What a splendid turnaround on typical dumping actions. Last week a US judge also lifted import restrictions on Chinese textiles. Textiles were made quota-free around the world on January 1st and many expect China to rapidly claim a far larger market share in the absence of quotas, although it hasn't happened yet. But it will. If you're in retailing you want to find the cheapest supplier, not the one your Government forces you to buy from due to restrictions or quotas.

It's called free trade. It works.

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[boomerang] Posted by Simon at 09:26
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January 04, 2005
Asia Blog Awards - Voting has Closed

Voting has closed in the Asian Blog Awards. Results should be posted by January 8th.

I have removed the link to the poll itself. If you retained the link you will find you can still vote. However I have printed the official master list of results. All votes after this time will be disregarded. Once results are posted I will close the poll link down completely.

Thanks again to all who participated. Stay tuned for results...

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[boomerang] Posted by Simon at 21:23
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Tsunami surfing

Blogs are proving a great tool in covering the tsunami story. Aggregating news, punditry, thoughts on relief efforts, first hand accounts, all far more interesting than most major media reporting.

Tim Blair says the confirmed death toll is almost 145,000 and climbing. The Diplomad has a first-hand look at the comparitive relief efforts of the UN and the Aussie/US-lead ad hoc team, with the WFP team making sure the kitchen is working 24 hours a day...for them. NZ Bear follows the trade not aid argument with a practical suggestion: buy something from the affected countries. An even better idea: start planning your next holiday in Phuket or Galle. What these places need is the tourism that was often their lifeblood. India Uncut is full of interesting dispatches, for example this one looking at levels of public aid. Ann Althouse has looked at the logistics of the aid effort. Arthur Chrenkoff has a roundup with plenty of good links too.

I've already mentioned the Tsunami Help blog. The Command Post have also a comprehensive directory of ways to assist and plenty of news at the Global Recon section.

There is great potential for a bigger combined blogosphere effort to help in the longer term. Something like Spirit of America or Operation Give for the worse hit countries. This is something bloggers, particularly Asia-based ones, to get pro-active in helping. Anyone prepared to join me?

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[boomerang] Posted by Simon at 19:19
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Silver linings in the tsunami cloud

Disasters like the Indian Ocean earthquake and tsunami happen quickly but the effects last lifetimes. The horror of the events, a respect for the power of nature and a tinge of morbid curiosity pervade the coverage and reaction. These events serve to remind us all that we are still, despite our ocassional delusions otherwise, at the whim of our planet and not the other way around.

Certain truths also need to be recognised. The setting up of an early warning system is to be commended. But until now most of the tsunami risk was considered concertrated in the Pacific rather than Indian Ocean, where an early warning system is in place. If warnings were given it is also difficult to see how effective they would have been. Certainly lives would have been saved. But in many areas communications are poor; there is no high land to evacuate to; and there are too many people and not enough roads and ways to transport them out. More importantly these Acts of God are unpredictable. That is the horror of these disasters. Humans strive for predictability in our constant attempt to understand and control nature. It doesn't always work out that way. The widespread nature of the destruction is certainly playing a part in the display of charity by Government, business and people. While earthquakes and tsunamis are known events, they are outside the frame of reference for most. Thankfully many of us have never had to confront these natural disasters. When they happen part of the horror is that something so quick can cause so much damage and loss. First hand accounts can give us a taste of what is otherwise unimagineable.

Each of the impacted countries are having different responses to both the disaster and the flood of help. Burma has absurdly claimed less than one hundred deaths and refused all help. Indonesia and Sri Lanka are open in seeking assistance. Just as important as this immediate aid is the longer-term assistance offered, especially once the tragedy fades from the front and even back pages of the papers.

I always wonder about "First World" reaction to natural disasters when they strike predominately developing or poor nations. Often the disaster lasts a news cycle or two before fading, leaving behind the wreckage but not the attention. Much attention in both Australia and Hong Kong has been focussed on the resort of Phuket in Thailand because that is a common holiday spot. It is natural that countries will look at places where their nationals have been taken. At the time of writing 14 Australians and 11 Hong Kongers have been confirmed dead out of a total death toll of 100,000+, with more missing. This time is different. The huge amounts of money and aid flowing in prove that. It might be "over there" but it is being felt everywhere.

What good can be found in all this chaos? The outpouring of charity is clearly one. Both Aceh in Indonesia and in Sri Lanka the affected areas were also areas troubled by civil war. If this disaster can have a similar thawing of relations between two sides as the Greek/Turkish earthquakes did a few years ago, then at least these many deaths may not have been entirely in vain. The main agencies involved in providing help, such as UNICEF and the Red Cross, are being stretched by the geographical and logistical challenges. That such agencies exist and are able to rapidly respond is a blessing for all of humanity. Once again we've all been reminded there are more powerful forces on this planet than us. But these same forces touch and unite the basic humanity in us all.

An excellent site to start for offering assistance is Tsunami Help.

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[boomerang] Posted by Simon at 16:14
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Omnibus

Running these Asian Blog Awards has been an interesting experience, to say the least. This post combines several announcements:

1. Voting concludes tonight HK time in the Asia Blog Awards. No-one was forewarned of the extension in voting and I don't believe it favours anyone.
2. I am extremely dissapointed to have learned of nominees being harassed. Inevitably awards bring out competitive instincts. But the idea of these awards is to promote Asian blogs. The blog affected requested to be removed from the awards. However I was out of email contact and unable to do that. I will leave the nomination up given the voting is about to shut but I am very sorry this episode sullied an otherwise trouble-free awards. Update: Mia has also been abused. WTF, people?
3. I hope to reply to individual emails from those interested in the awards today.
4. Results should be up by the end of the week. Once they are up I'll start listing all nominees and other blog for each category - please wait until the results are up before making suggestions.
5. I've received many emails asking why Gongkapas wasn't amongst the finalists in the Malaysia section. The simple answer is I made a mistake. There were some severe time constraints in getting these awards up and running and I apologise for overlooking what is obviously a popular site.
6. It seems Gweilo Diaries has shuffled off this mortal coil. At the time of nominations its status was uncertain so I included it. Here's hoping Conrad returns soon.

Asian blogging is coming under renewed focus due to the tsunami disaster. There is some great work being done and I hope to talk more about it soon. Yan has suggested some kind of combined Asian blogger fundraising effort; perhaps through a gathering, or some other way. It's a great idea. Once I get the awards and results finalised this will be my next project.

Finally the Asia by Blog series will restart shortly.

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[boomerang] Posted by Simon at 12:15
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January 01, 2005
Asia Blog Awards - Extended voting deadline

Due to some technical issues the cut-off for voting in the Asia Blog Awards has been extended until January 4th.

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[boomerang] Posted by Simon at 14:14
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